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.

— Security Federal Corp
%
Lending55% Loans to businesses and consumers, including real estate and mortgage-related credit.
Deposit services20% Checking, savings, money market, and certificate of deposit accounts used to fund the bank.
Interest-earning assets20% Investment securities and other earning assets that support net interest income.
Fee and other banking services5% Letters of credit, service charges, and other ancillary banking services.

Security Federal serves local and regional banking customers that need deposit accounts, credit, and treasury-style...

  • Small business and commercial borrowersprimary

    They borrow for working capital, equipment, and business real estate financing.

  • Retail deposit customersprimary

    Households and individuals place deposits in checking, savings, money market, and CDs.

  • Mortgage and real estate borrowerssecondary

    Customers seek home and property-related financing through the bank.

  • Underserved community borrowerssecondary

    Borrowers in low-to-moderate income areas benefit from CDFI-oriented lending and funding access.

Security Federal is a U.S. community bank, with operations centered in its local banking markets rather than a broad...

  • •Operates in the United States through Security Federal Bank
  • •No international operating footprint is disclosed
  • •Local market conditions affect loan demand and deposit growth
  • •Community banking model ties performance to regional credit quality
  • •CDFI-related activities focus on underserved U.S. communities

The company’s strategy is to maintain liquidity, support loan growth, and fund deposit withdrawals and other...

01
Liquidity managementshort-term

The bank must fund loans, withdrawals, and operating needs through stable sources of cash.

02
Community lending and CDFI participationmedium-term

CDFI status can improve funding access and support lending in underserved markets.

03
Capital preservationmedium-term

Strong capital supports regulatory compliance, lending capacity, and dividend flexibility.

Security Federal faces the typical risks of a community bank: credit losses, deposit competition, interest-rate...

high

Interest rate risk

The bank's lending, deposit, investment, and borrowing activities are sensitive to rate changes.

Scope
Net interest income and securities values
Materiality
high
high

Credit quality deterioration

Loan losses can increase if borrowers weaken or collateral values fall.

Scope
Loan portfolio and allowance for credit losses
Materiality
high
high

Deposit outflows and pricing pressure

Community banks compete for deposits, and funding costs can rise quickly.

Scope
Funding base and liquidity
Materiality
high
medium

CDFI funding and program risk

The company participates in CDFI programs that may be affected by policy or funding changes.

Scope
Grants, awards, and community lending support
Materiality
medium
medium

Regulatory capital and dividend restrictions

Bank capital rules can limit distributions to the holding company.

Scope
Dividend capacity and parent-company liquidity
Materiality
medium
Allowance for credit losses
Provision expense and reserve levels
Fair value of securities
Other comprehensive income and asset valuations
Interest-rate-sensitive income and expense
Net interest income
Regulatory capital and dividend capacity
Liquidity and shareholder distributions

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: 29/04/2026