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 $29,825, or $(0.04) per basic and diluted share, for the quarter ended December 31, 2009, as compared to a net loss of $11,545, or $(0.01) per basic and diluted share, for the quarter ended December 31, 2008. For the six month period ended December 31, 2009, the company recorded net income of $39,713, or $0.05 per basic and diluted share, as compared to a net loss of $17,984, or $(0.02) per basic and diluted share, for the six month period ended December 31, 2008.

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 2008. Net interest income for the six month period ended December 31, 2009 was approximately $1.2 million as compared to approximately $1.1 million for the six month period ended December 31, 2008. The improvement in the net interest margin for the six month period was primarily attributable to a decrease in total interest expense of approximately $426,000, or approximately 32.07%, offset in part by a decrease in total interest income of approximately $327,000, or approximately 13.50%. For the six month period ended December 31, 2009, total non-interest income increased approximately $72,000, or approximately 65.98%, while total non-interest expense increased approximately $86,000, or approximately 7.01%, as compared to the same six month period in 2008. The increase in non-interest income was primarily attributable to a gain on the sale of securities available for sale of approximately $97,000 offset in part by a decrease in customer service fees of approximately $23,000. The increase in non-interest expense was primarily attributable to an increase in FDIC insurance premiums relating to the FDIC Special Assessment of approximately $54,000 and the accelerated payment of the fourth quarter Prepaid Assessment of approximately $21,000.

The Company’s total assets at December 31, 2009 were approximately $95.4 million, as compared to $98.8 million at June 30, 2009. Total stockholders’ equity was approximately $15.7 million, or approximately 16.46% of total assets, at December 31, 2009 as compared to approximately $15.5 million, or approximately 15.69% 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 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, 2009 2009       ASSETS   CASH AND CASH EQUIVALENTS $ 7,090 $ 8,971   SECURITIES AVAILABLE FOR SALE, at fair value 51,382 52,569

SECURITIES HELD TO MATURITY, at amortized cost, fair value of $73 and $80, respectively

67 74 FEDERAL HOME LOAN BANK (FHLB) STOCK 338 338  

LOANS AND LEASES RECEIVABLE, net of allowance for loan losses of $221 and $219, respectively

34,806 35,416 PREMISES AND EQUIPMENT, net 869 907 ACCRUED INTEREST AND DIVIDENDS RECEIVABLE 424 449 PREPAID EXPENSES AND OTHER ASSETS 439 84     TOTAL ASSETS $ 95,415   $ 98,808       LIABILITIES   DEPOSITS $ 76,958 $ 79,702 FHLB ADVANCES 2,075 3,075 OTHER LIABILITIES 608 505     TOTAL LIABILITIES 79,641 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 10,562 10,521

Treasury stock, at cost, 648,664 shares

(8,825 ) (8,825 ) Accumulated other comprehensive (loss) 706   499    

TOTAL STOCKHOLDERS’ EQUITY

15,774   15,526    

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

95,415   $ 98,808  

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,     2009 2008 2009 2008         INTEREST INCOME:   Interest and fees on loans $ 517 $ 537 $ 1,035 $ 1,105

Interest and dividends on securities available for sale

537 661 1,055 1,306 Interest and dividends on securities held to maturity 1 2 2 3 Other interest income 2   3   4 11    

Total interest income

1,057 1,203

2,096

2,424

 

INTEREST EXPENSE:

Interest on deposits 409 606 865 1,285 Interest on borrowings 16   21   36 43   Total interest expense 425   627   901 1,327  

Net interest income before provision for loan losses

632 576

1,195

1,097

Provision for loan losses 0   10   6 13  

Net interest income after provision for loan losses

632 566

1,189

1,084

 

NON-INTEREST INCOME:

Fees and other non-interest income 43 50 79 102 Gain on sale of securities 0 0 97 0 Miscellaneous income 4   4   7 8   Total non-interest income 47   54   183 110    

NON-INTEREST EXPENSE:

Salaries and employee benefits 384 383 728 733 Office building and equipment expenses 49 53 103 105 Professional Services Expense 35 51 71 93 Data Processing Expense 75 67 144 135 Other operating expense 184   85   262 157   Total non-interest expense 727   639   1,308 1,223   Income / (loss) before income taxes (48 ) (19 ) 64 (29 )  

PROVISION / (BENEFIT) FOR INCOME TAXES

(18 ) (7 ) 24

(11

)

 

Net Income / (Loss)

$

(30 )

$

(12 )

$

40

$

(18 )   EARNINGS / (LOSS) PER SHARE: Basic $ (0.04 ) $ (0.01 ) $ 0.05 $ (0.02 ) Diluted $ (0.04 ) $ (0.01 ) $ 0.05 $ (0.02 )  

DIVIDENDS DECLARED PER SHARE

$

---

$

0.0875

 

$

---

 

$

 

0.1750

  AVERAGE SHARES OUTSTANDING: Basic 780,318 780,318 780,318 780,318 Diluted 780,396 780,403 780,397 780,413