Security Federal Corporation Condensed Financial Statements (Parent Company Only)

12 Months Ended

Dec. 31, 2016

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Security Federal Corporation Condensed Financial Statements (Parent Company Only)

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

	December 31,
	2016		2015
Assets:
Cash	$	4,631,554	$	8,785,338
Investment Securities, Available For Sale	213,000		154,902
Investment in Security Federal Statutory Trust	155,000		155,000
Investment in Security Federal Bank	90,441,110		93,150,771
Accounts Receivable and Other Assets	31,275		25,242
Total Assets	$	95,471,939	$	102,271,253
Liabilities and Shareholders’ Equity:
Accounts Payable and Other Liabilities	$	121,965	$	66,130
Note Payable	13,000,000		—
Junior Subordinated Debentures	5,155,000		5,155,000
Senior Convertible Debentures	6,084,000		6,084,000
Shareholders’ Equity	71,110,974		90,966,123
Total Liabilities and Shareholders’ Equity	$	95,471,939	$	102,271,253

Condensed Statements of Income Data

	Years Ended December 31,
	2016			2015			2014
Income:
Equity in Earnings of Security Federal Bank	$	410,959		$	506,074		$	3,779,212
Dividend Income from Security Federal Bank	6,000,000			6,000,000			2,400,000
Miscellaneous Income	21,530			15,828			12,937
Total Income	6,432,489			6,521,902			6,192,149
Expenses:
Interest Expense	688,750			591,054			587,859
Other Expenses	69,603			18,822			19,382
Total Expenses	758,353			609,876			607,241
Income Before Income Taxes	5,674,136			5,912,026			5,584,908
Income Tax Benefit	(250,520		)	(203,901		)	(225,832		)
Net Income	5,924,656			6,115,927			5,810,740
Preferred Stock Dividends	(422,889		)	(440,000		)	(440,000		)
Gain on Redemption of Preferred Stock	660,000			—			—
Net Income Available to Common Shareholders	$	6,161,767		$	5,675,927		$	5,370,740

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

Condensed Statements of Cash Flow Data

	Years Ended December 31,
	2016			2015			2014
Operating Activities:
Net Income	$	5,924,656		$	6,115,927		$	5,810,740
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities:
Equity in Earnings of Security Federal Bank	(410,959		)	(506,074		)	(3,779,212		)
Stock Compensation Expense	7,912			12,676			12,676
(Increase) Decrease in Accounts Receivable	14,207			825			(49		)
Increase in Accounts Payable	15,841			1,758			270
Net Cash Provided By Operating Activities	5,551,657			5,625,112			2,044,425
Financing Activities:
Redemption of Preferred Stock	(21,340,000		)	—			—
Proceeds from Note Payable	14,000,000			—			—
Repayment of Note Payable	(1,000,000		)	—			—
Dividends Paid to Shareholders-Preferred Stock	(422,889		)	(440,000		)	(440,000		)
Dividends Paid to Shareholders-Common Stock	(942,552		)	(942,552		)	(942,080		)
Net Cash Used in Financing Activities	(9,705,441		)	(1,382,552		)	(1,382,080		)
Net Increase (Decrease) in Cash	(4,153,784		)	4,242,560			662,345
Cash at Beginning of Period	8,785,338			4,542,778			3,880,433
Cash at End of Period	$	4,631,554		$	8,785,338		$	4,542,778