Security Federal Corporation Condensed Financial Statements (Parent Company Only)

12 Months Ended

Dec. 31, 2022

Condensed Financial Information Disclosure [Abstract]

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,
(In Thousands)	2022		2021
Assets:
Cash	$	28,813	$	20,177
Investments, HTM	60,819		—
Investment in Security Federal Statutory Trust	155		155
Investment in Security Federal Bank	101,871		130,198
Accrued Interest Receivable	190		—
Accounts Receivable and Other Assets	194		283
Total Assets	$	192,042	$	150,813
Liabilities and Shareholders’ Equity:
Accounts Payable and Other Liabilities	$	153	$	135
Long-term Debt	31,655		35,155
Shareholders’ Equity	160,234		115,523
Total Liabilities and Shareholders’ Equity	$	192,042	$	150,813

Condensed Statements of Income Data

	Years Ended December 31,
(In Thousands)	2022		2021
Income:
Equity in Earnings of Security Federal Bank	$	10,668	$	14,110
Investment Securities Interest Income	1,226		—
Miscellaneous Income	16		46
Total Income	11,910		14,156
Expenses:
Interest Expense	1,732		1,672
Other Expenses	65		65
Total Expenses	1,797		1,737
Income Before Income Taxes	10,113		12,419
Income Tax Benefit	(115)		(355)
Net Income	$	10,228	$	12,774

Condensed Statements of Cash Flow Data

	Years Ended December 31,
(In Thousands)	2022		2021
Operating Activities:
Net Income	$	10,228	$	12,774
Adjustments to Reconcile Net Income to Net Cash Used in Operating Activities:
Equity in Earnings of Security Federal Bank	(10,668)		(14,110)
Discount Accretion and Premium Amortization, Net	(125)		—
Increase in Accrued Interest Receivable	(190)		—
Decrease in Accounts Receivable and Other Assets	89		59
Increase (Decrease) in Accounts Payable and Other Liabilities	19		—
Net Cash Used By Operating Activities	(647)		(1,277)
Investing Activities:
Purchase of Investment Securities HTM	(62,512)		—
Proceeds from Principal Paydowns of HTM Securities	1,818		—
Investment in Subsidiary	(7,000)		—
Net Cash Used By Investing Activities	(67,694)		—
Financing Activities:
Repurchase of Subordinated Debentures	(3,500)		—
Proceeds from Issuance of Preferred Stock	82,949		—
Dividends Paid to Shareholders-Common Stock	(2,472)		(1,431)
Net Cash Provided (Used) By Financing Activities	76,977		(1,431)
Net Increase (Decrease) in Cash	8,636		(2,708)
Cash at Beginning of Period	20,177		22,885
Cash at End of Period	$	28,813	$	20,177