<PAGE>
<PAGE>
FORM 10-QSB
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1997
Commission File Number: 1-13964
The Southern Banc Company, Inc.
_________________________________________________________________
(Exact name of small business issuer as specified in its charter)
Delaware 63-1146351
- ----------------------- -------------------
(State of incorporation) (I.R.S. Employer
Identification No.)
221 S. 6th Street, Gadsden, Alabama 35901-4102
- --------------------------------------- -----------
(Address of principal executive offices) (Zip Code)
Issuer's telephone number, including area code: (205) 543-3860
Check whether the issuer (1) filed all reports required
to be filed by Section 13 or 15(d) of the Exchange Act during the
preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past ninety days:
Yes X No
--- ----
As of March 31, 1997, there were 1,230,313 shares of the
registrant's Common Stock, par value $0.01 per share, issued and
outstanding.
Transitional small business disclosure format (check
one): Yes_ No X
<PAGE>
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
<PAGE>
<PAGE>
THE SOUTHERN BANC COMPANY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollar Amounts in Thousands)
<TABLE>
<CAPTION>
March 31, June 30,
1997 1996
------------ ------------
ASSETS (Unaudited)
<S> <C> <C>
CASH AND CASH EQUIVALENTS $ 5,462 $ 4,535
SECURITIES AVAILABLE FOR SALE 15,765 13,504
SECURITIES HELD TO MATURITY,
fair values of $3,981 and
$4,488, respectively 4,018 4,514
LOANS RECEIVABLE, net 35,442 33,145
MORTGAGE-BACKED SECURITIES HELD TO
MATURITY, fair values of
$41,868 and $48,370, respectively 42,235 48,308
PREMISES AND EQUIPMENT, net 273 279
OTHER ASSETS 1,783 2,744
-------- --------
TOTAL ASSETS $104,978 $107,029
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
DEPOSITS $ 86,570 $ 85,847
OTHER LIABILITIES 673 1,047
-------- --------
TOTAL LIABILITIES 87,243 86,894
COMMITMENTS AND CONTINGENCIES
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
Treasury Stock at cost, 224,437 and 72,737
shares (3,000) (958)
Additional paid-in capital 13,605 13,573
Unearned ESOP compensation (1,983) (2,117)
Retained Earnings 9,227 9,702
Unrealized gain (loss) on securities available
for sale, net (129) (80)
-------- --------
TOTAL SHAREHOLDERS' EQUITY 17,735 20,135
-------- --------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $104,978 $107,029
======== ========
</TABLE>
The accompanying notes are an integral part of these condensed
consolidated statements.<PAGE>
<PAGE>
THE SOUTHERN BANC COMPANY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE AND NINE MONTH PERIODS ENDED
March 31, 1997 and 1996
(Dollar Amounts in Thousands)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
March 31, March 31,
--------------------- ---------------------
1997 1996 1997 1996
---------- --------- -------- --------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
INTEREST INCOME:
Interest and fees on loans $ 684 $ 651 $ 2,034 $ 1,794
Interest on mortgage-backed
securities held to maturity 781 868 2,456 2,585
Interest and dividends on
securities 323 348 966 1,080
Other interest income 56 96 208 300
---------- ---------- ---------- ----------
Total interest income 1,844 1,963 5,664 5,759
INTEREST EXPENSE:
Interest on deposits 1,107 1,138 3,396 3,532
---------- ---------- ---------- ----------
Net interest income 737 825 2,268 2,227
Provision for loan losses 0 0 0 0
---------- ---------- ---------- ----------
Net interest income after
provision for loan losses 737 825 2,268 2,227
---------- ---------- ---------- ----------
NON-INTEREST INCOME:
Fees & other non-interest income 16 23 48 54
---------- ---------- ---------- ----------
NON-INTEREST EXPENSE:
Salaries and employee benefits 351 269 1,053 920
Office building and equipment expenses 74 77 215 230
Deposit insurance expense 3 56 699 160
Other operating expense 117 136 315 253
---------- ---------- ---------- ----------
Total non-interest expense 545 538 2,282 1,563
---------- ---------- ---------- ----------
Income before income taxes 208 310 34 718
PROVISION FOR INCOME TAXES 78 105 9 272
---------- ---------- ---------- ----------
Net income $ 130 $ 205 $ 25 $ 446
========== ========== ========== ==========
EARNINGS PER SHARE - PRIMARY $ 0.12 $ 0.16 $ 0.02 $ 0.31
EARNINGS PER SHARE - DILUTED $ 0.12 $ 0.16 $ 0.02 $ 0.31
WEIGHTED AVERAGE SHARES OUTSTANDING 1,040,936 1,252,851 1,120,961 1,454,750
