Security Federal Corporation (SFDL) Stock Analysis
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Security Federal Corporation (SFDL) trades at $42.70 with AI Score 53/100 (Grade B). Security Federal Corporation operates as a bank holding company for Security Federal Bank, offering a comprehensive suite of financial products including… Market cap: $132M, Sector: Financial services.
Price as of Aug 20, 2026 · Last analyzed: Jun 14, 2026Analyst Coverage for SFDL: SFDL does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates SFDL against Financial Services peers across nine fundamental dimensions and assigns a mixed fundamental profile based on the underlying data.
SFDL: the 3 scored disciplines are evenly split. Dominant signal: Izzy Englander bullish.
How is this calculated? →Why this analysis is different
- A 9-signal quantitative MoonshotScore built from filings, insider activity, and market data — computed from the numbers, not from opinion.
- An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
- Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.
Security Federal Corporation (SFDL) Financial Services Profile
Security Federal Corporation operates as a regional bank holding company, providing comprehensive banking, lending, trust, financial planning, and insurance services through 17 branches in South Carolina and Georgia. Founded in 1922, it focuses on community-based financial solutions for individuals and businesses, maintaining a localized market position.
What Is the Investment Thesis for SFDL?
Security Federal Corporation (SFDL) presents a profile rooted in community banking with diversified revenue streams across its South Carolina and Georgia markets. The company's financial metrics, including a P/E ratio of 8.27, a robust Profit Margin of 15.7%, and a Gross Margin of 66.9%, indicate operational efficiency and profitability within its sector. A dividend yield of 2.13% offers income to shareholders, characteristic of established financial institutions. Key value drivers include its comprehensive suite of services—spanning traditional banking, lending, trust, and insurance—which fosters cross-selling opportunities and customer loyalty within its localized footprint. Growth catalysts are primarily tied to economic expansion in its operating regions, driving demand for commercial real estate, business, and residential loans, alongside increased utilization of its financial planning and insurance services. The company's long-standing presence since 1922 provides a foundation of trust and brand recognition. However, investors must consider the inherent risks associated with its OTC Other tier listing, which implies potentially limited liquidity and regulatory oversight. Its regional concentration also exposes it to localized economic fluctuations, necessitating close monitoring of credit quality and market conditions.
Based on FMP financials and quantitative analysis
SFDL Key Highlights
Market Capitalization: $0.11 billion, indicating its status as a smaller-cap regional financial institution.
- P/E Ratio: 8.27, suggesting a valuation relative to earnings within the financial services sector.
- Profit Margin: 15.7%, reflecting the company's efficiency in converting revenue into net income.
- Gross Margin: 66.9%, demonstrating strong profitability on its core banking and financial service offerings.
- Dividend Yield: 2.13%, providing income to shareholders, typical for established financial institutions.
Who Are SFDL's Competitors?
SFDL is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| HWBK Hawthorn Bancshares, Inc. | $39.44 | +0.19% | $272M | 92 |
| FRAF Franklin Financial Services Corporation | $62.10 | +0.40% | $279M | 92 |
| FUNC First United Corporation | $43.35 | -0.55% | $280M | 92 |
| ATLO Ames National Corporation | $31.73 | +1.44% | $281M | 92 |
| FDBC Fidelity D & D Bancorp, Inc. | $54.33 | +0.15% | $315M | 91 |
| NWFL Norwood Financial Corp. | $33.60 | -2.24% | $366M | 92 |
| FNLC The First Bancorp, Inc. | $34.53 | -3.01% | $389M | 91 |
| PKBK Parke Bancorp, Inc. | $34.15 | +0.83% | $404M | 92 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are SFDL's Key Strengths?
Diversified financial services portfolio, including banking, lending, trust, and insurance offerings.
- Established community presence with 17 branches across South Carolina and Georgia since 1922.
- Strong profitability metrics, with a Gross Margin of 66.9% and a Profit Margin of 15.7%.
- Localized focus fostering strong customer relationships and community engagement.
What Are SFDL's Weaknesses?
Trades on the OTC Other tier, implying increased risk due to potentially limited liquidity and transparency.
