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): July 24, 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 July 24, 2007, Security Federal Corporation issued its earnings
release for the quarter ended June 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 July 24, 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: July 25, 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 FIRST
QUARTER EARNINGS
Aiken, South Carolina (July 24, 2007) - Security Federal Corporation
(OTCBB:SFDL.OB), the holding company of Security Federal Bank, today announced
earnings for the first quarter of its fiscal year ending March 31, 2008. The
Company reported net income of $1.1 million or $0.42 per share (basic) for the
three months ending June 30, 2007, a 7.2% increase from net income of $1.0
million or $0.40 per share (basic) for the three months ending June 30, 2006.
The increase in net income is the result of an increase in net interest income
and non-interest income during the current quarter. Net interest income
increased $567,000 or 12.9% to $5.0 million for the three months ending June
30, 2007, compared to $4.4 million for the comparable quarter in 2006.
Non-interest income for the current quarter increased $309,000 or 41.1% to
$1.1 million compared to $751,000 for the three months ending June 30, 2006.
These increases were offset partially by an $808,000 or 23.5% increase in
non-interest expense to $4.3 million for the three months ending June 30,
2007, compared to $3.4 million for the three months ending June 30, 2006. The
increases in non-interest income and non- interest expense were primarily
attributable to the acquisition of Collier Jennings Financial, a local
insurance agency, in July 2006. Without the acquisition, non-interest income
would have increased approximately 18% and non-interest expense approximately
13% during the quarter ending June 30, 2007 when compared to the same period
in 2006.
Total assets at June 30, 2007 were $767.8 million compared to $738.1 million
at March 31, 2007, an increase of $29.7 million or 4.0% for the three-month
period. Net loans receivable increased $26.3 million or 6.0% to $462.3
million at June 30, 2007 from $436.0 million at March 31, 2007. Total
deposits increased $13.2 million or 2.5% to $537.0 million at June 30, 2007
compared to $523.7 million at March 31, 2007. Federal Home Loan Bank advances
and other borrowings increased $15.9 million or 9.6% to $182.2 million at June
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 ending 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
June 30,
2007 2006 % change
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Total interest income $11,906 $9,625 23.70%
Total interest expense 6,929 5,214 32.89%
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Net interest income 4,978 4,411 12.85%
Provision for loan losses 150 150 0.00%
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Net interest income after
provision for loan losses 4,828 4,261 13.30%
Non-interest income 1,061 751 41.05%
Non-interest expense 4,251 3,443 23.48%
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Income before income taxes 1,637 1,569 4.33%
Provision for income taxes 541 547 -1.12%
Net income $1,096 $1,022 7.24%
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Earnings per share $0.42 $0.40 5.00%
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BALANCE SHEET HIGHLIGHTS
(In Thousands, except for Book Value per Share)
June 30, 2007 March 31, 2007
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Total assets $767,761 $738,110
Cash and cash
equivalents 13,176 13,438
Total loans
receivable, net 462,347 436,038
Investment and
mortgage-backed
securities 247,843 249,905
Deposits 536,960 523,738
Borrowings 182,225 166,292
Shareholders' equity 42,626 42,693
Book value per share $16.35 $16.35