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 26, 2005
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))

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Item 2.02 Results of Operations and Financial Condition

        On July 26, 2005, Security Federal Corporation issued its earnings release for the year ended June 30, 2005. 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 July 26, 2005.

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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 27, 2005	By: /s/Roy G. Lindburg
	Roy G. Lindburg
	Treasurer and Chief Financial Officer

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Exhibit 99.1

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Security Federal Corporation Announces Increase in First Quarter Earnings
 

AIKEN, S.C.--July 26, 2005--Security Federal Corporation (OTCBB: SFDL), holding company of Security Federal Bank, announced earnings increased $127,000 or 16% to $929,000 or $0.37 per share (basic) for the three months ending June 30, 2005 compared to $802,000 or $0.32 per share (basic) for the three months ending June 30, 2004. The quarter ending June 30th is the first quarter of the Company's fiscal year. The increase in earnings is a result of a $475,000 or 14% increase in net interest income offset partially by a $302,000 or 11% increase in general and administrative expenses.

Total assets at June 30, 2005 were $602.5 million compared to $586.0 million at March 31, 2005, an increase of 3%. Net loans receivable increased $16.8 million or 5% to $333.7 million at June 30, 2005 from $316.9 million at March 31, 2005. Total deposits were $441.2 million at June 30, 2005 compared to $430.3 million at March 31, 2005, an increase of 3%. Federal Home Loan Bank advances and other borrowings increased $3.8 million or 3% to $121.4 million at June 30, 2005 from $118.5 million at March 31, 2005.

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.

Safe-Harbor Statement

The information contained in this press release contains forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results and conditions to differ materially from those projected in these forward-looking statements, and these factors are enumerated in the Company's filings with the Securities and Exchange Commission.

Contact:

Security Federal Corporation Roy Lindburg, 803-641-3070

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