Security Federal Corp Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Security Federal Corp reported increased assets and debt in Q1 2024, with net income of $12.84M and revenue of $154.94M.</b>

AI Summary

SECURITY FEDERAL CORP (SFDL) filed a Quarterly Report (10-Q) with the SEC on May 10, 2024. Total assets were $3,456,714,000 for the period ending March 31, 2024, compared to $3,225,125,000 for the period ending December 31, 2023. Total debt was $3,456,136,000 for the period ending March 31, 2024, compared to $3,228,777,000 for the period ending December 31, 2023. Net income was $12,842,000 for the three months ended March 31, 2024. Earnings per share (EPS) was $1.00 for the three months ended March 31, 2024. Revenue was $154,938,000 for the three months ended March 31, 2024.

Why It Matters

For investors and stakeholders tracking SECURITY FEDERAL CORP, this filing contains several important signals. The increase in total assets and total debt suggests potential expansion or investment activities by the company. The filing provides detailed financial statements, allowing investors to assess the company's performance and financial health.

Risk Assessment

Risk Level: medium — SECURITY FEDERAL CORP shows moderate risk based on this filing. The company's financial performance is subject to the inherent risks of the banking industry, including interest rate fluctuations and credit risk, as indicated by its balance sheet and income statement figures.

Analyst Insight

Investors should monitor Security Federal Corp's asset growth and debt levels in upcoming filings to understand the impact on profitability and risk exposure.

Key Numbers

• 3,456,714,000 — Total Assets (As of March 31, 2024)
• 3,225,125,000 — Total Assets (As of December 31, 2023)
• 3,456,136,000 — Total Debt (As of March 31, 2024)
• 3,228,777,000 — Total Debt (As of December 31, 2023)
• 12,842,000 — Net Income (For the three months ended March 31, 2024)
• 1.00 — EPS (For the three months ended March 31, 2024)
• 154,938,000 — Revenue (For the three months ended March 31, 2024)
• 158,540,000 — Revenue (For the three months ended March 31, 2023)

Key Players & Entities

• SECURITY FEDERAL CORP (company) — Filer
• SC (location) — State of Incorporation
• 2024-03-31 (date) — Period of Report
• 2024-05-10 (date) — Filed as of Date
• $3,456,714,000 (dollar_amount) — Total assets for the period ending March 31, 2024
• $12,842,000 (dollar_amount) — Net income for the three months ended March 31, 2024
• $1.00 (dollar_amount) — Earnings per share for the three months ended March 31, 2024
• $154,938,000 (dollar_amount) — Revenue for the three months ended March 31, 2024

FAQ

Key Financial Figures

• $0.01 — AT: SHARES: Common Stock, par value $0.01 per share May 10, 2024 3,225,443 1

Filing Documents

• sfdl20240331_10q.htm (10-Q) — 2622KB
• ex_637179.htm (EX-31.1) — 14KB
• ex_637180.htm (EX-31.2) — 14KB
• ex_637181.htm (EX-32) — 8KB
• img.jpg (GRAPHIC) — 1KB
• 0001437749-24-015888.txt (&nbsp;) — 13060KB
• sfdl-20240331.xsd (EX-101.SCH) — 68KB
• sfdl-20240331_cal.xml (EX-101.CAL) — 65KB
• sfdl-20240331_def.xml (EX-101.DEF) — 530KB
• sfdl-20240331_lab.xml (EX-101.LAB) — 421KB
• sfdl-20240331_pre.xml (EX-101.PRE) — 568KB
• sfdl20240331_10q_htm.xml (XML) — 3464KB

Financial Statements (unaudited)

Financial Statements (unaudited): 3 Consolidated Balance Sheets at March 31, 2024 and December 31, 2023 3 Consolidated Statements of Income for the Three Months Ended March 31, 2024 and 2023 4 Consolidated Statements of Comprehensive Income for the Three Months Ended March 31, 2024 and 2023 5 Consolidated Statements of Changes in Shareholders' Equity for the Three Months Ended March 31, 2024 and 2023 6 Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2024 and 2023 7

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 8 Item 2.

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 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 34 Item 4.

Controls and Procedures

Controls and Procedures 34 PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 35 Item 1A.

