Security Federal Corporation Announces Increase in Quarterly and Year-To-Date Earnings

Core Viewpoint - Security Federal Corporation reported a significant increase in net income for the second quarter and year-to-date, driven by higher net interest income and non-interest income, alongside a decrease in the provision for credit losses [2][6][7]. Financial Performance - For the quarter ended June 30, 2025, net income available to common shareholders was $2.4 million, or $0.75 per share, compared to $2.1 million, or $0.66 per share, for the same quarter in 2024, marking a 14.3% increase in earnings per share [2][4]. - Year-to-date net income available to common shareholders reached $5.0 million, or $1.56 per share, up from $3.9 million, or $1.20 per share, in the same period of 2024, reflecting a 30% increase in earnings per share [2][8]. Income Breakdown - Total interest income for the second quarter of 2025 was $19.4 million, an increase of $629,000, or 3.3%, from the previous year, while total interest expense decreased by $502,000, or 5.8%, to $8.1 million [6][8]. - Net interest income rose by $1.1 million, or 11.1%, to $11.3 million for the quarter, attributed to increased interest income from loans and other interest-earning assets [6][8]. - Non-interest income increased by $141,000, or 5.7%, to $2.6 million, primarily due to higher rental income and gains from land sales [6][8]. Expense Analysis - Non-interest expense for the second quarter increased by $692,000, or 7.2%, to $10.4 million, driven by higher salaries, employee benefits, and occupancy expenses [6][8]. - Year-to-date non-interest expense rose by $898,000, or 4.7%, to $20.2 million [7][8]. Credit Quality - Non-performing assets decreased to $5.9 million, or 0.37% of total assets, down from $7.6 million, or 0.47% at the end of 2024 [10][14]. - The allowance for credit losses was $14.0 million, representing 2.00% of gross loans, compared to 1.98% at the end of 2024 [10][14]. Balance Sheet Highlights - Total assets increased to $1.625 billion, a year-over-year rise of $82.1 million, or 5.3% [12][15]. - Total loans receivable, net, was $685.5 million, a slight decrease of $1.6 million, or 0.2%, since December 31, 2024 [12][15]. - Investment securities rose by $46.8 million, or 7.1%, to $707.6 million due to purchases exceeding maturities [12][15]. - Deposits increased by $59.2 million, or 4.5%, to $1.4 billion [12][15]. Capital Management - Common equity book value per share increased to $34.02 at June 30, 2025, from $31.21 at December 31, 2024 [16]. - Total shareholders' equity was $191.3 million, up from $182.4 million at the end of 2024 [16].