-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, JdOuR0vYE3khqr51p/jZqeGd6ieBj6H/85IVShn3VmkURfPgwu4wUadIxtUy4KSI hRIZ9Yovop+uSgP/h2Rqsg== 0000939057-06-000299.txt : 20061027 0000939057-06-000299.hdr.sgml : 20061027 20061027165710 ACCESSION NUMBER: 0000939057-06-000299 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20061027 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20061027 DATE AS OF CHANGE: 20061027 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SECURITY FEDERAL CORP CENTRAL INDEX KEY: 0000818677 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035] IRS NUMBER: 570858504 STATE OF INCORPORATION: SC FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-16120 FILM NUMBER: 061169504 BUSINESS ADDRESS: STREET 1: 238 RICHLAND AVENUE WEST CITY: AIKEN STATE: SC ZIP: 29801 BUSINESS PHONE: 8036413000 MAIL ADDRESS: STREET 1: 238 RICHLAND AVENUE WEST CITY: AIKEN STATE: SC ZIP: 29801 FORMER COMPANY: FORMER CONFORMED NAME: SECURITY FEDERAL CORPORATION DATE OF NAME CHANGE: 19920703 8-K 1 k8102706.txt SECURITY FEDERAL CORPORATION FORM 8-K 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): October 27, 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 October 27, 2006, Security Federal Corporation issued its earnings release for the quarter ended September 30, 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 October 27, 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: October 27, 2006 By:/s/Roy G. Lindburg ----------------------------- Roy G. Lindburg Treasurer and Chief Financial Officer Exhibit 99.1 News Release SECURITY FEDERAL CORPORATION ANNOUNCES INCREASE IN SECOND QUARTER EARNINGS Aiken, South Carolina (October 27, 2006) - Security Federal Corporation ("Company") (OTCBB:SFDL.OB), the holding company of Security Federal Bank, today announced earnings for the second quarter of its fiscal year ending March 31, 2007. The Company reported net income of $1.0 million or $0.39 per share (basic) for the three months ending September 30, 2006, an 8.14% increase from net income of $950,000 or $0.38 per share (basic) for the three months ended September 30, 2005. For the six months ended September 30, 2006, net income was $2.0 million or $0.80 per share (basic) a 9.07% increase from $1.9 million or $0.74 per share (basic) for the six months ended September 30, 2005. The increase in quarterly earnings is the result of a $351,000 increase in net interest income and a $300,000 increase in non-interest income offset partially by a $558,000 increase in non-interest expense. For the six months ending September 30, 2006, the increase in earnings is the result of a $790,000 increase in net interest income and a $410,000 increase in non-interest income offset partially by a $1.0 million increase in non-interest expense. Total assets at September 30, 2006 were $684.7 million compared to $658.7 million at March 31, 2006, an increase of $26.0 million or 3.95% for the six-month period. Net loans receivable increased $31.4 million or 8.37% to $406.5 million at September 30, 2006 from $375.1 million at March 31, 2006. Total deposits increased $7.8 million or 1.64% to $487.1 million at September 30, 2006 compared to $479.2 million at March 31, 2006. Federal Home Loan Bank advances, other borrowings, and junior subordinated debentures increased $13.2 million or 9.55% to $151.9 million at September 30, 2006 from $138.7 million at March 31, 2006. During the three months ended September 30, 2006, the Company completed a $5.0 million trust preferred securities offering. The offering provides capital that will allow the Company to continue its growth plan. Also, the Company acquired land near Ballentine, South Carolina to further expand its branch network. 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 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 ended March 31, 2006. 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 Six Months Ended September 30, September 30, 2006 2005 2006 2005 ------------------------- ------------------------ Total interest income $10,199 $7,836 $19,824 $15,248 Total interest expense 5,744 3,784 10,959 7,273 ------------------------- ------------------------ Net interest income 4,455 4,052 8,865 7,975 Provision for loan losses 150 165 300 330 ------------------------- ------------------------ Net interest income after provision for loan losses 4,305 3,887 8,565 7,645 Non-interest income 996 749 1,749 1,439 Non-interest expense 3,729 3,172 7,173 6,168 ------------------------- ------------------------ Income before income taxes 1,572 1,464 3,141 2,916 Provision for income taxes 545 514 1,092 1,037 ------------------------- ------------------------ Net income $1,027 $950 $2,049 $1,879 ========================= ======================== Earnings per share (basic) $0.39 $0.38 $0.80 $0.74 ========================= ======================== BALANCE SHEET HIGHLIGHTS (In Thousands, except for Book Value per Share) September 30, 2006 March 31, 2006 ------------------------------------------- Total assets $684,714 $658,678 Cash and cash equivalents 8,333 14,351 Total loans receivable, net 406,504 375,109 Investment and mortgage- backed securities 233,477 238,433 Deposits 487,065 479,229 Borrowings 151,896 138,653 Shareholders' equity 40,417 37,602 Book value per share $15.44 $14.82 -----END PRIVACY-ENHANCED MESSAGE-----