MCMINNVILLE, Tenn., Nov. 04, 2024 (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 third quarter of its fiscal year ended December 31, 2024.
Net income for the three months ended September 30, 2024 was $1.0 million, or $2.77 per share, compared to $859,000, or $2.30 per share, for the same quarter last year. For the nine months ended September 30, 2024, the Company’s net income was $2.9 million or $7.84 per share, compared to $2.4 million, or $6.52 per share, for the same period in 2023.
For the three months ended September 30, 2024, net interest income increased $359,000, or 14.3%, to $2.9 million from $2.5 million for the three months ended September 30, 2023. For the nine months ended September 30, 2024, net interest income increased $838,000, or 11.4%, to $8.2 million from $7.3 million for the nine months ended September 30, 2023. The increase in net interest income for the three and nine months ended September 30, 2024 was primarily the result of increases in loan balances and interest income on loans that was partially offset by a smaller increase in interest expense. Net interest income after provision for loan losses for the three months ended September 30, 2024 was $2.8 million, an increase of $357,000, or 14.6%, from $2.5 million for the same period in the previous year. For the nine months ended September 30, 2024, net interest income after provision for loan losses increased $857,000, or 12.0%, to $8.0 million from $7.2 million for the same period in 2023. The primary reason for the increase during the three and nine months ended September 30, 2024 was an increase in net interest income.
Non-interest income for the three months ended September 30, 2024 increased to $635,000 compared to $410,000 for the three months ended September 30, 2023. Non-interest income for the nine months ended September 30, 2024 increased to $1.6 million compared to $1.2 million for the same period of the prior year. The increase in non-interest income was primarily attributed to incentive income related to the Bank’s card processing contracts.
Non-interest expense for the three months ended September 30, 2024 was $2.0 million, an increase of $341,000, or 20.0%, from $1.7 million for the same period of the prior year. For the nine months ended September 30, 2024, non-interest expense was $5.6 million, an increase of $501,000, or 9.8%, compared to the same period in 2023. The increase for the three and nine months ended September 30, 2024 was primarily due to an increase in consulting fee expense related to renegotiation of the Bank’s data processing contracts.
The Company’s consolidated assets were $346.6 million at September 30, 2024, compared to $324.4 million at December 31, 2023. The $22.1 million, or 6.8%, increase in assets was a result of an increase loans receivable, net. Loans receivable, net, increased $26.8 million, or 11.4%, to $262.2 million at September 30, 2024 from $235.4 million at December 31, 2023. The increase in loans receivable was primarily attributable to an increase in residential mortgage and commercial real estate loans.
For the three months ended September 30, 2024 the provision for loan losses was $65,000 compared to $63,000 for the same period in 2023. The provision for loan losses was $164,000 for the nine months ended September 30, 2024 compared to $183,000 in the comparable period in 2023, a decrease of $19,000.
Non-performing assets decreased $359,000, or 98.9%, to $4,000 at September 30, 2024 from $363,000 at December 31, 2023. The decrease is attributable to a decline in non-performing loans and the sale of $139,000 of 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 $2.6 million at September 30, 2024 was adequate to absorb known and inherent risks in the loan portfolio. At September 30, 2024, the ratio of the allowance for loan losses to non-performing assets was 63,750.0% compared to 664.19% at December 31, 2023.
Investment and mortgage-backed securities available-for-sale at September 30, 2024 increased $1.3 million, or 2.8%, to $47.1 million from $45.8 million at December 31, 2023. The increase was due to purchases of investment securities that was partially offset by maturities of investment securities and paydowns. There were no investment and mortgage-backed securities held-to-maturity at September 30, 2024 and December 31, 2023.
Deposits increased $15.1 million, or 5.2%, to $304.9 million at September 30, 2024 from $289.8 million at December 31, 2023. The increase was primarily attributable to increases in certificates of deposit.
Stockholders’ equity increased $3.7 million or 11.7% to $34.8 million, or 10.05% of total assets at September 30, 2024 compared to $31.2 million, or 9.6%, of total assets, at December 31, 2023.
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.
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 Sept 30,
Nine months ended Sept 30,
2023
2024
2023
2024
Interest income
$4,023
$5,085
$11,326
$14,459
Interest expense
1,509
2,212
3,978
6,273
Net interest income
2,514
2,873
7,348
8,186
Provision for loan losses
63
65
183
164
Net interest income after provision for loan losses
2,451
2,808
7,165
8,022
Non-interest income
410
635
1,233
1,555
Non-interest expense
1,705
2,046
5,110
5,611
Income before income tax expense
1,156
1,397
3,288
3,966
Income tax expense
297
359
850
1,027
Net income
$859
$1,038
$2,438
$2,939
Net Income per share (basic)
$2.30
$2.77
$6.52
$7.84
FINANCIAL CONDITION DATA
At Sept 30, 2024
At December 31, 2023
Total assets
$346,585
$324,440
Investments and mortgage- backed securities - available for sale
47,125
45,837
Loans receivable, net
262,195
235,411
Deposits
304,897
289,810
Federal Funds Sold
3,000
-0-
Federal Home Loan Bank Advances
-0-
-0-
Stockholders' equity
34,829
31,179
Non-performing assets
4
363
Non-performing assets to total assets
0.001%
0.11%
Allowance for loan losses
2,550
2,411
Allowance for loan losses to total loans receivable
0.96%
1.01%
Allowance for loan losses to non-performing assets
