Security Federal Corporation Announces Third Quarter Income
Security Federal reported Q3 2024 net income of $2.0 million ($0.62 per share), compared to $2.1 million ($0.65 per share) in Q3 2023. Net interest income increased 10.2% to $10.4 million, while total interest income rose 16.1% to $19.5 million. Year-to-date net income was $5.9 million ($1.83 per share), down from $6.6 million ($2.02 per share) in 2023. The decrease was primarily due to increased provision for credit losses, higher non-interest expenses, and preferred stock dividend payments. Total assets reached $1.6 billion, showing a 6.7% year-over-year increase.
Security Federal ha riportato un utile netto nel terzo trimestre del 2024 pari a 2,0 milioni di dollari (0,62 dollari per azione), rispetto ai 2,1 milioni di dollari (0,65 dollari per azione) del terzo trimestre del 2023. Il reddito netto da interessi è aumentato del 10,2%, raggiungendo i 10,4 milioni di dollari, mentre il reddito totale da interessi è salito del 16,1%, totalizzando 19,5 milioni di dollari. L'utile netto da inizio anno è stato di 5,9 milioni di dollari (1,83 dollari per azione), in calo rispetto ai 6,6 milioni di dollari (2,02 dollari per azione) del 2023. La diminuzione è stata principalmente dovuta all'aumento delle perdite su crediti, delle spese non legate agli interessi e dei pagamenti dei dividendi sulle azioni privilegiate. Il totale attivo ha raggiunto 1,6 miliardi di dollari, mostrando un incremento del 6,7% rispetto all'anno precedente.
Security Federal reportó un ingreso neto de $2.0 millones ($0.62 por acción) en el tercer trimestre de 2024, en comparación con $2.1 millones ($0.65 por acción) en el tercer trimestre de 2023. Los ingresos netos por intereses aumentaron un 10.2% a $10.4 millones, mientras que los ingresos totales por intereses subieron un 16.1% a $19.5 millones. El ingreso neto acumulado hasta la fecha fue de $5.9 millones ($1.83 por acción), inferior a $6.6 millones ($2.02 por acción) en 2023. La disminución se debió principalmente al aumento de la provisión para pérdidas de créditos, mayores gastos no financieros y pagos de dividendos de acciones preferentes. Los activos totales alcanzaron $1.6 mil millones, mostrando un incremento del 6.7% en comparación con el año anterior.
Security Federal는 2024년 3분기 순이익이 200만 달러(주당 0.62달러)로 보고되었으며, 2023년 3분기의 210만 달러(주당 0.65달러)와 비교됩니다. 순이자 수익은 10.2% 증가하여 1,040만 달러에 이르렀고, 전체 이자 수익은 16.1% 증가하여 1,950만 달러로 상승했습니다. 연초부터 지금까지의 순이익은 590만 달러(주당 1.83달러)로, 2023년의 660만 달러(주당 2.02달러)에서 감소했습니다. 감소는 주로 신용 손실에 대한 대손 충당금 증가, 비이자 비용 증가, 우선주 배당금 지급 때문이었습니다. 총 자산은 16억 달러에 도달하여 전년 대비 6.7% 증가했습니다.
Security Federal a annoncé un revenu net de 2,0 millions de dollars (0,62 dollar par action) pour le troisième trimestre 2024, contre 2,1 millions de dollars (0,65 dollar par action) au troisième trimestre 2023. Les revenus d'intérêts nets ont augmenté de 10,2 % pour atteindre 10,4 millions de dollars, tandis que les revenus totaux d'intérêts ont augmenté de 16,1 % pour s'élever à 19,5 millions de dollars. Le revenu net depuis le début de l'année s'élevait à 5,9 millions de dollars (1,83 dollar par action), contre 6,6 millions de dollars (2,02 dollars par action) en 2023. La baisse était principalement due à l'augmentation des provisions pour pertes de crédit, à des charges non liées aux intérêts et aux paiements de dividendes sur les actions privilégiées. Les actifs totaux ont atteint 1,6 milliard de dollars, montrant une augmentation de 6,7 % par rapport à l'année précédente.
