MCMINNVILLE, Tenn., May 05, 2017 (GLOBE NEWSWIRE) -- Security Bancorp, Inc. (OTCBB:SCYT) (“Company”) today announced consolidated earnings for the first quarter of its fiscal year ended December 31, 2017. The Company is the holding company for Security Federal Savings Bank of McMinnville, Tennessee (“Bank”).
Net income for the three months ended March 31, 2017 was $385,000, or $1.00 per share, compared to $322,000, or $0.83 per share, for the same quarter last year.
For the three months ended March 31, 2017, net interest income increased by $137,000, or 9.6%, to $1.6 million from $1.4 million for the comparable period in 2016. Total interest income was $1.7 million for the three months ended March 31, 2017 compared to $1.6 million for the same period in the previous year. The increase of $114,000, or 7.0%, was primarily attributable an increase in interest income from loans. Total interest expense decreased $23,000, or 11.7%, to $173,000 for the three months ended March 31, 2017, from $196,000 for the same period in 2016. Net interest income after provision for loan losses for the three months ended March 31, 2017 increased by $138,000, or 9.9%, to $1.5 million from $1.4 million the same period the previous year.
Non-interest income for the three months ended March 31, 2017 was $461,000 compared to $406,000 for the three months ended March 31, 2016, an increase of $55,000, or 13.5%. The increase was attributable to an increase in the gains on sale of loans.
Non-interest expense for the three months ended March 31, 2017 increased $83,000, to $1.4 million, a 6.4% increase from the comparable period in 2016.
Consolidated assets of the Company increased $6.7 million, or 3.5%, to $196.9 million at March 31, 2017 from $190.2 million at December 31, 2016. The increase in consolidated assets was funded primarily by an increase in deposits. Loans receivable, net, decreased $1.1 million, or 0.8%, to $131.3 million at March 31, 2017 from $132.4 million at December 31, 2016.
The provision for loan losses was $30,000 for the three months ended March 31, 2017, a decrease of $1,000 from $31,000 for the same quarter last year.
Non-performing assets decreased $476,000, or 30.5%, to $1.1 million at March 31, 2017 from $1.6 million at December 31, 2016. The decrease is attributable to a decrease in non-performing 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 $1.5 million at March 31, 2017 is adequate to absorb known and inherent risks in the loan portfolio at that date. The allowance for loan losses at March 31, 2017 represented 134.53% of non-performing assets compared to 92.0% at December 31, 2016.
Investments and mortgage-backed securities available-for-sale decreased $451,000, or 1.3%, to $35.1 million at March 31, 2017 from $35.5 million at December 31, 2016. The decrease is attributable to repayments and maturities of securities.
Deposits increased $5.8 million, or 3.6%, to $168.2 million at March 31, 2017 from $162.4 million at December 31, 2016. The increase was primarily attributable to an increase in commercial and consumer demand deposits.
Stockholders’ equity at March 31, 2017 was $19.9 million, or 10.1% of total assets, compared to $19.4 million, or 10.2% of total assets at December 31, 2016.
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.
| SECURITY BANCORP, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited) (dollars in thousands) | ||||||||||
| OPERATING DATA | Three months ended March 31, | |||||||||
| 2017 | 2016 | |||||||||
| Interest income | $ | 1,736 | $ | 1,622 | ||||||
| Interest expense | 173 | 196 | ||||||||
| Net interest income | 1,563 | 1,426 | ||||||||
| Provision for loan losses | 30 | 31 | ||||||||
| Net interest income after provision for loan losses | 1,533 | 1,395 | ||||||||
| Non-interest income | 461 | 406 | ||||||||
| Non-interest expense | 1,386 | 1,303 | ||||||||
| Income before income tax expense | 608 | 498 | ||||||||
| Income tax expense | 223 | 176 | ||||||||
| Net income | $ | 385 | $ | 322 | ||||||
| Net Income per share (basic) | $ | 1.00 | $ | 0.83 | ||||||
| FINANCIAL CONDITION DATA | At March 31, 2017 | At December 31, 2016 | ||||||||
| Total assets | $ | 196,896 | $ | 190,242 | ||||||
| Investments and mortgage backed securities - available for sale | 35,059 | 35,510 | ||||||||
| Loans receivable, net | 131,289 | 132,367 | ||||||||
| Deposits | 168,198 | 162,362 | ||||||||
| Repurchase agreements | 6,715 | 6,619 | ||||||||
| Stockholders' equity | 19,890 | 19,417 | ||||||||
| Non-performing assets | 1,086 | 1,562 | ||||||||
| Non-performing assets to total assets | 0.55 | % | 0.82 | % | ||||||
| Allowance for loan losses | 1,461 | 1,437 | ||||||||
| Allowance for loan losses to total loans receivable | 1.10 | % | 1.07 | % | ||||||
| Allowance for loan losses to non-performing assets | 134.53 | % | 92.00 | % | ||||||