[2] Security Bancorp, Inc. Announces First Quarter Earnings.

Business Editors

MCMINNVILLE, Tenn.--(BUSINESS WIRE)--April 24, 2000

Security Bancorp, Inc. (Nasdaq"SCYT") today announced consolidated earnings for the first quarter ended March 31, 2000.

The Company is the holding company for Security Federal Savings Bank of McMinnville, Tennessee.

Net income for the three months ended March 31, 2000 was $186,000, or 47 cents per share, compared to $175,000, or 45 cents per share, for the same quarter last year. The increase resulted primarily from an increase in net interest income, partially offset by an increase in non-interest expenses.

Net interest income after provision for loan losses for the three months ended March 31, 2000 increased 18.9% to $672,000 from $565,000 for the same period a year ago. The increase was attributable to a $6,700,000 increase in loans receivable.

Non-interest income for the three months ended March 31, 2000 was $254,000 compared to $281,000 for the same period a year ago. The decrease was attributable to a decline in income from the mortgage banking department as a result of the increase in interest rates.

Non-interest expense for the three months ended March 31, 2000 was $621,000 compared to $559,000 for the same period a year ago. The increase was primarily as a result of additional costs associated with data processing and personnel costs.

Consolidated assets of the Company increased from $72,204,000 at December 31, 1999 to $75,008,000 at March 31, 2000. Loans receivable, net, increased from $60,189,000 at December 31, 1999 to $60,953,000 at March 31, 2000.

The increase in loans receivable, net, for the three months ended March 31, 2000 was attributable to net increases in residential loans of $300,000, commercial loans of $100,000 and consumer loans of $400,000.

The provision for loan losses was $45,000 for the three months ended March 31, 2000 compared to $34,000 for the same period a year earlier. The increase was primarily due to allocating more to the provision because of the increase in loans receivable. Non-performing assets were $213,000 at March 31, 2000 compared to $537,000 at December 31, 1999.

The decrease is attributed to a decline in other real estate owned. Non-performing assets to total assets were .3% at March 31, 2000 compared to .7% at March 31, 1999.

Investment and mortgage-backed securities available-for-sale decreased from $5,742,000 at December 31, 1999 to $5,649,000 at March 31, 2000 as a result of repayment of principal on mortgage-backed securities and market value changes.

Investment and mortgage-backed securities held-to-maturity decreased from $236,000 at December 31, 1999 to $216,000 at March 31, 2000 as a result of repayment of principal on mortgage-backed securities.

Deposits increased $4,024,000 from $57,455,000 at December 31, 1999 to $61,479,000 at March 31, 2000. This increase was primarily attributable to an increase in certificates of deposit and personal checking accounts.

Stockholders' equity at March 31, 2000 was $7,693,000, or 10.3% of total assets, compared to $7,507,000, or 10.4% of total assets, at December 31, 1999.

                        SECURITY BANCORP, INC.
                   Consolidated Financial Highlights
    (unaudited)           (dollars in thousands except per share data)

                                        Three Months Ended March 31,
    OPERATING DATA                      2000                1999
                                      -------------------------------
Interest income                       $  1,429            $  1,223
Interest expense                           712                 624
Provision for loan losses                   45                  34
Net interest income after provision
 for loan losses                           672                 565
Non-interest income                        254                 281
Non-interest expense                       621                 559
Income before income tax expense           305                 287
Income tax expense                         119                 112
Net income                            $    186            $    175
Net income per share                  $    .47            $    .45
Weighted average shares outstanding    398,037             391,581

FINANCIAL CONDITION DATA              At March 31,    At December 31,
                                         2000               1999
                                      -------------------------------
Total Assets                          $ 75,008            $ 72,204
Investment and mortgage-backed
 securities Available-for-sale           5,649               5,742
Investment and mortgage-backed
 securities Held-to-maturity               216                 236
Loans receivable, net                   60,953              60,189
Deposits                                61,479              57,455
FHLB advances                            5,500               6,800
Stockholders' equity                     7,693               7,507
Non-performing assets                      213                 537
Non-performing assets to total
 assets                                     .3%                 .7%
Allowance for loan losses                  637                 649
Allowance for loan losses to total
 loans receivable, net                     1.0%                1.1%