Security Federal Corporation reported its financial results for the third quarter and nine months ended September 30, 2024, showing a mixed performance compared to the previous fiscal period. Total assets increased by $26.7 million, reaching $1.58 billion, while total liabilities rose to $1.39 billion, up from $1.38 billion at the end of 2023. Shareholders' equity also saw a notable increase of $12.7 million, totaling $185.1 million.
The company experienced a 10.3% increase in total loans receivable, which rose to $686.7 million, driven by significant growth in residential and commercial real estate loans. Residential mortgage loans increased by 16.0% to $200.5 million, while commercial real estate loans grew by 10.7% to $293.2 million. Total deposits increased by 5.2% to $1.26 billion, with notable growth in certificates of deposit, which rose to $302.9 million from $230.8 million.
Net interest income for the third quarter increased by 10.2% to $10.4 million, while total tax-equivalent interest income rose by 16.0% to $19.6 million. However, net income available to common shareholders for the quarter decreased by 6.0% to $2.0 million, reflecting higher interest expenses, which surged by 23.7% to $9.1 million. The provision for credit losses for the quarter was $580,000, compared to no provision in the same quarter of the previous year.
For the nine months ended September 30, 2024, net income available to common shareholders was $5.9 million, a decrease of 10.6% from $6.6 million in 2023. Net interest income for this period increased by 6.1% to $30.6 million, while non-interest income rose by 11.8% to $7.4 million, driven by increases in trust income and commissions.
The company’s capital ratios remained strong, with a Common Equity Tier 1 (CET1) capital ratio of 18.0%, exceeding regulatory requirements. The capital conservation buffer was reported at 11.2%. The company also announced plans to redeem $16.5 million in outstanding 10-Year Notes on November 22, 2024.
Overall, while Security Federal Corporation showed growth in loans and deposits, it faced challenges with rising interest expenses and a decrease in net income compared to the previous year.
About SECURITY FEDERAL CORP
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