Security Bancorp (OTCBB: SCYT) reported higher earnings for the quarter and six months ended June 30, 2026. Quarterly net income rose to $1.6 million, or $4.31 per basic share, from $1.2 million, or $3.30, a year earlier. Six‑month net income increased to $3.1 million, or $8.13 per share, from $2.3 million, or $6.03.
Net interest income grew 21.1% to $3.9 million for the quarter and 24.6% to $7.5 million year‑to‑date, driven by higher loan balances, higher loan yields and lower interest expense. Total assets reached $386.1 million, loans receivable rose to $311.1 million, and deposits increased to $327.0 million. Stockholders’ equity grew to $45.0 million, or 11.6% of total assets.
Non‑performing assets increased to $941,000 from $4,000 at year‑end 2025, largely due to real estate owned, while the allowance for loan losses was $2.9 million, covering 299.69% of non‑performing assets.
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Positive
Quarterly net income up to $1.6 million from $1.2 million
Six‑month net income increased to $3.1 million from $2.3 million
Net interest income Q2 rose 21.1% to $3.9 million
Loans receivable grew $11.2 million to $311.1 million
Deposits increased $10.1 million to $327.0 million
Equity ratio improved to 11.6% of total assets from 11.0%
Negative
Non‑performing assets rose to $941,000 from $4,000
Provision for credit losses increased to $90,000 from $7,000
Non‑interest expense for six months rose to $4.2 million from $4.0 million
Non‑interest income for six months decreased to $910,000 from $967,000
Available‑for‑sale securities declined $5.3 million to $31.4 million
MCMINNVILLE, Tenn., Aug. 05, 2026 (GLOBE NEWSWIRE) -- Security Bancorp, Inc. (“Company”) (OTCBB: “SCYT”), the holding company for Security Federal Savings Bank of McMinnville, Tennessee, today announced its consolidated earnings for the second quarter of its fiscal year ending December 31, 2026.
Net income for the three months ended June 30, 2026 was $1.6 million, or $4.31 per basic share, compared to $1.2 million, or $3.30 per basic share, for the same quarter last year. For the six months ended June 30, 2026, the Company’s net income was $3.1 million or $8.13 per basic share, compared to $2.3 million, or $6.03 per basic share, for the same period in 2025.
For the three months ended June 30, 2026, net interest income increased $672,000, or 21.1%, to $3.9 million from $3.2 million for the three months ended June 30, 2025. For the six months ended June 30, 2026, net interest income increased $1.4 million, or 24.6%, to $7.5 million from $6.1 million for the six months ended June 30, 2025. The increase in net interest income for the three months and six months ended June 30, 2026, was primarily the result of an increase in loans, an increase in interest rates on loans as well as a decrease in interest expense. Net interest income after provision for credit losses for the three months ended June 30, 2026 was $3.8 million, an increase of $627,000, or 19.7%, from $3.2 million for the same period in the previous year. For the six months ended June 30, 2026, net interest income after provision for credit losses increased $1.4 million, or 22.3%, to $7.4 million from $6.1 million for the same period in 2025.
Non-interest income for the three months ended June 30, 2026 increased to $506,000 compared to $481,000 for the three months ended June 30, 2025. Non-interest income for the six months ended June 30, 2026 decreased to $910,000 compared to $967,000 for the same period of the prior year.
Non-interest expense for the three months ended June 30, 2026 was $2.1 million, an increase of $134,000, or 6.7%, from $2.0 million for the same period of the prior year. For the six months ended June 30, 2026, non-interest expense was $4.2 million, an increase of $200,000, or 5.0%, compared to the same period in 2025. The increase for the three and six months ended June 30, 2026 was primarily due to an increase in salary and employee benefits and occupancy expenses offset by a decrease in professional fees.
The Company’s consolidated total assets increased by $4.5 million, or 1.2% to $386.1 million at June 30, 2026 from $381.6 million at December 31, 2025. The increase in assets was due to increases in loans. The asset increases were funded by an increase in deposits and advances from Federal Home Loan Bank. Loans receivable, net, increased $11.2 million, or 3.7%, to $311.1 million at June 30, 2026 from $300.0 million at December 31, 2025. 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, 2026 provision for credit losses was $45,000, compared to no provision for the same period in 2025. The provision for credit losses was $90,000 for the six months ended June 30, 2026 compared to $7,000 in the comparable period in 2025, an increase of $83,000. The increase in provision for credit losses was due to significant loan growth during the period.
