[November 13, 2012]

Security Federal Corporation Announces Cash Dividend

Security Federal Corporation, parent company of Security Federal Bank, announced that a quarterly dividend of $ .08 per share will be paid on or about December 15, 2012 to shareholders of record as of November 30, 2012.

This is the eighty eighth consecutive quarterly dividend to shareholders since the Bank's conversion in October of 1987 from a mutual o a stock form of ownership. The dividend was declared as a result of the Bank's continued profitability.

Security Federal Bank has thirteen full service branch locations in Aiken, Clearwater, Graniteville, Langley, Lexington, North Augusta (News - Alert), Wagener, Columbia and West Columbia, South Carolina and Evans, Georgia. A full range of financial services, including trust and investments, are provided by the Bank and insurance services are provided by the Bank's wholly owned subsidiary, Security Federal Insurance, Inc.

Security Federal Corporation common stock is traded on the Over-the-Counter Bulletin Board under the symbol SFDL.

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