The parent company for Aiken -based Security Federal Bank on Tuesday reported a 6.4 percent increase in earnings for 2017 compared to the year-ago period.
Security Federal Corp. reported pre-tax income of $8.4 million for the year ending Dec. 31, compared to $7.8 million in 2016. The Tax Cuts and Jobs Act signed into law Dec. 22 reduced the company’s federal corporate tax rate from 35 percent to 21 percent effective Jan. 1, which led the company to revalue its net deferred tax asset for the previous year by $628,000.
The result of the one-time charge resulted in earnings to common shareholders of $5.9 million, or $2.01 per basic share, a 4.8 percent decrease from the $6.2 million, or $2.09 per basic share, for the year ending Dec. 31, 2016.
The company, metro Augusta’s fifth-largest bank by market share according to the Federal Deposit Insurance Corp., operates 15 full-service branch offices in South Carolina and Georgia.
Chief Executive Officer Chris Verenes said in prepared remarks that “2017 was a solid year for Security Federal with strong growth in core earnings and continued loan growth. The results were muted slightly as a result of the Act, however, looking beyond this we expect to see significant future benefits from the legislation.”
Total assets increased $56.1 million to $868.8 million as of Dec. 31, a 6.9 percent increase from the $812.7 reported during the year-ago period.
Net loans receivable grew $30.8 million to $390.5 million during 2017, up 8.6 percent from $359.7 million the previous year. Total deposits increased $48 million to $702.1 million, a 7.3 percent increase from the previous year. The company finished the year with net interest income increased $740,000, or 3 percent, to $25.6 million for the year.