Financial Condition

Dear Valued Clients:

In 2016 we experienced a year of steady and conservative growth with total assets increasing 3.8% to over $553 million.  Total deposits increased nearly 12% to $473 million which funded previous growth and supported the 3% growth in loans experienced during 2016.  After a solid year in terms of income, our capital and reserves grew to over $66 million.  Our focus continues to be one of prudent growth that provides the stability our valued clients deserve and expect from Security Savings Bank.

After several years of historically low interest rates, we have now begun to see rates on the rise.  Investors are eager for this change while those on the borrowing side will see the negative effect.  While more interest rate hikes are being projected for 2017, the consensus seems to be that increases will be moderate and only as can be absorbed by the economy. 

In general terms, the economies in our markets are fairly strong and are indicating some optimism for growth in 2017.  In the Midwest, whether you are in a larger metro market or a smaller rural market, we are all impacted by agriculture.  Leading into the 2016 crop season the outlook for agriculture was not a very pretty picture.  With high input costs and the prediction for low commodity prices, the press had us convinced it was not going to be a good year.  However, due largely to excellent crop yields, improved expense control, and better than expected commodity prices, the majority of the farmers across the region appear to be in position to repay their operating debt and cover any term loan payments.  While it will take time to get to a position where the large ag equipment manufacturers and other related ag businesses are back to full production, there is optimism that the bottom of the market may not be as low as expected.

Fraudulent activity continues to become more and more prevalent as we have become an electronic world.   The new chip technology incorporated into debit and credit cards is expected to help, but we strongly encourage you to be mindful when doing your banking.  Monitoring your accounts through our Mobile Banking app, Internet Banking, Shazam Bolt$, and ID TheftSmart  are all excellent ways to watch for fraudulent activity and quickly take action if fraud would occur.  To prevent fraud in the first place, we strongly encourage you to avoid giving out personal information over the telephone or the computer, guard your PIN numbers closely, and watch for skimmers on gas pumps, ATMs, or other devices when you are using your debit/credit cards.   Our team is here and ready to help you with all of these tools that are available.  It is also important to obtain free yearly copies of your credit reports.  You are entitled to one free report from each of the credit reporting agencies.

As we enter our 118th year, our dedicated team continues to work every day to deliver exceptional service and personalized financial solutions to promote our clients’ success and to achieve long-term relationships and profitability for our Bank.  We fully understand that we will not be successful unless you succeed.  Thank you for the opportunity to serve you and best wishes for an outstanding 2017.



Timothy R. German