SCYT Security Bancorp Inc (PK)

Security Bancorp, Inc. (OTCBB:"SCYT") today announced consolidated earnings for the third quarter ended September 30, 2005. The Company is the holding company for Security Federal Savings Bank of McMinnville, Tennessee ("Bank"). Net income for the three months ended September 30, 2005 was $333,000, or 79 cents per share, compared to $241,000, or 58 cents per share, for the same quarter last year. Net interest income after provision for loan losses for the three months ended September 30, 2005 increased 17.2% to $1.1 million from $962,000 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 September 30, 2005 was $506,000 compared to $476,000 for the same quarter last year. The 6.3% increase was attributable to an increase in service charges on deposit accounts. Non-interest expense for the three months ended September 30, 2005 was $1.1 million compared to $1.0 million for the same quarter last year. The 4.5% 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 21.8% to $133.9 million at September 30, 2005 from $109.9 million at December 31, 2004. Loans receivable, net, increased 2.6% from $85.7 million at December 31, 2004 to $87.9 million at September 30, 2005. The increase in consolidated assets was primarily a result of government accounts obtained by the Bank. The provision for loan losses increased 25.0% to $70,000 for the three months ended September 30, 2005 from $56,000 for the three months ended September 30, 2004. Non-performing assets increased 21.8% from $509,000 at December 31, 2004 to $620,000 at September 30, 2005. Non-performing assets to total assets were 0.46% at December 31, 2004 and remained unchanged at September 30, 2005. Investment and mortgage-backed securities available-for-sale increased from $13.1 million at December 31, 2004 to $30.0 million at September 30, 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 $3,000 at September 30, 2005 as a result of the repayment of principal on mortgage-backed securities. Deposits increased $15.1 million from $92.2 million at December 31, 2004 to $107.3 million at September 30, 2005. The increase was primarily attributable to an increase in certificates of deposit and money market accounts. Stockholders' equity at September 30, 2005 was $11.6 million, or 8.7% of total assets, compared to $11.0 million, 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) ---------------------------------------------------------------------- Three months Nine Months OPERATING DATA ended ended September 30, September 30, -------------------------------------- --------------- --------------- 2004 2005 2004 2005 -------------------------------------- ------- ------- ------- ------- Interest Income $1,435 $1,866 $4,196 $5,215 -------------------------------------- ------- ------- ------- ------- Interest Expense 417 669 1,218 1,847 -------------------------------------- ------- ------- ------- ------- Provision for loan losses 56 70 166 187 -------------------------------------- ------- ------- ------- ------- Net interest income after provision for loan losses 962 1,127 2,812 3,181 -------------------------------------- ------- ------- ------- ------- Non-Interest income 476 506 1,209 1,458 -------------------------------------- ------- ------- ------- ------- Non-Interest expense 1,037 1,084 2,903 3,155 -------------------------------------- ------- ------- ------- ------- Income before income tax expense 401 549 1,118 1,484 -------------------------------------- ------- ------- ------- ------- Income tax expense 160 216 451 586 -------------------------------------- ------- ------- ------- ------- Net income $241 $333 $667 $898 -------------------------------------- ------- ------- ------- ------- -------------------------------------- ------- ------- ------- ------- FINANCIAL CONDITION DATA At September At December 31, 30, 2005 2004 -------------------------------------- --------------- --------------- -------------------------------------- --------------- --------------- Total Assets $133,930 $109,948 -------------------------------------- --------------- --------------- Investments and mortgage-backed securities available for sale 30,016 13,171 -------------------------------------- --------------- --------------- Investments and mortgage-backed securities held to maturity 3 7 -------------------------------------- --------------- --------------- Loans receivable, net 87,921 85,657 -------------------------------------- --------------- --------------- Deposits 107,314 92,241 -------------------------------------- --------------- --------------- FHLB advances 3,000 3,000 -------------------------------------- --------------- --------------- Stockholders' equity 11,670 11,038 -------------------------------------- --------------- --------------- Non-performing assets 620 509 -------------------------------------- --------------- --------------- Non-performing assets to total assets 0.46% 0.46% -------------------------------------- --------------- --------------- Allowance for loan losses 1,007 1,028 -------------------------------------- --------------- --------------- Allowance for loan losses to total loans rec, net 1.15% 1.20% -------------------------------------- --------------- --------------- *T