Security Federal Corp Reports Lowered First Quarter Earnings due to Decrease in Net Interest Income and Increased Provisions for Credit Losses

Security Federal Corp, the parent company of Security Federal Bank, released its earnings report for the first quarter of 2024 on April 29. The company reported a net income of $1.8 million, or $0.54 per share, for the quarter ending on March 31. This is a decrease from the $2.7 million, or $0.82 per share, reported for the first quarter of 2023. The decline in net income was primarily due to a decrease in net interest income, which was impacted by rising costs of funds and an increase in provision for credit losses and non-interest expenses compared to the previous year.

Some key financial highlights from the first quarter included a decrease in net interest income by $262,000, or 2.6%, to $10.0 million. Total interest income increased to $18.7 million while total interest expenses rose to $8.7 million