SRNN Southern Banc Company Inc (PK)

The Southern Banc Company, Inc. (OTCBB: SRNN), the holding company for The Southern Bank Company announced a net loss of approximately $139,000, or $(0.18) per basic and diluted share, for the quarter ended December 31, 2012, as compared to a net loss of approximately $16,000, or $(0.02) per basic and diluted share, for the quarter ended December 31, 2011. For the six month period ended December 31, 2012, the company recorded a net loss of approximately $181,000, or $(0.23) per basic and diluted share, as compared to a net loss of approximately $32,000, or $(0.04) per basic and diluted share, for the six month period ended December 31, 2011.

Gates Little, President and Chief Executive Officer of the Company stated that the Company’s net interest income decreased approximately $99,000, or (16.6%) during the three month period ended December 31, 2012 as compared to the same period in 2011. Net interest income for the six month period ended December 31, 2012 was approximately $1.1 million and approximately $1.2 million for the six month period in 2011. The decrease in the net interest margin for the six month period was primarily attributable to a decrease in total interest income of approximately $98,000, or (5.8%), and an increase in total interest expense of approximately $16,000, or 3.28%. For the six month period ended December 31, 2012, total non-interest income increased approximately $17,000, or 8.5%, while total non-interest expense increased approximately $115,000, or 8.1%, as compared to the same six month period in 2011. The increase in non-interest income was primarily attributable to increases in fee income attributable to the bank’s factoring operation and customer service fees offset by a decrease in the gain on the sale of securities available for sale. The increase in non-interest expense was primarily attributable to an increase in salaries and employee benefits relating to staff increases and data processing expenses, offset in part by a decrease in professional service expense.

The Company’s total assets at December 31, 2012 were approximately $103.4 million, as compared to $111.3 million at June 30, 2012. Total stockholders’ equity was approximately $16.2 million, or approximately 15.6% of total assets, at December 31, 2012 as compared to approximately $16.3 million, or approximately 14.6% of total assets, at June 30, 2012.

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)

  December 31, June 30, 2012 2012     ASSETS CASH AND CASH EQUIVALENTS $ 3,099 $ 3,689 SECURITIES AVAILABLE FOR SALE, at fair value 69,804 77,470

SECURITIES HELD TO MATURITY, at amortized cost, fair value of $22 and $30, respectively

20 28 FEDERAL HOME LOAN BANK (FHLB) STOCK 662 985  

LOANS AND LEASES RECEIVABLE, net of allowance for loan losses of $309 and $247, respectively

27,467 27,242 PREMISES AND EQUIPMENT, net 800 812 ACCRUED INTEREST AND DIVIDENDS RECEIVABLE 377 416 PREPAID EXPENSES AND OTHER ASSETS 1,211   702     TOTAL ASSETS $ 103,440   $ 111,344       LIABILITIES DEPOSITS $ 76,052 $ 76,769 FHLB ADVANCES 10,313 17,626 OTHER LIABILITIES 920   693     TOTAL LIABILITIES 87,285 95,088     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 10,322 10,502

Treasury stock, at cost, 648,664 shares

(8,825 ) (8,825 ) Accumulated other comprehensive (loss) 1,327   1,248  

TOTAL STOCKHOLDERS’ EQUITY

16,155   16,256  

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

103,440   $ 111,344      

THE SOUTHERN BANC COMPANY, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Dollar Amounts in Thousands, except per share data)

  Three Months Ended Six Months Ended December 31, December 31,   2012 2011 2012 2011   INTEREST INCOME: Interest and fees on loans $ 393 $ 414 $ 802 $ 814 Interest and dividends on securities 334 417 754 847 Other interest income 7   4   12   6  

Total interest income

734 835

1,568

1,667

INTEREST EXPENSE:

Interest on deposits 217 219 443 434 Interest on borrowings 23   23   50   44   Total interest expense 240   242   493   478  

Net interest income before provision for loan losses

494 593

1,075

1,189

Provision for loan losses 0   5   44   9  

Net interest income after provision for loan losses

494 588

1,031

1,180

NON-INTEREST INCOME:

Fees and other non-interest income 28 18 56 35 Gain on sale of securities 0 66 41 128 Miscellaneous income 64   27   119   36   Total non-interest income 92   111   216   199  

NON-INTEREST EXPENSE:

Salaries and employee benefits 475 450 892 831 Office building and equipment expenses 51 49 109 103 Professional Services Expense 85 56 150 157 Data Processing Expense 80 66 159 149 Other operating expense 116   97   223   178   Total non-interest expense 807   718   1,533   1,418   Income / (loss) before income taxes (221 ) (19 ) (286 ) (39 )

PROVISION / (BENEFIT) FOR INCOME TAXES

(82 ) (3 ) (106 ) (7 )

Net Income / (Loss)

$

(139 )

$

(16 )

$

(181 )

$

(32 ) EARNINGS / (LOSS) PER SHARE: Basic $ (0.18 ) $ (0.02 ) $ (0.23 ) $ (0.04 ) Diluted $ (0.18 ) $ (0.02 ) $ (0.23 ) $ (0.04 )

DIVIDENDS DECLARED PER SHARE

$

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$

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$

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$

---   AVERAGE SHARES OUTSTANDING: Basic 780,318 780,318 780,318 780,318 Diluted 780,318 780,318 780,318 780,318