The Southern Banc Company, Inc. (SRNN) Inactive
Filed: 17 May 04, 12:00am
EXHIBIT 99.1
| For Immediate Release | Contact: Gates Little (256) 543-3860 For Immediate Release May 11, 2004 |
The Southern Banc Company, Inc. Announces
Third Quarter Earnings
The Southern Banc Company, Inc. (NASDAQ-OTCBB:SRNN), the holding company for The Southern Bank Company, formerly First Federal Savings and Loan Association of Gadsden, Alabama, announced net income of $184,000 or $0.21 and $0.20 per basic and diluted share, respectively, for the quarter ended March 31, 2004. This compared to net income of $305,000 or $0.35 and $0.34 per basic and diluted share, respectively, for the quarter ended March 31, 2003.
For the nine month period ended March 31, 2004, net income was $456,000 as compared to net income of $735,000 for the nine month period ended March 31, 2003. Basic and diluted earnings per share for the nine month period ended March 31, 2004 were $0.51 and $0.49, respectively. This compared to $0.84 and $0.83 per basic and diluted share, respectively, for the nine month period ended March 31, 2003.
Gates Little, President and Chief Executive Officer of the Company, stated that the decrease in net income and earnings per share for the nine month period ended March 31, 2004 resulted primarily from a decrease of $732,000 in total interest and dividend income offset in part by a decrease in total interest expense of approximately $673,000. As a result, net interest income after provision for loan losses decreased approximately $67,000. In addition to the decrease in net interest margin, total non-interest income decreased approximately $218,000 primarily due to a reduction in the gain on sale of securities available for sale of approximately $254,000.
The Company’s total assets at March 31, 2004 were approximately $107 million.
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 NASDAQ OTC Bulletin Board.
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)
| March 31, 2004 | June 30, 2003 | |||||||
ASSETS | ||||||||
CASH AND CASH EQUIVALENTS | $ | 8,443 | $ | 9,393 | ||||
SECURITIES AVAILABLE FOR SALE, at fair value | 54,061 | 53,723 | ||||||
SECURITIES HELD TO MATURITY, at amortized cost, fair value of $5,137 and $7,714, respectively | 4,789 | 7,215 | ||||||
FEDERAL HOME LOAN BANK (FHLB) STOCK | 792 | 886 | ||||||
LOANS HELD FOR SALE | 0 | 50 | ||||||
LOANS RECEIVABLE, net of allowance for loan losses of $144 and $140, respectively | 37,715 | 38,917 | ||||||
PREMISES AND EQUIPMENT, net | 491 | 507 | ||||||
ACCRUED INTEREST AND DIVIDENDS RECEIVABLE | 386 | 483 | ||||||
PREPAID EXPENSES AND OTHER ASSETS | 536 | 527 | ||||||
TOTAL ASSETS | $ | 107,213 | $ | 111,701 | ||||
LIABILITIES | ||||||||
DEPOSITS | $ | 80,685 | $ | 84,357 | ||||
FHLB ADVANCES | 7,333 | 7,750 | ||||||
OTHER LIABILITIES | 593 | 728 | ||||||
TOTAL LIABILITIES | 88,611 | 92,835 | ||||||
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 | 13,851 | 13,818 | ||||||
Unearned compensation | (74 | ) | (157 | ) | ||||
Shares held in trust, at cost, 45,417 and 65,738 shares, respectively | (615 | ) | (852 | ) | ||||
Retained earnings | 11,301 | 11,082 | ||||||
Treasury stock, at cost, 521,052 and 493,252 shares, respectively | (6,634 | ) | (6,182 | ) | ||||
Accumulated other comprehensive income | 758 | 1,142 | ||||||
TOTAL STOCKHOLDERS’ EQUITY | 18,602 | 18,866 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 107,213 | $ | 111,701 | ||||
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THE SOUTHERN BANC COMPANY, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollar Amounts in Thousands, except per share data)
| Three Months Ended March 31, | Nine Months Ended March 31, | |||||||||||
| 2004 | 2003 | 2004 | 2003 | |||||||||
INTEREST INCOME: | ||||||||||||
Interest and fees on loans | $ | 542 | $ | 585 | $ | 1,689 | $ | 1,772 | ||||
Interest and dividends on securities available for sale | 593 | 711 | 1,738 | 2,141 | ||||||||
Interest and dividends on securities held to maturity | 91 | 153 | 311 | 529 | ||||||||
Other interest income | 11 | 18 | 36 | 64 | ||||||||
Total interest income | 1,237 | 1,467 | 3,774 | 4,506 | ||||||||
