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 $83,000, or $(0.11) per basic and diluted share, for the quarter ended March 31, 2011, as compared to net income of approximately $30,000, or $0.04 per basic and diluted share, for the quarter ended March 31, 2010. For the nine month period ended March 31, 2011, the company recorded a net loss of approximately $47,000, or $(0.06) per basic and diluted share, as compared to a net income of approximately $69,000, or $0.09 per basic and diluted share, for the nine month period ended March 31, 2010.
Gates Little, President and Chief Executive Officer of the Company stated that the Company's net interest income for the three month period ended March 31, 2011 decreased approximately $73,000, or 11.35% during the three month period ended March 31, 2011 as compared to the same period in 2010. Net interest income for the nine month period ended March 31, 2011 decreased approximately $113,000, or 6.13% as compared to the same period in 2010. The decrease in the net interest income for the nine month period was primarily attributable to a decrease in total interest income of approximately $530,000, or 17.04%, offset in part by a decrease in total interest expense of approximately $418,000, or 32.76%. For the nine month period ended March 31, 2011, total non-interest income increased approximately $3,000, or approximately 1.38%, while total non-interest expense increased approximately $108,000, or 5.68%, as compared to the same nine month period in 2010. The increase in non-interest income was primarily attributable to a gain on the sale of securities available for sale of approximately $46,000 offset in part by a decrease in customer service fees of approximately $64,000. During the nine month period ended March 31, 2011 the increase in total non-interest expense was primarily attributable to increases in professional service expense and data processing expenses, offset in part by decreases in other operating expenses, occupancy expenses, salaries and employee benefits. The increase in data processing expenses, primarily one-time de-conversion and training expenses, was related to the bank's conversion to a new core processing system and other professional services relating to the implementation of a new product offering. The decrease in other operating expenses was primarily attributable to a decrease in FDIC insurance premiums.
The Company's total assets at March 31, 2011 were approximately $94.8 million, as compared to $87.5 million at June 30, 2010. Total stockholders' equity was approximately $15.7 million, or approximately 16.56% of total assets, at March 31, 2011 as compared to approximately $16.2 million, or approximately 18.48% of total assets, at June 30, 2010. The decrease in total stockholders' equity was primarily due to a decrease of approximately $409,000 in accumulated other comprehensive loss relating to unrealized loss in securities available for sale and a net loss for the quarter of approximately $83,000.
The Bank has four branch offices located in Gadsden, Albertville, Guntersville, and Centre, Alabama. In addition, the Bank has a loan production office located in Birmingham, 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.
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THE SOUTHERN BANC COMPANY, INC. | |||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | |||||||||||
(Dollar Amounts in Thousands) | |||||||||||
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 |  |  | March 31, |  |  | June 30, | |||||
2011 | 2010 | ||||||||||
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ASSETS | |||||||||||
CASH AND CASH EQUIVALENTS | $ | 6,861 | $ | 6,061 | |||||||
SECURITIES AVAILABLE FOR SALE, at fair value | 57,194 | 46,869 | |||||||||
SECURITIES HELD TO MATURITY, at amortized cost, fair value of $39 and $65, respectively | 39 | 60 | |||||||||
FEDERAL HOME LOAN BANK (FHLB) STOCK | 733 | 338 | |||||||||
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LOANS AND LEASES RECEIVABLE, net of allowance for loan losses of $248 and $253, respectively | 28,317 | 32,563 | |||||||||
