News Column

The Southern Banc Company, Inc. Announces Second Quarter Earnings

February 18, 2014

GADSDEN, Ala.--(BUSINESS WIRE)-- The Southern Banc Company, Inc. (OTCBB: SRNN), the holding company for The Southern Bank Company, announced a net loss of approximately $95,000, or $(0.12) per basic and diluted share, for the quarter ended December 31, 2013, as compared to a net loss of approximately $139,000, or $(0.18) per basic and diluted share, for the quarter ended December 31, 2012. For the six month period ended December 31, 2013, the company recorded a net loss of approximately $182,000, or $(0.23) per basic and diluted share, as compared to a net loss of approximately $181,000, or $(0.23) per basic and diluted share, for the six month period ended December 31, 2012.

Gates Little, President and Chief Executive Officer of the Company, stated that the Company’s net interest income increased approximately $86,000, or 17.4% during the three month period ended December 31, 2013 as compared to the same period in 2012. Net interest income for the six month period was approximately $1.1 million for the six month period end December 31, 2013 and 2012. The increase in the net interest margin for the six month period was primarily attributable to a decrease in total interest income of approximately $52,000, or (3.3%), and a decrease in total interest expense of approximately $99,000, or 20.8%. For the six month period ended December 31, 2013, total non-interest income increased approximately $23,000, or 10.8%, while total non-interest expense increased approximately $120,000, or 7.8%, as compared to the same six month period in 2012. The increase in non-interest income was primarily attributable to increases in fee income attributable to the bank’s factoring operation offset in part by a decrease in the gain on the sale of securities available for sale of approximately $42,000 and customer service fees of approximately $8,000. The increase in non-interest expense was primarily attributable to an increase in salaries and employee benefits relating to staff increases of approximately $86,000, professional service expense of approximately $19,000 and data processing expenses of approximately $25,000.

The Company’s total assets at December 31, 2013 were approximately $93.9 million, as compared to $95.6 million at June 30, 2013. Total stockholders’ equity was approximately $14.2 million, or 15.2% of total assets, at December 31, 2013 as compared to approximately $14.9 million, or 15.6% of total assets, at June 30, 2013.

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,
2013 2013
 
ASSETS
CASH AND CASH EQUIVALENTS $ 2,861 $ 4,049
SECURITIES AVAILABLE FOR SALE, at fair value 58,066 62,435

SECURITIES HELD TO MATURITY, at amortized cost, fair value of $8 and $14, respectively

7 13
FEDERAL HOME LOAN BANK (FHLB) STOCK 544 454
 

LOANS AND LEASES RECEIVABLE, net of allowance for loan losses of $365

29,605 25,823
PREMISES AND EQUIPMENT, net 853 811
ACCRUED INTEREST AND DIVIDENDS RECEIVABLE 384 335
PREPAID EXPENSES AND OTHER ASSETS 1,601 1,685
   
TOTAL ASSETS $ 93,921   $ 95,605  
 
 
LIABILITIES
DEPOSITS $ 71,355 $ 73,158
FHLB ADVANCES 8,313 7,313
OTHER LIABILITIES 21 212
   
TOTAL LIABILITIES 79,689 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 10,018 10,200

Treasury stock, at cost, 648,664 shares

(8,825 ) (8,825 )
Accumulated other comprehensive (loss) (223 ) 216  

TOTAL STOCKHOLDERS’ EQUITY

14,232   14,922  

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

93,921   $ 95,605  
 
       
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,
       
2013 2012 2013 2012
INTEREST INCOME:
Interest and fees on loans $ 399 $ 393 $ 776 $ 802
Interest and dividends on securities 364 334 730 754
Other interest income 6   7   10   12  
 

Total interest income

769 734

1,516

1,568

 

INTEREST EXPENSE:

Interest on deposits 170 217 354 443
Interest on borrowings 19   23   40   50  
Total interest expense 189   240   394   493  

Net interest income before provision for loan losses

580 494

1,122

1,075

Provision for loan losses 0   0   0   44  

Net interest income after provision for loan losses

580 494

1,122

1,031

 

NON-INTEREST INCOME:

Fees and other non-interest income 23 28 48 56
Gain on sale of securities 0 0 0 41
Miscellaneous income 106   64   191   119  
Total non-interest income 129   92   239   216  
 

NON-INTEREST EXPENSE:

Salaries and employee benefits 527 475 977 892
Office building and equipment expenses 56 51 108 109
Professional Services Expense 76 85 169 150
Data Processing Expense 93 80 184 159
Other operating expense 110   116   214   223  
Total non-interest expense 862   807   1,652   1,533  
Income / (loss) before income taxes (153 ) (221 ) (291 ) (286 )
 

PROVISION / (BENEFIT) FOR INCOME TAXES

(58 ) (82 ) (109 ) (105 )
 

Net Income / (Loss)

$

(95 )

$

(139 )

$

(182 )

$

(181 )
 

EARNINGS / (LOSS) PER SHARE:

Basic

$

(0.12

)

$

(0.18

)

$

(0.23

)

$

(0.23 )
Diluted $ (0.12 ) $ (0.18 ) $ (0.23 ) $ (0.23 )
 

DIVIDENDS DECLARED PER SHARE

$

---

$

---

$

---

$

---
 
AVERAGE SHARES OUTSTANDING:
Basic 773,443 780,318 776,357 780,318
Diluted 773,443 780,318 776,357 780,318





The Southern Banc Company, Inc.

Gates Little, 256-543-3860




Source: The Southern Banc Company, Inc.


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