Security Bancorp, Inc. Announces First Quarter Earnings
MCMINNVILLE, Tenn., May 03, 2024 (GLOBE NEWSWIRE) -- Security Bancorp, Inc. (OTCBB “SCYT”) (“Company”) today announced consolidated results for the first quarter ended March 31, 2024. The Company is the holding company for Security Federal Savings Bank of McMinnville, Tennessee (“Bank”).Net income for the three months ended March 31, 2024 was $984,000, or $2.63 basic earnings per share, compared to $758,000, or $2.03 basic earnings per share, for the quarter ended March 31, 2023.
For the three months ended March 31, 2024, net interest income increased $181,000, or 7.6%, to $2.6 million from $2.4 million for the same period in 2023. Total interest income increased $1.0 million, or 30.0%, to $4.5 million for the three months ended March 31, 2024 from $3.5 million for the same period in 2023. Total interest expense increased $861,000 to $2.0 million for the three months ended March 31, 2024 from $1.1 million for the quarter ended March 31, 2023. The increase in interest expense was primarily due to an increase in the interest rates on interest-bearing deposits as well as an increase in balances in interest-bearing deposits. Net interest income, after provision for credit losses, for the three months ended March 31, 2024 increased $190,000 to $2.5 million, compared to $2.3 million for the same period in 2023.
The provision for credit losses was $51,000 for the three months ended March 31, 2024, a decrease of $9,000 compared to the three months ended March 31, 2023.
Non-interest income for the three months ended March 31, 2024 was $515,000 compared to $412,000 for the three months ended March 31, 2023, an increase of $103,000, or 25.0%.
Non-interest expense for the three months ended March 31, 2024 remained relatively unchanged at $1.7 million.
The Company’s consolidated assets increased $11.9 million, or 3.7%, to $336.3 million at March 31, 2024 from $324.4 million at December 31, 2023. The increase in consolidated assets was due to increases in interest-bearing deposits with banks, investments and loans. These increases were funded by an increase in customer deposits. Loans receivable, net, increased $3.3 million, or 1.4%, to $238.7 million at March 31, 2024 from $235.4 million at December 31, 2023.
Non-performing assets decreased $96,000, or 26.4%, to $267,000 at March 31, 2024 from $363,000 at December 31, 2023. The decline 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 $2.4 million at March 31, 2024 is adequate to absorb known and inherent risks in the loan portfolio at that date. The allowance for loan losses at March 31, 2024 represented 915.36% of non-performing assets compared to 664.19% at December 31, 2023.
Investments and mortgage-backed securities available-for-sale increased $4.4 million, or 9.7%, to $50.3 million from $45.8 million at December 31, 2023. The increase was due to purchases of investments funded by the increase in customer deposits.
Deposits increased $10.8 million, or 3.7%, to $300.6 million at March 31, 2024 from $289.8 million at December 31, 2023. The increase in customer deposits is due to an increase in commercial interest-bearing demand deposits as well as certificates of deposit.
Stockholders’ equity at March 31, 2024 was $32.1 million, or 9.5% of total assets, compared to $31.2 million, or 9.6% of total assets at December 31, 2023.
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.
Contact: Michael D. Griffith President & Chief Executive Officer (931) 473-4483
*SECURITY BANCORP, INC.*
*CONSOLIDATED FINANCIAL HIGHLIGHTS*
*(unaudited) (dollars in thousands)*
OPERATING DATA Three months ended
March 31, *2024* *2023*
Interest income $4,515 $3,473
Interest expense 1,964 1,103
Net interest income 2,551 2,370
Provision for credit losses 51 60
Net interest income after provision for credit losses 2,500 2,310
Non-interest income 515 412
Non-interest expense 1,691 1,703
Income before income tax expense 1,324 1,019
Income tax expense 340 261
Net income $984 $758
Net Income per share (basic) $2.63 $2.03
FINANCIAL CONDITION DATA At March 31, 2024 At December 31, 2023
Total assets $336,329 $324,440
Investments and mortgage-backed securities - available for sale 50,266 45,837
Loans receivable, net 238,715 235,411
Deposits 300,585 289,810
Federal Home Loan Bank Advances -0- -0-
Stockholders' equity 32,086 31,179
Non-performing assets 267 363
Non-performing assets to total assets 0.08% 0.11%
Allowance for loan losses 2,444 2,411
Allowance for loan losses to total loans receivable 1.01% 1.01%
Allowance for loan losses to non-performing assets 915.36 664.19