If You Invested in Security Fed Corp (SFDL)

Security Federal Corporation (SFDL) is the parent company of Security Federal Bank and operates in the commercial banking industry within the finance and insurance sector. According to company disclosures, Security Federal Corporation common stock trades on the Over-the-Counter market under the symbol SFDL. The company is based in Aiken, South Carolina, and functions as a bank holding company for Security Federal Bank.

Security Federal Bank provides what it describes as a full range of financial services. These services include trust and investment services offered by the Bank, and insurance services offered through the Bank’s wholly owned subsidiary, Security Federal Insurance, Inc. This structure allows the organization to offer traditional banking services together with trust, investment, and insurance capabilities under a single corporate umbrella.

The Bank operates through a network of 19 full-service branch locations. These branches are located in Aiken, Ballentine, Clearwater, Columbia, Graniteville, Langley, Lexington, North Augusta, Ridge Spring, Wagener and West Columbia in South Carolina, and in Augusta and Evans in Georgia. This footprint focuses on specific communities in South Carolina and Georgia, and the company’s public communications repeatedly emphasize this same branch network.

Security Federal Corporation’s public releases highlight recurring themes in its financial performance, including net interest income, interest expense, non-interest income, non-interest expense, provisions for credit losses, and measures of credit quality such as non-performing assets and allowance for credit losses. The company reports on balance sheet items such as total assets, loans receivable, investment securities, deposits, borrowings, and shareholders’ equity, as well as regulatory capital ratios calculated using Bank-only information.

The company has a long history of paying quarterly cash dividends to common shareholders. Its news releases state that the quarterly dividend announced in late 2025 represented the one hundred fortieth consecutive quarterly dividend since Security Federal Bank’s conversion in October 1987 from a mutual to a stock form of ownership. The company has also disclosed special cash dividends in addition to its regular quarterly dividend payments.

Security Federal Corporation’s earnings announcements describe how changes in interest income and interest expense, provisions for credit losses, and non-interest income and expenses affect net income available to common shareholders. The company also discusses factors such as repayment of borrowings from the Federal Reserve, changes in deposits, and purchases and maturities of investment securities in explaining movements in its balance sheet and funding profile.

In its credit quality disclosures, Security Federal Corporation provides information on non-performing assets, the ratio of non-performing assets to total assets, and the allowance for credit losses as a percentage of gross loans. These metrics are used by the company to describe the performance of its loan portfolio and its approach to provisioning for credit losses.

Security Federal Corporation has filed a Form 8-K to furnish earnings releases as material information under the Securities Exchange Act of 1934. In December 2025, the company filed a Form 15 (certification and notice of termination of registration under Section 12(g) or suspension of duty to file reports under Sections 13 and 15(d) of the Securities Exchange Act of 1934). In that filing, the company indicated that its common stock, with a par value of $0.01 per share, was the class of securities covered by the Form 15 and identified Rule 12g-4(a)(1) and Rule 12h-3(b)(1)(i) as the provisions relied upon to terminate or suspend the duty to file reports. The filing also reported an approximate number of holders of record as of the certification date.

Because of the Form 15 filing, Security Federal Corporation has indicated that it is terminating registration or suspending its duty to file certain periodic reports with the Securities and Exchange Commission under the Exchange Act. However, the company continues to issue public news releases regarding its financial results and dividend declarations, and it continues to describe its operations as the holding company for Security Federal Bank, with the same 19-branch network and service offerings.

Business model and operations

Based on its public communications, Security Federal Corporation’s business model centers on owning and supporting Security Federal Bank and its related subsidiary Security Federal Insurance, Inc. The Bank’s activities include generating interest income from loans and investments, incurring interest expense on deposits and borrowings, and earning non-interest income from sources such as rental income, ATM and check card fees, trust income, and gains on sale of loans and land held for sale. Non-interest expenses include salaries and employee benefits, occupancy expense, depreciation and maintenance of equipment, and cloud services expenses, among other categories described in the company’s financial highlights.

The company’s balance sheet data in its earnings releases show the relative importance of loans receivable, investment securities, cash and cash equivalents, and deposits. The company also reports borrowings, including borrowings from the Federal Reserve, and discusses repayment of these borrowings as a factor affecting interest expense and cash balances.

Capital and regulatory metrics

Security Federal Corporation’s disclosures include references to regulatory capital ratios for Security Federal Bank. These include total risk-based capital to risk-weighted assets, Common Equity Tier 1 (CET1) capital to risk-weighted assets, and the Tier 1 leverage capital ratio. The company notes that these ratios are calculated using Bank-only information and not consolidated information. The company also reports common shareholders’ equity and common equity book value per share as measures of common equity available to common shareholders.

Dividends and shareholder returns

The company’s press releases emphasize a long record of quarterly dividend payments to common shareholders since the Bank’s conversion from mutual to stock form in 1987. In addition to regular quarterly dividends, the company has announced a special cash dividend, explaining that this payment was made as a result of continued profitability and that future dividends would depend on the Board’s assessment of the company’s financial condition, earnings, and capital requirements.

Trading and reporting status

Security Federal Corporation common stock is described in its news releases as traded on the Over-the-Counter Bulletin Board or OTC market under the symbol SFDL. In its Form 8-K, the company stated that it had no securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934. In its Form 15, the company certified termination of registration or suspension of reporting obligations for its common stock under Section 12(g) and Sections 13 and 15(d) of the Exchange Act, relying on specified rules.

Geographic footprint

The company’s geographic footprint, as described in its public releases, is concentrated in South Carolina and Georgia. Security Federal Bank’s 19 full-service branches are located in Aiken, Ballentine, Clearwater, Columbia, Graniteville, Langley, Lexington, North Augusta, Ridge Spring, Wagener and West Columbia in South Carolina, and Augusta and Evans in Georgia. The company’s repeated listing of these locations underscores the importance of these communities to its operations.