Security Bancorp, Inc. Announces First Quarter Earnings

  
    
  
  
    
      Security Bancorp, Inc. (OTCBB:SCYT) today announced consolidated 
      earnings for the first quarter ended March 31, 2007. The Company is the 
      holding company for Security Federal Savings Bank of McMinnville, 
      Tennessee (“Bank”).
    
    
      Net income for the three months ended March 31, 2007 was $352,000, or 
      $0.77 per share, compared to $324,000, or $0.77 per share, for the same 
      quarter last year.
    
    
      Net interest income after provision for loan losses for the three months 
      ended March 31, 2007 increased 13.4% to $1.4 million from $1.2 million 
      for the same period last year. The increase in net interest income was 
      attributable to the increase in interest rates over the previous year.
    
    
      Non-interest income for the three months ended March 31, 2007 was 
      $479,000 compared to $475,000 for the same quarter of 2006. The small 
      increase was attributable to an increase in service charge income on 
      deposit accounts.
    
    
      Non-interest expense for the three months ended March 31, 2007 was $1.3 
      million compared to $1.2 million for the same quarter of 2006. The 11.7% 
      increase was primarily a result of an increase in data processing and 
      personnel expenses. The data processing increase is the result of an 
      accrual of expected conversion expenses related to a new processing 
      system.
    
    
      Consolidated assets of the Company increased 8.1% to $151.5 million at 
      March 31, 2007 from $140.2 million at December 31, 2006. Loans 
      receivable, net, increased 1.1% from $91.6 million at December 31, 2006 
      to $92.7 million at March 31, 2007. The increase in consolidated assets 
      was primarily funded by the increases in public funds held at the Bank.
    
    
      The provision for loan losses decreased to $32,000 for the three months 
      ended March 31, 2007 from $70,000 for the same quarter last year. 
      Non-performing assets decreased from $260,000 at December 31, 2006 to 
      $97,000 at March 31, 2007. Non-performing assets to total assets were 
      0.06% at March 31, 2007, compared to 0.19% at December 31, 2006.
    
    
      Investment and mortgage-backed securities available-for-sale increased 
      from $27.8 million at December 31, 2006 to $36.2 million at March 31, 
      2007 as a result of purchasing government securities to secure the 
      public funds mentioned above.
    
    
      Deposits increased $1.6 million from $108.0 million at December 31, 2006 
      to $109.7 million at March 31, 2007. The 1.5% increase was primarily 
      attributable to an increase in certificates of deposits.
    
    
      Stockholders’ equity at March 31, 2007 was 
      $13.9 million, or 9.2% of total assets, compared to $13.5 million, or 
      9.6% or total assets, at December 31, 2006.
    
    
      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.
    
    
      
        
          
            SECURITY BANCORP, INC.CONSOLIDATED FINANCIAL 
            HIGHLIGHTS(unaudited) (dollars in thousands)
          
        
      
      
        
          OPERATING DATA
        
        
        
        
          Three months ended

          
            March 31,
          
        
        
        
        
        
      
      
        
           
        
        
        
        
          2007 
        
        
        
        
          2006 
        
        
        
        
        
      
      
        
          Interest Income
        
        
        
        
          $2,398 
        
        
        
        
          $2,071 
        
        
        
        
        
      
      
        
          Interest Expense
        
        
        
        
          971 
        
        
        
        
          771 
        
        
        
        
        
      
      
        
          Provision for loan losses
        
        
        
        
          32 
        
        
        
        
          70 
        
        
        
        
        
      
      
        
          Net interest income after provision for loan losses
        
        
        
        
          1,395 
        
        
        
        
          1,230 
        
        
        
        
        
      
      
        
          Non-Interest income
        
        
        
        
          479 
        
        
        
        
          475 
        
        
        
        
        
      
      
        
          Non-Interest expense
        
        
        
        
          1,297 
        
        
        
        
          1,161 
        
        
        
        
        
      
      
        
          Income before income tax expense
        
        
        
        
          577 
        
        
        
        
          544 
        
        
        
        
        
      
      
        
          Income tax expense
        
        
        
        
          225 
        
        
        
        
          220 
        
        
        
        
        
      
      
        
          Net income
        
        
        
        
          $352 
        
        
        
        
          $324 
        
        
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          FINANCIAL CONDITION DATA
        
        
        
        
          At March 31, 2007
        
        
        
        
          At December 31, 2006
        
      
      
        
          Total Assets
        
        
        
        
          $151,536 
        
        
        
        
          $140,242 
        
      
      
        
          Investments and mortgage backed securities available for sale
        
        
        
        
          36,225 
        
        
        
        
          27,845 
        
      
      
        
          Investments and mortgage backed securities held to maturity
        
        
        
        
          
            0 
          
        
        
        
        
          
            0 
          
        
      
      
        
          Loans receivable, net
        
        
        
        
          92,681 
        
        
        
        
          91,628 
        
      
      
        
          Deposits
        
        
        
        
          109,684 
        
        
        
        
          108,043 
        
      
      
        
          FHLB advances
        
        
        
        
          3,000 
        
        
        
        
          3,000 
        
      
      
        
          Stockholders' equity
        
        
        
        
          13,898 
        
        
        
        
          13,499 
        
      
      
        
          Non-performing assets
        
        
        
        
          97 
        
        
        
        
          260 
        
      
      
        
          Non-performing assets to total assets
        
        
        
        
          0.06%
        
        
        
        
          0.19%
        
      
      
        
          Allowance for loan losses
        
        
        
        
          1,163 
        
        
        
        
          1,166 
        
      
      
        
          Allowance for loan losses to total loans rec, net
        
        
        
        
          1.24%
        
        
        
        
          1.26%