SRNN Southern Banc Company Inc (PK)

The Southern Banc Company, Inc. (OTCBB: SRNN), the holding company for The Southern Bank Company, announced net income of $29,498, or $0.04 per basic and diluted share, for the quarter ended March 31, 2010, as compared to net loss of $66,348, or $(0.08) per basic and diluted share, for the quarter ended March 31, 2009. For the nine month period ended March 31, 2010, the company recorded net income of $69,209, or $0.09 per basic and diluted share, as compared to a net loss of $84,331, or $(0.11) per basic and diluted share, for the nine month period ended March 31, 2009.

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 2009. Net interest income for the nine month period ended March 31, 2010 was approximately $1.8 million as compared to approximately $1.6 for the nine month period ended March 31, 2009. The improvement in the net interest margin for the nine month period was primarily attributable to a decrease in total interest expense of approximately $612,000, or 32.4%, offset in part by a decrease in total interest income of approximately $398,000, or 11.4%. For the nine month period ended March 31, 2010, total non-interest income increased approximately $88,000, or 65.5% as compared to the nine month period ended March 31, 2009. The increase in non-interest income was primarily attributable to a net gain on sale of securities of approximately $97,000, offset in part by a decrease in customer service fees of approximately $38,000.

The Company’s total assets at March 31, 2010 were $89.6 million, as compared to $98.8 million at June 30, 2009. Total stockholders’ equity was approximately $15.9 million, or 17.7% of total assets, at March 31, 2010 as compared to approximately $15.5 million, or 15.7% of total assets, at June 30, 2009.

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.

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.

(Selected financial data attached)

   

THE SOUTHERN BANC COMPANY, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Dollar Amounts in Thousands)

  March 31, June 30, 2010 2009       ASSETS CASH AND CASH EQUIVALENTS $ 5,210 $ 8,971 SECURITIES AVAILABLE FOR SALE, at fair value 48,532 52,569 SECURITIES HELD TO MATURITY, at amortized cost,

fair value of $69 and $79, respectively

63 74 FEDERAL HOME LOAN BANK (FHLB) STOCK 338 338  

LOANS RECEIVABLE, net of allowance for loan losses of $259 and $219, respectively

33,800

35,416

PREMISES AND EQUIPMENT, net 871 907 ACCRUED INTEREST AND DIVIDENDS RECEIVABLE 359 449 PREPAID EXPENSES AND OTHER ASSETS 405 84     TOTAL ASSETS $ 89,578   $ 98,808       LIABILITIES   DEPOSITS $ 71,953 $ 79,702 FHLB ADVANCES 1,075 3,075 OTHER LIABILITIES 664 505     TOTAL LIABILITIES 73,692 83,282    

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 10,591 10,521 Treasury stock, at cost,

648,664 shares

(8,825 ) (8,825 ) Accumulated other comprehensive income 789   499  

TOTAL STOCKHOLDERS’ EQUITY

15,886   15,526  

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

89,578   $ 98,808        

THE SOUTHERN BANC COMPANY, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Dollar Amounts in Thousands, except per share data)

  Three Months Ended Nine Months Ended March 31, March 31,     2010 2009 2010 2009         INTEREST INCOME: Interest and fees on loans $ 507 $ 510 $ 1,541 $ 1,614 Interest and dividends on securities available for sale 505 572 1,560 1,878 Interest and dividends on securities held to maturity 1 1 4 5 Other interest income 1 2   6 13    

Total interest income

1,014 1,085

3,111

3,510

 

INTEREST EXPENSE:

Interest on deposits 363 538 1,228 1,823 Interest on borrowings 10 21   47 64   Total interest expense 373 559   1,275 1,887  

Net interest income before provision for loan losses

641

526

1,836

1,623

Provision for loan losses 42 38   47 51  

Net interest income after provision for loan losses

599

488

1,789

1,572

 

 

 

 

 

NON-INTEREST INCOME:

Fees and other non-interest income 33 48 111 149 Gain/(Loss) on sale of securities 0 (30 ) 96 (30 ) Miscellaneous income 7 6   14 15   Total non-interest income 40 24   221 134  

NON-INTEREST EXPENSE:

Salaries and employee benefits 338 356 1,066 1,089 Office building and equipment expenses 56 57 158 162 Professional Services Expense 30 45 101 138 Data Processing Expense 75 79 219 214 Other operating expense 93 81   355 238   Total non-interest expense 592 618   1,899 1,841   Income / (loss) before income taxes 47 (106 ) 111 (135 )  

PROVISION / (BENEFIT) FOR INCOME TAXES

18 (40 )

42

(51

)

Net Income / (Loss)

$

29

$

(66 )

$

69

$

(84 )  

EARNINGS / (LOSS) PER SHARE:

Basic

$

0.04

$

(0.08

)

$

0.09

$

(0.11

)

Diluted $ 0.04 $ (0.08 ) $ 0.09 $ (0.11 )

DIVIDENDS DECLARED PER SHARE

$

0.0000

$

0.0875

 

$

 

0.0000

 

$

 

0.2625

  AVERAGE SHARES OUTSTANDING: Basic 780,318 780,318 780,318 780,318 Diluted 780,396 780,347 780,397 780,390