Source: The Southern Banc Company, Inc.
ET

The Southern Banc Company, Inc. Announces First Quarter Earnings

GADSDEN, Ala., Nov. 10, 2015 (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 $105,000, or ($0.14) per basic and diluted share, for the quarter ended September 30, 2015, as compared to a net loss of approximately $139,000, or ($0.18) per basic and diluted share, for the quarter ended September 30, 2014. 

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 2014. Net interest income for the quarter ended September 30, 2015 was approximately $727,000 as compared to approximately $690,000 for the quarter ended September 30, 2014, an increase of approximately $37,000 or 5.4%.  The improvement in the net interest margin for the quarter was primarily attributable to an increase in total interest income of approximately $61,000 offset by an increase in total interest expense of approximately $24,000.  Provision for loan and lease losses increased approximately $60,000 during the quarter as compared to the same period in 2014.  Net interest income after provision for loan and lease losses decreased approximately $23,000 for the quarter ended September 30, 2015, as compared to the same quarter in 2014.  For the quarter ended September 30, 2015, total non-interest income increased approximately $11,000 or 38.1% while total non-interest expense decreased approximately $66,000 or 7.1% as compared to the same three month period in 2014.  The increase in non-interest income was primarily attributable to an increase in miscellaneous income of approximately $15,000 offset by a decrease in customer service fees of approximately $4,000.  The decrease in non-interest expense was primarily attributable to a decrease in salaries and benefits of approximately $36,000, professional service expenses of approximately $25,000 and other operating expenses of approximately $17,000. 

The Company’s total assets at September 30, 2015 were $98.0 million, as compared to $97.2 million at June 30, 2015.  Total stockholders’ equity was approximately $14.3 million at September 30, 2015 or 14.6% of total assets as compared to approximately $14.2 million at June 30, 2015 or approximately 14.6% of total assets.

The Bank has four offices located in Gadsden, Albertville, Guntersville, and Centre, Alabama. 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.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollar Amounts in Thousands)
      
  September 30,  June 30,
   2015    2015 
      
      
ASSETS     
      
CASH AND CASH EQUIVALENTS$ 7,558  $ 8,396 
          
SECURITIES AVAILABLE FOR SALE, at fair value  43,197    42,443 
SECURITIES HELD TO MATURITY, at amortized cost, fair value of $1  1    1 
FEDERAL HOME LOAN BANK STOCK  391    391 
      
LOANS RECEIVABLE, net of allowance for loan losses of $458 and $551, respectively  44,842    43,936 
PREMISES AND EQUIPMENT, net  835    847 
ACCRUED INTEREST AND DIVIDENDS RECEIVABLE  294    274 
PREPAID EXPENSES AND OTHER ASSETS  919    877 
      
TOTAL ASSETS$ 98,037  $ 97,165 
      
      
LIABILITIES     
      
DEPOSITS$ 77,846  $ 75,279 
FHLB ADVANCES  5,156    7,156 
OTHER LIABILITIES  700    498 
      
TOTAL LIABILITIES  83,702    82,933 
      
      
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  9,419    9,524 
Treasury stock, at cost, 648,664 shares  (8,825)   (8,825)
Accumulated other comprehensive income  479    271 
          
TOTAL STOCKHOLDERS’ EQUITY  14,335    14,232 
          
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$ 98,037  $ 97,165 
      

 

 
THE SOUTHERN BANC COMPANY, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollar Amounts in Thousands, except per share data)
 
  Three Months Ended
  September 30,
      
   2015    2014 
  (Unaudited)  (Unaudited)
INTEREST INCOME:     
          
Interest and fees on loans$ 649  $ 544 
Interest and dividends on securities  277    323 
Other interest income  6    4 
          
Total interest income  932    871 
      
INTEREST EXPENSE:     
Interest on deposits  187    162 
Interest on borrowings  18    19 
Total interest expense  205    181 
Net interest income before provision for loan losses  727    690 
Provision for loan losses  60    0 
Net interest income after provision for loan losses  667    690 
      
NON-INTEREST INCOME:     
Fees and other non-interest income  18    22 
Net gain on sale of securities  0    0 
Miscellaneous income  21    6 
Total non-interest income  39    28 
      
NON-INTEREST EXPENSE:     
Salaries and employee benefits  492    528 
Office building and equipment expenses  61    64 
Professional Services Expense  72    97 
Data Processing Expense  113    98 
Other operating expense  137    154 
Total non-interest expense  874    941 
Loss before income tax benefit  (169)   (223)
          
INCOME TAX BENEFIT  (64)   (84)
          
Net Loss$ (105) $ (139)
          
LOSS PER SHARE:         
Basic$ (0.14) $ (0.18)
Diluted$ (0.14) $ (0.18)
          
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