Capstone Bancshares, Inc. Agrees to Acquire Security Federal Bancorp, Inc

Business Wire, May 30, 2008

TUSCALOOSA, Ala. -- Capstone Bancshares, Inc. ("Capstone") today announced the signing of a definitive merger agreement to acquire Security Federal Bancorp, Inc. ("Security Federal") and its subsidiary Security Bank, Tuscaloosa, Alabama ("Security Bank"). The merger agreement is subject to closing conditions, including approval by bank regulatory agencies and shareholders of Security Federal, and the acquisition is expected to close in the fourth quarter of 2008.

Capstone is a newly formed bank holding company headquartered in Tuscaloosa, Alabama. Security Bank is a federal savings bank also headquartered in Tuscaloosa. The combined bank will have assets of $120 million.

J. Daniel Sizemore, Chairman and Chief Executive Officer of Capstone said, "We are excited to join with Security Bank to become one of the largest independent banks based in Tuscaloosa. This acquisition shows our strong commitment to Tuscaloosa. Security Bank has a great reputation, a great management team and desirable locations. It has built a strong customer base which we plan to expand on while adding new and innovative products and services."

Phil Maughan, President of Security Federal, said "We are proud to join with Capstone and become a part of its growth and success in Tuscaloosa. We look forward to serving the financial needs of customers in the Tuscaloosa market."

For additional information, please contact Bill Blackmon at Capstone Bancshares, Inc. at 205.469.2300.

This press release does or may use certain forward-looking statements about the business of Capstone and Security Bank including with regard to approval by bank regulatory agencies. Because forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ materially from those expressed or implied by the forward-looking statements. This press release is not a solicitation or offer to sell securities of Security Federal Bancorp, Inc. or Capstone Bancshares, Inc.