DIVIDENDS DECLARED PER SHARE $0.0875 $0.2600 $0.4375 $0.3500
</TABLE>
The accompanying notes are an integral part of these condensed
consolidated statements.<PAGE>
<PAGE>
THE SOUTHERN BANC COMPANY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Nine Months Ended
March 31, 1997 and 1996
(Dollar Amounts in Thousands)
<TABLE>
<CAPTION>
1997 1996
------- -------
(Unaudited) (Unaudited)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 25 $ 446
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Depreciation 78 48
Amortization (accretion), net 19 34
Amortization of unearned compensation 252 0
Provision for loan losses 0 0
Change in assets and liabilities:
(Increase) decrease in other assets 961 (492)
Increase (decrease) in other liabilities (346) 115
------- -------
Total adjustments 964 (295)
------- -------
Net cash provided by (used in) operating
activities 989 151
------- -------
CASH FLOWS FROM OPERATING ACTIVITIES:
Proceeds from maturities of securities
available for sale 1,500 3,345
Proceeds from maturities of securities
held to maturity 500 3,590
Principal payments received on mortgage-backed
securities held to maturity and available for sale 6,501 5,713
Purchase of available for sale securities (1,000) (5,503)
Purchase of securities held to maturity 0 (2,500)
Purchase of mortgage-backed securities
held to maturity 0 (9,452)
Purchase of mortgage-backed securities
available for sale (3,290) 0
Purchase of loans (291) 0
Net loan (originations) repayments (2,006) (5,092)
Capital expenditures (72) (6)
------- -------
Net cash provided by (used in)
investing activities 1,842 (9,905)
------- -------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase/(decrease) in deposits, net 723 (4,631)
Dividends paid (206) (510)
Contributions to plan trusts (380) 0
Net Proceeds from issuance of common stock 0 12,641
Purchase of treasury stock (2,042) 0
------- -------
Net cash provided by financing activities (1,905) 7,500
------- -------
Net increase (decrease) in cash and cash equivalents 927 (2,254)
CASH AND CASH EQUIVALENTS, beginning of period 4,535 8,991
------- -------
CASH AND CASH EQUIVALENTS, end of period $ 5,462 $ 6,737
======= =======
/TABLE
<PAGE>
<PAGE>
THE SOUTHERN BANC COMPANY, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. BASIS OF PRESENTATION
The Southern Banc Company, Inc. (the "Company") was incorporated
in the State of Delaware in May 1995, for the purposes of
becoming a holding company to own all of the outstanding capital
stock of First Federal Savings & Loan Association of Gadsden (the
"Association") upon the Association's conversion from a
federally chartered mutual savings association to a federally
chartered stock association (the "Conversion"). The accounting
for the conversion is in a manner similar to that utilized in a
pooling of interest.
The accompanying unaudited condensed consolidated financial
statements as of March 31, 1997 and June 30, 1996, and for the
three and nine month periods ended March 31, 1997 and 1996,
include the accounts of the Company, the Association, and the
Association's wholly owned subsidiary, First Service Corporation
of Gadsden. All significant intercompany transactions and
accounts have been eliminated in consolidation.
The condensed consolidated financial statements were prepared by
the Company without an audit, but in the opinion of management,
reflect all adjustments necessary for the fair presentation of
financial position and results of operations for the three and
nine months ended March 31, 1997 and 1996. Results of operations
for the current interim period are not necessarily indicative of
results expected for the entire fiscal year.
While certain information and footnote disclosures normally
included in financial statements prepared in accordance with
generally accepted accounting principles have been condensed or
omitted pursuant to the rules and regulations of the Securities
and Exchange Commission, management believes that the
disclosures herein are adequate to make the information presented
not misleading. These condensed consolidated financial
statements should be read in conjunction with the consolidated
financial statements and notes thereto included in the Company's
annual report on Form 10-K for the year ended June 30, 1996. The
accounting policies followed by the Company are set forth in the
summary of significant accounting policies in the Company's June
30, 1996 consolidated financial statements.
