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, 2000
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: (256) 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, 2000, there were 1,008,498 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>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
THE SOUTHERN BANC COMPANY, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollar Amounts in Thousands)
March 31, June 30,
2000 1999
---- ----
ASSETS
CASH AND CASH EQUIVALENTS $ 6,160 $ 8,681
SECURITIES AVAILABLE FOR SALE, at fair value 25,623 21,350
SECURITIES HELD TO MATURITY, at amortized cost,
fair value of $23,341 and $23,646, respectively 23,612 23,707
LOANS RECEIVABLE, net 41,014 42,109
PREMISES AND EQUIPMENT, net 462 258
ACCRUED INTEREST AND DIVIDENDS RECEIVABLE 662 588
PREPAID EXPENSES AND OTHER ASSETS 421 182
-------- --------
TOTAL ASSETS $ 97,954 $ 96,875
======== ========
LIABILITIES
DEPOSITS $ 81,251 $ 79,734
OTHER LIABILITIES 486 496
-------- --------
TOTAL LIABILITIES 81,737 80,230
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, 446,252 and 421,252 shares,
respectively (5,624) (4,991)
Additional paid-in capital 13,687 13,684
Unearned ESOP compensation (1,349) (1,532)
Retained earnings 9,912 9,684
Accumulated other comprehensive income (loss) (424) (215)
-------- --------
TOTAL STOCKHOLDERS' EQUITY 16,217 16,645
-------- --------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 97,954 $ 96,875
======== ========
The accompanying notes are an integral part of these condensed consolidated
statements.
2
<PAGE>
THE SOUTHERN BANC COMPANY, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollar Amounts in Thousands, except per share data)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
March 31, March 31,
-------- -------- -------- --------
2000 1999 2000 1999
INTEREST INCOME:
<S> <C> <C> <C> <C>
Interest and fees on loans $ 783 $ 802 $ 2,371 $ 2,396
Interest and dividends on securities available for sale 403 312 1,175 972
Interest and dividends on securities held to maturity 453 548 1,346 1,740
Other interest income 113 59 331 230
-------- -------- -------- --------
Total interest income 1,752 1,721 5,223 5,338
INTEREST EXPENSE:
Interest on deposits and borrowings 1,041 966 3,044 3,190
-------- -------- -------- --------
Net interest income 711 755 2,179 2,148
Provision for loan losses 0 0 17 27
-------- -------- -------- --------
Net interest income after provision
for loan losses 711 755 2,162 2,121
-------- -------- -------- --------
NON-INTEREST INCOME:
Fees and other non-interest income 28 35 86 143
-------- -------- -------- --------
NON-INTEREST EXPENSE:
Salaries and employee benefits 321 353 1,045 1,109
Office building and equipment expenses 76 64 212 187
Deposit insurance expense 4 13 28 39
Other operating expense 83 92 268 283
-------- -------- -------- --------
Total non-interest expense 484 522 1,553 1,618
-------- -------- -------- --------
Income before income taxes 255 268 695 646
PROVISION FOR INCOME TAXES 89 92 245 221
-------- -------- -------- --------
Net Income $ 166 $ 176 $ 450 $ 425
======== ======== ======== ========
EARNINGS PER SHARE-BASIC $ 0.19 $ 0.17 $ 0.50 $ 0.41
EARNINGS PER SHARE- DILUTED $ 0.19 $ 0.17 $ 0.49 $ 0.39
DIVIDENDS DECLARED PER SHARE $ 0.0875 $ 0.0875 $ 0.2625 $ 0.2625
</TABLE>
The accompanying notes are an integral part of these condensed consolidated
statements.
