OREANDA-NEWS. Security Bancorp, Inc. (OTCBB:SCYT) (“Company”) today announced consolidated earnings for the first quarter of its fiscal year ended December 31, 2016.  The Company is the holding company for Security Federal Savings Bank of McMinnville, Tennessee (“Bank”).

Net income for the three months ended March 31, 2016 was $322,000, or $0.83 per share, compared to $360,000, or $0.93 per share, for the same quarter last year.

For the three months ended March 31, 2016, net interest income increased by $73,000, or 5.4%, but remained at $1.4 million, unchanged from the comparable period in 2015.  Total interest income was $1.6 million for the three months ended March 31, 2016 compared to $1.5 million for the same period in the previous year.  The increase of $76,000, or 4.9%, was primarily attributable to an increase in interest income from loans and investment securities.  Total interest expense increased $3,000, or 1.6%, to $196,000 for the three months ended March 31, 2016 from $193,000 for the same period in 2015.  Net interest income after provision for loan losses for the three months ended March 31, 2016 increased by $139,000, or 11.1%, to $1.4 million from $1.3 million the same period the previous year.

Non-interest income for the three months ended March 31, 2016 was $406,000 compared to $498,000 for the same quarter of 2016, a decrease of $92,000, or 18.5%.  The decrease was attributable to a decline in financial department income and trust service fees.

Non-interest expense for the three months ended March 31, 2016 increased $66,000, or 5.3%, to $1.3 million, relatively unchanged from $1.2 million for the comparable period in 2015. 

Consolidated assets of the Company increased $1.5 million, or 0.8%, to $188.7 million at March 31, 2016 from $187.3 million at December 31, 2015.  Loans receivable, net, increased $657,000, or 0.5%, to $126.5 million at March 31, 2016 from $125.9 million at December 31, 2015.  The increase in consolidated assets was primarily attributable to the increase in loans.

The provision for loan losses was $31,000 for the three months ended March 31, 2016, a decrease of $66,000, or 68.0%, from $97,000 for the same quarter last year.

Non-performing assets decreased $604,000, or 30.2%, to $1.4 million at March 31, 2016 from $2.0 million at December 31, 2015.  The decrease is attributable to a decrease 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 $1.3 million at March 31, 2016 is adequate to absorb known and inherent risks in the loan portfolio at that date. The allowance for loan losses at March 31, 2016 represented 95.49% of non-performing assets compared to 64.96% at December 31, 2015.  

Investments and mortgage-backed securities available-for-sale decreased $427,000, or 1.1%, to $37.8 million at March 31, 2016 from $38.2 million at December 31, 2015.  The decrease is attributable to repayments and maturities of securities.

Deposits decreased $228,000, or 0.14%, to $162.4 million at March 31, 2016 from $162.7 million at December 31, 2015.  The decrease was primarily attributable to a decrease in non-interest bearing demand deposits.

Stockholders’ equity at March 31, 2016 was $18.9 million, or 10.0% of total assets, compared to $18.3 million, or 9.8% of total assets at December 31, 2015.

SECURITY BANCORP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(unaudited) (dollars in thousands)
OPERATING DATA Three months ended
 March 31,		  
    2016     2015      
Interest income $ 1,622   $ 1,546      
Interest expense   196     193      
Net interest income   1,426     1,353      
Provision for loan losses   31     97      
Net interest income after provision for loan losses   1,395     1,256      
Non-interest income   406     498      
Non-interest expense   1,303     1,237      
Income before income tax expense   498     517      
Income tax expense   176     157      
Net income $ 322   $ 360      
Net Income per share (basic) $ 0.83   $ 0.93      
         
FINANCIAL CONDITION DATA At March 31, 2016 At December 31, 2015
Total assets $ 188,717   $ 187,256  
Investments and mortgage backed securities - available for sale   37,754     38,181  
Loans receivable, net   126,531     125,874  
Deposits   162,425     162,653  
Repurchase agreements   5,557     4,792  
Stockholders' equity   18,891     18,344  
Non-performing assets   1,397     2,001  
Non-performing assets to total assets   0.74 %   1.07 %
Allowance for loan losses   1,334     1,300  
Allowance for loan losses to total loans receivable   1.04 %   1.02 %
Allowance for loan losses to non-performing assets   95.49 %   64.96