Security Bank Corporation Announces First Quarter 2009 Financial Results and Banks Enter Agreements With FDIC and State


MACON, Ga., April 24, 2009 (GLOBE NEWSWIRE) -- Security Bank Corporation (Nasdaq:SBKC) today reported a net loss of $18.5 million for the first quarter ended March 31, 2009, compared with a net loss of $24.2 million for the first quarter of 2008. Diluted loss for the first quarter of 2009 was $0.79 per share compared to a loss of $1.22 per share for the comparable year ago period. The reduction in net loss for the first quarter of 2009 was primarily driven by a $30.1 million decrease in the provision for loan losses which more than offset a decrease in net interest income of $10.9 million. On a pre-tax, pre-provision basis, losses for the first quarter of 2009 were $8.2 million versus income of $3.8 million for the first quarter of 2008.

Security Bank Corporation also announced today that five of its six banking subsidiaries have entered into Cease and Desist Orders with the Federal Deposit Insurance Corporation (FDIC) and with the State of Georgia Department of Banking and Finance. The orders set forth requirements for the banks to take actions to address capital levels and lending policies, and place restrictions on dividends by the banks to Security Bank Corporation and restrictions on brokered deposits, among other items. Security Bank Corporation has also withdrawn its application to participate in the TARP Capital Purchase Program.

Deposit and retirement accounts continue to be insured for a minimum of $250,000 per depositor by the FDIC through December 2009. Because Security Bank is participating in the FDIC's Transaction Account Guarantee Program, most types of checking accounts are insured without limit.

Tony E. Collins, Security Bank Corporation's President and CEO commented, "Our financial results continue to be impacted by the unprecedented economic conditions we are facing, as the residential housing market remains under significant pressure. The consent orders highlight a process that involves working with the FDIC and State to reduce the risks in our lending portfolio and improve the quality of our asset management. We have been working closely with our regulators throughout this process and have already initiated many of the steps outlined in the orders. We greatly appreciate the continued support of our customers and our employees who remain committed to providing our customers with the highest level of service."

Liquidity

Security Bank Corporation currently has approximately $481 million of available liquidity in the form of cash and cash equivalents, unpledged securities and available secured fed funds lines. This represents approximately 17% of total assets as of March 31, 2009.

Asset Quality

Nonperforming assets (nonaccrual loans and OREO) at the end of first quarter 2009 were $391 million, or 14.0% of total assets compared to 11.5% at the end of the fourth quarter of 2008 and 7.9% at the end of the first quarter in 2008. While Security Bank Corporation sold $7 million of OREO during the first quarter of 2009, new properties totaling approximately $19 million were moved to OREO from nonaccrual loans. Approximately $91 million of loans were placed on nonaccrual status during the first quarter. Security Bank Corporation charged-off approximately $18 million in loans resulting in net charge-offs to average loans of 3.7% annualized for the first quarter of 2009, a decrease from 5.9% in net charge-offs to average loans annualized for the fourth quarter of 2008. Net charge-offs to average loans were 4.4% annualized for the first quarter of 2008. Security Bank Corporation increased its allowance for loan losses to 2.8% of loans receivable at March 31, 2009, or $53.5 million versus 2.3% of loans or $49.7 million at March 31, 2008.

Balance Sheet

Loans receivable totaled $1.93 billion at March 31, 2009, down 12% from $2.18 billion at March 31, 2008. On a sequential basis, loans declined 11% annualized with a 3% annualized decline in the middle and coastal Georgia markets, a 19% annualized decline in the Atlanta market and a 14% annualized decline in Security Real Estate Services, Inc.

Total deposits were $2.40 billion at March 31, 2009 an increase of 4% from $2.31 billion at March 31, 2008 and decreased 1.5% from $2.44 billion at December 31, 2008. Total assets decreased 1% to $2.79 billion at March 31, 2009, compared to $2.82 billion at March 31, 2008, and decreased 2% compared with $2.85 billion at December 31, 2008.

