Security Bancorp, Inc. Announces Second Quarter Earnings

Security Bancorp (OTCBB: SCYT) reported strong Q2 2025 financial results, with net income reaching $1.2 million ($3.30 per share), up from $915,000 ($2.45 per share) in Q2 2024.

Rhea-AI Summary

Security Bancorp (OTCBB: SCYT) reported strong Q2 2025 financial results, with net income reaching $1.2 million ($3.30 per share), up from $915,000 ($2.45 per share) in Q2 2024. The company's six-month net income grew to $2.3 million ($6.03 per share).

Key highlights include a 15.2% increase in Q2 net interest income to $3.2 million, driven by loan growth and higher interest rates. Total assets grew 6.8% to $384.1 million, with loans receivable increasing by $18.0 million. Deposits rose 6.6% to $341.7 million, while stockholders' equity improved to $38.7 million, representing 10.1% of total assets.

Positive

• Net income increased 36.4% year-over-year to $1.2 million in Q2 2025
• Net interest income grew 15.2% to $3.2 million in Q2 2025
• Total assets increased 6.8% to $384.1 million
• Loans receivable grew 6.8% to $282.1 million
• Deposits increased 6.6% to $341.7 million
• Stockholders' equity improved 8.7% to $38.7 million

Negative

• Non-performing assets increased 25% to $174,000
• Non-interest expense increased 7.0% to $2.0 million due to higher professional and consulting fees
• Investment and mortgage-backed securities decreased 16.0% to $37.9 million

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MCMINNVILLE, Tenn., Aug. 07, 2025 (GLOBE NEWSWIRE) -- Security Bancorp, Inc. (“Company”) (OTCBB: “SCYT”), the holding company for Security Federal Savings Bank of McMinnville, Tennessee (“Bank”), today announced its consolidated earnings for the second quarter of its fiscal year ending December 31, 2025.

Net income for the three months ended June 30, 2025 was $1.2 million, or $3.30 per share, compared to $915,000, or $2.45 per share, for the same quarter last year. For the six months ended June 30, 2025, the Company’s net income was $2.3 million or $6.03 per share, compared to $1.9 million, or $5.08 per share, for the same period in 2024.

For the three months ended June 30, 2025, net interest income increased $421,000, or 15.2%, to $3.2 million from $2.8 million for the three months ended June 30, 2024. For the six months ended June 30, 2025, net interest income increased $756,000, or 14.2%, to $6.1 million from $5.3 million for the six months ended June 30, 2024. The increase in net interest income for the three months and six months ended June 30, 2025, was primarily the result of an increase in loans and an increase in interest rates on loans that was partially offset by a smaller increase in interest expense. Net interest income after provision for credit losses for the three months ended June 30, 2025 was $3.2 million, an increase of $469,000, or 17.3%, from $2.7 million for the same period in the previous year. For the six months ended June 30, 2025, net interest income after provision for credit losses increased $848,000, or 16.3%, to $6.1 million from $5.2 million for the same period in 2024.

Non-interest income for the three months ended June 30, 2025 increased to $481,000 compared to $405,000 for the three months ended June 30, 2024. Non-interest income for the six months ended June 30, 2025 increased to $967,000 compared to $920,000 for the same period of the prior year.

Non-interest expense for the three months ended June 30, 2025 was $2.0 million, an increase of $131,000, or 7.0%, from $1.9 million for the same period of the prior year. For the six months ended June 30, 2025, non-interest expense was $4.0 million, an increase of $454,000, or 12.7%, compared to the same period in 2024. The increase for the three and six months ended June 30, 2025 was primarily due to an increase in professional and consulting fees related to the renegotiation of data processing contracts.

The Company’s consolidated total assets increased by $24.4 million, or 6.8% to $384.1 million at June 30, 2025 from $359.7 million at December 31, 2024. The increase in assets was due to increases in interest-bearing deposits with banks, Federal funds sold and loans. The asset increases were funded by an increase in customer deposits. Loans receivable, net, increased $18.0 million, or 6.8%, to $282.1 million at June 30, 2025 from $264.1 million at December 31, 2024. The increase in loans receivable was primarily attributable to an increase in one to four family mortgage and commercial real estate loans.

