Regulatory Matters

9 Months Ended

Sep. 30, 2013

Banking and Thrift [Abstract]

Regulatory Matters

Regulatory Matters

The Federal Reserve and bank regulatory agencies require bank holding companies and financial institutions to maintain capital at adequate levels based on a percentage of assets and off-balance sheet exposures, adjusted for risk weights ranging from 0% to 100%. Under the capital adequacy guidelines, regulatory capital is classified into two tiers. These guidelines require an institution to maintain a certain level of Tier 1 and Tier 2 capital to risk-weighted assets. Tier 1 capital consists of common shareholders' equity, excluding the unrealized gain or loss on securities available for sale, minus certain intangible assets. In determining the amount of risk-weighted assets, all assets, including certain off-balance sheet assets, are multiplied by a risk-weight factor of 0% to 100% based on the risks believed to be inherent in the type of asset. Tier 2 capital consists of Tier 1 capital plus the general reserve for loan losses, subject to certain limitations. The Bank is required to maintain capital at a minimum level based on total average assets, which is known as the Tier 1 leverage ratio.Failure to meet minimum capital requirements can initiate certain mandatory and discretionary actions by regulators that could have a material adverse effect on the Company.  As of September 30, 2013 and December 31, 2012, the Bank was categorized as “well capitalized” under the regulatory framework for prompt corrective action.  The Company and the Bank’s regulatory capital amounts and ratios are as follows as of the dates indicated:

	Actual				For Capital Adequacy				To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(Dollars in Thousands)
September 30, 2013
SECURITY FEDERAL CORP.
Tier 1 Risk-Based Core Capital (To Risk Weighted Assets)	$	69,223	17.4	%	$	15,956	4.0	%	N/A		N/A
Total Risk-Based Capital (To Risk Weighted Assets)	83,475		20.9	%	31,913		8.0	%	N/A		N/A
Tier 1 Leverage (Core) Capital (To Adjusted Tangible Assets)	69,223		8.1	%	34,371		4.0	%	N/A		N/A
SECURITY FEDERAL BANK
Tier 1 Risk-Based Core Capital (To Risk Weighted Assets)	$	80,916	20.3	%	$	15,946	4.0	%	$	23,919	6.0	%
Total Risk-Based Capital (To Risk Weighted Assets)	85,969		21.6	%	31,892		8.0	%	39,865		10.0	%
Tier 1 Leverage (Core) Capital (To Adjusted Tangible Assets)	80,916		9.5	%	34,232		4.0	%	42,790		5.0	%
December 31, 2012
SECURITY FEDERAL CORP.
Tier 1 Risk-Based Core Capital (To Risk Weighted Assets)	$	68,639	16.5	%	$	16,619	4.0	%	N/A		N/A
Total Risk-Based Capital (To Risk Weighted Assets)	84,148		20.3	%	33,237		8.0	%	N/A		N/A
Tier 1 Leverage (Core) Capital (To Adjusted Tangible Assets)	68,639		7.7	%	35,552		4.0	%	N/A		N/A
SECURITY FEDERAL BANK
Tier 1 Risk-Based Core Capital (To Risk Weighted Assets)	$	80,822	19.5	%	$	16,606	4.0	%	$	24,909	6.0	%
Total Risk-Based Capital (To Risk Weighted Assets)	86,012		20.7	%	33,212		8.0	%	41,515		10.0	%
Tier 1 Leverage (Core) Capital (To Adjusted Tangible Assets)	80,822		9.1	%	35,541		4.0	%	44,426		5.0	%