- Smaller market capitalization ($0.11B) compared to larger regional or national banking institutions.
- Geographic concentration in South Carolina and Georgia, exposing it to regional economic fluctuations.
- Unknown disclosure status on the OTC market, potentially limiting investor access to timely financial information.
What Could Drive SFDL Stock Higher?
SFDL catalyst: Regional economic growth in South Carolina and Georgia, potentially increasing demand for commercial, residential, and consumer loans across its 17 branch locations.
- Continued expansion and utilization of its diversified financial services, including trust, financial planning, and insurance offerings, driving non-interest income growth.
- Strategic management of its investment portfolio to optimize returns in varying interest rate environments, enhancing overall net interest income.
- Strengthening of community relationships and localized service models, potentially attracting new deposit accounts and loan customers in its established markets.
What Are the Key Risks for SFDL?
Financial-distress signal — its Altman Z-Score of 0.15 sits in the distress zone (elevated bankruptcy risk).
- Limited liquidity and regulatory oversight due to trading on the OTC Other tier, which can impact share price stability and investor confidence.
- Sensitivity to interest rate fluctuations, which could compress net interest margins if the cost of deposits rises faster than loan yields.
- Regional economic downturns in South Carolina and Georgia, potentially leading to increased loan defaults and reduced demand for banking services.
- Intense competition from larger regional banks, national financial institutions, and emerging fintech companies for deposits and loan customers.
- Credit risk associated with its diverse loan portfolio, particularly commercial real estate and construction loans, which can be susceptible to market cycles.
What Are the Growth Opportunities for SFDL?
- Expansion of Commercial Lending Portfolio: Security Federal Corporation has an opportunity to grow its commercial real estate and commercial business loan portfolios by actively engaging with local businesses and developers in its South Carolina and Georgia markets. As regional economies expand, demand for commercial financing for new projects, expansions, and operational capital is expected to increase. By leveraging its community ties and understanding of local market dynamics, SFDL can capture a larger share of this market, potentially increasing its interest income and overall profitability over the next 3-5 years. The market for commercial lending remains robust in growing Southern states.
- Diversification and Deepening of Financial Services: The company's existing trust, financial planning, and financial management services represent a significant growth avenue. By enhancing marketing efforts and integrating these offerings more closely with its traditional banking services, SFDL can attract affluent clients and businesses seeking comprehensive wealth management solutions. This strategy not only generates fee-based income, which is less sensitive to interest rate fluctuations, but also strengthens client relationships and increases customer lifetime value. This growth could materialize steadily over the next 2-4 years as clients seek integrated financial solutions.
- Growth of Insurance Agency Operations: Security Federal Corporation's insurance agency, offering auto, business, life, health, and home insurance products, along with insurance premium financing, provides a distinct competitive advantage. There is an opportunity to cross-sell these insurance products to existing banking and lending customers, leveraging established relationships. Expanding the reach and product offerings of the insurance agency can create a more diversified revenue stream, reducing reliance on interest income. The regional insurance market offers consistent demand, and focused expansion efforts could yield significant returns over the next 3-5 years.
- Geographic Market Penetration: With 17 full-service branch offices across specific cities in South Carolina and Georgia, SFDL has an opportunity to deepen its market penetration within these existing regions. This involves increasing brand awareness, attracting new customers through targeted local marketing campaigns, and optimizing branch performance. By focusing on underserved segments or expanding service hours, the company can capture a larger share of deposits and loan demand in its established communities. This organic growth strategy can yield steady returns over the next 2-5 years by maximizing the potential of its current footprint.
- Optimized Investment Portfolio Management: The company's investment in various liquid assets, including U.S. Treasury obligations, federal agency securities, and corporate debt, presents an ongoing opportunity for strategic management. By actively monitoring market conditions, interest rate forecasts, and credit quality, SFDL can optimize the allocation and duration of its investment portfolio. This proactive approach can enhance net interest income and overall asset yield, contributing to profitability. Effective management of this portfolio is a continuous process, with potential for incremental gains year-over-year depending on market volatility and interest rate movements.
