Core Viewpoint - Security Federal Corporation reported a significant increase in net income for the fourth quarter and full year of 2025, driven by higher net interest income and non-interest income, despite facing challenges from lower market interest rates [2][3][7]. Financial Performance - For Q4 2025, net income available to common shareholders was $3.9 million, or $1.24 per share, a 29% increase from $3 million, or 94 cents per share, in the same quarter of the previous year [2]. - For the full year 2025, net income rose about 35% to $12 million, or $3.80 per share, compared to $8.9 million, or $2.77 per share, in 2024 [3]. Income Breakdown - Net interest income in Q4 2025 increased by $1.3 million, or 11.5%, year over year to $12.6 million, despite a 2.2% decline in total interest income due to lower market interest rates [4]. - Non-interest income rose 35.4% in Q4 to $3.9 million, with full-year non-interest income increasing 12.5% to $11.5 million, largely due to higher grant and rental income [5]. Expense Analysis - Non-interest expenses increased by 16% in Q4 and 9.1% for the year, primarily driven by higher salaries, employee benefits, and occupancy costs [5]. - The company experienced a favorable swing in credit loss provisions, recording a reversal of $235,000 in 2025 compared to a provision of $1.4 million in 2024 [6]. Asset Quality - Non-performing assets decreased to $5.8 million at the end of 2025 from $7.6 million a year earlier, with the allowance for credit losses to gross loans remaining stable at 1.97% [6]. Management Insights - Management attributed the earnings increase to improved net interest income, higher non-interest income, and lower credit loss provisions, while noting the impact of lower market interest rates on interest income and expenses [7][9]. - The positive contribution from Community Development Financial Institution (CDFI) grants was highlighted as a support for community development financing initiatives [8][10]. Strategic Developments - In 2025, Security Federal completed the purchase of a multi-tenant property for a future bank branch, contributing to higher rental income [12]. - The company reduced borrowings significantly, repaying all outstanding Federal Reserve borrowings and redeeming junior subordinated debentures, while deposits grew 3.6% year over year to $1.37 billion [12][13].

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].

Industry Overview - The current banking environment is influenced by challenging interest rates, increased competition for deposits, and a focus on balance sheet resilience [1] - Higher interest rates have pressured the market value of securities portfolios, leading to unrealized losses, while core operating performance remains resilient [1] Company Highlights Security Federal Corporation (SFDL) - SFDL has a diversified balance sheet with total assets of $1.61 billion as of September 30, 2025, including $789.3 million in investment securities and $678.1 million in net loans [3] - The company reported net income of $9.4 million for the first nine months of 2025, a significant increase from the previous year, driven by higher net interest income and a reversal of provision for credit losses [3][4] - SFDL has a strong deposit base of $1.37 billion, positioning it well for stable earnings as rate pressures normalize [4][5] Bank of the James Financial Group (BOTJ) - BOTJ reported total assets of $1.02 billion at the end of the third quarter of 2025, with net loans of $653.3 million, supported by a diversified revenue stream [6] - The company generated net income of $6.3 million for the first nine months of 2025, demonstrating resilience in a competitive rate environment [6][7] - BOTJ's stable asset base and improving capital position position it for moderate, sustainable growth [7] Community Bancorp (CMTV) - CMTV is the largest of the three institutions, with total assets of $1.23 billion as of September 30, 2025, and a substantial loan portfolio of $951.9 million [8] - The company achieved net income of $12.3 million for the first nine months of 2025, reflecting higher net interest income and improved operating leverage [9] - CMTV's strong earnings growth and improving credit trends position it to outperform smaller peers as operating conditions stabilize [10] Conclusion - SFDL, BOTJ, and CMTV exemplify how community and regional banks can remain resilient in a volatile banking environment, benefiting from solid asset foundations, prudent credit management, and earnings stability [11]

Core Viewpoint - Zacks Investment Research has initiated coverage of Security Federal Corporation (SFDL) with an "Outperform" recommendation, highlighting the company's resilient fundamentals, solid earnings trajectory, and strong balance sheet for sustainable long-term growth [1] Financial Performance - For the first half of 2025, Security Federal's net income increased by 28% year over year to $5 million, raising earnings per share from $1.20 to $1.56 [2] - Net interest income rose by 11.8% year over year to $22.5 million, driven by expanding loan yields and lower funding costs [3] - Deposits grew by 4.5% to $1.38 billion, while borrowings declined by more than half, indicating a shift towards lower-cost funding sources [3] Asset Quality and Risk Management - Non-performing assets decreased to 0.37% of total assets, with no provision for credit losses recorded in the first half of 2025 [4] - The allowance for credit losses stands at 2% of gross loans, reinforcing investor confidence in the company's conservative risk posture [4] Capital Strength and Growth Drivers - Book value per share increased by 9% to $34.02 by mid-2025, with common equity Tier 1 and Tier 1 leverage ratios at 19.2% and 10.5%, respectively, both above regulatory requirements [5] - The company is diversifying beyond traditional lending, with non-interest income rising by 5.5% year over year, supported by rental income and land sales [6] Market Positioning - Security Federal operates 19 full-service branches across South Carolina and Georgia, enhancing customer relationships and reducing cyclicality [6] - Shares trade at 0.90X trailing book value and 9.8X earnings, both below industry averages, suggesting attractive upside potential [8]

