Security Federal Savings Bank

What Security Federal Savings Bank does

Security Federal Savings Bank is a community savings bank headquartered in McMinnville, Tennessee, founded in 1960 and operating as a subsidiary of Security Bancorp, Inc., which trades on OTCMarkets under the ticker SFCB. The bank serves retail consumers, small businesses, and agricultural borrowers across Warren County and seven surrounding counties in middle Tennessee, operating through multiple branches with a workforce of more than 50 employees. As of Q1 2026, it held over $300M in assets and $331.1M in deposits, with a developed specialization in agricultural and nursery lending serving 300+ regional operators.

The bank generates revenue primarily through net interest income on its loan portfolio and deposit base, supplemented by deposit account fees and financial services revenue. In Q1 2026, net interest income reached $3.6M (up 26.4% YoY) and net income reached $1.4M (up 40% YoY), indicating a meaningfully repriced or expanded earning-asset book. The bank has expanded its distribution beyond core deposits and lending through a partnership with Osaic Institutions, enabling the bank to offer third-party financial services products without building proprietary product infrastructure. Delivery channels consist of branch banking, mobile banking, online banking, and telephone banking — standard functionality consistent with community-bank operating norms.

The bank's competitive position rests on regulatory charter, branch density in rural middle Tennessee, and a multi-decade community presence that supports deposit gathering. It re-chartered as a Tennessee state savings bank in 2009 and had previously converted from a mutual to stock form in 1995. There is no evidence of proprietary technology development, AI/ML deployment, or product-led differentiation beyond its agricultural lending focus. The operating model is best characterized as a relationship-driven community bank with a vertical specialization in the nursery and agriculture sector, growing through balance sheet expansion and partnership-led product breadth rather than through technology differentiation or M&A.

Name

Security Federal Savings Bank

Legal name

Security Federal Savings Bank

Website

https://secfed.net

Company type

Private

Founded year

1960

Operating status

Operating

Headcount range

11–50 employees

Short description

Security Federal Savings Bank is a Tennessee-chartered community savings bank in McMinnville, founded in 1960, serving retail, small-business, and agricultural/nursery borrowers across Warren County and seven surrounding middle-Tennessee counties. It operates as a subsidiary of Security Bancorp, Inc. (OTCMarkets: SFCB) with $300M+ in assets.

Ownership category

akta.pro rank

Product category

Community Banking

NAICS

Savings Institutions and Other Depository Credit Intermediation (522180), Savings Institutions and Other Depository Credit Intermediation (52218)

SIC

Savings Institutions, Not Federally Chartered (6036)

akta.pro primary industry

Savings Banks (Public/State-Owned) (FSABAKAK)

akta.pro secondary industries

Mass-Market Consumer Deposit Banking (Checking/Savings) (FSABAAAA), SME Deposits & Business Accounts (Operating, Savings, CDs) (FSABABAC)

Keywords

• Community banking services
• Consumer lending products
• Commercial banking services
• Agricultural installment loans
• Mortgage lending services

Headquarters

HQ city

Mcminnville

HQ country

United States

HQ region

North America

Offices3 records

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Personnel, Operations, Infrastructure, Technology or R&D, Marketing or Sales, Others

Revenue model

1. Net Interest Income: Primary revenue source from the spread between interest earned on loans (mortgages, commercial loans, consumer loans, agricultural loans) and interest paid on deposits (checking, savings, CDs, IRAs). Q1 2026 net interest income of $3.6 million, up 26.4% year-over-year.
2. Deposit Account Fees and Service Charges: Monthly service charges, overdraft fees, and other account-related fees from personal and business checking and savings accounts.
3. Financial Services and Investment Products: Investment management and financial planning services offered through Security Federal Financial Services partnership with Osaic Institutions, Inc., offering securities, insurance, and advisory services.

