Security Bancorp, Inc. ("The Company") (OTCBB “SCYT”) today announced consolidated earnings for the second quarter of its fiscal year ended December 31, 2008.  The Company is the holding company for Security Federal Savings Bank of McMinnville, Tennessee (“Bank”).

  Net income for the three months ended June 30, 2008 was $433,000, or $0.99 per share, compared to $368,000, or $0.86 per share, for the same quarter last year. For the six months ended June 30, 2008, the Company’s net income was $930,000, or $2.14 per share, compared to $720,000, or $1.69 per share, for the same period in 2007.

  Net interest income after provision for loan losses for the three months ended June 30, 2008 decreased 6.0% to $1.4 million from $1.5 million for the same period last year.    For the six months ended June 30, 2008, net interest income decreased 4.7% to $2.8 million from $2.9 million for the comparable period in 2007. The decrease in net interest income was attributable to the decrease in interest rates during the quarter and six months ended June 30, 2008.

  Non-interest income for the three months ended June 30, 2008 was $497,000 compared to $485,000 for the same quarter of 2007, an increase of 2.5%.   For the six months ended June 30, 2008, non-interest income increased 5.1% to $970,000 from $923,000 for the comparable period in 2007. The increases during the quarter and the six months ended June 30, 2008 were attributable to increases in the trust service fee income and the gains on sales of loans.

  Non-interest expense for the three months ended June 30, 2008 was $1.2 million compared to $1.4 million for the same quarter of 2007, a decrease of 13.6%.   For the six months ended June 30, 2008, non-interest expense decreased 13.2% to $2.4 million from $2.7 million for the comparable period in 2007. The decreases during the quarter and the six months ended June 30, 2008 were primarily a result of a decrease in data processing fees and consulting fees related to the 2007 system conversion. 

  Consolidated assets of the Company were $139.9 million at June 30, 2008, compared to $144.2 million at December 31, 2007.  The decrease in assets is attributable to a decrease in public funds held in deposits at the Bank and a corresponding reduction in the Bank investment securities.  Loans receivable, net, increased from $97.2 million at December 31, 2007 to $100.4 million at June 30, 2008.  The 3.3% increase in loans receivable was primarily a result of an increase in commercial secured loans.

  The provision for loan losses decreased 14.3% to $30,000 for the three months ended June 30, 2008 from $35,000 for the same quarter last year.  For the six months ended June 30, 2008, the provision for loan losses decreased 9.0% to $61,000 from $67,000 for the same period in 2007.  Non-performing assets increased 7.8% from $525,000 at December 31, 2007 to $566,000 at June 30, 2008.  Non-performing assets to total assets were 0.40% at June 30, 2008, compared to 0.36% at December 31, 2007.

  Investment and mortgage-backed securities available-for-sale decreased from $31.4 million at December 31, 2007 to $25.5 million at June 30, 2008.  The 18.8% decrease was a result of the maturities and calls of securities.

  Deposits increased $5.9 million, or 5.7%, from $104.0 million at December 31, 2007 to $109.9 million at June 30, 2008.  The increase was primarily attributable to an increase in commercial checking account balances.

  Stockholders’ equity at June 30, 2008 was $15.4 million, or 11.0% of total assets, compared to $14.9 million, or 10.4% of total assets, at December 31, 2007.

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)

    Security Bancorp, Inc.'s Board of Directors has declared an annual cash dividend of $1.00 per share on the Corporation’s outstanding common stock. The cash dividend will be payable on July 1, 2008 to shareholders of record as of the close of business on June 2, 2008. Security Bancorp, Inc. is the holding company for Security Federal Savings Bank of McMinnville, TN, a federally-chartered savings bank headquartered in McMinnville, Tennessee. At March 31, 2008, the Corporation had total assets of $141.7 million and stockholders’ equity of $15.4 million.

    For more information, please review the Security Bancorp 2007 Annual Report or contact Security Federal Savings Bank at 931-473-4483.

data released 16 May 2008

  Security Bancorp, Inc. (OTCBB “SCYT”) today announced consolidated earnings for the first quarter ended March 31, 2008.  The Company is the holding company for Security Federal Savings Bank of McMinnville, Tennessee (“Bank”).

  Net income for the three months ended March 31, 2008 was $496,000, or $1.16 per share, compared to $352,000, or $0.83 per share, for the same quarter last year.

  Net interest income after provision for loan losses for the three months ended March 31, 2008 decreased 3.5% to $1.4 million from $1.5 million for the same period last year.  The decrease in net interest income was attributable to the decrease in interest rates during the quarter.

  Non-interest income for the three months ended March 31, 2008 was $473,000 compared to $438,000 for the same quarter of 2007.  The 8.0% increase was primarily attributable to an increase in trust service fees and gains on loans sold.

  Non-interest expense for the three months ended March 31, 2008 was $1.2 million compared to $1.3 million for the same quarter of 2007.  The 12.8% decrease was primarily a result of a decrease in data processing expenses.  The data processing conversion was completed in 2007.

  Consolidated assets of the Company decreased 1.8% to $141.7 million at March 31, 2008 from $144.2 million at December 31, 2007.  Loans receivable, net, increased 0.5% from $97.2 million at December 31, 2007 to $97.7 million at March 31, 2008.  The decrease in consolidated assets was primarily attributable to a decrease in public funds held at the Bank.

  The provision for loan losses was $31,000 for the three months ended March 31, 2008, compared to $32,000 for the same quarter last year.  Non-performing assets increased 13.3% from $525,000 at December 31, 2007 to $595,000 at March 31, 2008.  Non-performing assets to total assets were 0.42% at March 31, 2008, compared to 0.36% at December 31, 2007.

  Investment and mortgage-backed securities available-for-sale decreased 1.6% from $31.4 million at December 31, 2007 to $30.9 million at March 31, 2008 as a result of the maturities of securities.

  Deposits decreased $754,000 from $104.0 million at December 31, 2007 to $103.2 million at March 31, 2008.  The 0.73% decrease was primarily attributable to a decrease in certificates of deposit.

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)

posted 21 April 2008

2007 Annual Report

(requires Adobe Acrobat)

posted 3 April 2007

2006 Annual Report

(requires Adobe Acrobat)

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