Annual Message to Members May 2019

The Security Federal Building

We held our annual member meeting on May 15, 2019.  Please read on to learn which Directors and Officers were re-elected, to read the Annual Message to Members, and to review our Financial Highlights. 

The List of Directors that were elected for another 3-year term are: 

  • Dr. Dianne Brown
  • Derek Fisher
  • Michael Ivy

Click here to see a full list: Officers of the Bank 2019-2020

Annual Message to Members May 15, 2019 Click here for a PDF version

Our Vision “To disrupt the status quo of community banking providing flexible solutions, to be the mutual bank you want to own” is reflective of Security Federal’s diverse and progressive Board of Directors. This statement projects the Board’s desire to promote innovation, empowerment and growth, while maintaining a mutual form of ownership.

Our strategy to grow the balance sheet profitably was extremely successful this year. Through our passion for community banking and the dedication of a strong Board and Team at Security Federal, overall performance was the best in the Bank’s 85-year history. Total asset growth in 2018-19 was over 10% and net income reached a record high of $1.5 million. Our strategy to grow Trust assets under management was successfully accomplished with a growth rate of 6%. Net income for the Trust Department reached its highest level ever at $119,000. Market rates drove up funding costs resulting in a slight decline in Net Interest Margin, although higher returns on commercial loans overcompensated for the decline allowing for a .06% increase in Return on Assets. The Main Branch in Logansport continues to be the leader in deposit growth, providing funding for stronger commercial loan growth in the Lafayette market. Even with the increased growth in the Bank’s commercial loan portfolio, asset quality ratios continued to improve throughout the year because of stronger internal controls and prudent lending practices. At the end of the fiscal year, capital remained strong with a Tier 1 Capital Ratio of 12.16% meeting the Bank’s target of 10% or greater.

As a mutual bank, we acknowledge our commitment to be community centric and socially focused. Marketing strategies are designed to educate and promote the benefits of our mutual form of ownership. This sense of community prompted the Board of Directors to make a formal commitment to donate 10% of the Bank’s earnings to local non-profit and community enhancement organizations. These funds allow us to help strengthen our economy in a variety of ways. A contribution of $25,000 to the Ivy Tech Kokomo Campus Transformation will help fulfill the needs of area employers for highly skilled employees. Our participation in Discover’s “Community Cares Program” resulted in a $25,000 award donated to Junior Achievement for financial literacy programs. Supporting education allows us to help create better lives, better families and stronger communities.

Flexibility in how we develop and deliver our services doesn’t stop at the customer level. This core value is embraced internally by promoting wellness challenges and options for sustaining a healthy work/life balance. To show our support for continued wellness, Security Federal contributed of $250,000 towards remodeling the Cass County YMCA.

Security Federal was recognized as the “Best Bank” in Cass County for the third consecutive year. We were also recognized by the Indiana Bankers Association with a Five Star Award representing our support of financial education, grassroots efforts, volunteering and supporting member service providers.
Mrs. Patricia Brandstatter retired from the Board of Directors after 21 years of service. The Board Nominating / Corporate Governance Committee is actively seeking a replacement to fill this vacancy. Security Federal has maintained diversity in Board representation and senior management, far longer than many larger financial institutions. This diversity has allowed the Bank to be a leader among other community banks regardless of size. Our commitment to devote resources for developing future leaders of Security Federal is quite unique. We are very purposeful in our efforts to develop existing talent through individual development plans, encouraging continuing education and career coaching to provide succession planning at every level of the organization.

Initiatives to grow Security Federal’s market presence in the region continues. The strength of the economy, continued population growth and potential for new business development prompted the approval of a new full-service location in West Lafayette, IN. This branch, expected to open by November 2019, will be the Bank’s sixth full-service banking facility. In the coming year we will continue to explore opportunities to expand our presence in existing and new markets. The potential to utilize shared services and continued enhancement of mobile services through technology will be ongoing efforts researched by our team members.
On behalf of the Board of Directors of Security Federal and all Team Members, thank you for allowing us to help service your financial needs.

Sincerely,

Annette M. Russell
President and CEO

Financial Highlights 

 03/01/1903/31/18Change
Total Assets$267,196,000$242,178,000$25,018,000
Total Cash & Investments$56,547,000$57,167,000($620,000)
Total Loans$194,274,000$168,726,000$25,549,000
Total Deposits$218,277,000$198,510,000$19,767,000
Loans / Deposits88.00%86.26%1.74%
Net Interest Margin3.89%4.24%(0.35%)
ROAA0.60%0.54%.06%
Trust Department   
Net Income$119,000$104,000$15,000
Assets Under Management$46,897,000$43,838,000$3,059,000
Investment Services   
Net Income($85,000)($97,000)$12,000
Assets Under Management$6,354,000$3,300,000$3,054,000
Full-Time Employees7174