MCMINNVILLE, Tenn., April 30, 2012 (GLOBE NEWSWIRE) -- Security Bancorp, Inc. (OTCBB:SCYT) today announced consolidated earnings for the first quarter of its fiscal year ended December 31, 2012. The Company is the holding company for Security Federal Savings Bank of McMinnville, Tennessee ("Bank").
Net income for the three months ended March 31, 2012 was $277,000, or $0.72 per share, compared to $215,000, or $0.56 per share, for the same quarter last year.
For the three months ended March 31, 2012, net interest income increased 3.3% to $1.2 million from $1.1 million for the comparable period in 2011. The increase in net interest income was primarily due to the reduction in interest expense on customer deposits. Net interest income after provision for loan losses for the three months ended March 31, 2012 remained relatively unchanged at $1.1 million for the same period during the prior year.
Non-interest income for the three months ended March 31, 2012 was $585,000 compared to $505,000 for the same quarter of 2011, an increase of 15.9%. This increase was attributable to an increase in the gains on sale of loans due to increased demand in residential lending.
Non-interest expense for the three months ended March 31, 2012 decreased $11,000 but remained relatively unchanged at $1.2 million compared to the same quarter of 2011.
Consolidated assets of the Company increased 2.6% to $162.0 million at March 31, 2012 from $157.9 million at December 31, 2011. Loans receivable, net, decreased 0.8% from $117.5 million at December 31, 2011 to $116.6 million at March 31, 2012. The increase in consolidated assets was primarily attributable to an increase in customer deposits.
The provision for loan losses was $85,000 for the three months ended March 31, 2012, an increase of 41.7% from $60,000 for the same quarter last year. The increase is attributable to an increase in the amount of the monthly provision as a result of management's concerns regarding the state of the local economy.
Non-performing assets increased $483,000 from $1.9 million at December 31, 2011 to $2.4 million at March 31, 2012. The increase is attributable to an increase in non-accrual loans. Based on its analysis of delinquent loans, non-performing loans and classified loans, management believes that the Company's allowance for loan losses of $1.6 million at March 31, 2012 was adequate to absorb known and inherent risks in the loan portfolio at that date. At March 31, 2012 the allowance for loan losses to non-performing assets was 65.20% compared to 78.95% at December 31, 2011.
Investment and mortgage-backed securities available-for-sale increased 3.8% from $25.1 million at December 31, 2011 to $26.0 million at March 31, 2012. The increase is a result of the purchase of securities using excess cash created by the growth in deposits.
Deposits increased $3.4 million from $135.7 million at December 31, 2011 to $139.1 million at March 31, 2012. The 2.5% increase was primarily attributable to an increase in the balances of consumer checking, NOW accounts and savings accounts.
Stockholders' equity at March 31, 2012 increased $270,000, or 1.8%, from $15.3 million at December 31, 2011 to $15.5 million at March 31, 2012, and was 9.6% of total assets.
Safe-Harbor Statement
Certain matters in this News Release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may relate to, among others, expectations of the business environment in which the Company operates and projections of future performance. These forward-looking statements are based upon current management expectations, and may, therefore, involve risks and uncertainties. The Company's actual results, performance, or achievements may differ materially from those suggested, expressed, or implied by forward-looking statements as a result of a wide range of factors including, but not limited to, the general business environment, interest rates, competitive conditions, regulatory changes, and other risks.
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SECURITY BANCORP, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited) (dollars in thousands) |
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OPERATING DATA |
Three months ended March 31, |
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| 2012 | 2011 | |||||||
| Interest income | $1,529 | $1,579 | ||||||
| Interest expense | 357 | 444 | ||||||
| Net interest income | 1,172 | 1,135 | ||||||
| Provision for loan losses | 85 | 60 | ||||||
| Net interest income after provision for loan losses | 1,087 | 1,075 | ||||||
| Non-interest income | 585 | 505 | ||||||
| Non-interest expense | 1,210 | 1,221 | ||||||
| Income before income tax expense | 462 | 359 | ||||||
| Income tax expense | 185 | 144 | ||||||
| Net income | $277 | $215 | ||||||
| FINANCIAL CONDITION DATA | At March 31, 2012 | At December 31, 2011 | ||||||
| Total assets | $161,960 | $157,856 | ||||||
| Investments and mortgage backed securities - available for sale | 26,040 | 25,099 | ||||||
| Investments and mortgage backed securities - held to maturity | -0- | -0- | ||||||
| Loans receivable, net | 116,597 | 117,477 | ||||||
| Deposits | 139,077 | 135,681 | ||||||
| FHLB advances | 3,000 | 3,086 | ||||||
| Stockholders' equity | 15,526 | 15,256 | ||||||
| Non-performing assets | 2,431 | 1,948 | ||||||
| Non-performing assets to total assets | 1.50% | 1.30% | ||||||
| Allowance for loan losses | 1,585 | 1,538 | ||||||
| Allowance for loan losses to total loans receivable | 1.40% | 1.30% | ||||||
| Allowance for loan losses to non-performing assets | 65.20% | 78.95% | ||||||