Tangible shareholders' equity at March 31, 2009 declined to $64.1 million from $179.4 million at March 31, 2008, primarily reflecting net losses incurred during the period.

Net Interest Income

Net interest income for the first quarter of 2009 was $3.9 million, a decrease of 74% from $14.8 million when compared to the first quarter of 2008. The decrease is primarily the result of a decline in the net interest margin and the significant increase in non-performing assets in Security Bank Corporation's loan portfolio. The net interest margin (on a fully tax-equivalent basis ("FTE")) was 0.60% for the quarter ended March 31, 2009, compared to 1.02% for the fourth quarter of 2008 and 2.33% for the comparable period one year ago. The decrease in the net interest margin in the first quarter of 2009 on a year-over-year and sequential quarterly basis was the result of costs associated with the current credit cycle, including carrying costs and reversals of interest for nonaccruing loans, liquidity costs, the decline in market interest rates and the asset-sensitive nature of the balance sheet.

Noninterest Income and Expense

Noninterest income for the first quarter of 2009 decreased $1.0 million to $4.8 million compared to the first quarter of 2008 due primarily to a decrease in mortgage banking fees of $1.0 million. During the fourth quarter of 2008 Security Bank Corporation outsourced its personal mortgage-lending department to a mortgage company in Texas.

Noninterest expense for the first quarter of 2009 was $16.9 million, a decrease of $19.0 million sequentially, and essentially flat with the first quarter 2008 level. Excluding increased credit cycle costs and increases in foreclosure expenses, losses on sales of OREO and FDIC insurance premiums, noninterest expense was down $2.3 million or 22% over the first quarter 2008 level. The decline in controllable noninterest expense was primarily due to reduced salary and benefits expense and the elimination of directors' fees at the holding company and bank level.

This press release, including the attached selected unaudited financial tables, which are a part of this release, contains financial information determined by methods other than in accordance with generally accepted accounting principles ("GAAP"). These non-GAAP financial measures are "tangible book value," "tangible equity to tangible assets" and "return on average tangible equity." Security Bank Corporation's management uses these non-GAAP measures in its analysis of Security Bank Corporation's performance.

Tangible book value is defined as total equity reduced by recorded intangible assets, net of related deferred tax benefits. Tangible book value per share is defined as tangible book value divided by total common shares outstanding. This measure is important to many investors in the marketplace who are interested in changes from period to period in book value per share exclusive of changes in intangible assets. Goodwill, an intangible asset that is recorded in a purchase business combination, has the effect of increasing total book value while not increasing the tangible assets of the company. For companies such as Security Bank Corporation that have engaged in multiple business combinations, purchase accounting requires the recording of significant amounts of goodwill related to such transactions. Tangible equity to tangible assets is the ratio of tangible equity defined as total equity reduced by recorded intangible assets, net of related deferred tax benefits, to tangible assets defined as total assets reduced by recorded intangible assets, net of related deferred tax benefits. Tangible equity to tangible assets is an important measure of Security Bank Corporation's capital strength without the effects of purchase accounting as noted above. Return on average tangible equity is defined as earnings for the period (annualized for the quarterly period or year-to-date period, as applicable) divided by average equity reduced by average goodwill and other intangible assets, net of related deferred tax benefits. Security Bank Corporation's management includes this measure because it believes that it is important when measuring Security Bank Corporation's performance exclusive of the effects of goodwill and other intangibles recorded in recent acquisitions, and many investors use this measure as part of their analysis of Security Bank Corporation.

These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Please refer to the "Reconciliation Table" in the attached schedules for a more detailed analysis of these non-GAAP measures and the most directly comparable GAAP measures.

About Security Bank Corporation

Based in Macon, Georgia, Security Bank Corporation is a multi-bank holding company with assets of $2.8 billion at March 31, 2009. Security Bank Corporation operates six community banks with banking offices located throughout middle Georgia, coastal Georgia and north metropolitan Atlanta.

