Security Federal Corporation Announces Increase In First Quarter Earnings

(MENAFN- GlobeNewsWire - Nasdaq) AIKEN, S.C., May 01, 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 quarter ended March 31, 2026.

Net income available to common shareholders was $3.1 million, or $1.00 per common share, for the first quarter of 2026, an increase of $509,000, or 19.6% from the first quarter of 2025. The increase in net income was driven by higher net interest income (up $1.1 million, or 9.4%) and non-interest income (up $481,000, or 19.7%), which offset increased provision for credit losses (up $225,000, or 100.0%) and non-interest expense (up $720,000, or 7.3%).

		Quarter Ended
(Dollars in Thousands, except for Earnings per Share)		3/31/2026		3/31/2025
Total interest income		$	18,821		$	19,233
Total interest expense			6,540			8,004
Net interest income			12,281			11,229
Provision for credit losses			225			-
Net interest income after provision for credit losses			12,056			11,229
Non-interest income			2,924			2,443
Non-interest expense			10,560			9,840
Income before income taxes			4,420			3,832
Provision for income taxes			905			826
Net income			3,515			3,006
Preferred stock dividends			415			415
Net income available to common shareholders		$	3,100		$	2,591
Earnings per common share (basic)		$	1.00		$	0.81

Credit Quality

The Bank recorded a $175,000 provision for credit losses on loans and a $50,000 provision for credit losses on unfunded commitments, resulting in a total provision for credit losses of $225,000 for the first quarter of 2026 compared to no provision for credit losses during the first quarter 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):	3/31/2026	12/31/2025	3/31/2025
Non-performing assets	$	5,462		$	5,842		$	7,264
Non-performing assets to total assets		0.34%			0.36%			0.46%
Allowance for credit losses	$	13,622		$	13,529		$	14,005
Allowance for credit losses to gross loans		2.01%			1.97%			1.99%

Balance Sheet Highlights and Capital Ratios

Dollars in thousands (except per share amounts)	3/31/2026	12/31/2025	3/31/2025
Total assets	$	1,627,503		$	1,618,084		$	1,585,461
Cash and cash equivalents		112,713			75,335			133,080
Total loans receivable, net		667,532			676,182			689,111
Investment securities		756,676			776,285			674,569
Deposits		1,376,895			1,371,777			1,345,548
Borrowings		37,172			35,262			39,391
Total shareholders' equity		201,918			200,455			188,172
Common shareholders' equity		118,969			117,506			105,223
Common equity book value per share	$	38.46		$	37.74		$	32.57
Total risk based capital to risk weighted assets (1)		21.01%			20.56%			20.16%
CET1 capital to risk weighted assets (1)		19.75%			19.30%			18.90%
Tier 1 leverage capital ratio (1)		10.54%			10.18%			10.58%
(1) - Ratio is calculated using Bank only information and not consolidated information

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: Beverly Nettles 803-641-3000

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