SRNN Southern Banc Company Inc (PK)

The Southern Banc Company, Inc. (OTCBB: SRNN), the holding company for The Southern Bank Company, formerly First Federal Savings and Loan Association of Gadsden, Alabama, announced a net loss of approximately $16,000, or $0.02 per basic and diluted share, for the quarter ended September 30, 2011, as compared to net income of approximately $86,000, or $0.11 per basic and diluted share, for the quarter ended September 30, 2010.

Gates Little, President and Chief Executive Officer of the Company stated that the Company’s net interest margins improved during the quarter as compared to the same period in 2010. Net interest income for the quarter ended September 30, 2011 was approximately $596,000 as compared to approximately $582,000 for the quarter ended September 30, 2010. The improvement in the net interest margin for the quarter was primarily attributable to a decrease in total interest expense of approximately $73,000 offset in part by a decrease in total interest income of approximately $41,000. For the quarter ended September 30, 2011, total non-interest income decreased approximately $80,000 or 47.4% while total non-interest expense increased approximately $88,000 or 14.4% as compared to the same three month period in 2010. The decrease in non-interest income was primarily attributable to a decrease in net gain on sale of securities available for sale of approximately $80,000. The increase in non-interest expense was primarily attributable to an increase in salaries and employee benefits of approximately $64,000..

The Company’s total assets at September 30, 2011 were $96.8 million, as compared to $95.4 million at June 30, 2011. Total stockholders’ equity was approximately $16.0 million at September 30, 2011 or 16.5% of total assets as compared to approximately $15.9 million at June 30, 2011 or approximately 16.6% of total assets.

The Bank has four offices located in Gadsden, Albertville, Guntersville, and Centre, Alabama. The stock of The Southern Banc Company, Inc. is listed on the OTC Bulletin Board under the symbol “SRNN.”

Certain statements in this release contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which statements can generally be identified by the use of forward-looking terminology, such as “may,” “will,” “expect,” “estimate,” “anticipate,” “believe,” “target,” “plan,” “project,” “continue,” or the negatives thereof, or other variations thereon or similar terminology, and are made on the basis of management’s plans and current analyses of the Company, its business and the industry as a whole. These forward-looking statements are subject to risks and uncertainties, including, but not limited to, economic conditions, competition, interest rate sensitivity and exposure to regulatory and legislative changes. The above factors, in some cases, have affected, and in the future could affect the Company’s financial performance and could cause actual results to differ materially from those expressed or implied in such forward-looking statements, even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.

           

THE SOUTHERN BANC COMPANY, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Dollar Amounts in Thousands)

      September 30,   June 30, 2011 2011   ASSETS CASH AND CASH EQUIVALENTS $ 8,227 $ 4,501 SECURITIES AVAILABLE FOR SALE, at fair value 58,736 60,567

SECURITIES HELD TO MATURITY, at amortized cost, fair value of $35 and $41, respectively

35 37 FEDERAL HOME LOAN BANK (FHLB) STOCK 655 665  

LOANS RECEIVABLE, net of allowance for loan losses of $242 and $250, respectively

27,434 27,974 PREMISES AND EQUIPMENT, net 862 879 ACCRUED INTEREST AND DIVIDENDS RECEIVABLE 405 411 PREPAID EXPENSES AND OTHER ASSETS 417 402     TOTAL ASSETS $ 96,770   $ 95,437       LIABILITIES DEPOSITS $ 69,394 $ 70,313 FHLB ADVANCES 10,626 8,626 OTHER LIABILITIES 752 635     TOTAL LIABILITIES 80,772 79,574     STOCKHOLDERS' EQUITY:

Preferred stock, par value $.01 per share 500,000 shares authorized, shares issued and outstanding -- none

0 0

Common stock, par value $.01 per share, 3,500,000 authorized, 1,454,750 shares issued

15 15 Additional paid-in capital 13,887 13,887

Shares held in trust, at cost, 25,768 shares

(571 ) (571 ) Retained earnings 10,483 10,499

Treasury stock, at cost, 648,664 shares

(8,825 ) (8,825 ) Accumulated other comprehensive (loss) 1,011   859  

TOTAL STOCKHOLDERS’ EQUITY

15,998   15,863  

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

96,770   $ 95,437                

THE SOUTHERN BANC COMPANY, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Dollar Amounts in Thousands, except per share data)

      Three Months Ended September 30,   2011 2010 (Unaudited) (Unaudited) INTEREST INCOME: Interest and fees on loans $ 400 $ 479 Interest and dividends on securities 429 409 Other interest income 2   1

Total interest income

831 889

INTEREST EXPENSE:

Interest on deposits 214 299 Interest on borrowings 21   8 Total interest expense 235   307

Net interest income before provision for loan losses

596 582 Provision for loan losses 4   0

Net interest income after provision for loan losses

592 582

NON-INTEREST INCOME:

Fees and other non-interest income 17 22 Net gain on sale of securities 62 142 Miscellaneous income 9   4 Total non-interest income 88   168  

NON-INTEREST EXPENSE:

Salaries and employee benefits 382 318 Office building and equipment expenses 54 45 Professional Services Expense 101 76 Data Processing Expense 83 95 Other operating expense 81   78 Total non-interest expense 700   612 Loss before income tax benefit (20 ) 138

PROVISION FOR INCOME TAX (BENEFIT)

(4 ) 52

Net Income (Loss)

$

(16 )

$

86   EARNINGS PER SHARE: Basic $ (0.02 ) $ 0.11 Diluted $ (0.02 ) $ 0.11

DIVIDENDS DECLARED PER SHARE

$

0.0000

$

0.0000   AVERAGE SHARES OUTSTANDING: Basic 780,318 780,318 Diluted 780,318 780,398