Federal security company plans to participate in new US Treasury program designed to help underserved communities
AIKEN, SC, April 22, 2022 (GLOBE NEWSWIRE) — In early March 2021, the United States Department of Treasury announced that it would invest $9 billion in community development financial institutions (CDFIs) and community development institutions. Minority Deposit (MDI) through the Emergency Fund Investment Program (ECIP). ECIP will provide up to $9 billion in capital directly to custodian CDFIs and MDIs to support the provision of loans, grants and forbearance to small and minority businesses and consumers in low-income and underprivileged communities. served.
As a qualified CDFI bank serving the communities of South Carolina and Georgia, Security Federal Corporation has applied for an allocation of ECIP funds. On December 14, 2021, Security Federal was added to the Treasury’s list of 186 financial institutions approved to receive ECIP investments.
On April 21, 2022, the Board of Directors of Security Federal Corporation (the “Company”), the holding company of Security Federal Bank (the “Bank”) voted in favor of an investment by the United States Department of Treasury (“Treasury”) under the Emergency Investment Program (“ECIP”). The Treasury has informed the Company that it is eligible to receive an ECIP investment of up to $82,949,000 under the form of Tier 1 non-dilutive perpetual privileged capital.
In connection with the ECIP Treasury investment, the Company would be required to fulfill certain conditions established by the Treasury and would be subject to certain restrictions.
Security Federal Bank has eighteen full-service branches in Aiken, Ballentine, Clearwater, Columbia, Graniteville, Langley, Lexington, North Augusta, Ridge Spring, Wagener and West Columbia, South Carolina and Evans and Augusta, Georgia. A full range of financial services, including trust and investments, are provided by the Bank, and insurance services are provided by the Bank’s wholly-owned subsidiary, Security Federal Insurance, Inc.
Common stock of Security Federal Corporation is traded on the over-the-counter bulletin board under the symbol SFDL.
Caution Regarding Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements may be identified by reference to one or more future periods, or by the use of forward-looking terminology, such as “estimate”, “project”, “believe”, “intend”, “anticipate”, “plan”, “seek”, “expect” ”, “will”, “may”, “continue”, or similar terms or variations of these terms, or the negative of these terms. Forward-looking statements, by their nature, are subject to risks and uncertainties. Certain factors that could cause actual results to differ materially from expected results include the effect of the COVID-19 pandemic, including on our credit quality and business operations, and its impact on the real estate environment and economic, especially in market areas. in which the Bank operates; increased competitive pressures; changes in the interest rate environment; general economic or securities market conditions; and legislative and regulatory changes affecting financial institutions, including regulatory compliance costs and capital requirements which could adversely affect the business in which the Company and the Bank are engaged; and other factors described in the company’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and other documents filed with the Securities and Exchange Commission which are available on our website at ‘address www.securityfederalbank.com and on the SEC website at www.sec.gov.
CONTACT: For additional information contact Roy Lindburg, President, at (803) 641-3000.