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 23, 2004
                                                   ---------------------------



                           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
                                                   ---------------------------



                                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
                      July 23, 2004.


Item 12. Results of Operations and Financial Condition.

     On July 23, 2004, Security Federal Corporation issued its earnings
release for the quarter ended June 30, 2004.  A copy of the 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: July 23, 2004                     SECURITY FEDERAL CORPORATION


                                        /s/ Roy G. Lindburg
                                        -------------------------------------
                                        Roy G. Lindburg
                                        Treasurer and Chief Financial Officer





                                  Exhibit 99.1

                         News Release Dated July 23, 2004





                                 News Release




           SECURITY FEDERAL CORPORATION ANNOUNCES QUARTERLY EARNINGS
           ---------------------------------------------------------


Aiken, South Carolina (July 23, 2004) - Security Federal Corporation
(OTCBB:SFDL), holding company of Security Federal Bank, announced earnings of
$802,000 or $0.32 per share (basic) for the three months ending June 30, 2004
compared to $923,000 or $0.37 per share (basic) for the three months ending
June 30, 2003.  The quarter ending June 30th is the first quarter of the
Company's fiscal year.  The decrease in earnings is a result of a $520,000
decrease in the gain on sale of mortgage loans due to fewer mortgage loan
originations.  Mortgage loan originations decreased due to higher interest
rates.

The decrease in gain on sale of mortgage loans was partially offset by an
increase in net interest income of $222,000 or 6.9% for the three months
ending June 30, 2004.  General and administrative expenses increased $44,000
or 1.7%.  Total assets at June 30, 2004 were $552.7 million compared to $528.0
million at March 31, 2004, an increase of 4.7%.  Net loans receivable
increased $4.5 million or 1.7% to $264.4 million at June 30, 2004 from March
31, 2004.  Total deposits were $402.2 million at June 30, 2004 compared to
$389.6 million at March 31, 2004, an increase of 3.2%.  Federal Home Loan Bank
advances and other borrowings increased $13.6 million or 13.4% to $115.4
million at June 30, 2004.

Security Federal Bank has eleven full service branch locations in Aiken,
Clearwater, Graniteville, Langley, Lexington, North Augusta, Wagener, and West
Columbia, South Carolina.  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