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 approximately $146,000, or ($0.19) per basic and diluted share, for the quarter ended December 31, 2014, as compared to a net loss of approximately $95,000, or ($0.12) per basic and diluted share, for the quarter ended December 31, 2013.

Gates Little, President and Chief Executive Officer of the Company stated that the Company’s net interest margins improved slightly during the quarter ended December 31, 2014 as compared to the same period in 2013. Net interest income for the quarter ended December 31, 2014 was approximately $699,000 as compared to approximately $681,000 for the quarter ended December 31, 2013, an increase of approximately $18,000 or 2.71%. The improvement in the net interest margin for the quarter was primarily attributable to an increase in total interest income of approximately $18,000 and a decrease in total interest expense of approximately $1,000. For the six months ended December 31, 2014, total non-interest income decreased approximately $400 or 0.69% while total non-interest expense increased approximately $81,000 or 4.90% as compared to the same six month period in 2013. The increase in non-interest expense was primarily attributable to increases in salaries, occupancy, equipment, professional services, data processing and other operating expenses of approximately $8,000, $16,000, $25,000, $14,000 and $18,000, respectively.

The Company’s total assets at December 31, 2014 were $95.5 million, as compared to $94.3 million at June 30, 2014. Total stockholders’ equity was approximately $14.6 million at December 31, 2014 or 15.3% of total assets as compared to approximately $14.7 million at June 30, 2014 or approximately 15.6% of total assets.

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.

(Selected financial data attached)

     

THE SOUTHERN BANC COMPANY, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Dollar Amounts in Thousands)

  December 31, June 30, 2014 2014       ASSETS CASH AND CASH EQUIVALENTS $ 788 $ 3,784 SECURITIES AVAILABLE FOR SALE, at fair value 49,942 53,525 SECURITIES HELD TO MATURITY, at amortized cost,

fair value of $3 and $5, respectively

3 5 FEDERAL HOME LOAN BANK STOCK 452 407  

LOANS RECEIVABLE, net of allowance for loan losses of $403 and $361, respectively

 

42,711 34,904 PREMISES AND EQUIPMENT, net 855 828 ACCRUED INTEREST AND DIVIDENDS RECEIVABLE 310 291 PREPAID EXPENSES AND OTHER ASSETS 513 593     TOTAL ASSETS $ 95,574 $ 94,337     LIABILITIES DEPOSITS $ 72,400 $ 72,064 FHLB ADVANCES 8,321 7,156 OTHER LIABILITIES 261 413     TOTAL LIABILITIES 80,982 79,633  

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 shares

(640) (640) Retained earnings 9,650 9,935

Treasury stock, at cost, 648,664 shares

(8,825) (8,825) Accumulated other comprehensive income (loss) 505 332

TOTAL STOCKHOLDERS’ EQUITY

14,592 14,704

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

95,574 $ 94,337

     

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,       2014 2013 2014 2013         INTEREST INCOME: Interest and fees on loans $ 578 $ 499 $ 1,076 $ 956 Interest and dividends on securities 304 364 627 730 Other interest income 5 6 9 10

Total interest income

887 869

1,712

1,696

INTEREST EXPENSE:

Interest on deposits 169 170 331 354 Interest on borrowings 19 19 38 40 Total interest expense 188 189 369 394

Net interest income before provision for loan losses

 

699 680

1,343

1,302

Provision for loan losses 125 0 125 0

Net interest income after provision for loan losses

 

574 680

1,218

1,302

NON-INTEREST INCOME:

Fees and other non-interest income 26 23 48 48 Gain on sale of securities 0 0 0 0 Miscellaneous income (41) 5 11 12 Total non-interest income (15) 28 59 60

NON-INTEREST EXPENSE:

Salaries and employee benefits 457 527 985 978 Office building and equipment expenses 59 56 123 108 Professional Services Expense 97 76 195 169 Data Processing Expense 101 92 198 185 Other operating expense 79 110 233 214 Total non-interest expense 793 861 1,734 1,654 Income / (loss) before income taxes (234) (153) (457) (292)

PROVISION / (BENEFIT) FOR INCOME TAXES

(88) (58) (172) (110)

Net Income / (Loss)

$

(146)

$

(95)

$

(285)

$

(182)

EARNINGS / (LOSS) PER SHARE:

Basic

 

$

(0.19)

$

(0.12)

 

$

(0.37)

 

$

(0.23) Diluted $ (0.19) $ (0.12) $ (0.37) $ (0.23)

DIVIDENDS DECLARED PER SHARE

$

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$

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$

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$

---   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