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The Southern Banc Company, Inc. Announces First Quarter Earnings

Friday, November 9, 2012 11:13 AM


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 $41,000, or $(0.05) per basic and diluted share, for the quarter ended September 30, 2012, as compared to net loss of approximately $16,000, or ($0.02) per basic and diluted share, for the quarter ended September 30, 2011.

Gates Little, President and Chief Executive Officer of the Company stated that the Company’s net interest margins decreased approximately $15,000, or 2.5% during the quarter as compared to the same period in 2011. Net interest income for the quarter ended September 30, 2012 was approximately $581,000 as compared to approximately $596,000 for the quarter ended September 30, 2011. The decrease in the net interest margin for the quarter was primarily attributable to an increase in total interest expense of approximately $19,000 offset in part by an increase in total interest income of approximately $4,000. For the quarter ended September 30, 2012, total non-interest income increased approximately $36,000 or 40.1% while total non-interest expense increased approximately $25,000 or 32.1% as compared to the same three month period in 2011. The increase in non-interest income was primarily attributable to an increase in customer service fees of approximately $11,000 and an increase in miscellaneous income of approximately $45,000 offset in part by a decrease in the gain on sale of securities. The increase in miscellaneous income was primarily attributable to an increase 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, offset in part by a decrease in data processing expenses relating to a change in the bank’s core processor.

The Company’s total assets at September 30, 2012 were $109.9 million, as compared to $111.3 million at June 30, 2012. Total stockholders’ equity was approximately $16.5 million at September 30, 2012 or 15.0% of total assets as compared to approximately $16.3 million at June 30, 2012 or approximately 14.6% 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.

 

THE SOUTHERN BANC COMPANY, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Dollar Amounts in Thousands)

 
    September 30,     June 30,
2012 2012
 
ASSETS
 
CASH AND CASH EQUIVALENTS $

5,988

$

3,689

 
SECURITIES AVAILABLE FOR SALE, at fair value 73,278 77,470

SECURITIES HELD TO MATURITY, at amortized cost, fair value of $25 and $30, respectively

24 28
FEDERAL HOME LOAN BANK (FHLB) STOCK 946 985
 

LOANS RECEIVABLE, net of allowance for loan losses of $309 and $247, respectively

27,534 27,242
PREMISES AND EQUIPMENT, net 802 812
ACCRUED INTEREST AND DIVIDENDS RECEIVABLE 373 416
PREPAID EXPENSES AND OTHER ASSETS

1,016

702
   
TOTAL ASSETS $ 109,961   $ 111,344  
 
 
LIABILITIES
 
DEPOSITS $ 76,812 $ 76,769
FHLB ADVANCES 15,626 17,626
OTHER LIABILITIES 1,073 693
   
TOTAL LIABILITIES 93,511 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 10,461 10,502

Treasury stock, at cost, 648,664 shares

(8,825 ) (8,825 )
Accumulated other comprehensive (loss)   1,483     1,248  
 

TOTAL STOCKHOLDERS’ EQUITY

  16,450     16,256  
 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

109,961

  $ 111,344  
 
 

THE SOUTHERN BANC COMPANY, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Dollar Amounts in Thousands, except per share data)

 
    Three Months Ended
September 30,
2012     2011
(Unaudited) (Unaudited)
 
INTEREST INCOME:
 
Interest and fees on loans $ 409 $ 400
Interest and dividends on securities 421 429
Other interest income   5     2  
 

Total interest income

835 831
 

INTEREST EXPENSE:

Interest on deposits 226 214
Interest on borrowings   28     21  
Total interest expense   254     235  

Net interest income before provision for loan losses

581 596
Provision for loan losses   45     4  

Net interest income after provision for loan losses

536 592
 

NON-INTEREST INCOME:

Fees and other non-interest income 28 17
Net gain on sale of securities 42 62
Miscellaneous income   54     9  
Total non-interest income   124     88  
 
 

NON-INTEREST EXPENSE:

Salaries and employee benefits 417 382
Office building and equipment expenses 58 54
Professional Services Expense 64 101
Data Processing Expense 79 83
Other operating expense   107     80  
Total non-interest expense   725     700  
Loss before income tax benefit (65 ) (20 )
 

PROVISION FOR INCOME TAX (BENEFIT)

  (24 )   (4 )
 

Net Income (Loss)

$

(41

)

$

(16

)

 
EARNINGS PER SHARE:
Basic $ (0.05 ) $ (0.02 )
Diluted $ (0.05 ) $ (0.02 )
 

DIVIDENDS DECLARED PER SHARE

$

0.0000

$

0.0000

 
AVERAGE SHARES OUTSTANDING:
Basic 780,318 780,318
Diluted 780,318 780,318

(Source: Business Wire )
(Source: Quotemedia)

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