Aiken bank company reports lower profits

Aiken-based Security Federal Corp. reported a drop in profits for its fiscal year, which ended in March.

The holding company for Security Federal Bank reported net income for the past 12 months of $2.18 million - 87 cents per share - compared with $4.28 million - $1.66 per share - from the year before.

Net income for the fourth quarter was $132,000 - or 5 cents per share - compared with $1.02 million - or 40 cents per share - for the fourth quarter of last year.

Bank officials said the reason for both declines was the increase in the provision for loan losses.

Total deposits were $671 million at the end of the fourth quarter, up from $590 million a year ago.

Total assets March 31 were $984 million, up from $840 million a year ago.

Security Federal Bank has 13 branch locations in South Carolina and Georgia.

Board moves to end bookkeeping practice

WASHINGTON — The board that sets U.S. accounting standards on Monday moved to end the use of a bookkeeping device that allowed banks to park hundreds of billions of dollars in loans off their balance sheets and that has been blamed for stoking financial companies' losses as the housing market collapsed.

The change will tighten the use of so-called "qualifying special purpose entities" by requiring banks and other companies to report to regulators the loans contained in the entities and to increase their capital reserves in proportion as a cushion against potential losses.

It was the lack of disclosure and absence of capital supporting ballooning subprime mortgage loans in these special entities that aggravated the massive losses sustained by banks, regulators say.

The change could result in about $900 billion in assets being brought onto the balance sheets of the 19 largest U.S. banks, according to federal regulators.

Energy prices go up in a show of confidence

SIOUX FALLS, S.D. — Energy prices resumed their climb into summer driving season Monday, a show of confidence that Americans will overlook dismal economic news as they head out on their Memorial Day weekend trips.

Benchmark crude for June delivery jumped $2.69 to settle at $59.03 a barrel on the New York Mercantile Exchange after dropping $2.28 Friday to $56.34.

With the June Nymex contract expiring today, the market was also keeping close tabs on the July contract, which rose $2.59 to settle at $59.59.

Retail gas prices have followed along just before the extended holiday weekend.

On Monday, retail gas prices hit $2.31, according to the U.S. Energy Information Administration.

That's another high for the year.

Indian stock market surges after election

MUMBAI, India — India's stock market surged an unprecedented 17 percent, forcing trading to close for the day, after the Congress Party's definitive victory in national elections set the scene for long-delayed economic reforms.

In just seconds of trading, the Bombay Stock Exchange's benchmark Sensex vaulted 2,110.79 points, or 17.3 percent, to 14,284.21, triggering the historic shutdown Monday.

The rupee rose more than 3 percent Monday, to close at 47.88 rupees per dollar in India trade.