Security Bank Corporation common stock is traded on the NASDAQ Global Select Market under the ticker symbol "SBKC." You may obtain copies of all documents that Security Bank Corporation files with the Securities and Exchange Commission, free of charge, at the SEC's website at www.sec.gov, including the Cease and Desist Orders referenced in this release that Security Bank Corporation will file on Form 8-K on April 24, 2009, or on Security Bank Corporation's website at www.securitybank.net under the "Investor Information" tab. In addition, copies of these documents may also be obtained from us without charge by directing a written request to Security Bank Corporation, 4219 Forsyth Road, Macon, Georgia 31210, Attention: Investor Relations.

Safe Harbor

This press release contains forward-looking statements as defined by federal securities laws, including statements about Security Bank Corporation's loan loss provisions, capital or liquidity adequacy, deferred tax asset and any potential impairment, net charge-offs, non-performing assets, net interest margin changes, compliance with regulatory orders, the overall economic cycle and its impact on real estate values in Security Bank Corporation's markets, loan growth, and Security Bank Corporation's long-term prospects, among others. Statements contained in this press release that are not historical facts are forward-looking statements. Forward-looking statements may address issues involving significant risks, uncertainties, estimates and assumptions made by management. Security Bank Corporation's ability to accurately project results or predict the effects of future plans or strategies is inherently limited. Although Security Bank Corporation believes that the expectations and estimates reflected in its forward-looking statements are based on reasonable assumptions, actual results and performance could differ materially from those set forth in the forward-looking statements. Please refer to Security Bank Corporation's public filings with the Securities and Exchange Commission for a summary of important factors and risk factors that could affect Security Bank Corporation's financial results and operations and its forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements. Security Bank Corporation does not intend, and undertakes no responsibility to update or revise any forward looking statement, whether as a result of difference in actual results, changes in assumptions or changes in other factors affecting such statements, except as required by law.



                   Security Bank Corporation
              Selected Consolidated Financial Data
        (Dollars in Thousands, except Per Share Amounts)
                           Unaudited

                                            Quarters Ended
                                               March 31,          %
                                           2009        2008     Change
                                           ----        ----     ------

 RESULTS SUMMARY:
 Net interest income                    $    3,907  $   14,799   -73.6%
 Provision for loan losses                  12,108      42,199   -71.3%
 Noninterest income                          4,849       5,862   -17.3%
 Foreclosed property expenses                1,949       1,373    42.0%
 Losses (gains) on sales of ORE              2,523         274   820.8%
 Other noninterest expense                  12,439      15,260   -18.5%
 Income taxes                               (1,811)    (14,247)  -87.3%
 Net income (loss)                         (18,452)    (24,198)  -23.7%

 PER SHARE:
 Basic earnings (loss)                  $    (0.79) $    (1.22)  -35.2%
 Diluted earnings (loss)                     (0.79)      (1.22)  -35.2%
 Cash dividends declared                        --       0.088  -100.0%
 Book value                                   2.83       13.34   -78.8%
 Tangible book value                          2.75        7.72   -64.4%

 KEY PERFORMANCE RATIOS(a):
 Return on average tangible equity          -97.91%     -53.31%
 Return on average assets                    -2.63%      -3.45%
 Efficiency ratio                           193.14%      81.83%
 Net interest margin (FTE)                    0.60%       2.33%
 Net charge-offs to average loans             3.73%       4.43%

 BALANCE SHEET SUMMARY - END OF PERIOD
 Investment securities                  $  404,689  $  306,018    32.2%
 Mortgage loans Held for sale                   --       5,759  -100.0%
 Loans receivable                        1,928,758   2,181,557   -11.6%
 Allowance for loan losses                  53,545      49,749     7.6%
 Total assets                            2,786,149   2,818,477    -1.1%
 Deposits                                2,402,469   2,309,671     4.0%
 Other borrowed money                      289,673     170,066    70.3%
 Shareholders' equity                       65,934     309,876   -78.7%
 Tangible equity to tangible assets           2.30%       6.67%  -65.5%

