Security Federal Corporation reported net income available to common shareholders of $2.6 million, or $0.81 per common share, for the first quarter ended March 31, 2025. This represents a substantial increase of $838,000, or 47.8%, compared to $1.8 million, or $0.54 per common share, in the first quarter of 2024.
The significant increase in net income was primarily driven by a robust $1.2 million, or 12.5%, rise in net interest income, reaching $11.2 million, and an improvement in the net interest margin to 3.05% from 2.75%. The company also recorded no provision for credit losses in Q1 2025, compared to a $335,000 provision in the prior year period.
Total assets decreased by $26.3 million, or 1.6%, to $1.59 billion, largely due to a $45.2 million reduction in cash and cash equivalents used to fully repay $50.0 million in borrowings from the Federal Reserve Bank. The company's capital ratios remained strong, with a Common Equity Tier 1 ratio of 18.90% and a total risk-based capital ratio of 20.20%.
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