Security Federal Corporation reported a solid financial performance for the fiscal year ending December 31, 2024, with total assets reaching $1.61 billion, a 4.0% increase from $1.55 billion in 2023. The company’s net income available to common shareholders was $8.9 million, or $2.77 per share, down from $10.2 million, or $3.14 per share, in the previous year. This decline was attributed to increased provisions for credit losses, higher non-interest expenses, and a rise in income tax provisions, despite a boost in net interest income and non-interest income.
The company experienced a notable increase in loans receivable, which rose to $687.1 million, a 10.4% increase from $622.5 million in 2023. This growth was driven primarily by increases in residential and commercial real estate loans, which saw respective increases of 17.8% and 9.0%. Total deposits also grew by 10.8% to $1.32 billion, with significant contributions from certificates of deposit and money market accounts. The bank's non-performing assets increased to $7.6 million, representing 0.47% of total assets, up from $6.8 million or 0.49% in the prior year.
Strategically, Security Federal Corporation has focused on enhancing its lending portfolio and expanding its market presence. The company has maintained a strong capital position, with a total risk-based capital ratio of 20.0% as of December 31, 2024, well above the regulatory minimum. The bank's capital conservation buffer was reported at 12.0%, indicating a robust capital structure that supports future growth initiatives. Additionally, the company has been actively managing its interest rate risk through various asset and liability management strategies.
Operationally, Security Federal Corporation employed 258 individuals as of December 31, 2024, with a workforce composition of 69% female and 31% male. The company has also been proactive in its community engagement, receiving $500,000 in grant income to support its initiatives in community development financing. Looking ahead, the company anticipates continued growth in its loan portfolio and remains committed to maintaining its well-capitalized status while navigating potential economic challenges, including inflation and interest rate fluctuations.
About SECURITY FEDERAL CORP
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