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.

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THE SOUTHERN BANC COMPANY, INC.
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THE SOUTHERN BANC COMPANY, INC.
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Contact: Gates Little
(256) 543-3860