 ASSET QUALITY - END OF PERIOD
 Nonaccrual loans                       $  285,308  $  186,520    53.0%
 Loans 90 Days Past Due and Accruing            --          68  -100.0%
 Other real estate owned                   105,581      35,749   195.3%
  Total nonperforming assets               390,889     222,337    75.8%
 Allowance for loan losses/loans              2.78%       2.28%

 (a) Income annualized based on number of days in the period, except
     efficiency ratio

 NOTE: Refer to the attached GAAP to non-GAAP reconciliation


                      Security Bank Corporation
        Average Balance Sheet and Net Interest Income Analysis
                        (Dollars in Thousands)
                              Unaudited

                                               Quarter Ended
                                               March 31, 2009
                                            Average     Income/  Yield/
                                            Balance     Expense   Rate
                                            -------     -------   ----
 ASSETS
 Earning assets:
  Interest-bearing deposits and fed funds
   sold                                    $  300,772  $     129  0.17%
  Investment securities                       401,072      3,320  3.36%
  Mortgage Loans Held for Sale                      0          0  0.00%
  Loans                                     1,955,732     23,891  4.95%
  Other earning assets                          1,238         17  5.57%
   Total earning assets                     2,658,814     27,357  4.17%
 Non-earning assets                           187,659
                                           ----------

   Total assets                            $2,846,473
                                           ==========

 LIABILITIES AND SHAREHOLDERS' EQUITY
 Interest-bearing liabilities:
  Savings and interest-bearing
   transaction                             $  377,679  $   1,655  1.78%
  Time deposits                             1,921,980     18,907  3.99%
 Borrowings                                   295,752      2,875  3.94%
   Total interest-bearing liabilities       2,595,411     23,437  3.66%
 Noninterest-bearing liabilities:
  Noninterest bearing deposits                145,065
  Other noninterest-bearing liabilities        27,605
   Total liabilities                       $2,768,081
                                           ----------

 Shareholders' Equity                          78,392
                                           ----------

  Total liabilities and shareholders'
   equity                                  $2,846,473
                                           ==========

 Interest rate spread                                             0.51%

 Net interest income                                   $   3,920

 Net interest margin (FTE)                                  0.60%


 Security Bank Corporation (SBKC)
 Selected Financial Information
 (Amounts in thousands, except per share data)

                           2009                    2008
                        ----------  ----------------------------------
                           1st       Dec. 31/      4th         3rd
                         Quarter       YTD       Quarter     Quarter
                        ----------  ----------------------------------
 Period-End Balance
  Sheet
 ------------------
 Total Assets           $2,786,149  $2,846,054  $2,846,054  $2,888,353
 Interest-Bearing
  Deposits and Fed
  Funds Sold               252,189     277,472     277,472  $   14,556
 Total Securities          404,689     407,343     407,343     347,020
 Mortgage Loans held
  for Sale                      --          --          --       4,780
 Loans:
   Commercial Real-
    Estate                 866,580     906,909     906,909     942,075
   Construction/A&D(2)     623,461     652,806     652,806     715,631
   Personal Real-Estate    158,249     157,405     157,405     152,604
   Other                   280,468     264,356     264,356     239,799
  Total Loans            1,928,758   1,981,476   1,981,476   2,050,109
 Allowance for loan
  losses                    53,545      59,437      59,437      60,442
 Other earning assets        1,238       1,238       1,238       1,238
   Total Earning Assets  2,586,874   2,667,529   2,667,529   2,417,703
 Cash and Due From Banks    34,955      37,216      37,216     283,238
 Other Real Estate         105,581      94,717      94,717      83,362
 Intangibles:
  Goodwill                      --          --          --      18,373
  Core-Deposit               3,038       3,241       3,241       3,444
 Deposits:
  Demand Deposits          147,942     153,006     153,006     145,416
  Interest bearing
   deposits              2,254,527   2,285,130   2,285,130   2,257,138
   Total Deposits        2,402,469   2,438,136   2,438,136   2,402,554
 Fed Funds purchased &
  repo agreements           25,999      36,844      36,844      31,343
 Other borrowed funds      263,674     263,777     263,777     266,558
 Shareholders Equity        65,934      84,708      84,708     166,662

