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): April 24, 2006
SECURITY FEDERAL CORPORATION
(Exact name of registrant as specified in its charter)
South Carolina 0-16120 57-0858504
--------------------- ------------------ ---------------
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
1705 Whiskey Road South, Aiken, South Carolina 29801
---------------------------------------------- ---------------
(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
--------------------------------------------------------
On April 24, 2006, Security Federal Corporation issued its earnings
release for the quarter and year ended March 31, 2006. 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
--------------------------------------------
(c) Exhibits
99.1 Press Release of Security Federal Corporation dated April 24,
2006.
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: April 26, 2006 By:/s/Timothy W. Simmons
----------------------------------
Timothy W. Simmons
Chief Executive Officer
Exhibit 99.1
News Release
SECURITY FEDERAL CORPORATION ANNOUNCES INCREASE IN ANNUAL
EARNINGS
Aiken, South Carolina (April 24, 2006) - Security Federal Corporation
(OTCBB:SFDL), the holding company of Security Federal Bank, today announced
earnings for the year ending March 31, 2006 and the fourth quarter of it
fiscal year ending March 31, 2006. The Company reported net income of $3.8
million or $1.51 per share (basic) for the year ending March 31, 2006, an 8.8%
increase from net income of $3.5 million or $1.39 per share (basic) for the
year ending March 31, 2005. The increase in net income is a result of a $2.4
million increase in net interest income, a $120,000 decrease in the provision
for loan losses, and a $136,000 increase in total other income offset
partially by a $2.3 million increase in general and administrative expenses
for the year ending March 31, 2006 when compared to the year ending March 31,
2005. For the quarter ending March 31, 2006, net income was $976,000 or $.38
per share (basic), a 1.6% decrease from net income of $992,000 or $.39 per
share (basic) for the quarter ending March 31, 2005. The decrease in net
income is a result of a $1.0 million increase in general and administrative
expenses partially offset by a $596,000 increase in net interest income, a
$30,000 decrease in the provision for loan losses, a $72,000 increase in total
other income, and a $286,000 decrease in the provision for income taxes.
Total assets at March 31, 2006 were $658.7 million compared to $586.0 million
at March 31, 2005, an increase of 12.4% for the year. Net loans receivable
increased $58.2 million or 18.4% to $375.1 million at March 31, 2006 from
$316.9 million at March 31, 2005. Total deposits were $479.2 million at March
31, 2006 compared to $430.3 million at March 31, 2005, and increase of 11.4%.
Federal Home Loan Bank Advances and other borrowings increased $21.0 million
or 17.9% to $138.7 million at March 31, 2006 from $117.6 million at March 31,
2005.
During the three months ending March 31, 2006, the Company purchased property
in Evans, Georgia, which will contain a full service branch in the future.
Security Federal Bank has eleven full service branches located in Aiken,
Clearwater, Graniteville, Langley, Lexington, North Augusta, Wagener, and West
Columbia, South Carolina. Additional financial services are offered through
the Bank's three 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.