Source: The Southern Banc Company, Inc.
ET

The Southern Banc Company, Inc. Announces Preliminary Fourth Quarter Earnings

GADSDEN, Ala., Oct. 07, 2015 (GLOBE NEWSWIRE) -- Gates Little, President and Chief Executive Officer of The Southern Banc Company, Inc. (OTCBB:SRNN), the holding company for The Southern Bank Company, announced preliminary unaudited results (subject to audit adjustments following the year-end audit) of operations for the fourth quarter and year ended June 30, 2015:

  • For the three months ended June 30, 2015, the Company reported net loss of approximately $57,000, or ($0.07) per basic and diluted share as compared to a net income of approximately $1,000, or $(0.00) per basic and diluted share, for the three  months ended June 30, 2014. 
     
  • For the fiscal year ended June 30, 2015, the Company recorded a net loss of approximately $410,000, or $(0.53) per basic and diluted share, as compared to a net loss of approximately $265,000, or $(0.34) per basic and diluted share, for the fiscal year ended June 30, 2014.
     
  • For the three months ended June 30, 2015, net interest income before provision for loan losses increased approximately $59,000, or 9.42% as compared to the same period in 2014. The increase in the net interest income for the three month period was primarily attributable to an increase in interest and fees on loans in the amount of approximately $151,000 offset by a decrease in interest and dividends on securities of approximately $74,000. For the three months ended June 30, 2015, interest paid on deposits and borrowings increased approximately $20,000.
     
  • For the fiscal year ended June 30, 2015, net interest income before provision for loan losses increased approximately $52,000, or 2.01% as compared to fiscal year 2014.  The increase in the net interest margin for the fiscal year was primarily attributable to an increase in total interest income of approximately $60,000, or 1.80%, offset by an increase in total interest expense of approximately $8,000, or 1.06%.  For the fiscal year ended June 30, 2015 provision for loan losses increased approximately $280,000. There was not a provision for loan losses for fiscal year 2014.
     
  • For the fiscal year ended June 30, 2015 non-interest income increased $99,000, or 32.35% as compared to fiscal year 2014.  The increase in non-interest income was primarily attributable to an increase in miscellaneous income of $115,000 offset by decreases in fees and other non-interest income and gains on sale of securities of approximately $16,000. This increase in non-interest income for the fiscal year was primarily attributable to a penalty received due to the prepayment of a bond in the bank’s portfolio.

  • For the three months ended June 30, 2015 total non-interest expenses increased approximately $15,000, or 1.75%, as compared to the same three month period in 2014.  The increase in non-interest expense for the three month period was primarily attributable to increases in data processing expenses, other operating expenses, salaries and benefits of approximately $63,000 offset in part by a decrease of approximately $48,000 or 34.29% in professional services expense.
     
  • For the fiscal year ended June 30, 2015, total non-interest expenses increased approximately $101,000, or 3.03%, as compared to fiscal year 2014.  The increase in non-interest expense for the fiscal year was primarily attributable to increases in occupancy expense, data processing expense, and other operating expense of approximately $135,000, offset in part by a decrease in professional services expense and salary and benefit expenses of approximately $34,000.


The Company’s total assets at June 30, 2015 were approximately $97.2 million, as compared to $94.3 million at June 30, 2014.  Total stockholders’ equity was approximately $14.2 million, or 14.6% of assets and $14.7 million, or 15.6% of assets at June 30, 2015 and 2014, respectively.

The unaudited financial information for the three and twelve months ended June 30, 2015 and 2014, has been prepared on the same basis as our audited financial information and includes, in the opinion of management, all adjustments necessary to present the data for such periods.  The Company expects to release its final year end results and its related audited financial statements in October 2015, following completion of the year end audit. Historical results are not necessarily indicative of future results.
               
