Security Bancorp, Inc. Announces Second Quarter Earnings

MCMINNVILLE, Tenn., Aug. 07, 2025 (GLOBE NEWSWIRE) -- Security Bancorp, Inc. (“Company”) (OTCBB: “SCYT”), the holding company for Security Federal Savings Bank of McMinnville, Tennessee (“Bank”), today announced its consolidated earnings for the second quarter of its fiscal year ending December 31, 2025.

Net income for the three months ended June 30, 2025 was $1.2 million, or $3.30 per share, compared to $915,000, or $2.45 per share, for the same quarter last year. For the six months ended June 30, 2025, the Company’s net income was $2.3 million or $6.03 per share, compared to $1.9 million, or $5.08 per share, for the same period in 2024.

For the three months ended June 30, 2025, net interest income increased $421,000, or 15.2%, to $3.2 million from $2.8 million for the three months ended June 30, 2024. For the six months ended June 30, 2025, net interest income increased $756,000, or 14.2%, to $6.1 million from $5.3 million for the six months ended June 30, 2024. The increase in net interest income for the three months and six months ended June 30, 2025, was primarily the result of an increase in loans and an increase in interest rates on loans that was partially offset by a smaller increase in interest expense. Net interest income after provision for credit losses for the three months ended June 30, 2025 was $3.2 million, an increase of $469,000, or 17.3%, from $2.7 million for the same period in the previous year. For the six months ended June 30, 2025, net interest income after provision for credit losses increased $848,000, or 16.3%, to $6.1 million from $5.2 million for the same period in 2024.

Non-interest income for the three months ended June 30, 2025 increased to $481,000 compared to $405,000 for the three months ended June 30, 2024. Non-interest income for the six months ended June 30, 2025 increased to $967,000 compared to $920,000 for the same period of the prior year.

Non-interest expense for the three months ended June 30, 2025 was $2.0 million, an increase of $131,000, or 7.0%, from $1.9 million for the same period of the prior year. For the six months ended June 30, 2025, non-interest expense was $4.0 million, an increase of $454,000, or 12.7%, compared to the same period in 2024. The increase for the three and six months ended June 30, 2025 was primarily due to an increase in professional and consulting fees related to the renegotiation of data processing contracts.

The Company’s consolidated total assets increased by $24.4 million, or 6.8% to $384.1 million at June 30, 2025 from $359.7 million at December 31, 2024. The increase in assets was due to increases in interest-bearing deposits with banks, Federal funds sold and loans. The asset increases were funded by an increase in customer deposits. Loans receivable, net, increased $18.0 million, or 6.8%, to $282.1 million at June 30, 2025 from $264.1 million at December 31, 2024. The increase in loans receivable was primarily attributable to an increase in one to four family mortgage and commercial real estate loans.

For the three months ended June 30, 2025 there was no provision for credit losses, compared to $48,000 for the same period in 2024. The provision for credit losses was $7,000 for the six months ended June 30, 2025 compared to $99,000 in the comparable period in 2024, a decrease of $92,000.

Non-performing assets increased $35,000, or 25%, to $174,000 at June 30, 2025 from $139,000 at December 31, 2024. The increase is attributable to a slight increase in non-performing loans. Based on its analysis of delinquent loans, non-performing loans and classified loans, management believes that the Company’s allowance for loan losses of $2.8 million at June 30, 2025 was adequate to absorb known and inherent risks in the loan portfolio. At June 30, 2025, the ratio of the allowance for loan losses to non-performing assets was 1,597.70% compared to 2,001.69% at December 31, 2024.

Investment and mortgage-backed securities available-for-sale at June 30, 2025 decreased $7.2 million, or 16.0%, to $37.9 million from $45.0 million at December 31, 2024. The decrease was due to the maturity and paydowns of investments. There were no investment and mortgage-backed securities held-to-maturity at June 30, 2025 or December 31, 2024.

Deposits increased $21.2 million, or 6.6%, to $341.7 million at June 30, 2025 from $320.5 million at December 31, 2024. The increase was primarily attributable to increases in interest bearing demand deposit balances, savings account balances and certificates of deposit.

Stockholders’ equity increased $3.1 million or 8.7% to $38.7 million, or 10.1% of total assets at June 30, 2025 compared to $35.6 million, or 9.9%, of total assets, at December 31, 2024.

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.