MCMINNVILLE, Tenn., May 6, 2014 (GLOBE NEWSWIRE) -- Security Bancorp, Inc. (OTCBB: SCYT ) ("Company") today announced consolidated earnings for the first quarter of its fiscal year ended December 31, 2014. The Company is the holding company for Security Federal Savings Bank of McMinnville, Tennessee ("Bank").
Net income for the three months ended March 31, 2014 was $293,000, or $0.76 per share, compared to $225,000, or $0.58 per share, for the same quarter last year.
For the three months ended March 31, 2014, net interest income increased by $94,000, or 7.9%, to $1.3 million from $1.2 million for the same period the previous year. Total interest income increased by $22,000, or 1.5%, during the three months ended March 31, 2014, but remained at $1.5 million, unchanged from the comparable period in 2013. The increase in total interest income for the three months ended March 31, 2014 was primarily attributable to loan growth during the quarter. Total interest expense decreased $72,000, or 25.7%, to $208,000 for the three months ended March 31, 2014 from $280,000 for the same period in 2013. The decrease in interest expense is due to the repricing of deposits. Net interest income after provision for loan losses for the three months ended March 31, 2014 increased by $91,000, or 8.3%, to $1.2 million from $1.1 million the same period the previous year.
Non-interest income for the three months ended March 31, 2014 was $515,000 compared to $545,000 for the same quarter of 2013, a decrease of $30,000, or 5.5%. The decrease was attributable to a decline in the gains on sale of loans due to a lower volume of residential lending.
Non-interest expense for the three months ended March 31, 2014 decreased $36,000, or 2.8%, to $1.2 million from $1.3 million for the same period in 2013.
Consolidated assets of the Company increased $13.5 million, or 8.5%, to $172.6 million at March 31, 2014 from $159.1 million at December 31, 2013. Loans receivable, net, increased $6.4 million, or 5.3%, to $126.9 million at March 31, 2014 from $120.4 million at December 31, 2013. The increase in consolidated assets was primarily attributable to an increase in loans on commercial real estate.
The provision for loan losses was $93,000 for the three months ended March 31, 2014, an increase of $3,000, or 3.3%, from $90,000 for the same quarter last year.
Non-performing assets decreased $379,000, or 24.9%, to $1.1 million at March 31, 2014 from $1.5 million at December 31, 2013. The decrease is attributable to the sales of 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 $1.3 million at March 31, 2014 is adequate to absorb known and inherent risks in the loan portfolio at that date. At March 31, 2014 the allowance for loan losses to non-performing assets was 112.45% compared to 79.34% at December 31, 2013.
Investments and mortgage-backed securities available-for-sale increased $218,000, or 0.99%, to $22.3 million at March 31, 2014 from $22.1 million at December 31, 2013. The increase is a result of the purchase of securities.
Deposits increased $4.2 million, or 3.0%, to $143.0 million at March 31, 2014 from $138.8 million at December 31, 2013. The increase was primarily attributable to an increase in savings accounts and NOW accounts.
Stockholders' equity at March 31, 2014 was $16.9 million, or 9.8% of total assets, compared to $16.6 million, or 10.4% of total assets at December 31, 2013.
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) | ||||
| Three months ended | ||||
| OPERATING DATA | March 31, | |||
| 2014 | 2013 | |||
| Interest income | $1,490 | $1,468 | ||
| Interest expense | 208 | 280 | ||
| Net interest income | 1,282 | 1,188 | ||
| Provision for loan losses | 93 | 90 | ||
| Net interest income after provision for loan losses | 1,189 | 1,098 | ||
| Non-interest income | 515 | 545 | ||
| Non-interest expense | 1,243 | 1,279 | ||
| Income before income tax expense | 461 | 364 | ||
| Income tax expense | 168 | 139 | ||
| Net income | $293 | $225 | ||
| Net Income per share | $0.76 | $0.58 | ||
| FINANCIAL CONDITION DATA | At March 31, 2014 | At December 31, 2013 | ||
| Total assets | $172,606 | $159,107 | ||
| Investments and mortgage backed securities - available for sale | 22,291 | 22,073 | ||
| Investments and mortgage backed securities - held to maturity | -0- | -0- | ||
| Loans receivable, net | 126,860 | 120,448 | ||
| Deposits | 142,993 | 138,798 | ||
| Repurchase agreements | 11,519 | 2,588 | ||
| Stockholders' equity | 16,914 | 16,579 | ||
| Non-performing assets | 1,141 | 1,520 | ||
| Non-performing assets to total assets | 0.66% | 0.96% | ||
| Allowance for loan losses | 1,283 | 1,206 | ||
| Allowance for loan losses to total loans receivable | 1.0% | 0.99% | ||
| Allowance for loan losses to non-performing assets | 112.45% | 79.34% | ||
Joe Pugh President & Chief Executive Officer (931) 473-4483
