Security Bancorp, Inc. Announces Second Quarter Earnings
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 ended Dec. 31, 2024.
Net income for the three months ended June 30, 2024 was $915,000 or $2.45 per share, compared to $819,000 or $2.24 per share, for the same quarter last year. For the six months ended June 30, 2024, the Company’s net income was $1.9 million or $5.08 per share, compared to $1.6 million or $4.32 per share, for the same period in 2023.
For the three months ended June 30, 2024, net interest income increased $298,000 or 12.1%, to $2.8 million from $2.5 million for the three months ended June 30, 2023. For the six months ended June 30, 2024, net interest income increased $479,000 or 9.9%, to $5.3 million from $4.8 million for the six months ended June 30, 2023. The increase in net interest income for the three months and six months ended June 30, 2024, 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 loan losses for the three months ended June 30, 2024 was $2.7 million, an increase of $310,000 or 12.9%, from $2.4 million for the same period in the previous year. For the six months ended June 30, 2024, net interest income after provision for loan losses increased $500,000 or 10.6%, to $5.2 million from $4.7 million for the same period in 2023. The primary reason for the increase during the three months and six months ended June 30, 2024 was an increase in net interest income.
Non-interest income for the three months ended June 30, 2024 decreased to $405,000 compared to $411,000 for the three months ended June 30, 2023. Non-interest income for the six months ended June 30, 2024 increased to $920,000 compared to $823,000 for the same period of the prior year.
Non-interest expense for the three months ended June 30, 2024 was $1.9 million, an increase of $172,000 or 10.1%, from $1.7 million for the same period of the prior year. For the six months ended June 30, 2024, non-interest expense was $3.6 million, an increase of $160,000 or 4.7%, compared to the same period in 2023. The increase for the three and six months ended June 30, 2024 was primarily due to an increase in data processing expenses attributed to Bank growth.
Consolidated assets of the Company were $346.6 million at June 30, 2024, compared to $324.4 million at Dec. 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 $17.3 million or 7.4%, to $252.8 million on June 30, 2024 from $235.4 million at Dec. 31, 2023. The increase in loans receivable was primarily attributable to an increase in mortgage and commercial real estate loans.
For the three months ended June 30, 2024 the provision for loan losses was $48,000 compared to $60,000 for the same period in 2023. The provision for loan losses was $99,000 for the six months ended June 30, 2024 compared to $120,000 in the comparable period in 2023, an increase of $21,000.
Non-performing assets decreased $112,000 or 30.9%, to $251,000 on June 30, 2024 from $363,000 at Dec. 31, 2023. The decrease is attributable to a decline 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 $2.5 million at June 30, 2024 was adequate to absorb known and inherent risks in the loan portfolio. At June 30, 2024, the ratio of the allowance for loan losses to non-performing assets was 992.43% compared to 664.19% at Dec. 31, 2023.
Investment and mortgage-backed securities available-for-sale on June 30, 2024 increased $1.5 million or 3.2%, to $47.3 million from $45.8 million at Dec. 31, 2023. The increase was due to investment purchases offset by investment maturities and paydowns. There were no investment and mortgage-backed securities held-to-maturity at June 30, 2024 and Dec. 31, 2023.
Deposits increased $7.7 million or 2.7%, to $297.5 million on June 30, 2024 from $289.8 million at Dec. 31, 2023. The increase was primarily attributable to increases in interest bearing demand deposit balances and certificates of deposit.
Stockholders’ equity increased $2.0 million or 6.5% to $33.2 million or 9.6% of total assets at June 30, 2024 compared to $31.2 million or 9.6%, of total assets, at Dec. 31, 2023.
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