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 $87,000, or $(0.11) per basic and diluted share, for the quarter ended September 30, 2013, as compared to a net loss of approximately $41,000, or $(0.05) per basic and diluted share, for the quarter ended September 30, 2012.

Gates Little, President and Chief Executive Officer of the Company stated that the Company’s net interest income decreased approximately $39,000 or (6.7%) during the three month period ended September 30, 2013 as compared to the same period in 2012. The decrease in the net interest income for the three month period was primarily attributable to a decrease in interest and dividends on securities in the amount of approximately $54,000 and a decrease in interest and fees on loans of approximately $32,000 offset in part by a decrease in interest paid on deposits and borrowings of approximately $42,000 and $6,000, respectively. For the three month period ended September 30, 2013, total non-interest income decreased approximately $13,000, or 10.4%, while total non-interest expense increased approximately $66,000, or 9.0%, as compared to the same three month period in 2012. The decrease in non-interest income was primarily attributable to decreases in net gains on sale of securities and customer service fees. The increase in non-interest expense was primarily attributable to an increase in salaries and employee benefits relating to staff increases and an increase in professional service expenses.

The Company’s total assets at September 30, 2013 were approximately $95.5 million, as compared to $95.6 million at June 30, 2013. Total stockholders’ equity was approximately $14.7 million, or approximately 15.4% of total assets, at September 30, 2013 as compared to approximately $14.9 million, or approximately 15.6% of total assets, at June 30, 2013.

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, 2013 2013       ASSETS   CASH AND CASH EQUIVALENTS

 

$

3,299

 

$

4,049

SECURITIES AVAILABLE FOR SALE, at fair value

60,871 62,435

SECURITIES HELD TO MATURITY, at amortized cost, fair value of $10 and $14, respectively

9 13 FEDERAL HOME LOAN BANK (FHLB) STOCK 544 454  

LOANS AND LEASES RECEIVABLE, net of allowance for loan losses of $365 and $365, respectively

28,114 25,823 PREMISES AND EQUIPMENT, net 851 811 ACCRUED INTEREST AND DIVIDENDS RECEIVABLE 314 335 PREPAID EXPENSES AND OTHER ASSETS 1,461 1,685     TOTAL ASSETS

 

$

95,463

 

 

$

95,605

      LIABILITIES   DEPOSITS

 

$

72,129

 

$

73,158

FHLB ADVANCES 8,313 7,313 OTHER LIABILITIES 309 212     TOTAL LIABILITIES 80,751 80,683     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, 32,643 and 25,768 shares, respectively

(640 ) (571 ) Retained earnings 10,113 10,200

Treasury stock, at cost, 648,664 shares

(8,825 ) (8,825 ) Accumulated other comprehensive (loss)   162     216  

TOTAL STOCKHOLDERS’ EQUITY

  14,712     14,922  

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 

$

95,463

 

 

$

95,605

      THE SOUTHERN BANC COMPANY, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Dollar Amounts in Thousands, except per share data)         Three Months Ended September 30,     2013 2012     INTEREST INCOME: Interest and fees on loans

 

$

377

 

$

409

Interest and dividends on securities 366 421 Other interest income   4     5    

Total interest income

747 835  

INTEREST EXPENSE:

Interest on deposits 184 226 Interest on borrowings   21     28   Total interest expense   205     254  

Net interest income before provision for loan losses

542 581 Provision for loan losses   0     45  

Net interest income after provision for loan losses

542 536  

NON-INTEREST INCOME:

Fees and other non-interest income 25 28 Gain on sale of securities 0 42

Miscellaneous income

  86     54   Total non-interest income   111     124    

NON-INTEREST EXPENSE:

Salaries and employee benefits 451 417 Office building and equipment expenses 52 58 Professional services expense 93 64 Data processing expense 92 79 Other operating expense   103     107   Total non-interest expense   791     725   Income / (loss) before income taxes (138 ) (65 )  

PROVISION / (BENEFIT) FOR INCOME TAXES

  (51 )   (24 )  

Net Income / (Loss)

 

$

(87

)

 

$

(41

)

  EARNINGS / (LOSS) PER SHARE: Basic $ (0.11 ) $ (0.05 ) Diluted

 

$

(0.11

)

 

$

(0.05

)

 

DIVIDENDS DECLARED PER SHARE

 

$

---

 

$

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

The Southern Banc Company, Inc.Gates Little, 256-543-3860