MCMINNVILLE, Tenn., May 6, 2013 (GLOBE NEWSWIRE) -- Security Bancorp, Inc. (OTCBB:SCYT) ("Company") today announced consolidated earnings for the first quarter of its fiscal year ended December 31, 2013. The Company is the holding company for Security Federal Savings Bank of McMinnville, Tennessee ("Bank").
Net income for the three months ended March 31, 2013 was $225,000, or $0.58 per share, compared to $277,000, or $0.72 per share, for the same quarter last year.
For the three months ended March 31, 2013 and 2012, net interest income remained relatively unchanged at $1.2 million. Total interest income decreased by $58,000, or 3.8%, during the three months ended March 31, 2013, but remained at $1.5 million, unchanged from the comparable period in 2012. The decrease in total interest income for the three months ended March 31, 2013 was primarily attributable to loans repricing to lower interest rates. Total interest expense decreased $75,000, or 21.1%, to $280,000 for the three months ended March 31, 2013 from $355,000 for the same period in 2012. The decrease in interest expense is due to a decline in interest on borrowings and the repricing of deposits. Net interest income after provision for loan losses for the three months ended March 31, 2013 remained relatively unchanged at $1.1 million from the same period during the prior year.
Non-interest income for the three months ended March 31, 2013 was $545,000 compared to $585,000 for the same quarter of 2012, a decrease of $40,000, or 6.8%. The decrease was attributable to a decline in the gains on sale of loans due to a lower volume of residential lending.
Non-interest expense for the three months ended March 31, 2013 increased $65,000, or 5.4%, to $1.3 million from $1.2 million for the same period in 2012.
Consolidated assets of the Company increased $2.6 million, or 1.6%, to $165.8 million at March 31, 2013 from $163.2 million at December 31, 2012. Loans receivable, net, increased $236,000, or 0.2%, to $117.3 million at March 31, 2013 from $117.1 million at December 31, 2012. The increase in consolidated assets was primarily attributable to an increase in customer deposits and repurchase agreements.
The provision for loan losses was $90,000 for the three months ended March 31, 2013, an increase of $5,000, or 5.9%, from $85,000 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 local economic conditions.
Non-performing assets increased $93,000, or 6.8%, to $1.5 million at March 31, 2013 from $1.4 million at December 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 $1.1 million at March 31, 2013 is adequate to absorb known and inherent risks in the loan portfolio at that date. At March 31, 2013 the allowance for loan losses to non-performing assets was 76.61% compared to 78.31% at December 31, 2012.
Investment and mortgage-backed securities available-for-sale increased $765,000, or 3.0%, from $25.3 million at December 31, 2012 to $26.1 million at March 31, 2013. The increase is a result of the purchase of securities using excess cash created by the growth in deposits.
Deposits increased $718,000, 0.5%, to $143.6 million at March 31, 2013 from $142.9 million at December 31, 2012. The increase was primarily attributable to an increase in the balances of consumer checking accounts.
Stockholders' equity at March 31, 2013 was $16.4 million, or 9.9% of total assets, and reflected an increase of $321,000, or 2.0%, from $16.1 million at December 31, 2012.
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)|
| Three months ended |
|Net interest income||1,188||1,171|
|Provision for loan losses||90||85|
|Net interest income after provision for loan losses||1,098||1,086|
|Income before income tax expense||364||457|
|Income tax expense||139||180|
|FINANCIAL CONDITION DATA||At March 31, 2013||At December 31, 2012|
|Investments and mortgage backed securities - available for sale||26,051||25,286|
|Investments and mortgage backed securities - held to maturity||-0-||-0-|
|Loans receivable, net||117,327||117,091|
|Non-performing assets to total assets||0.88%||0.84%|
|Allowance for loan losses||1,120||1,072|
|Allowance for loan losses to total loans receivable||0.95%||0.91%|
|Allowance for loan losses to non-performing assets||76.61%||78.31%|
CONTACT: Joe Pugh President & Chief Executive Officer (931) 473-4483Source:Security Bancorp, Inc.