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 $16,000, or $(0.02) per basic and diluted share, for the quarter ended December 31, 2011, as compared to a net loss of approximately $50,000, or $(0.06) per basic and diluted share, for the quarter ended December 31, 2010. For the six month period ended December 31, 2011, the company recorded a net loss of approximately $32,000, or $(0.04) per basic and diluted share, as compared to a net income of approximately $36,000, or $0.05 per basic and diluted share, for the six month period ended December 31, 2010.

Gates Little, President and Chief Executive Officer of the Company stated that the Company’s net interest income increased approximately $27,000, or 4.8% during the three month period ended December 31, 2011 as compared to the same period in 2010. Net interest income for the six month period ended December 31, 2011 was approximately $1.2 million and approximately $1.1 million for the six month period in 2010. The increase in the net interest margin for the six month period was primarily attributable to a decrease in total interest income of approximately $78,000, or (4.5%), offset in part by a decrease in total interest expense of approximately $119,000, or 19.9%. For the six month period ended December 31, 2011, total non-interest income decreased approximately $1,000, or approximately (0.6%), while total non-interest expense increased approximately $128,000, or 9.9%, as compared to the same six month period in 2010. The decrease in non-interest income was primarily attributable to decreases in the gain on the sale of securities available for sale of approximately $14,000 and customer service fees of approximately $15,000 offset in part by an increase in income of approximately $27,000 primarily relating to the bank’s factoring operation. The increase in non-interest expense was primarily attributable to an increase in salaries and employee benefits relating to staff increases, offset in part by a decrease in data processing expenses relating to the change of the bank’s core processor.

The Company’s total assets at December 31, 2011 were approximately $101.3 million, as compared to $95.4 million at June 30, 2011. Total stockholders’ equity was approximately $16.0 million, or approximately 15.8% of total assets, at December 31, 2011 as compared to approximately $15.9 million, or approximately 16.6% of total assets, at June 30, 2011.

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, 2011 2011       ASSETS CASH AND CASH EQUIVALENTS $ 3,765 $ 4,501 SECURITIES AVAILABLE FOR SALE, at fair value 67,761 60,567

SECURITIES HELD TO MATURITY, at amortized cost, fair value of $36 and $40, respectively

32 37 FEDERAL HOME LOAN BANK (FHLB) STOCK 644 665  

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

27,332 27,974 PREMISES AND EQUIPMENT, net 845 879 ACCRUED INTEREST AND DIVIDENDS RECEIVABLE 430 412 PREPAID EXPENSES AND OTHER ASSETS 496 402     TOTAL ASSETS $ 101,305   $ 95,437       LIABILITIES DEPOSITS $ 73,921 $ 70,313 FHLB ADVANCES 10,626 8,626 OTHER LIABILITIES 747 635     TOTAL LIABILITIES 85,294 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 10,466 10,498

Treasury stock, at cost, 648,664 shares

(8,825 ) (8,825 ) Accumulated other comprehensive (loss) 1,039   859  

TOTAL STOCKHOLDERS’ EQUITY

16,011   15,863  

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

101,305   $ 95,437         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,   2011 2010 2011 2010         INTEREST INCOME: Interest and fees on loans $ 414 $ 454 $ 814 $ 933 Interest and dividends on securities 417 399 847 808 Other interest income 4   2   6   3  

Total interest income

835 855

1,667

1,744

 

INTEREST EXPENSE:

Interest on deposits 219 266 434 564 Interest on borrowings 23   23   44   32 Total interest expense 242   289   478   596

Net interest income before provision for loan losses

593 566

1,189

1,148

Provision for loan losses 5   0   9   0

Net interest income after provision for loan losses

588 566

1,180

1,148

 

NON-INTEREST INCOME:

Fees and other non-interest income 18 28 35 50 Gain on sale of securities 66 0 128 142 Miscellaneous income 27   4   36   8 Total non-interest income 111   32   199   200  

NON-INTEREST EXPENSE:

Salaries and employee benefits 450 374 831 691 Office building and equipment expenses 49 52 103 98 Professional Services Expense 56 54 157 130 Data Processing Expense 66 109 149 204 Other operating expense 97   89   178   167 Total non-interest expense 718   678   1,418   1,290 Income / (loss) before income taxes (19 ) (80 ) (39 ) 58  

PROVISION / (BENEFIT) FOR INCOME TAXES

(3 ) (30 ) (7 ) 22  

Net Income / (Loss)

$

(16 )

$

(50 )

$

(32 )

$

36  

EARNINGS / (LOSS) PER SHARE:

Basic

$

(0.02

)

$

(0.06

)

$

(0.04

)

$

0.05

Diluted $ (0.02 ) $ (0.06 ) $ (0.04 ) $ 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 780,318 780,396 780,318 780,396