Security Bancorp, Inc. Announces First Quarter Earnings

Security Bancorp (OTCBB: SCYT) reported first quarter 2026 results for the period ended March 31, 2026.

Rhea-AI Summary

Security Bancorp (OTCBB: SCYT) reported first quarter 2026 results for the period ended March 31, 2026. Net income was $1.44 million, or $3.81 basic EPS, versus $1.03 million, or $2.73 EPS, a year earlier. Net interest income rose to $3.65 million; non-interest income fell to $404,000. Loans receivable, net, were $308.0 million and deposits were $331.1 million at March 31, 2026. Non-performing assets increased to $713,000; allowance for loan losses was $2.876 million (403.36% of non-performing assets).

Positive

• Net income increased to $1.441 million (+40% year-over-year)
• Basic EPS rose to $3.81 from $2.73 (+39.6%)
• Net interest income increased to $3.648 million (+26.4% year-over-year)

Negative

• Non-performing assets rose to $713,000 from $4,000 at year-end 2025
• Non-interest income declined 16.9% to $404,000 year-over-year

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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.

Contact:	Michael D. Griffith
	President & Chief Executive Officer
	(931) 473-4483

SECURITY BANCORP, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS (unaudited) (dollars in thousands)
OPERATING DATA	Three months ended March 31,
	2026	2025
Interest income	$5,560	$5,278
Interest expense	1,912	2,392
Net interest income	3,648	2,886
Provision for credit losses	45	7
Net interest income after provision for credit losses	3,603	2,879
Non-interest income	404	486
Non-interest expense	2,079	2,014
Income before income tax expense	1,928	1,351
Income tax expense	487	325
Net income	$1,441	$1,026
Net Income per share (basic)	$3.81	$2.73
FINANCIAL CONDITION DATA	At March 31, 2026		At December 31, 2025
Total assets	$378,653		$381,580
Investments and mortgage-backed securities - available for sale	34,598		36,705
Loans receivable, net	308,019		299,963
Deposits	331,112		316,908
Federal Home Loan Bank Advances	-0-		10,000
Fed funds purchased	-0-		9,000
Stockholders' equity	43,350		41,986
Non-performing assets	713		4
Non-performing assets to total assets	0.19		0.001
Allowance for loan losses	2,876		2,879
Allowance for loan losses to total loans receivable	0.93		0.95
Allowance for loan losses to non-performing assets	403.36%		7197.5%

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Security Bancorp (SCYT) first quarter 2026 earnings results?

Security Bancorp reported Q1 2026 net income of $1.441 million. According to the company, that equates to $3.81 basic EPS, up from $1.026 million and $2.73 EPS in Q1 2025, driven by higher net interest income.

Why did Security Bancorp (SCYT) net interest income increase in Q1 2026?

Net interest income rose to $3.648 million in Q1 2026. According to the company, the increase reflected higher interest income combined with lower interest expense versus the prior-year quarter.

How did Security Bancorp (SCYT) provision for credit losses and non-performing assets change in Q1 2026?

Provision for credit losses was $45,000 in Q1 2026, up from $7,000. According to the company, non-performing assets increased to $713,000, primarily due to higher non-performing loans.

What happened to Security Bancorp (SCYT) non-interest income and expenses in Q1 2026?

Non-interest income decreased to $404,000 and non-interest expense increased modestly to $2.079 million. According to the company, lower service fees and loan-sale gains reduced non-interest income, while occupancy costs rose.

What is Security Bancorp (SCYT) balance sheet position at March 31, 2026?

At March 31, 2026 total assets were $378.65 million, loans receivable, net were $308.02 million, and deposits were $331.11 million. According to the company, investments declined due to maturities and deposits rose from quarter-end 2025 levels.