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 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 with $1.2 million, or $3.30 per basic share, in the same quarter last year. For the six months ended June 30, 2026, net income was $3.1 million, or $8.13 per basic share, compared with $2.3 million, or $6.03 per basic share, for the same period in 2025. The results came during a period in which the company reported growth in loans, deposits and total assets, while also citing higher funding and operating costs in several categories.

For the three months ended June 30, 2026, net interest income rose $672,000, or 21.1%, to $3.9 million from $3.2 million in the prior-year quarter. 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 in the first half of 2025. The company said the increase in net interest income for both periods was primarily the result of higher loan balances, higher interest rates on loans and lower interest expense.

Net interest income after provision for credit losses for the three months ended June 30, 2026 was $3.8 million, up $627,000, or 19.7%, from $3.2 million a year earlier. 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 in the comparable 2025 period.

Non-interest income for the three months ended June 30, 2026 increased to $506,000 from $481,000 in the same quarter of 2025. For the six months ended June 30, 2026, non-interest income declined to $910,000 from $967,000 in the prior-year period.

Non-interest expense for the three months ended June 30, 2026 was $2.1 million, up $134,000, or 6.7%, from $2.0 million a year earlier. For the six months ended June 30, 2026, non-interest expense was $4.2 million, an increase of $200,000, or 5.0%, from the same period in 2025. The company said the increase in both periods was primarily due to higher salary and employee benefit costs and occupancy expenses, partially offset by lower professional fees.

Consolidated total assets increased $4.5 million, or 1.2%, to $386.1 million at June 30, 2026, from $381.6 million at December 31, 2025. The company said the asset growth was driven by higher loans and funded by increased deposits and advances from the Federal Home Loan Bank. Loans receivable, net, rose $11.2 million, or 3.7%, to $311.1 million at June 30, 2026, from $300.0 million at December 31, 2025, primarily due to growth in one- to four-family mortgage loans and commercial real estate loans.

Provision for credit losses was $45,000 for the three months ended June 30, 2026, compared with no provision in the same period of 2025. For the six months ended June 30, 2026, provision for credit losses was $90,000, compared with $7,000 in the comparable 2025 period. The company said the increase 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 attributed to a rise in real estate owned. Based on its analysis of delinquent loans, non-performing loans and classified loans, management said 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 declined $5.3 million, or 14.4%, to $31.4 million at June 30, 2026, from $36.7 million at December 31, 2025, due to maturities and paydowns. 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 higher 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 with $42.0 million, or 11.0% of total assets, at December 31, 2025.

Certain matters in this news release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may relate to expectations of the business environment in which the company operates and projections of future performance. They are based on current management expectations and may involve risks and uncertainties. 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.