SECURITY FEDERAL CORP Reports Strong Q4 and Full-Year 2025 Earnings with Significant EPS Growth and Debt Reduction

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Security Federal Corp delivered robust financial results for Q4 and full-year 2025, marked by substantial increases in net income and EPS. The company's strategic financial management is evident in the significant reduction of borrowings and improved credit quality, including a reversal of credit loss provisions. These strong operational and balance sheet improvements, coupled with increased deposits and common equity book value, position the company favorably, especially as its stock trades near its 52-week high. Investors should view these results as a strong indicator of financial health and operational efficiency.

check_boxEvenements cles

• Strong Q4 Earnings Growth

  Net income available to common shareholders increased 30% to $3.9 million, or $1.24 per share, in Q4 2025, up from $3.0 million, or $0.94 per share, in Q4 2024.

• Robust Full-Year Performance

  Full-year net income available to common shareholders rose 34.8% to $12.0 million, or $3.80 per share, for 2025, compared to $8.9 million, or $2.77 per share, in 2024.

• Improved Credit Quality

  The company reported a $235,000 reversal of provision for credit losses for the full year 2025, a significant improvement from a $1.4 million provision in 2024. Non-performing assets also decreased year-over-year.

• Substantial Debt Reduction

  Borrowings decreased by 62.1% to $35.3 million at year-end 2025, driven by the repayment of Federal Reserve borrowings and junior subordinated debentures, significantly strengthening the balance sheet.

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Security Federal Corp delivered robust financial results for Q4 and full-year 2025, marked by substantial increases in net income and EPS. The company's strategic financial management is evident in the significant reduction of borrowings and improved credit quality, including a reversal of credit loss provisions. These strong operational and balance sheet improvements, coupled with increased deposits and common equity book value, position the company favorably, especially as its stock trades near its 52-week high. Investors should view these results as a strong indicator of financial health and operational efficiency.