The Bank has four full service banking offices located in Gadsden, Albertville, Guntersville, and Centre, AL, and one loan production office in Birmingham, AL. The stock of The Southern Banc Company, Inc. is listed on the OTC Bulletin Board 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.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollar Amounts in Thousands)
      
  June 30,  June 30,
   2015    2014 
  (Unaudited)   
      
ASSETS

 
     
CASH AND CASH EQUIVALENTS $ 8,396  $ 3,784 
SECURITIES AVAILABLE FOR SALE, at fair value   42,443    53,525 
SECURITIES HELD TO MATURITY, at amortized cost,
  fair value of $1,281 and $5,371, respectively 
  1    5 
FEDERAL HOME LOAN BANK (FHLB) STOCK  391    407 
      
LOANS AND LEASES RECEIVABLE,
net of allowance for loan losses of $551,103 and $360,670, respectively 
  43,936    34,904 
PREMISES AND EQUIPMENT, net   847    828 
ACCRUED INTEREST AND DIVIDENDS RECEIVABLE  274    291 
PREPAID EXPENSES AND OTHER ASSETS  877    593 
      
TOTAL ASSETS $ 97,165  $ 94,337 
      
      
LIABILITIES

 
     
DEPOSITS$ 75,279  $ 72,064 
FHLB ADVANCES  7,156    7,156 
OTHER LIABILITIES  498    413 
      
TOTAL LIABILITIES  82,933    79,633 
      
      
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,
  806,086 shares outstanding
  15      15 
 Additional paid-in capital  13,887       13,887 
 Shares held in trust, at cost,
   32,643 shares
    (640)      (640)
 Retained earnings  9,524       9,935 
 Treasury stock, at cost,
  648,664 shares
    (8,825)      (8,825)
 Accumulated other comprehensive income  271       332 
 

TOTAL STOCKHOLDERS’ EQUITY
  14,232      14,704 
 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
 

$
 97,165  $    94,337 
      

         
                                                                                                                                                    

THE SOUTHERN BANC COMPANY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollar Amounts in Thousands, except per share data)
      
    Three Months Ended  Year Ended
  June 30,  June 30,
            
  2015
(Unaudited)
   2014   2015
(Unaudited)
   2014 
            
INTEREST INCOME:

 
           
  Interest and fees on loans$ 614  $ 463  $ 2,282  $ 1,895 
  Interest and dividends on securities  266    340    1,092    1,419 
  Other interest income  6    4    20    20 
 

  Total interest income
  886    807     

3,394
     

3,334
 
 

INTEREST EXPENSE:
           
  Interest on deposits  182    163    682    677 
  Interest on borrowings  19    18    78    75 
  Total interest expense  201    181    760    752 
  Net interest income before provision
  for loan losses
  685    626    2,634     2,582 
  Provision for loan losses  115      0    280    0 
  Net interest income after provision
   for loan losses
  570      626     2,354    2,582 
 

NON-INTEREST INCOME:
           
  Fees and other non-interest income  37    54    120    134 
  Gain on sale of securities, net  160    162    160    162 
  Miscellaneous income  0    0    125    10 
  Total non-interest income  197    216    405    306 
 

NON-INTEREST EXPENSE:
           
  Salaries and employee benefits  523    519    1,979    1,991 
  Equipment and Occupancy expenses  60    60    245    227 
  Professional Services Expense  92    140    356    378 
  Data Processing Expense  110    94    419    373 
  Other operating expense  86    43    431    360 
  Total non-interest expense  871    856    3,430    3,329 
  Loss before income taxes   
  (104


)
     (14)     (671)     (441)
BENEFIT FOR INCOME TAXES    (47)     (15)     (261)     (176)
Net Loss$   (57) $   1  $   (410) $   (265)
                    
LOSS PER SHARE:                   
Basic$ (0.07) $ (0.00) $ (0.53) $ (0.34)
Diluted$   (0.07) $   (0.00) $   (0.53) $    (0.34)
            
            
DIVIDENDS DECLARED PER SHARE$ ---  $ ---  $ ---  $ --- 
            
AVERAGE SHARES OUTSTANDING:           
  Basic   773,443     774,931     773,443     774,931 
  Diluted   773,443     774,931     773,443     774,931 

 

Contact: Gates Little
(256) 543-3860

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