Security Bancorp, Inc. Announces Third Quarter Earnings

Federal funds purchased fell to zero from $9 million, while Federal Home Loan Bank advances increased to $12 million.

Rhea-AI Summary

Security Bancorp (SCYT) reported third-quarter net income of $1.663 million, an increase from the same quarter a year earlier. Basic earnings per share rose to $4.40 from $3.94, while net income increased from $1.487 million. For the nine months ended September 30, 2026, net income reached $4.735 million versus $3.763 million, with basic earnings per share of $12.53 versus $10.03.

Quarterly net interest income rose to $3.969 million from $3.465 million, while non-interest expense increased to $2.215 million from $2.017 million. At September 30, net loans totaled $321.365 million and deposits totaled $330.828 million, up from $299.963 million and $316.908 million at December 31, 2025. Non-performing assets increased to $947,000 from $4,000, attributable to increased real estate owned. Quarterly credit-loss provisions rose to $45,000 from $29,000.

12 points · 0 major

MixediHow this balance works

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0 major · 8 points

How the balance works

Positive

• Moderate pointThird-quarter net income rose to $1.663 million from $1.487 million; basic EPS increased to $4.40 from $3.94.
• Moderate pointNet interest income increased to $3.969 million quarterly and $11.472 million year-to-date, from $3.465 million and $9.534 million.
• Moderate pointNet loans increased to $321.365 million at September 30, 2026, from $299.963 million at December 31, 2025.
• Moderate pointDeposits increased to $330.828 million at September 30, 2026, from $316.908 million at December 31, 2025.
• Moderate pointTotal assets increased to $393.175 million at September 30, 2026, from $381.580 million at December 31, 2025.
• Moderate pointStockholders’ equity rose to $45.816 million from $41.986 million; equity/assets increased to 11.7% from 11.0% since year-end 2025.
• Moderate pointFederal funds purchased fell to zero at September 30, 2026, from $9 million at December 31, 2025.

5 minor points

• Minor pointNine-month net income rose to $4.735 million from $3.763 million; basic EPS increased to $12.53 from $10.03.
• Minor pointInterest income rose to $6.008 million quarterly and $17.370 million year-to-date, from $5.692 million and $16.594 million.
• Minor pointInterest expense fell to $2.039 million quarterly and $5.898 million year-to-date, from $2.227 million and $7.060 million.
• Minor pointNet interest income after credit-loss provisions increased to $3.924 million quarterly and $11.337 million year-to-date, from $3.436 million and $9.498 million.
• Minor pointPretax income increased to $2.207 million quarterly and $6.310 million year-to-date, from $1.978 million and $4.988 million.

Negative

• Moderate pointNon-performing assets rose to $947,000 at September 30, 2026, from $4,000 at year-end 2025, reflecting increased real estate owned.
• Moderate pointNon-interest expense increased to $2.215 million quarterly and $6.435 million year-to-date, from $2.017 million and $6.036 million.
• Moderate pointAvailable-for-sale securities decreased to $27.179 million from $36.705 million since year-end 2025 through maturities and paydowns.
• Minor pointCredit-loss provisions increased to $45,000 quarterly and $135,000 year-to-date, versus $29,000 and $36,000 in 2025.
• Minor pointNon-interest income decreased to $498,000 quarterly and $1.408 million year-to-date, from $559,000 and $1.526 million.

3 minor points

• Minor pointFederal Home Loan Bank advances increased to $12 million at September 30, 2026, from $10 million at year-end 2025.
• Minor pointCredit-loss allowance/total loans declined to 0.91 from 0.95 at year-end 2025; allowance/non-performing assets fell to 310.35% from 7,197.5%.
• Minor pointIncome tax expense increased to $544,000 quarterly and $1.575 million year-to-date, from $491,000 and $1.225 million.

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MCMINNVILLE, Tenn., Nov. 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 third quarter of its fiscal year ending December 31, 2026.

Net income for the three months ended September 30, 2026 was $1.7 million, or $4.40 per basic share, compared to $1.5 million, or $3.94 per basic share, for the same quarter last year. For the nine months ended September 30, 2026, the Company’s net income was $4.7 million or $12.53 per basic share, compared to $3.8 million, or $10.03 per basic share, for the same period in 2025.

For the three months ended September 30, 2026, net interest income increased $504,000, or 14.5%, to $4.0 million from $3.5 million for the three months ended September 30, 2025. For the nine months ended September 30, 2026, net interest income increased $1.9 million, or 20.3%, to $11.5 million from $9.5 million for the nine months ended September 30, 2025. The increase in net interest income for the three months and nine months ended September 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 September 30, 2026 was $3.9 million, an increase of $488,000, or 14.2%, from $3.4 million for the same period in the previous year. For the nine months ended September 30, 2026, net interest income after provision for credit losses increased $1.8 million, or 19.4%, to $11.3 million from $9.5 million for the same period in 2025.

