UNITED STATES
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SECURITIES AND EXCHANGE COMMISSION
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Washington, D.C. 20549
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FORM 8-K
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CURRENT REPORT
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Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934
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Date of Report (Date of earliest event reported): May
3, 2021
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SECURITY FEDERAL CORPORATION
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(Exact name of registrant as specified in its charter)
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South Carolina
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000-16120
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57-0858504
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(State or other jurisdiction
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(Commission
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(IRS Employer
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of incorporation)
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File Number)
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Identification No.)
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238 Richland Avenue NW, Aiken, South Carolina
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29801
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(Address of principal executive offices)
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(Zip Code)
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Registrant's telephone number (including area code): (803) 641-3000
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the
following provisions.
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[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this
chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company [ ]
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with
any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]
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SECURITY FEDERAL CORPORATION
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Date: May 3, 2021
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By:
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/s/ Darrell Rains |
Darrell Rains
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Chief Financial Officer
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•
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Total interest income was $9.1 million for the first quarters of both 2021 and 2020, while interest expense decreased $1.1
million or 51.5% to $1.1 million for the quarter ended March 31, 2021
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•
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Non-interest income and expense remained flat at $2.8 million and $7.6 million, respectively, for the quarters ended March 31, 2021 and 2020
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•
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Average interest earning assets grew $167 million to $1.1 billion at March 31, 2021 compared to $926 million at March 31, 2020
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•
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Average interest bearing liabilities increased $60.1 million to $868.9 million at March 31, 2021 from $808.8 million at March 31, 2020
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Quarter Ended
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(Dollars in Thousands, except for Earnings per Share)
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3/31/2021
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3/31/2020
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Total interest income
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$ 9,097
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$ 9,095
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Total interest expense
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1,077
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2,219
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Net interest income
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8,020
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6,876
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Provision for loan losses
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(870)
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700
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Net interest income after provision for loan losses
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8,890
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6,176
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Non-interest income
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2,774
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2,796
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Non-interest expense
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7,610
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7,644
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Income before income taxes
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4,054
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1,328
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Provision for income taxes
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875
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264
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Net income
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$ 3,179
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$ 1,064
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Earnings per common share (basic)
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$ 0.98
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$ 0.34
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Quarter Ended
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Dollars in thousands
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3/31/2021
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3/31/2020
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Provision for loan losses
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$ (870)
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$ 700
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Net charge-offs
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$ 26
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$ 54
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At Period End (dollars in thousands):
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3/31/2021
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12/31/2020
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3/31/2020
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Non-performing assets
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$ 3,861
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$ 3,624
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$ 4,443
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Non-performing assets to gross loans
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0.75%
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0.75%
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0.96%
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Allowance for loan losses
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$ 11,967
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$ 12,843
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$ 9,872
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Allowance to gross loans
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2.33%
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2.64%
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2.13%
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• |
Total assets increased $7.7 million during the first quarter of 2021 and $149.6 million since the first quarter of 2020 to $1.2 billion at March
31, 2021
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•
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Net loans receivable increased $29.6 million during the first quarter of 2021 and $48.8 million since the first quarter of 2020 to $508.8 million
at March 31, 2021, primarily due to originations of Paycheck Protection Program (“PPP”) loans
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•
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Investment and mortgage-backed securities decreased $21.5 million, or 3.5%, during the first quarter to $586.1 million at March 31, 2021,
primarily due to principal pay downs received and maturities of investment and mortgage-backed securities
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•
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Total deposits increased $51.7 million to $969.8 million at March 31, 2021 from $918.1 million at December 31, 2020, primarily due to PPP funds
deposited and an increase in commercial checking accounts
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Dollars in thousands (except per share amounts)
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3/31/2021
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12/31/2020
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3/31/2020
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Total assets
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$ 1,179,421
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$ 1,171,710
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$ 1,029,774
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Cash and cash equivalents
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19,105
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18,506
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15,462
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Total loans receivable, net *
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508,789
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479,167
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459,967
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Investment and mortgage-backed securities
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586,073
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607,579
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487,611
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Deposits
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969,802
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918,096
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776,000
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Borrowings
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90,652
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131,972
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147,830
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Shareholders' equity
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109,261
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111,906
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96,262
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Book value per share
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$ 33.59
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$ 34.40
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$ 29.59
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Total risk based capital to risk weighted assets (1)
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19.67%
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19.89%
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17.33%
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CET1 capital to risk weighted assets (1)
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18.42%
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18.63%
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16.08%
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Tier 1 leverage capital ratio (1)
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9.80%
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9.76%
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10.30%
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* Includes PPP loans of $60.2 million and $47.1 million at 3/31/2021 and 12/31/2020, respectively.
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(1)- Ratio is calculated using Bank only information and not consolidated information
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