MCMINNVILLE, Tenn., May 09, 2022 (GLOBE NEWSWIRE) — Security Bancorp, Inc. (OTCBB “SCYT”) (“Company”) today announced consolidated results for the first quarter ended March 31, 2022. The Company is the holding company for Security Federal Savings Bank of McMinnville, Tennessee (“Bank”).
Net income for the three months ended March 31, 2022 was $567,000, or $1.55 basic earnings per share, compared to $671,000, or $1.84 basic earnings per share, for the quarter ended March 31, 2021.
For the three months ended March 31, 2022, net interest income increased $135,000, or 7.5%, to $1.9 million from $1.8 million for the same period in 2021. Total interest income was unchanged at $2.1 million for the three months ended March 31, 2022 and 2021. Total interest expense decreased $106,000, or 35.6%, to $192,000 for the three months ended March 31, 2022, from $298,000 for the quarter ended March 31, 2021. The decrease in interest expense was primarily due to a reduction in the interest rates on interest-bearing deposits. Net interest income, after provision for loan losses, for the three months ended March 31, 2022 increased $164,000 to $1.9 million, compared to$1.7 million for the same period in 2021.
The provision for loan losses was $31,000 for the three months ended March 31, 2022, a decrease of $29,000 when compared to the three months ended March 31, 2021.
Non-interest income for the three months ended March 31, 2022 was $392,000 compared to $687,000 for the three months ended March 31, 2021, a decrease of $295,000, or 42.9%. The decrease was primarily attributable to a decrease in gains on sale of loans due to a decrease in the volume of mortgage activity.
Non-interest expense for the three months ended March 31, 2022 increased $17,000 to $1.6 million compared to $1.5 million for the same period the prior year.
The Company’s consolidated assets decreased $1.2 million, or 0.40%, to $294.6 million at March 31, 2022 from $295.7 million at December 31, 2021. The decrease in consolidated assets was primarily due to a decrease in interest-bearing deposits with banks offset by an increase in loans receivable. Loans receivable, net, increased $9.2 million, or 5.1%, to $190.4 million at March 31, 2022 from $181.2 million at December 31, 2021.
Non-performing assets decreased $20,000, or 6.6%, to $281,000 at March 31, 2022 from $301,000 at December 31, 2021. 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 $2.1 million at March 31, 2022 is adequate to absorb known and inherent risks in the loan portfolio at that date. The allowance for loan losses at March 31, 2022 represented 736.30% of non-performing assets compared to 677.41% at December 31, 2021.
Investments and mortgage-backed securities available-for-sale decreased slightly by $742,000 or 1.3%, to $58.1 million at March 31, 2022 from $58.8 million at December 31, 2021. The decrease was primarily due to investment maturities and paydowns.
Deposits remained relatively the same at $265.1 million for the period ended March 31, 2022.
Stockholders’ equity at March 31, 2022 was $26.9 million, or 9.1% of total assets, compared to $28.0 million, or 9.5% of total assets at December 31, 2021.
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 resulting from the COVID-19 and other risks.
Contact:
Joe Pugh
President & Chief Executive Officer
(931) 473-4483
| SECURITY BANCORP, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited) (dollars in thousands) |
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| OPERATING DATA | Three months ended March 31, |
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| 2022 | 2021 | |||
| Interest income | $2,136 | $2,107 | ||
| Interest expense | 192 | 298 | ||
| Net interest income | 1,944 | 1,809 | ||
| Provision for loan losses | 31 | 60 | ||
| Net interest income after provision for loan losses | 1,913 | 1,749 | ||
| Non-interest income | 392 | 687 | ||
| Non-interest expense | 1,556 | 1,539 | ||
| Income before income tax expense | 749 | 897 | ||
| Income tax expense | 182 | 226 | ||
| Net income | $567 | $671 | ||
| Net Income per share (basic) | $1.55 | $1.84 | ||
| FINANCIAL CONDITION DATA | At March 31, 2022 | At December 31, 2021 | ||
| Total assets | $294,571 | $295,745 | ||
| Investments and mortgage-backed securities – available for sale | 58,074 | 58,816 | ||
| Loans receivable, net | 190,432 | 181,242 | ||
| Deposits | 265,051 | 265,189 | ||
| Repurchase agreements | -0- | -0- | ||
| Federal Home Loan Bank Advances | -0- | -0- | ||
| Stockholders’ equity | 26,875 | 28,042 | ||
| Non-performing assets | 281 | 301 | ||
| Non-performing assets to total assets | 0.09% | 0.11% | ||
| Allowance for loan losses | 2,069 | 2,039 | ||
| Allowance for loan losses to total loans receivable | 1.07% | 1.11% | ||
| Allowance for loan losses to non-performing assets | 736.30 | 677.41 | ||
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