2. STOCK CONVERSION
On October 5, 1995, the Conversion of the Association from a
Federally chartered mutual institution to a Federally chartered
stock savings association through amendment of its charter and
issuance of common stock to the Company was completed. Related
thereto, the Company sold 1,454,750 shares of common stock, par
value $.01 per share, at an initial price of $10 per share in
subscription and community offerings. Costs associated with the
Conversion were approximately $880,000, including underwriting
fees. The conversion costs were deducted from the gross proceeds
of the sale of the common stock.
3. RETIREMENT AND SAVINGS PLANS
EMPLOYEE STOCK OWNERSHIP PLAN
In connection with the Conversion, the Association established an
employee stock ownership plan (the "ESOP") for eligible
employees. The ESOP purchased 116,380 shares of the Company's
common stock with the proceeds of a $1,163,800 note payable from
the Association and secured by the Common Stock owned by the
ESOP. Unearned compensation for the ESOP was charged to
stockholders' equity and is reduced ratably in connection with
principal payments under the terms of the plan. Unearned
compensation is amortized into compensation expense based on
employee services rendered in relation to shares which are
committed to be released.
<PAGE>
<PAGE>
MANAGEMENT RECOGNITION PLAN
During fiscal 1996, the Association established a management
recognition plan (the "MRP") which purchased 58,190 shares of the
Company's common stock on the open market subsequent to the
Conversion. The MRP provides for awards of common stock to
directors and officers of the Association. A trust was formed
for the purpose of purchasing shares of stock in the open market
for awards of stock under the MRP. The aggregate fair market
value of the shares purchased by the MRP is considered unearned
compensation at the time of purchase and compensation is earned
ratably over the stipulated vesting period. Unearned
compensation related to the MRP is shown as a reduction to
shareholders' equity in the accompanying consolidated statements
of condition. The MRP Plan Trust held 58,190 issued and
outstanding shares at March 31, 1997.
STOCK OPTION AND INCENTIVE PLAN
The Company has a stockholder approved Option and Incentive Plan
(the "Option Plan"). The Option Plan provides for the grant of
incentive stock options (ISO's) to employees and non-incentive
stock options (non-ISO's) to non-employee directors. The
exercise price is based on the market price of the common stock
on the date of grant. A trust was formed for the purpose of
purchasing shares of stock in the open market for issuance upon
future exercises of stock options under the Option Plan. The
Option Plan Trust held 36,366 issued and outstanding shares at
March 31, 1997.
SIMPLIFIED EMPLOYEE PENSION PLAN
The Company established a Simplified Employee Pension Plan
("SEP")for all employees who have completed one year of service,
pursuant to Section 408(k) of the Internal Revenue Code of 1986.
The Company makes a discretionary contribution to the SEP on an
annual basis.
4. EARNINGS PER SHARE
Earnings per share have been computed based on the weighted
average number of shares of common stock outstanding during the
three and nine month periods ended March 31, 1997. Common stock
outstanding for this purpose is comprised of issued shares less
treasury stock, unallocated ESOP shares, and shares owned by the
MRP and Option Plan Trusts.
Fully diluted earnings per share is computed based on the
weighted average number of shares of common stock and common
stock equivalents outstanding during the three and nine month
periods ended March 31, 1997. Common stock equivalents include
unvested shares awarded under the MRP and unexercised options
granted under the Option Plan, based on the average price of the
common stock during the period.
Earnings per share for the nine month period ended March 31,
1996, is presented on a retroactive basis, as if the 1,454,750
shares had been outstanding during the entire period.
5. FDIC ASSESSMENT
The Association's deposits are insured by the Savings Association
Insurance Fund("SAIF"), which is administered by the Federal
Deposit Insurance Corporation ("FDIC"). Congress recently passed
legislation requiring a one-time special assessment of 65.7 basis
points to be applied against SAIF-assessable deposits as of March
31, 1995. The Association recognized an expense at September
30, 1996 in the amount of $591,000 to record the one-time special
assessment.
6. RECENT ACCOUNTING PRONOUNCEMENTS
In June 1996, the Financial Accounting Standards Board (FASB)
issued Statement of Financial Accounting Standards (SFAS) No.
