UNITED STATES
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SECURITIES AND EXCHANGE COMMISSION
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Washington, D.C. 20549
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FORM 8-K
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CURRENT REPORT
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Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934
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Date of Report (Date of earliest event reported): May 1, 2020
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SECURITY FEDERAL CORPORATION
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(Exact name of registrant as specified in its charter)
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South Carolina
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000-16120
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57-0858504
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(State or other jurisdiction
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(Commission
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(IRS Employer
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of incorporation)
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File Number)
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Identification No.)
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238 Richland Avenue NW, Aiken, South Carolina
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29801
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(Address of principal executive offices)
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(Zip Code)
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Registrant's telephone number (including area code): (803) 641-3000
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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.
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[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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[ ] 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))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of
the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company [ ]
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised
financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]
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SECURITY FEDERAL CORPORATION
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Date: May 1, 2020
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By:
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/s/ Jessica T. Cummins |
Jessica T. Cummins
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Chief Financial Officer
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•
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Total interest income increased $64,000 to $9.1 million for the first quarter of 2020, while interest expense increased $446,000 to $2.2 million
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•
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Total non-interest income increased $600,000 or 27.3% to $2.8 million
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•
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Average interest earning assets grew $74.7 million to $926 million at March 31, 2020 compared to $852 million at March 31, 2019
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•
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Average interest bearing liabilities grew $81.1 million to $809 million
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Quarter Ended
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(Dollars in Thousands, except for Earnings per Share)
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3/31/2020
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3/31/2019
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Total interest income
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$
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9,095
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$
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9,031
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Total interest expense
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2,219
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1,774
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Net interest income
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6,876
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7,257
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Provision for loan losses
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700
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100
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Net interest income after provision for loan losses
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6,176
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7,157
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Non-interest income
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2,796
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2,196
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Non-interest expense
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7,644
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6,744
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Income before income taxes
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1,328
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2,609
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Provision for income taxes
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264
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520
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Net income
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$
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1,064
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$
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2,089
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Earnings per common share (basic)
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$
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0.34
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$
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0.71
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Earnings per common share (diluted)
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$
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0.34
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$
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0.67
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•
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Provision for loan losses was $700,000 during the first quarter of 2020 compared to $100,000 for the same quarter last year due to the increased risk of charge-offs from
loan defaults as a result of COVID-19
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•
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Non-performing assets improved to $4.4 million at March 31, 2020 from $6.0 million at March 31, 2019
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•
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Allowance for loan losses as a percentage of gross loans was 2.1% at March 31, 2020 compared to 2.0% at both March 31, and December 31, 2019
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At Period End (dollars in thousands):
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3/31/2020
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12/31/2019
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3/31/2019
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Non-performing assets
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$
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4,443
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$
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4,114
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$
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5,977
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Non-performing assets to gross loans
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1.0
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%
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0.9
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%
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1.4
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%
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Allowance for loan losses
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$
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9,872
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$
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9,226
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$
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8,799
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Allowance to gross loans
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2.1
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%
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2.0
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%
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2.0
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%
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•
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Total assets increased $66.5 million during the first quarter of 2020 and $92.6 million since the first quarter of 2019 to $1.0 billion at March 31, 2020
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•
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Net loans receivable increased $7.1 million during the first quarter of 2020 and $30.7 million since the first quarter of 2019 to $460 million at March 31, 2020
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•
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Investment and mortgage-backed securities increased $54 million, or 12.4%, during the first quarter to $488 million
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•
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Total deposits increased $4.6 million to $776 million at March 31, 2020 from $771 million at December 31, 2019
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•
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Book value per share increased to $29.59 at March 31, 2020 from $28.83 at March 31, 2019
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Dollars in thousands (except per share amounts)
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3/31/2020
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12/31/2019
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3/31/2019
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Total assets
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$
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1,029,774
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$
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963,228
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$
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937,204
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Cash and cash equivalents
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15,462
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12,563
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19,120
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Total loans receivable, net
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459,967
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452,859
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429,314
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Investment and mortgage-backed securities
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487,611
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433,892
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425,790
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Deposits
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776,000
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771,407
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788,848
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Borrowings
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147,830
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90,917
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52,756
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Shareholders' equity
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96,262
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91,758
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85,191
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Book value per share
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$
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29.59
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$
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31.03
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$
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28.83
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Total risk based capital ratio (1)
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17.3
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%
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19.4
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%
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17.4
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%
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Common equity tier one ratio (1)
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16.1
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%
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18.2
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%
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16.1
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%
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(1)- Ratio is calculated using Bank only information and not consolidated information
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