Pricing tiers

Go-to-market motion1 record

Distribution channels5 records

Marketing channels5 records

Core offering

Security Federal Savings Bank is a Tennessee state-chartered community savings bank that provides personal deposit accounts (Simply Checking, Senior Checking, Interest Checking, Regular Savings, Christmas Club Savings, HSAs, CDs, and IRAs) and consumer/mortgage loans to retail customers. It also serves businesses with commercial checking, business savings, commercial loans, real estate lending, construction loans, and specialized agricultural installment loans tailored to Warren County's horticulture and nursery industry. Investment and financial planning services are offered through a subsidiary division, Security Federal Financial Services, in partnership with Osaic Institutions, Inc.

Product overview

Security Federal Savings Bank is a community bank headquartered in McMinnville, Tennessee, offering a comprehensive suite of traditional banking products and digital services. The bank's core offerings include personal checking accounts (Simply Checking, Senior Checking, Interest Checking), savings accounts (Regular Savings, Christmas Club Savings, Health Savings Accounts), and CDs/IRAs with various term options. Lending products span consumer loans, mortgage loans, commercial loans, and agricultural installment loans. The bank also provides business banking services including Simply Business Checking, Commercial Interest Checking, and Business Savings. Digital banking capabilities encompass online banking, mobile banking (iOS and Android), and telephone banking. A sub-brand, Security Federal Financial Services, offers investment and financial planning through Osaic Institutions. Additional services include debit/ATM cards (Mastercard), travel notes, and a comprehensive suite of financial calculators.

Differentiator

Problem solved

Functional benefit

Brands

• Security Federal Financial Services: Investment and financial planning services offered through Osaic Institutions, Inc., Member FINRA/SIPC. A trade name of Security Federal Savings Bank.

Products and services

• Simply Checking Basic personal checking account with free direct deposit, online banking, bill pay, e-statements, mobile banking, telephone banking, and debit card. $5 monthly fee waived with $100 daily balance or monthly ACH deposit. Targets everyday retail consumers.
• Senior Checking Checking account for customers 60 or older, with no monthly service charge, free personalized checks, unlimited check writing, and free debit card. Targets retirees and senior consumers.
• Interest Checking Interest-bearing personal checking account with unlimited check writing and free debit card. $10 monthly fee waived with $1,000 minimum daily balance. Targets consumers seeking yield on checking balances.
• Regular Savings Basic personal savings account with unlimited ATM withdrawals, interest posted quarterly, and no issuance charge for ATM card. $5 monthly service charge applies if daily balance falls below $100.
• Christmas Club Savings Savings account for holiday or occasion-based saving with $10 opening deposit, $5 per withdrawal, and annual check or auto-transfer in October.
• Health Savings Accounts Tax-advantaged savings account for high-deductible health plan participants with debit card access, no service charge, no minimum balance, and monthly interest posting. Subject to credit approval.
• Certificates of Deposit Certificate of Deposit with fixed rates for terms ranging from 6 months to 5 years, $1,000 minimum opening deposit, with early withdrawal penalties. Targets retail savers seeking fixed yields.
• IRA Accounts Retirement accounts offering Traditional, Roth, SEP, and SIMPLE IRA plans with tax-advantaged savings. Targets individuals and small-business retirement savers.
• Consumer Loans Personal loans including automobile and boat loans (new and used purchases or refinances), home loans (purchase, refinance, construction), and home equity lines of credit. Targets retail borrowers.
• Mortgage Loans Full-service mortgage department offering mortgage prequalification, new home purchases, refinances, and construction loans for residential properties. Targets home buyers and refinancers.
• Simply Business Checking Business checking account with $100 opening deposit, free ATM/debit card, e-statements, and $5 monthly fee waived with one ACH deposit per month. Targets small businesses.
• Commercial Interest Checking Interest-bearing commercial checking account with unlimited check writing, free online banking, bill pay, e-statements, mobile banking, telephone banking, debit card, and notary service. Targets businesses seeking yield on operating cash.
• Business Savings Business savings account with $100 opening deposit and six free withdrawals per month. Targets small to mid-sized businesses.
• Commercial Loans Commercial lending solutions including business installment loans for short-term financing, commercial lines of credit for cash flow management, and real estate lending for property purchases or construction. Targets small to mid-sized businesses.
• Agricultural Installment Loans Farm and nursery banking loans for agricultural businesses including farm loans and deposit services tailored for horticulture and nursery operations. Targets farm and nursery operators in Warren County and the surrounding region.
• Debit/ATM Cards Free Mastercard debit card accepted globally for purchases, ATM withdrawals, and online transactions with EMV chip protection and mobile app card management features. Targets checking account holders.
• Online Banking Digital banking platform providing account balance viewing, transaction history, check image viewing, statement access, e-enrollment, and bill payment capabilities via the my.secfed.net web portal.
• Mobile Banking Mobile banking application for iOS and Android providing 24/7 account access including balance checks, transaction history, payments, alerts, fund transfers, debit card management, and travel notes.
• Telephone Banking Automated phone banking service providing account balance, history, fund transfers, payments, card services, access code changes, email account info, future-dated transactions, and bank information via voice recognition.
• Security Federal Financial Services Investment and financial planning services offered through Osaic Institutions, Inc., Member FINRA/SIPC, including retirement planning, investment management, and charitable giving strategies with certified advisors Steve Keck and Wendy Kell.

