---
schema_version: "secwatch.filing_event.v1"
accession: "0001437749-25-001102"
form_type: "8-K"
ticker: "SFDL"
cik: "0000818677"
company_name: "SECURITY FEDERAL CORP"
filed_at: "2025-01-14T23:59:59+00:00"
generated_at: "2026-05-28T02:30:12.720377+00:00"
event_type: "other_material"
sentiment: "neutral"
materiality_score: 0.5
calibrated_materiality_score: 0.5
confidence: "high"
source: SEC EDGAR
---

# Security Federal gets option to buy back Treasury-held ECIP preferred stock at discount

## Summary
- Option to repurchase all 82,949 ECIP preferred shares during first 15 years from May 24, 2022 original closing.
- Purchase price based on present value formula; company expects substantial discount from face value.
- Exercise during first 10 years requires meeting one of three lending thresholds; company currently meets none.
- Earliest possible threshold satisfaction June 30, 2026; current dividend rate 2.0%.
- Company may designate a Mission Aligned Nonprofit Affiliate as purchaser under the option.

## SEC filing metadata
- accession: 0001437749-25-001102
- form_type: 8-K
- ticker: SFDL
- cik: 0000818677
- company_name: SECURITY FEDERAL CORP
- filed_at: 2025-01-14T23:59:59+00:00
- event_type: other_material
- sentiment: neutral
- materiality_score: 0.5
- calibrated_materiality_score: 0.5
- confidence: high
- sec_items: 1.01, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/818677/000143774925001102/0001437749-25-001102-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/818677/000143774925001102/sfdl20250113_8k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001437749-25-001102
- JSON: https://secwatch.observer/filing/0001437749-25-001102.json
- Plain text: https://secwatch.observer/filing/0001437749-25-001102.txt

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.