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, 2008. The Company is the 
      holding company for Security Federal Savings Bank of McMinnville, 
      Tennessee (“Bank”).
    
    
      Net income for the three months ended June 30, 2008 was $433,000, or 
      $0.99 per share, compared to $368,000, or $0.86 per share, for the same 
      quarter last year. For the six months ended June 30, 2008, the Company’s 
      net income was $930,000, or $2.14 per share, compared to $720,000, or 
      $1.69 per share, for the same period in 2007.
    
    
      Net interest income after provision for loan losses for the three months 
      ended June 30, 2008 decreased 6.0% to $1.4 million from $1.5 million for 
      the same period last year. For the six months ended June 30, 2008, net 
      interest income decreased 4.7% to $2.8 million from $2.9 million for the 
      comparable period in 2007. The decrease in net interest income was 
      attributable to the decrease in interest rates during the quarter and 
      six months ended June 30, 2008.
    
    
      Non-interest income for the three months ended June 30, 2008 was 
      $497,000 compared to $485,000 for the same quarter of 2007, an increase 
      of 2.5%. For the six months ended June 30, 2008, non-interest income 
      increased 5.1% to $970,000 from $923,000 for the comparable period in 
      2007. The increases during the quarter and the six months ended June 30, 
      2008 were attributable to increases in the trust service fee income and 
      the gains on sales of loans.
    
    
      Non-interest expense for the three months ended June 30, 2008 was $1.2 
      million compared to $1.4 million for the same quarter of 2007, a 
      decrease of 13.6%. For the six months ended June 30, 2008, non-interest 
      expense decreased 13.2% to $2.4 million from $2.7 million for the 
      comparable period in 2007. The decreases during the quarter and the six 
      months ended June 30, 2008 were primarily a result of a decrease in data 
      processing fees and consulting fees related to the 2007 system 
      conversion.
    
    
      Consolidated assets of the Company were $139.9 million at June 30, 2008, 
      compared to $144.2 million at December 31, 2007. The decrease in assets 
      is attributable to a decrease in public funds held in deposits at the 
      Bank and a corresponding reduction in the Bank investment securities. 
      Loans receivable, net, increased from $97.2 million at December 31, 2007 
      to $100.4 million at June 30, 2008. The 3.3% increase in loans 
      receivable was primarily a result of an increase in commercial secured 
      loans.
    
    
      The provision for loan losses decreased 14.3% to $30,000 for the three 
      months ended June 30, 2008 from $35,000 for the same quarter last year. 
      For the six months ended June 30, 2008, the provision for loan losses 
      decreased 9.0% to $61,000 from $67,000 for the same period in 2007. 
      Non-performing assets increased 7.8% from $525,000 at December 31, 2007 
      to $566,000 at June 30, 2008. Non-performing assets to total assets were 
      0.40% at June 30, 2008, compared to 0.36% at December 31, 2007.
    
    
      Investment and mortgage-backed securities available-for-sale decreased 
      from $31.4 million at December 31, 2007 to $25.5 million at June 30, 
      2008. The 18.8% decrease was a result of the maturities and calls of 
      securities.
    
    
      Deposits increased $5.9 million, or 5.7%, from $104.0 million at 
      December 31, 2007 to $109.9 million at June 30, 2008. The increase was 
      primarily attributable to an increase in commercial checking account 
      balances.
    
    
      Stockholders’ equity at June 30, 2008 was 
      $15.4 million, or 11.0% of total assets, compared to $14.9 million, or 
      10.4% of 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

          
            June 30,
          
        
        
           
        
        
          Six months ended

          
            June 30,
          
        
      
      
        
           
        
        
           
        
        
          2008
        
        
           
        
        
          2007
        
        
           
        
        
          2008
        
        
           
        
        
          2007
        
      
      
        
          Interest income
        
        
           
        
        
          $
        
        
          2,162
        
        
           
        
        
          $
        
        
          2,571
        
        
           
        
        
          $
        
        
          4,447
        
        
           
        
        
          $
        
        
          5,031
        
      
      
        
          Interest expense
        
        
           
        
        
           
        
        
          729
        
        
           
        
        
           
        
        
          1,043
        
        
           
        
        
           
        
        
          1,576
        
        
           
