SCYT Security Bancorp Inc (PK)

Security Bancorp, Inc. (OTCBB:SCYT) today announced consolidated earnings for the first quarter ended March 31, 2005. The Company is the holding company for Security Federal Savings Bank of McMinnville, Tennessee. Net income for the three months ended March 31, 2005 was $275,000, or 65 cents per share, compared to $242,000, or 60 cents per share, for the same quarter last year. Net interest income after provision for loan losses for the three months ended March 31, 2005 increased 9.1% to $1,009,000 from $925,000 for the same period a year ago. The increase in net interest income was attributable to the increase in interest rates during the quarter. Non-interest income for the three months ended March 31, 2005 was $465,000 compared to $382,000 for the same quarter last year. The increase was attributable to an increase in service charges on deposit accounts. Non-interest expense for the three months ended March 31, 2005 was $1,025,000 compared to $909,000 for the same quarter last year. The increase was primarily a result of additional costs associated with hiring of new personnel and increases in data processing costs. Consolidated assets of the Company increased to $132,466,000 at March 31, 2005 from $109,865,000 at December 31, 2004. Loans receivable, net, increased from $85,657,000 at December 31, 2004 to $86,809,000 at March 31, 2005. The increase in consolidated assets was primarily a result of government accounts obtained by the bank. The provision for loan losses decreased to $58,000 for the three months ended March 31, 2005 from $65,000 at December 31, 2004. Non-performing assets increased from $117,000 at December 31, 2004 to $499,000 at March 31, 2005. Non-performing assets to total assets were .11% at December 31, 2004 and .38% at March 31, 2005. Investment and mortgage-backed securities available-for-sale increased from $13,171,000 at December 31, 2004 to $33,781,000 at March 31, 2005 as a result of purchasing government securities to secure the governmental deposits mentioned above. Investment and mortgage-backed securities held-to-maturity decreased from $7,000 at December 31, 2004 to $5,000 at March 31, 2005 as a result of repayment of principal on mortgage-backed securities. Deposits increased $410,000 from $92,241,000 at December 31, 2004 to $92,651,000 at March 31, 2005. The increase was primarily attributable to an increase in certificates of deposit and savings accounts. Stockholders' equity at March 31, 2005 was $11,244,000, or 8.5% of total assets, compared to $11,038,000, or 10.0% or total assets, at December 31, 2004. 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. -0- *T SECURITY BANCORP, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited) (dollars in thousands) ---------------------------------------------------------------------- OPERATING DATA Three months ended March 31, ---------------------------------------------------------------------- 2005 2004 ---------------------------------------------------------------------- Interest Income $1,612 $1,395 ---------------------------------------------------------------------- Interest Expense 545 405 ---------------------------------------------------------------------- Provision for loan losses 58 65 ---------------------------------------------------------------------- Net interest income after provision for loan losses 1,009 925 ---------------------------------------------------------------------- Non-Interest income 465 382 ---------------------------------------------------------------------- Non-Interest expense 1,025 909 ---------------------------------------------------------------------- Income before income tax expense 449 398 ---------------------------------------------------------------------- Income tax expense 174 156 ---------------------------------------------------------------------- Net income $275 $242 ---------------------------------------------------------------------- FINANCIAL CONDITION DATA At March 31, 2005 At December 31, 2004 ---------------------------------------------------------------------- Total Assets $132,466 $109,865 ---------------------------------------------------------------------- Investments and mortgage backed securities available for sale 33,781 13,171 ---------------------------------------------------------------------- Investments and mortgage backed securities held to maturity 5 7 ---------------------------------------------------------------------- Loans receivable, net 86,809 85,657 ---------------------------------------------------------------------- Deposits 92,651 92,241 ---------------------------------------------------------------------- FHLB advances 3,000 3,000 ---------------------------------------------------------------------- Stockholders' equity 11,244 11,038 ---------------------------------------------------------------------- Non-performing assets 499 117 ---------------------------------------------------------------------- Non-performing assets to total assets 0.38% 0.11% ---------------------------------------------------------------------- Allowance for loan losses 1,026 1,028 ---------------------------------------------------------------------- Allowance for loan losses to total loans receivable, net 1.18% 1.20% ---------------------------------------------------------------------- *T