Security Federal announces quarterly earnings

Security Federal Corporation, the holding company for Security Federal Bank, has announced earnings for the six month and quarterly periods ended Sept. 30.

The Company reported net income available to common shareholders of $1.2 million or $0.40 per common share (basic) for the six months ended Sept. 30, an increase of $521,000 or 78.9 percent when compared to net income of $660,000 or $0.22 per common share (basic) for the six months ended Sept. 30, 2011. For the three months ended Sept. 30, net income available to common shareholders increased $252,000 or 81.8 percent to $560,000 compared to $308,000 for the three months ended Sept. 30, 2011. The increases in both periods were primarily the result of a decrease in the provision for loan losses.

Non-performing assets, which consist of non-accrual loans and repossessed assets, increased $1.6 million or 4.4 percent to $38.4 million at Sept. 30,from $36.8 million at March 31, and decreased from $42.0 million at June 30.

Net interest margin decreased 33 basis points to 2.82 percent for the six months ended Sept. 30 and 27 basis points to 2.83 percent for the quarter ended Sept. 30, when compared to the same periods in 2011. The decreases in margin are primarily a result of the significant decrease in loans. Total loans receivable, net, decreased $25.5 million or 5.9 percent to $403.0 million for the six months ended Sept. 30.

Non-interest income for the six-months and quarter ended Sept. 30, decreased $103,000 or 3.7 percent and $14,000 or 0.9 percent, respectively, compared to the same periods in 2011 primarily as the result of a decrease in the gain on sale of investments.

Total assets at Sept. 30were $904.2 million compared to $924.6 million at March 31, a decrease of $20.4 million or 2.2 percent for the six-month period.

For additional information contact Roy Lindburg, Chief Financial Officer, at (803) 641-3070