Core Viewpoint - Security Federal Corporation (SFDL) reported strong year-over-year earnings and revenue growth for the second quarter of 2025, despite a slight decline in stock performance compared to the broader market [1][12] Financial Performance - For the quarter ended June 30, 2025, net income available to common shareholders was $2.4 million, or 75 cents per share, reflecting a 10.9% increase in net income and a 13.6% increase in EPS compared to the same quarter in 2024 [2] - Total revenues increased, with net interest income rising 11.1% to $11.3 million and non-interest income increasing 5.7% to $2.6 million [2] Business Drivers & Income Sources - The improvement in net interest income was driven by a 3.3% increase in total interest income to $19.4 million and a 5.8% reduction in total interest expenses to $8.1 million [3] - Non-interest income growth was supported by a $106,000 increase in rental income and a $62,000 gain on the sale of land [4] Operating Expenses & Profitability - Non-interest expenses rose by $692,000, or 7.2%, to $10.4 million, primarily due to higher salaries, occupancy expenses, and cloud services [5] - Income before taxes increased 27.1% to $3.5 million, while net income available to common shareholders rose 11.6% to $2.4 million after accounting for a 33.8% rise in income tax provision [6] Credit Quality - Non-performing assets decreased to $5.95 million, down from $7.12 million a year earlier, indicating improved credit quality [7] - The allowance for credit losses increased to $14.0 million, or 2.00% of gross loans, up from 1.95% a year ago [7] Balance Sheet & Capital Position - Total assets as of June 30, 2025, were $1.63 billion, a 5.3% year-over-year increase, with deposits growing 11.9% to $1.38 billion [8] - Common equity book value per share increased to $34.02 from $29.08 a year earlier, with strong capital ratios [9] Management Insights - Management attributed earnings growth to effective balance sheet management and investments in future growth, including the acquisition of a multi-tenant property for branch expansion [10] - The acquisition reflects the company's strategy to enhance its regional presence [11]

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].

AIKEN, S.C., May 22, 2025 (GLOBE NEWSWIRE) -- Security Federal Corporation, parent company of Security Federal Bank, is pleased to announce that a quarterly dividend of $0.15 per share will be paid on or about June 15, 2025, to shareholders of record as of May 31, 2025. This is the one hundred thirty-eighth consecutive quarterly dividend to shareholders since the Bank’s conversion in October of 1987 from a mutual to a stock form of ownership. The dividend was declared as a result of the Bank’s continued pr ...

Core Viewpoint - Security Federal Corporation reported a significant increase in net income for the first quarter of 2025, driven by higher net interest income and non-interest income, alongside a reduction in the provision for credit losses compared to the same period in 2024 [2][4]. Financial Performance - Net income available to common shareholders for Q1 2025 was $2.6 million, or $0.81 per share, up from $1.8 million, or $0.54 per share, in Q1 2024, marking a 44.4% increase in net income [2][4]. - Total interest income rose by $514,000, or 2.7%, to $19.2 million, while total interest expense decreased by $733,000, or 8.4%, to $8.0 million [7]. - Net interest income increased by $1.2 million, or 12.5%, to $11.2 million, attributed to a rise in interest income from loans [7]. - Non-interest income grew by $122,000, or 5.3%, to $2.4 million, primarily due to increased rental income and gains from land sales [7]. - Non-interest expense increased by $205,000, or 2.1%, to $9.8 million, mainly due to higher salaries and employee benefits [7]. Credit Quality - The Bank recorded no provision for credit losses in Q1 2025, compared to a total provision of $335,000 in Q1 2024 [8]. - Non-performing assets were $7.3 million, or 0.46% of total assets, at March 31, 2025, a slight decrease from $7.6 million, or 0.47% of total assets, at December 31, 2024 [8][9]. Balance Sheet Highlights - Total assets were $1.6 billion at March 31, 2025, reflecting a year-over-year increase of $65.8 million, or 4.3%, but a decrease of $27.7 million, or 1.7%, from the prior quarter [13]. - Total loans receivable, net, stood at $689.1 million, a slight increase of $2.0 million, or 0.3%, since December 31, 2024 [13]. - Deposits increased by $21.5 million, or 1.6%, to $1.3 billion at March 31, 2025 [13]. - Common equity book value per share rose to $32.57 from $31.21 at the end of the previous quarter [13].