What Are SFDL's Competitive Advantages?
- Strong local community relationships fostered by its extensive regional branch network across South Carolina and Georgia, enhancing customer loyalty.
- Diversified service offerings, including banking, lending, trust, and insurance, creating comprehensive financial solutions and cross-selling opportunities.
- Established presence since 1922, building significant trust and brand recognition within its specific operating markets.
- Localized decision-making and personalized customer service, potentially offering more tailored and responsive solutions compared to larger, more bureaucratic national banks.
What Does SFDL Do?
Security Federal Corporation, established in 1922 and headquartered in Aiken, South Carolina, functions as the bank holding company for Security Federal Bank. The institution has evolved into a diversified financial services provider, serving both individual and business clients across its operational footprint. As of February 8, 2021, the company maintained a network of 17 full-service branch offices strategically located in various cities across South Carolina, including Aiken, Columbia, Lexington, and North Augusta, as well as in Augusta and Evans, Georgia. The core business revolves around accepting a wide array of deposit products, encompassing savings accounts, checking accounts, various money market accounts, fixed interest rate certificates, negotiated rate jumbo certificates of deposit, and individual retirement accounts, providing essential liquidity and funding for its operations. Beyond deposits, Security Federal Corporation is a significant originator of loans. Its lending portfolio is diverse, including commercial real estate loans, commercial business loans, and consumer loans. The company also specializes in mortgage loans for the acquisition or refinancing of one-to-four family residential real estate, alongside construction loans for single-family residences, multi-family dwellings and projects, and commercial real estate. Furthermore, it provides financing for the acquisition, development, and construction of residential subdivisions and commercial projects. In addition to traditional banking, Security Federal Corporation extends its offerings to include trust, financial planning, and financial management services, catering to broader wealth management needs. The company also operates an insurance agency, providing a range of products such as auto, business, life, health, and home insurance, complemented by insurance premium financing services. To manage its balance sheet and liquidity, the corporation invests in various types of liquid assets, including U.S. Treasury obligations, securities of federal agencies, certificates of deposit at insured institutions, mutual funds, bankers' acceptances, federal funds, commercial paper, and corporate debt securities, employing 258 employees to manage these comprehensive operations.
What Products and Services Does SFDL Offer?
- Accept various deposit accounts, including savings, checking, money market, fixed-rate certificates, and IRAs.
- Originate commercial real estate loans, commercial business loans, and consumer loans.
- Provide mortgage loans for residential properties and construction loans for single-family, multi-family, and commercial projects.
- Offer specialized loans for the acquisition, development, and construction of residential subdivisions and commercial projects.
- Furnish trust, financial planning, and financial management services to individuals and businesses.
- Operate an insurance agency providing auto, business, life, health, and home insurance products.
- Engage in insurance premium financing services for its clients.
- Invest in diverse liquid assets such as U.S. Treasury obligations, federal agency securities, and corporate debt.
- Operate 17 full-service branch offices across South Carolina and Georgia.
How Does SFDL Make Money?
- Generate interest income from a diverse loan portfolio, including commercial, residential, construction, and consumer loans.
- Earn interest from strategic investments in liquid assets such as U.S. Treasury obligations, federal agency securities, and corporate debt.
- Collect fees from various banking services, including deposit accounts, trust, financial planning, and financial management offerings.
- Derive revenue from insurance agency operations, offering a range of insurance products and premium financing services.
- Utilize customer deposits as a primary, cost-effective funding source for its lending activities, managing its net interest margin.
What Industry Does SFDL Operate In?
Security Federal Corporation operates within the highly competitive regional banking industry, primarily serving communities in South Carolina and Georgia. This sector is characterized by a strong emphasis on local relationships and personalized customer service, differentiating it from larger national banks. Regional banks like SFDL face ongoing market trends including evolving customer expectations for digital services, fluctuating interest rate environments, and increasing regulatory scrutiny. The competitive landscape includes other community banks, credit unions, and the encroaching presence of larger financial institutions and fintech companies. SFDL's strategy of maintaining 17 full-service branch offices as of early 2021, coupled with a diversified product offering that includes banking, lending, trust, and insurance services, positions it as a comprehensive local financial partner. Its long operational history since 1922 further solidifies its standing within its specific geographic markets.
