Richard T. Harmon
About Richard T. Harmon
Richard T. Harmon (age 69 as of December 31, 2024) is an independent director of Security Federal Corporation and Security Federal Bank, serving since 2013; his current term runs to 2028 assuming re‑election. He is retired, with a 30+ year banking career spanning mortgage, construction, and commercial lending leadership roles, including President of Security Federal Bank (2014–2019). The Board classifies him as independent under Nasdaq standards. His background emphasizes lending expertise and community involvement (Aiken County Habitat for Humanity).
Past Roles
| Organization | Role | Tenure | Committees/Impact |
|---|---|---|---|
| Security Federal Bank | President | Jun 2014 – Aug 2019 | Led the bank; prior executive tenure provides deep institutional knowledge |
| Security Federal Bank | Chief Lending Officer | 2011 – Jun 2014 | Oversight of lending; core credit risk expertise |
| Security Federal Bank | SVP, Mortgage Lending | 2007 – 2011 | Mortgage production/credit leadership |
| Regions Bank | SVP, Construction Lending | 1998 – 2007 | Real estate and construction lending |
| Palmetto Federal Savings Bank of SC | Various roles (branch ops/lending) | 1985 – 1998 | Retail operations and lending |
External Roles
| Organization | Role | Tenure | Notes |
|---|---|---|---|
| Aiken County Habitat for Humanity | Director | Present | Community nonprofit board service |
Board Governance
- Independence: Classified independent under Nasdaq rules; only Verenes and Lindburg are non‑independent.
- Attendance: In 2024, no director attended fewer than 75% of Board and applicable committee meetings (exception: Clyburn, absences excused). Harmon attended the 2024 annual meeting (all directors attended except Clyburn).
- Tenure: Director since 2013; nominee for a term ending 2028 (assuming re‑election).
- Leadership structure: Board Chair is non‑executive (Timothy W. Simmons); CEO and Chair roles separated.
| Body | Committee | Role | 2024 Meetings |
|---|---|---|---|
| Security Federal Corp. | Executive | Member | 3 |
| Security Federal Corp. | Audit | Member | 15 |
| Security Federal Corp. | Compensation (also Stock Option) | Member | 0 (no meetings in 2024) |
| Security Federal Corp. | Proxy | Member | 1 |
| Security Federal Corp. | Nominating | Member | 1 |
| Security Federal Bank | Executive | Member | 44 |
| Security Federal Bank | Loan | Member | 47 |
| Security Federal Bank | Audit | Member | 15 |
| Security Federal Bank | Compensation | Member | 10 |
| Security Federal Bank | Trust | Member | 26 |
| Security Federal Bank | Investment | Member | 12 |
Note: Audit Committee chair is Thomas L. Moore; Cummins is designated “audit committee financial expert.” Harmon serves as a member, not chair.
Fixed Compensation
| Year | Fees Earned or Paid in Cash ($) | All Other Compensation ($) | Total ($) | Notes |
|---|---|---|---|---|
| 2024 | 89,400 | 35,561 | 124,961 | All Other = Salary Continuation Agreement payments; Harmon retired at 63 and began receiving $2,963/mo on Apr 1, 2021 |
- Director fee structure: Board $2,750/month; Executive Committee $2,625/month (no fee for Verenes/Lindburg); Audit $1,508 per meeting + $367/month for chair; Trust/Investment $567/month; no fees for Compensation or Loan committees. Fees are paid by the Bank (not the holding company).
Performance Compensation
| Component | 2024 Amount/Status | Details |
|---|---|---|
| Stock awards (RSUs/PSUs) | $0 | No stock or option awards to directors disclosed for 2024 |
| Option awards | $0 | None disclosed for directors in 2024 |
| Non‑equity incentive comp | $0 | None for directors; NEO annual incentives were not paid for 2024 due to not meeting threshold net operating income, but this pertains to executives, not directors |
No director equity program is disclosed for 2024; director compensation is all‑cash aside from legacy salary continuation benefits for certain former executives.
Other Directorships & Interlocks
| Category | Entity | Role | Notes |
|---|---|---|---|
| Current public company boards | — | — | None disclosed in the proxy for Harmon |
| Private/non‑profit/academic | Aiken County Habitat for Humanity | Director | Community non‑profit |
| Potential interlocks/conflicts | — | — | No interlocks or related-party transactions disclosed for Harmon |
Expertise & Qualifications
- Banking and lending specialist: Senior leadership across mortgage, construction, commercial lending; former Bank President.
- Audit/risk oversight: Member of Audit Committees at both the company and bank (not chair; not designated financial expert).
- Broad committee workload: Active across Executive, Loan, Compensation (Bank), Trust, Investment committees.
- Community engagement: Non‑profit board service.
Equity Ownership
| Holder | Total Beneficial Ownership (shares) | % of Outstanding | Notable Details |
|---|---|---|---|
| Richard T. Harmon | 5,394 | <1% | Includes 644 shares held jointly with his wife |
As of March 10, 2025 (record date), Security Federal had 3,186,903 shares outstanding. No pledging/hedging or vested/unvested breakdown is disclosed for directors, and no director equity grants were reported for 2024.
Form 4 activity: No insider transactions by Harmon were identified in the 2022–Nov 20, 2025 window using the insider-trades tool (Form 4). If you want, I can expand the date range for a longer lookback.
Governance Assessment
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Strengths
- Independence with deep banking/lending operating experience; serves across key risk and credit committees, enhancing oversight of lending and credit risk.
- Engagement appears high: broad committee participation; no <75% attendance issues and attendance at 2024 annual meeting.
- Separation of Chair/CEO roles; non‑executive Chair structure supportive of independent oversight.
-
Watch items / potential red flags
- Legacy compensation tie: Ongoing Salary Continuation Agreement payments ($2,963/month) from prior executive tenure could pose perceived alignment concerns for an “independent” director, although classification remains independent under Nasdaq standards.
- Alignment: Director pay is entirely cash (no equity grants), and Harmon’s beneficial ownership is <1%, potentially limiting direct equity alignment compared to peers with mandatory stock retainers.
- Related‑party and loans: The proxy discloses insider lending policies and lists insider loans >$120k for select insiders; Harmon is not listed, and no related‑party transactions are disclosed for him—a positive, but continue monitoring.
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Net view
- Effective independent oversight profile with strong lending expertise and active committee service. The absence of director equity and the presence of legacy SERP-like payments modestly dilute alignment optics; consider shareholder engagement on director equity retainer adoption and continued succession/refreshment planning.