3
<PAGE>
THE SOUTHERN BANC COMPANY, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollar Amounts in Thousands)
<TABLE>
<CAPTION>
For The Nine Months Ended
March 31,
2000 1999
---- ----
CASH FLOWS FROM OPERATING ACTIVITIES:
<S> <C> <C>
Net Income $ 450 $ 425
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 28 25
Amortization (accretion), net (16) (10)
Amortization of unearned compensation 186 302
Provision for loan losses 17 27
Change in assets and liabilities:
(Increase) decrease in accrued interest &
dividends receivable (74) 56
(Increase) in other assets (239) (135)
Decrease in other liabilities 498 183
---------- ----------
Total adjustments 400 448
---------- ----------
Net cash provided by (used in) operating activities 850 873
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of securities available for sale (8,484) (13,298)
Proceeds from maturities and principal payments on
securities available for sale 3,888 14,663
Purchases of securities held to maturity (11,782) (5,770)
Proceeds from maturities and principal payments on
securities held to maturity 11,557 10,918
Net loan (originations) repayments 1,078 (629)
Capital expenditures (232) (19)
---------- ----------
Net cash provided by (used in) investing activities (3,975) 5,865
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (decrease) in deposits, net 1,517 (4,758)
(Decrease) in advance payments by borrowers
for taxes and insurance (3) (14)
Dividends paid (226) (264)
Contributions to plan trusts (51) (319)
Purchase of treasury stock (633) (804)
---------- ----------
Net cash provided by (used in) financing activities 604 (6,159)
Net increase (decrease) in cash and cash equivalents (2,521) 579
---------- ----------
CASH AND CASH EQUIVALENTS, beginning of period 8,681 6,422
---------- ----------
CASH AND CASH EQUIVALENTS, end of period $ 6,160 $ 7,001
========== ==========
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid during the period for:
Income taxes $ 245 $ 142
========== ==========
Interest $ 4,072 $ 3,190
========== ==========
Non-cash transactions:
Change in unrealized net gain/ (loss)
on securities available for sale, net $ (209) $ 3
========== ==========
</TABLE>
4
<PAGE>
THE SOUTHERN BANC COMPANY, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements as of
March 31, 2000 and June 30, 1999, and for the three and nine month periods ended
March 31, 2000 and 1999, include the accounts of the Company, the Bank, and
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 month periods ended March 31, 2000 and 1999.
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-KSB for the year ended June
30, 1999. The accounting policies followed by the Company are set forth in the
summary of significant accounting policies in the Company's June 30, 1999
consolidated financial statements.
2. RETIREMENT AND SAVINGS PLANS
Employee Stock Ownership Plan
The Bank has 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 Bank 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. At March 31, 2000, the Employee Stock
Ownership Plan had 60,884 shares allocated and 51,808 shares unallocated.
Management Recognition Plan ("MRP")
The Bank's MRP provides for awards of common stock to directors and officers of
the Bank. A trust was formed for the purpose of purchasing shares of stock in
the open market for future awards of stock options under the MRP Plan. 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 Plan held 29,404 shares at March 31, 2000.
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 Plan held 51,308 shares at March 31, 2000.
5
<PAGE>
3. EARNINGS PER SHARE
Basic earnings per share were computed by dividing net income by the weighted
average number of shares of common stock outstanding during the three and nine
month periods ended March 31, 2000 and 1999. Common stock outstanding consists
of issued shares less treasury stock, unallocated ESOP shares, and shares owned
by the MRP and Stock Option plan trusts. Diluted earnings per share for the
three and nine month periods ended March 31, 2000 and 1999, were computed by
dividing net income by the weighted average number of shares of common stock and
the dilutive effects of the shares awarded under the MRP and the Stock Option
plans, based on the treasury stock method using an average fair market value of
the stock during the respective periods.
