Note 20 - Parent Company Only Condensed Financial Statements

12 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Condensed Financial Information of Parent Company Only Disclosure [Text Block]

NOTE 20 - PARENT COMPANY ONLY CONDENSED FINANCIAL STATEMENTS      

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)	2023		2022
Assets:
Cash	$	26,842	$	28,813
Investments, HTM		50,211		60,819
Investment in Security Federal Statutory Trust		155		155
Investment in Security Federal Bank		116,279		101,871
Accrued Interest Receivable		200		190
Accounts Receivable and Other Assets		11,163		194
Total Assets	$	204,850	$	192,042
Liabilities and Shareholders’ Equity:
Accounts Payable and Other Liabilities	$	833	$	153
Long-term Debt		31,655		31,655
Shareholders’ Equity		172,362		160,234
Total Liabilities and Shareholders’ Equity	$	204,850	$	192,042

Condensed Statements of Income Data

	Years Ended December 31,
(In Thousands)	2023		2022
Income:
Equity in Earnings of Security Federal Bank	$	9,595	$	10,668
Investment Securities Interest Income		2,574		1,226
Miscellaneous Income		-		16
Total Income		12,169		11,910
Expenses:
Interest Expense		1,755		1,732
Other Expenses		65		65
Total Expenses		1,820		1,797
Income Before Income Taxes		10,349		10,113
Income Tax Expense (Benefit)		159		(115	)
Net Income	$	10,190	$	10,228

Condensed Statements of Cash Flow Data

	Years Ended December 31,
(In Thousands)	2023			2022
Operating Activities:
Net Income	$	10,190		$	10,228
Adjustments to Reconcile Net Income to Net Cash Used in Operating Activities:
Equity in Earnings of Security Federal Bank		(9,595	)		(10,668	)
Discount Accretion and Premium Amortization, Net		(235	)		(125	)
Increase in Accrued Interest Receivable		(10	)		(190	)
(Increase) Decrease in Accounts Receivable and Other Assets		(10,970	)		89
Increase in Accounts Payable and Other Liabilities		678			19
Net Cash Used By Operating Activities		(9,942	)		(647	)
Investing Activities:
Purchase of HTM Securities		(2,934	)		(62,512	)
Proceeds from Principal Paydowns and Maturities of HTM Securities		13,777			1,818
Investment in Subsidiary		(660	)		(7,000	)
Net Cash Provided (Used) By Investing Activities		10,183			(67,694	)
Financing Activities:
Repurchase of Subordinated Debentures		—			(3,500	)
Proceeds from Issuance of Preferred Stock		—			82,949
Proceeds from Employee Stock Plan Purchases		57			—
Purchase of Treasury Stock		(582	)		—
Dividends Paid to Shareholders-Common Stock		(1,687	)		(2,472	)
Net Cash (Used) Provided By Financing Activities		(2,212	)		76,977
Net (Decrease) Increase in Cash		(1,971	)		8,636
Cash at Beginning of Period		28,813			20,177
Cash at End of Period	$	26,842		$	28,813