SCYT Security Bancorp Inc (PK)

Security Bancorp, Inc. (OTCBB:SCYT) today announced consolidated earnings for the first quarter ended March 31, 2008. The Company is the holding company for Security Federal Savings Bank of McMinnville, Tennessee (�Bank�). Net income for the three months ended March 31, 2008 was $496,000, or $1.16 per share, compared to $352,000, or $0.83 per share, for the same quarter last year. Net interest income after provision for loan losses for the three months ended March 31, 2008 decreased 3.5% to $1.4 million from $1.5 million for the same period last year. The decrease in net interest income was attributable to the decrease in interest rates during the quarter. Non-interest income for the three months ended March 31, 2008 was $473,000 compared to $438,000 for the same quarter of 2007. The 8.0% increase was primarily attributable to an increase in trust service fees and gains on loans sold. Non-interest expense for the three months ended March 31, 2008 was $1.2 million compared to $1.3 million for the same quarter of 2007. The 12.8% decrease was primarily a result of a decrease in data processing expenses. The data processing conversion was completed in 2007. Consolidated assets of the Company decreased 1.8% to $141.7 million at March 31, 2008 from $144.2 million at December 31, 2007. Loans receivable, net, increased 0.5% from $97.2 million at December 31, 2007 to $97.7 million at March 31, 2008. The decrease in consolidated assets was primarily attributable to a decrease in public funds held at the Bank. The provision for loan losses was $31,000 for the three months ended March 31, 2008, compared to $32,000 for the same quarter last year. Non-performing assets increased 13.3% from $525,000 at December 31, 2007 to $595,000 at March 31, 2008. Non-performing assets to total assets were 0.42% at March 31, 2008, compared to 0.36% at December 31, 2007. Investment and mortgage-backed securities available-for-sale decreased 1.6% from $31.4 million at December 31, 2007 to $30.9 million at March 31, 2008 as a result of the maturities of securities. Deposits decreased $754,000 from $104.0 million at December 31, 2007 to $103.2 million at March 31, 2008. The 0.73% decrease was primarily attributable to a decrease in certificates of deposit. Stockholders� equity at March 31, 2008 was $15.4 million, or 10.9% of total assets, compared to $14.9 million, or 10.4% or total assets, at December 31, 2007. 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. SECURITY BANCORP, INC.CONSOLIDATED FINANCIAL HIGHLIGHTS(unaudited) (dollars in thousands) OPERATING DATA � Three months ended March 31, � � � 2008 � 2007 Interest Income � $2,284 � $2,460 Interest Expense � 847 � 971 Provision for loan losses � 31 � 32 Net interest income after provision for loan losses � 1,406 � 1,457 Non-Interest income � 473 � 438 Non-Interest expense � 1,154 � 1,323 Income before income tax expense � 725 � 572 Income tax expense � 229 � 220 Net income � $496 � $352 � � FINANCIAL CONDITION DATA � At March 31, 2008 � At December 31, 2007 Total Assets � $141,670 � $144,248 Investments and mortgage backed securities available for sale � 30,942 � 31,431 Investments and mortgage backed securities held to maturity � -0- � -0- Loans receivable, net � 97,717 � 97,191 Deposits � 103,234 � 103,988 FHLB advances � 3,000 � 7,000 Stockholders' equity � 15,433 � 14,940 Non-performing assets � 595 � 525 Non-performing assets to total assets � 0.42% � 0.36% Allowance for loan losses � 1,097 � 1,198 Allowance for loan losses to total loans rec, net � 1.11% � 1.22%