 =====================================================================
 Average Balance Sheet
 ---------------------
 Total Assets           $2,846,473  $2,870,635  $2,900,222  $2,863,228
 Total Securities          401,072     338,437     362,556     345,775
 Mortgage Loans held
  for Sale                      --       4,129       1,994       3,869
 Loans:
   Commercial Real-
    Estate                 883,298     954,279     918,047     965,881
   Construction/A&D        640,090     777,000     688,792     742,968
   Personal Real-Estate    157,932     157,160     154,547     158,421
   Other                   274,412     231,497     262,853     240,954
 Total Loans             1,955,732   2,119,936   2,024,239   2,108,224
 Other earning assets      302,010     161,701     287,946     170,505
  Total Earning Assets   2,658,814   2,624,203   2,676,735   2,628,373
 Cash and Due From
  Banks                     32,114      27,031      29,382      44,079
 Other Real Estate          97,843      63,459      88,808      77,300
 Deposits:
  Demand Deposits          145,065     154,173     141,830     157,289
  Interest bearing
   deposits
   Savings                  13,862      14,978      14,090      15,112
   NOW                     310,956     348,413     302,184     333,136
   Money Market             52,861      86,857      58,768      81,446
   Time deposits >
    $100,000             1,082,354   1,082,546   1,107,146   1,099,022
   Time deposits <
    $100,000               839,626     680,342     790,572     709,688
   Total Deposits        2,444,724   2,367,309   2,414,590   2,395,693
 Fed Funds purchased &
  repo agreements           32,642      37,535      37,697      32,168
 Other borrowed funds      263,110     199,771     265,201     230,453
 Shareholders Equity        78,392     240,934     160,690     184,340

 =====================================================================
 Results of Operations
 ---------------------
 Interest Income        $   27,344  $  145,948  $   31,367  $   36,150
 Interest Expense           23,437      98,526      24,544      24,126
 Net Interest Income         3,907      47,422       6,823      12,024
 Loan loss provision        12,108     128,070      29,129      26,359
 Service charges on
  deposit accounts           1,915       9,183       2,218       2,425
 Securities Gains
  (Losses)                   2,626       3,334       1,299          --
 Other income                  308       6,118         402       1,339
  Total noninterest
   income                    4,849      18,635       3,919       3,764
 Salaries and benefits       6,255      31,623       7,004       7,803
 Occupancy and equipment     1,751       6,401       1,503       1,848
 Foreclosed Property
  Expenses                   1,949       7,003       2,202       2,104
 Losses (Gains) on
  Sales of ORE               2,523       8,235       2,487       3,904
 Other noninterest
  expense                    4,433     147,826      22,681       5,391
  Total noninterest
   expense                  16,911     201,088      35,877      21,050
 Pre-tax earnings (loss)   (20,263)   (263,101)    (54,264)    (31,621)
 Income Taxes               (1,811)     (8,735)     34,310     (11,472)
 Net income (loss)      $  (18,452) $ (254,366) $  (88,574) $  (20,149)

 Earnings (loss) per
  share-basic           $    (0.79) $   (11.36) $    (3.81) $    (0.87)
 Earnings (loss) per
  share-diluted         $    (0.79) $   (11.36) $    (3.81) $    (0.87)
 End of period shares
  outstanding           23,274,639  23,274,639  23,274,639  23,259,539
 Weighted average
  diluted shares o/s    23,274,639  22,387,908  23,265,091  23,247,824
 Tax equivalent
  adjustment                    13          94          15          15
 Net interest income
  (FTE)                      3,920      47,516       6,838      12,039
 Effective Tax Rate           8.94%       3.32%     -63.23%      36.28%

 =====================================================================
 Stock and related per
  share data:
 ---------------------
 Book value             $     2.83  $     3.64  $     3.64  $     7.17
 Tangible book value          2.75        3.55        3.55        6.28
 Dividends declared per
  share                         --      0.1313          --          --

