Source: The Southern Banc Company, Inc.
ET

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