$SCYB Security Bancorp, Inc. Announces Second Quarter Earnings
Press Release | 08/09/2021
MCMINNVILLE, Tenn., Aug. 09, 2021 (GLOBE NEWSWIRE) -- Security Bancorp, Inc. (“Company”) (OTCBB: “SCYT”), the holding company for Security Federal Savings Bank of McMinnville, Tennessee, today announced its consolidated earnings for the second quarter of its fiscal year ended December 31, 2021.
Net income for the three months ended June 30, 2021 was $627,000, or $1.72 per share, compared to $516,000, or $1.36 per share, for the same quarter last year. For the six months ended June 30, 2021, the Company’s net income was $1.3 million or $3.56 per share, compared to $1.1 million, or $2.89 per share, for the same period in 2020.
For the three months ended June 30, 2021, net interest income remained relatively unchanged at $1.8 million compared to the same period in 2020. For the six months ended June 30, 2021, net interest income decreased $99,000, or 2.7%, to $3.6 million from $3.7 million for the six months ended June 30, 2020. The decrease in net interest income for the six months ended June 30, 2021 was primarily the result of a decrease in loan and investment interest rates. Net interest income after provision for loan losses for the three months ended June 30, 2021 was $1.8 million, an increase of $28,000, or 1.6%, from the same period in the previous year. For the six months ended June 30, 2021, net interest income after provision for loan losses decreased $139,000, or 3.8%, to $3.5 million from $3.6 million for the same period in 2020. The primary reason for the decrease during the six months ended June 30, 2021 was a decrease in net interest income as well as an increase in the provision for loan losses offset by a decrease in interest expense.
Non-interest income for the three months ended June 30, 2021 was $608,000 compared to $463,000 for the same quarter of 2020, an increase of $145,000. Non-interest income for the six months ended June 30, 2021 was $1.3 million compared to $875,000 for the same period the prior year, an increase of $420,000. The increase during the three and six months ended June 30, 2021 was primarily attributable to an increase in the gains on the sale of loans due to the volume of mortgage activity as well as an increase in financial service fees.
Non-interest expense for the three months ended June 30, 2021 was $1.5 million and was relatively consistent with the same period in 2020. For the six months ended June 30, 2021, non-interest expense was $3.1 million and also relatively consistent with the same period in 2020.
Consolidated assets of the Company were $284.3 million at June 30, 2021, compared to $260.8 million at December 31, 2020. The $23.5 million, or 9.0%, increase in assets was a result of an increase in cash and due from banks, interest-bearing deposits, investments and loans receivable. Loans receivable, net, increased $4.6 million, or 2.6%, to $179.5 million at June 30, 2021 from $174.9 million at December 31, 2020. The increase in loans receivable was attributable to an increase in commercial real estate loans.
For the three months ended June 30, 2021 the provision for loan losses was $60,000 compared to $50,000 for the same period in 2020. The provision for loan losses was $120,000 for the six months ended June 30, 2021 compared to $80,000 in the comparable period in 2020, an increase of $40,000.
Non-performing assets increased $80,000, or 27.2%, to $374,000 at June 30, 2021 from $294,000 at December 31, 2020. The increase is attributable to an increase 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 $1.9 million at June 30, 2021 was adequate to absorb known and inherent risks in the loan portfolio at that date. At June 30, 2021, the allowance for loan losses to non-performing assets was 511.76% compared to 609.46% at December 31, 2020.
Investment and mortgage-backed securities available-for-sale increased $4.4 million, or 11.7%, to $41.6 million at June 30, 2021, compared to $37.2 million at December 31, 2020. The increase was due to investment purchases funded by the increase in customer deposit balances. There were no investment and mortgage-backed securities held-to-maturity at June 30, 2021 and December 31, 2020.
Deposits increased $30.1 million, or 13.5%, to $252.4 million at June 30, 2021 from $222.4 million at December 31, 2020. The increase was primarily attributable to increases in consumer and commercial checking accounts, savings, and certificate of deposits balances. The balance in repurchase agreements decreased from $7.7 million at June 30, 2020 to a zero balance at June 30, 2021 due to the transfer of these balances to commercial checking accounts.
Stockholders’ equity increased $1.1 million or 4.3%, to $27.4 million, or 9.6% of total assets at June 30, 2021 compared to $26.3 million, or 10.1%, of total assets, at December 31, 2020.
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: Joe Pugh
President & Chief Executive Officer
(931) 473-4483
SECURITY BANCORP, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(unaudited) (dollars in thousands)
OPERATING DATA Three months ended
June 30, Six months ended
June 30,
2020 2021 2020 2021
Interest income $2,232 $2,112 $4,700 $4,219
Interest expense 450 292 972 590
Net interest income 1,782 1,820 3,728 3,629
Provision for loan losses 50 60 80 120
Net interest income after provision for loan losses 1,732 1,760 3,648 3,509
Non-interest income 463 608 875 1,295
Non-interest expense 1,510 1,524 3,068 3,062
Income before income tax expense 685 844 1,455 1,742
Income tax expense 169 217 359 443
Net income $516 $627 $1,096 $1,299
Net Income per share (basic) $1.36 $1.72 $2.89 $3.56
FINANCIAL CONDITION DATA At June 30, 2021 At December 31, 2020
Total assets $284,333 $260,827
Investments and mortgage backed securities - available for sale 41,576 37,216
Loans receivable, net 179,516 174,913
Deposits 252,435 222,352
Repurchase agreements -0- 7,719
Federal Home Loan Bank Advances 2,000 2,000
Stockholders' equity 27,428 26,298
Non-performing assets 374 294
Non-performing assets to total assets 0.13% 0.11%
Allowance for loan losses $1,914 $1,793
Allowance for loan losses to total loans receivable 1.05% 1.02%
Allowance for loan losses to non-performing assets 511.76% 609.46%
