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 $50,000, or $(0.06) per basic and diluted share, for the quarter ended December 31, 2010, as compared to a net loss of approximately $30,000, or $(0.04) per basic and diluted share, for the quarter ended December 31, 2009. For the six month period ended December 31, 2010, the company recorded net income of approximately $36,000, or $0.05 per basic and diluted share, as compared to a net income of approximately $40,000, or $0.05 per basic and diluted share, for the six month period ended December 31, 2009.

Gates Little, President and Chief Executive Officer of the Company stated that the Company’s net interest income decreased approximately $66,000, or 10.42% during the three month period ended December 31, 2010 as compared to the same period in 2009. Net interest income for the six month periods ended December 31, 2010 and 2009 were approximately $1.2 million. The decrease in the net interest margin for the six month period was primarily attributable to a decrease in total interest income of approximately $353,000, or 16.83%, offset in part by a decrease in total interest expense of approximately $305,000, or 33.85%. For the six month period ended December 31, 2010, total non-interest income increased approximately $18,000, or approximately 9.92%, while total non-interest expense decreased approximately $18,000, or 1.40%, as compared to the same six month period in 2009. The increase in non-interest income was primarily attributable to a gain on the sale of securities available for sale of approximately $45,000 offset in part by a decrease in customer service fees of approximately $29,000. During the six month period ended December 31, 2010 the total decrease in non-interest expense was primarily attributable to decreases in FDIC insurance premiums and employee compensation expenses, offset in part by increases in data processing expenses relating to the core application conversion and other professional services relating to the implementation of a new loan product offering.

The Company’s total assets at December 31, 2010 were approximately $97.4 million, as compared to $87.5 million at June 30, 2010. Total stockholders’ equity was approximately $15.8 million, or approximately 16.22% of total assets, at December 31, 2010 as compared to approximately $16.2 million, or approximately 18.48% of total assets, at June 30, 2010.

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, 2010 2010       ASSETS CASH AND CASH EQUIVALENTS $ 8,174 $ 6,061 SECURITIES AVAILABLE FOR SALE, at fair value 56,919 46,869

SECURITIES HELD TO MATURITY, at amortized cost, fair value of $45 and $65, respectively

41 60 FEDERAL HOME LOAN BANK (FHLB) STOCK 733 338  

LOANS AND LEASES RECEIVABLE, net of allowance for loan losses of $252 and $253, respectively

29,877 32,563 PREMISES AND EQUIPMENT, net 899 874 ACCRUED INTEREST AND DIVIDENDS RECEIVABLE 403 352 PREPAID EXPENSES AND OTHER ASSETS 351 353     TOTAL ASSETS $ 97,398   $ 87,470       LIABILITIES DEPOSITS $ 71,330 $ 69,408 FHLB ADVANCES 9,701 1,075 OTHER LIABILITIES 573 821     TOTAL LIABILITIES 81,604 71,304     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 10,625 10,590

Treasury stock, at cost, 648,664 shares

(8,825 ) (8,825 ) Accumulated other comprehensive (loss) 662   1,070  

TOTAL STOCKHOLDERS’ EQUITY

15,793   16,166  

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

97,398   $ 87,470                

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,         2010 2009 2010 2009         INTEREST INCOME: Interest and fees on loans $ 454 $ 517 $ 933 $ 1,035 Interest and dividends on securities available for sale 399 537 808 1,055 Interest and dividends on securities held to maturity 0 1 0 2 Other interest income 2   2   3 4

Total interest income

855 1,057

1,744

2,096

INTEREST EXPENSE:

Interest on deposits 266 409 564 865 Interest on borrowings 23   16   32 36 Total interest expense 289   425   596 901

Net interest income before provision for loan losses

566 632 1,148 1,195 Provision for loan losses 0   0   0 6

Net interest income after provision for loan losses

566 632 1,148 1,189

NON-INTEREST INCOME:

Fees and other non-interest income 28 43 50 79 Gain on sale of securities 0 0 142 97 Miscellaneous income 4   4   8 7 Total non-interest income 32   47   200 183

NON-INTEREST EXPENSE:

Salaries and employee benefits 374 384 691 728 Office building and equipment expenses 52 49 98 103 Professional Services Expense 54 35 130 71 Data Processing Expense 109 75 204 144 Other operating expense 89   184   167 262 Total non-interest expense 678   727   1,290 1,308 Income / (loss) before income taxes (80 ) (48 ) 58 64

PROVISION / (BENEFIT) FOR INCOME TAXES

(30 ) (18 ) 22 24

Net Income / (Loss)

$

(50 )

$

(30 )

$

36

$

40 EARNINGS / (LOSS) PER SHARE: Basic $ (0.06 ) $ (0.04 ) $ 0.05 $ 0.05 Diluted $ (0.06 ) $ (0.04 ) $ 0.05 $ 0.05

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 780,318 780,396 780,318 780,397