AIKEN, S.C., May 01, 2026 (GLOBE NEWSWIRE) -- Security Federal Corporation (the “Company”) (OTCID: SFDL), the holding company for Security Federal Bank (the “Bank”), today announced earnings and financial results for the quarter ended March 31, 2026.
Net income available to common shareholders was $3.1 million, or $1.00 per common share, for the first quarter of 2026, an increase of $509,000, or 19.6% from the first quarter of 2025. The increase in net income was driven by higher net interest income (up $1.1 million, or 9.4%) and non-interest income (up $481,000, or 19.7%), which offset increased provision for credit losses (up $225,000, or 100.0%) and non-interest expense (up $720,000, or 7.3%).
| Quarter Ended | ||||||
| (Dollars in Thousands, except for Earnings per Share) | 3/31/2026 | 3/31/2025 | ||||
| Total interest income | $ | 18,821 | $ | 19,233 | ||
| Total interest expense | 6,540 | 8,004 | ||||
| Net interest income | 12,281 | 11,229 | ||||
| Provision for credit losses | 225 | - | ||||
| Net interest income after provision for credit losses | 12,056 | 11,229 | ||||
| Non-interest income | 2,924 | 2,443 | ||||
| Non-interest expense | 10,560 | 9,840 | ||||
| Income before income taxes | 4,420 | 3,832 | ||||
| Provision for income taxes | 905 | 826 | ||||
| Net income | 3,515 | 3,006 | ||||
| Preferred stock dividends | 415 | 415 | ||||
| Net income available to common shareholders | $ | 3,100 | $ | 2,591 | ||
| Earnings per common share (basic) | $ | 1.00 | $ | 0.81 | ||
Credit Quality
The Bank recorded a $175,000 provision for credit losses on loans and a $50,000 provision for credit losses on unfunded commitments, resulting in a total provision for credit losses of $225,000 for the first quarter of 2026 compared to no provision for credit losses during the first quarter of 2025. The following table shows the non-performing assets and allowance for credit losses balances at the periods indicated.
| At Period End (dollars in thousands): | 3/31/2026 | 12/31/2025 | 3/31/2025 | ||||||
| Non-performing assets | $ | 5,462 | $ | 5,842 | $ | 7,264 | |||
| Non-performing assets to total assets | 0.34% | 0.36% | 0.46% | ||||||
| Allowance for credit losses | $ | 13,622 | $ | 13,529 | $ | 14,005 | |||
| Allowance for credit losses to gross loans | 2.01% | 1.97% | 1.99% | ||||||
Balance Sheet Highlights and Capital Ratios
| Dollars in thousands (except per share amounts) | 3/31/2026 | 12/31/2025 | 3/31/2025 | ||||||
| Total assets | $ | 1,627,503 | $ | 1,618,084 | $ | 1,585,461 | |||
| Cash and cash equivalents | 112,713 | 75,335 | 133,080 | ||||||
| Total loans receivable, net | 667,532 | 676,182 | 689,111 | ||||||
| Investment securities | 756,676 | 776,285 | 674,569 | ||||||
| Deposits | 1,376,895 | 1,371,777 | 1,345,548 | ||||||
| Borrowings | 37,172 | 35,262 | 39,391 | ||||||
| Total shareholders' equity | 201,918 | 200,455 | 188,172 | ||||||
| Common shareholders' equity | 118,969 | 117,506 | 105,223 | ||||||
| Common equity book value per share | $ | 38.46 | $ | 37.74 | $ | 32.57 | |||
| Total risk based capital to risk weighted assets (1) | 21.01% | 20.56% | 20.16% | ||||||
| CET1 capital to risk weighted assets (1) | 19.75% | 19.30% | 18.90% | ||||||
| Tier 1 leverage capital ratio (1) | 10.54% | 10.18% | 10.58% | ||||||
| (1) - Ratio is calculated using Bank only information and not consolidated information | |||||||||
Security Federal has 19 full-service branches located in Aiken, Ballentine, Clearwater, Columbia, Graniteville, Langley, Lexington, North Augusta, Ridge Spring, Wagener and West Columbia, South Carolina and Augusta and Evans, Georgia. A full range of financial services, including trust and investments, are provided by the Bank and insurance services are provided by the Bank’s wholly owned subsidiary, Security Federal Insurance, Inc.