For the three and nine month periods ended March 31, 2000, there were
approximately 123,000 shares under option that were excluded from the earnings
per share calculation because these shares would have been anti-dilutive. The
following table represents the earnings per share calculations for the three and
six month periods ended March 31, 2000 and 1999:
<TABLE>
<CAPTION>
For the Three Months Ended Net Earnings
March 31, 2000 Income Shares Per Share
- -------------- ------------- ------------ -------------
<S> <C> <C> <C>
Basic earnings per share:
Income available to common shareholders $ 166,000 881,239 $ 0.19
--------
Dilutive Securities:
Management recognition plan shares 16,309
Stock option plan shares ---
------------- -----------
Dilutive earnings per share:
Income available to common shareholders
plus assumed conversions $ 166,000 897,548 $ 0.19
------------- ----------- --------
For the Three Months Ended
March 31, 1999
- --------------
Basic earnings per share:
Income available to common shareholders $ 176,000 1,019,512 $ 0.17
--------
Dilutive Securities:
Management recognition plan shares 24,449
Stock option plan shares 1,904
------------- -----------
Dilutive earnings per share:
Income available to common shareholders
plus assumed conversions $ 176,000 1,045,865 $ 0.17
------------- ----------- --------
</TABLE>
6
<PAGE>
<TABLE>
<CAPTION>
For the Nine Months Ended Net Earnings
March 31, 2000 Income Shares Per Share
- -------------- ------------- ------------ -------------
<S> <C> <C> <C>
Basic earnings per share:
Income available to common shareholders $ 450,000 896,100 $ 0.50
--------
Dilutive Securities:
Management recognition plan shares 16,309
Stock option plan shares ---
------------- -----------
Dilutive earnings per share:
Income available to common shareholders
plus assumed conversions $ 450,000 912,409 $ 0.49
------------- ----------- --------
For the Nine Months Ended
March 31, 1999
- --------------
Basic earnings per share:
Income available to common shareholders $ 425,000 1,045,071 $ 0.41
--------
Dilutive Securities:
Management recognition plan shares 24,449
Stock option plan shares 12,386
------------- -----------
Dilutive earnings per share:
Income available to common shareholders
plus assumed conversions $ 425,000 1,081,907 $ 0.39
------------- ----------- --------
</TABLE>
4. COMPREHENSIVE INCOME
The Company has classified certain securities as available for sale in
accordance with Financial Accounting Standards Board Statement No. 115. For the
nine month period ended March 31, 2000 the net unrealized loss on these
securities increased by approximately $424,000. For the nine month period ended
March 31, 1999 the net unrealized gain on these securities increased by $3,000.
Pursuant to Statement No.115, any unrealized gain or loss activity of available
for sale securities is to be recorded as an adjustment to a separate component
of shareholders' equity, net of income tax effect. Accordingly, for the nine
month periods ended March 31, 2000 and 1999, the Company recognized a
corresponding adjustment in the accumulated other comprehensive income component
of equity.
Since comprehensive income is a measure of all nonowner changes in equity of an
enterprise that result from transactions and other economic events of the
period, this change in unrealized gain/loss serves to increase or decrease
comprehensive income. The following table represents comprehensive income for
the nine month periods ended March 31, 2000 and 1999:
Nine Months
Ended
March 31,
---------
2000 1999
----- ----
Net income $ 450 $ 425
Other comprehensive income (loss), net of tax:
Unrealized gain (loss) on securities (209) 3
---------- --------
Comprehensive income (loss) $ 241 $ 428
========== ========
7
<PAGE>
5. PENDING ACCOUNTING PRONOUNCEMENTS
The AICPA has issued Statements of Position 98-1, "Accounting for the Costs of
Computer Software Developed or Obtained for Internal Use". This statement
requires capitalization of external direct costs of materials and services;
payroll and payroll-related costs for employees directly associated; and
interests cost during development of computer software for internal use
(planning and preliminary costs should be expensed). Also, capitalized costs of
computer software developed or obtained for internal use should be amortized on
a straight-line basis unless another systematic and rational basis is more
representative of the software's use.
This statement is effective for financial statements for fiscal years beginning
after December 15, 1998 (prospectively) and is not expected to have a material
effect on the consolidated financial statements.
8
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The Southern Banc Company, Inc. (the "Company") was incorporated in the State of
Delaware in May 1995 for the purpose of becoming a holding company to own all of
the outstanding capital stock of The Southern Bank Company ("Bank"), formerly
the First Federal Savings & Loan Association of Gadsden.
COMPARISON OF FINANCIAL CONDITION AT MARCH 31, 2000 AND JUNE 30, 1999.
Total assets increased approximately $1.1 million or 1.11% from $96.9 million at
June 30, 1999 to $98.0 million at March 31, 2000. During the period ended March
31, 2000, net loans decreased approximately $1.1 million or 2.60%, securities
available for sale increased approximately $4.3 million or 20.01% and securities
held to maturity decreased approximately $95,000 or 0.40%.
Cash and cash equivalents decreased approximately $2.5 million or 29.04% from
$8.7 million to $6.2 million at March 31, 2000. The decrease in cash and cash
equivalents was primarily attributable to an increase in securities available
for sale.
During the period ended March 31, 2000, premises and equipment increased by
approximately $204,000 or 79.07%. The increase was primarily due to the
acquisition of a new branch facility for the Bank's Guntersville location.
