Security Bancorp, Inc. Announces First Quarter Earnings

MCMINNVILLE, Tenn., May 10, 2016 (GLOBE NEWSWIRE) -- Security Bancorp, Inc. (OTCBB:SCYT) (“Company”) today announced consolidated earnings for the first quarter of its fiscal year ended December 31, 2016. The Company is the holding company for Security Federal Savings Bank of McMinnville, Tennessee (“Bank”).

Net income for the three months ended March 31, 2016 was $322,000, or $0.83 per share, compared to $360,000, or $0.93 per share, for the same quarter last year.

For the three months ended March 31, 2016, net interest income increased by $73,000, or 5.4%, but remained at $1.4 million, unchanged from the comparable period in 2015. Total interest income was $1.6 million for the three months ended March 31, 2016 compared to $1.5 million for the same period in the previous year. The increase of $76,000, or 4.9%, was primarily attributable to an increase in interest income from loans and investment securities. Total interest expense increased $3,000, or 1.6%, to $196,000 for the three months ended March 31, 2016 from $193,000 for the same period in 2015. Net interest income after provision for loan losses for the three months ended March 31, 2016 increased by $139,000, or 11.1%, to $1.4 million from $1.3 million the same period the previous year.

Non-interest income for the three months ended March 31, 2016 was $406,000 compared to $498,000 for the same quarter of 2016, a decrease of $92,000, or 18.5%. The decrease was attributable to a decline in financial department income and trust service fees.

Non-interest expense for the three months ended March 31, 2016 increased $66,000, or 5.3%, to $1.3 million, relatively unchanged from $1.2 million for the comparable period in 2015.

Consolidated assets of the Company increased $1.5 million, or 0.8%, to $188.7 million at March 31, 2016 from $187.3 million at December 31, 2015. Loans receivable, net, increased $657,000, or 0.5%, to $126.5 million at March 31, 2016 from $125.9 million at December 31, 2015. The increase in consolidated assets was primarily attributable to the increase in loans.

The provision for loan losses was $31,000 for the three months ended March 31, 2016, a decrease of $66,000, or 68.0%, from $97,000 for the same quarter last year.

Non-performing assets decreased $604,000, or 30.2%, to $1.4 million at March 31, 2016 from $2.0 million at December 31, 2015. 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 $1.3 million at March 31, 2016 is adequate to absorb known and inherent risks in the loan portfolio at that date. The allowance for loan losses at March 31, 2016 represented 95.49% of non-performing assets compared to 64.96% at December 31, 2015.

Investments and mortgage-backed securities available-for-sale decreased $427,000, or 1.1%, to $37.8 million at March 31, 2016 from $38.2 million at December 31, 2015. The decrease is attributable to repayments and maturities of securities.

Deposits decreased $228,000, or 0.14%, to $162.4 million at March 31, 2016 from $162.7 million at December 31, 2015. The decrease was primarily attributable to a decrease in non-interest bearing demand deposits.

Stockholders’ equity at March 31, 2016 was $18.9 million, or 10.0% of total assets, compared to $18.3 million, or 9.8% of total assets at December 31, 2015.

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 DATAThree months ended
March 31,
2016 2015
Interest income$1,622 $1,546
Interest expense 196 193
Net interest income 1,426 1,353
Provision for loan losses 31 97
Net interest income after provision for loan losses 1,395 1,256
Non-interest income 406 498
Non-interest expense 1,303 1,237
Income before income tax expense 498 517
Income tax expense 176 157
Net income$322 $360
Net Income per share (basic)$0.83 $0.93
FINANCIAL CONDITION DATAAt March 31, 2016At December 31, 2015
Total assets$188,717 $187,256
Investments and mortgage backed securities - available for sale 37,754 38,181
Loans receivable, net 126,531 125,874
Deposits 162,425 162,653
Repurchase agreements 5,557 4,792
Stockholders' equity 18,891 18,344
Non-performing assets 1,397 2,001
Non-performing assets to total assets 0.74% 1.07%
Allowance for loan losses 1,334 1,300
Allowance for loan losses to total loans receivable 1.04% 1.02%
Allowance for loan losses to non-performing assets 95.49% 64.96%


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

Source:Security Bancorp, Inc.