SCYT Security Bancorp Inc (PK)

Security Bancorp, Inc. (OTCBB:SCYT) today announced consolidated earnings for the second quarter of its fiscal year ended December 31, 2006. The Company is the holding company for Security Federal Savings Bank of McMinnville, Tennessee ("Bank"). Net income for the three months ended June 30, 2006 was $421,000, or $1.01 per share, compared to $290,000, or 69 cents per share, for the same quarter last year. Net interest income after provision for loan losses for the three months ended June 30, 2006 increased 26.5% to $1.3 million from $1.0 million for the same period last year. 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 June 30, 2006 was $502,000 compared to $487,000 for the same quarter of 2005. The 3.1% increase was attributable to an increase in the trust and loan servicing fee income. Non-interest expense for the three months ended June 30, 2006 was $1.1 million compared to $1.0 million for the same quarter of 2005. The 9.8% increase was primarily a result of an increase in occupancy and personnel expenses. Consolidated assets of the Company increased 2.9% to $137.7 million at June 30, 2006 from $133.9 million at December 31, 2005. Loans receivable, net, increased slightly from $88.6 million at December 31, 2005 to $88.7 million at June 30, 2006. The increase in consolidated assets was primarily funded by the increases in government deposits held at the Bank. The provision for loan losses increased 5.1% to $62,000 for the three months ended June 30, 2006 from $59,000 for the same quarter last year. Non-performing assets decreased 50.8% from $660,000 at December 31, 2005 to $325,000 at June 30, 2006 as a result of the sales of foreclosed properties. Non-performing assets to total assets were 0.24% at June 30, 2006, compared to 0.49% at December 31, 2005. Investment and mortgage-backed securities available-for-sale increased from $27.9 million at December 31, 2005 to $30.3 million at June 30, 2006. The 8.4% increase was a result of purchasing government securities to secure the governmental deposits mentioned above. Investment and mortgage-backed securities held-to-maturity decreased from $1,000 at December 31, 2005 to zero at June 30, 2006 as a result of the principal payments received. Deposits increased $757,000, or 0.7%, from $105.9 million at December 31, 2005 to $106.6 million at June 30, 2006. The increase was primarily attributable to an increase in certificates of deposits. Stockholders' equity at June 30, 2006 was $12.6 million, or 9.2% of total assets, compared to $12.0 million, or 8.9% of total assets, at December 31, 2005. 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) Three Six months ended months ended OPERATING DATA June 30, June 30, ---------------------------------------------------------------------- 2006 2005 2006 2005 ---------------------------------------------------------------------- Interest income $2,226 $1,737 $4,282 $3,349 ---------------------------------------------------------------------- Interest expense 842 633 1,613 1,178 ---------------------------------------------------------------------- Provision for loan losses 62 59 132 117 ---------------------------------------------------------------------- Net interest income after provision for loan losses 1,322 1,045 2,537 2,054 ---------------------------------------------------------------------- Non-interest income 502 487 992 952 ---------------------------------------------------------------------- Non-interest expense 1,149 1,046 2,318 2,071 ---------------------------------------------------------------------- Income before income tax expense 675 486 1,211 935 ---------------------------------------------------------------------- Income tax expense 254 196 466 370 ---------------------------------------------------------------------- Net income $421 $290 $745 $565 ---------------------------------------------------------------------- At At FINANCIAL CONDITION DATA June 30, 2006 December 31, 2005 ---------------------------------------------------------------------- Total assets $137,730 $133,854 ---------------------------------------------------------------------- Investments and mortgage backed securities available-for-sale 30,297 27,966 ---------------------------------------------------------------------- Investments and mortgage backed securities held-to-maturity -0- 1 ---------------------------------------------------------------------- Loans receivable, net 88,703 88,652 ---------------------------------------------------------------------- Deposits 106,657 105,900 ---------------------------------------------------------------------- FHLB advances 3,000 3,000 ---------------------------------------------------------------------- Stockholders' equity 12,688 12,021 ---------------------------------------------------------------------- Non-performing assets 325 660 ---------------------------------------------------------------------- Non-performing assets to total assets 0.24% 0.49% ---------------------------------------------------------------------- Allowance for loan losses 1,076 1,022 ---------------------------------------------------------------------- Allowance for loan losses to total loans rec, net 1.20% 1.14% ---------------------------------------------------------------------- *T