N@N

The Southern Banc Company, Inc. Announces Second Quarter Earnings

^{Published on 2009-02-13 09:22:55, Last Modified on 2009-02-13 09:24:41 - Market Wire}
 

GADSDEN, Ala.--([ BUSINESS WIRE ])--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 $11,545, or $(0.01) per basic and diluted share, for the quarter ended December 31, 2008, as compared to a net loss of $81,115, or $(0.10) per basic and diluted share, for the quarter ended December 31, 2007. For the six month period ended December 31, 2008, the company recorded a net loss of $17,984, or $(0.02) per basic and diluted share, as compared to a net loss of $133,245, or $(0.17) per basic and diluted share, for the six month period ended December 31, 2007.

Gates Little, President and Chief Executive Officer of the Company, stated that the Company's net interest margins improved during the quarter as compared to the same period in 2007. Net interest income for the six month period ended December 31, 2008 was approximately $1.1 million as compared to approximately $940,000 for the six month period ended December 31, 2007. The improvement in the net interest margin for the six month period was primarily attributable to a decrease in total interest expense of approximately $330,000, or 19.91%, offset in part by a decrease in total interest income of approximately $173,000, or 6.65%. For the six month period ended December 31, 2008, total non-interest income increased approximately $44,000, or 66.15%, while total non-interest expense increased approximately $11,000, or 0.90%, as compared to the same six month period in 2007. The increase in non-interest income was primarily attributable to an increase in customer service fees.

The Company's total assets at December 31, 2008 were $97.8 million, as compared to $102.9 million at June 30, 2008. Total stockholders' equity was approximately $15.2 million, or 15.58% of total assets, at December 31, 2008 as compared to approximately $15.1 million, or 14.72% of total assets, at June 30, 2008.

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.

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.