Security Bancorp, Inc. Announces First Quarter Earnings

/EIN News/ -- MCMINNVILLE, Tenn., May 05, 2025 (GLOBE NEWSWIRE) -- Security Bancorp, Inc. (OTCBB “SCYT”) (“Company”) today announced consolidated results for the first quarter ended March 31, 2025. The Company is the holding company for Security Federal Savings Bank of McMinnville, Tennessee (“Bank”).

Net income for the three months ended March 31, 2025 was $1.0 million, or $2.73 basic earnings per share, compared to $984,000, or $2.63 basic earnings per share, for the quarter ended March 31, 2024.

For the three months ended March 31, 2025, net interest income increased $335,000, or 13.1%, to $2.9 million from $2.6 million for the same period in 2024. Total interest income increased $763,000, or 16.9%, to $5.3 million for the three months ended March 31, 2025 from $4.5 million for the same period in 2024. Total interest expense increased $428,000 to $2.4 million for the three months ended March 31, 2025 from $2.0 million for the quarter ended March 31, 2024. The increase in interest expense was primarily due to an increase in interest-bearing deposits. Net interest income, after provision for credit losses, for the three months ended March 31, 2025 increased $379,000 to $2.9 million, compared to $2.5 million for the same period in 2024.

The provision for credit losses was $7,000 for the three months ended March 31, 2025, a decrease of $44,000 compared to $51,000 for the three months ended March 31, 2024.

Non-interest income for the three months ended March 31, 2025 was $486,000 compared to $515,000 for the three months ended March 31, 2024, a decrease of $29,000, or 5.6%.  

Non-interest expense for the three months ended March 31, 2025 was $2.0 million, an increase of $323,000, or 19.1%, from $1.7 million for the same period in 2024. The increase was primarily due to an increase in professional fees related to the renegotiation of data processing contracts.

The Company’s consolidated total assets increased by $32.1 million, or 8.9%, to $391.8 million at March 31, 2025 from $359.7 million at December 31, 2024. The increase in consolidated assets was due to increases in interest-bearing deposits with banks, Federal funds sold and loans. These asset increases were funded by an increase in customer deposits. Loans receivable, net, increased $12.3 million, or 4.7%, to $276.3 million at March 31, 2025 from $264.1 million at December 31, 2024.

Non-performing assets decreased $111,000, or 79.9%, to $28,000 at March 31, 2025 from $139,000 at December 31, 2024. The decline was primarily attributable to a decrease in real estate owned. Based on our analysis of delinquent loans, non-performing loans and classified loans, we believe that the Company’s allowance for loan losses of $2.8 million at March 31, 2025 is adequate to absorb known and inherent risks in the loan portfolio at that date. The allowance for loan losses at March 31, 2025 represented 9,953.7% of non-performing assets compared to 2,001.69% at December 31, 2024.

Investments and mortgage-backed securities available-for-sale decreased $2.6 million, or 5.8%, to $42.4 million from $45.0 million at December 31, 2024. The decrease was due to the maturity of investments.

Deposits increased $30.1 million, or 9.4%, to $ 350.6 million at March 31, 2025 from $320.5 million at December 31, 2024. The increase in deposits was due to increases in commercial interest-bearing demand deposits as well as certificates of deposit.

Stockholders’ equity at March 31, 2025 was $37.1 million, or 9.5% of total assets, compared to $35.6 million, or 9.9% of total assets at December 31, 2024.

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 ,financial market conditions and other uncertainties.

Contact:

Michael D. Griffith President & Chief Executive Officer (931) 473-4483

SECURITY BANCORP, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited) (dollars in thousands)
OPERATING DATA	Three months ended March 31,
	2025		2024
Interest income	$5,278		$4,515
Interest expense	2,392		1,964
Net interest income	2,886		2,551
Provision for credit losses	7		51
Net interest income after provision for credit losses	2,879		2,500
Non-interest income	486		515
Non-interest expense	2,014		1,691
Income before income tax expense	1,351		1,324
Income tax expense	325		340
Net income	$1,026		$984
Net Income per share (basic)	$2.73		$2.63
FINANCIAL CONDITION DATA	At March 31, 2025			At December 31, 2024
Total assets	$391,786			$359,725
Investments and mortgage-backed securities - available for sale	42,412			45,047
Loans receivable, net	276,348			264,055
Deposits	350,644			320,527
Federal Home Loan Bank Advances	-0-			-0-
Stockholders' equity	37,096			35,609
Non-performing assets	28			139
Non-performing assets to total assets	0.007%			0.04%
Allowance for loan losses	2,787			2,782
Allowance for loan losses to total loans receivable	1.00%			1.04%
Allowance for loan losses to non-performing assets	9,953.6%			2,001.69%