Who Are SFDL's Key Customers?
- Individuals seeking deposit accounts (savings, checking, IRAs) and consumer loans.
- Homebuyers and homeowners requiring mortgage loans and residential construction financing.
- Businesses seeking commercial real estate loans, business loans, and financing for development projects.
- Clients requiring trust, financial planning, and financial management services.
- Individuals and businesses in need of auto, business, life, health, and home insurance products.
Security Federal Corporation Financial Trajectory
Security Federal Corporation (SFDL) reported $22.1M in revenue for Q2 2026, reflecting 1.8% growth compared to the prior quarter. The company recorded net income of $4.1M, with diluted EPS of $1.19. Quarter-over-quarter revenue has been mixed, typical for a micro-cap company operating in Financial Services. Across the four most recent quarters, SFDL averaged $1.11 in diluted EPS.
Company Profile
Security Federal Corporation operates in the Banks - Regional industry within the Financial Services sector. It is headquartered in Aiken, US. The company is led by CEO Philip R. Wahl. SFDL has traded publicly since 2003.
How Security Federal Corporation Is Valued
Security Federal Corporation carries a market capitalization of $132M, placing it in the micro-cap category. Relative to its peer group, SFDL's quantitative score of 53/100 is below the peer average of 92/100.
Key Financial Metrics
Return on equity for Security Federal Corporation stands at 7.7%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.0%, showing how much profit it generates from its asset base. SFDL trades at a trailing price-to-earnings ratio of 8.41, below the Financial Services sector average of ~18x. Its free cash flow yield is -1.1%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.00 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 11.9%, the inverse of the P/E and a quick read on earnings relative to price.
Financial Health
Security Federal Corporation's Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 0.15 places it in the distress zone, a signal of elevated financial risk.
SFDL Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Recent insider buying suggests those in the know see value, a positive sign for the stock's prospects.
- Community sentiment leans bullish, with many seeing long-term potential in SFDL's business model.
- The market seems to be rewarding stable, traditional banking stocks, and SFDL fits that profile. Think of it like the flight to safety we saw during the early days of the pandemic, but for value stocks.
- Positive chatter in social trading communities highlights SFDL's consistent performance and dividend payouts, attracting income-focused investors.
Bear Case
- Lack of significant news or catalysts could lead to stagnation; the stock may simply trade sideways.
- Some community members express concern over SFDL's limited growth opportunities compared to more innovative fintech companies.
- The overall market perception of regional banks is cautious, given interest rate uncertainty and potential economic slowdown. It's a bit like the skepticism surrounding brick-and-mortar retail during the e-commerce boom.
- Recent insider selling (if any) might signal a lack of confidence in the company's short-term prospects, or simply personal portfolio adjustments.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $22M | $4M | $1.19 |
| Q1 2026 | $22M | $4M | $1.00 |
| Q4 2025 | $25M | $4M | $1.24 |
| Q3 2025 | $22M | $4M | $1.01 |
Based on FMP financials and quantitative analysis
SFDL Latest News
No recent news available for SFDL.
SFDL Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for SFDL.
Price Targets
Wall Street price target analysis for SFDL.
SFDL MoonshotScore
What does this score mean?
The MoonshotScore rates SFDL 0-100 on quantitative fundamentals — growth, financial health, valuation, momentum, and risk.
Leadership: J. Chris Verenes
Chief Executive Officer
The provided source data does not contain specific details regarding J. Chris Verenes's career history, educational background, or previous roles prior to his current position at Security Federal Corporation. Therefore, a detailed background profile cannot be compiled from the available information.
Track Record: Specific information detailing J. Chris Verenes's key achievements, strategic decisions, or significant company milestones under his leadership at Security Federal Corporation is not available in the provided source data. Consequently, a comprehensive track record cannot be outlined.
