-----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, HIB6jlZyS9fg9hGPDKnYU2wBhNJHwMqQVVD/S2zVbkIL+fcJZzne4jFcGrg3yLUu BYFcXf364X5gkY4y0iYoTQ== 0000939057-07-000012.txt : 20070123 0000939057-07-000012.hdr.sgml : 20070123 20070123122642 ACCESSION NUMBER: 0000939057-07-000012 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20070123 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070123 DATE AS OF CHANGE: 20070123 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: 07545303 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 k8012307.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): January 23, 2007 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 January 23, 2007, Security Federal Corporation issued its earnings release for the quarter ended December 31, 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 January 23, 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: January 23, 2007 By:/s/Roy G. Lindburg ----------------------------- Roy G. Lindburg Treasurer and Chief Financial Officer Exhibit 99.1 NEWS RELEASE SECURITY FEDERAL CORPORATION ANNOUNCES INCREASE IN THIRD QUARTER EARNINGS Aiken, South Carolina (January 23, 2007) - Security Federal Corporation (OTCBB:SFDL.OB), the holding company of Security Federal Bank, today announced earnings for the third quarter of its fiscal year ending March 31, 2007. The Company reported net income of $977,000 or $0.37 per share (basic) for the three months ending December 31, 2006, a 2.0% increase from net income of $958,000 or $0.38 per share (basic) for the three months ending December 31, 2005. For the nine months ending December 31, 2006, net income increased 6.7% to $3.0 million or $1.16 per share (basic) from $2.8 million or $1.12 per share (basic) for the nine months ending December 31, 2005. The increase in quarterly earnings is the result of a $196,000 increase in net interest income, a $354,000 increase in non-interest income, and a $66,000 decrease in provision for income taxes offset partially by a $612,000 increase in non-interest expense. For the nine months ending December 31, 2006, the increase in earnings is the result of a $987,000 increase in net interest income and a $764,000 increase in non-interest income offset partially by a $1.6 million increase in non-interest expense. Total assets at December 31, 2006 were $714.6 million compared to $658.7 million at March 31, 2006, an increase of $55.9 million or 8.5% for the nine-month period. Net loans receivable increased $46.4 million or 12.4% to $421.5 million at December 31, 2006 from $375.1 million at March 31, 2006. Total deposits increased $28.4 million or 5.9% to $507.6 million at December 31, 2006 compared to $479.2 million at March 31, 2006. Federal Home Loan Bank advances, other borrowings, and junior subordinated debentures increased $21.7 million or 15.7% to $160.4 million at December 31, 2006 from $138.7 million at March 31, 2006. During the three months ended December 31, 2006, the Company acquired land in northeast Richland County to further expand its branch network. The Company previously acquired lots in north Aiken and Ballentine, South Carolina, and in Evans, Georgia, which it intends to use for future branches. Construction began recently on the Evans branch facility. These additional branches will diversify the Company's markets from primarily Aiken and Lexington Counties to also include Richland County, South Carolina and Columbia County, Georgia. In June 2006, the Company acquired Collier Jennings, a local insurance agency in order to diversify its revenue base. It is believed that these expansions will have a short-term negative impact on earnings, but should have a positive impact on earnings over the long term. 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 Nine Months Ended December 31, December 31, 2006 2005 2006 2005 ----------------- ------------------ Total interest income $10,788 $8,324 $30,611 $23,672 Total interest expense 6,379 4,112 17,338 11,385 ----------------- ------------------ Net interest income 4,409 4,212 13,273 12,287 Provision for loan losses 150 165 450 495 ----------------- ------------------ Net interest income after provision for loan losses 4,259 4,047 12,823 11,792 Non-interest income 1,014 661 2,763 1,999 Non-interest expense 3,817 3,205 10,989 9,372 ----------------- ------------------ Income before income taxes 1,456 1,503 4,597 4,419 Provision for income taxes 479 545 1,571 1,582 ----------------- ------------------ Net income $ 977 $ 958 $ 3,026 $ 2,837 ================= ================== Earnings per share $0.37 $0.38 $1.16 $1.12 ================= ================== BALANCE SHEET HIGHLIGHTS (In Thousands, except for Book Value per Share) December 31, March 31, 2006 2006 ----------------------- Total assets $714,625 $658,678 Cash and cash equivalents 10,694 14,351 Total loans receivable, net 421,483 375,109 Investment and mortgage- backed securities 244,477 238,433 Deposits 507,562 479,229 Borrowings 160,370 138,653 Shareholders' equity 41,568 37,602 Book value per share $15.89 $14.82 -----END PRIVACY-ENHANCED MESSAGE-----