Security Bancorp, Inc. Announces Second Quarter Earnings

Rhea-AI Summary

Security Bancorp, Inc. (OTCBB: SCYT) reported strong financial results for Q2 2024. Net income rose to $915,000 ($2.45 per share), up from $819,000 ($2.24 per share) in Q2 2023. For the first half of 2024, net income reached $1.9 million ($5.08 per share), compared to $1.6 million ($4.32 per share) in H1 2023.

Key highlights include:

• Net interest income increased 12.1% to $2.8 million in Q2 2024
• Loans receivable, net, grew 7.4% to $252.8 million
• Deposits rose 2.7% to $297.5 million
• Non-performing assets decreased 30.9% to $251,000
• Stockholders' equity increased 6.5% to $33.2 million

The company's growth was primarily driven by increased loans and higher interest rates, partially offset by rising interest expenses.

Positive

• Net income increased 11.7% year-over-year to $915,000 in Q2 2024
• Net interest income grew 12.1% to $2.8 million in Q2 2024
• Loans receivable, net, increased 7.4% to $252.8 million
• Deposits rose 2.7% to $297.5 million
• Non-performing assets decreased 30.9% to $251,000
• Stockholders' equity grew 6.5% to $33.2 million

Negative

• Non-interest income for Q2 2024 decreased slightly to $405,000 from $411,000 in Q2 2023
• Non-interest expense increased 10.1% to $1.9 million in Q2 2024

MCMINNVILLE, Tenn., Aug. 07, 2024 (GLOBE NEWSWIRE) -- 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 December 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 December 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 at June 30, 2024 from $235.4 million at December 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 at June 30, 2024 from $363,000 at December 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 December 31, 2023.

Investment and mortgage-backed securities available-for-sale at June 30, 2024 increased $1.5 million, or 3.2%, to $47.3 million from $45.8 million at December 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 December 31, 2023.

Deposits increased $7.7 million, or 2.7%, to $297.5 million at June 30, 2024 from $289.8 million at December 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 December 31, 2023.

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:	Michael D. Griffith
	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,
	2023	2024	2023	2024
Interest income	$3,830	$4,859	$7,303	$9,374
Interest expense	1,366	2,097	2,469	4,061
Net interest income	2,464	2,762	4,834	5,313
Provision for loan losses	60	48	120	99
Net interest income after provision for loan losses	2,404	2,714	4,714	5,214
Non-interest income	411	405	823	920
Non-interest expense	1,704	1,876	3,406	3,566
Income before income tax expense	1,111	1,243	2,131	2,568
Income tax expense	292	328	553	668
Net income	$819	$915	$1,578	$1,900
Net Income per share (basic)	$2.24	$2.45	$4.32	$5.08
FINANCIAL CONDITION DATA	At June 30, 2024		At December 31, 2023
Total assets	$346,582		$324,440
Investments and mortgage- backed securities - available for sale	47,318		45,837
Loans receivable, net	252,757		235,411
Deposits	297,520		289,810
Federal Home Loan Bank Advances	12,000		-0-
Stockholders' equity	33,201		31,179
Non-performing assets	251		363
Non-performing assets to total assets	0.07%		0.11%
Allowance for loan losses	2,491		2,411
Allowance for loan losses to total loans receivable	0.97%		1.01%
Allowance for loan losses to non-performing assets	992.43		664.19

FAQ

What was Security Bancorp's (SCYT) net income for Q2 2024?

Security Bancorp (SCYT) reported a net income of $915,000, or $2.45 per share, for Q2 2024.

How much did Security Bancorp's (SCYT) loans receivable grow in H1 2024?

Security Bancorp's (SCYT) loans receivable, net, increased by $17.3 million, or 7.4%, to $252.8 million as of June 30, 2024.

What was the change in Security Bancorp's (SCYT) non-performing assets as of June 30, 2024?

Security Bancorp's (SCYT) non-performing assets decreased by $112,000, or 30.9%, to $251,000 as of June 30, 2024, compared to December 31, 2023.

How did Security Bancorp's (SCYT) net interest income perform in Q2 2024?

Security Bancorp's (SCYT) net interest income increased by $298,000, or 12.1%, to $2.8 million in Q2 2024 compared to Q2 2023.