Security Federal earnings available to common shareholders rose 13.0% to $3.6 million in the third quarter of 2026, as higher net interest and non-interest income offset increased expenses. The bank holding company also authorized further share repurchases.
Key Takeaways
- Third-quarter basic earnings per common share rose to $1.16 from $1.01 a year earlier.
- Nine-month income available to common shareholders increased 27.5% to $10.4 million.
- The board authorized repurchases of up to 124,035 common shares under its existing program.
Security Federal earnings and income drivers
For the three months ended September 30, 2026, income available to common shareholders was $3.587 million, compared with $3.174 million a year earlier. The company reported the results on October 30.
Security Federal said the increase was driven by a $592,000 rise in net interest income and a $157,000 increase in non-interest income. Those gains offset a $115,000 increase in non-interest expense and a less favorable credit-loss provision: the company recorded no provision in the latest quarter, compared with a $200,000 reversal a year earlier.
For the first nine months of 2026, income available to common shareholders was $10.376 million, or $3.35 per common share, versus $8.139 million, or $2.57 per share, in the same period of 2025. The company attributed the increase to higher net interest and non-interest income, which more than offset higher credit-loss provisions and expenses.
| Item | Details |
|---|---|
| Total assets | $1.625 billion at September 30, 2026, versus $1.618 billion at December 31, 2025 |
| Net loans receivable | $681.588 million versus $676.182 million |
| Deposits | $1.385 billion versus $1.372 billion |
| Borrowings | $26.683 million versus $35.262 million |
Credit quality and balance sheet
The nine-month provision for credit losses was $465,000, compared with a net reversal of $200,000 in the first nine months of 2025. The 2026 provision comprised $350,000 for loans and $115,000 for unfunded commitments.
Non-performing assets were $5.339 million at September 30, down from $5.842 million at December 31, 2025. The allowance for credit losses was $13.597 million, or 1.96% of gross loans.
Separately, the company’s 2025 cybersecurity risk disclosure describes management’s oversight of that risk and its information technology steering committee.
Share repurchase authorization
The board authorized the repurchase of up to 124,035 outstanding common shares under the current program, at prices to be determined by management. The authorization is not a statement that those shares have already been bought.
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