Security Federal Corporation Condensed Financial Statements

12 Months Ended

Mar. 31, 2012

Security Federal Corporation Condensed Financial Statements:

Security Federal Corporation Condensed Financial Statements

(22) Security Federal Corporation Condensed Financial Statements (Parent Company Only)

The following is condensed financial information of Security Federal Corporation (Parent Company only).  The primary asset is its investment in the Bank subsidiary and the principal source of income for the Company is equity in undistributed earnings from the Bank.

Condensed Balance Sheet Data

		At March 31,
		2012		2011
Assets:
Cash	$	5,471,308	$	5,422,037
Investment Securities, Available For Sale		75,750		78,750
Investment in Security Federal Statutory Trust		155,000		155,000
Loans Receivable, Net		-		1,786,294
Investment In Security Federal Bank		86,405,275		81,411,687
Accounts Receivable And Other Assets		69,787		36,616
Total Assets	$	92,177,120	$	88,890,384
Liabilities And Shareholders’ Equity:
Accounts Payable And Other Liabilities	$	167,534	$	173,167
Other Borrowings		-		-
Junior Subordinated Debentures		5,155,000		5,155,000
Senior Convertible Debentures		6,084,000		6,084,000
Mandatorily Redeemable Financial Instrument		-		1,467,312
Shareholders’ Equity		80,770,586		76,010,905
Total Liabilities And Shareholders’ Equity	$	92,177,120	$	88,890,384

Condensed Statements of Income Data

		For the Years Ended March 31,
		2012		2011		2010
Income:
Equity In Earnings Of Security Federal Bank	$	2,095,707	$	2,029,275	$	2,004,759
Interest Income		78,667		91,806		10,163
Miscellaneous Income		34,338		24,803		7,199
Total Income		2,208,712		2,145,884		2,022,121
Expenses:
Interest Expense		653,727		720,081		474,133
Mandatorily Redeemable Financial Instrument  Valuation (Income) Expense		(50,000)		(196,000)		63,000
Other Expenses		24,329		37,757		38,982
Total Expenses		628,056		561,838		576,115
Income Before Income Taxes		1,580,656		1,584,046		1,446,006
Income Tax Benefit		(214,719)		(258,867)		(158,795)
Net Income		1,795,375		1,842,913		1,604,801
Preferred Stock Dividends		440,000		666,453		900,000
Accretion of Preferred Stock to Redemption          Value		-		18,816		72,544
Net Income Available to Common Shareholders	$	1,355,375	$	1,157,644	$	632,257

Condensed Statements of Cash Flow Data

		For the Years Ended March 31,
		2012		2011		2010
Operating Activities:
Net Income	$	1,795,375	$	1,842,913	$	1,604,801
Adjustments To Reconcile Net Income To Net Cash Provided By (Used In) Operating Activities:
Equity In Earnings Of Security Federal Bank		(2,095,707)		(2,029,275)		(2,004,759)
Stock Compensation Expense		33,123		34,424		33,124
Mandatorily Redeemable Financial Instrument Valuation (Income) Expense		(50,000)		(196,000)		63,000
(Increase) Decrease In Accounts Receivable And Other Assets		(32,154)		214		194,933
Increase (Decrease) In Accounts Payable		(5,633)		(1,236)		143,154
Net Cash Provided By (Used In) Operating Activities		(354,996)		(348,960)		34,253
Investing Activities:
Decrease (Increase) In Loans Receivable		1,786,294		(1,786,294)		-
Additional Investment in Security Federal Bank		-		(4,000,000)		-
Net Cash Provided By (Used In) Investing Activities		1,786,294		(5,786,294)		-
Financing Activities:
Employee Stock Purchase Plan Purchases		-		-		19,800
Proceeds From Issuance Of Senior Convertible Debentures		-		-		6,084,000
Proceeds From Issuance Of Common Stock		-		4,829,060		-
Proceeds From Issuance Of Preferred Stock		-		22,000,000		-
Redemption Of Preferred Stock		-		(18,000,000)		-
Repayments On Line of Credit		-		-		(4,787,330)
Dividends Paid To Shareholders-Preferred Stock		(440,000)		(726,222)		(900,000)
Dividends Paid To Shareholders-Common Stock		(942,027)		(858,184)		(787,550)
Net Cash Provided By (Used In) Financing Activities		(1,382,027)		7,244,654		(371,080)
Net Increase (Decrease) In Cash		49,271		1,109,400		(336,827)
Cash At Beginning Of Year		5,422,037		4,312,637		4,649,464
Cash At End Of Year	$	5,471,308	$	5,422,037	$	4,312,637