For the three months ended June 30, 2025 there was no provision for credit losses, compared to $48,000 for the same period in 2024. The provision for credit losses was $7,000 for the six months ended June 30, 2025 compared to $99,000 in the comparable period in 2024, a decrease of $92,000.

Non-performing assets increased $35,000, or 25%, to $174,000 at June 30, 2025 from $139,000 at December 31, 2024. The increase is attributable to a slight increase in non-performing loans. Based on its analysis of delinquent loans, non-performing loans and classified loans, management believes that the Company’s allowance for loan losses of $2.8 million at June 30, 2025 was adequate to absorb known and inherent risks in the loan portfolio. At June 30, 2025, the ratio of the allowance for loan losses to non-performing assets was 1,597.70% compared to 2,001.69% at December 31, 2024.

Investment and mortgage-backed securities available-for-sale at June 30, 2025 decreased $7.2 million, or 16.0%, to $37.9 million from $45.0 million at December 31, 2024. The decrease was due to the maturity and paydowns of investments. There were no investment and mortgage-backed securities held-to-maturity at June 30, 2025 or December 31, 2024.

Deposits increased $21.2 million, or 6.6%, to $341.7 million at June 30, 2025 from $320.5 million at December 31, 2024. The increase was primarily attributable to increases in interest bearing demand deposit balances, savings account balances and certificates of deposit.

Stockholders’ equity increased $3.1 million or 8.7% to $38.7 million, or 10.1% of total assets at June 30, 2025 compared to $35.6 million, or 9.9%, of total assets, at December 31, 2024.

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.

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 June 30,		Six months ended June 30,
	2025	2024	2025	2024
Interest income	$5,624	$4,859	$10,902	$9,374
Interest expense	2,441	2,097	4,833	4,061
Net interest income	3,183	2,762	6,069	5,313
Provision for credit losses	-0-	48	7	99
Net interest income after provision for credit losses	3,183	2,714	6,062	5,214
Non-interest income	481	405	967	920
Non-interest expense	2,007	1,876	4,020	3,566
Income before income tax expense	1,657	1,243	3,009	2,568
Income tax expense	409	328	734	668
Net income	$1,248	$915	$2,275	$1,900
Net Income per share (basic)	$3.30	$2.45	$6.03	$5.08
FINANCIAL CONDITION DATA	At June 30, 2025		At December 31, 2024
Total assets	$384,132		$359,725
Investments and mortgage- backed securities - available for sale	37,851		45,047
Loans receivable, net	282,081		264,055
Deposits	341,724		320,527
Federal Home Loan Bank Advances	-0-		-0-
Stockholders' equity	38,722		35,609
Non-performing assets	174		139
Non-performing assets to total assets	0.04%		0.04%
Allowance for loan losses	2,780		2,782
Allowance for loan losses to total loans receivable	0.98%		1.04%
Allowance for loan losses to non-performing assets	1,597.70%		2,001.69%

FAQ

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

What was Security Bancorp's (SCYT) earnings per share in Q2 2025?

Security Bancorp reported earnings of $3.30 per share in Q2 2025, compared to $2.45 per share in Q2 2024.

How much did Security Bancorp's (SCYT) net interest income grow in Q2 2025?

Security Bancorp's net interest income increased 15.2% to $3.2 million in Q2 2025, up from $2.8 million in Q2 2024.

What was Security Bancorp's (SCYT) total asset value as of June 30, 2025?

Security Bancorp's total assets were $384.1 million as of June 30, 2025, representing a 6.8% increase from December 31, 2024.

How did Security Bancorp's (SCYT) loan portfolio perform in Q2 2025?

Security Bancorp's loans receivable increased 6.8% to $282.1 million, primarily due to growth in one to four family mortgage and commercial real estate loans.

What was Security Bancorp's (SCYT) deposit growth in the first half of 2025?

Security Bancorp's deposits grew 6.6% to $341.7 million, driven by increases in interest-bearing demand deposits, savings accounts, and certificates of deposit.