News Column

Security Bancorp, Inc. Announces Second Quarter Earnings

August 11, 2014

MCMINNVILLE, Tenn., Aug. 11, 2014 (GLOBE NEWSWIRE) -- Security Bancorp, Inc. ("Company") (OTCBB:SCYT) today announced consolidated earnings for the second quarter of its fiscal year ended December 31, 2014. The Company is the bank holding company for Security Federal Savings Bank of McMinnville, Tennessee, a Tennessee chartered commercial bank.

Net income for the three months ended June 30, 2014 was $350,000, or $0.91 per share, compared to $347,000, or $0.90 per share, for the same quarter last year. For the six months ended June 30, 2014, the Company's net income was $642,000, or $1.66 per share, compared to $573,000, or $1.49 per share, for the same period in 2013.

For the three months ended June 30, 2014, net interest income increased $128,000, or 10.4%, to $1.4 million compared to $1.2 million for the same period in 2013. For the six months ended June 30, 2014, net interest income increased $222,000, or 9.2%, to $2.6 million from $2.4 million for the same period in 2013. The increase in net interest income for the quarter and the six months ended June 30, 2014 was primarily due to the reduction in interest expense on customer deposits as well as an increase in interest income due to loan growth. Net interest income after provision for loan losses increased $128,000, or 11.2%, to $1.3 million for the three months ended June 30, 2014 compared to $1.1 million for the same period in 2013.  For the six months ended June 30, 2014 net interest income after provision for loan losses increased $219,000, or 9.8%, to $2.5 million from $2.2 million for the same period in 2013.   

Non-interest income for the three months ended June 30, 2014 was $513,000 compared to $703,000 for the same quarter of 2013, a decrease of $190,000, or 27.0%.   For the six months ended June 30, 2014, non-interest income was $1.0 million, reflecting a decrease of $219,000, or 17.5%, compared to $1.2 million for the same period in 2013. The decreases during the quarter and the six months ended June 30, 2014 were primarily attributable to a decrease in the gains on the sale of securities and gains on the sale of loans.

Non-interest expense for the three and six months ended June 30, 2014 remained relatively unchanged. For the three months ended June 30, 2014, non-interest expense was $1.3 million, reflecting a slight decrease of $22,000, or 1.7%, from the same period in 2013.  For the six months ended June 30, 2014, non-interest expense was $2.5 million, reflecting a slight decrease of $56,000, or 2.2%, from the same period in 2013. The decreases during the quarter and the six months ended June 30, 2014 were primarily due to a decrease in data processing expenses.

Consolidated assets of the Company were $173.5 million at June 30, 2014, compared to $159.1 million at December 31, 2013. The $14.4 million, or 9.1%, increase in assets is primarily attributable to an increase in the net loans receivable. Loans receivable, net, increased $11.6 million, or 9.6%, to $132.1 million at June 30, 2014 from $120.4 million at December 31, 2013. The increase in loans receivable was attributable to an increase primarily in commercial real estate loans.

The provision for loan losses was unchanged at $90,000 for the three months ended June 30, 2014 and June 30, 2013. The provision for loan losses was $183,000 for the six months ended June 30, 2014 compared to $180,000 in the comparable period in 2013, an increase of $3,000, or 1.7%.

Non-performing assets decreased $431,000, or 28.4%, to $1.1 million at June 30, 2014 from $1.5 million at December 31, 2013. The decrease is attributable to the sales of other real estate owned and a decrease 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 June 30, 2014 was adequate to absorb known and inherent risks in the loan portfolio at that date. At June 30, 2014 the allowance for loan losses to non-performing assets was 104.87% compared to 79.34% at December 31, 2013.

Investment and mortgage-backed securities available-for-sale increased $870,000, or 3.9%, to $22.9 million at June 30, 2014, compared to $22.1 million at December 31, 2013.  

Deposits increased $4.4 million, or 3.2%, to $143.2 million at June 30, 2014 from $138.8 million at December 31, 2013. The increase was primarily attributable to increases in commercial checking and NOW account balances.

Stockholders' equity increased $795,000, or 4.8%, to $17.4 million, or 10.0% of total assets at June 30, 2014 compared to $16.6 million, or 10.4%, of total assets, at December 31, 2013.

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)
  Three months ended Six months ended
OPERATING DATA   June 30,June 30,
 2014201320142013
Interest income$1,567$1,488$3,058$2,957
Interest expense 208 257 416 537
Net interest income 1,359 1,231 2,642 2,420
Provision for loan losses 90 90 183 180
Net interest income after provision for loan losses 1,269 1,141 2,459 2,240
Non-interest income 513 703 1,029 1,248
Non-interest expense 1,254 1,276 2,499 2,555
Income before income tax expense 528 568 989 933
Income tax expense 178 221 347 360
Net income$350$347$642$573
Net income per share$0.91$0.90$1.66$1.49
     
FINANCIAL CONDITION DATA At June 30, 2014 At December 31, 2013
Total assets$173,547$159,107
Investment and mortgage backed securities available-for-sale 22,943 22,073
Investment and mortgage backed securities held-to-maturity -0- -0-
Loans receivable, net 132,061 120,448
Deposits 143,225 138,798
Repurchase agreements 11,638 2,588
Stockholders' equity 17,374 16,579
Non-performing assets 1,089 1,520
Non-performing assets to total assets 0.63% 0.96%
Allowance for loan losses 1,142 1,206
Allowance for loan losses to total loans receivable 0.86% 0.99%
Allowance for loan losses to non-performing assets 104.87% 79.34%
         

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

Source: Security Bancorp, Inc.


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