Security Bancorp, Inc. Announces Third Quarter Earnings

Rhea-AI Summary

Security Bancorp (OTCBB: SCYT) reported third-quarter 2025 consolidated results with Q3 net income $1.49M ($3.94/share) vs $1.04M ($2.77) a year earlier and YTD net income $3.76M ($10.03) vs $2.94M ($7.84) prior year.

Net interest income rose 20.6% YoY to $3.47M in Q3 and 16.5% YTD to $9.53M, driven by higher loans and loan rates. Loans receivable increased $29.4M (11.1%) to $293.5M; total assets rose 4.4% to $375.7M; deposits increased 2.2% to $327.7M.

Provision for credit losses declined to $29K Q3 and $36K YTD; non-performing assets fell to $18K. Stockholders' equity increased 12.5% to $40.1M. Non-interest income and YTD non-interest expense rose modestly due to card-processing renegotiation fees.

Positive

• Q3 net income +43% YoY to $1.49M
• Net interest income Q3 +20.6% YoY to $3.47M
• Loans receivable +11.1% to $293.5M
• Total assets +4.4% to $375.7M
• Stockholders' equity +12.5% to $40.1M
• Non-performing assets decreased 87% to $18K

Negative

• Non-interest income Q3 down to $559K from $635K
• Non-interest expense YTD +7.6% to $6.04M (higher professional/consulting fees)
• Available-for-sale securities down $4.8M (10.7%) to $40.2M
• Allowance for loan losses to loans ratio declined to 0.95% from 1.04%

MCMINNVILLE, Tenn., Nov. 03, 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 third quarter of its fiscal year ending December 31, 2025.

Net income for the three months ended September 30, 2025 was $1.5 million, or $3.94 per share, compared to $1.0 million, or $2.77 per share, for the same quarter last year. For the nine months ended September 30, 2025, the Company’s net income was $3.8 million or $10.03 per share, compared to $2.9 million, or $7.84 per share, for the same period in 2024.

For the three months ended September 30, 2025, net interest income increased $592,000, or 20.6%, to $3.5 million from $2.9 million for the three months ended September 30, 2024. For the nine months ended September 30, 2025, net interest income increased $1.3 million, or 16.5%, to $9.5 million from $8.2 million for the nine months ended September 30, 2024. The increase in net interest income for the three months and nine months ended September 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 September 30, 2025 was $3.4 million, an increase of $628,000, or 22.4%, from $2.8 million for the same period in the previous year. For the nine months ended September 30, 2025, net interest income after provision for credit losses increased $1.5 million, or 18.4%, to $9.5 million from $8.0 million for the same period in 2024.

Non-interest income for the three months ended September 30, 2025 decreased to $559,000 compared to $635,000 for the three months ended September 30, 2024. Non-interest income for the nine months ended September 30, 2025 decreased to $1.5 million compared to $1.6 million for the same period of the prior year.

Non-interest expense for the three months ended September 30, 2025 was relatively unchanged compared to the same period of the prior year. For the nine months ended September 30, 2025, non-interest expense was $6.0 million, an increase of $425,000, or 7.6%, compared to the same period in 2024. The increase for the nine months ended September 30, 2025 was primarily due to an increase in professional and consulting fees related to the renegotiation of card processing contracts.

The Company’s consolidated total assets increased by $15.9 million, or 4.4%, to $375.7 million at September 30, 2025 from $359.7 million at December 31, 2024. The increase in assets was due to increases in loans funded by increases in interest-bearing deposits and customer deposits. Loans receivable, net, increased $29.4 million, or 11.1%, to $293.5 million at September 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 September 30, 2025 the provision for credit losses was $29,000 compared to $65,000 for the same period in 2024. The provision for credit losses was $36,000 for the nine months ended September 30, 2025 compared to $164,000 in the comparable period in 2024, a decrease of $128,000.

Non-performing assets decreased $121,000, or 87%, to $18,000 at September 30, 2025 from $139,000 at December 31, 2024. The decrease is attributable to a decrease in non-performing loans. Based on the management’s 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 September 30, 2025 was adequate to absorb known and inherent risks in the loan portfolio. At September 30, 2025, the ratio of the allowance for loan losses to non-performing assets was 15,605.56% compared to 2,001.69% at December 31, 2024.

Investment and mortgage-backed securities available-for-sale at September 30, 2025 decreased $4.8 million, or 10.7%, to $40.2 million from $45.0 million at December 31, 2024. The decrease was due to the maturity and paydowns of investments offset by purchases. There were no investment and mortgage-backed securities held-to-maturity at September 30, 2025 or December 31, 2024.

Deposits increased $7.2 million, or 2.2%, to $327.7 million at September 30, 2025 from $320.5 million at December 31, 2024. The increase was primarily attributable to increases in balances of interest-bearing demand deposits, savings accounts and certificates of deposit.

Stockholders’ equity increased $4.5 million, or 12.5%, to $40.1 million, or 10.7% of total assets at September 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 Sept 30,		Nine months ended Sept 30,
	2025	2024	2025	2024
Interest income	$5,692	$5,085	$16,594	$14,459
Interest expense	2,227	2,212	7,060	6,273
Net interest income	3,465	2,873	9,534	8,186
Provision for credit losses	29	65	36	164
Net interest income after provision for credit losses	3,436	2,808	9,498	8,022
Non-interest income	559	635	1,526	1,555
Non-interest expense	2,017	2,046	6,036	5,611
Income before income tax expense	1,978	1,397	4,988	3,966
Income tax expense	491	359	1,225	1,027
Net income	$1,487	$1,038	$3,763	$2,939
Net Income per share (basic)	$3.94	$2.77	$10.03	$7.84
FINANCIAL CONDITION DATA	At September 30, 2025		At December 31, 2024
Total assets	$375,664		$359,725
Investments and mortgage- backed securities - available for sale	40,210		45,047
Loans receivable, net	293,454		264,055
Deposits	327,726		320,527
Federal funds purchased	4,000		-0-
Federal Home Loan Bank Advances	-0-		-0-
Stockholders' equity	40,064		35,609
Non-performing assets	18		139
Non-performing assets to total assets	0.005%		0.04%
Allowance for loan losses	2,809		2,782
Allowance for loan losses to total loans receivable	0.95%		1.04%
Allowance for loan losses to non-performing assets	15,605.56%		2,001.69%

FAQ

What were Security Bancorp (SCYT) reported Q3 2025 net income and EPS?

Security Bancorp reported Q3 2025 net income of $1.49M, or $3.94 per share.

How much did SCYT net interest income increase in Q3 2025 versus Q3 2024?

Net interest income increased 20.6% year-over-year to $3.47M in Q3 2025.

What change did Security Bancorp report in loans and total assets at Sept 30, 2025?

Loans receivable rose 11.1% to $293.5M and total assets increased 4.4% to $375.7M.

Why did Security Bancorp's non-interest expense rise in the nine months ended Sept 30, 2025?

YTD non-interest expense rose 7.6% primarily due to higher professional and consulting fees for card processing renegotiation.

How did credit metrics change for SCYT through Sept 30, 2025?

Provision for credit losses fell to $29K in Q3 and $36K YTD; non-performing assets fell to $18K at Sept 30, 2025.