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CST: 21/10/2019 16:26:55   

Security Bancorp, Inc. Announces Second Quarter Earnings

77 Days ago

MCMINNVILLE, Tenn., Aug. 05, 2019 (GLOBE NEWSWIRE) -- Security Bancorp, Inc. (“Company”) (OTCBB: “SCYT”), the holding company for Security Federal Savings Bank of McMinnville, Tennessee, today announced consolidated earnings for the second quarter of its fiscal year ended December 31, 2019.

Net income for the three months ended June 30, 2019 was $655,000, or $1.70 per share, compared to $532,000, or $1.37 per share, for the same quarter last year. For the six months ended June 30, 2019, the Company’s net income was $1.3 million or $3.28 per share, compared to $1.0 million, or $2.67 per share, for the same period in 2018.

For the three months ended June 30, 2019, net interest income increased $177,000, or 10.0%, to $1.9 million from $1.8 million for the same period in 2018.  For the six months ended June 30, 2019, net interest income increased $345,000, or 10.0%, to $3.8 million from $3.5 million for the same period in 2018.  The increase in net interest income for the three months and six months ended June 30, 2019 was primarily the result of an increase in interest income on loans due to loan growth as well as an increase in interest rates.  Net interest income after provision for loan losses for the three months ended June 30, 2019 was $1.9 million, an increase of $207,000, or 11.9%, from the same period in the previous year.  For the six months ended June 30, 2019, net interest income after provision for loan losses increased $404,000, or 11.9%, to $3.8 million from $3.4 million for the same period in 2018.  The primary reason for this increase during the three and six months ended June 30, 2019 was an increase in net interest income as well as a decrease in the provision for loan losses.

Non-interest income for the three months ended June 30, 2019 was $406,000 compared to $422,000 for the same quarter of 2018, a decrease of $16,000, or 3.8%.  The decrease during the quarter ended June 30, 2019 was primarily attributable to a decrease in deposit service charges and fees.  For the six months ended June 30, 2019, non-interest income was $784,000, reflecting a decrease of $46,000, or 5.5%, compared to $830,000 for the same period in 2018. The decrease during the six months ended June 30, 2019 was also attributable to a decrease in deposit service charges and fees.

Non-interest expense for the three months ended June 30, 2019 was $1.5 million, an increase of $26,000, or 1.8%, compared to $1.4 million the same period in 2018.  For the six months ended June 30, 2019 non-interest expense increased $44,000, or 1.5%, to $2.9 million from $2.8 million for the same period the previous year.  For the three months and six months ended June 30, 2019 the increases are attributable to slight increases in employee expenses, occupancy expenses and data processing expenses.     

Consolidated assets of the Company were $211.6 million at June 30, 2019, compared to $213.6 million at December 31, 2018.  The $2.0 million, or 0.9%, decrease in assets was a result of a decrease in interest-bearing deposits with banks and investments.  Loans receivable, net, increased $7.7 million, or 5.2%, to $157.5 million at June 30, 2019 from $149.7 million at December 31, 2018.  The increase in loans receivable was primarily attributable to an increase in commercial real estate loans.

For the three months ended June 30, 2019 there was no provision for loan losses compared to a $30,000 provision in the same period in 2018.  The provision for loan losses was $2,000 for the six months ended June 30, 2019 compared to $61,000 in the comparable period in 2018, a decrease of $59,000.  

Non-performing assets increased $129,000, or 16.9%, to $892,000 at June 30, 2019 from $763,000 at December 31, 2018.  The increase is attributable to an increase in other real estate owned. Based on its analysis of delinquent loans, non-performing loans and classified loans, management believes that the Company’s allowance for loan losses of $1.6 million at June 30, 2019 was adequate to absorb known and inherent risks in the loan portfolio at that date.  At June 30, 2019 the allowance for loan losses to non-performing assets was 178.7% compared to 208.1% at December 31, 2018.

Investment and mortgage-backed securities available-for-sale decreased $4.5 million, or 11.3%, to $35.1 million at June 30, 2019, compared to $39.6 million at December 31, 2018.  The decrease was due to maturities and payments on investments used to fund loan growth.  There were no investment and mortgage-backed securities held-to-maturity at June 30, 2019 and December 31, 2018.

Deposits decreased $1.4 million, or 0.80%, to $176.2 million at June 30, 2019 from $177.7 million at December 31, 2018.  The decrease was primarily attributable to decreases in consumer checking account and money market balances.  The balance in repurchase agreements decreased to $6.4 million at June 30, 2019 compared to $7.7 million at December 31, 2018, reflecting a decrease of $1.3 million, or 16.7%.

Stockholders’ equity increased $1.6 million, or 7.2%, to $23.7 million, or 11.2% of total assets at June 30, 2019 compared to $22.1 million, or 10.4%, of total assets, at December 31, 2018.

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.

Contact:

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


SECURITY BANCORP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(unaudited) (dollars in thousands)
OPERATING DATA Three months ended
 June 30,
Six months ended
June 30,
   2018  2019   2018  2019 
Interest income $2,046 $2,365 $3,986 $4,641
Interest expense 280 422 535 845
Net interest income 1,766 1,943 3,451 3,796
Provision for loan losses 30 -0- 61 2
Net interest income after provision for loan losses 1,736 1,943 3,390 3,794
Non-interest income 422 406 830 784
Non-interest expense 1,449 1,475 2,843 2,887
Income before income tax expense 709 874 1,377 1,691
Income tax expense 177 219 342 424
Net income $532 $655 $1,035 $1,267
Net Income per share (basic) $1.37 $1.70 $2.67 $3.28
         
FINANCIAL CONDITION DATA At June 30, 2019 At December 31, 2018
Total assets $211,608 $213,579
Investments and mortgage backed securities - available for sale 35,099 39,591
Loans receivable, net 157,467 149,720
Deposits 176,242 177,654
Repurchase agreements 6,377 7,652
Federal Home Loan Bank Advances 3,000 4,000
Stockholders' equity 23,712 22,125
Non-performing assets 892 763
Non-performing assets to total assets 0.42% 0.36%
Allowance for loan losses 1,594 1,587
Allowance for loan losses to total loans receivable 1.00% 1.05%
Allowance for loan losses to non-performing assets 178.70% 208.1%

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