UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported) April 27, 2004
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Security Federal Corporation
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(Exact Name of Registrant as Specified in Charter)
South Carolina 0-16120 57-0858504
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(State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation) File Number) Identification No.)
1705 Whiskey Road South, Aiken, South Carolina 29801
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (803) 641-3000
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Not Applicable
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(Former Name or Former Address, if Changed Since Last Report)
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(c) Exhibits
99.1 News Release of Security Federal Corporation dated
April 27, 2004.
Item 12. Results of Operations and Financial Condition.
On April 27, 2004, Security Federal Corporation issued its earnings
release for the quarter ended March 31, 2004. A copy of the earnings release
is attached hereto as Exhibit 99.1, which is incorporated herein by reference.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: April 28, 2004 SECURITY FEDERAL CORPORATION
/s/ Roy G. Lindburg
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Roy G. Lindburg
Treasurer and Chief Financial Officer
Exhibit 99.1
News Release Dated April 27, 2004
SECURITY FEDERAL CORPORATION ANNOUNCES QUARTERLY EARNINGS
AIKEN, S.C.--(BUSINESS WIRE)--April 27, 2004--Security Federal
Corporation (OTCBB:SFDL), the holding company of Security Federal Bank,
announced record earnings for the seventh consecutive year totaling $4.3
million or $1.70 per share (basic) for the year ending March 31, 2004 compared
to $3.2 million or $1.29 per share (basic) for the year ending March 31, 2003,
an increase in earnings of 32%.
A portion of the increase in earnings was the result of a branch sale,
which increased net income after tax and contingencies by approximately
$820,000. Excluding the gain from the branch sale, which occurred in February
2004, earnings were a record $3.4 million or $1.37 per share (basic) for the
year ending March 31, 2004, an increase of 6.6%. Contributing to the increase
in earnings were a decrease in the provision for loan losses of $600,000 or
33%, an increase in service fees on deposit accounts of $78,000 or 6.2%, and
an increase in other income, which includes gains on sales of repossessed
assets, trust fees, insurance and brokerage commissions, and other fees, of
$142,000 or 21%. Net interest income decreased $239,000 or 1.8%, gain on sale
of mortgage loans decreased $326,000 or 20%, while general and administrative
expenses increased $42,000 or less than 1%.
For the quarter ending March 31, 2004, earnings were $1.5 million or
$0.62 per share (basic) compared to $773,000 or $0.30 per share (basic) for
the three months ending March 31, 2003. Without the branch sale, earnings for
the March 2004 quarter were $728,000 or $0.29 per share (basic), a decrease in
quarterly earnings of $45,000 or 5.8%. The primary factors in the decrease in
earnings were a $406,000 or 85% decrease in the gain on sale of mortgage loans
and a $115,000 or 4.4% increase in general and administrative expenses. Net
interest income increased $237,000 or 7.3%, provision for loan losses
decreased $150,000 or 33%, while other income increased $44,000 or 28%.
Total assets increased 19% to $528.0 million, net loans receivable
increased 6.9% to $259.9 million, and deposits increased 8.7% to $389.6
million at March 31, 2004 compared to March 31, 2003.
Security Federal Bank has eleven full service branches located in Aiken,
Clearwater, Graniteville, Langley, Lexington, North Augusta, Wagener, and West
Columbia, South Carolina. The Bank plans to open a new full service branch in
Irmo, South Carolina during calendar 2005. Additional financial services are
offered through the Bank's three wholly owned subsidiaries, Security Federal
Trust Inc., Security Federal Investments Inc., and Security Federal Insurance
Inc., which offer a full scope of insurance, investment, and trust services,
including financial and retirement planning.
CONTACT: Security Federal Corporation
Roy Lindburg, 803-641-3070