MCMINNVILLE, Tenn., May 10, 2023 (GLOBE NEWSWIRE) -- Security Bancorp, Inc. (OTCBB “SCYT”) (“Company”) today announced consolidated results for the first quarter ended March 31, 2023. The Company is the holding company for Security Federal Savings Bank of McMinnville, Tennessee (“Bank”).
Net income for the three months ended March 31, 2023 was $758,000, or $2.03 basic earnings per share, compared to $567,000, or $1.55 basic earnings per share, for the quarter ended March 31, 2022.
For the three months ended March 31, 2023, net interest income increased $426,000, or 21.9%, to $2.4 million from $1.9 million for the same period in 2022. Total interest income increased $1.3 million, or 62.6%, to $3.5 million for the three months ended March 31, 2023 from $2.1 million for the same period in 2022. Total interest expense increased $911,000 to $1.1 million for the three months ended March 31, 2023 from $192,000 for the quarter ended March 31, 2022. The increase in interest expense was primarily due to an increase in the interest rates on interest-bearing deposits. Net interest income, after provision for loan losses, for the three months ended March 31, 2023 increased $397,000 to $2.3 million, compared to $1.9 million for the same period in 2022.
The provision for loan losses was $60,000 for the three months ended March 31, 2023, an increase of $29,000 compared to the three months ended March 31, 2022.
Non-interest income for the three months ended March 31, 2023 was $412,000 compared to $392,000 for the three months ended March 31, 2022, an increase of $20,000, or 5.0%. The increase was primarily attributable to an increase in financial service fees.
Non-interest expense for the three months ended March 31, 2023 increased $147,000, or 9.4%, to $1.7 million compared to $1.6 million for the same period the prior year. The increase in non-interest expenses were due to increases in employee and occupancy expenses.
The Company’s consolidated assets increased $17.0 million, or 5.6%, to $318.8 million at March 31, 2023 from $301.8 million at December 31, 2022. The increase in consolidated assets was primarily due to an increase in interest-bearing deposits with banks funded by an increase in deposits. Loans receivable, net, increased $3.1 million, or 1.4%, to $220.6 million at March 31, 2023 from $217.5 million at December 31, 2022.
Non-performing assets decreased $148,000, or 47.7%, to $162,000 at March 31, 2023 from $310,000 at December 31, 2022. The decrease 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 $2.2 million at March 31, 2023 is adequate to absorb known and inherent risks in the loan portfolio at that date. The allowance for loan losses at March 31, 2023 represented 1,364.81% of non-performing assets compared to 687.22% at December 31, 2022.
Investments and mortgage-backed securities available-for-sale remained unchanged at $54.3 million at both March 31, 2023 and December 31, 2022.
Deposits increased $15.4 million, or 5.7%, to $287.1 million at March 31, 2023 from $271.6 million at December 31, 2022. 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, 2023 was $28.6 million, or 9.0% of total assets, compared to $27.2 million, or 9.0% of total assets at December 31, 2022.
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, | |||
| 2023 | 2022 | |||
| Interest income | $3,473 | $2,136 | ||
| Interest expense | 1,103 | 192 | ||
| Net interest income | 2,370 | 1,944 | ||
| Provision for loan losses | 60 | 31 | ||
| Net interest income after provision for loan losses | 2,310 | 1,913 | ||
| Non-interest income | 412 | 392 | ||
| Non-interest expense | 1,703 | 1,556 | ||
| Income before income tax expense | 1,019 | 749 | ||
| Income tax expense | 261 | 182 | ||
| Net income | $758 | $567 | ||
| Net Income per share (basic) | $2.03 | $1.55 | ||
| FINANCIAL CONDITION DATA | At March 31, 2023 | At December 31, 2022 | ||
| Total assets | $318,755 | $301,759 | ||
| Investments and mortgage-backed securities - available for sale | 54,272 | 54,307 | ||
| Loans receivable, net | 220,602 | 217,526 | ||
| Deposits | 287,067 | 271,648 | ||
| Repurchase agreements | -0- | -0- | ||
| Federal Home Loan Bank Advances | -0- | -0- | ||
| Stockholders' equity | 28,567 | 27,245 | ||
| Non-performing assets | 162 | 310 | ||
| Non-performing assets to total assets | 0.05% | 0.10% | ||
| Allowance for loan losses | 2,211 | 2,148 | ||
| Allowance for loan losses to total loans receivable | 0.99% | 0.98% | ||
| Allowance for loan losses to non-performing assets | 1,364.81 | 687.22 | ||