Non-interest income for the three months ended September 30, 2026 decreased to $498,000 compared to $559,000 for the three months ended September 30, 2025. Non-interest income for the nine months ended September 30, 2026 decreased to $1.4 million compared to $1.5 million for the same period of the prior year. The decrease is primarily due to a decrease in gains on sale of secondary market loans due to lower volume of activity.

Non-interest expense for the three months ended September 30, 2026 was $2.2 million, an increase of $198,000, or 9.8%, from $2.0 million for the same period of the prior year. For the nine months ended September 30, 2026, non-interest expense was $6.4 million, an increase of $399,000, or 6.6%, compared to the same period in 2025. The increase for the three and nine months ended September 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 $11.6 million, or 3.0% to $393.2 million at September 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 $21.4 million, or 7.1%, to $321.4 million at September 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 September 30, 2026 provision for credit losses was $45,000, compared to $29,000 provision for the same period in 2025. The provision for credit losses was $135,000 for the nine months ended September 30, 2026 compared to $36,000 in the comparable period in 2025, an increase of $99,000. The increase in provision for credit losses was due to significant loan growth during the period.

Non-performing assets increased $943,000 to $947,000 at September 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 September 30, 2026 was adequate to absorb known and inherent risks in the loan portfolio. At September 30, 2026, the ratio of the allowance for loan losses to non-performing assets was 310.35%.

Investment and mortgage-backed securities available-for-sale at September 30, 2026 decreased $9.5 million, or 26.0%, to $27.2 million from $36.7 million at December 31, 2025. The decrease was due to the maturity and paydowns of investment securities. There were no investment and mortgage-backed securities held-to-maturity at September 30, 2026 or December 31, 2025.

Deposits increased $13.9 million, or 4.4%, to $330.8 million at September 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 $3.8 million or 9.1% to $45.8 million, or 11.7% of total assets at September 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 Sept 30,			Nine months ended Sept 30,
	2025	2026		2025	2026
Interest income	$5,692	$6,008		$16,594	$17,370
Interest expense	2,227	2,039		7,060	5,898
Net interest income	3,465	3,969		9,534	11,472
Provision for credit losses	29	45		36	135
Net interest income after provision for credit losses	3,436	3,924		9,498	11,337
Non-interest income	559	498		1,526	1,408
Non-interest expense	2,017	2,215		6,036	6,435
Income before income tax expense	1,978	2,207		4,988	6,310
Income tax expense	491	544		1,225	1,575
Net income	$1,487	$1,663		$3,763	$4,735
Net Income per share (basic)	$3.94	$4.40		$10.03	$12.53
FINANCIAL CONDITION DATA	At Sept 30, 2026			At December 31, 2025
Total assets	$393,175			381,580
Investments and mortgage- backed securities - available for sale	27,179			36,705
Loans receivable, net	321,365			299,963
Deposits	330,828			316,908
Federal Home Loan Bank Advances	12,000			10,000
Federal funds purchased	-0-			9,000
Stockholders' equity	45,816			41,986
Non-performing assets	947			4
Non-performing assets to total assets	0.24			.001
Allowance for credit losses	2,939			2,879
Allowance for credit losses to total loans receivable	0.91			0.95
Allowance for credit losses to non-performing assets	310.35%			7,197.5%

FAQ

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What were Security Bancorp’s third-quarter 2026 earnings?

Security Bancorp earned $1.663 million, or $4.40 per basic share, in the three months ended September 30, 2026. That compares with $1.487 million, or $3.94 per basic share, in the same quarter of 2025.

Why did Security Bancorp’s non-interest income decline in 2026?

The company attributed the decline primarily to lower gains on sales of secondary-market loans because of reduced activity. Non-interest income fell for both the three-month and nine-month periods ended September 30, 2026.

Why did Security Bancorp’s non-interest expenses increase in 2026?

The company attributed the increase primarily to higher salary, employee benefit and occupancy expenses, partly offset by lower professional fees. This explanation applies to both the three-month and nine-month periods ended September 30, 2026.

How large was Security Bancorp’s credit-loss allowance at September 30, 2026?

Security Bancorp’s allowance for credit losses was $2.939 million at September 30, 2026, compared with $2.879 million at December 31, 2025. Management considered the allowance adequate to absorb known and inherent loan-portfolio risks based on its analysis of delinquent, non-performing and classified loans.