 =====================================================================
 Other Key Ratios/Data:
 ----------------------
 Return on average
  tangible equity(1)       -97.91%     -153.17%    -250.92%     -48.95%
 Return on average
  assets(1)                 -2.63%       -8.86%     -12.15%      -2.80%
 Net interest margin
  (FTE)(1)                    0.60%       1.81%       1.02%       1.82%
 Efficiency ratio (FTE)     192.84%     303.98%     333.54%     133.21%
 Tangible Equity/
  Tangible Assets             2.30%       2.91%       2.91%       5.10%

 =====================================================================
 Loan Performance Data:
 ----------------------
 Nonaccrual loans       $  285,308  $  232,436  $  232,436  $  199,907
 Loans 90 Days Past Due
  and Accruing                  --         146         146          --
 Other real estate (ORE)   105,581      94,717      94,717      83,362
  Total nonperforming
   assets                  390,889     327,299     327,299     283,269
 Net charge-offs            18,000     100,331      30,134      14,369
 Reversal of Interest        1,456       6,751       1,487         968
 Forfeited Interest
  from NPA's                 5,025      16,477       4,773       4,704
 Allowance for loan
  losses/loans                2.78%       3.00%       3.00%       2.95%
 NPA's/Loans plus ORE        19.21%      15.76%      15.76%      13.28%
 Nonperforming assets/
  total assets               14.03%      11.50%      11.50%       9.81%
 Net charge-offs to
  average loans(1)            3.73%       4.73%       5.92%       2.71%
 =====================================================================

                                             2008              2007
                                    ----------------------  ----------
                                       2nd         1st       Dec. 31/
                                     Quarter     Quarter       YTD
                                    ----------------------  ----------
 Period-End Balance Sheet
 ------------------------
 Total Assets                       $2,877,383  $2,818,477  $2,833,071
 Interest-Bearing Deposits and Fed
  Funds Sold                        $   94,665  $   25,466      13,627
 Total Securities                      342,994     306,018     305,399
 Mortgage Loans held for Sale            6,192       5,759       7,605
 Loans:
   Commercial Real-Estate              983,733     963,384     947,371
   Construction/A&D (2)                772,179     862,532     898,690
   Personal Real-Estate                160,878     157,040     158,244
   Other                               225,472     198,601     178,008
  Total Loans                        2,142,262   2,181,557   2,182,313
 Allowance for loan losses              48,452      49,749      31,698
 Other earning assets                    1,238       1,238       1,238
   Total Earning Assets              2,587,351   2,520,038   2,510,182
 Cash and Due From Banks               117,970      71,313      91,644
 Other Real Estate                      62,814      35,749      28,175
 Intangibles:
  Goodwill                              18,373     128,074     128,571
  Core-Deposit                           3,647       3,879       4,125
 Deposits:
  Demand Deposits                      172,610     164,842     158,759
  Interest bearing deposits          2,283,016   2,144,829   2,139,946
   Total Deposits                    2,455,626   2,309,671   2,298,705
 Fed Funds purchased
     & repo agreements                  36,084      31,328      68,417
 Other borrowed funds                  180,340     138,738     137,909
 Shareholders Equity                   183,285     309,876     306,693

 =====================================================================
 Average Balance Sheet
 ---------------------
 Total Assets                       $2,877,604  $2,818,622  $2,591,947
 Total Securities                      348,677     296,395     216,610
 Mortgage Loans held for Sale            4,782       5,896       6,328
 Loans:
   Commercial Real-Estate              974,558     958,903     907,729
   Construction/A&D                    802,453     875,131     825,302
   Personal Real-Estate                157,616     158,069     153,682
   Other                               219,744     201,989     195,286
 Total Loans                         2,154,371   2,194,092   2,081,999
 Other earning assets                  100,342      55,246      36,866
     Total Earning Assets            2,608,172   2,551,629   2,341,803
 Cash and Due From Banks                34,520      35,272      51,442
 Other Real Estate                      53,994      33,299      15,970
 Deposits:
  Demand Deposits                      162,222     155,389     163,712
  Interest bearing deposits
   Savings                              15,741      14,979      16,005
   NOW                                 376,409     382,597     373,522
   Money Market                         96,607     110,976     145,619
   Time deposits > $100,000          1,067,626   1,061,895     892,248
   Time deposits < $100,000            637,784     575,833     521,923
   Total Deposits                    2,356,389   2,301,669   2,113,029
 Fed Funds purchased
     & repo agreements                  39,601      44,745      43,881
 Other borrowed funds                  171,993     130,379     100,430
 Shareholders Equity                   306,580     313,635     313,504

