Source: The Southern Banc Company, Inc.
ET

The Southern Banc Company, Inc. Announces Third Quarter Earnings

GADSDEN, Ala., May 11, 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 $63,000, or ($0.08) per basic and diluted share, for the quarter ended March 31, 2017, as compared to net income of approximately $92,000, or $0.12 per basic and diluted share, for the quarter ended March 31, 2016.  For the nine-month period ended March 31, 2017 the Company recorded a net loss of approximately $346,000 as compared to a net loss of approximately $117,000 for the nine-month period ended March 31, 2016.   

Gates Little, President and Chief Executive Officer of the Company stated that the Company’s net interest margins decreased during the quarter as compared to the same period in 2016. Net interest income for the quarter ended March 31, 2017 was approximately $844,000 as compared to approximately $882,000 for the quarter ended March 31, 2016, a decrease of approximately $38,000 or 4.3%.  The decrease in the net interest margin for the quarter was primarily attributable to a decrease in total interest income of approximately $61,000 and a decrease in total interest expense of approximately $23,000.  Provision for loan and lease losses increased approximately $43,000 during the quarter as compared to the same period in 2016.  Net interest income after provision for loan and lease losses decreased approximately $81,000 for the quarter ended March 31, 2017, as compared to the same quarter in 2016.  For the quarter ended March 31, 2017, total non-interest income decreased approximately $154,000 or 83.0% while total non-interest expense increased approximately $13,000 or 1.6% as compared to the same three month period in 2016.  The decrease in non-interest income was primarily attributable to a decrease in net gain on sale of securities of approximately $160,000.  The increase in non-interest expense was primarily attributable to increases in salaries and benefits of approximately $32,000, occupancy expenses of approximately $4,000, data processing expenses of approximately $5,000 and other operating expenses of approximately $5,000, offset in part by a decrease in professional service expenses of approximately $33,000.   

For the nine-months ended March 31, 2017, net interest income increased approximately $163,000 or 6.9%.  Provision for loan and lease losses increased approximately $269,000 or 212.3% during the nine-month period as compared to the same period in 2016.  Net interest income after provision for loan and lease losses decreased approximately $106,000 or 4.8% for the nine-months ended March 31, 2017, as compared to the same period in 2016.  For the nine-months ended March 31, 2017, total non-interest income decreased approximately $145,000 or 57.2% while total non-interest expense increased approximately $117,000 or 4.4% as compared to the same period in 2016.  The decrease in total non-interest income was primarily attributable to a decrease in the net gain on sale of securities of approximately $137,000 and a decrease in miscellaneous income of approximately $13,000 or 34.1% offset in part by an increase in customer service fees of approximately $5,000 or 7.2%.  The increase in non-interest expense was primarily attributable to increases in salaries and benefits of approximately $77,000, occupancy expenses of approximately $5,000, data processing fees of approximately $25,000 and other operating expenses of approximately $10,000. 

The Company’s total assets at March 31, 2017 were approximately $94.4 million, as compared to $97.9 million at June 30, 2016.  Total stockholders’ equity was approximately $12.2 million at March 31, 2017 or 13.0% 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)
 
  March  31,  June 30,
  2017   2016 
      
      
ASSETS

     
CASH AND CASH EQUIVALENTS$4,534  $1,463 
        
SECURITIES AVAILABLE FOR SALE, at fair value 29,750   36,103 
      
FEDERAL HOME LOAN BANK STOCK 297   388 
      
LOANS RECEIVABLE, net of allowance for loan losses
  of $915 and $758, respectively
 56,940   57,121 
PREMISES AND EQUIPMENT, net 771   811 
ACCRUED INTEREST AND DIVIDENDS RECEIVABLE 183   247 
PREPAID EXPENSES AND OTHER ASSETS 1,919   1,754 
      
TOTAL ASSETS$94,394  $97,887 
      
      
LIABILITIES
     
      
DEPOSITS$75,767  $78,771 
FHLB ADVANCES 5,000   5,190 
OTHER LIABILITIES 1,385   727 
      
TOTAL LIABILITIES 82,152   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 and 32,643 shares, respectively
 (706)  (640)
Retained earnings 7,819   8,166 
Treasury stock, at cost,
  648,664 shares
 (8,825)  (8,825)
Accumulated other comprehensive income 52   596 
        
TOTAL STOCKHOLDERS’ EQUITY 12,242   13,199 
        
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$94,394  $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
  March 31,  March 31,
           
  2017
(Unaudited)
  2016

  2017
(Unaudited)
 2016

           
INTEREST INCOME:          
Interest and fees on loans$843  $852 $2,513 $2,192 
Interest and dividends on securities 175   228  555  759 
Other interest income 6   5  16  15 
              
Total interest income 1,024   1,085  3,084  2,966 
              
INTEREST EXPENSE:          
Interest on deposits 170   192  536  568 
Interest on borrowings 10   11  26  39 
Total interest expense 180   203  562  607 
Net interest income before provision
  for loan losses
 844   882  2,522  2,359 
Provision for loan losses 76   33  396  127 
Net interest income after provision
  for loan losses
 768   849  2,126  2,232 
              
NON-INTEREST INCOME:          
Fees and other non-interest income 20   16  62  57 
Net gain on sale of securities 0   160  23  160 
Miscellaneous income 11   9  23  36 
Total non-interest income 31   185  108  253 
           
NON-INTEREST EXPENSE:          
Salaries and employee benefits 507   475  1,550  1,473 
Office building and equipment expenses   63   59  186  181 
Professional Services Expense 75   108  264  264 
Data Processing Expense 118   113  358  333 
Other operating expense 137   132  431  421 
  Total non-interest expense 900   887  2,789  2,672 
              
Loss before income taxes        (101)  147  (555) (187)
              
BENEFIT FOR INCOME TAXES (38)  55  (209) (70)
              
Net Loss$(63) $92 $(346)$(117)
              
LOSS PER SHARE:             
Basic$(0.08) $0.12 $(0.45)$(0.15)
Diluted$(0.08) $0.12 $(0.45)$(0.15)
              
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