AIKEN, S.C., Feb. 05, 2024 (GLOBE NEWSWIRE) — Security Federal Corporation (the “Company”) (OTC:SFDL), the holding company for Security Federal Bank (the “Bank”), today announced its earnings and financial results for the quarter and year ended December 31, 2023.
The Company reported net income of $3.6 million, or $1.12 per common share, for the quarter ended December 31, 2023 compared to $3.3 million, or $1.01 per common share, for the fourth quarter of 2022. The increase in quarterly net income was primarily due to increased non-interest income. Additionally, during 2023, the Company recognized a $395,600 reduction in income tax expense as a result of tax credits associated with the Bank’s newest branch located in Augusta, Georgia. Net income was $10.2 million, or $3.14 per common share, for both the years ended December 31, 2023 and 2022.
Fourth Quarter Financial Highlights
Net interest income decreased $531,000, or 4.8%, to $10.4 million as the increase in interest expense exceeded the increase in interest income.
Total interest income increased $5.2 million, or 39.3%, to $18.4 million while total interest expense increased $5.7 million, or 256.3%, to $7.9 million.
Non-interest income increased $621,000, or 28.9%, to $2.8 million primarily due to an increase in grant income and trust department revenue.
Non-interest expense increased $127,000, or 1.4%, to $9.1 million.
Quarter Ended
(Dollars in Thousands, except for Earnings per Share)
12/31/2023
12/31/2022
Total interest income
$
18,384
$
13,197
Total interest expense
7,949
2,231
Net interest income
10,435
10,966
Provision for credit losses
25
–
Net interest income after provision for credit losses
10,410
10,966
Non-interest income
2,770
2,149
Non-interest expense
9,051
8,924
Income before income taxes
4,129
4,191
Provision for income taxes
513
902
Net income
$
3,616
$
3,289
Earnings per common share (basic)
$
1.12
$
1.01
Full Year Comparative Financial Highlights
Net interest income increased $1.7 million, or 4.5%, to $39.2 million when compared to the prior year primarily due to the increase in interest income on investment securities and loans, which was partially offset by an increase in interest expense on deposits.
Total interest income increased $22.4 million, or 52.6%, to $65.0 million while total interest expense increased $20.7 million, or 411.7%, to $25.7 million.
Non-interest income decreased $222,000, or 2.3%, to $9.4 million primarily due to a decrease in gain on sale of loans.
Non-interest expense increased $1.7 million, or 4.9%, to $35.9 million.
Year Ended
(Dollars in Thousands, except for Earnings per Share)
12/31/2023
12/31/2022
Total interest income
$
64,977
$
42,578
Total interest expense
25,729
5,028
Net interest income
39,248
37,550
Provision for credit losses