PREMISES AND EQUIPMENT, net | 898 | 874 | |||||||||
ACCRUED INTEREST AND DIVIDENDS RECEIVABLE | 396 | 352 | |||||||||
PREPAID EXPENSES AND OTHER ASSETS | 397 | 353 | |||||||||
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TOTAL ASSETS | $ | 94,835 | Â | $ | 87,470 | Â | |||||
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LIABILITIES | |||||||||||
DEPOSITS | $ | 69,923 | $ | 69,408 | |||||||
FHLB ADVANCES | 8,626 | 1,075 | |||||||||
OTHER LIABILITIES | 577 | 821 | |||||||||
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TOTAL LIABILITIES | 79,126 | 71,304 | |||||||||
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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 | 10,542 | 10,590 | |||||||||
Treasury stock, at cost, 648,664 shares | (8,825 | ) | (8,825 | ) | |||||||
Accumulated other comprehensive (loss) | 661 | Â | 1,070 | Â | |||||||
TOTAL STOCKHOLDERS' EQUITY | 15,709 | Â | 16,166 | Â | |||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 94,835 | Â | $ | 87,470 | Â |
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THE SOUTHERN BANC COMPANY, INC. | ||||||||||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||
(Dollar Amounts in Thousands, except per share data) | ||||||||||||||||||
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 |  | Three Months Ended |  |  | Nine Months Ended | |||||||||||||
March 31, | March 31, | |||||||||||||||||
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2011 | 2010 | 2011 | 2010 | |||||||||||||||
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INTEREST INCOME: | ||||||||||||||||||
Interest and fees on loans | $ | 430 | $ | 507 | $ | 1,371 | $ | 1,542 | ||||||||||
Interest and dividends on securities | 396 | 505 | 1,203 | 1,563 | ||||||||||||||
Other interest income | 2 | Â | 1 | 7 | Â | 6 | ||||||||||||
Total interest income | 828 | 1,013 | 2,581 | 3,111 | ||||||||||||||
INTEREST EXPENSE: | ||||||||||||||||||
Interest on deposits | 236 | 363 | 801 | 1,228 | ||||||||||||||
Interest on borrowings | 24 | Â | 10 | 56 | Â | 47 | ||||||||||||
Total interest expense | 260 | Â | 373 | 857 | Â | 1,275 | ||||||||||||
Net interest income before provision for loan losses | 568 | 640 | 1,724 | 1,836 | ||||||||||||||
Provision for loan losses | 0 | Â | 42 | 0 | Â | 48 | ||||||||||||
Net interest income after provision for loan losses | 568 | 598 | 1,724 | 1,788 | ||||||||||||||
NON-INTEREST INCOME: | ||||||||||||||||||
Fees and other non-interest income | 15 | 33 | 47 | 111 | ||||||||||||||
Gain on sale of securities | 0 | 0 | 142 | 96 | ||||||||||||||
Miscellaneous income | 17 | Â | 6 | 35 | Â | 14 | ||||||||||||
Total non-interest income | 32 | Â | 39 | 224 | Â | 221 | ||||||||||||
NON-INTEREST EXPENSE: | ||||||||||||||||||
Salaries and employee benefits | 362 | 338 | 1,042 | 1,066 | ||||||||||||||
Office building and equipment expenses | 51 | 55 | 149 | 158 | ||||||||||||||
Professional Services Expense | 67 | 30 | 197 | 101 | ||||||||||||||
Data Processing Expense | 168 | 75 | 371 | 219 | ||||||||||||||
Other operating expense | 82 | Â | 92 | 248 | Â | 354 | ||||||||||||
Total non-interest expense | 730 | Â | 590 | 2,007 | Â | 1,898 | ||||||||||||
Income / (loss) before income taxes | (130 | ) | 47 | (59 | ) | 111 | ||||||||||||
PROVISION / (BENEFIT) FOR INCOME TAXES | (47 | ) | 18 | (12 | ) | 42 | ||||||||||||
Net Income / (Loss) | $ | (83 | ) | $ | 29 | $ | (47 | ) | $ | 69 | ||||||||
EARNINGS / (LOSS) PER SHARE: | ||||||||||||||||||
Basic | $ | (0.11 | ) | $ | 0.04 | $ | (0.06 | ) | $ | 0.09 | ||||||||
Diluted | $ | (0.11 | ) | $ | 0.04 | $ | (0.06 | ) | $ | 0.09 | ||||||||
DIVIDENDS DECLARED PER SHARE | $ | --- | $ | --- | Â $ | --- | Â $ | --- | ||||||||||
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AVERAGE SHARES OUTSTANDING: | ||||||||||||||||||
Basic | 780,318 | 780,318 | 780,318 | 780,318 | ||||||||||||||
Diluted | 780,318 | 780,396 | 780,318 | 780,397 | ||||||||||||||
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Contacts:
The Southern Banc Company, Inc.
Gates Little, 256-543-3860