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MCMINNVILLE, Tenn., May 05, 2025 (GLOBE NEWSWIRE) -- Security Bancorp, Inc. (OTCBB “SCYT”) (“Company”) today announced consolidated results for the first quarter ended March 31, 2025. The Company is the holding company for Security Federal Savings Bank of McMinnville, Tennessee (“Bank”).
Net income for the three months ended March 31, 2025 was $1.0 million, or $2.73 basic earnings per share, compared to $984,000, or $2.63 basic earnings per share, for the quarter ended March 31, 2024.
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For the three months ended March 31, 2025, net interest income increased $335,000, or 13.1%, to $2.9 million from $2.6 million for the same period in 2024. Total interest income increased $763,000, or 16.9%, to $5.3 million for the three months ended March 31, 2025 from $4.5 million for the same period in 2024. Total interest expense increased $428,000 to $2.4 million for the three months ended March 31, 2025 from $2.0 million for the quarter ended March 31, 2024. The increase in interest expense was primarily due to an increase in interest-bearing deposits. Net interest income, after provision for credit losses, for the three months ended March 31, 2025 increased $379,000 to $2.9 million, compared to $2.5 million for the same period in 2024.
The provision for credit losses was $7,000 for the three months ended March 31, 2025, a decrease of $44,000 compared to $51,000 for the three months ended March 31, 2024.
Non-interest income for the three months ended March 31, 2025 was $486,000 compared to $515,000 for the three months ended March 31, 2024, a decrease of $29,000, or 5.6%.
Non-interest expense for the three months ended March 31, 2025 was $2.0 million, an increase of $323,000, or 19.1%, from $1.7 million for the same period in 2024. The increase was primarily due to an increase in professional fees related to the renegotiation of data processing contracts.
The Company’s consolidated total assets increased by $32.1 million, or 8.9%, to $391.8 million at March 31, 2025 from $359.7 million at December 31, 2024. The increase in consolidated assets was due to increases in interest-bearing deposits with banks, Federal funds sold and loans. These asset increases were funded by an increase in customer deposits. Loans receivable, net, increased $12.3 million, or 4.7%, to $276.3 million at March 31, 2025 from $264.1 million at December 31, 2024.
Non-performing assets decreased $111,000, or 79.9%, to $28,000 at March 31, 2025 from $139,000 at December 31, 2024. The decline was primarily attributable to a decrease in real estate owned. Based on our analysis of delinquent loans, non-performing loans and classified loans, we believe that the Company’s allowance for loan losses of $2.8 million at March 31, 2025 is adequate to absorb known and inherent risks in the loan portfolio at that date. The allowance for loan losses at March 31, 2025 represented 9,953.7% of non-performing assets compared to 2,001.69% at December 31, 2024.