Security Federal meldete im dritten Quartal 2024 ein Nettoergebnis von 2,0 Millionen US-Dollar (0,62 US-Dollar pro Aktie), verglichen mit 2,1 Millionen US-Dollar (0,65 US-Dollar pro Aktie) im dritten Quartal 2023. Die Nettozinseinnahmen stiegen um 10,2% auf 10,4 Millionen US-Dollar, während die gesamten Zinserträge um 16,1% auf 19,5 Millionen US-Dollar anstiegen. Das Nettoergebnis seit Jahresbeginn betrug 5,9 Millionen US-Dollar (1,83 US-Dollar pro Aktie) und lag unter den 6,6 Millionen US-Dollar (2,02 US-Dollar pro Aktie) im Jahr 2023. Der Rückgang war hauptsächlich auf erhöhte Rückstellungen für Kreditverluste, höhere nichtzinsbezogene Ausgaben und die Zahlungen von Vorzugsdividenden zurückzuführen. Die Gesamtsumme der Vermögenswerte erreichte 1,6 Milliarden US-Dollar und zeigte einen Anstieg von 6,7% im Vergleich zum Vorjahr.
- Net interest income increased 10.2% to $10.4 million in Q3 2024
- Total interest income rose 16.1% to $19.5 million
- Non-interest income increased 21.1% to $2.6 million
- Total assets grew 6.7% year-over-year to $1.6 billion
- Deposits increased 6.0% year-over-year to $1.3 billion
- Total loans receivable increased by $88.7 million year-over-year
- Q3 2024 net income decreased to $2.0 million from $2.1 million in Q3 2023
- Year-to-date net income declined to $5.9 million from $6.6 million
- Earnings per share decreased to $0.62 from $0.65 in Q3
- Higher provision for credit losses at $1.1 million vs $221,000 in prior year
- Non-interest expense increased 4.4% to $9.3 million
- Interest expense increased 23.7% to $9.1 million
AIKEN, S.C., Oct. 30, 2024 (GLOBE NEWSWIRE) -- Security Federal Corporation (the “Company”) (OTCBB: 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
Third Quarter Comparative Financial Highlights
- Net interest income increased
$964,000 , or10.2% , 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 , or16.1% , to$19.5 million while total interest expense increased$1.7 million , or23.7% , 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 , or21.1% , 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 , or4.4% , 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 , or6.1% , 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 , or22.5% , to$57.1 million while total interest expense increased$8.7 million , or49.0% , 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 , or11.8% , 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 , or6.5% , 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 | 26,497 | 17,780 | ||||
| Net interest income | 30,574 | 28,813 | ||||
| Provision for credit losses | 1,090 | 221 | ||||
| Net interest income after provision for credit losses | 29,484 | 28,592 | ||||
| Non-interest income | 7,400 | 6,620 | ||||
| Non-interest expense | 28,617 | 26,863 | ||||
| Income before income taxes | 8,267 | 8,349 | ||||
| Provision for income taxes | 1,878 | 1,775 | ||||
| Net income | 6,389 | 6,574 | ||||
| Preferred stock dividends | 512 | - | ||||
| Net income available to common shareholders | $ | 5,877 | $ | 6,574 | ||
| Earnings per common share (basic) | $ | 1.83 | $ | 2.02 | ||
Credit Quality
- The Bank recorded a
$1.2 million provision for credit losses on loans and a$110,000 reversal of provision for credit losses on unfunded commitments, resulting in a total provision for credit losses of$1.1 million for the first nine months of 2024, compared to$376,000 in provision for credit losses on loans and a$155,000 reversal of provision for credit losses on unfunded commitments, resulting in a total provision for credit losses of$221,000 for the first nine months of 2023. - Non-performing assets were
$6.8 million at both September 30, 2024 and December 31, 2023, compared to$6.3 million at September 30, 2023. - The allowance for credit losses to gross loans was
1.95% ,1.98% and2.03% at September 30, 2024, December 31, 2023, and September 30, 2023, respectively.
