UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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): October 22, 2007
SECURITY FEDERAL CORPORATION
(Exact name of registrant as specified in its charter)
South Carolina 0-16120 57-0858504
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
238 Richland Avenue West, 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
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of
the following provisions.
[ ] Written communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition
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On October 22, 2007, Security Federal Corporation issued its earnings
release for the fourth quarter and the quarter ended September 30, 2007. A
copy of the earnings release is attached hereto as Exhibit 99.1 and
incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits
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(c) Exhibits
99.1 Press Release of Security Federal Corporation dated October 22,
2007.
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.
SECURITY FEDERAL CORPORATION
Date: October 22, 2007 By: /s/Roy G. Lindburg
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Roy G. Lindburg
Treasurer and Chief Financial Officer
Exhibit 99.1
News Release
SECURITY FEDERAL CORPORATION ANNOUNCES INCREASE IN
SECOND QUARTER EARNINGS
Aiken, South Carolina (October 22, 2007) - Security Federal Corporation
("Company") (OTCBB:SFDL.OB), the holding company of Security Federal Bank,
today announced earnings for the second quarter of its fiscal year ending
March 31, 2008. The Company reported net income of $1.1 million or $0.43 per
share (basic) for the three months ending September 30, 2007, a 9.79% increase
from net income of $1.0 million or $0.39 per share (basic) for the three
months ended September 30, 2006. For the six months ending September 30,
2007, net income was $2.2 million or $0.85 per share (basic) an 8.50% increase
from $2.0 million or $0.80 per share (basic) for the six months ended
September 30, 2006. The increases in earnings for the quarter and six month
period are primarily a result of increases in net interest income in both
periods.
Total assets at September 30, 2007 were $799.5 million compared to $738.1
million at March 31, 2007, an increase of $61.4 million or 8.32% for the
six-month period. Net loans receivable increased $51.1 million or 11.72% to
$487.1 million at September 30, 2007 from $436.0 million at March 31, 2007.
Total deposits increased $31.9 million or 6.08% to $555.6 million at September
30, 2007 compared to $523.7 million at March 31, 2007. Federal Home Loan Bank
advances, other borrowings, and junior subordinated debentures increased $26.9
million or 16.20% to $193.2 million at September 30, 2007 from $166.3 million
at March 31, 2007.
Security Federal Bank has eleven full service branch locations in Aiken,
Clearwater, Graniteville, Langley, Lexington, North Augusta, Wagener, and West
Columbia, South Carolina. The Bank anticipates opening branches in Evans,
Georgia and downtown Columbia, South Carolina during the December 2007
quarter. Additional financial services are provided by three of the Bank's
wholly owned subsidiaries, Security Federal Insurance, Inc., Security Federal
Investments, Inc., and Security Federal Trust, Inc.
For additional information contact Roy Lindburg, Chief Financial Officer, at
(803) 641-3070
Forward-looking statements:
Certain matters discussed in this press release may contain forward-looking
statements within the meaning of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements relate to, among other things,
expectations of the business environment in which the Company operates,
projections of future performance, perceived opportunities in the market,
potential future credit experience, and statements regarding the Company's
mission and vision. These forward-looking statements are
based upon current management expectations and may, therefore, involve risks
and uncertainties. The Company's actual results, performance, or achievements
may differ materially from those suggested, expressed, or implied by
forward-looking statements as a result of a wide variety or range of factors
including, but not limited to, interest rate fluctuations; economic conditions
in the Company's primary market area; demand for residential, commercial
business and commercial real estate, consumer, and other types of loans;
success of new products; competitive conditions between banks and non-bank
financial service providers; regulatory and accounting changes; technology
factors affecting operations; pricing of products and services; and other
risks detailed in the Company's reports filed with the Securities and Exchange
Commission, including its Annual Report on Form 10-K for the fiscal year ended
March 31, 2007. Accordingly, these factors should be considered in evaluating
forward-looking statements, and undue reliance should not be placed on such
statements. The Company undertakes no responsibility to update or revise any
forward-looking statement.
SECURITY FEDERAL CORPORATION
UNAUDITED CONSOLIDATED FINANCIAL
HIGHLIGHTS
INCOME STATEMENT HIGHLIGHTS
(In Thousands, except for Earnings per Share)
Quarter Ended Six Months Ended
September 30, September 30,
2007 2006 2007 2006
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Total interest income $12,647 $10,283 $24,553 $19,908
Total interest expense 7,487 5,744 14,416 10,959
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Net interest income 5,160 4,539 10,137 8,949
Provision for loan losses 150 150 300 300
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Net interest income after
provision for loan losses 5,010 4,389 9,837 8,649
Non-interest income 1,049 913 2,110 1,665
Non-interest expense 4,381 3,729 8,632 7,173
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Income before income taxes 1,678 1,573 3,315 3,141
Provision for income taxes 550 546 1,091 1,092
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Net income $1,128 $1,027 $2,224 $2,049
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Earnings per share $0.43 $0.39 $0.85 $0.80
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BALANCE SHEET HIGHLIGHTS
(In Thousands, except for Book Value per Share)
September 30, March 31,
2007 2007
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Total assets $799,542 $738,110
Cash and cash equivalents 11,815 13,438
Total loans receivable, net 487,145 436,038
Investment and mortgage-
backed securities 254,579 249,905
Deposits 555,599 523,738
Borrowings 193,231 166,292
Shareholders' equity 44,502 42,693
Book value per share $17.15 $16.36