Security Federal Corporation Announces Increase in Quarterly and Annual Earnings and Financial Results for 2025

Core Viewpoint - Security Federal Corporation reported significant growth in net income for both the fourth quarter and the full year ended December 31, 2025, driven by increased net interest income and non-interest income, alongside a reduction in the provision for credit losses [2][6][7]. Financial Performance - For the fourth quarter of 2025, net income available to common shareholders was $3.9 million, or $1.24 per share, compared to $3.0 million, or $0.94 per share, in the same quarter of 2024, marking a 30.0% increase in earnings per share [2][4]. - Year-to-date net income available to common shareholders rose to $12.0 million, or $3.80 per share, from $8.9 million, or $2.77 per share, in 2024, reflecting a 37.1% increase in earnings per share [2][8]. Interest Income and Expenses - Total interest income for the fourth quarter of 2025 was $19.8 million, a decrease of $437,000 or 2.2% from the previous year, while total interest expense fell by $1.7 million or 19.3% to $7.2 million [6]. - Net interest income increased by $1.3 million or 11.5% to $12.6 million in the fourth quarter of 2025, primarily due to a greater reduction in interest expense compared to interest income [6][7]. Non-Interest Income and Expenses - Non-interest income for the fourth quarter of 2025 increased by $1.0 million or 35.4% to $3.9 million, driven by higher grant income and rental income [6]. - Non-interest expense rose by $1.5 million or 16.0% to $11.1 million, attributed to increased salaries, employee benefits, and debit card expenses [6]. Credit Quality - Non-performing assets were reported at $5.8 million as of December 31, 2025, a slight increase from $5.7 million at September 30, 2025, but a decrease from $7.6 million at the end of 2024 [10][13]. - The allowance for credit losses to gross loans was stable at 1.97% as of December 31, 2025, compared to 1.98% a year earlier [10][13]. Balance Sheet Highlights - Total assets reached $1.62 billion at December 31, 2025, reflecting a year-over-year increase of $6.3 million or 0.4% [14]. - Cash and cash equivalents decreased by $102.9 million or 57.7% to $75.3 million, primarily due to investment securities purchases and debt repayments [14]. - Total loans receivable, net, were $676.2 million, down $1.9 million from the previous quarter and $11.0 million year-over-year [14]. Capital Management - Total shareholders' equity increased to $200.5 million at December 31, 2025, up from $182.4 million a year earlier [15]. - The common equity book value per share rose to $37.74, compared to $31.21 in the previous year [15].