INTEREST EXPENSE: | ||||||||||||
Interest on deposits | 422 | 605 | 1,352 | 1,980 | ||||||||
Interest on borrowings | 89 | 98 | 262 | 307 | ||||||||
Total interest expense | 511 | 703 | 1,614 | 2,287 | ||||||||
Net interest income before provision for loan losses | 726 | 764 | 2,160 | 2,219 | ||||||||
Provision for loan losses | 12 | 0 | 12 | 4 | ||||||||
Net interest income after provision for loan losses | 714 | 764 | 2,148 | 2,215 | ||||||||
NON-INTEREST INCOME: | ||||||||||||
Fees and other non-interest income | 50 | 37 | 144 | 108 | ||||||||
Gain on sale of securities | 62 | 158 | 62 | 316 | ||||||||
Total non-interest income | 112 | 195 | 206 | 424 | ||||||||
NON-INTEREST EXPENSE: | ||||||||||||
Salaries and employee benefits | 295 | 282 | 920 | 887 | ||||||||
Office building and equipment expenses | 102 | 91 | 275 | 269 | ||||||||
Other operating expense | 127 | 124 | 411 | 370 | ||||||||
Total non-interest expense | 524 | 497 | 1,606 | 1,526 | ||||||||
Income before income taxes | 302 | 462 | 748 | 1,113 | ||||||||
PROVISION FOR INCOME TAXES | 118 | 157 | 292 | 378 | ||||||||
Net Income | $ | 184 | $ | 305 | $ | 456 | $ | 735 | ||||
EARNINGS PER SHARE: | ||||||||||||
Basic | $ | 0.21 | $ | 0.35 | $ | 0.51 | $ | 0.84 | ||||
Diluted | $ | 0.20 | $ | 0.34 | $ | 0.49 | $ | 0.83 | ||||
DIVIDENDS DECLARED PER SHARE | $ | 0.0875 | $ | 0.0875 | $ | 0.2625 | $ | 0.2625 | ||||
AVERAGE SHARES OUTSTANDING: | ||||||||||||
Basic | 886,275 | 875,448 | 886,312 | 876,409 | ||||||||
Diluted | 917,533 | 895,705 | 921,929 | 890,225 | ||||||||
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THE SOUTHERN BANC COMPANY, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollar Amounts in Thousands)
For The Nine Months Ended March 31, | ||||||||
| 2004 | 2003 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 456 | $ | 735 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation | 34 | 42 | ||||||
Amortization, net | 186 | 106 | ||||||
Amortization of unearned compensation | 116 | 109 | ||||||
Provision for loan losses | 12 | 4 | ||||||
Net gain on sale of secondary market loans | (14 | ) | (30 | ) | ||||
Gain on sale of securities | (62 | ) | (316 | ) | ||||
Proceeds from sale of secondary market loans | 811 | 2,368 | ||||||
Loans originated for secondary market | (747 | ) | (2,721 | ) | ||||
Change in assets and liabilities: | ||||||||
Decrease in accrued interest & dividends receivable | 97 | 118 | ||||||
Increase (decrease) in other assets | (9 | ) | 4 | |||||
Increase (decrease) in other liabilities | 14 | (16 | ) | |||||
Net cash provided by operating activities | 894 | 403 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Purchases of securities available for sale | (20,653 | ) | (29,007 | ) | ||||
Proceeds from maturities, principal payments, and sales of securities available for sale | 19,651 | 26,501 | ||||||
Proceeds from maturities and principal payments on securities held to maturity | 2,434 | 3,537 | ||||||
Proceeds from sale of FHLB stock | 94 | 470 | ||||||
Net loan repayments (originations) | 1,190 | (2,351 | ) | |||||
Capital expenditures, net | (18 | ) | (26 | ) | ||||
Net cash provided by (used in) investing activities | 2,698 | (876 | ) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Increase (decrease) in deposits, net | (3,672 | ) | 3,225 | |||||
Decrease in advance payments by borrowers for taxes and insurance | (1 | ) | 0 | |||||
Dividends paid | (237 | ) | (223 | ) | ||||
Proceeds from exercise of stock options | 237 | 0 | ||||||
Purchase of treasury stock | (452 | ) | (540 | ) | ||||
Decrease in FHLB advances, net | (417 | ) | (1,416 | ) | ||||
Net cash (used in) provided by financing activities | (4,542 | ) | 1,046 | |||||
Net (decrease) increase in cash and cash equivalents | (950 | ) | 573 | |||||
CASH AND CASH EQUIVALENTS, beginning of period | 9,393 | 7,529 | ||||||
CASH AND CASH EQUIVALENTS, end of period | $ | 8,443 | $ | 8,102 | ||||
SUPPLEMENTAL CASH FLOW INFORMATION: | ||||||||
Cash paid during the period for: | ||||||||
Income taxes | $ | 248 | $ | 325 | ||||
Interest | $ | 1,614 | $ | 2,295 | ||||
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