Security Federal Corporation Reports Growth in Earnings for Q3 2025
Security Federal Corporation Reports Growth in Earnings for Q3 2025
Security Federal Corporation (OTC: SFDL), parent company of Security Federal Bank, has announced strong financial results for the quarter and year to date, highlighting substantial growth in earnings. The corporation's commitment to enhancing shareholder value is evident in its latest financial disclosures.
Financial Performance Overview
For the quarter ending in September 2025, Security Federal reported net income for common shareholders of $3.2 million, which equates to $1.01 per common share. This marks a significant increase from the $2.0 million or $0.62 per common share registered in the third quarter of the prior year. Additionally, year-to-date income rose to $8.1 million or $2.57 per share, up from $5.9 million or $1.83 per share in the previous year.
Quarterly Financial Highlights
- Net interest income grew by $1.7 million, a 16.0% increase, totaling $12.1 million for Q3 2025 compared to $10.4 million the year before.
- Total interest income rose by $600,000, reaching $20.1 million, while total interest expense fell by $1.1 million to $8.1 million.
- Non-interest income was slightly higher at $2.6 million, up by 0.3% compared to the same quarter in the previous year.
- Non-interest expenses, however, increased by 11.2%, totaling $10.4 million due primarily to rising salaries and employee benefits.
Year-to-Date Financial Results
Looking at the first nine months of 2025, Security Federal reported a 13.2% increase in net interest income, amounting to $34.6 million. Total interest income saw a $1.7 million increase, reaching $58.8 million, whereas interest expenses decreased by $2.3 million to $24.2 million.
Year-to-Date Financial Highlights
- Non-interest income increased by 3.7%, reaching $7.7 million, driven by higher rental income and ATM fees.
- Non-interest expenses also grew, reflecting the bank's investments in human resources and property.
Credit Quality Improvements
Security Federal demonstrated improvement in credit quality, posting a net reversal in credit loss provisions totaling $200,000 in the first nine months of 2025. Non-performing assets decreased from $6.8 million a year ago to $5.7 million, indicating enhanced credit risk management within the bank.
Balance Sheet Highlights
The bank's total assets increased to $1.61 billion, reflecting a healthy growth trajectory. Despite a notable decline in cash and cash equivalents due to strategic investments, investment securities surged by $128.4 million, demonstrating a robust commitment to portfolio management.
Capital Management Initiatives
- Deposits reached $1.37 billion, marking a year-over-year increase of 8.6%.
- Borrowings fell significantly as the bank repaid outstanding Federal Reserve borrowings, showcasing effective capital management.
Contact Information
For more details regarding these financial results and other inquiries, please contact Darrell Rains, Chief Financial Officer, at (803) 641-3000.
Frequently Asked Questions
What were the net earnings for Security Federal Corporation in Q3 2025?
The net earnings for Q3 2025 were $3.2 million, or $1.01 per common share.
How did the year-to-date earnings compare to the previous year?
Year-to-date earnings increased to $8.1 million, compared to $5.9 million for the same period last year.
What contributed to the financial growth?
The increase in net interest income and reductions in provision for credit losses significantly contributed to financial growth.
How does the current credit quality stand?
There was a net reversal of credit loss provisions totaling $200,000 in the first nine months of 2025, improving credit quality metrics.
Who can be contacted for further information about Security Federal Corporation?
Darrell Rains, Chief Financial Officer at (803) 641-3000, is the primary contact for further inquiries.
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