Security Bancorp, Inc. Announces Second Quarter Earnings

  
    
  
  
    
      Security Bancorp, Inc. (“Company”) 
      (OTCBB:SCYT) today announced consolidated earnings for the second 
      quarter of its fiscal year ended December 31, 2007. The Company is the 
      holding company for Security Federal Savings Bank of McMinnville, 
      Tennessee (“Bank”).
    
    
      Net income for the three months ended June 30, 2007 was $368,000, or 
      $0.86 per share, compared to $421,000, or $1.01 per share, for the same 
      quarter last year. For the six months ended June 30, 2007, the Company’s 
      net income was $720,000, or $1.69 per share, compared to $745,000, or 
      $1.78 per share, for the same period in 2006.
    
    
      Net interest income after provision for loan losses for the three months 
      ended June 30, 2007 increased 8.9% to $1.4 million from $1.3 million for 
      the same period last year. For the six months ended June 30, 2007, net 
      interest income increased 11.7% to $2.8 million from $2.5 million for 
      the comparable period in 2006. The increase in net interest income was 
      attributable to the increase in loan balances during the quarter and the 
      six months ended June 30, 2007.
    
    
      Non-interest income for the three months ended June 30, 2007 was 
      $514,000 compared to $502,000 for the same quarter of 2006, an increase 
      of 2.4%. For the six months ended June 30, 2007, non-interest income 
      increased 0.1% to $993,000 from $992,000 for the comparable period in 
      2006. The increases during the quarter and the six months ended June 30, 
      2007 was attributable to an increase in the trust and loan servicing fee 
      income and deposit service charges and fees.
    
    
      Non-interest expense for the three months ended June 30, 2007 was $1.4 
      million compared to $1.1 million for the same quarter of 2006, an 
      increase of 18.2%. For the six months ended June 30, 2007, non-interest 
      expense increased 14.5% to $2.7 million from $2.3 million for the 
      comparable period in 2006. The increases during the quarter and the six 
      months ended June 30, 2007 were primarily a result of an increase in 
      data processing fees attributable to a system conversion. The new 
      processing system was installed during the quarter and put into service 
      on June 18, 2007.
    
    
      Consolidated assets of the Company were $144.1 million at June 30, 2007, 
      compared to $140.2 million at December 31, 2006. Loans receivable, net, 
      increased from $91.6 million at December 31, 2006 to $92.6 million at 
      June 30, 2007. The 1.1% increase in loans receivable was primarily a 
      result of an increase in commercial real estate loans.
    
    
      The provision for loan losses decreased 43.5% to $35,000 for the three 
      months ended June 30, 2007 from $62,000 for the same quarter last year. 
      Non-performing assets decreased 27.7% from $260,000 at December 31, 2006 
      to $188,000 at June 30, 2007. Non-performing assets to total assets were 
      0.13% at June 30, 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 $33.2 million at June 30, 
      2007. The 19.3% increase was a result of the purchase of securities 
      pledged against public funds.
    
    
      Deposits increased $2.0 million, or 1.9%, from $108.0 million at 
      December 31, 2006 to $110.0 million at June 30, 2007. The increase was 
      primarily attributable to an increase in commercial checking account 
      balances.
    
    
      Stockholders’ equity at June 30, 2007 was 
      $14.3 million, or 9.9% of total assets, compared to $13.5 million, or 
      9.6% of 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)
        
      
      
        
        
        
          Three months ended
        
        
          Six months ended
        
      
      
        
          OPERATING DATA
        
        
          June 30,
        
        
          June 30,
        
      
      
        
           
        
        
          2007
        
        
          2006
        
        
          2007
        
        
          2006
        
      
      
        
          Interest income
        
        
          $2,518
        
        
          $2,226
        
        
          $4,916
        
        
          $4,282
        
      
      
        
          Interest expense
        
        
          1,043
        
        
          842
        
        
          2,014
        
        
          1,613
        
      
      
        
          Provision for loan losses
        
        
          35
        
        
          62
        
        
          67
        
        
          132
        
      
      
        
          Net interest income after provision for loan losses
        
        
          1,440
        
        
          1,322
        
        
          2,835
        
        
          2,537
        
      
      
        
          Non-interest income
        
        
          514
        
        
          502
        
        
          993
        
        
          992
        
      
      
        
          Non-interest expense
        
        
          1,358
        
        
          1,149
        
        
          2,655
        
        
          2,318
        
      
      
        
          Income before income tax expense
        
        
          596
        
        
          675
        
        
          1,173
        
        
          1,211
        
      
      
        
          Income tax expense
        
        
          228
        
        
          254
        
        
          453
        
        
          466
        
      
      
        
          Net income
        
        
          $368
        
        
          $421
        
        
          $720
        
        
          $745
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
      
      
        
          FINANCIAL CONDITION DATA
        
        
          At June 30, 2007
        
        
          At December 31, 2006
        
      
      
        
          Total assets
        
        
          $144,111
        
        
          $140,242
        
      
      
        
          Investment and mortgage backed securities available-for-sale
        
        
          33,222
        
        
          27,845
        
      
      
        
          Investment and mortgage backed securities held-to-maturity
        
        
          
            0
          
        
        
          
            0
          
        
      
      
        
          Loans receivable, net
        
        
          92,607
        
        
          91,628
        
      
      
        
          Deposits
        
        
          110,084
        
        
          108,043
        
      
      
        
          FHLB advances
        
        
          3,000
        
        
          3,000
        
      
      
        
          Stockholders' equity
        
        
          14,272
        
        
          13,499
        
      
      
        
          Non-performing assets
        
        
          188
        
        
          260
        
      
      
        
          Non-performing assets to total assets
        
        
          0.13%
        
        
          0.19%
        
      
      
        
          Allowance for loan losses
        
        
          1,172
        
        
          1,166
        
      
      
        
          Allowance for loan losses to total loans receivable
        
        
          1.25%
        
        
          1.26%