125, Accounting for Transfers and Servicing of Financial Assets
and Extinguishments of Liabilities. SFAS No. 125 provides
accounting and reporting standards for transfers and servicing of
financial assets and extinguishments of liabilities based on
consistent application of a financial components approach that
focuses on control. Under that approach, after a transfer of
financial assets, an entity recognizes the financial and
servicing assets
<PAGE>
it controls and the liabilities it has incurred, decrecognizes
financial assets when control has been surrendered, and
derecognizes liabilities when extinguished.
This statement is effective for transfers and servicing of
financial assets and extinguishments of liabilities occuring
after December 31, 1996, and is to be applied prospectively.
Earlier or retroactive application is not permitted. The Company
adopted the provisions of this statement on January 1, 1997.
Based on the Company's current operating activities, the adoption
of this statement did not have an impact on the Company's
financial condition or results of operations.
In February 1997, the Financial Accounting Standards Board (FASB)
issued Statement of Financial Accounting Standards (SFAS) No.
128, Earnings per Share. This Statement establishes standards
for computing and presenting earnings per share (EPS) and applies
to entities with publicly held common stock or potential common
stock. This Statement simplifies the standards for computing
earnings per share previously found in APB Opinion No. 15,
Earnings per Share, and makes them comparable to international
EPS standards. It replaces the presentation of primary EPS with
a presentation of basic EPS and requires dual presentation of
basic and diluted EPS on the face of the income statement for all
entities with complex capital structures and requires a
reconciliation of the numerator and denominator of the basic EPS
computation to the numerator of the basic EPS computation to the
numerator and denominator of the diluted EPS computation.
This Statement is effective for financial statements issued for
periods ending after December 15, 1997, including interim
periods; earlier application is not permitted. This Statement
requires restatement of all prior-period EPS data presented. The
Company will adopt the Statement at fiscal year-end 1998.
Assuming the adoption of SFAS No. 128 and the Conversion of the
Company had been consummated at July 1, 1995, the earnings per
share amounts, on a pro forma basis, would have been as follows:
<TABLE>
<CAPTION>
For the Nine For the Nine
Months Ended Months Ended
March 31, 1996 March 31, 1997
-------------- --------------
<S> <C> <C>
Basic and Diluted
earnings per share $ .31 $ .02
</TABLE>
<PAGE>
<PAGE>
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
COMPARISON OF FINANCIAL CONDITION AT MARCH 31, 1997 AND JUNE 30,
1996.
Total assets decreased approximately $2.0 million or 1.92% from
$107.0 million at June 30, 1996 to $105.0 million at March 31,
1997. During the period ended March 31, 1997, net loans
increased approximately $2.3 million or 6.93% and mortgage-backed
securities held to maturity decreased approximately $6.1 million
or 12.57%. The decrease in mortgage-backed securities was
primarily attributable to principal payments received during the
period ended March 31, 1997.
Cash and cash equivalents increased $927,000 or 20.44% from $4.5
million to $5.5 million at March 31, 1997. The increase in cash
was primarily attributable to the maturity of investment
securities. During the period ended March 31, 1997 securities
available for sale increased by $2.3 million or 16.74% from
$13.5 million to $15.8 million.
Other assets decreased $961,000 or 35.02% from $2.7 million at
June 30, 1996 to $1.8 million at March 31, 1997. Other assets at
June 30, 1996 included a receivable of approximately $1.5 million
which represented two securities that matured on June 30, 1996.
Total deposits increased $723,000 or 0.84% from $85.8 million at
June 30, 1996 to $86.6 million at March 31, 1997. Other
liabilities during the period ended March 31, 1997 decreased
approximately $374,000 or 35.72% from $1.0 million to $673,000.
This decrease was primarily attributable to the payment of
approximately $591,000 which represented the one-time special
assessment by the Federal Deposit Insurance Corporation ("FDIC")
for purposes of recapitalizing the Savings Association Insurance
Fund ("SAIF").
Total equity decreased $2.4 million or 11.92% from $20.1 million
at June 30, 1996 to $17.7 million at March 31, 1997. This
decrease was attributable to the payment of stock dividends, the
year-to-date loss which resulted from the one-time special
assessment by the FDIC and the repurchase of 151,700 shares of
outstanding common stock. Treasury stock increased by $2.0
million or 213.15% from $958,000 at June 30, 1996 to $3.0 million
at March 31, 1997.