Accrued interest and dividends receivable increased approximately $74,000 or
12.59% from $588,000 at June 30, 1999 to $662,000 at March 31, 2000. Prepaid
expenses and other assets increased approximately $239,000 or 131.32% from
$182,000 at June 30, 1999 to $421,000 at March 31, 2000. This increase was
primarily attributable to an increase in deferred tax relating to an increase in
unrealized gain on securities available for sale and prepaid federal income
taxes.
Total deposits increased approximately $1.6 million or 2.01% from $79.7 million
at June 30, 1999 to $81.3 million at March 31, 2000. Other liabilities during
the period ended March 31, 2000 decreased approximately $10,000 or 2.02% from
$496,000 at June 30, 1999 to $486,000 at March 31, 2000.
Total equity decreased approximately $428,000 or 2.57% from $16.6 million at
June 30, 1999 to $16.2 million at March 31, 2000. This change was primarily
attributable to an increase in retained earnings, additional paid-in capital,
and amortization of unearned compensation, offset in part by the payment of
common stock dividends and treasury stock purchases. Treasury stock at March 31,
2000 was $5.6 million.
COMPARISON OF RESULTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED MARCH
31, 2000 AND 1999.
The Company reported net income for the three and nine month periods ended March
31, 2000 of $166,000 and $450,000, respectively. Net income for the three month
period decreased approximately $10,000 or 5.68% from $176,000 at March 31, 1999
to $166,000 at March 31, 2000. For the nine month period, net income increased
approximately $25,000 or 5.88% from $425,000 at March 31, 1999 to $450,000 at
March 31, 2000.
Total Interest Income. For the nine months ended March 31, 2000, total interest
income decreased by approximately $115,000 or 2.15%. The decrease in total
interest income was primarily attributable to a decrease in interest and
dividends on securities held to maturity partially offset by increases in
interest and dividends on securities available for sale and interest income on
time deposits at the Federal Home Loan Bank.
Net Interest Income. Net interest income for the three months ended March 31,
2000 decreased $44,000 or 5.83%. For the nine months ended March 31, 2000, net
interest income increased $31,000 or 1.44%.
9
<PAGE>
Provision for Loan Losses. For the nine months ended March 31, 2000, provision
for loan losses decreased approximately $10,000 or 37.04% as compared to the
nine month period ended March 31, 1999. The allowance for loan losses is based
on management's evaluation of possible loan losses inherent in the Bank'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. There were no provisions for loan losses
during each of the three month periods ended March 31, 2000 and March 31, 1999.
Non-interest Income. Non-interest income decreased approximately $7,000 or
20.00% from $35,000 to $28,000 for the three month period ended March 31, 2000
compared to the three month period ended March 31, 1999. For the nine month
period ended March 31, 2000 non-interest income decreased approximately $57,000
or 39.86% from $143,000 to $86,000. The decrease in non-interest income for the
three and nine months ended March 31, 2000 was primarily attributable to an
decrease in prepayment penalties and mortgage loan origination fees. During the
nine month period ended March 31, 1999, the Bank recorded gains on the sale of
securities of approximately $33,000. There were no gains recorded during the
nine month period ended March 31, 2000.
Non-interest Expense. Non-interest expense decreased approximately $38,000 or
7.28% for the three month period ended March 31, 2000, from $522,000 to
$484,000. For the nine month period ended March 31, 2000, non-interest expense
decreased approximately $65,000 or 4.02%. Salaries and employee benefits
decreased approximately $32,000 or 9.07% for the three month period ended March
31, 2000 compared with the three month period ended March 31, 1999. For the nine
month period ended March 31, 2000, salaries and benefits decreased approximately
$64,000 or 5.77% compared with the nine month period ended March 31, 1999. The
decrease for the three and nine month period ended March 31, 2000 was primarily
attributable to a decrease in salary and benefit expenses related to certain
employee benefit plans. Other operating expenses decreased by $9,000 or 9.78%
and $15,000 or 5.30% for the three and nine month periods ended March 31, 2000
and 1999, respectively.
Provision for Income Taxes. For the three month period ended March 31, 2000,
provision for income tax expense decreased approximately $3,000 or 3.26%. For
the nine month period ended March 31, 2000, provision for income tax expense
increased approximately $24,000 or 10.86%. For the three month period ended
March 31, 2000, income before income taxes decreased approximately $13,000 or
4.85% as compared to the three month period ended March 31, 1999. For the nine
month period ended March 31, 2000, income before income taxes increased
approximately $49,000 or 7.59% compared to the nine month period ended March 31,
1999.
