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 25, 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.)
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
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 April 25, 2007, Security Federal Corporation issued its earnings
release for the fourth quarter and fiscal year ended March 31, 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 April 25,
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: April 25, 2007 By:/s/Roy G. Lindburg
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Roy G. Lindburg
Treasurer and Chief Financial Officer
Exhibit 99.1
Security Federal Corporation Announces Increase in Annual Earnings
AIKEN, S.C.--(BUSINESS WIRE)--Security Federal Corporation (OTCBB:SFDL -
News), the holding company of Security Federal Bank, today announced earnings
for its fiscal year and for the fourth quarter of its fiscal year both ending
March 31, 2007. The Company reported net income of $4.1 million or $1.59 per
share (basic) for its fiscal year ending March 31, 2007, an 8.2% increase from
net income of $3.8 million or $1.51 per share (basic) for its prior fiscal
year ending March 31, 2006. This increase in net income is primarily a result
of a $1.5 million or 9.1% increase in net interest income and a $1.2 million
or 46.8% increase in non-interest income offset partially by a $2.1 million or
16.4% increase in general and administrative expenses for its fiscal year
ending March 31, 2007 when compared to its fiscal year ending March 31, 2006.
For the quarter ending March 31, 2007, net income was $1.1 million or $.42 per
share (basic), a 12.8% increase from net income of $976,000 or $.38 per share
(basic) for the quarter ending March 31, 2006. This increase in net income is
primarily a result of a $577,000 or 91.5% increase in non-interest income and
a $420,000 or 9.6% increase in net interest income partially offset by a
$513,000 or 14.0% increase in general and administrative expenses.
Total assets at March 31, 2007 were $738.1 million compared to $658.7 million
at March 31, 2006, an increase of 12.1% for the year. Net loans receivable
increased $60.9 million or 16.2% to $436.0 million at March 31, 2007 from
$375.1 million at March 31, 2006. Total deposits were $523.7 million at March
31, 2007 compared to $479.2 million at March 31, 2006, and increase of 9.3%.
Federal Home Loan Bank Advances, other borrowings, and subordinated debentures
increased $27.6 million or 19.9% to $166.3 million at March 31, 2007 from
$138.7 million at March 31, 2006.
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
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 non0-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 ending March 31, 2006,
Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. 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 Twelve Months
Ended
March 31, March 31,
2007 2006 2007 2006
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Total interest income $11,387 $8,945 $42,109 $32,617
Total interest expense 6,606 4,584 23,944 15,969
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Net interest income 4,781 4,361 18,165 16,648
Provision for loan losses 150 165 600 660
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Net interest income after
provision for loan losses 4,631 4,196 17,565 15,988
Gain on sale of loans 165 93 461 467
Service fees on deposit accounts 374 257 1,240 1,132
Other income 669 281 2,159 1,031
General and administrative
expenses 4,168 3,655 15,157 13,027
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Income before income taxes 1,671 1,172 6,268 5,591
Provision for income taxes 571 196 2,141 1,778
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Net income $1,100 $976 $4,127 $3,813
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Earnings per share $0.42 $0.38 $1.59 $1.51
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BALANCE SHEET HIGHLIGHTS
(In Thousands, except for Book Value per Share)
March 31, March 31,
2007 2006
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Total assets $738,100 $658,678
Cash and cash equivalents 13,438 14,351
Total loans receivable, net 436,038 375,109
Investment and mortgage- backed securities
249,750 238,433
Deposits 523,738 479,229
Borrowings 166,292 138,653
Shareholders' equity 42,683 37,602
Book value per share $16.36 $14.82
Contact:
Security Federal Corporation
Roy Lindburg, 803-641-3070
Chief Financial Officer