MCMINNVILLE, Tenn., May 04, 2026 (GLOBE NEWSWIRE) -- Security Bancorp, Inc. (OTCBB “SCYT”) (“Company”) today announced consolidated results for the first quarter ended March 31, 2026. The Company is the holding company for Security Federal Savings Bank of McMinnville, Tennessee.

Net income for the three months ended March 31, 2026 was $1.4 million, or $3.81 basic earnings per share, compared to $1.0 million, or $2.73 basic earnings per share, for the quarter ended March 31, 2025.

For the three months ended March 31, 2026, net interest income increased $762,000, or 26.4%, to $3.6 million from $2.9 million for the same period in 2025.   Total interest income increased $282,000, or 5.3%, to $5.6 million for the three months ended March 31, 2026 from $5.3 million for the same period in 2025.   Total interest expense decreased $480,000 to $1.9 million for the three months ended March 31, 2026 from $2.4 million for the quarter ended March 31, 2025. The decrease in interest expense was primarily due to a decrease in interest-bearing deposits as well as a reduction in interest rates compared to the first quarter of 2025. Net interest income, after provision for credit losses, for the three months ended March 31, 2026 increased $724,000 to $3.6 million, compared to $2.9 million for the same period in 2025.

The provision for credit losses was $45,000 for the three months ended March 31, 2026, an increase of $38,000 compared to $7,000 for the three months ended March 31, 2025.

Non-interest income for the three months ended March 31, 2026 was $404,000 compared to $486,000 for the three months ended March 31, 2025, a decrease of $82,000, or 16.9%.   The decrease was primarily due to a decrease in financial service fees and gains on the sale of loans.

Non-interest expense for the three months ended March 31, 2026 was $2.1 million, an increase of $65,000, or 3.2%, from $2.0 million for the same period in 2025. The increase was primarily due to an increase in occupancy expenses as a result of increases in office supplies and maintenance costs.

The Company’s consolidated total assets decreased by $2.9 million to $378.7 million at March 31, 2026 from $381.6 million at December 31, 2025. The decrease in consolidated assets was due to increases in loans receivable offset by a decrease in cash, interest-bearing deposits with banks and investments. Loans receivable, net, increased $8.1 million, or 2.7%, to $308.0 million at March 31, 2026 from $300.0 million at December 31, 2025.  

Non-performing assets increased $709,000 to $713,000 at March 31, 2026 from $4,000 at December 31, 2025. The increase was primarily attributable to an increase in non-performing loans.   Based on our analysis of delinquent loans, non-performing loans and classified loans, we believe that the Company’s allowance for loan losses of $2.9 million at March 31, 2026 is adequate to absorb known and inherent risks in the loan portfolio at that date. The allowance for loan losses at March 31, 2026 represented 403.36% of non-performing assets.   

Investments and mortgage-backed securities available-for-sale decreased $2.1 million, or 5.7%, to $34.6 million from $36.7 million at December 31, 2025. The decrease was due to the maturity of investments.

Deposits increased $14.2 million, or 4.5%, to $331.1 million at March 31, 2026 from $316.9 million at December 31, 2025. The increase in deposits was due to increases in commercial interest-bearing demand deposits.

Stockholders’ equity at March 31, 2026 was $43.3 million, or 11.45% of total assets, compared to $42.0 million, or 11.0% of total assets at December 31, 2025.

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, financial market conditions and other uncertainties.