SCYT Security Bancorp Inc (PK)

Security Bancorp, Inc. (OTCBB:SCYT) today announced consolidated earnings for the first quarter ended March 31, 2009. The Company is the holding company for Security Federal Savings Bank of McMinnville, Tennessee (�Bank�).

Net income for the three months ended March 31, 2009 was $244,000, or $0.61 per share, compared to $496,000, or $1.16 per share, for the same quarter last year.

Net interest income after provision for loan losses for the three months ended March 31, 2009 decreased 22.9% to $1.1 million from $1.4 million for the same period last year. The decrease in net interest income was attributable to the decrease in interest rates during the previous quarter.

Non-interest income for the three months ended March 31, 2009 was $493,000 compared to $473,000 for the same quarter of 2008. The 4.2% increase was primarily attributable to an increase in the gains on loans sold as a result of mortgage refinance activity.

Non-interest expense for the three months ended March 31, 2009 was virtually unchanged at $1.2 million for the first quarter of 2008 and 2009.

Consolidated assets of the Company decreased 0.3% to $134.4 million at March 31, 2009 from $134.8 million at December 31, 2008. Loans receivable, net, increased 0.6% from $106.6 million at December 31, 2008 to $107.2 million at March 31, 2009. The decrease in consolidated assets was primarily attributable to a decrease in public funds held at the Bank.

The provision for loan losses was $49,000 for the three months ended March 31, 2009, compared to $31,000 for the same quarter last year. This increase is primarily attributable to an increase in the amount of the monthly provision as a result of management�s concerns regarding the state of the local economy. Non-performing assets decreased 21.7% from $957,000 at December 31, 2008 to $749,000 at March 31, 2009. Non-performing assets to total assets were 0.56% at March 31, 2009, compared to 0.71% at December 31, 2008.

Investment and mortgage-backed securities available-for-sale decreased 13.8% from $14.6 million at December 31, 2008 to $12.5 million at March 31, 2009 as a result of the maturities of securities.

Deposits increased $820,000 from $109.2 million at December 31, 2008 to $110.0 million at March 31, 2009. The 0.75% increase was primarily attributable to an increase in money market and savings account balances.

Stockholders� equity at March 31, 2009 remained virtually unchanged from December 31, 2008 at $13.9 million, or 10.3% of total assets.

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.

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SECURITY BANCORP, INC.CONSOLIDATED FINANCIAL HIGHLIGHTS(unaudited) (dollars in thousands)

OPERATING DATA � Three months ended

March 31,

� � 2009 � 2008 Interest Income � $1,727 � $2,284 Interest Expense � 594 � 847 Provision for loan losses � 49 � 31 Net interest income after provision for loan losses � 1,084 � 1,406 Non-Interest income � 493 � 473 Non-Interest expense � 1,180 � 1,154 Income before income tax expense � 397 � 725 Income tax expense � 153 � 229 Net income � $244 � $496 � � � � � � � � � FINANCIAL CONDITION DATA � At March 31, 2009 � At December 31, 2008 Total Assets � $134,376 � $134,790 Investments and mortgage backed securities available for sale � 12,548 � 14,562 Investments and mortgage backed securities held to maturity � -0- � -0- Loans receivable, net � 107,200 � 106,600 Deposits � 110,057 � 109,237 FHLB advances � 5,758 � 6,000 Stockholders' equity � 13,903 � 13,857 Non-performing assets � 749 � 957 Non-performing assets to total assets � 0.56% � 0.71% Allowance for loan losses � 1,091 � 1,146 Allowance for loan losses to total loans rec, net � 1.01% � 1.06% �