-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, NPHqP/BLXWVzXIkhmmMAhIKAoE1NeleBwuENSDE6W5AjaB9lPVnX5qvsbtn1ngDK y+zZqVHNTJEKG08KMWH3zg== 0001025537-00-000078.txt : 20000516 0001025537-00-000078.hdr.sgml : 20000516 ACCESSION NUMBER: 0001025537-00-000078 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000331 FILED AS OF DATE: 20000515 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SOUTHERN BANC CO INC CENTRAL INDEX KEY: 0000946453 STANDARD INDUSTRIAL CLASSIFICATION: SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035] IRS NUMBER: 631146351 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10QSB SEC ACT: SEC FILE NUMBER: 001-13964 FILM NUMBER: 634324 BUSINESS ADDRESS: STREET 1: 221 S. 6TH STREET CITY: GADSDEN STATE: AL ZIP: 35901-4102 BUSINESS PHONE: 2055433860 MAIL ADDRESS: STREET 1: 221 S 6TH STREET CITY: GADSDEN STATE: AL ZIP: 35901-4102 10QSB 1 FORM 10QSB FOR THE SOUTHERN BANC COMPANY, INC. 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 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 THE SOUTHERN BANC COMPANY, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Dollar Amounts in Thousands, except per share data)
Three Months Ended Nine Months Ended March 31, March 31, -------- -------- -------- -------- 2000 1999 2000 1999 INTEREST INCOME: 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
The accompanying notes are an integral part of these condensed consolidated statements. 3 THE SOUTHERN BANC COMPANY, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollar Amounts in Thousands)
For The Nine Months Ended March 31, 2000 1999 ---- ---- CASH FLOWS FROM OPERATING ACTIVITIES: 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 ========== ==========
4 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 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:
For the Three Months Ended Net Earnings March 31, 2000 Income Shares Per Share - -------------- ------------- ------------ ------------- 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 ------------- ----------- --------
6
For the Nine Months Ended Net Earnings March 31, 2000 Income Shares Per Share - -------------- ------------- ------------ ------------- 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 ------------- ----------- --------
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 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 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 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 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 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 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) EX-27 2 FDS -- THE SOUTHERN BANC COMPANY, INC.
9 1,000 U.S. DOLLARS 3-MOS JUN-30-2000 MAR-31-2000 1 273 5,883 0 0 25,623 23,612 23,341 41,129 115 97,954 81,251 0 486 0 0 0 15 16,202 97,954 2,371 2,521 331 5,223 3,044 0 2,179 17 0 1,553 695 695 0 0 450 0.50 0.49 2.97 0 0 0 0 115 5 0 110 110 0 0
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