Source: The Southern Banc Company, Inc.
ET

The Southern Banc Company, Inc. Announces Second Quarter Earnings

GADSDEN, Ala., Feb. 10, 2017 (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 $177,000, or ($0.23) per basic and diluted share, for the quarter ended December 31, 2016, as compared to a net loss of approximately $103,000, or ($0.13) per basic and diluted share, for the quarter ended December 31, 2015.  For the six-month period ended December 31, 2016 the Company recorded a net loss of approximately $283,000 as compared to a net loss of approximately $209,000 for the six-month period ended December 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 December 31, 2016 was approximately $820,000 as compared to approximately $750,000 for the quarter ended December 31, 2015, an increase of approximately $70,000 or 9.4%.  The improvement in the net interest margin for the quarter was primarily attributable to an increase in total interest income of approximately $57,000 and a decrease in total interest expense of approximately $13,000.  Provision for loan and lease losses increased approximately $199,000 during the quarter as compared to the same period in 2015.  Net interest income after provision for loan and lease losses decreased approximately $129,000 for the quarter ended December 31, 2016, as compared to the same quarter in 2015.  For the quarter ended December 31, 2016, total non-interest income increased approximately $3,000 or 8.8% while total non-interest expense decreased approximately $8,000 or 1.0% as compared to the same three month period in 2015.  The increase in non-interest income was primarily attributable to an increase in miscellaneous income of approximately $2,000.  The decrease in non-interest expense was primarily attributable to decreases in salaries and benefits of approximately $23,000, other operating expenses of approximately $11,000, offset in part by increases in professional service expenses of approximately $11,000 and data processing expenses of approximately $16,000.   

For the six-months ended December 31, 2016, net interest income increased approximately $201,000 or 13.6%.  Provision for loan and lease losses increased approximately $226,000 during the six-month period as compared to the same period in 2015.  Net interest income after provision for loan and lease losses decreased approximately $25,000 or 1.8% for the six-months ended December 31, 2016, as compared to the same quarter in 2015.  For the six-months ended December 31, 2016, total non-interest income increased approximately $8,000 or 13.8% while total non-interest expense increased approximately $102,000 or 5.8% as compared to the same period in 2015.  The increase in non-interest income was primarily attributable to an increase in the net gain on sale of securities of approximately $23,000 offset in part by a decrease in miscellaneous income of approximately $15,000 or 54.0%.  The increase in non-interest expense was primarily attributable to increases in salaries and benefits of approximately $43,000, occupancy expenses of approximately $2,000, professional fees of approximately $32,000, data processing fees of approximately $20,000 and other operating expenses of approximately $5,000. 

The Company’s total assets at December 31, 2016 were approximately $93.8 million, as compared to $97.9 million at June 30, 2016.  Total stockholders’ equity was approximately $12.3 million at December 31, 2016 or 13.1% 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. 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)
 
  December 31,  June 30,
  2016   2016 
      
      
ASSETS      
CASH AND CASH EQUIVALENTS $1,979  $1,463 
SECURITIES AVAILABLE FOR SALE, at fair value  31,239   36,103 
      
FEDERAL HOME LOAN BANK STOCK 218   388 
      
LOANS RECEIVABLE, net of allowance for loan losses of $1,038 and $758, respectively 57,449   57,121 
PREMISES AND EQUIPMENT, net  779   811 
ACCRUED INTEREST AND DIVIDENDS RECEIVABLE 257   247 
PREPAID EXPENSES AND OTHER ASSETS 1,878   1,754 
      
TOTAL ASSETS $93,799  $97,887 
      
      
LIABILITIES      
DEPOSITS$77,445  $78,771 
FHLB ADVANCES 3,255   5,190 
OTHER LIABILITIES 795   727 
      
TOTAL LIABILITIES 81,495   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, 39,260 shares   (706)    (640)
Retained earnings    7,883      8,166 
Treasury stock, at cost, 648,664 shares   (8,825)    (8,825)
Accumulated other comprehensive income   50      596 
 

TOTAL STOCKHOLDERS’ EQUITY
   12,304     13,199 
 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
 

$
  93,799  $  97,887 


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
  December 31,  December 31,
           
  2016
(Unaudited)
  2015
 
  2016
(Unaudited)
 2015 
           
INTEREST INCOME:           
Interest and fees on loans$819  $692  $1,670 $1,341 
Interest and dividends on securities 183   253   380  530 
Other interest income 4   4   10  11 
Total interest income 1,006   949   2,060  1,882 
INTEREST EXPENSE:          
Interest on deposits 179   190   366  377 
Interest on borrowings 7   9   16  28 
Total interest expense 186   199   382  405 
Net interest income before provision for loan losses 820   750   1,678  1,477 
Provision for loan losses 233   34   320  94 
Net interest income after provision for loan losses 587   716   1,358  1,383 
NON-INTEREST INCOME:          
Fees and other non-interest income 23   22   41  41 
Net gain on sale of securities 0   0   23  0 
Miscellaneous income 8   6   12  27 
Total non-interest income 31   28   76  68 
NON-INTEREST EXPENSE:          
Salaries and employee benefits 484   507   1,042  999 
Office building and equipment expenses 61   62   124  122 
Professional Services Expense 95   84   188  156 
Data Processing Expense 122   106   240  220 
Other operating expense 140   151   294  289 
Total non-interest expense 902   910   1,888  1,786 
Loss before income taxes  (284)         (166)           (454)   (335)
BENEFIT FOR INCOME TAXES   (107)    (63)    (171)   (126)
Net Loss$  (177) $  (103) $  (283)$  (209)
LOSS PER SHARE:              
Basic$  (0.23) $  (0.13) $  (0.37)$ (0.27)
Diluted$  (0.23) $  (0.13) $  (0.37)$  (0.27)
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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