Security Bancorp, Inc. Announces Third Quarter Earnings
MCMINNVILLE, Tenn., Nov. 15, 2012 (GLOBE NEWSWIRE) -- Security Bancorp, Inc. ("Company") (OTCBB:SCYT) today announced consolidated earnings for the third quarter of its fiscal year ended December 31, 2012. The Company is the bank holding company for Security Federal Savings Bank of McMinnville, Tennessee ("Bank").
Net income for the three months ended September 30, 2012 was $303,000, or $0.79 per share, compared to $298,000, or $0.78 per share, for the same quarter last year. For the nine months ended September 30, 2012, the Company's net income was $866,000, or $2.24 per share, compared to $789,000, or $2.05 per share, for the same period in 2011.
Net interest income after provision for loan losses for the three months ended September 30, 2012 decreased to $1.1 million, compared to $1.2 million the same period in 2011. For the nine months ended September 30, 2012, net interest income after provision decreased 2.4% to $3.3 million from $3.4 million for the comparable period in 2011. The decrease in net interest income was primarily attributable to the decrease in interest income on loans as a result of the continued decline in interest rates and decrease in loans receivable.
Non-interest income for the three months ended September 30, 2012 was $626,000 compared to $563,000 for the same quarter of 2011, an increase of $63,000, or 11.2%. For the nine months ended September 30, 2012, non-interest income increased $223,000, or 13.7%, to $1.8 million from $1.6 million for the comparable period in 2011. The increases during the quarter and the nine months ended September 30, 2012 were primarily attributable to increases in deposit fee income and gains on sale of loans due to the increased volume of mortgage activity.
Non-interest expense for the three months ended September 30, 2012 increased slightly by $38,000, or 3.1% to $1.3 million compared to $1.2 million in the same period of 2011. For the nine months ended September 30, 2012, non-interest expense remained relatively unchanged at $3.7 million, reflecting an increase of $21,000, compared to the same period in 2011. The increase in non-interest expense during three months ended September 30, 2012 was the result of slight increases in data processing costs, trust service expenses and other operating expenses.
Consolidated assets of the Company were $159.5 million at September 30, 2012, compared to $157.9 million at December 31, 2011. The $1.7 million, or 1.1%, increase in assets is attributable to an increase in cash balances which resulted from deposit increases during the nine months ended September 30, 2012. Loans receivable, net, decreased from $117.5 million at December 31, 2011 to $115.2 million at September 30, 2012. The $2.2 million, or 1.9%, decrease in loans receivable was attributable to a decrease primarily in commercial lines of credit.
The provision for loan losses decreased slightly from $73,000 for the three months ended September 30, 2011 to $65,000 for the same period of 2012. The provision for loan losses increased $58,000 to $256,000 for the nine months ended September 30, 2012 from $198,000 for the same period in 2011. The increase in the provision for the nine months ended September 30, 2012 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 decreased by $466,000, or 23.9%, to $1.5 million at September 30, 2012 from $1.9 million at December 31, 2011. Based on its analysis of delinquent loans, nonperforming loans and classified loans, management believes that the Company's allowance for loan losses of $1.2 million at September 30, 2012 was adequate to absorb known and inherent risks in the loan portfolio at that date. At September 30, 2012 the allowance for loan losses to non-performing assets was 82.0% compared to 79.0% at December 31, 2011.
Investment and mortgage-backed securities available-for-sale decreased $2.5 million, or 10.1%, to $22.6 million at September 30, 2012, compared to $25.1 million at December 31, 2011. The decrease in investment and mortgage-backed securities available-for-sale is a result of an increase in cash balances at September 30, 2012 due to investment securities that were called prior to maturity.
Deposits increased $5.5 million, or 4.0%, to $141.2 million at September 30, 2012 from $135.7 million at December 31, 2011. The increase was primarily attributable to an increase in consumer and commercial checking accounts as well as savings accounts.
Stockholders' equity increased $488,000 or 3.2% to $15.7 million at September 30, 2012 compared to $15.3 million at December 31, 2011. At September 30, 2012, stockholders' equity was 9.9% of total assets compared to 9.7% of total assets at December 31, 2011.
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
Nine months ended
|Provision for loan losses||65||73||256||198|
|Net interest income after provision for loan losses||1,124||1,158||3,295||3,377|
|Income before income tax expense||497||506||1,436||1,316|
|Income tax expense||194||208||570||527|
|FINANCIAL CONDITION DATA||At September 30, 2012||At December 31, 2011|
|Investment and mortgage backed securities available-for-sale||22,564||25,099|
|Investment and mortgage backed securities held-to-maturity||-0-||-0-|
|Loans receivable, net||115,232||117,477|
|Non-performing assets to total assets||0.93%||1.30%|
|Allowance for loan losses||1,216||1,538|
|Allowance for loan losses to total loans receivable||1.04%||1.30%|
|Allowance for loan losses to non-performing assets||82.03%||78.95%|
CONTACT: Joe Pugh President & Chief Executive Officer (931) 473-4483