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 $84,000, or $(0.11) per basic and diluted share, for the quarter ended March 31, 2014, as compared to a net loss of approximately $31,000, or $(0.04) per basic and diluted share, for the quarter ended March 31, 2013. For the nine month period ended March 31, 2014, the company recorded a net loss of approximately $266,000, or $(0.34) per basic and diluted share, as compared to a net loss of approximately $211,000, or $(0.27) per basic and diluted share, for the nine month period ended March 31, 2013.

Gates Little, President and Chief Executive Officer of the Company stated that the Company’s net interest income increased approximately $79,000, or 15.8% during the three month period ended March 31, 2014 as compared to the same period in 2013. The increase in the net interest income for the three month period was primarily attributable to an increase in interest and fees on loans in the amount of approximately $37,000 offset by a decrease in interest paid on deposits and borrowings of approximately $41,000 and $3,000, respectively. Net interest income for the nine month period ended March 31, 2014 increased approximately $126,530, or 8.0% as compared to the same nine month period in 2013. The increase in the net interest margin for the nine month period was primarily attributable to a decrease in interest paid on deposits and borrowings of approximately $130,000, or (20.2%) and $13,000, or (18.6%), respectively, offset by decreases in total interest income of approximately $16,000, or (0.7%). For the nine month period ended March 31, 2013, total non-interest income decreased approximately $72,000, or (17.5%), and total non-interest expense increased approximately $192,000, or 8.4%, as compared to the same nine month period in 2013. The decrease in non-interest income was primarily attributable to decreases of gains on the sale of securities. 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 data processing expenses.

The Company’s total assets at March 31, 2014 were approximately $95.8 million, as compared to $95.6 million at June 30, 2013. Total stockholders’ equity was approximately $14.6 million, or approximately 15.0% of total assets, at March 31, 2014 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)

  March 31, June 30, 2014 2013       ASSETS   CASH AND CASH EQUIVALENTS $ 6,760 $ 4,049 SECURITIES AVAILABLE FOR SALE, at fair value 56,128 62,435

SECURITIES HELD TO MATURITY, at amortized cost, fair value of $6 and $14, respectively

6 13 FEDERAL HOME LOAN BANK (FHLB) STOCK 504 454  

LOANS AND LEASES RECEIVABLE, net of allowance for loan losses of $364 and $365, respectively

29,189 25,823 PREMISES AND EQUIPMENT, net 844 811 ACCRUED INTEREST AND DIVIDENDS RECEIVABLE 323 335 PREPAID EXPENSES AND OTHER ASSETS 2,001 1,685     TOTAL ASSETS $ 95,755   $ 95,605       LIABILITIES DEPOSITS $ 72,498 $ 73,158 FHLB ADVANCES 8,312 7,313 OTHER LIABILITIES 372 212     TOTAL LIABILITIES 81,182 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 9,935 10,200

Treasury stock, at cost, 648,664 shares

(8,825 ) (8,825 ) Accumulated other comprehensive (loss) 201   216  

TOTAL STOCKHOLDERS’ EQUITY

14,573   14,922  

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

95,755   $ 95,605            

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,         2014 2013 2014 2013         INTEREST INCOME:   Interest and fees on loans $ 404 $ 367 $ 1,180 $ 1,168 Interest and dividends on securities 349 353 1,079 1,108 Other interest income 6   4   17   17  

Total interest income

759 724

2,276

2,293

 

INTEREST EXPENSE:

Interest on deposits 160 201 514 644 Interest on borrowings 17   20   57   70   Total interest expense 177   221   571   714  

Net interest income before provision for loan losses

 

582 503

1,705

1,579

Provision for loan losses 0   6   0   51  

Net interest income after provision for loan losses

582 497

1,705

1,528

 

NON-INTEREST INCOME:

Fees and other non-interest income 21 24 70 80 Gain on sale of securities 0 53 0 94 Miscellaneous income 81   121   272   240   Total non-interest income 102   198   342   414    

NON-INTEREST EXPENSE:

Salaries and employee benefits 494 415 1,472 1,307 Office building and equipment expenses 59 54 167 163 Professional Services Expense 69 75 238 225 Data Processing Expense 94 88 279 247 Other operating expense 103   110   317   339   Total non-interest expense 819   742   2,473   2,281     Income / (loss) before income taxes

(135

)

(47 ) (426 ) (339 )  

PROVISION / (BENEFIT) FOR INCOME TAXES

(51 ) (16 ) (160 ) (128 )  

Net Income / (Loss)

$

(84 )

$

(31 )

$

(266 )

$

(211

)

 

EARNINGS / (LOSS) PER SHARE:

Basic

 

$

(0.11 )

$

(0.04 )

 

$

(0.34 )

 

$

(0.27 ) Diluted $ (0.11 ) $ (0.04 ) $ (0.34 ) $ (0.27 )

DIVIDENDS DECLARED PER SHARE

$

---

$

---

 

$

---

 

$

---   AVERAGE SHARES OUTSTANDING: Basic 773,443 780,318 773,443 780,318 Diluted 773,443 780,318 773,443 780,318

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