Security Federal Corporation Announces Increase in Quarterly and Annual Earnings and Financial Results for 2025

AIKEN, S.C., Jan. 30, 2026 (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 quarter and year ended December 31, 2025.

The Company reported net income available to common shareholders of $3.9 million, or $1.24 per common share, for the quarter ended December 31, 2025, compared to $3.0 million, or $0.94 per common share, for the fourth quarter of 2024. Year-to-date net income available to common shareholders increased $3.3 million, to $12.0 million, or $3.80 per common share, for the year ended December 31, 2025, compared to $8.9 million, or $2.77 per common share, for the year ended December 31, 2024. The increase in both quarterly and year-to-date net income available to common shareholders was primarily due to increased net interest income and non-interest income and reductions in the provision for credit losses, which were partially offset by an increase in non-interest expense.

Fourth Quarter Comparative Financial Highlights

• Net interest income increased $1.3 million, or 11.5%, to $12.6 million during the fourth quarter of 2025, compared to $11.3 million during the fourth quarter of 2024 as the reduction in total interest expense exceeded the decrease in interest income.
• Total interest income decreased $437,000 or 2.2%, to $19.8 million while total interest expense decreased $1.7 million, or 19.3%, to $7.2 million during the fourth quarter of 2025 when compared to the same quarter in 2024. The decreases in interest income and interest expense were primarily the result of lower market interest rates.
• Non-interest income increased $1.0 million, or 35.4%, to $3.9 million during the fourth quarter of 2025 compared to the same quarter in 2024 primarily due to increases in grant income and rental income. The grants received during both periods were awarded by the Community Development Financial Institution (“CDFI”) Fund to support the Bank’s ongoing initiatives in community development financing within the most economically distressed communities in its market area. During 2025 and 2024, we received $1.2 million and $220,000, respectively, in CDFI Financial Assistance awards. Also, during 2024, we were granted $280,000 through the CDFI Fund Bank Enterprise Award program. During the first quarter of 2025, we purchased a multi-tenant property resulting in an increase in rental income. The property is intended to be the future site of a full-service branch for the Bank.
• Non-interest expense increased $1.5 million, or 16.0%, to $11.1 million during the quarter ended December 31, 2025, compared to the same quarter in the prior year due to increases in salaries and employee benefits and debit card expenses.

Full Year Comparative Financial Highlights

• Net interest income increased $5.3 million, or 12.8%, to $47.2 million compared to the prior year primarily due to an increase in interest income on loans and a reduction in interest expense on borrowings.
• Total interest income increased $1.3 million, or 1.7%, to $78.6 million while total interest expense decreased $4.0 million, or 11.4%, to $31.4 million.
• Non-interest income increased $1.3 million, or 12.5%, to $11.5 million primarily due to a $620,000 increase in grant income and a $548,000 increase in rental income. These increases were the result of the CDFI grant awards and the new building purchased in 2025.
• Non-interest expense increased $3.5 million, or 9.1%, to $41.6 million, primarily due to increases in salaries and employee benefits expense, occupancy expense and debit card expense.