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MCMINNVILLE, Tenn., May 07, 2019 (GLOBE NEWSWIRE) -- Security Bancorp, Inc. (OTCBB “SCYT”) (“Company”) today announced consolidated earnings for the first quarter of its fiscal year ended December 31, 2019. The Company is the holding company for Security Federal Savings Bank of McMinnville, Tennessee (“Bank”).
Net income for the three months ended March 31, 2019 was $613,000, or $1.59 basic earnings per share, compared to $504,000, or $1.30 basic earnings per share, for the same quarter last year.
For the three months ended March 31, 2019, net interest income increased by $168,000, or 10.0%, to $1.9 million from $1.7 million for the comparable period in 2018. Total interest income was $2.3 million for the three months ended March 31, 2019 compared to $1.9 million for the same period in the previous year. The increase of $336,000, or 17.3%, was primarily attributable to an increase in interest income from loans due to growth in loans. Total interest expense increased $168,000, or 65.9%, to $423,000 for the three months ended March 31, 2019, from $255,000 for the same period in 2018. The increase in interest expense was primarily due to an increase in the interest paid on deposits as well as the increase in repurchase agreement balances. Net interest income after provision for loan losses for the three months ended March 31, 2019 increased by $197,000, or 11.9%, to $1.9 million from $1.7 million the same period the previous year.
Non-interest income for the three months ended March 31, 2019 was $378,000 compared to $408,000 for the three months ended March 31, 2018, a decrease of $30,000, or 7.4%. The decrease was primarily attributable to a decrease in deposit service charges and fees.
Non-interest expense for the three months ended March 31, 2019 remained relatively stable at $1.4 million compared to the same period the prior year.
The Company’s consolidated assets increased $4.5 million, or 2.1%, to $218.3 million at March 31, 2019 from $213.6 million at December 31, 2018. The increase in consolidated assets was funded primarily by an increase in repurchase agreements. Loans receivable, net, increased $1.5 million, or 0.97%, to $151.2 million at March 31, 2019 from $149.7 million at December 31, 2018.
The provision for loan losses was $2,000 for the three months ended March 31, 2019, a decrease of $29,000 from the same quarter last year which had a provision for loan losses of $31,000.
Non-performing assets increased $14,000, or 1.8%, to $777,000 at March 31, 2019 from $763,000 at December 31, 2018. The increase is attributable to an increase in other 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 $1.6 million at March 31, 2019 is adequate to absorb known and inherent risks in the loan portfolio at that date. The allowance for loan losses at March 31, 2019 represented 204.4% of non-performing assets compared to 208.1% at December 31, 2018.
Investments and mortgage-backed securities available-for-sale decreased $2.0 million or 5.0%, to $37.6 million at March 31, 2019 from $39.6 million at December 31, 2018. The decrease was primarily due to maturities of investments.
Deposits increased $2.7 million, or 1.5%, to $180.3 million at March 31, 2019 from $177.7 million at December 31, 2018. The increase was primarily attributable to an increase in commercial and consumer interest-bearing demand deposits.
Stockholders’ equity at March 31, 2019 was $22.8 million, or 10.5% of total assets, compared to $22.1 million, or 10.4% of total assets at December 31, 2018.
Certain matters in this News Release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may relate to, among others, expectations of the business environment in which the Company operates and projections of future performance. These forward-looking statements are based upon current management expectations, and may, therefore, involve risks and uncertainties. The Company’s actual results, performance, or achievements may differ materially from those suggested, expressed, or implied by forward-looking statements as a result of a wide range of factors including, but not limited to, the general business environment, interest rates, competitive conditions, regulatory changes, and other risks.
|President & Chief Executive Officer|
SECURITY BANCORP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(unaudited) (dollars in thousands)
|OPERATING DATA||Three months ended
|Net interest income||1,854||1,686|
|Provision for loan losses||2||31|
|Net interest income after provision for loan losses||1,852||1,655|
|Income before income tax expense||818||669|
|Income tax expense||205||165|
|Net Income per share (basic)||$||1.59||$||1.30|
|FINANCIAL CONDITION DATA||At March 31, 2019||At December 31, 2018|
|Investments and mortgage backed securities - available for sale||37,603||39,591|
|Loans receivable, net||151,179||149,720|
|Federal Home Loan Bank Advances||-0-||4,000|
|Non-performing assets to total assets||0.36||%||0.36||%|
|Allowance for loan losses||1,588||1,587|
|Allowance for loan losses to total loans receivable||1.04||%||1.05||%|
|Allowance for loan losses to non-performing assets||204.38||%||208.1||%|