Security Bancorp, Inc. Announces Third Quarter Earnings

MCMINNVILLE, Tenn., Nov. 03, 2025 (GLOBE NEWSWIRE) -- Security Bancorp, Inc. (“Company”) (OTCBB: “SCYT”), the holding company for Security Federal Savings Bank of McMinnville, Tennessee (“Bank”), today announced its consolidated earnings for the third quarter of its fiscal year ending December 31, 2025.

Net income for the three months ended September 30, 2025 was $1.5 million, or $3.94 per share, compared to $1.0 million, or $2.77 per share, for the same quarter last year. For the nine months ended September 30, 2025, the Company’s net income was $3.8 million or $10.03 per share, compared to $2.9 million, or $7.84 per share, for the same period in 2024.

For the three months ended September 30, 2025, net interest income increased $592,000, or 20.6%, to $3.5 million from $2.9 million for the three months ended September 30, 2024. For the nine months ended September 30, 2025, net interest income increased $1.3 million, or 16.5%, to $9.5 million from $8.2 million for the nine months ended September 30, 2024. The increase in net interest income for the three months and nine months ended September 30, 2025, was primarily the result of an increase in loans and an increase in interest rates on loans that was partially offset by a smaller increase in interest expense. Net interest income after provision for credit losses for the three months ended September 30, 2025 was $3.4 million, an increase of $628,000, or 22.4%, from $2.8 million for the same period in the previous year. For the nine months ended September 30, 2025, net interest income after provision for credit losses increased $1.5 million, or 18.4%, to $9.5 million from $8.0 million for the same period in 2024.

Non-interest income for the three months ended September 30, 2025 decreased to $559,000 compared to $635,000 for the three months ended September 30, 2024. Non-interest income for the nine months ended September 30, 2025 decreased to $1.5 million compared to $1.6 million for the same period of the prior year.

Non-interest expense for the three months ended September 30, 2025 was relatively unchanged compared to the same period of the prior year. For the nine months ended September 30, 2025, non-interest expense was $6.0 million, an increase of $425,000, or 7.6%, compared to the same period in 2024. The increase for the nine months ended September 30, 2025 was primarily due to an increase in professional and consulting fees related to the renegotiation of card processing contracts.

The Company’s consolidated total assets increased by $15.9 million, or 4.4%, to $375.7 million at September 30, 2025 from $359.7 million at December 31, 2024. The increase in assets was due to increases in loans funded by increases in interest-bearing deposits and customer deposits. Loans receivable, net, increased $29.4 million, or 11.1%, to $293.5 million at September 30, 2025 from $264.1 million at December 31, 2024. The increase in loans receivable was primarily attributable to an increase in one to four family mortgage and commercial real estate loans.  

For the three months ended September 30, 2025 the provision for credit losses was $29,000 compared to $65,000 for the same period in 2024. The provision for credit losses was $36,000 for the nine months ended September 30, 2025 compared to $164,000 in the comparable period in 2024, a decrease of $128,000.

Non-performing assets decreased $121,000, or 87%, to $18,000 at September 30, 2025 from $139,000 at December 31, 2024. The decrease is attributable to a decrease in non-performing loans. Based on the management’s analysis of delinquent loans, non-performing loans and classified loans, management believes that the Company’s allowance for loan losses of $2.8 million at September 30, 2025 was adequate to absorb known and inherent risks in the loan portfolio. At September 30, 2025, the ratio of the allowance for loan losses to non-performing assets was 15,605.56% compared to 2,001.69% at December 31, 2024.

Investment and mortgage-backed securities available-for-sale at September 30, 2025 decreased $4.8 million, or 10.7%, to $40.2 million from $45.0 million at December 31, 2024. The decrease was due to the maturity and paydowns of investments offset by purchases. There were no investment and mortgage-backed securities held-to-maturity at September 30, 2025 or December 31, 2024.

Deposits increased $7.2 million, or 2.2%, to $327.7 million at September 30, 2025 from $320.5 million at December 31, 2024. The increase was primarily attributable to increases in balances of interest-bearing demand deposits, savings accounts and certificates of deposit.

Stockholders’ equity increased $4.5 million, or 12.5%, to $40.1 million, or 10.7% of total assets at September 30, 2025 compared to $35.6 million, or 9.9%, of total assets, at December 31, 2024.

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.

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