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): 9/30/2026 12/31/2025 9/30/2025
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) 9/30/2026 12/31/2025 9/30/2025
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.


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

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