COMPARISON OF RESULTS OF OPERATIONS FOR THE THREE MONTHS AND NINE
MONTHS ENDED MARCH 31, 1997 AND 1996.
The Association reported net income for the three months ended
March 31, 1997 of $130,000 compared with net income of $205,000
for the three months ended March 31, 1996. This decrease was
primarily attributable to salary and benefit expenses related to
the establishment of certain employee benefit plans, following
the conversion. The Association reported net income for the nine
month period ended March 31, 1997 of $25,000 compared with net
income of $446,000 for the nine month period ended March 31,
1996. The decrease in the net profit during the period was
primarily attributable to the recognition of the one-time special
assessment of approximately $591,000 by the FDIC, offset in part
by a $69,000 reduction in income tax expense.
NET INTEREST INCOME. Net interest income for the three and nine
months ended March 31, 1997 was $737,000 and $2.3 million,
respectively. Net interest income for the three and nine months
ended March 31, 1996 was $825,000 and $2.2 million, respectively.
Total interest income decreased $119,000 or 6.1% from $2.0
million to $1.8 million for the three months ended March 31, 1996
and 1997, respectively. This decrease was primarily attributable
to the maturity of securities during the three month period.
Total interest income decreased $95,000 or 1.7% for the nine
month period ended March 31, 1997. Total interest expense
decreased $31,000 or 2.7% for the three months ended March 31,
1997 compared with the three month period ended March 31, 1996.
Total interest expense decreased $136,000 or 3.9% from $3.5
million to $3.4 million for the nine months ended March 31, 1997
compared with the nine months ended March 31, 1996. The increase
in net interest income during the nine month period was primarily
attributable to additional funds received during the initial
public offering.
<PAGE>
PROVISION FOR LOAN LOSSES. No provision for loan losses was
deemed necessary in either of the three month or nine month
periods ended March 31, 1997 or 1996. The allowance for loan
losses is based on management's evaluation of possible loan
losses inherent in the Association's loan portfolio. Management
considers, among other factors, past loss experience, current
economic conditions, volume, growth and composition of the loan
portfolio, and other relevant factors.
NON-INTEREST INCOME. Non-interest income for the three month
period ended March 31, 1997 was $16,000 as compared to $23,000
for the three month period ended March 31, 1996. For the nine
month period ended March 31, 1997 and 1996, non-interest income
was $48,000 and $54,000, respectively.
NON-INTEREST EXPENSE. Non-interest expense increased $7,000 or
1.3% for the three month period ended March 31, 1997 from
$538,000 to $545,000 at March 31, 1996 and 1997, respectively.
For the nine month period ended March 31, 1997 and 1996,
non-interest expense increased $719,000 or 46.0% from $1.6
million to $2.3 million. This increase was primarily
attributable to the recognition of the one-time special
assessment by the FDIC in the amount of $591,000. Salaries and
employee benefits increased $82,000 or 30.5% for the three month
period ended March 31, 1997 compared with the three month period
ended March 31, 1996. This increase is primarily attributable to
the establishment of the MRP on April 10, 1996. For the nine
month period ended March 31, 1997, salaries and benefits
increased $133,000 or 14.5% compared with the nine month period
ended March 31, 1996. This increase was primarily attributable
to salary and benefit expenses related to the establishment of
certain employee benefit plans, subsequent to the conversion.
Other operating expenses decreased $19,000 or 14.0% and increased
$62,000 or 24.5% for the three and nine month periods ended March
31, 1997 as compared to the three and nine month periods ended
March 31, 1996. This increase was primarily attributable to
operating expenses relating to the operation of the holding
company and professional fees associated with back-office
operational improvements.
PROVISION FOR INCOME TAXES. For the three and nine month periods
ended March 31, 1997, provision for income tax expense decreased
$27,000 and $263,000, respectively, as compared to the three and
nine month periods ended March 31, 1996. This decrease was
primarily attributable to reduced income related to the
recognition of the one-time special assessment by the FDIC in the
amount of $591,000. As a result, income before income taxes
decreased $102,000 and $684,000 for the three and nine month
periods ended March 31, 1997 as compared to the three and nine
month periods ended March 31, 1996.
