Security Federal Corp (OTCID: SFDL) is a community banking company that operates through its bank subsidiary serving counties in South Carolina and Georgia. It makes money primarily on net interest income, the spread between interest earned on loans and investments and interest paid on deposits and borrowings. As of December 31, 2025, the bank operated 19 full-service branch offices across Aiken, Lexington, Richland, and Saluda counties in South Carolina and Columbia and Richmond counties in Georgia. The company owned 12 branch offices and its operations center, leased five offices, and employed 258 people as of December 31, 2025. Capital structure includes deposit accounts, Federal Home Loan Bank borrowings, and $12.5 million in 5.25% fixed-to-floating subordinated notes due 2034, the remaining tranche after the company redeemed $16.5 million of 10-Year Notes in November 2024. Stock trades on the OTCID Basic Market under the symbol SFDL.

Revenue model

Net interest income from loans held for investment and held for sale, interest from available-for-sale and held-to-maturity securities, and fee income from deposit accounts. The loan portfolio carries an allowance for credit losses of $13,529 thousand as of December 31, 2025, down from $13,894 thousand at December 31, 2024.

Products and services

Retail and commercial deposit accounts, residential and commercial loan origination, loans held for sale, held-to-maturity and available-for-sale investment securities, Federal Home Loan Bank stock, and bank-owned life insurance.

Customers and end markets

Retail consumers and commercial borrowers in Aiken, Lexington, Richland, and Saluda counties in South Carolina and Columbia and Richmond counties in Georgia.

Value-chain role

Community bank and holding company. Accepts deposits, originates and holds loans, and manages an investment securities portfolio. Asset/liability management is handled by an internal ALCO committee using net interest income simulation and economic value of equity analysis.

Geographic exposure

South Carolina counties of Aiken, Lexington, Richland, and Saluda; Georgia counties of Columbia and Richmond. 19 full-service branch offices as of December 31, 2025.

Source: SEC 10-K, filed 2026-03-20

Industry: State Commercial Banks Peers: Auburn National Bancorporation Inc Citizens Holding Co F & M Bank Corp PNC Financial Services Group Inc