SCYT Security Bancorp Inc (PK)

Security Bancorp, Inc. (�Company�) (OTCBB:SCYT) today announced consolidated earnings for the third 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 September 30, 2006 was $412,000, or $0.98 per share, compared to $333,000, or $0.79 per share, for the same quarter last year. For the nine months ended September 30, 2006, the Company�s net income was $1.2 million, or $2.75 per share, compared to $898,000, or $1.81 per share, for the same period in 2005. Net interest income after provision for loan losses for the three months ended September 30, 2006 increased 16.4% to $1.3 million from $1.1 million for the same period last year. The increase in net interest income was attributable to the increase in loan balances during the quarter. Non-interest income for the three months ended September 30, 2006 was $530,000 compared to $506,000 for the same quarter of 2005. The 4.7% increase was attributable to an increase in the trust and loan servicing fee income and annuity sales commissions. Non-interest expense for the three months ended September 30, 2006 was $1.1 million compared to $1.0 million for the same quarter of 2005. The 7.4% increase was primarily a result of an increase in personnel expenses and professional fees. Consolidated assets of the Company were $133.9 million at September 30, 2006, unchanged from December 31, 2005. Loans receivable, net, increased from $88.6 million at December 31, 2005 to $91.5 million at September 30, 2006. The 3.3% increase in loans receivable was primarily a result of an increase in commercial real estate loans. The provision for loan losses decreased 8.6% to $64,000 for the three months ended September 30, 2006 from $70,000 for the same quarter last year. Non-performing assets decreased 62.1% from $660,000 at December 31, 2005 to $250,000 at September 30, 2006 as a result of the sales of foreclosed properties. Non-performing assets to total assets were 0.19% at September 30, 2006, compared to 0.49% at December 31, 2005. Investment and mortgage-backed securities available-for-sale decreased from $28.0 million at December 31, 2005 to $24.9 million at September 30, 2006. The 11.1% decrease was a result of receiving the maturities of government securities. Investment and mortgage-backed securities held-to-maturity decreased from $1,000 at December 31, 2005 to zero at September 30, 2006 as a result of the principal payments received. Deposits decreased $1.1 million, or 1.1%, from $105.9 million at December 31, 2005 to $104.8 million at September 30, 2006. The increase was primarily attributable to a decrease in commercial checking account balances. Stockholders� equity at September 30, 2006 was $13.0 million, or 9.7% of total assets, compared to $12.0 million, or 9.0% 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. SECURITY BANCORP, INC.CONSOLIDATED FINANCIAL HIGHLIGHTS(unaudited) (dollars in thousands) OPERATING DATA Three months ended Sept. 30, � Nine months ended Sept. 30, � 2006� 2005� � 2006� 2005� Interest income $2,235� $1,866� � $6,517� $5,215� Interest expense 859� 669� � 2,472� 1,847� Provision for loan losses 64� 70� � 196� 187� Net interest income after provision for loan losses 1,312� 1,127� � 3,849� 3,181� Non-interest income 530� 506� � 1,522� 1,458� Non-interest expense 1,164� 1,084� � 3,482� 3,155� Income before income tax expense 678� 549� � 1,889� 1,484� Income tax expense 266� 216� � 732� 586� Net income $412� $333� � $1,157� $898� � � FINANCIAL CONDITION DATA At Sept. 30, 2006 � At Dec. 31, 2005 Total assets $133,865� � $133,854� Investment and mortgage backed securities available-for-sale 24,872� � 27,966� Investment and mortgage backed securities held-to-maturity -0-� � 1� Loans receivable, net 91,537� � 88,652� Deposits 104,784� � 105,900� FHLB advances 3,000� � 3,000� Stockholders' equity 12,962� � 12,021� Non-performing assets 250� � 660� Non-performing assets to total assets 0.19% � 0.49% Allowance for loan losses 1,119� � 1,022� Allowance for loan losses to total loans receivable, net 1.21% � 1.14% Security Bancorp, Inc. ("Company") (OTCBB:SCYT) today announced consolidated earnings for the third 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 September 30, 2006 was $412,000, or $0.98 per share, compared to $333,000, or $0.79 per share, for the same quarter last year. For the nine months ended September 30, 2006, the Company's net income was $1.2 million, or $2.75 per share, compared to $898,000, or $1.81 per share, for the same period in 2005. Net interest income after provision for loan losses for the three months ended September 30, 2006 increased 16.4% to $1.3 million from $1.1 million for the same period last year. The increase in net interest income was attributable to