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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: DECEMBER 10, 1996
(Date of earliest event reported)
SECURITY FEDERAL BANCORP, INC.
(exact name as specified in certificate of incorporation)
DELAWARE
(State of Incorporation)
0-25728
(SEC File Number)
63-1134627
(Internal Revenue Service
Employer Identification Number)
2301 UNIVERSITY BOULEVARD, TUSCALOOSA, ALABAMA, 35401
(address of principal executive offices, including zip code)
(205) 345-8800
(telephone number, including area code)
NOT APPLICABLE
(former name or former address, if changed since last report)<PAGE>
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ITEM 5. OTHER EVENTS.
Security Federal Bancorp, Inc., Tuscaloosa, Alabama,
announced that its Board of Directors has declared a one-time
cash distribution in the amount of $3.00 per share to the holders
of the Company's common stock, payable December 27, 1996 to
stockholders of record on December 19, 1996, and that it is
expected that substantially all of the distribution will qualify
as a non-taxable return of capital to stockholders.
The Registrant'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 December 10, 1996
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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 as of
the date set forth below.
SECURITY FEDERAL BANCORP, INC.
By: /s/ John F. Harvard
--------------------------
John F. Havard
President
Date: December 11, 1996
PRESS RELEASE
F O R I M M E D I A T E R E L E A S E
For More Information Contact:
Marlin D. Moore, Jr., Chairman of the
Board and Chief Executive Officer
(205) 345-8800
SECURITY FEDERAL BANCORP, INC.
ANNOUNCES DECLARATION OF SPECIAL CASH DISTRIBUTION
December 10, 1996 -- Security Federal Bancorp, Inc.,
Tuscaloosa, Alabama, announced today that its Board of Directors
has declared a one-time cash distribution in the amount of $3.00
per share to the holders of the Company's common stock, payable
December 27, 1996 to stockholders of record on December 19, 1996,
and that it is expected that substantially all of the
distribution will qualify as a non-taxable return of capital to
stockholders.
The company has filed a request for a private letter ruling
from the Internal Revenue Service regarding the tax effects of
the distribution. While the company has not yet received the
requested ruling, based on conferences with the staff of the IRS,
it is expected that a ruling will be issued within the next few
days to the effect that the amount of the distribution
attributable to the company's unconsolidated earnings and profits
will be treated as a dividend generally taxable as ordinary
income but that the full remaining amount of the distribution may
be treated as a return of capital. The portion of the
distribution which may be treated as a return of capital will be
viewed as a reduction in the cost basis of each share and will
not be subject to income tax as a dividend to stockholders. The
company will announce the issuance of the requested ruling
promptly following receipt. It is anticipated that the company
will inform its stockholders regarding the portion of the
distribution attributable to the company's earnings and profits -
- - and therefore subject to taxation -- as soon as practical after
December 31, 1996.
Marlin D. Moore, Chairman of the Board and Chief Executive
Officer, stated that "The Board has determined that this special
cash distribution represents a wise use of the Company's excess
capital that will benefit all of our stockholders, and the Board
is pleased to declare and pay the distribution before the end of
the calendar year."
Security Federal Bancorp, Inc. is the holding company for
Security Federal Bank, which conducts business through its main
office at 2301 University Boulevard, Tuscaloosa, Alabama.
