Security Bancorp, Inc. Announces Third Quarter Earnings
MWN-AI** Summary
Security Bancorp, Inc. (OTCBB: SCYT) announced its third quarter earnings for the fiscal year ending December 31, 2025, reporting a significant increase in net income. For Q3 2025, the company reported net income of $1.5 million, or $3.94 per share, up from $1.0 million, or $2.77 per share, in the same quarter a year prior. For the nine-month period ending September 30, net income rose to $3.8 million, or $10.03 per share, compared to $2.9 million, or $7.84 per share, for the same timeframe in 2024.
Net interest income showed a robust increase, climbing 20.6% year-over-year for the third quarter to $3.5 million, and 16.5% for the nine months to $9.5 million, driven by growth in loans and an uptick in interest rates. The provision for credit losses fell considerably, with Q3 2025 at $29,000, down from $65,000 a year prior, indicating improved asset quality as non-performing assets decreased significantly.
The company's total assets increased by 4.4% to $375.7 million, fueled by growth in loan volumes, particularly in one to four family mortgages and commercial real estate. Deposits also rose by 2.2% to $327.7 million. Stockholders’ equity increased 12.5% to $40.1 million, reflecting improved financial stability.
Despite a slight decline in non-interest income, which amounted to $559,000 for Q3 2025 compared to $635,000 the previous year, the overall performance demonstrates strong operational momentum. As Security Bancorp continues to navigate a dynamic economic landscape, management expresses confidence in its allowance for loan losses, which remains robust, coupled with healthy lending growth and a solid equity base.
MWN-AI** Analysis
Security Bancorp, Inc. has demonstrated robust performance in its third quarter earnings for 2025. The company reported a significant increase in net income, rising to $1.5 million or $3.94 per share, compared to $1.0 million or $2.77 per share in the prior year. This upward trend in profitability reflects a strong 20.6% increase in net interest income, attributed largely to an expansion in loan volume and rising interest rates.
Investors may find it compelling that Security Bancorp’s asset base grew to $375.7 million, up 4.4% from the end of 2024, with loans receivable increasing notably by 11.1%. The substantial increase in one-to-four-family mortgage and commercial real estate loans suggests a strategic focus on areas likely to yield consistent returns. Notably, the company’s provision for credit losses also decreased substantially to $29,000 from $65,000, indicating an improving asset quality, illustrated by a remarkable decline in non-performing assets to just $18,000.
However, some caution is warranted. Non-interest income fell slightly, which may raise concerns regarding the sustainability of revenue streams outside of the loan portfolio. Additionally, the rise in non-interest expenses due to professional fees, particularly around the renegotiation of contracts, may signal increasing operational costs that could impact future profitability.
Despite these challenges, the substantial increase in stockholders' equity by 12.5% to $40.1 million demonstrates a strong capital position, bolstering investor confidence.
From a market perspective, Security Bancorp appears well-positioned for continued growth, particularly given its solid loan performance and improved asset quality. Investors should monitor non-interest income trends and expense management closely, while considering the attractive valuation metrics as earnings per share increase. A bullish stance could be justified, especially for those with a long-term investment horizon, but a careful assessment of potential risks is essential.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
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**
How did Security Bancorp Inc SCYT manage to achieve a significant increase in net income per share from $2.77 in 2024 to $3.94 in 2025 for the third quarter?
What factors contributed to the 20.6% increase in net interest income for Security Bancorp Inc SCYT in the third quarter of 20compared to the same quarter in 2024?
Despite an increase in total assets, why did Security Bancorp Inc SCYT see a decrease in non-interest income in both the three and nine-month periods ended September 30, 2025?
How does Security Bancorp Inc SCYT’s allowance for loan losses ratio to non-performing assets of 15,605.56% at September 30, 2025 reflect its risk management strategies compared to previous periods?
**MWN-AI FAQ is based on asking OpenAI questions about Security Bancorp Inc (OTC: SCYT).
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