Risk Factors

Risk Factors 35 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 35 Item 3. Defaults Upon Senior Securities 35 Item 4. Mine Safety Disclosures 35 Item 5. Other Information 35 Item 6. Exhibits 36

Signatures

Signatures 37 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. 2 Table of Contents SECURITY FEDERAL CORPORATION AND SUBSIDIARIES Part 1. Financial Information

Financial Statements

Item 1. Financial Statements Consolidated Balance Sheets March 31, 2024 December 31, 2023 Dollars in thousands, except share amounts (Unaudited) (Audited) ASSETS: Cash and Cash Equivalents $ 92,775 $ 128,284 Certificates of Deposit with Other Banks 2,350 2,350 Investments: Available For Sale ("AFS") 532,469 537,640 Held To Maturity ("HTM") Net of Allowance for Credit Losses of $ 0 (Fair Value of $ 154,938 and $ 158,540 at March 31, 2024 and December 31, 2023, Respectively) 159,085 163,072 Total Investments 691,554 700,712 Loans Receivable, Net: Held For Sale 104 967 Held For Investment (Net of Allowance for Credit Losses of $ 12,842 and $ 12,569 at March 31, 2024 and December 31, 2023, Respectively) 645,903 621,562 Total Loans Receivable, Net 646,007 622,529 Accrued Interest Receivable 6,028 5,512 Operating Lease Right-of-Use ("ROU") Assets 1,285 1,402 Land Held for Sale 938 938 Premises and Equipment, Net 29,713 28,637 Federal Home Loan Bank ("FHLB") Stock, at Cost 1,041 922 Bank Owned Life Insurance ("BOLI") 28,126 27,954 Goodwill 1,200 1,200 Other Assets 17,197 29,231 Total Assets $ 1,518,214 $ 1,549,671 LIABILITIES: Deposit Accounts $ 1,205,879 $ 1,194,997 Borrowings from Federal Reserve Bank ("FRB") 74,200 119,200 Other Borrowings 19,528 19,180 Junior Subordinated Debentures 5,155 5,155 Subordinated Debentures 26,500 26,500 Operating Lease Liabilities 1,323 1,442 Other Liabilities 11,060 10,835 Total Liabilities $ 1,343,645 $ 1,377,309 SHAREHOLDERS' EQUITY: Senior Non-Cumulative Perpetual Preferred Stock, Series ECIP, $ 1,000 Par Value; 82,949 Shares Authorized, Issued and Outstanding at March 31, 2024 and December 31, 2023 $ 82,949 $ 82,949 Common Stock, $ 0.01 Par Value; 5,000,000 Shares Authorized; 3,456,714 Shares Issued and 3,225,125 Shares Outstanding at March 31, 2024 and 3,456,136 Shares Issued and 3,228,777 Shares Outstanding at December 31, 2023, Respec

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements NOTE 1 - BASIS OF PRESENTATION The accompanying unaudited consolidated financial statements were prepared in accordance with instructions for Form 10 -Q and accounting principles generally accepted in the United States of America ("GAAP"); therefore, they do not include all disclosures necessary for a complete presentation of financial condition, results of operations, and cash flows. Such statements are unaudited but, in the opinion of management, reflect all adjustments, which are of a normal recurring nature and necessary for a fair presentation of results for the selected interim periods. The information included in Security Federal Corporation's (the "Company") Form 10 -K for the year ended December 31, 2023 (" 2023 Form 10 -K") should be referred to when reviewing interim financial statements. The unaudited consolidated results of operations for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024 or any other period. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. NOTE 2 - PRINCIPLES OF CONSOLIDATION The accompanying unaudited consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Security Federal Bank (the "Bank") and the Bank's wholly owned subsidiaries, Security Federal Investments, Inc. ("SFINV") and Security Federal Insurance, Inc. ("SFINS"). SFINV was formed to hold investment securities and allow for better management of the securities portfolio. SFINS is an insurance agency offering auto, business, and h

