Security Federal Corp
Security Federal Corp is a U.S.-based bank holding company whose wholly owned subsidiary, Security Federal Bank, provides commercial banking services through a community banking model. Its business centers on deposit gathering, lending, investment securities, and related banking services for customers in its operating markets.
Fiscal year 2025 · change from previous year
Development 2020–2025
Business
Share of revenueLoans to businesses and consumers, including real estate and mortgage-related credit.
Checking, savings, money market, and certificate of deposit accounts used to fund the bank.
Investment securities and other earning assets that support net interest income.
Letters of credit, service charges, and other ancillary banking services.
Customers
Security Federal serves local and regional banking customers that need deposit accounts, credit, and treasury-style banking support. Its customer base includes small businesses, commercial borrowers, mortgage customers, and households in the communities where the bank operates. The CDFI-related disclosures indicate a focus on underserved and low-to-moderate income communities as part of its community banking mission.
They borrow for working capital, equipment, and business real estate financing.
Households and individuals place deposits in checking, savings, money market, and CDs.
Customers seek home and property-related financing through the bank.
Borrowers in low-to-moderate income areas benefit from CDFI-oriented lending and funding access.
Strategy
The company’s strategy is to maintain liquidity, support loan growth, and fund deposit withdrawals and other obligations through a traditional community banking balance sheet. It also seeks to preserve access to CDFI-related funding and program benefits that can support lending in underserved communities. Capital strength and regulatory compliance remain important to sustaining lending capacity and shareholder distributions.
The bank must fund loans, withdrawals, and operating needs through stable sources of cash.
CDFI status can improve funding access and support lending in underserved markets.
Strong capital supports regulatory compliance, lending capacity, and dividend flexibility.
Geography
Security Federal is a U.S. community bank, with operations centered in its local banking markets rather than a broad international footprint. The available disclosures do not provide a country revenue split, but the business is clearly concentrated in the United States and exposed to local deposit, credit, and real estate conditions. Its geography matters because lending demand, deposit flows, and credit quality are tied to the economic health of the communities it serves.
Risks
Security Federal faces the typical risks of a community bank: credit losses, deposit competition, interest-rate sensitivity, and regulatory oversight. Company-specific exposure also includes uncertainty around CDFI funding and the holding company’s reliance on bank dividends for liquidity and shareholder payouts.
The bank's lending, deposit, investment, and borrowing activities are sensitive to rate changes.
Exposure: Net interest income and securities values
Loan losses can increase if borrowers weaken or collateral values fall.
Exposure: Loan portfolio and allowance for credit losses
Community banks compete for deposits, and funding costs can rise quickly.
Exposure: Funding base and liquidity
The company participates in CDFI programs that may be affected by policy or funding changes.
Bank capital rules can limit distributions to the holding company.
Exposure: Dividend capacity and parent-company liquidity
Accounting
Judgemental itemsManagement estimates expected loan losses and unfunded commitment losses, which can materially affect earnings.
Impact: Provision expense and reserve levels
Investment portfolio values can change with interest rates and market conditions.
Impact: Other comprehensive income and asset valuations
Deposit pricing and borrowing costs change with market rates, affecting net interest margin.
Impact: Net interest income
Capital ratios influence whether the bank can upstream cash to the holding company.
Impact: Liquidity and shareholder distributions
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Last updated: 29/04/2026