<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 5, 1996
SECURITY FEDERAL BANCORP, INC.
________________________________________________
(Exact name of registrant as specified in its charter)
Delaware 0-25728 63-1134627
- ---------------------------- ----------- ----------------
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
2301 University Boulevard, Tuscaloosa, Alabama 35401
______________________________________________ ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (205) 345-8800
---------------
Not Applicable
____________________________________________________
(Former name or former address, if changed since last report)
<PAGE>
Item 5. Other Events.
Security Federal Bancorp, Inc. announced that its Board of Directors
intends to declare a one-time cash distribution to the holders of the Company's
common stock, upon receipt of confirmation that substantially all of the
distribution would qualify as a non-taxable return of capital to stockholders
and that the distribution would not have a significant adverse effect on the
Company's tax-qualified employee benefit plans. Subject to prior receipt of a
satisfactory private letter ruling from the Internal Revenue Service, the
Company presently intends to pay to its stockholders a distribution in the
amount of $3.00 per share in the third quarter of 1996, or in the early part of
the fourth quarter, depending upon when the private letter ruling is received.
The Company's press release is filed with this report as Exhibit 99.1 and
incorporated into this report by reference.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
Exhibit 99.1 Press Release dated August 5, 1996
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
SECURITY FEDERAL BANCORP, INC.
By: /s/ John F. Harvard
---------------------------------------
John F. Harvard
President
Date: August 6, 1996
<PAGE>
PRESS RELEASE
FOR IMMEDIATE RELEASE
---------------------
For More Information Contact:
John F. Harvard, President
(205) 345-8800
SECURITY FEDERAL BANCORP, INC.
ANNOUNCES INTENTION TO PAY SPECIAL CASH DISTRIBUTION
Tuscaloosa, Alabama ... Security Federal Bancorp, Inc. announced today
that its Board of Directors intends to declare a one-time cash distribution to
the holders of the Company's common stock, upon receipt of confirmation that
substantially all of the distribution would qualify as a non-taxable return of
capital to stockholders and that the distribution would not have a significant
adverse effect on the Company's tax-qualified employee benefit plans.
The timing and amount of any distribution would be subject to the
receipt of a private letter ruling from the Internal Revenue Service. The
Company has filed a private letter ruling request with the IRS regarding the tax
effects of the distribution. The amount of the distribution which may be treated
as a return of capital or as an ordinary taxable dividend would depend upon the
results of the private letter ruling request and the Company's unconsolidated
earnings and profits. The portion of the distribution which may be treated as a
return of capital would be viewed as a reduction in the cost basis of each share
and would not be subject to income tax as a dividend to stockholders. Subject to
prior receipt of a satisfactory private letter ruling, the Company presently
intends to pay to its stockholders a distribution in the amount of $3.00 per
share in the 3rd quarter of 1996, or in the early part of the 4th quarter
depending upon when the private letter ruling is received.
John F. Harvard, President and Chief Operating Officer, stated that
"The Board believes that this distribution represents a wise use of the
Company's excess capital that will benefit all of our stockholders."
Security Federal Bancorp, Inc. is the holding company for Security
Federal Bank, which conducts business through its main office located in
Tuscaloosa, Alabama. At March 31, 1996, the Company had total assets of $72.5
million and stockholders' equity of $10.7 million or 14.7% of total assets.
