Security Bancorp announced consolidated earnings for the first quarter of its fiscal year ended December 31, 2015. Net income for the three months ended March 31, 2015 was $360,000, or $0.93 per share.
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This compares to $293,000, or $0.76 per share, for the same quarter last year. The company is the holding company for Security Federal Savings Bank of McMinnville, Tennessee.
For the three months ended March 31, 2015, net interest income increased by $71,000, or 5.5%, to $1.4 million from $1.3 million for the same period the previous year.
Total interest income increased by $56,000, or 3.8%, during the three months ended March 31, 2015, but remained at $1.5 million, unchanged from the comparable period in 2014. The increase in total interest income for the three months ended March 31, 2015 was primarily attributable an increase in income from investment securities.
Total interest expense decreased $15,000, or 7.2%, to $193,000 for the three months ended March 31, 2015 from $208,000 for the same period in 2014. The decrease in interest expense was due to the repricing of maturing deposits.
Net interest income after provision for loan losses for the three months ended March 31, 2015 increased by $67,000, or 5.6%, to $1.3 million from $1.2 million the same period the previous year.
Non-interest income for the three months ended March 31, 2015 was $498,000 compared to $515,000 for the same quarter of 2014, a decrease of $17,000, or 3.3%. The decrease was attributable to a decline in service charges and fees on customer deposits and trust service fees.
Non-interest expense for the three months ended March 31, 2015 decreased $6,000, or 0.48%, but remained at $1.2 million, relatively unchanged from the comparable period in 2014.
Consolidated assets of the Company increased $8.4 million, or 4.8%, to $184 million at March 31, 2015 from $175.6 million at December 31, 2014. Loans receivable, net, decreased $532,000, or 0.42%, to $127.3 million at March 31, 2015 from $127.8 million at December 31, 2014.
The increase in consolidated assets was primarily attributable to an increase in customer deposits which led to an increase in investment securities.
The provision for loan losses was $97,000 for the three months ended March 31, 2015, an increase of $4,000, or 4.3%, from $93,000 for the same quarter last year.
Non-performing assets increased $366,000, or 32.3%, to $1.5 million at March 31, 2015 from $1.1 million at December 31, 2014. The increase is attributable to an increase in non-performing loans.
Based on its analysis of delinquent loans, non-performing loans and classified loans, management believes that the Company's allowance for loan losses of $1.1 million at March 31, 2015 is adequate to absorb known and inherent risks in the loan portfolio at that date.
At March 31, 2015 the allowance for loan losses to non-performing assets was 73.1% compared to 96.9% at December 31, 2014.
Investments and mortgage-backed securities available-for-sale increased $7.2 million, or 31.5%, to $30.1 million at March 31, 2015 from $22.9 million at December 31, 2014. The increase is a result of the purchase of securities.
Deposits increased $7.3 million, or 4.9%, to $156.6 million at March 31, 2015 from $149.3 million at December 31, 2014. The increase was primarily attributable to an increase in non-interest bearing demand deposits and money market accounts.
Stockholders' equity at March 31, 2015 was $18.1 million, or 9.9% of total assets, compared to $17.8 million, or 10.1% of total assets at December 31, 2014. ■