SCYT Security Bancorp Inc (PK)

Security Bancorp, Inc. (OTCBB:SCYT) today announced consolidated earnings for the first quarter ended March 31, 2007. The Company is the holding company for Security Federal Savings Bank of McMinnville, Tennessee (�Bank�). Net income for the three months ended March 31, 2007 was $352,000, or $0.77 per share, compared to $324,000, or $0.77 per share, for the same quarter last year. Net interest income after provision for loan losses for the three months ended March 31, 2007 increased 13.4% to $1.4 million from $1.2 million for the same period last year. The increase in net interest income was attributable to the increase in interest rates over the previous year. Non-interest income for the three months ended March 31, 2007 was $479,000 compared to $475,000 for the same quarter of 2006. The small increase was attributable to an increase in service charge income on deposit accounts. Non-interest expense for the three months ended March 31, 2007 was $1.3 million compared to $1.2 million for the same quarter of 2006. The 11.7% increase was primarily a result of an increase in data processing and personnel expenses. The data processing increase is the result of an accrual of expected conversion expenses related to a new processing system. Consolidated assets of the Company increased 8.1% to $151.5 million at March 31, 2007 from $140.2 million at December 31, 2006. Loans receivable, net, increased 1.1% from $91.6 million at December 31, 2006 to $92.7 million at March 31, 2007. The increase in consolidated assets was primarily funded by the increases in public funds held at the Bank. The provision for loan losses decreased to $32,000 for the three months ended March 31, 2007 from $70,000 for the same quarter last year. Non-performing assets decreased from $260,000 at December 31, 2006 to $97,000 at March 31, 2007. Non-performing assets to total assets were 0.06% at March 31, 2007, compared to 0.19% at December 31, 2006. Investment and mortgage-backed securities available-for-sale increased from $27.8 million at December 31, 2006 to $36.2 million at March 31, 2007 as a result of purchasing government securities to secure the public funds mentioned above. Deposits increased $1.6 million from $108.0 million at December 31, 2006 to $109.7 million at March 31, 2007. The 1.5% increase was primarily attributable to an increase in certificates of deposits. Stockholders� equity at March 31, 2007 was $13.9 million, or 9.2% of total assets, compared to $13.5 million, or 9.6% or total assets, at December 31, 2006. 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. SECURITY BANCORP, INC.CONSOLIDATED FINANCIAL HIGHLIGHTS(unaudited) (dollars in thousands) OPERATING DATA Three months ended March 31, � 2007� 2006� Interest Income $2,398� $2,071� Interest Expense 971� 771� Provision for loan losses 32� 70� Net interest income after provision for loan losses 1,395� 1,230� Non-Interest income 479� 475� Non-Interest expense 1,297� 1,161� Income before income tax expense 577� 544� Income tax expense 225� 220� Net income $352� $324� � FINANCIAL CONDITION DATA At March 31, 2007 At December 31, 2006 Total Assets $151,536� $140,242� Investments and mortgage backed securities available for sale 36,225� 27,845� Investments and mortgage backed securities held to maturity 0� 0� Loans receivable, net 92,681� 91,628� Deposits 109,684� 108,043� FHLB advances 3,000� 3,000� Stockholders' equity 13,898� 13,499� Non-performing assets 97� 260� Non-performing assets to total assets 0.06% 0.19% Allowance for loan losses 1,163� 1,166� Allowance for loan losses to total loans rec, net 1.24% 1.26%