Security Federal Savings Bank of McMinnville, Tennessee Plan Charter Conversion

  
    
  
  
    
      Security Bancorp, Inc. (OTCBB:SCYT), the parent Company of Security 
      Federal Savings Bank of McMinnville, Tennessee (“Security 
      Federal”), today announced plans for 
      converting Security Federal from a federally chartered stock savings 
      bank to a Tennessee chartered commercial bank. Security Federal also 
      intends to become a member bank of the Federal Reserve Bank of Atlanta. 
      In connection with the charter conversion of Security Federal, Security 
      Bancorp will convert from a savings and loan holding company to a bank 
      holding company.
    
    
      “Today’s 
      announcement is an important step in completing the conversion to a full 
      service commercial bank. Over the past several years our company has 
      been undergoing a major transformation,” said 
      Joe H. Pugh, President and CEO of Security Federal and Security Bancorp. “We 
      have been positioning Security Federal to be the preferred community 
      bank in our market and to better serve our customers and shareholders. 
      Our planned charter conversion strongly reinforces this strategic 
      direction.”
    
    
      Security Bancorp’s conversion to a bank 
      holding company is subject to the approval of the Board of Governors of 
      the Federal Reserve System. The conversion of Security Federal to a 
      Tennessee commercial bank is subject to the approval of the Office of 
      Thrift Supervision, Security Federal’s 
      current primary regulator, and the Tennessee Department of Financial 
      Institutions. The Board of Governors of the Federal Reserve System also 
      will need to approve Security Federal’s 
      application to become a member bank of the Federal Reserve.
    
    
      Security Federal Savings Bank is the wholly-owned subsidiary of Security 
      Bancorp, Inc. and has served the financial needs of Warren County, 
      Tennessee through its two locations in McMinnville, Tennessee since 1960.