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 $31,000, or $(0.04) per basic and diluted share, for the quarter ended March 31, 2013, as compared to a net loss of approximately $44,000, or $(0.06) per basic and diluted share, for the quarter ended March 31, 2012. For the nine month period ended March 31, 2013, the company recorded a net loss of approximately $211,000, or $(0.27) per basic and diluted share, as compared to a net loss of approximately $76,000, or $(0.10) per basic and diluted share, for the nine month period ended March 31, 2012.

Gates Little, President and Chief Executive Officer of the Company, stated that the Company’s net interest income decreased approximately $54,000, or (9.7%) during the three month period ended March 31, 2013 as compared to the same period in 2012. The decrease in the net interest income for the three month period was primarily attributable to a decrease in interest and fees on securities in the amount of approximately $60,000 and a decrease in interest and fees on loans of approximately $24,000 offset in part by a decrease in interest paid on deposits and borrowings of approximately $21,000 and $6,000, respectively. Net interest income for the nine month period ended March 31, 2013 decreased approximately $167,000, or (9.6%) as compared to the same nine month period in 2012. The decrease in the net interest margin for the nine month period was primarily attributable to a decrease in total interest income of approximately $179,000, or (7.2%), offset in part by a decrease in total interest expense of approximately $11,000, or (1.6%). For the nine month period ended March 31, 2013, total non-interest income increased approximately $120,000, or 40.9%, while total non-interest expense increased approximately $154,000, or 7.2%, as compared to the same nine month period in 2012. The increase in non-interest income was primarily attributable to increases in fees generated from 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 and an increase in data processing expenses.

The Company’s total assets at March 31, 2013 were approximately $99.9 million, as compared to $111.3 million at June 30, 2012. Total stockholders’ equity was approximately $16.0 million, or approximately 16.0% of total assets, at March 31, 2013 as compared to approximately $16.3 million, or approximately 14.6% of total assets, at June 30, 2012.

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, 2013 2012   ASSETS CASH AND CASH EQUIVALENTS $ 6,709 $ 3,689 SECURITIES AVAILABLE FOR SALE, at fair value 62,435 77,470

SECURITIES HELD TO MATURITY, at amortized cost, fair value of $18 and $30, respectively

18 28 FEDERAL HOME LOAN BANK (FHLB) STOCK 544 985  

LOANS AND LEASES RECEIVABLE, net of allowance for loan losses of $315 and $247, respectively

26,316 27,242 PREMISES AND EQUIPMENT, net 800 812 ACCRUED INTEREST AND DIVIDENDS RECEIVABLE 323 416 PREPAID EXPENSES AND OTHER ASSETS 2,735 702     TOTAL ASSETS $ 99,880   $ 111,344       LIABILITIES   DEPOSITS $ 73,268 $ 76,769 FHLB ADVANCES 8,313 17,626 OTHER LIABILITIES 2,315 693     TOTAL LIABILITIES 83,896 95,088    

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 10,291 10,502

Treasury stock, at cost, 648,664 shares

(8,825 ) (8,825 ) Accumulated other comprehensive (loss) 1,187   1,248    

TOTAL STOCKHOLDERS’ EQUITY

15,983   16,256    

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

99,880   $ 111,344       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,     2013 2012 2013 2012 INTEREST INCOME: Interest and fees on loans $ 367 $ 390 $ 1,168 $ 1,203 Interest and dividends on securities 353 413 1,108 1,260 Other interest income 4   2   17   8    

Total interest income

724 805

2,293

2,471

 

INTEREST EXPENSE:

Interest on deposits 201 222 644 655 Interest on borrowings 20   26   70   70   Total interest expense 221   248   714   725  

Net interest income before provision for loan losses

503 557

1,579

1,746

Provision for loan losses 6   14   51   23  

Net interest income after provision for loan losses

497 543

1,528

1,723

 

NON-INTEREST INCOME:

Fees and other non-interest income 24 20 80 55 Gain on sale of securities 53 33 94 161 Miscellaneous income 121   42   240   78   Total non-interest income 198   95   414   294    

NON-INTEREST EXPENSE:

Salaries and employee benefits 415 422 1,307 1,253 Office building and equipment expenses 54 54 163 157 Professional Services Expense 75 67 225 223 Data Processing Expense 88 70 247 220 Other operating expense 110   90   333   268   Total non-interest expense 742   703   2,275   2,121     Income / (loss) before income taxes (47 ) (65 ) (333 ) (104 )  

PROVISION / (BENEFIT) FOR INCOME TAXES

(16 ) (21 ) (122 ) (28 )  

Net Income / (Loss)

$

(31 )

$

(44 )

$

(211 )

$

(76 )  

EARNINGS / (LOSS) PER SHARE:

Basic

$

(0.04

)

$

(0.06

)

$

(0.27

)

$

(0.10 ) Diluted $ (0.04 ) $ (0.06 ) $ (0.27 ) $

(0.10

)

 

DIVIDENDS DECLARED PER SHARE

$

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$

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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 780,318 780,318 780,318 780,318