        
        
           
        
        
          2,015
        
      
      
        
          Provision for loan losses
        
        
           
        
        
           
        
        
          30
        
        
           
        
        
           
        
        
          35
        
        
           
        
        
           
        
        
          61
        
        
           
        
        
           
        
        
          67
        
      
      
        
          Net interest income after provision for loan losses
        
        
           
        
        
           
        
        
          1,403
        
        
           
        
        
           
        
        
          1,493
        
        
           
        
        
           
        
        
          2,810
        
        
           
        
        
           
        
        
          2,949
        
      
      
        
          Non-interest income
        
        
           
        
        
           
        
        
          497
        
        
           
        
        
           
        
        
          485
        
        
           
        
        
           
        
        
          970
        
        
           
        
        
           
        
        
          923
        
      
      
        
          Non-interest expense
        
        
           
        
        
           
        
        
          1,204
        
        
           
        
        
           
        
        
          1,394
        
        
           
        
        
           
        
        
          2,358
        
        
           
        
        
           
        
        
          2,716
        
      
      
        
          Income before income tax expense
        
        
           
        
        
           
        
        
          696
        
        
           
        
        
           
        
        
          584
        
        
           
        
        
           
        
        
          1,422
        
        
           
        
        
           
        
        
          1,156
        
      
      
        
          Income tax expense
        
        
           
        
        
           
        
        
          263
        
        
           
        
        
           
        
        
          216
        
        
           
        
        
           
        
        
          492
        
        
           
        
        
           
        
        
          436
        
      
      
        
          Net income
        
        
           
        
        
          $
        
        
          433
        
        
           
        
        
          $
        
        
          368
        
        
           
        
        
          $
        
        
          930
        
        
           
        
        
          $
        
        
          720
        
      
      
        
        
        
           
        
        
        
        
        
        
           
        
        
        
        
        
        
           
        
        
        
        
        
        
           
        
        
        
        
        
      
    
    
      
        
        
        
           
        
        
        
        
           
        
        
        
      
      
        
          FINANCIAL CONDITION DATA
        
        
           
        
        
          At June 30, 2008
        
        
           
        
        
          At December 31, 2007
        
      
      
        
          Total assets
        
        
           
        
        
          $
        
        
          139,941
        
        
           
        
        
           
        
        
          $
        
        
          144,248
        
        
           
        
      
      
        
          Investment and mortgage backed securities available-for-sale
        
        
           
        
        
           
        
        
          25,521
        
        
           
        
        
           
        
        
           
        
        
          31,431
        
        
           
        
      
      
        
          Investment and mortgage backed securities held-to-maturity
        
        
           
        
        
           
        
        
          -0-
        
        
           
        
        
           
        
        
           
        
        
          -0-
        
        
           
        
      
      
        
          Loans receivable, net
        
        
           
        
        
           
        
        
          100,375
        
        
           
        
        
           
        
        
           
        
        
          97,191
        
        
           
        
      
      
        
          Deposits
        
        
           
        
        
           
        
        
          109,908
        
        
           
        
        
           
        
        
           
        
        
          103,988
        
        
           
        
      
      
        
          FHLB advances
        
        
           
        
        
           
        
        
          3,000
        
        
           
        
        
           
        
        
           
        
        
          3,000
        
        
           
        
      
      
        
          Stockholders' equity
        
        
           
        
        
           
        
        
          15,429
        
        
           
        
        
           
        
        
           
        
        
          14,940
        
        
           
        
      
      
        
          Non-performing assets
        
        
           
        
        
           
        
        
          566
        
        
           
        
        
           
        
        
           
        
        
          525
        
        
           
        
      
      
        
          Non-performing assets to total assets
        
        
           
        
        
           
        
        
          0.40
        
        
          %
        
        
           
        
        
           
        
        
          0.36
        
        
          %
        
      
      
        
          Allowance for loan losses
        
        
           
        
        
           
        
        
          1,133
        
        
           
        
        
           
        
        
           
        
        
          1,198
        
        
           
        
      
      
        
          Allowance for loan losses to total loans receivable
        
        
           
        
        
           
        
        
          1.12
        
        
          %
        
        
           
        
        
           
        
        
          1.22
        
        
          %