10-Q - SECURITY FEDERAL CORP (0000818677) (Filer)

Fri, Nov 8, 3:14 PM (253 days ago)

**Security Federal Corporation (ticker: SFBC) - Q3 2024 Summary** For the quarter ending September 30, 2024, Security Federal Corporation reported a net income of $2.4 million, down 6.0% from $2.1 million in Q3 2023. This decline was attributed to increased non-interest expenses and provisions for credit losses despite a rise in net interest income. Total assets grew modestly to $1.58 billion, primarily driven by a 10.3% increase in net loans to $686.7 million, supported by robust demand in real estate lending. Net interest income rose 10.2% to $10.4 million, bolstered by higher average loan balances and improved yields. However, the net interest margin slightly declined to 2.87%. Non-interest income also increased by 21.1% to $2.6 million, led by trust income growth and gains on loan sales. The provision for credit losses stood at $580,000, reflecting loan growth and higher charge-offs, with net charge-offs totaling $79,000. The company's total deposits rose 5.2% to $1.26 billion, while borrowings from the Federal Reserve decreased significantly. Shareholders' equity increased to $185.1 million, supported by retained earnings and reduced accumulated other comprehensive losses. The capital ratios indicate a well-capitalized status, exceeding regulatory requirements. Future operations may face challenges from interest rate fluctuations and economic uncertainty.