MCMINNVILLE, Tennessee, November 08, 2021 (GLOBE NEWSWIRE) – Security Bancorp, Inc. (“Company”) (OTCBB: “SCYT”), the holding company of Security Federal Savings Bank of McMinnville, Tennessee, today announced its consolidated results for the third quarter of its fiscal year ended December 31, 2021.

Net earnings for the quarter ended September 30, 2021 were $ 671,000, or $ 1.79 per share, compared to $ 561,000, or $ 1.50 per share, for the same quarter last year. For the nine months ended September 30, 2021, the Company’s net income was $ 2.0 million or $ 5.26 per share, compared to $ 1.7 million, or $ 4.38 per share. share, for the same period in 2020.

For the quarter ended September 30, 2021, net interest income increased slightly to $ 1.9 million, compared to $ 1.8 million for the same period in 2020. The increase in income Net interest expense for the quarter ended September 30, 2021 is attributable to lower interest expense during the quarter due to lower interest rates. For the nine months ended September 30, 2021, net interest income, compared to the same quarter in 2020, was unchanged at $ 5.5 million. Net interest income after allowance for loan losses for the quarter ended September 30, 2021 was $ 1.8 million, an increase of $ 83,000, or 4.8%, from the same period of the previous fiscal year. For the nine-month period ended September 30, 2021, net interest income after allowance for loan losses decreased by $ 56,000, or 1.0%, to $ 5.3 million, from $ 5.4 million for the same period in 2020. The primary reason for the increase in the quarter ended September As at June 30, 2021, a decrease in interest income was offset by a decrease in interest expense.

Non-interest income for the quarter ended September 30, 2021 was $ 693,000, compared to $ 565,000 for the same quarter of 2020, an increase of $ 128,000. Non-interest income for the nine-month period ended September 30, 2021 was $ 2.0 million, compared to $ 1.4 million for the same period last year, an increase of $ 548,000. The increase in the three and nine months ended September 30, 2021 is primarily due to an increase in gains on loan sales due to the increased volume of mortgage origination as well as an increase in loan fees. financial services.

Non-interest expense for the quarter ended September 30, 2021 was $ 1.6 million for the quarter ended September 30, 2021, compared to $ 1.5 million for the same period in 2020. For For the nine months ended September 30, 2021, non-interest expense was $ 4.7 million, an increase of $ 49,000 over the same period in 2020. The increase in non-interest expense interest is due to an increase in data processing expenses and FDIC insurance premiums.

The Company’s consolidated assets stood at $ 289.3 million as at September 30, 2021, compared to $ 260.8 million as at December 31, 2020. The increase of $ 28.5 million, or 10.9 %, of assets is the result of an increase in interest-bearing deposits, investments and loans receivable. Loans receivable, net, increased $ 5.5 million, or 3.1%, to $ 180.4 million as at September 30, 2021, compared to $ 174.9 million as at December 31 2020. The increase in loans receivable is due to an increase in commercial real estate loans.

For the quarter ended September 30, 2021, the allowance for loan losses was $ 60,000, unchanged from the same period in 2020. The allowance for loan losses was $ 180,000 for the nine months ended September 30 2021, compared to $ 140,000 for the comparable period in 2020, an increase of $ 40,000.

Non-performing assets decreased by $ 61,000, or 20.7%, to $ 233,000 as at September 30, 2021, compared to $ 294,000 as at December 31, 2020. The decrease is due to a decrease in non-performing loans. productive. Based on its analysis of delinquent loans, non-performing loans and classified loans, management estimates that the Company’s allowance for loan losses of $ 2.0 million as at September 30, 2021 was sufficient to absorb the risks. known and inherent in the loan portfolio at that date. As at September 30, 2021, the allowance for loan losses on non-performing assets was 848.07% compared to 609.46% as at December 31, 2020.

Investments and mortgage-backed securities available for sale increased $ 10.0 million, or 27.0%, to $ 47.3 million as of September 30, 2021, from $ 37. $ 2 million as at December 31, 2020. This increase is attributable to investment purchases funded by increased customer deposit balances. There were no investments and no mortgage backed securities held to maturity on September 30, 2021 and December 31, 2020.

Deposits increased by $ 34.8 million, or 15.7%, to reach $ 257.2 million as at September 30, 2021, from $ 222.4 million as at December 31, 2020. This increase is mainly attributable to the ” increased consumer and business checking account balances, savings and certificate of deposit balances. The balance of repurchase agreements fell from $ 7.7 million as at December 31, 2020 to a zero balance as at September 30, 2021 due to the transfer of these balances to commercial current accounts.

Equity increased $ 1.3 million, or 5.0%, to $ 27.6 million, or 9.5% of total assets as at September 30, 2021, from $ 26.3 million, or 10.1%, of the total assets as at December 31, 2020.

Safe Harbor Declaration

Certain matters in this press 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 other things, expectations of the business environment in which the Company operates and projections of future performance. These forward-looking statements are based on management’s current expectations and may, therefore, involve risks and uncertainties. The actual results, performance or achievements of the Company may differ materially from those suggested, expressed or implied by forward-looking statements due to a wide range of factors, including, but not limited to, the business environment. general, interest rates, competitive conditions, regulatory changes and other risks.

Contact:
Joe H. Pugh
President and CEO
(931) 473-4483