Security Federal SFDL

Security Federal Corporation is a bank holding company that primarily owns and operates Security Federal Bank, a state chartered commercial bank. The corporation provides a range of financial services including lending, deposit taking, investment securities management, and insurance agency operations through its subsidiaries. Its main activities revolve around serving consumers and businesses in its regional market area.

The company generates revenue chiefly from interest income and fees on its loan portfolio, which includes commercial real estate, residential mortgages, construction loans, and consumer loans. Additional revenue comes from service charges on deposit accounts, gains on investment securities, and commissions from its insurance agency. The bank also earns fees from trust and investment services and from loan origination and sale activities.

The company operates through the following segments.

• Banking: This segment consists of Security Federal Bank, which accepts deposits from the public and originates loans such as commercial real estate, residential mortgages, construction loans, and consumer loans, while also providing treasury management and trust services.
• Investment Services: This segment comprises Security Federal Investments Inc., which manages the bank’s securities portfolio, invests in U. S. Treasury obligations, agency securities, mortgage backed securities, and other liquid assets to generate investment income and support liquidity.
• Insurance: This segment is represented by Security Federal Insurance Inc., which operates as an insurance agency offering auto, business, and home insurance policies to individuals and businesses, earning commissions on policies sold.

Security Federal Corporation holds a competitive position in the banking market of western South Carolina and eastern Georgia, where it competes with regional banks, credit unions, and financial technology firms. Its advantages include a long standing community presence, a network of nineteen full service branches, and its status as a certified community development financial institution that enables access to certain federal programs.

The company serves a diverse customer base that includes individual consumers, small and medium sized businesses, real estate developers, and municipal entities located primarily in Aiken, Lexington, Richland and Saluda counties in South Carolina and Columbia and Richmond counties in Georgia. Specific customer names are not disclosed in the filing.