Core Viewpoint - Security Federal reported strong financial performance for Q2 2025, with significant year-over-year growth in net interest income and earnings per share, despite a slight contraction in loan balances [1][5][6] Financial Performance - Earnings per share (GAAP) increased to $0.75, up 13.6% from $0.66 in Q2 2024 [2] - Net income available to common shareholders rose to $2.4 million, an 11.6% increase from $2.13 million in the same quarter last year [2][5] - Net interest income reached $11.3 million, reflecting a 10.8% growth compared to $10.2 million in Q2 2024 [2][6] - Non-interest income grew by 6.1% to $2.6 million, up from $2.45 million [2] - Non-interest expense increased by 7.2% to $10.4 million, compared to $9.7 million in the prior year [2][7] Asset and Loan Metrics - Total assets at the end of the period were $1.63 billion, a 5.3% increase from $1.54 billion in Q2 2024 [2] - Total loans receivable slightly declined to $685.5 million, down 0.2% since year-end 2024 [5] Capital and Credit Quality - Non-performing assets decreased to $5.95 million, representing 0.37% of total assets, down from 0.47% at the end of 2024 [9] - The allowance for credit losses was 2.00% of gross loans, showing a modest increase since year-end [9] - Regulatory capital ratios remain strong, with a total risk-based capital ratio of 20.46%, well above required levels [9] Preferred Stock Dividends - Preferred stock dividends surged to $415,000, more than four times the previous year's $97,000, impacting net income available to common shareholders [8] Business Focus and Strategy - Security Federal operates as a community-oriented bank with a focus on local businesses and individuals, offering a range of loan products [3][4] - The bank is designated as a Certified Community Development Financial Institution (CDFI), emphasizing lending to low- and moderate-income areas [4] Management Outlook - No explicit financial guidance for the remainder of fiscal 2025 was provided, leaving investors without specific targets for loan growth or earnings [11] - Investors are encouraged to monitor loan balances, non-interest expense trends, and the impact of preferred dividends on future performance [12]