Security Bancorp, Inc. Announces First Quarter Earnings

  
    
  
  
    
      Security Bancorp, Inc. (OTCBB:SCYT) today announced consolidated 
      earnings for the first quarter ended March 31, 2008. The Company is the 
      holding company for Security Federal Savings Bank of McMinnville, 
      Tennessee (“Bank”).
    
    
      Net income for the three months ended March 31, 2008 was $496,000, or 
      $1.16 per share, compared to $352,000, or $0.83 per share, for the same 
      quarter last year.
    
    
      Net interest income after provision for loan losses for the three months 
      ended March 31, 2008 decreased 3.5% to $1.4 million from $1.5 million 
      for the same period last year. The decrease in net interest income was 
      attributable to the decrease in interest rates during the quarter.
    
    
      Non-interest income for the three months ended March 31, 2008 was 
      $473,000 compared to $438,000 for the same quarter of 2007. The 8.0% 
      increase was primarily attributable to an increase in trust service fees 
      and gains on loans sold.
    
    
      Non-interest expense for the three months ended March 31, 2008 was $1.2 
      million compared to $1.3 million for the same quarter of 2007. The 12.8% 
      decrease was primarily a result of a decrease in data processing 
      expenses. The data processing conversion was completed in 2007.
    
    
      Consolidated assets of the Company decreased 1.8% to $141.7 million at 
      March 31, 2008 from $144.2 million at December 31, 2007. Loans 
      receivable, net, increased 0.5% from $97.2 million at December 31, 2007 
      to $97.7 million at March 31, 2008. The decrease in consolidated assets 
      was primarily attributable to a decrease in public funds held at the 
      Bank.
    
    
      The provision for loan losses was $31,000 for the three months ended 
      March 31, 2008, compared to $32,000 for the same quarter last year. 
      Non-performing assets increased 13.3% from $525,000 at December 31, 2007 
      to $595,000 at March 31, 2008. Non-performing assets to total assets 
      were 0.42% at March 31, 2008, compared to 0.36% at December 31, 2007.
    
    
      Investment and mortgage-backed securities available-for-sale decreased 
      1.6% from $31.4 million at December 31, 2007 to $30.9 million at March 
      31, 2008 as a result of the maturities of securities.
    
    
      Deposits decreased $754,000 from $104.0 million at December 31, 2007 to 
      $103.2 million at March 31, 2008. The 0.73% decrease was primarily 
      attributable to a decrease in certificates of deposit.
    
    
      Stockholders’ equity at March 31, 2008 was 
      $15.4 million, or 10.9% of total assets, compared to $14.9 million, or 
      10.4% or total assets, at December 31, 2007.
    
    
      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,
          
        
        
           
        
        
        
      
      
        
           
        
        
           
        
        
          2008
        
        
           
        
        
          2007
        
        
        
        
        
      
      
        
          Interest Income
        
        
           
        
        
          $2,284
        
        
           
        
        
          $2,460
        
        
        
        
        
      
      
        
          Interest Expense
        
        
           
        
        
          847
        
        
           
        
        
          971
        
        
        
        
        
      
      
        
          Provision for loan losses
        
        
           
        
        
          31
        
        
           
        
        
          32
        
        
        
        
        
      
      
        
          Net interest income after provision for loan losses
        
        
           
        
        
          1,406
        
        
           
        
        
          1,457
        
        
        
        
        
      
      
        
          Non-Interest income
        
        
           
        
        
          473
        
        
           
        
        
          438
        
        
        
        
        
      
      
        
          Non-Interest expense
        
        
           
        
        
          1,154
        
        
           
        
        
          1,323
        
        
        
        
        
      
      
        
          Income before income tax expense
        
        
           
        
        
          725
        
        
           
        
        
          572
        
        
        
        
        
      
      
        
          Income tax expense
        
        
           
        
        
          229
        
        
           
        
        
          220
        
        
        
        
        
      
      
        
          Net income
        
        
           
        
        
          $496
        
        
           
        
        
          $352
        
        
        
        
        
      
      
        
        
        
           
        
        
        
        
           
        
        
        
        
        
        
        
      
      
        
          FINANCIAL CONDITION DATA
        
        
           
        
        
          At March 31, 2008
        
        
           
        
        
          At December 31, 2007
        
      
      
        
          Total Assets
        
        
           
        
        
          $141,670
        
        
           
        
        
          $144,248
        
      
      
        
          Investments and mortgage backed securities available for sale
        
        
           
        
        
          30,942
        
        
           
        
        
          31,431
        
      
      
        
          Investments and mortgage backed securities held to maturity
        
        
           
        
        
          -0-
        
        
           
        
        
          -0-
        
      
      
        
          Loans receivable, net
        
        
           
        
        
          97,717
        
        
           
        
        
          97,191
        
      
      
        
          Deposits
        
        
           
        
        
          103,234
        
        
           
        
        
          103,988
        
      
      
        
          FHLB advances
        
        
           
        
        
          3,000
        
        
           
        
        
          7,000
        
      
      
        
          Stockholders' equity
        
        
           
        
        
          15,433
        
        
           
        
        
          14,940
        
      
      
        
          Non-performing assets
        
        
           
        
        
          595
        
        
           
        
        
          525
        
      
      
        
          Non-performing assets to total assets
        
        
           
        
        
          0.42%
        
        
           
        
        
          0.36%
        
      
      
        
          Allowance for loan losses
        
        
           
        
        
          1,097
        
        
           
        
        
          1,198
        
      
      
        
          Allowance for loan losses to total loans rec, net
        
        
           
        
        
          1.11%
        
        
           
        
        
          1.22%