Security Federal Corporation Announces Third Quarter Income
AIKEN, S.C., Oct. 30, 2024 (GLOBE NEWSWIRE) -- Security Federal Corporation (the "Company") (OTC: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, 2024.
The Company reported net income available to common shareholders of $2.0 million, or $0.62 per share, for the quarter ended September 30, 2024, compared to $2.1 million, or $0.65 per share, for the third quarter of 2023. Year-to-date net income available to common shareholders was $5.9 million, or $1.83 per common share, for the nine months ended September 30, 2024, compared to $6.6 million, or $2.02 per common share, during the nine months ended September 30, 2023. Both the quarterly and year-to-date decreases in net income available to common shareholders were primarily due to increases in the provision for credit losses and non-interest expense, as well as the payment of preferred stock dividends during 2024, which were partially offset by increases in net interest income and non-interest income.
Third Quarter Comparative Financial Highlights
Net interest income increased $964,000, or 10.2%, to $10.4 million during the quarter ended September 30, 2024, compared to $9.4 million during the third quarter of 2023.
Total interest income increased $2.7 million, or 16.1%, to $19.5 million while total interest expense increased $1.7 million, or 23.7%, to $9.1 million during the quarter ended September 30, 2024 compared to the same quarter the prior year. The increase in interest income and interest expense was the result of higher market interest rates and increased average interest-earning assets and interest-bearing liabilities.
Non-interest income increased $457,000, or 21.1%, to $2.6 million during the quarter ended September 30, 2024 compared to the same quarter in the prior year primarily due to $263,000 and $74,000 increases in trust income and gain on sale of loans, respectively.
Non-interest expense increased $389,000, or 4.4%, to $9.3 million during the quarter ended September 30, 2024 compared to the same quarter in the prior year primarily due to an increase in salaries and employee benefits expense.
Quarter Ended
(Dollars in Thousands, except for Earnings per Share)
9/30/2024
9/30/2023
Total interest income
$
19,531
$
16,822
Total interest expense
9,121
7,376
Net interest income
10,410
9,446
Provision for credit losses
580
-
Net interest income after provision for credit losses
9,830
9,446
Non-interest income
2,625
2,168
Non-interest expense
9,313
8,924
Income before income taxes
3,142
2,690
Provision for income taxes
732
568
Net income
2,410
2,122
Preferred stock dividends
415
-
Net income available to common shareholders
$
1,995
$
2,122
Earnings per common share (basic)
$
0.62
$
0.65
Year to Date (Nine Months) Comparative Financial Highlights
Net interest income increased $1.8 million, or 6.1%, to $30.6 million during the nine months ended September 30, 2024 compared to the same period in the prior year.
Total interest income increased $10.5 million, or 22.5%, to $57.1 million while total interest expense increased $8.7 million, or 49.0%, to $26.5 million during the nine months ended September 30, 2024 compared to the same period in the prior year.
Non-interest income increased $780,000, or 11.8%, to $7.4 million during the nine months ended September 30, 2024 compared to the same period in the prior year primarily due to a $480,000 increase in trust income.
Non-interest expense increased $1.8 million, or 6.5%, to $28.6 million for the nine months ended September 30, 2024 compared to the same period in 2023.
Nine Months Ended
(Dollars in Thousands, except for Earnings per Share)
9/30/2024
9/30/2023
Total interest income
$
57,071
$
46,593
Total interest expense
