Security Federal Corporation Announces Increase In Quarterly And Year-To-Date Earnings

(MENAFN- GlobeNewsWire - Nasdaq) 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.

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

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