Non-performing assets increased $937,000 to $941,000 at June 30, 2026 from $4,000 at December 31, 2025. The increase was attributable to an increase in real estate owned. Based on its analysis of delinquent loans, non-performing loans and classified loans, management believes that the Company’s allowance for loan losses of $2.9 million at June 30, 2026 was adequate to absorb known and inherent risks in the loan portfolio. At June 30, 2026, the ratio of the allowance for loan losses to non-performing assets was 299.69%.
Investment and mortgage-backed securities available-for-sale at June 30, 2026 decreased $5.3 million, or 14.4%, to $31.4 million from $36.7 million at December 31, 2025. 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, 2026 or December 31, 2025.
Deposits increased $10.1 million, or 3.2%, to $327.0 million at June 30, 2026 from $316.9 million at December 31, 2025. The increase was primarily attributable to increases in interest bearing demand deposit balances and certificates of deposit.
Stockholders’ equity increased $3.0 million or 7.1% to $45.0 million, or 11.6% of total assets at June 30, 2026 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, 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
2026
2025
2026
Interest income
$5,624
$5,802
$10,902
$11,362
Interest expense
2,441
1,947
4,833
3,859
Net interest income
3,183
3,855
6,069
7,503
Provision for credit losses
-0-
45
7
90
Net interest income after provision for credit losses
3,183
3,810
6,062
7,413
Non-interest income
481
506
967
910
Non-interest expense
2,007
2,141
4,020
4,220
Income before income tax expense
1,657
2,175
3,009
4,103
Income tax expense
409
544
734
1,031
Net income
$1,248
$1,631
$2,275
$3,072
Net Income per share (basic)
$3.30
$4.31
$6.03
$8.13
FINANCIAL CONDITION DATA
At June 30, 2026
At December 31, 2025
Total assets
$386,104
$381,580
Investments and mortgage- backed securities - available for sale
31,432
36,705
Loans receivable, net
311,137
299,963
Deposits
327,007
316,908
Federal Home Loan Bank Advances
10,000
10,000
Federal funds purchased
-0-
9,000
Stockholders' equity
44,965
41,986
Non-performing assets
941
4
Non-performing assets to total assets
0.24
.001
Allowance for loan losses
2,910
2,879
Allowance for loan losses to total loans receivable
0.93
0.95
Allowance for loan losses to non-performing assets
299.69%
7197.5%
FAQ
How did Security Bancorp (SCYT) perform in Q2 2026 earnings?
Security Bancorp reported Q2 2026 net income of $1.6 million, or $4.31 per basic share. According to the company, this compares with $1.2 million, or $3.30 per share, for Q2 2025, reflecting higher net interest income and loan growth.
What were Security Bancorp (SCYT) year-to-date 2026 earnings and EPS?
For the six months ended June 30, 2026, Security Bancorp earned $3.1 million, or $8.13 per basic share. According to the company, this is up from $2.3 million and $6.03 per share for the same 2025 period, supported by stronger net interest income.
How did net interest income change for Security Bancorp (SCYT) in Q2 2026?
Net interest income increased to $3.9 million in Q2 2026 from $3.2 million in Q2 2025. According to the company, growth in loans, higher interest rates on loans and lower interest expense contributed to this improvement in core banking revenue.
What happened to Security Bancorp (SCYT) non-performing assets in 2026?
Non-performing assets rose to $941,000 at June 30, 2026, from $4,000 at December 31, 2025. According to the company, this increase was attributable to higher real estate owned, while the allowance for loan losses covered 299.69% of non-performing assets.
How did loans and deposits change for Security Bancorp (SCYT) in first half 2026?
At June 30, 2026, loans receivable, net, were $311.1 million and deposits were $327.0 million. According to the company, loans grew $11.2 million, mainly in one-to-four family and commercial real estate, while deposits increased $10.1 million versus year-end 2025.
What is Security Bancorp (SCYT) capital position as of June 30, 2026?
Stockholders’ equity totaled $45.0 million at June 30, 2026, representing 11.6% of total assets. According to the company, this compares with $42.0 million, or 11.0% of assets, at December 31, 2025, indicating an increase in the capital base.
How did non-interest income and expenses trend for Security Bancorp (SCYT) in 2026?
For the six months ended June 30, 2026, non-interest income was $910,000 versus $967,000, while non-interest expense was $4.2 million versus $4.0 million. According to the company, higher salaries, benefits and occupancy costs drove the expense increase, partly offset by lower professional fees.
