AIKEN, South Carolina, Oct. 30, 2026 (GLOBE NEWSWIRE) -- Security Federal Corporation (the “Company”) (OTCID: SFDL), the holding company for Security Federal Bank (the “Bank”), today announced earnings and financial results for the three and nine months ended September 30, 2026.

Third Quarter Financial Highlights

Net income available to common shareholders was $3.6 million, or $1.16 per common share, for the third quarter of 2026, an increase of $413,000, or 13.0% compared to the third quarter of 2025. The increase in net income was driven by higher net interest income (up $592,000, or 4.9%) and non-interest income (up $157,000, or 6.0%), which offset increased non-interest expense (up $115,000, or 1.1%) and provision for credit losses (no provision in 2026 compared to a $200,000 reversal in the third quarter of 2025).

  Quarter Ended
(Dollars in Thousands, except for Earnings per Share) 9/30/2026  9/30/2025
Total interest income $19,149  $20,131 
Total interest expense  6,478   8,052 
Net interest income  12,671   12,079 
Provision for credit losses  -   (200)
Net interest income after provision for credit losses  12,671   12,279 
Non-interest income  2,791   2,634 
Non-interest expense  10,466   10,351 
Income before income taxes  4,996   4,562 
Provision for income taxes  994   973 
Net income  4,002   3,589 
Preferred stock dividends  415   415 
Net income available to common shareholders $3,587  $3,174 
Earnings per common share (basic) $1.16  $1.01 
      

Year-to-Date (Nine Months) Comparative Financial Highlights

Net income available to common shareholders was $10.4 million, or $3.35 per common share, for the first nine months of 2026, an increase of $2.2 million, or 27.5% compared to the first nine months of 2025. The increase in net income was driven by higher net interest income (up $2.8 million, or 8.2%) and non-interest income (up $1.3 million, or 16.3%), which more than offset the increase in provision for credit losses (up $665,000) and higher non-interest expense (up $1.0 million, or 3.3%). 

 For the Nine Months Ended
(Dollars in Thousands, except for Earnings per Share)9/30/2026  9/30/2025
Total interest income$56,896  $58,813 
Total interest expense 19,435   24,194 
Net interest income 37,461   34,619 
Provision for credit losses 465   (200)
Net interest income after provision for credit losses 36,996   34,819 
Non-interest income 8,924   7,673 
Non-interest expense 31,568   30,553 
Income before income taxes 14,352   11,939 
Provision for income taxes 2,731   2,555 
Net income 11,621   9,384 
Preferred stock dividends 1,245   1,245 
Net income available to common shareholders$10,376  $8,139 
Earnings per common share (basic)$3.35  $2.57 
 

Credit Quality

The Company recorded a $350,000 provision for credit losses on loans and a $115,000 provision for credit losses on unfunded commitments, resulting in a total provision for credit losses of $465,000 for the first nine months of 2026 compared to a $317,000 reversal of provision for credit losses on loans and a $117,000 provision for credit losses on unfunded commitments, resulting in a $200,000 net reversal in the provision for credit losses for the first nine months of 2025. The following table shows the non-performing assets and allowance for credit losses balances at the periods indicated.

At Period End (dollars in thousands):9/30/202612/31/20259/30/2025
Non-performing assets$5,339 $5,842 $5,669 
Non-performing assets to total assets 0.33% 0.36% 0.35%
Allowance for credit losses$13,597 $13,529 $13,603 
Allowance for credit losses to gross loans 1.96% 1.97% 1.97%


Balance Sheet Highlights and Capital Ratios

Dollars in thousands (except per share amounts)9/30/202612/31/20259/30/2025
Total assets$1,624,945 $1,618,084 $1,612,017 
Cash and cash equivalents 110,342  75,335  51,805 
Total loans receivable, net 681,588  676,182  678,114 
Investment securities 739,026  776,285  789,261 
Deposits 1,385,140  1,371,777  1,365,470 
Borrowings 26,683  35,262  39,044 
Total shareholders' equity 200,031  200,455  194,791 
Common shareholders' equity 117,082  117,506  111,842 
Common equity book value per share$37.94 $37.74 $35.80 
Total risk based capital to risk weighted assets (1) 21.56% 20.56% 19.93%
CET1 capital to risk weighted assets (1) 20.31% 19.30% 18.67%
Tier 1 leverage capital ratio (1) 11.04% 10.18% 10.14%
(1) - Ratio is calculated using Bank only information and not consolidated information 


The Company announced that its Board of Directors has authorized the repurchase of up to 124,035 shares of the Company’s outstanding common stock under its current repurchase program at such prices as may be determined by the Company’s management.

Security Federal has 19 full-service branches located in Aiken, Ballentine, Clearwater, Columbia, Graniteville, Langley, Lexington, North Augusta, Ridge Spring, Wagener and West Columbia, South Carolina and Augusta and Evans, Georgia. A full range of financial services, including trust and investments, are provided by the Bank and insurance services are provided by the Bank’s wholly owned subsidiary, Security Federal Insurance, Inc.

CONTACT: For additional information contact Nathan Crowe, Chief Financial Officer, at (803) 641-3000.