SRNN Southern Banc Company Inc (PK)

Gates Little, President and Chief Executive Officer of The Southern Banc Company, Inc. (OTCBB: SRNN), the holding company for The Southern Bank Company announced preliminary unaudited results (subject to audit adjustments following the year-end audit) of operations for the fourth quarter and year ended June 30, 2014:

• For the three months ended June 30, 2014, the Company reported net income of approximately $700, or $0.00 per basic and diluted share as compared to a net loss of approximately $91,000, or $(0.12) per basic and diluted share, for the three months ended June 30, 2013.
• For the fiscal year ended June 30, 2014, the Company recorded a net loss of approximately $265,000, or $(0.34) per basic and diluted share, as compared to a net loss of approximately $302,000, or $(0.39) per basic and diluted share, for the fiscal year ended June 30, 2013.
• For the three months ended June 30, 2014 net interest income increased approximately $107,000, or 23.4% 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 $93,000 offset by a decrease in interest and dividends on securities of approximately $22,000 and further offset by decreases in interest paid on deposits and borrowings of approximately $35,000 and $1,000, respectively.
• For the fiscal year ended June 30, 2014 net interest income increased approximately $242,000, or 11.9% as compared to fiscal year 2013. The increase in the net interest margin for the fiscal year was primarily attributable to a decrease in interest paid on deposits and borrowings of approximately $164,000, or (19.0%) and $15,000, or (16.7%), respectively, offset by an increase in total interest income of approximately $55,000, or 1.9%.
• For the three months ended June 30, 2014 total non-interest expenses increased approximately $45,000, or 5.5%, as compared to the same three month period in 2013. The increase in non-interest expense for the three month period was primarily attributable to increases in professional service expense, net loss on sale of securities available for sale, salaries and employee benefits expense offset in part by a decrease in other operating expenses of approximately $99,000.
• For the fiscal year ended June 30, 2014, total non-interest expenses increased approximately $243,000, or 7.9%, as compared to fiscal year 2013. The increase in non-interest expense for the fiscal year was primarily attributable to increases in professional service expense and salaries and employee benefits expense. The increase was offset in part by a decrease in insurance expense and other miscellaneous operating expenses of approximately $100,000.

The Company’s total assets at June 30, 2014 were approximately $94.3 million, as compared to $95.6 million at June 30, 2013. Total stockholders’ equity was approximately $14.7 million, or 15.6% of assets and $14.9 million, or 15.6% of assets at June 30, 2014 and 2013, respectively.

The unaudited financial information at or for the three and 12 months ended June 30, 2014 and 2013, has been prepared on the same basis as our audited financial information and includes, in the opinion of management, all adjustments necessary to present the data for such periods. The Company currently expects to release its final year end results and make available its related audited financial statements in October 2014 following completion of the year end audit. Historical results are not necessarily indicative of future results.

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.

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Dollar Amounts in Thousands)

  June 30, June 30, 2014 2013 (Unaudited)     ASSETS CASH AND CASH EQUIVALENTS $ 3,777 $ 4,049 SECURITIES AVAILABLE FOR SALE, at fair value 53,525 62,435

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

5 13 FEDERAL HOME LOAN BANK (FHLB) STOCK 407 454  

LOANS AND LEASES RECEIVABLE, net of allowance for loan losses of $272 and $265, respectively

33,715 25,823 PREMISES AND EQUIPMENT, net 828 811 ACCRUED INTEREST AND DIVIDENDS RECEIVABLE 291 335 PREPAID EXPENSES AND OTHER ASSETS 1,709 1,685     TOTAL ASSETS $ 94,257   $ 95,605       LIABILITIES DEPOSITS $ 72,058 $ 73,158 FHLB ADVANCES 7,156 7,313 OTHER LIABILITIES 339 212     TOTAL LIABILITIES 79,553 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 9,934 10,200

Treasury stock, at cost, 648,664 shares

(8,825 ) (8,825 ) Accumulated other comprehensive income 333   216  

TOTAL STOCKHOLDERS’ EQUITY

14,704   14,922  

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

94,257   $ 95,605            

THE SOUTHERN BANC COMPANY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Dollar Amounts in Thousands, except per share data)

  Three Months Ended Year Ended June 30, June 30,         2014

(Unaudited)

2013 2014

(Unaudited)

2013 INTEREST INCOME: Interest and fees on loans $ 402 $ 309 $ 1,582 $ 1,477 Interest and dividends on securities 339 361 1,419 1,469 Other interest income 4   3   20   20  

Total interest income

745 673

3,021

2,966

INTEREST EXPENSE:

Interest on deposits 156 197 677 842 Interest on borrowings 17   19   75   89   Total interest expense 173   216   752   931  

Net interest income before provision for loan losses

572 457

2,269

2,035

Provision for loan losses 0   0   0   36  

Net interest income after provision for loan losses

572 457

2,269

1,999

NON-INTEREST INCOME:

Fees and other non-interest income 23 85 110 165 Gain on sale of securities, net 177 0 161 94 Miscellaneous income 93   69   348   309   Total non-interest income 293   154   619   568  

NON-INTEREST EXPENSE:

Salaries and employee benefits 464 445 1,990 1,751 Office building and equipment expenses 61 53 228 216 Professional Services Expense 140 98 378 324 Data Processing Expense 94 88 373 334 Other operating expense 120   112   360   460   Total non-interest expense 879   796   3,329   3,085   Loss before income taxes

(14

)

(185 ) (441 ) (518 )

BENEFIT FOR INCOME TAXES

(14 ) (94 ) (176 ) (216 )

Net Loss

$

(0 )

$

(91 )

$

(265 )

$

(302

)

LOSS PER SHARE: Basic $ (0.00 ) $ (0.12 ) $ (0.34 ) $ (0.39 ) Diluted $ (0.00 ) $ (0.12 ) $ (0.34 ) $ (0.39 )

DIVIDENDS DECLARED PER SHARE

$

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$

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$

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$

---   AVERAGE SHARES OUTSTANDING: Basic 773,443 780,318 774,912 780,318 Diluted 773,443 780,318 774,912 780,318

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