Security Bancorp, Inc. Announces Third Quarter Earnings

(OTC:SCYT) Security Bancorp, Inc. announced 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, 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. Net interest income for the three months ended September 30, 2026 increased $504,000, or 14.5%, to $4.0 million from $3.5 million for the same period in 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 same period in 2025. The increase in net interest income was primarily due to an increase in loans, higher interest rates on loans, and 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 same period in 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, primarily due to a decrease in gains on sale of secondary market loans. 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, mainly due to higher salary, employee benefits, and occupancy expenses, offset by lower professional fees. 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, due to increases in loans funded by higher deposits and Federal Home Loan Bank advances. 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, primarily from growth in one to four family mortgage and commercial real estate loans. Provision for credit losses for the three months ended September 30, 2026 was $45,000, compared to $29,000 for the same period in 2025. For the nine months ended September 30, 2026, provision for credit losses was $135,000 compared to $36,000 in the comparable period in 2025, an increase of $99,000, due to significant loan growth. Non-performing assets increased $943,000 to $947,000 at September 30, 2026 from $4,000 at December 31, 2025, attributable to an increase in real estate owned. The allowance for loan losses was $2.9 million at September 30, 2026, which management believes is adequate to absorb known and inherent risks. 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, due to maturity and paydowns. 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, primarily due 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. Michael D. Griffith is President & Chief Executive Officer.