 =====================================================================
 Results of Operations
 ---------------------
 Interest Income                    $   37,689  $   40,742  $  192,840
 Interest Expense                       23,913      25,943     102,316
 Net Interest Income                    13,776      14,799      90,524
 Loan loss provision                    30,383      42,199      32,660
 Service charges on deposit
  accounts                               2,253       2,287       9,363
 Securities Gains (Losses)                   1       2,034          (3)
 Other income                            2,836       1,541       9,622
  Total noninterest income               5,090       5,862      18,982
 Salaries and benefits                   8,080       8,736      35,061
 Occupancy and equipment                 1,501       1,549       6,189
 Foreclosed Property Expenses            1,324       1,373       2,879
 Losses (Gains) on Sales of ORE          1,570         274       1,944
 Other noninterest expense             114,779       4,975      21,002
  Total noninterest expense            127,254      16,907      67,075
 Pre-tax earnings (loss)              (138,771)    (38,445)      9,771
 Income Taxes                          (17,326)    (14,247)      3,183
 Net income (loss)                  $ (121,445) $  (24,198) $    6,588

 Earnings (loss) per share-basic    $    (5.23) $    (1.22) $     0.35
 Earnings (loss) per share-diluted  $    (5.23)      (1.22)       0.34
 End of period shares outstanding   23,248,585  23,233,634  18,912,264
 Weighted average diluted shares
  o/s                               23,235,668  19,810,520  19,225,069
 Tax equivalent adjustment                  15          50         445
 Net interest income (FTE)              13,791      14,849      90,969
 Effective Tax Rate                      12.49%      37.06%      32.58%

 =====================================================================
 Stock and related per share data:
 ---------------------------------
 Book value                         $     7.88  $    13.34  $    16.22
 Tangible book value                      7.00        7.72        9.28
 Dividends declared per share           0.0438      0.0875        0.35

 =====================================================================
 Other Key Ratios/Data:
 ----------------------
 Return on average tangible
  equity(1)                            -275.40%     -53.31%       3.63%
 Return on average assets(1)           - 16.97%      -3.45%       0.25%
 Net interest margin (FTE)(1)             2.13%       2.33%       3.88%
 Efficiency ratio (FTE)                 673.98%      81.63%      61.00%
 Tangible Equity/Tangible Assets          5.69%       6.67%       6.50%

 =====================================================================
 Loan Performance Data:
 ----------------------
 Nonaccrual loans                   $  186,139  $  186,520  $   50,635
 Loans 90 Days Past Due and
  Accruing                                  --          68         242
 Other real estate (ORE)                62,814      35,749      28,175
   Total nonperforming assets          248,953     222,337      79,052
 Net charge-offs                        31,680      24,148      23,298
 Reversal of Interest                    1,268       3,028       1,874
 Forfeited Interest from NPA's           4,259       2,741       4,435
 Allowance for loan losses/loans          2.26%       2.28%       1.45%
 NPA's/Loans plus ORE                    11.29%      10.03%       3.58%
 Nonperforming assets/total assets        8.65%       7.89%       2.79%
 Net charge-offs to average
  loans(1)                                5.91%       4.43%       1.12%
 =====================================================================

 (1) The actual number of days in the period was used to annualize
     income
 (2) At March 31, 2009, approximately 60% of loans were residential
     and 40% of loans were commercial.

