The Southern Banc Company, Inc. Announces First Quarter

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News Desk 2018

Nov 4, 2016 at 2:00 PM

The Southern Banc Company, Inc. Announces First Quarter Earnings

GADSDEN, Ala., Nov. 04, 2016 (GLOBE NEWSWIRE) -- 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 approximately $106,000, or ($0.14) per basic and diluted share, for the quarter ended September 30, 2016, as compared to a net loss of approximately $105,000, or ($0.14) per basic and diluted share, for the quarter ended September 30, 2015.

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 2015. Net interest income before provision for loan losses for the quarter ended September 30, 2016 was approximately $858,000 as compared to approximately $727,000 for the quarter ended September 30, 2015, an increase of approximately $131,000 or 17.9%. The improvement in the net interest margin before provision for loan losses for the quarter was primarily attributable to an increase in total interest income of approximately $122,000 and a decrease in total interest expense of approximately $9,000. Provision for loan and lease losses increased approximately $26,000 during the quarter as compared to the same period in 2015. Net interest income after provision for loan and lease losses increased approximately $105,000, or 15.6% for the quarter ended September 30, 2016, as compared to the same quarter in 2015. For the quarter ended September 30, 2016, total non-interest income increased approximately $6,000 or 17.4% while total non-interest expense increased approximately $112,000 or 12.9% as compared to the same three month period in 2015. The increase in non-interest income was primarily attributable to a net gain on the sale of securities of approximately $23,000 offset in part by a decrease in miscellaneous income of approximately $17,000. The increase in non-interest expense was primarily attributable to an increase in salaries and benefits of approximately $66,000 from additions to sales staff, professional service expenses of approximately $22,000, data processing expenses of approximately $5,000 and other operating expenses of approximately $17,000.

The Company’s total assets at September 30, 2016 were $95.1 million, as compared to $97.8 million at June 30, 2016. Total stockholders’ equity was approximately $13.0 million at September 30, 2016 or 13.6% of total assets as compared to approximately $13.2 million at June 30, 2016 or approximately 13.5% of total assets.

The Bank has four offices located in Gadsden, Albertville, Guntersville, and Centre, Alabama. The stock of The Southern Banc Company, Inc. trades in the over-the-counter market on the OTC Pink Marketplace^® under the symbol “SRNN”.

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)

		September 30,				June 30,
			2016				2016


ASSETS

CASH AND CASH EQUIVALENTS	$		3,557		$		1,463

SECURITIES AVAILABLE FOR SALE, at fair value			33,449				36,103

FEDERAL HOME LOAN BANK STOCK			218				388

LOANS RECEIVABLE, net of allowance for loan losses of $844 and $551, respectively			55,127				57,121
PREMISES AND EQUIPMENT, net			795				811
ACCRUED INTEREST AND DIVIDENDS RECEIVABLE			192				247
PREPAID EXPENSES AND OTHER ASSETS			1,787				1,754

TOTAL ASSETS	$		95,125		$		97,887


LIABILITIES

DEPOSITS	$		78,211		$		78,771
FHLB ADVANCES			3,000				5,190
OTHER LIABILITIES			933				727

TOTAL LIABILITIES			82,144				84,688


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			13,887				13,887
Shares held in trust, at cost, 32,643 shares			(640	)			(640	)
Retained earnings			8,060				8,166
Treasury stock, at cost, 648,664 shares			(8,825	)			(8,825	)
Accumulated other comprehensive income			484				596

TOTAL STOCKHOLDERS’ EQUITY			12,981				13,199

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$		95,125		$		97,887

THE SOUTHERN BANC COMPANY, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Dollar Amounts in Thousands, except per share data)

		Three Months Ended
		September 30,

			2016				2015
		(Unaudited)				(Unaudited)
INTEREST INCOME:

Interest and fees on loans	$		851		$		649
Interest and dividends on securities			197				277
Other interest income			6				6

Total interest income			1,054				932

INTEREST EXPENSE:
Interest on deposits			187				187
Interest on borrowings			9				18
Total interest expense			196				205
Net interest income before provision for loan losses			858				727
Provision for loan losses			86				60
Net interest income after provision for loan losses			772				667

NON-INTEREST INCOME:
Fees and other non-interest income			18				18
Net gain on sale of securities			23				0
Miscellaneous income			4				21
Total non-interest income			45				39

NON-INTEREST EXPENSE:
Salaries and employee benefits			558				492
Office building and equipment expenses			63				61
Professional Services Expense			94				72
Data Processing Expense			118				113
Other operating expense			154				137
Total non-interest expense			987				875
Loss before income tax benefit			(170	)			(169	)

INCOME TAX BENEFIT			(64	)			(64	)
Net Loss	$		(106	)	$		(105	)

LOSS PER SHARE:
Basic	$		(0.14	)	$		(0.14	)
Diluted	$		(0.14	)	$		(0.14	)

DIVIDENDS DECLARED PER SHARE	$		0.00		$		0.00

AVERAGE SHARES OUTSTANDING:
Basic			773,443				773,443
Diluted			773,443				773,443

Contact: Gates Little (256) 543-3860

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