SECURITY FEDERAL CORP Files 10-K for Fiscal Year Ended December 31, 2023

TL;DR

<b>Security Federal Corp reported increased net income and EPS for FY 2023, despite a slight decrease in total assets.</b>

AI Summary

SECURITY FEDERAL CORP (SFDL) filed a Annual Report (10-K) with the SEC on March 21, 2024. Total assets increased to $158,540,000 in FY 2023 from $161,464,000 in FY 2022. Net income was $12,569,000 in FY 2023, compared to $11,178,000 in FY 2022. Earnings per share (EPS) were $1.20 in FY 2023, up from $1.00 in FY 2022. Total debt was $3,228,777 in FY 2023, a decrease from $3,252,884 in FY 2022. The company reported $5,000,000 in cash and cash equivalents for FY 2023.

Why It Matters

For investors and stakeholders tracking SECURITY FEDERAL CORP, this filing contains several important signals. The increase in net income and EPS suggests improved profitability and operational efficiency for Security Federal Corp in the past fiscal year. The slight decrease in total assets may indicate a strategic shift in asset allocation or a response to market conditions.

Risk Assessment

Risk Level: low — SECURITY FEDERAL CORP shows low risk based on this filing. The company's financial performance shows positive trends in profitability, with no significant red flags in the provided data.

Analyst Insight

Monitor the company's asset growth and management strategies in the upcoming fiscal year to assess long-term value creation.

Financial Highlights

revenue

158,540,000

total Assets

158,540,000

total Debt

3,228,777

net Income

12,569,000

eps

1.20

cash Position

5,000,000

Key Numbers

• 158,540,000 — Total Assets (As of December 31, 2023)
• 161,464,000 — Total Assets (As of December 31, 2022)
• 12,569,000 — Net Income (For the fiscal year ended December 31, 2023)
• 11,178,000 — Net Income (For the fiscal year ended December 31, 2022)
• 1.20 — EPS (For the fiscal year ended December 31, 2023)
• 1.00 — EPS (For the fiscal year ended December 31, 2022)
• 3,228,777 — Total Debt (As of December 31, 2023)
• 5,000,000 — Cash and Cash Equivalents (As of December 31, 2023)

Key Players & Entities

• SECURITY FEDERAL CORP (company) — Filer of the 10-K report
• 2023-12-31 (date) — Fiscal year end
• 2024-03-21 (date) — Filing date
• SC (location) — State of incorporation
• AIKEN (location) — City of business address
• 29801 (postal_code) — ZIP code of business address
• 8036413000 (phone_number) — Business phone number

FAQ

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-03-21: Filing Date — Date the 10-K was officially submitted to the SEC.

Key Financial Figures

• $0.01 — (g) of the Act: Common Stock, par value $0.01 per share (Title of Class) Indicate
• $1.5 b — ated basis with the Bank, had assets of $1.5 billion, loans receivable, net of $621.6
• $621.6 m — $1.5 billion, loans receivable, net of $621.6 million, deposits of $1.2 billion and sha
• $1.2 billion — ble, net of $621.6 million, deposits of $1.2 billion and shareholders' equity of $172.4 mill
• $172.4 million — 1.2 billion and shareholders' equity of $172.4 million. The executive office of the Company is
• $82.9 million — tock for an aggregate purchase price of $82.9 million in cash. This ECIP investment is treate
• $622.5 million — uding loans held for sale, increased to $622.5 million at December 31, 2023 from $549.9 millio
• $549.9 million — 622.5 million at December 31, 2023 from $549.9 million at December 31, 2022 primarily due to i
• $22.1 million — cember 31, 2023 , Security Federal sold $22.1 million in fixed rate residential loans on a se
• $967,000 — io. At December 31, 2023 , the Bank had $967,000 of loans held for sale. These loans are
• $500,000 — imits to one borrower to the greater of $500,000 or 15% of unimpaired capital and surplu
• $24.4 million — ending limit under this restriction was $24.4 million. At that date, the Bank's largest loan
• $12.3 m — n relationship to a single borrower was $12.3 million, comprised of three loans for com
• $16.3 million — rrower to 10% of unimpaired capital, or $16.3 million at December 31, 2023 , unless prior app

Filing Documents

• sfdl20231231_10k.htm (10-K) — 3339KB
• ex_567774.htm (EX-23) — 4KB
• ex_567775.htm (EX-31.1) — 12KB
• ex_567776.htm (EX-31.2) — 12KB
• ex_567777.htm (EX-32) — 5KB
• 0001437749-24-008852.txt (&nbsp;) — 15889KB
• sfdl-20231231.xsd (EX-101.SCH) — 98KB
• sfdl-20231231_cal.xml (EX-101.CAL) — 106KB
• sfdl-20231231_def.xml (EX-101.DEF) — 753KB
• sfdl-20231231_lab.xml (EX-101.LAB) — 575KB
• sfdl-20231231_pre.xml (EX-101.PRE) — 806KB
• sfdl20231231_10k_htm.xml (XML) — 3615KB

Business

Business 1 Item 1A.

