Security Federal Corp (SFDL) Quarterly 10-Q Report

The report was filed on November 8, 2024

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Security Federal Corp (SFDL0.00%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.

Total assets increased by $26.7 million to $1.58 billion, driven by an increase in loans receivable and cash equivalents. Loans receivable, net, rose by $64.2 million, primarily due to increases in real estate loans.

Deposits increased by $62.3 million to $1.26 billion, attributed to growth in certificates of deposit and money market accounts. The Bank had $25.8 million in brokered time deposits at the end of the period.

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Borrowings from the Federal Reserve Bank were $65.0 million, down from $119.2 million at the end of the previous year. Other borrowings increased to $24.3 million.

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Net income available to common shareholders decreased by 6.0% to $2.0 million, with earnings per share at $0.62. The decrease was due to higher non-interest expenses and preferred stock dividends.

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Net interest income increased by 10.2% to $10.4 million, supported by an increase in average interest-earning assets and net interest margin.

The provision for credit losses was $580,000, reflecting loan growth and higher charge-offs. Net charge-offs totaled $79,000 for the quarter.

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Non-interest income rose by 21.1% to $2.6 million, driven by increases in trust income, insurance commissions, and gains on loan sales.

Non-interest expenses increased by 4.4% to $9.3 million, with compensation and employee benefits being the largest contributor to the increase.

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The provision for income taxes was $732,000, reflecting a higher pre-tax income. The effective tax rate was 23.3% for the quarter.

Shareholders' equity increased by $12.7 million to $185.1 million, primarily due to net income and a reduction in accumulated other comprehensive loss.

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The Bank maintained a 'well-capitalized' status with a Common Equity Tier 1 Capital ratio of 18.0%. The capital conservation buffer was 11.2%.

This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Security Federal Corp quarterly 10-Q report dated November 8, 2024. To report an error, please email earnings@qz.com.