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Security Bancorp, Inc. (OTCBB “SCYT”) today announced
consolidated earnings for the first quarter of its fiscal year
ended December 31, 2012. The Company is the holding company for
Security Federal Savings Bank of McMinnville, Tennessee
(“Bank”).
Net
income for the three months ended March 31, 2012 was $277,000,
or $0.72 per share, compared to $215,000, or $0.56 per share,
for the same quarter last year.
For the three months ended March 31, 2012, net interest
income increased 3.3% to $1.2 million from $1.1 million for the
comparable period in 2011. The increase in net interest income
was primarily due to the reduction in interest expense on
customer deposits. Net interest income after provision for loan
losses for the three months ended March 31, 2012 remained
relatively unchanged at $1.1 million for the same period during
the prior year.
Non-interest income for the three months ended March 31,
2012 was $585,000 compared to $505,000 for the same quarter of
2011, an increase of 15.9%. This increase was attributable to
an increase in the gains on sale of loans due to increased
demand in residential lending.Non-interest expense for the three
months ended March 31, 2012 decreased $11,000 but remained
relatively unchanged at $1.2 million compared to the same
quarter of 2011.
Consolidated assets of the Company increased 2.6% to $162.0
million at March 31, 2012 from $157.9 million at December 31,
2011. Loans receivable, net, decreased 0.8% from $117.5 million
at December 31, 2011 to $116.6 million at March 31, 2012. The
increase in consolidated assets was primarily attributable to an
increase in customer deposits.
The provision for loan losses was $85,000 for the three
months ended March 31, 2012, an increase of 41.7% from $60,000
for the same quarter last year. The increase is attributable to
an increase in the amount of the monthly provision as a result
of management’s concerns regarding the state of the local
economy.
Non-performing assets increased $483,000 from $1.9 million
at December 31, 2011 to $2.4 million at March 31, 2012. The
increase is attributable to an increase 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 $1.6 million at March 31, 2012 was
adequate to absorb known and inherent risks in the loan
portfolio at that date. At March 31, 2012 the allowance for loan
losses to non-performing assets was 65.20% compared to 78.95% at
December 31, 2011.
Investment and mortgage-backed securities
available-for-sale increased 3.8% from $25.1 million at December
31, 2011 to $26.0 million at March 31, 2012. The increase is a
result of the purchase of securities using excess cash created
by the growth in deposits.
Deposits increased $3.4 million from $135.7 million at December
31, 2011 to $139.1 million at March 31, 2012. The 2.5% increase
was primarily attributable to an increase in the balances of
consumer checking, NOW accounts and savings accounts.
Stockholders’ equity at March 31, 2012 increased $270,000, or
1.8%, from $15.3 million at December 31, 2011 to $15.5 million
at March 31, 2012, and was 9.6% of total assets.
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)
|
OPERATING
DATA |
Three months
|
ended
March 31 |
| |
2012 |
2011 |
|
Interest
Income |
$1,529 |
$1,579 |
|
Interest
Expense |
357 |
444 |
|
Net Interest
Income |
1,172 |
1,135 |
|
Provision
for loan loss |
85 |
60 |
|
Net interest
income after provision for loan loss |
1,087 |
1,075 |
|
Non-Interest
income |
585 |
505 |
|
Non-Interest
expense |
1,210 |
1,221 |
|
Income
before income tax expense |
462 |
359 |
|
Income tax
expense |
185 |
144 |
|
Net income |
$277 |
$215 |
|
FINANCIAL CONDITION DATA |
at
3/31/2012 |
at
12/31/2011 |
| Total
assets |
$161,960 |
$157,856 |
|
Investments and mortgage backed securities available for
sale |
26,040 |
25,099 |
|
Investments and mortgage backed securities held to
maturity |
-0- |
-0- |
| Loans
receivable, net |
116,597 |
117,477 |
| Deposits |
139,077 |
135,681 |
| FHLB
advances |
3,000 |
3,086 |
|
Stockholder's equity |
15,526 |
15,256 |
|
Non-performing assets |
2,431 |
1,948 |
|
Non-performing assets to total assets |
1.50% |
1.30% |
|
Allowance for loan losses |
1,585 |
1,538 |
|
Allowance for loan losses to total loans receivable |
1.40% |
1.30% |
|
Allowance for loan losses to non-performing assets |
65.20% |
78.95% |
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