Originally created 02/11/99

Bank reports steady earnings



Security Federal Bank's holding company, Security Federal Corp., reported a slight increase in third-quarter earnings but an overall loss for the nine-month period ending Dec. 31.

The Aiken-based community bank's 1998 fiscal year ends March 31.

It reported third-quarter earnings of $479,000, or 57 cents per share, compared to $469,000, or 56 cents per share, from the same period the prior year.

Earnings for the nine-month period fell to $1.310 million, or $1.56 per share, from the $1.324 million, or $1.58 per share, from the same period the prior year.

"The increase in earnings for the quarter was primarily due to an increase in the gain on sale of mortgage loans," said Timothy W. Simmons, president and CEO of Security Federal. "The decrease in earnings for the nine-month period was primarily due to increases in interest expense and salary and employee benefits expense."

The bank's return on equity for the quarter was 9.98 percent, while its return on assets was 0.81 percent.

The reported per-share income figures from both reporting periods have been adjusted to reflect a stock dividend issued Dec. 15 to shareholders of record as of Nov. 30.

Security Federal, which operates 10 full-service banking centers in and around Aiken and North Augusta, reported total assets of $244.4 million and total loans of $146.9 million.

The bank's loan-to-deposit ratio is 73 percent.

In fiscal year 1997, the bank announced record earnings of $1.7 million, or $4.09 per share, more than double the prior year's earnings of $835,000.