 NOTE: Refer to the attached GAAP to non-GAAP reconciliation


 Security Bank Corporation (SBKC)
 GAAP Reconciliation Table
 (Amounts in thousands, except per share data)

                           2009                    2008
                        ----------------------------------------------
                           1st        Dec 31/      4th         3rd
                         Quarter        YTD      Quarter     Quarter
                        ----------------------------------------------

 Reconciliation Table-
  GAAP to non-GAAP:
 ---------------------

 Book Value per share   $     2.83  $     3.64  $     3.64  $     7.17
 Effect of intangible
  assets per share           (0.08)      (0.09)      (0.09)      (0.89)
                        ----------------------------------------------
 Tangible book value    $     2.75  $     3.55  $     3.55  $     6.28

 Equity                 $   65,934  $   84,708  $   84,708  $  166,662
 Intangible assets           3,038       3,241       3,241      21,817
 Less tax effect of
  Core-Deposit
  Intangible (38%)          (1,154)     (1,232)     (1,232)     (1,309)
                        ----------------------------------------------
 Tangible equity        $   64,050  $   82,699  $   82,699  $  146,154

 Assets                 $2,786,149  $2,846,054  $2,846,054  $2,888,353
 Intangible assets           1,884       2,009       2,009      20,508
                        ----------------------------------------------
 Tangible assets        $2,784,265  $2,844,045  $2,844,045  $2,867,845

 Equity/Assets                2.37%       2.98%       2.98%       5.77%
 Effect of intangible
  assets                     -0.07%      -0.07%      -0.07%      -0.67%
                        ----------------------------------------------
 Tangible Equity/
  Tangible Assets             2.30%       2.91%       2.91%       5.10%

 Average Equity         $   78,392  $  240,934  $  160,690  $  184,340
 Average Intangible
  assets                     3,165      76,263      21,540      21,944
 Less tax effect of
  Core-Deposit
  Intangible (38%)          (1,203)     (1,402)     (1,279)     (1,357)
                        ----------------------------------------------
 Average tangible
  equity                $   76,430  $  166,073  $  140,429  $  163,753

 Net Income (loss)         (18,452) $ (254,366) $  (88,574) $  (20,149)

 Return on average
  tangible equity(a)        -97.91%    -153.17%    -250.92%     -48.95%

                                             2008              2007
                                    ----------------------------------
                                       2nd         1st        Dec 31/
                                     Quarter     Quarter        YTD
                                    ----------------------------------

 Reconciliation Table- GAAP to
  non-GAAP:
 -----------------------------

 Book Value per share               $     7.88  $    13.34  $    16.22
 Effect of intangible assets per
  share                                  (0.88)      (5.62)      (6.94)
                                    ----------------------------------
 Tangible book value                $     7.00  $     7.72  $     9.28

 Equity                             $  183,285  $  309,876  $  306,693
 Intangible assets                      22,020     131,953     132,696
 Less tax effect of Core-Deposit
  Intangible (38%)                      (1,386)     (1,474)     (1,568)
                                    ----------------------------------
 Tangible equity                    $  162,651  $  179,397  $  175,565

 Assets                             $2,877,383  $2,818,477  $2,833,071
 Intangible assets                      20,634     130,479     131,129
                                    ----------------------------------
 Tangible assets                    $2,856,749  $2,687,998  $2,701,942

 Equity/Assets                            6.37%      10.99%      10.83%
 Effect of intangible assets             -0.68%      -4.32%      -4.33%
                                    ----------------------------------
 Tangible Equity/Tangible Assets          5.69%       6.67%       6.50%

 Average Equity                     $  306,580  $  313,635  $  313,504
 Average Intangible assets             130,657     132,599     133,878
 Less tax effect of Core-Deposit
  Intangible (38%)                      (1,440)     (1,533)     (1,763)
                                    ----------------------------------
 Average tangible equity            $  177,363  $  182,569  $  181,389

 Net Income (loss)                  $ (121,445) $  (24,198) $    6,588

 Return on average tangible
  equity(a)                           -275.40%      -53.31%       3.63%

 (a) The actual number of days in the period were used to annualize
     income

            

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