Biz bits

Security Federal Corp. reports lower earnings

Aiken-based Security Federal Corp., the holding company for Security Federal Bank, reported lower quarterly earnings because of higher expenses based on a higher FDIC assessment, an allowance for loan losses and a loss incurred on the sale of the south Augusta office of Security Federal Insurance.

The company reported net income of $129,000, or 5 cents per share, for the three months that ended June 30, down sharply from $802,000, or 32 cents per share, in the second quarter of 2008.

Total assets as of June 30 were $975.6 million, down from $984.7 million at the end of March. Total deposits, however, increased from the first to the second quarter: to $665.35 million from $661.71 million.

Judge delays ruling in Bank of America case

NEW YORK — A federal judge says he needs more time and additional details before making a decision on a $33 million settlement between Bank of America and the Securities and Exchange Commission over executive bonuses.

In a hearing in New York on Monday, U.S. District Judge Jed Rakoff said he is "concerned that we have not yet ferreted out all that the court needs to know."

Charlotte, N.C.-based Bank of America had agreed to pay the fines to settle charges that it misled investors about Merrill Lynch's plans to pay executives $5.8 billion in bonuses.

Judge Rakoff has requested the names of those involved in bonus discussions and information on the timing of those talks.

Both the SEC and Bank of America will submit additional paperwork in the next two weeks. The judge could then rule or order additional hearings.

Same-store sales rose for McDonald's in July

NEW YORK — McDonald's Corp. said Monday its same-store sales climbed 4.3 percent in July, as the nation's biggest hamburger chain benefited from budget-conscious consumers and wide promotion of new coffee drinks.

The Oak Brook, Ill., company said U.S. same-store sales climbed 2.6 percent because of new products, including McCafe espresso-based coffee.

European same-store sales surged 7.2 percent, helped by growth in France and the United Kingdom. Same-store sales for Asia Pacific, the Middle East and Africa rose 2.1 percent, as strength in Australia helped offset weakness in China. Longer operating hours also aided sales.

Same-store sales, or sales at restaurants open at least 13 months, are a key indicator of performance because they measure growth at existing businesses rather than new ones.

Total sales fell 0.3 percent because of currency translation.

Nortel CEO resigns as liquidation continues

TORONTO — Nortel Networks CEO Mike Zafirovski is stepping down from the troubled telecommunications company, saying "a natural transition point" has been reached as the company continues to liquidate.

The company also announced Monday that its board of directors will be reduced to three from nine, and that its second-quarter losses more than doubled, partly because of reorganization costs.

Mr. Zafirovski, a protégé of former General Electric Co. head Jack Welch, was named CEO in 2005 after serving as an executive at Motorola Inc. and GE.

He tried to transform Nortel but said the economic crisis changed the outlook dramatically, forcing Nortel to became the first major technology company to seek bankruptcy protection in this global downturn. Mr. Zafirovski presided over a disheartening series of work force cuts and restructurings.