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
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.
| % | |
|---|---|
| Lending | 55% Loans to businesses and consumers, including real estate and mortgage-related credit. |
| Deposit services | 20% Checking, savings, money market, and certificate of deposit accounts used to fund the bank. |
| Interest-earning assets | 20% Investment securities and other earning assets that support net interest income. |
| Fee and other banking services | 5% 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...
Credit quality deterioration
Loan losses can increase if borrowers weaken or collateral values fall.
- Scope
- Loan portfolio and allowance for credit losses
- Materiality
- high
Deposit outflows and pricing pressure
Community banks compete for deposits, and funding costs can rise quickly.
- Scope
- Funding base and liquidity
- Materiality
- high
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
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
: 29.4.2026