Security Federal Corporation Announces Quarterly Earnings

Business Wire, July 23, 2004

AIKEN, S.C. -- Security Federal Corporation (OTCBB: SFDL), holding company of Security Federal Bank, announced earnings of $802,000 or $0.32 per share (basic) for the three months ending June 30, 2004 compared to $923,000 or $0.37 per share (basic) for the three months ending June 30, 2003. The quarter ending June 30th is the first quarter of the Company's fiscal year. The decrease in earnings is a result of a $520,000 decrease in the gain on sale of mortgage loans due to fewer mortgage loan originations. Mortgage loan originations decreased due to higher interest rates.

The decrease in gain on sale of mortgage loans was partially offset by an increase in net interest income of $222,000 or 6.9% for the three months ending June 30, 2004. General and administrative expenses increased $44,000 or 1.7%. Total assets at June 30, 2004 were $552.7 million compared to $528.0 million at March 31, 2004, an increase of 4.7%. Net loans receivable increased $4.5 million or 1.7% to $264.4 million at June 30, 2004 from March 31, 2004. Total deposits were $402.2 million at June 30, 2004 compared to $389.6 million at March 31, 2004, an increase of 3.2%. Federal Home Loan Bank advances and other borrowings increased $13.6 million or 13.4% to $115.4 million at June 30, 2004.

Security Federal Bank has eleven full service branch locations in Aiken, Clearwater, Graniteville, Langley, Lexington, North Augusta, Wagener, and West Columbia, South Carolina. Additional financial services are provided by three of the Bank's wholly owned subsidiaries, Security Federal Insurance, Inc., Security Federal Investments, Inc., and Security Federal Trust, Inc.