the increase in loan balances during the quarter. Non-interest income for the three months ended September 30, 2006 was $530,000 compared to $506,000 for the same quarter of 2005. The 4.7% increase was attributable to an increase in the trust and loan servicing fee income and annuity sales commissions. Non-interest expense for the three months ended September 30, 2006 was $1.1 million compared to $1.0 million for the same quarter of 2005. The 7.4% increase was primarily a result of an increase in personnel expenses and professional fees. Consolidated assets of the Company were $133.9 million at September 30, 2006, unchanged from December 31, 2005. Loans receivable, net, increased from $88.6 million at December 31, 2005 to $91.5 million at September 30, 2006. The 3.3% increase in loans receivable was primarily a result of an increase in commercial real estate loans. The provision for loan losses decreased 8.6% to $64,000 for the three months ended September 30, 2006 from $70,000 for the same quarter last year. Non-performing assets decreased 62.1% from $660,000 at December 31, 2005 to $250,000 at September 30, 2006 as a result of the sales of foreclosed properties. Non-performing assets to total assets were 0.19% at September 30, 2006, compared to 0.49% at December 31, 2005. Investment and mortgage-backed securities available-for-sale decreased from $28.0 million at December 31, 2005 to $24.9 million at September 30, 2006. The 11.1% decrease was a result of receiving the maturities of government securities. Investment and mortgage-backed securities held-to-maturity decreased from $1,000 at December 31, 2005 to zero at September 30, 2006 as a result of the principal payments received. Deposits decreased $1.1 million, or 1.1%, from $105.9 million at December 31, 2005 to $104.8 million at September 30, 2006. The increase was primarily attributable to a decrease in commercial checking account balances. Stockholders' equity at September 30, 2006 was $13.0 million, or 9.7% of total assets, compared to $12.0 million, or 9.0% 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 months ended Nine months ended OPERATING DATA Sept. 30, Sept. 30, ---------------------------------------------------------------------- 2006 2005 2006 2005 ---------------------------------------------------------------------- Interest income $2,235 $1,866 $6,517 $5,215 ---------------------------------------------------------------------- Interest expense 859 669 2,472 1,847 ---------------------------------------------------------------------- Provision for loan losses 64 70 196 187 ---------------------------------------------------------------------- Net interest income after provision for loan losses 1,312 1,127 3,849 3,181 ---------------------------------------------------------------------- Non-interest income 530 506 1,522 1,458 ---------------------------------------------------------------------- Non-interest expense 1,164 1,084 3,482 3,155 ---------------------------------------------------------------------- Income before income tax expense 678 549 1,889 1,484 ---------------------------------------------------------------------- Income tax expense 266 216 732 586 ---------------------------------------------------------------------- Net income $412 $333 $1,157 $898 ---------------------------------------------------------------------- FINANCIAL CONDITION DATA At Sept. 30, 2006 At Dec. 31, 2005 ---------------------------------------------------------------------- Total assets $133,865 $133,854 ---------------------------------------------------------------------- Investment and mortgage backed securities available-for-sale 24,872 27,966 ---------------------------------------------------------------------- Investment and mortgage backed securities held-to-maturity -0- 1 ---------------------------------------------------------------------- Loans receivable, net 91,537 88,652 ---------------------------------------------------------------------- Deposits 104,784 105,900 ---------------------------------------------------------------------- FHLB advances 3,000 3,000 ---------------------------------------------------------------------- Stockholders' equity 12,962 12,021 ---------------------------------------------------------------------- Non-performing assets 250 660 ---------------------------------------------------------------------- Non-performing assets to total assets 0.19% 0.49% ---------------------------------------------------------------------- Allowance for loan losses 1,119 1,022 ---------------------------------------------------------------------- Allowance for loan losses to total loans receivable, net 1.21% 1.14% ---------------------------------------------------------------------- *T