Security Bancorp's Impressive Financial Performance
Security Bancorp, Inc. (OTCBB: SCYT), the holding company for Security Federal Savings Bank, recently released its consolidated earnings report for the third quarter of the fiscal year. The Company reported a remarkable net income of $1.0 million for the quarter, or $2.77 per share, significantly up from $859,000, or $2.30 per share, in the same quarter of the previous year.
Quarterly Earnings Insights
For the nine months concluded, the net income reached $2.9 million, translating to $7.84 per share, a rise from $2.4 million or $6.52 per share for the same time frame last year. This growth can be attributed primarily to heightened loan balances and increased interest income, alongside an increase in non-interest income.
Net Interest Income Growth
Increased net interest income played a vital role in the Company's financial ascent. For the three-month period ending September 30, net interest income rose by $359,000 or 14.3%, reaching $2.9 million compared to the prior year's $2.5 million. During the nine-month period, net interest income accelerated by $838,000, or 11.4%, amounting to $8.2 million, driven largely by higher loan volumes and interest income.
Non-Interest Income and Expenses
Furthermore, non-interest income also saw considerable growth, with figures climbing to $635,000 for the three-month period, up from $410,000 the previous year. For the nine months, non-interest income reached $1.6 million compared to $1.2 million the year before, predominantly due to incentive income from card processing contracts.
Operational Expense Dynamics
However, non-interest expenses increased as well, showing a rise of $341,000, which equates to a 20% increase to $2.0 million compared to the previous year's $1.7 million for the three months ending September 30. The nine-month expenses also rose by 9.8%, totaling $5.6 million, reflecting increased consulting fees associated with renegotiating data processing contracts.
Assets and Loans Performance
As of September 30, the Company's total consolidated assets surged to $346.6 million, compared to $324.4 million at the prior fiscal year-end, showcasing a $22.1 million increase. This asset growth can be attributed to a boost in net loans receivable, which increased $26.8 million or 11.4% to $262.2 million.
Loan Loss Provisions
In terms of loan loss provisions, the Company reported a provision of $65,000 for the latest quarter, slightly up from $63,000 in the same quarter the prior year. The nine-month figure stands at $164,000, down from $183,000 in the previous year, indicating the Company's improved asset quality.
Reducing Non-Performing Assets
Encouragingly, non-performing assets dropped dramatically by $359,000, or virtually 99%, yielding only $4,000 in non-performing assets as of September 30, compared to $363,000 at year-end. This decline is largely due to a substantial decrease in non-performing loans.
Investment Securities and Deposits
Investment securities also presented favorable growth, increasing by $1.3 million to reach $47.1 million. Moreover, customer deposits jumped by $15.1 million, or 5.2%, reflecting the institution's robust standing in the community.
Stockholders' Equity Improvement
Finally, the stockholders' equity experienced a healthy increase by $3.7 million, up 11.7%, totaling $34.8 million. This reflects 10.05% of total assets as of September 30, which is an improvement over the previous year's 9.6%.
Contact Information
If you have questions or require further information about Security Bancorp, please reach out to: Michael D. Griffith
President & Chief Executive Officer
(931) 473-4483
Frequently Asked Questions
What were the earnings for Security Bancorp in Q3?
Security Bancorp reported a net income of $1.0 million or $2.77 per share in Q3, up from $859,000 or $2.30 per share from the same period last year.
How did net interest income change?
Net interest income increased by $359,000 or 14.3% to $2.9 million compared to the prior year’s third quarter.
What contributed to the growth in non-interest income?
The growth in non-interest income mainly stemmed from incentive income related to card processing contracts.
What equity growth did Security Bancorp experience?
The stockholders' equity rose by $3.7 million or 11.7%, totaling $34.8 million as of September 30.
How did the asset and loan figures change?
Total assets increased to $346.6 million, while loans receivable, net rose to $262.2 million, a growth of 11.4%.
