Security Bancorp, Inc. Announces First Quarter Earnings

·5 min read

MCMINNVILLE, Tenn., May 07, 2021 (GLOBE NEWSWIRE) -- Security Bancorp, Inc. (OTCBB “SCYT”) (“Company”) today announced consolidated earnings for the first quarter ended March 31, 2021. The Company is the holding company for Security Federal Savings Bank of McMinnville, Tennessee (“Bank”).

Net income for the three months ended March 31, 2021 was $671,000, or $1.84 basic earnings per share, compared to $580,000, or $1.52 basic earnings per share, for the quarter ended March 31, 2020.

For the three months ended March 31, 2021, net interest income decreased $137,000, or 7.0%, to $1.8 million from $1.9 million for the same period in 2020. Total interest income decreased to $2.1 million for the three months ended March 31, 2021 compared to $2.5 million for the same period in the previous year. The decrease of $361,000, or 14.6%, was primarily attributable to a decrease in interest income from loans due to a reduction in interest rates. Total interest expense decreased $224,000, or 42.9%, to $298,000 for the three months ended March 31, 2021, from $522,000 for the quarter ended March 31, 2020. The decrease in interest expense was primarily due to a reduction in the interest rates on interest-bearing demand deposits, certificates of deposit and repurchase agreements. Net interest income, after provision for loan losses, for the three months ended March 31, 2021 decreased to $1.7 million, or $167,000, from $1.9 million compared to the same period in 2020.

Non-interest income for the three months ended March 31, 2021 was $687,000 compared to $412,000 for the three months ended March 31, 2020, an increase of $275,000, or 66.7%. The increase was primarily attributable to an increase in gains on sale of loans due to an increase in the volume of mortgage activity.

Non-interest expense for the three months ended March 31, 2021 remained relatively unchanged at $1.5 million compared to the same period the prior year.

The Company’s consolidated assets increased $12.2 million, or 4.7%, to $273.0 million at March 31, 2021 from $260.8 million at December 31, 2020. The increase in consolidated assets was funded primarily by an increase in demand deposits. Loans receivable, net, increased $1.1 million, or 0.63%, to $176.0 million at March 31, 2021 from $174.9 million at December 31, 2020.

The provision for loan losses was $60,000 for the three months ended March 31, 2021, an increase of $30,000 when compared to the three months ended March 31, 2020. The increase of the provision for loan losses was due to the increase in loan balances.

Non-performing assets decreased $155,000, or 52.7%, to $139,000 at March 31, 2021 from $294,000 at December 31, 2020. The decrease is primarily attributable to a decrease in non-performing loans. Based on our analysis of delinquent loans, non-performing loans and classified loans, we believe that the Company’s allowance for loan losses of $1.9 million at March 31, 2021 is adequate to absorb known and inherent risks in the loan portfolio at that date. The allowance for loan losses at March 31, 2021 represented 1,333.8% of non-performing assets compared to 609.46% at December 31, 2020.

Investments and mortgage-backed securities available-for-sale increased slightly by $540,000, or 1.5%, to $37.8 million at March 31, 2021 from $37.2 million at December 31, 2020. The increase was primarily due to the purchase of additional investments.

Deposits increased $19.3 million, or 8.7%, to $241.6 million at March 31, 2021 from $222.4 million at December 31, 2020. The increase was primarily attributable to an increase in both commercial and consumer demand deposits.

Stockholders’ equity at March 31, 2021 was $26.7 million, or 9.8% of total assets, compared to $26.3 million, or 10.1% of total assets at December 31, 2020.

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 resulting from the COVID-19 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
March 31,

2021

2020

Interest income

$2,107

$2,468

Interest expense

298

522

Net interest income

1,809

1,946

Provision for loan losses

60

30

Net interest income after provision for loan losses

1,749

1,916

Non-interest income

687

412

Non-interest expense

1,539

1,558

Income before income tax expense

897

770

Income tax expense

226

190

Net income

$671

$580

Net Income per share (basic)

$1.84

$1.52

FINANCIAL CONDITION DATA

At March 31, 2021

At December 31, 2020

Total assets

$273,044

$260,827

Investments and mortgage-backed securities - available for sale

37,756

37,216

Loans receivable, net

176,023

174,913

Deposits

241,623

222,352

Repurchase agreements

-0-

7,719

Federal Home Loan Bank Advances

2,000

2,000

Stockholders' equity

26,745

26,298

Non-performing assets

139

294

Non-performing assets to total assets

0.05%

0.11%

Allowance for loan losses

1,854

$1,793

Allowance for loan losses to total loans receivable

1.04%

1.02%

Allowance for loan losses to non-performing assets

1333.8

609.46


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