Security Bancorp, Inc. Announces Third Quarter Earnings

MCMINNVILLE, Tenn., Nov. 08, 2021 (GLOBE NEWSWIRE) -- Security Bancorp, Inc. (“Company”) (OTCBB: “SCYT”), the holding company for Security Federal Savings Bank of McMinnville, Tennessee, today announced its consolidated earnings for the third quarter of its fiscal year ended December 31, 2021.

Net income for the three months ended September 30, 2021 was $671,000, or $1.79 per share, compared to $561,000, or $1.50 per share, for the same quarter last year. For the nine months ended September 30, 2021, the Company’s net income was $2.0 million or $5.26 per share, compared to $1.7 million, or $4.38 per share, for the same period in 2020.

For the three months ended September 30, 2021, net interest income increased slightly to $1.9 million from $1.8 million for the same period in 2020. The increase in net interest income for the three months ended September 30, 2021 was due to the decrease in interest expense during the quarter as a result of the decline in interest rates. For the nine months ended September 30, 2021, net interest income, compared to the same quarter in 2020 was unchanged at $5.5 million. Net interest income after provision for loan losses for the three months ended September 30, 2021 was $1.8 million, an increase of $83,000, or 4.8%, from the same period in the previous year. For the nine months ended September 30, 2021, net interest income after provision for loan losses decreased $56,000, or 1.0%, to $5.3 million from $5.4 million for the same period in 2020. The primary reason for the increase during the three months ended September 30, 2021 was a decrease in interest income offset by a decrease in interest expense.

Non-interest income for the three months ended September 30, 2021 was $693,000 compared to $565,000 for the same quarter of 2020, an increase of $128,000. Non-interest income for the nine months ended September 30, 2021 was $2.0 million compared to $1.4 million for the same period the prior year, an increase of $548,000. The increase during the three and nine months ended September 30, 2021 was primarily attributable to an increase in the gains on the sale of loans due to the increase in the volume of mortgage loan originations as well as an increase in financial service fees.

Non-interest expense for the three months ended September 30, 2021 was $1.6 million for the three months ended September 30, 2021 compared to $1.5 million for the same period in 2020. For the nine months ended September 30, 2021, non-interest expense was $4.7 million, an increase of $49,000 from the same period in 2020. The increase in non-interest expense was attributable to an increase in data processing expenses and FDIC insurance premiums.

Consolidated assets of the Company were $289.3 million at September 30, 2021, compared to $260.8 million at December 31, 2020. The $28.5 million, or 10.9%, increase in assets was a result of an increase in interest-bearing deposits, investments, and loans receivable.   Loans receivable, net, increased $5.5 million, or 3.1%, to $180.4 million at September 30, 2021 from $174.9 million at December 31, 2020. The increase in loans receivable was attributable to an increase in commercial real estate loans.

For the three months ended September 30, 2021 the provision for loan losses was $60,000, unchanged from the same period in 2020. The provision for loan losses was $180,000 for the nine months ended September 30, 2021 compared to $140,000 in the comparable period in 2020, an increase of $40,000.

Non-performing assets decreased $61,000, or 20.7%, to $233,000 at September 30, 2021 from $294,000 at December 31, 2020. 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 $2.0 million at September 30, 2021 was adequate to absorb known and inherent risks in the loan portfolio at that date. At September 30, 2021, the allowance for loan losses to non-performing assets was 848.07% compared to 609.46% at December 31, 2020.

Investment and mortgage-backed securities available-for-sale increased $10.0 million, or 27.0%, to $47.3 million at September 30, 2021, compared to $37.2 million at December 31, 2020. The increase was due to investment purchases funded by the increase in customer deposit balances. There were no investment and mortgage-backed securities held-to-maturity at September 30, 2021 and December 31, 2020.

Deposits increased $34.8 million, or 15.7%, to $257.2 million at September 30, 2021 from $222.4 million at December 31, 2020. The increase was primarily attributable to increases in consumer and commercial checking accounts, savings, and certificate of deposits balances. The balance in repurchase agreements decreased from $7.7 million at December 31, 2020 to a zero balance at September 30, 2021 as a result of the transfer of these balances to commercial checking accounts.

Stockholders’ equity increased $1.3 million or 5.0%, to $27.6 million, or 9.5% of total assets at September 30, 2021, compared to $26.3 million, or 10.1%, of total assets, at December 31, 2020.

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.

Contact:
Joe H. Pugh
President & Chief Executive Officer 
(931) 473-4483