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements NOTE 6 - INVESTMENTS, AVAILABLE FOR SALE ("AFS") AFS securities are recorded at fair market value. There was no allowance for credit losses for AFS securities as of March 31, 2024 and December 31, 2023 . The amortized cost, gross unrealized gains, gross unrealized losses, and fair values of AFS securities at the dates indicated were as follows: March 31, 2024 Dollars in thousands Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Student Loan Pools $ 48,005 $ 104 $ ( 406 ) $ 47,703 Small Business Administration ("SBA") Bonds 73,124 385 ( 2,709 ) 70,800 Tax Exempt Municipal Bonds 20,519 509 ( 993 ) 20,035 Taxable Municipal Bonds 64,649 — ( 11,897 ) 52,752 Mortgage-Backed Securities ("MBS") 371,494 123 ( 30,438 ) 341,179 Total AFS Securities $ 577,791 $ 1,121 $ ( 46,443 ) $ 532,469 December 31, 2023 Dollars in thousands Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Student Loan Pools $ 51,022 $ 72 $ ( 728 ) $ 50,366 SBA Bonds 79,014 416 ( 2,677 ) 76,753 Tax Exempt Municipal Bonds 21,501 643 ( 908 ) 21,236 Taxable Municipal Bonds 64,669 — ( 11,554 ) 53,115 MBS 368,081 31 ( 31,942 ) 336,170 Total AFS Securities $ 584,287 $ 1,162 $ ( 47,809 ) $ 537,640 Student Loan Pools are typically 97% guaranteed by the United States government while SBA bonds are 100% backed by the full faith and credit of the United States government. The majority of the Bank's MBS are issued or guaranteed by an agency of the United States government such as Ginnie Mae, or by Government Sponsored Entities ("GSEs"), including Fannie Mae and Freddie Mac. Ginnie Mae MBS are backed by the full faith and credit of the United States government, while those issued by GSEs are not. The amortized cost and fair value of AFS securities at March 31, 2024 , are shown below by contractual maturity. Expected maturities will differ from contractual maturities because borr

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements The amortized cost and fair value of AFS securities pledged as collateral for certain deposit accounts, FHLB advances, FRB, and other borrowings were $ 521.1 million and $ 479.2 million at March 31, 2024 , and $ 533.7 million and $ 490.5 million at December 31, 2023 , respectively. There were no sales of AFS securities during the three months ended March 31, 2024 and 2023 ; and therefore, no proceeds from sales, gross gains or gross losses were recorded during those periods. The following tables summarize gross unrealized losses and the related fair value, aggregated by investment category and length of time that individual AFS securities have been in a continuous unrealized loss position at the dates indicated. March 31, 2024 Less than 12 Months 12 Months or More Total Dollars in thousands Fair Value Unrealized Losses # Fair Value Unrealized Losses # Fair Value Unrealized Losses Student Loan Pools $ 348 $ — 1 $ 38,658 $ ( 406 ) 32 $ 39,006 $ ( 406 ) SBA Bonds 2,208 ( 6 ) 5 36,193 ( 2,703 ) 57 38,401 ( 2,709 ) Tax Exempt Municipal Bonds 549 ( 1 ) 1 12,827 ( 992 ) 12 13,376 ( 993 ) Taxable Municipal Bonds — — — 52,752 ( 11,897 ) 59 52,752 ( 11,897 ) MBS 30,103 ( 176 ) 26 287,017 ( 30,262 ) 215 317,120 ( 30,438 ) $ 33,208 $ ( 183 ) 33 $ 427,447 $ ( 46,260 ) 375 $ 460,655 $ ( 46,443 ) December 31, 2023 Less than 12 Months 12 Months or More Total Dollars in thousands Fair Value Unrealized Losses # Fair Value Unrealized Losses # Fair Value Unrealized Losses Student Loan Pools $ 377 $ ( 1 ) 1 $ 43,872 $ ( 727 ) 34 $ 44,249 $ ( 728 ) SBA Bonds 2,200 ( 5 ) 4 39,151 ( 2,672 ) 63 41,351 ( 2,677 ) Tax Exempt Municipal Bonds — — — 12,965 ( 908 ) 12 12,965 ( 908 ) Taxable Municipal Bonds — — — 53,115 ( 11,554 ) 59 53,115 ( 11,554 ) MBS 36,069 ( 434 ) 30 292,864 ( 31,508 ) 213 328,933 ( 31,942 ) $ 38,646 $ ( 440 ) 35 $ 441,967 $ ( 47,369 ) 381 $ 480,613 $ ( 47,809 ) At March

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements NOTE 7 - INVESTMENTS, HELD TO MATURITY ("HTM") HTM securities are recorded at amortized cost. The amortized cost, gross unrealized gains, gross unrealized losses, and fair values of HTM securities at the dates indicated were as follows: March 31, 2024 Doll

View Full Filing

View this 10-Q filing on SEC EDGAR