Security Federal Corp. reported lower quarterly net income.
The Aiken-based holding company for Security Federal Bank reported net income of $339,000 for the three months that ended Sept. 30, or 14 cents per share, compared to $785,000, or 31 cents per share, in the quarter in 2008.
Net income was affected by managements decision to increase the allowance for loan losses through an additional $1.6 million charge to the provision, according to Roy Lindburg, Security Federals chief financial officer.
Mr. Lindburg reported the bank management continues to have a concern over the local and national economy, coupled with an increase in non-performing assets. Those assets, which include foreclosure homes, was $39.5 million in September, up from $14.9 million in March.
The company also spent $425,000 in additional FDIC insurance premiums as a result of a one-time special assessment enacted by the FDIC to help replenish the governments deposit insurance fund.
Total assets at the end of September were $981.9 million, a decrease from assets of $984.7 million at the end of March, which is the beginning of its fiscal year.
Total deposits, however, continue to be higher compared to the beginning of the fiscal year, $662.4 million compared to $661.7 million.
Security Federal Bank has 12 branch locations in Aiken, Lexington and Richland counties in South Carolina and one in Columbia County in Georgia.