SFDL OTC Market Information
Security Federal Corporation trades on the OTC Other tier, which is the lowest and most speculative tier of the OTC Markets. Companies on this tier generally do not meet the financial or disclosure standards required for the higher OTCQX or OTCQB tiers, nor do they meet the listing requirements of major exchanges like the NYSE or NASDAQ. This tier is characterized by significantly less stringent reporting requirements and regulatory oversight, leading to potentially higher investment risk and reduced transparency compared to exchange-listed securities.
- OTC Tier: OTC Other
- Limited liquidity and trading volume, making it difficult to buy or sell shares at desired prices.
- Less stringent regulatory oversight and reporting requirements compared to major exchanges.
- Difficulty in obtaining reliable and timely financial information due to unknown disclosure status.
- Increased price volatility and wider bid-ask spreads, impacting investment returns.
- Potential for price manipulation due to lower transparency and smaller market capitalization.
- Review all available financial reports and regulatory filings, even if limited, to assess financial health.
- Thoroughly examine the company's business operations, revenue streams, and market position.
- Assess the management team's experience, track record, and corporate governance practices.
- Investigate any news, press releases, or third-party analyses related to the company.
- Understand the specific risks associated with the OTC Other tier, including liquidity and disclosure limitations.
- Evaluate the company's competitive landscape and its ability to maintain market share in its regions.
- Consider the company's long-term strategy and any potential plans for uplisting to a higher trading tier or exchange.
- Founded in 1922, indicating a long operational history and established presence.
- Operates 17 full-service branch offices across South Carolina and Georgia.
- Provides a diversified range of traditional banking, lending, trust, and insurance services.
- Has a known CEO, J. Chris Verenes, overseeing 258 employees.
Security Federal Corporation Financial Services Stock: Key Questions Answered
What does the AI Score mean for SFDL?
SFDL holds an AI Score of 53/100 (Grade: B). This is an educational research signal, not a buy or sell recommendation. Security Federal Corporation operates as a bank holding company for Security Federal Bank, offering a comprehensive suite of financial products including deposits, various loans, trust services …
What does Security Federal Corporation do?
Security Federal Corporation operates as the bank holding company for Security Federal Bank, providing a comprehensive range of financial products and services. The company accepts various deposit products, including savings, checking, money market, and certificates of deposit, which serve as a primary funding source.
How sensitive is SFDL to interest rate changes?
Security Federal Corporation, as a regional bank, is inherently sensitive to changes in interest rates, which directly impact its net interest margin (NIM). A rising interest rate environment can benefit the company if its loan yields increase faster than its cost of deposits, expanding NIM.
What are the main risks for SFDL?
The primary risks for Security Federal Corporation stem from its operational environment and market position. A significant risk is its trading status on the OTC Other tier, which implies limited liquidity, less stringent regulatory oversight, and potential difficulty in obtaining timely financial disclosures, increasing investment uncertainty.
What are the key factors to evaluate for SFDL?
Security Federal Corporation (SFDL) holds an AI score of 53/100 (moderate). Security Federal Corporation (SFDL) presents a profile rooted in community banking with diversified revenue streams across its South Carolina and Georgia markets. Not financial advice.
How frequently does SFDL data refresh on this page?
SFDL's price was last updated on Aug 20, 2026 and refreshes on page view during U.S. market hours — it is not a real-time exchange feed. Fundamentals update after quarterly filings; the MoonshotScore recalculates nightly; news aggregates continuously.
What has driven SFDL's recent stock price performance?
Security Federal Corporation (SFDL) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Diversified financial services portfolio, including banking, lending, trust, and insurance offerings. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider SFDL overvalued or undervalued right now?
Security Federal Corporation (SFDL) has no trailing P/E available here, so lean on price-to-sales and cash flow in the Financials tab. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
How do I research SFDL before investing?
Before investing in Security Federal Corporation (SFDL), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) analyst consensus ratings and price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Information for CEO background, track record, and specific competitor details was not provided in the source data and is marked as 'Unknown' or omitted where appropriate.
- No FMP PEER TICKERS were provided, so the 'competitors' array is empty as per content rules.
- Disclosure status for OTC market is explicitly stated as 'Unknown' in the source data.