Liquidity and Capital Resources. As a holding company, the Company conducts its
business through its subsidiary, the Bank. The Bank 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 4.0%. The
Bank's average liquidity ratio well exceeded the required maximums at and during
the three and nine month periods ended March 31, 2000. The Bank adjusts its
liquidity levels in order to meet funding needs of deposit outflows, repayment
of borrowings and loan commitments. The Bank also adjusts liquidity as
appropriate to meet its asset and liability management objectives.
The Bank'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 Bank invests in short-term interest-earning
assets which provide liquidity to meet lending requirements.
The Bank is required to maintain certain levels of regulatory capital. At March
31, 2000, the Bank exceeded all minimum regulatory capital requirements.
10
<PAGE>
MARKET AREA
The Bank considers its primary market area to consist of Etowah, Cherokee and
Marshall Counties in which the Bank has its four offices. The City of Gadsden in
which the Bank's main office is located is in Etowah County, approximately 65
miles northeast of Birmingham, Alabama. Based upon the 1990 population census,
the combined population of Etowah, Cherokee and Marshall Counties was
approximately 100,000.
The economy in the Bank's market area includes a mixture of manufacturing and
agriculture. According to the Alabama Department of Industrial Relations, the
unemployment rates for June 1999 in Etowah, Cherokee and Marshall Counties were
6.7%, 4.8% and 6.5%, respectively, as compared to 4.5% for the state of Alabama.
FORWARD-LOOKING STATEMENTS
Management's discussion and analysis includes certain forward-looking statements
addressing, among other things, the Company's prospects for earnings, asset
growth and net interest margin. Forward-looking statements are accompanied by,
and identified with, such terms as "anticipates," "believes," "expects,"
"intends," and similar phrases. Management's expectations for the Company's
future involve a number of assumptions and estimates. Factors that could cause
actual results to differ from the expectations expressed herein include:
substantial changes in interest rates, and changes in the general economy;
changes in the Bank's strategies for credit-risk management, interest-rate risk
management and investment activities. Accordingly, any forward-looking
statements included herein do not purport to be predictions of future events or
circumstances and may not be realized.
11
<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, 2000, 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 and Use of Proceeds
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 20, 2000, The Southern Banc Company, Inc. announced a dividend
in the amount of $.0875 per share on or about June 12, 2000 to
stockholders of record at the close of business on May 12, 2000.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Exhibit 27 - Financial Data Schedule (SEC use only)
(b) Reports on Form 8-K
None
12
<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 15, 2000 By: /s/ James B. Little, Jr.
-------------------------------------------
James B. Little, Jr.
(Principal Executive and Financial Officer)
<TABLE> <S> <C>
<ARTICLE> 9
<MULTIPLIER> 1,000
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-2000
<PERIOD-END> MAR-31-2000
<EXCHANGE-RATE> 1
<CASH> 273
<INT-BEARING-DEPOSITS> 5,883
<FED-FUNDS-SOLD> 0
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 25,623
<INVESTMENTS-CARRYING> 23,612
<INVESTMENTS-MARKET> 23,341
<LOANS> 41,129
<ALLOWANCE> 115
<TOTAL-ASSETS> 97,954
<DEPOSITS> 81,251
<SHORT-TERM> 0
<LIABILITIES-OTHER> 486
<LONG-TERM> 0
0
0
<COMMON> 15
<OTHER-SE> 16,202
<TOTAL-LIABILITIES-AND-EQUITY> 97,954
<INTEREST-LOAN> 2,371
<INTEREST-INVEST> 2,521
<INTEREST-OTHER> 331
<INTEREST-TOTAL> 5,223
<INTEREST-DEPOSIT> 3,044
<INTEREST-EXPENSE> 0
<INTEREST-INCOME-NET> 2,179
<LOAN-LOSSES> 17
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1,553
<INCOME-PRETAX> 695
<INCOME-PRE-EXTRAORDINARY> 695
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 450
<EPS-BASIC> 0.50
<EPS-DILUTED> 0.49
<YIELD-ACTUAL> 2.97
<LOANS-NON> 0
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 115
<CHARGE-OFFS> 5
<RECOVERIES> 0
<ALLOWANCE-CLOSE> 110
<ALLOWANCE-DOMESTIC> 110
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
