Source: The Southern Banc Company, Inc.
ET

The Southern Banc Company, Inc. Announces Third Quarter Earnings

GADSDEN, Ala., May 10, 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 net income of approximately $92,000, or $0.12 per basic and diluted share, for the quarter ended March 31, 2016, as compared to a net loss of approximately $69,000, or ($0.09) per basic and diluted share, for the quarter ended March 31, 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 for the quarter ended March 31, 2016 was approximately $882,000, as compared to approximately $607,000 for the quarter ended March 31, 2015, an increase of approximately $275,000 or 45.4%.  The improvement in the net interest margin for the quarter was primarily attributable to an increase in total interest income of approximately $289,000 offset by an increase in total interest expense of approximately $14,000.  Provision for loan and lease losses decreased approximately $7,000 during the quarter as compared to the same period in 2015.  Net interest income after provision for loan and lease losses increased approximately $282,000 for the quarter ended March 31, 2016, as compared to the same quarter in 2015.  For the quarter ended March 31, 2016, total non-interest income increased approximately $36,000 or 24.5% while total non-interest expense increased approximately $61,000 or 7.4%, as compared to the same three month period in 2015.  The increase in non-interest income was primarily attributable to an increase in net gain on sale of securities offset in part by a decrease in customer service fees of approximately $7,000 and a decrease in miscellaneous income of approximately $117,000.  The decrease in miscellaneous income was primarily attributable to a bond prepayment penalty received in the quarter ended March 31, 2015.  The increase in non-interest expense was primarily attributable to increases in salaries and benefits of approximately $4,000, other operating expenses of approximately $20,000, data processing fees of approximately $2,000, professional service expenses of approximately $38,000 offset in part by a decrease in office building and equipment of approximately $3,000. 

For the nine months ended March 31, 2016, net interest income increased approximately $410,000 or 21.0%.  Provision for loan and lease losses decreased approximately $38,000 during the nine month period as compared to the same period in 2015.  Net interest income after provision for loan and lease losses increased approximately $448,000 or 25.1% for the nine months ended March 31, 2016, as compared to the same quarter in 2015.  For the nine months ended March 31, 2016, total non-interest income increased approximately $45,000 or 21.3% while total non-interest expense increased approximately $113,000 or 4.4% as compared to the same period in 2015.  The increase in non-interest income was primarily attributable to an increase in net gain on sale of securities of approximately $159,000 offset in part by decreases in customer service fees of approximately $14,000 and miscellaneous income of approximately $101,000.  The increase in non-interest expense was primarily attributable to increases in salaries and benefits of approximately $17,000, other operating expenses of approximately $76,000, and data processing expenses of approximately $24,000 offset in part by a decrease in office building and equipment expenses of approximately $4,000. 

The Company’s total assets at March 31, 2016 were approximately $100.1 million, as compared to $97.2 million at June 30, 2015.  Total stockholders’ equity was approximately $14.3 million at March 31, 2016 or 14.3% 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)
      
  March 31,  June 30,
   2016    2015 
      
      
ASSETS     
          
CASH AND CASH EQUIVALENTS$ 3,036  $ 8,396 
          
SECURITIES AVAILABLE FOR SALE, at fair value  37,159    42,443 
SECURITIES HELD TO MATURITY, at amortized cost,         
fair value of $0 and $1, respectively  0    1 
FEDERAL HOME LOAN BANK STOCK  388    391 
      
LOANS RECEIVABLE, net of allowance for loan losses         
of $525 and $551, respectively  57,413    43,936 
PREMISES AND EQUIPMENT, net  817    847 
ACCRUED INTEREST AND DIVIDENDS RECEIVABLE  288    274 
PREPAID EXPENSES AND OTHER ASSETS  958    877 
      
TOTAL ASSETS$ 100,059  $ 97,165 
      
      
LIABILITIES     
      
DEPOSITS$ 79,972  $ 75,279 
FHLB ADVANCES  5,000    7,156 
OTHER LIABILITIES  766    498 
      
TOTAL LIABILITIES  85,738    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  9,407    9,524 
Treasury stock, at cost,         
648,664 shares  (8,825)   (8,825)
Accumulated other comprehensive income  477    271 
          
TOTAL STOCKHOLDERS’ EQUITY  14,321    14,232 
          
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$ 100,059  $ 97,165 
      

                                                            

      
THE SOUTHERN BANC COMPANY, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollar Amounts in Thousands, except per share data)
      
  Three Months Ended  Year-to-Date
  March 31,  March 31,
           
  2016
(Unaudited)
   2015   2016
(Unaudited)
  2015 
           
INTEREST INCOME:          
                 
Interest and fees on loans$852 $ 592  $ 2,192 $ 1,668 
Interest and dividends on securities 228   199    759   826 
Other interest income 5   5    15   14 
                 
Total interest income 1,085   796    2,966   2,508 
           
INTEREST EXPENSE:          
Interest on deposits 192   169    568   500 
Interest on borrowings 11   20    39   59 
Total interest expense 203   189    607   559 
Net interest income before provision                
for loan losses 882   607    2,359   1,949 
Provision for loan losses 33   40    127   165 
Net interest income after provision                
for loan losses 849   567    2,232   1,784 
           
NON-INTEREST INCOME:          
Fees and other non-interest income 16   23    57   71 
Net gain on sale of securities 160   0    160   0 
Miscellaneous income 9   126    36   137 
Total non-interest income 185   149    253   208 
           
NON-INTEREST EXPENSE:          
Salaries and employee benefits 475   471    1,473   1,456 
Office building and equipment expenses 59   62    181   185 
Professional Services Expense 108   70    264   264 
Data Processing Expense 113   111    333   309 
Other operating expense 132   112    421   345 
Total non-interest expense 887   826    2,672   2,559 
Income / (Loss) before income taxes 147   (110)   (187)  (567)
PROVISION / (BENEFIT) FOR INCOME TAXES 55   (41)   (70)  (214)
                 
Net Income / (Loss)$92 $ (69) $ (117)$ (353)
                 
EARNINGS / (LOSS) PER SHARE:                
Basic$0.12 $ (0.09) $ (0.15)$ (0.46)
Diluted$0.12 $ (0.09) $ (0.15)$ (0.46)
           
DIVIDENDS DECLARED PER SHARE$--- $--- $---$---
           
AVERAGE SHARES OUTSTANDING:          
Basic 773,443   773,443    773,443   773,443 
Diluted 773,443   773,443    773,443   773,443 

 

Contact: Gates Little
(256) 543-3860

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