LIQUIDITY AND CAPITAL RESOURCES. As a holding company, the
Company conducts its business through its subsidiary, the
Association. The Association is required to maintain minimum
levels of liquid assets as defined by regulations of the Office
of Thrift Supervision. This requirement, which varies from time
to time depending upon economic conditions and deposit flows, is
based upon a percentage of deposits and short-term borrowings.
The required ratio currently is 5.0%. The Association's average
liquidity ratio well exceeded the required maximums at and during
the three and nine month periods ended March 31, 1997. The
Association adjusts its liquidity levels in order to meet funding
needs of deposit outflows, repayment of borrowings and loan
commitments. The Association also adjusts liquidity as
appropriate to meet its asset and liability management
objectives.
The Association's primary sources of funds are deposits, payment
of loans and mortgage-backed securities, maturities of investment
securities and other investments. While scheduled principal
repayments on loans and mortgage-backed securities are a
relatively predictable source of funds, deposit flows and loan
prepayments are greatly influenced by general interest rates,
economic conditions, and competition. The Association invests in
short-term interest-earning assets which provide liquidity to
meet lending requirements.
The Association is required to maintain certain levels of
regulatory capital. At March 31, 1997, the Association exceeded
all minimum regulatory capital requirements.
<PAGE>
PART II. OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
From time to time, the Company and any subsidiaries may
be a party to various legal proceedings incident to its
or their business. At March 31, 1997, there were no
legal proceedings to which the Company or any subsidiary
was a party, or to which any of their property was
subject, which were expected by management to result in
a material loss.
Item 2. CHANGES IN SECURITIES
None
Item 3. DEFAULTS UPON SENIOR SECURITIES
None
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
Item 5. OTHER INFORMATION
On April 17, 1997, The Southern Banc Company, Inc. announced a
dividend in the amount of $0.875 per share on or about June 13,
1997 to stockholders of record at the close of business on May
16, 1997.
On November 1, 1996, The Southern Banc Company, Inc. announced
that it was commencing a stock repurchase program to acquire up
to fifteen percent of its currently outstanding common stock, or
207,301 shares. During the nine month period ended March 31,
1997, The Southern Banc Company, Inc. has repurchased a total of
151,700 shares of its currently outstanding common stock. No
shares were repurchased during the three month period ended March
31, 1997. These stock repurchases are independent from, and
would be in addition to, stock repurchases on behalf of the
company's stock benefit plans, if any. This program will be
dependent upon market conditions, and there is no guarantee as to
the exact number of shares to be repurchased by the company.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
Exhibit 27 - Financial Data Schedule
(b) Reports on Form 8-K
None
<PAGE>
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
THE SOUTHERN BANC COMPANY
Date: May 8, 1997 By: /s/ James B. Little, Jr.
-----------------------------------
James B. Little, Jr.
(Principal Executive and Financial
Officer)
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-END> MAR-31-1997
<CASH> 457
<INT-BEARING-DEPOSITS> 5,005
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 15,765
<INVESTMENTS-CARRYING> 46,253
<INVESTMENTS-MARKET> 45,849
<LOANS> 35,518
<ALLOWANCE> 76
<TOTAL-ASSETS> 104,978
<DEPOSITS> 86,570
<SHORT-TERM> 0
<LIABILITIES-OTHER> 673
<LONG-TERM> 0
<COMMON> 15
0
0
<OTHER-SE> 17,720
<TOTAL-LIABILITIES-AND-EQUITY> 104,978
<INTEREST-LOAN> 2,034
<INTEREST-INVEST> 3,422
<INTEREST-OTHER> 208
<INTEREST-TOTAL> 5,664
<INTEREST-DEPOSIT> 3,396
<INTEREST-EXPENSE> 0
<INTEREST-INCOME-NET> 2,268
<LOAN-LOSSES> 0
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 2,282
<INCOME-PRETAX> 34
<INCOME-PRE-EXTRAORDINARY> 34
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 25
<EPS-PRIMARY> 0.02
<EPS-DILUTED> 0.02
<YIELD-ACTUAL> 4.51
<LOANS-NON> 0
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 76
<CHARGE-OFFS> 0
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 76
<ALLOWANCE-DOMESTIC> 0
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