Quantifiable outcome

• Q1 2026 net income of $1.4 million, up 40% year-over-year
• +3 more outcomes

Named customers2 records

Segments4 records

Ideal customer profiles4 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration2 records

Feature3 records

Partnerships

One partnership is on record.

• Osaic Institutions, Inc.coreGTM or Marketing PartnerSecurities and investment advisory services partnership through Security Federal Financial Services. Osaic Institutions, Inc. (Member FINRA/SIPC) provides the platform for investment and insurance products offered to Security Federal customers. The bank offers investment management, financial planning, and insurance products through licensed advisors Steve Keck and Wendy Kell under this partnership.

Scale indicators8 records

Recent moves7 records

Expansion highlights4 records

Broad incumbents

• Pinnacle Financial Partners: One of the largest Tennessee-headquartered banks with full personal, business, mortgage, wealth, and capital markets offerings. Larger-scale incumbent competing for the same Tennessee customers with broader product depth.
• Franklin Synergy Bank: Tennessee-based community bank serving Nashville-area and broader state markets with similar personal and business banking products. Larger in scale and operates across a wider geographic footprint.

Regional players

• Atlantic Capital Bancshares: Community-focused bank serving the Southeast US with similar small-business and consumer banking services. Comparable operating model though primarily active in adjacent Southeast markets rather than rural Tennessee.

Direct peers

• CB&S Bank: Community bank operating across Tennessee and neighboring states with traditional deposit, lending, and ag-banking products. Comparable in size range and rural community banking approach.
• FirstBank (Tennessee): One of Tennessee's largest community banks with extensive branch network across the state. Offers the same core personal/business banking, mortgage, and wealth services as Security Federal and competes directly for the same customer base.
• Wilson Bank & Trust: Tennessee state-chartered community bank headquartered in Lebanon, TN with similar product mix (checking, savings, mortgage, business loans). Comparable in scale, charter type, and community-bank operating model.
• Peoples Bank (Tennessee): Tennessee community bank serving similar rural and small-metro markets with personal, business, and mortgage products. Direct competitor for the same retail and small-business customer segments.
• First National Bank of Tennessee: Tennessee-headquartered community bank offering personal, business, and mortgage banking across similar rural Tennessee markets. Direct competitor for deposits, loans, and ag-banking relationships in the bank's footprint.
• Citizens Bank of Tennessee: Tennessee community bank offering personal and business banking with focus on local relationship-based service. Directly comparable in size, geographic focus, and product offerings.

Others

• Osaic Institutions, Inc. Wealth management and insurance platform partner that provides the investment and advisory services offered through Security Federal Financial Services. Not a direct competitor but a strategic partner and ecosystem participant.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat5 records

Key risks5 records

Key highlights7 records

Customer concentration

• Facebookfacebook.com/secfederal

Revenue estimate

Valuation estimate

Number of profiles

Profiles12 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Security Federal Savings Bank