| At Period End (dollars in thousands): | 9/30/2024 | 12/31/2023 | 9/30/2023 | ||||||
| Non-performing assets | $ | 6,770 | $ | 6,825 | $ | 6,339 | |||
| Non-performing assets to total assets | 0.43 | % | 0.44 | % | 0.43 | % | |||
| Allowance for credit losses | $ | 13,604 | $ | 12,569 | $ | 12,348 | |||
| Allowance for credit losses to gross loans | 1.95 | % | 1.98 | % | 2.03 | % | |||
Balance Sheet Highlights and Capital Management
- Total assets were
$1.6 billion at September 30, 2024, a year-over-year increase of$99.0 million , or6.7% . - Total loans receivable, net were
$686.7 million at September 30, 2024, an increase of$64.2 million during the first nine months of 2024 and a year-over-year increase of$88.7 million . - Investment securities decreased
$28.7 million during the first nine months of 2024 to$672.1 million at September 30, 2024, as maturities and principal paydowns of investment securities exceeded purchases during the nine-month period. - Deposits were
$1.3 billion at September 30, 2024, an increase of$62.3 million , or5.2% during the nine months ended September 30, 2024, and a year-over-year increase of$71.3 million , or6.0% . - Borrowings decreased
$49.1 million , or28.9% , during the nine months ended September 30, 2024 to$121.0 million due to the repayment of borrowings with the Federal Reserve Bank Term Funding Program.
| Dollars in thousands (except per share amounts) | 9/30/2024 | 12/31/2023 | 9/30/2023 | ||||||
| Total assets | $ | 1,576,326 | $ | 1,549,671 | $ | 1,477,330 | |||
| Cash and cash equivalents | 132,376 | 128,284 | 84,224 | ||||||
| Total loans receivable, net | 686,708 | 622,529 | 598,029 | ||||||
| Investment securities | 672,054 | 700,712 | 705,558 | ||||||
| Deposits | 1,257,313 | 1,194,997 | 1,186,053 | ||||||
| Borrowings | 120,978 | 170,035 | 119,898 | ||||||
| Total shareholders' equity | 185,081 | 172,362 | 158,996 | ||||||
| Common shareholders' equity | 102,132 | 89,413 | 76,047 | ||||||
| Common equity book value per share | $ | 31.97 | $ | 27.69 | $ | 23.46 | |||
| Total risk-based capital to risk weighted assets (1) | 19.21 | % | 19.49 | % | 19.33 | % | |||
| CET1 capital to risk weighted assets (1) | 17.96 | % | 18.24 | % | 18.08 | % | |||
| Tier 1 leverage capital ratio (1) | 10.27 | % | 9.83 | % | 10.11 | % | |||
| (1) - Ratio is calculated using Bank only information and not consolidated information | |||||||||
Security Federal Bank 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.
Forward-looking statements:
Certain matters discussed in this press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to, among other things, expectations of the business environment in which the Company operates, projections of future performance, perceived opportunities in the market, potential future credit experience, and statements regarding the Company’s mission and vision. These forward-looking statements are based upon current management expectations and may, therefore, involve risks and uncertainties. The Company’s actual results, performance, or achievements may differ materially from those suggested, expressed, or implied by forward-looking statements as a result of a wide variety or range of factors including, but not limited to: potential adverse impacts to economic conditions in our local market area or other aspects of the Company’s business, operations or financial markets, including, without limitation, as a result of employment levels, labor shortages and the effects of inflation, a potential recession or slowed economic growth; economic conditions in the Company’s primary market area; demand for residential, commercial business and commercial real estate, consumer, and other types of loans; success of new products; competitive conditions between banks and non-bank financial service providers; changes in management’s business strategies, including expectations regarding key growth initiatives and strategic priorities; legislative or regulatory changes that adversely affect the Company’s business, including the interpretation of regulatory capital or other rules; the ability to attract and retain deposits; the availability of resources to address changes in laws, rules, or regulations or to respond to regulatory actions; adverse changes in the securities markets; changes in accounting policies and practices, as may be adopted by the financial institution regulatory agencies or the Financial Accounting Standards Board, including additional guidance and interpretation on accounting issues and details of the implementation of new accounting methods; technology factors affecting operations, including disruptions, security breaches, or other adverse events, failures or interruptions in, or attacks on, our information technology systems or on the third-party vendors who perform critical processing functions for us; pricing of products and services; environmental, social and governance goals and targets; the effects of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, and other external events on our business; and other risks detailed in the Company’s reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2023. These factors should be considered in evaluating forward-looking statements, and undue reliance should not be placed on such statements. The Company does not undertake any responsibility to update or revise any forward-looking statement.
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