GADSDEN, Ala., Nov. 09, 2020 (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 income of $28,984, or $0.04 per basic and diluted share, for the quarter ended September 30, 2020, as compared to a net income $126,221, or $0.16 per basic and diluted share, for the quarter ended September 30, 2019.

Gates Little, President and Chief Executive Officer of the Company stated that the Company’s net interest margins decreased by approximately $217,000 or (18.69%) during the quarter as compared to the same period in 2019. Net interest income before provision for loan losses was approximately $943,000 and $1.2 million for the quarters ended September 30, 2020 and 2019, respectively. For the three-months ended September 30, 2020 total interest income decreased approximately $244,000 or (16.86%) as compared to the same period in 2019. Total interest expense decreased approximately $27,000 or (9.41%) for the three-months ended September 30, 2020 as compared to the same period in 2019. Provision for loan and lease losses decreased approximately $6,000 during the quarter as compared to the same period in 2019. Net interest income after provision for loan and lease losses decreased approximately $211,000, or (18.26%) for the quarter ended September 30, 2020, as compared to the same quarter in 2019. For the quarter ended September 30, 2020, total non-interest income increased approximately $19,000 or 50.77% while total non-interest expense decreased approximately $60,000 or (5.86%) as compared to the same three-month period in 2019. The increase in non-interest income was primarily attributable to an increase in miscellaneous income of approximately $22,000 or 269.29% offset in part by a decrease in customer service fees of approximately $2,700 or (8.97%). The decrease in non-interest expense was primarily attributable to decreases in salaries and benefits of approximately $39,000 or (6.72%), professional service expenses of approximately $13,000 or (13.13%) and other operating expenses of approximately $21,000 or (14.90%) offset in part by an increase in data processing expenses of approximately $16,000 or 12.29%.

President Little continued, “the Company’s interest margins decreased due to lower interest rates and higher prepayments due to the actions of the Federal Reserve in response to the COVID -19 epidemic. We have had a resurgence in loan demand, however, and have recovered much of the lost loan volume, albeit at lower interest rates.”

The Company’s total assets at September 30, 2020 were $102.8 million, as compared to $103.3 million at June 30, 2020. Total stockholders’ equity was approximately $12.4 million at September 30, 2020 or 12.1% of total assets as compared to approximately $12.3 million at June 30, 2020 or approximately 12.0% 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 on following pages)

THE SOUTHERN BANC COMPANY, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollar Amounts in Thousands)

  September 30,  June 30,
  2020   2020 
  Unaudited  Audited
      
ASSETS

     
CASH AND CASH EQUIVALENTS        $12,559  $25,766 
SECURITIES AVAILABLE FOR SALE, at fair value                         35,393   25,874 
      
FEDERAL HOME LOAN BANK STOCK 174   174 
      
LOANS RECEIVABLE, net         of allowance for loan losses
of $801 and $895, respectively        
 52,395   49,105 
PREMISES AND EQUIPMENT, net         729   736 
ACCRUED INTEREST AND DIVIDENDS RECEIVABLE 252   224 
PREPAID EXPENSES AND OTHER ASSETS 1,330   1,423 
      
TOTAL ASSETS        $102,832  $103,302 
      
      
LIABILITIES

     
DEPOSITS$86,529  $88,766 
FHLB ADVANCES 0   0 
OTHER LIABILITIES 3,909   2,188 
      
TOTAL LIABILITIES 90,438   90,954 
      
STOCKHOLDERS' EQUITY:      
Preferred stock, par value $.01 per share
500,000 shares authorized, no shares issued
and outstanding
 0   0 
Common stock, par value $.01 per share,
3,500,000 authorized, 1,454,750 shares issued
 15   15 
Additional paid-in capital 13,911   13,906 
Shares held in trust, 44,506 shares at cost,
respectively
 (754)  (754)
Retained earnings 7,621   7,592 
Treasury stock, at cost,
648,664 shares
 (8,825)  (8,825)
Accumulated other comprehensive income 426   414 


TOTAL STOCKHOLDERS’ EQUITY
 12,394   12,348 


TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY


$
102,832  $103,302 
      



THE SOUTHERN BANC COMPANY, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollar Amounts in Thousands, except per share data)

                        

                                                         Three Months Ended
  September 30,
      
  2020  2019
  (Unaudited)  (Unaudited)
INTEREST INCOME:
     
Interest and fees on loans$1,049 $1,252
Interest and dividends on securities 150  107
Other interest income 2  84
Total interest income 1,201  1,443
INTEREST EXPENSE:     
Interest on deposits 258  280
Interest on borrowings 0  4
Total interest expense 258  284
Net interest income before provision
for loan losses
 943  1,159
Provision for loan losses 0  6
Net interest income after provision
for loan losses
 943  1,153


NON-INTEREST INCOME:
     
Fees and other non-interest income 28  30
Net gain on sale of securities 0  0
Miscellaneous income 30  8
Total non-interest income 58  38
      


NON-INTEREST EXPENSE:
     
Salaries and employee benefits 546  585
Office building and equipment expenses 59  60
Professional Services Expense 88  102
Data Processing Expense 145  129
Other operating expense 122  143
Total non-interest expense 960  1,019
Income before income tax expense 41  172


INCOME TAX EXPENSE
 12  46
Net Income$29 $126
LOSS PER SHARE:     
Basic$0.04 $0.16
Diluted$0.04 $0.16


DIVIDENDS DECLARED PER SHARE


$
0.00 

$
0.00
      
AVERAGE SHARES OUTSTANDING:     
Basic 764,146  766,826
Diluted 764,146  766,826


Contact: Gates Little
(256) 543-3860