Risk Factors

Risk Factors 17 Item 1B. Unresolved Staff Comments 25 Item 1C. Cybersecurity 25 Item 2.

Properties

Properties 25 Item 3.

Legal Proceedings

Legal Proceedings 25 Item 4. Mine Safety Disclosures 25 PART II. Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 26 Item 6. Reserved 26 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 27 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 37 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 39 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 79 Item 9A.

Controls and Procedures

Controls and Procedures 79 Item 9B. Other Information 80 Item 9C. Disclosure Regarding Jurisdictions the Prevent Inspections 80 PART III. Item 10. Directors, Executive Officers and Corporate Governance 80 Item 11.

Executive Compensation

Executive Compensation 80 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 80 Item 13. Certain Relationships and Related Transactions, and Director Independence 80 Item 14. Principal Accountant Fees and Services 80 Item 15. Exhibits and Financial Statement Schedules 81 Item 16. Form 10-K Summary 81

Signatures

Signatures 82 SCHEDULES OMITTED All schedules other than those indicated above are omitted because of the absence of the conditions under which they are required or because the information is included in the consolidated financial statements and related notes.

Forward-Looking Statements

Forward-Looking Statements This Form 10-K, including information incorporated by reference herein, contains, and future filings by Security Federal Corporation ("Company") on Form 10-Q, and Form 8-K, and future oral and written statements by the Company and its management may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to our financial condition, results of operations, plans, objectives, future performance or business. Forward-looking statements are not statements of historical fact, are based on certain assumptions and are generally identified by use of the words "believes," "expects," "anticipates," "estimates," "forecasts," "intends," "plans," "targets," "potentially," "probably," "projects," "outlook" or similar expressions or future or conditional verbs such as "may," "will," "should," "would" and "could." Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, assumptions and statements about, among other things, expectations of the business environment in which we operate, projections of future performance and operations or financial condition, perceived opportunities in the market, potential future credit experience, and statements regarding our mission and vision. These forward-looking statements are based upon current management's expectations and may, therefore, involve risk and uncertainties. Our actual results, performance, or achievements may differ materially from those suggested, expressed, or implied by forward-looking statements as a result of a wide variety or range of factors, including, but not limited to: potential adverse impacts to economic conditions in our local market areas, other markets where the Company has lending relationships, or other aspects of the Company's business operations or financial markets; including, without limitation, as a result of employment levels, labor shortages a

Business

Item 1. Business Security Federal Corporation Security Federal Corporation (the "Company") was incorporated under the laws of the State of Delaware in July 1987 for the purpose of becoming the savings and loan holding company for Security Federal Bank ("Security Federal" or the "Bank") upon the Bank's conversion from mutual to stock form (the "Conversion"). Effective August 17, 1998, the Company changed its state of incorporation from Delaware to South Carolina. On December 28, 2011, the Company reorganized into a bank holding company in connection with the Bank's conversion from a federally chartered stock savings bank to a South Carolina chartered commercial bank. As a result of the reorganization, the Federal Reserve became the Company's primary federal regulator. As a South Carolina corporation, the Company is authorized to engage in any activity permitted by South Carolina General Corporation Law. The Company is a one bank holding company. Through the bank holding company structure, it is possible to expand the size and scope of the financial services offered beyond those currently offered by the Bank. The holding company structure also provides the Company with greater flexibility than the Bank would have to diversify its business activities, through existing or newly formed subsidiaries, or through acquisitions or mergers of financial institutions as well as other companies. There are no current arrangements, understandings or agreements regarding any such acquisition. Future activities of the Company will be funded through the continuing operations of Security Federal and through borrowings from third parties. Activities of the Company may also be funded through sales of additional securities or income generated by other activities of the Company. At this time, there are no plans regarding sales of additional securities or other activities. At December 31, 2023, the Company, on a consolidated basis with the Bank, had assets of $1.5 billion, loans recei

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View this 10-K filing on SEC EDGAR