The Southern Banc Company, Inc. Announces Preliminary Fourth Quarter Earnings

GADSDEN, Ala., Oct. 07, 2015 (GLOBE NEWSWIRE) — Gates Little, President and Chief Executive Officer of The Southern Banc Company, Inc. (OTCBB:SRNN), the holding company for The Southern Bank Company, announced preliminary unaudited results (subject to audit adjustments following the year-end audit) of operations for the fourth quarter and year ended June 30, 2015:

  • For the three months ended June 30, 2015, the Company reported net loss of approximately $57,000, or ($0.07) per basic and diluted share as compared to a net income of approximately $1,000, or $(0.00) per basic and diluted share, for the three  months ended June 30, 2014. 
     
  • For the fiscal year ended June 30, 2015, the Company recorded a net loss of approximately $410,000, or $(0.53) per basic and diluted share, as compared to a net loss of approximately $265,000, or $(0.34) per basic and diluted share, for the fiscal year ended June 30, 2014.
     
  • For the three months ended June 30, 2015, net interest income before provision for loan losses increased approximately $59,000, or 9.42% as compared to the same period in 2014. The increase in the net interest income for the three month period was primarily attributable to an increase in interest and fees on loans in the amount of approximately $151,000 offset by a decrease in interest and dividends on securities of approximately $74,000. For the three months ended June 30, 2015, interest paid on deposits and borrowings increased approximately $20,000.
     
  • For the fiscal year ended June 30, 2015, net interest income before provision for loan losses increased approximately $52,000, or 2.01% as compared to fiscal year 2014.  The increase in the net interest margin for the fiscal year was primarily attributable to an increase in total interest income of approximately $60,000, or 1.80%, offset by an increase in total interest expense of approximately $8,000, or 1.06%.  For the fiscal year ended June 30, 2015 provision for loan losses increased approximately $280,000. There was not a provision for loan losses for fiscal year 2014.
     
  • For the fiscal year ended June 30, 2015 non-interest income increased $99,000, or 32.35% as compared to fiscal year 2014.  The increase in non-interest income was primarily attributable to an increase in miscellaneous income of $115,000 offset by decreases in fees and other non-interest income and gains on sale of securities of approximately $16,000. This increase in non-interest income for the fiscal year was primarily attributable to a penalty received due to the prepayment of a bond in the bank’s portfolio.
  • For the three months ended June 30, 2015 total non-interest expenses increased approximately $15,000, or 1.75%, as compared to the same three month period in 2014.  The increase in non-interest expense for the three month period was primarily attributable to increases in data processing expenses, other operating expenses, salaries and benefits of approximately $63,000 offset in part by a decrease of approximately $48,000 or 34.29% in professional services expense.
     
  • For the fiscal year ended June 30, 2015, total non-interest expenses increased approximately $101,000, or 3.03%, as compared to fiscal year 2014.  The increase in non-interest expense for the fiscal year was primarily attributable to increases in occupancy expense, data processing expense, and other operating expense of approximately $135,000, offset in part by a decrease in professional services expense and salary and benefit expenses of approximately $34,000.

The Company’s total assets at June 30, 2015 were approximately $97.2 million, as compared to $94.3 million at June 30, 2014.  Total stockholders’ equity was approximately $14.2 million, or 14.6% of assets and $14.7 million, or 15.6% of assets at June 30, 2015 and 2014, respectively.

The unaudited financial information for the three and twelve months ended June 30, 2015 and 2014, has been prepared on the same basis as our audited financial information and includes, in the opinion of management, all adjustments necessary to present the data for such periods.  The Company expects to release its final year end results and its related audited financial statements in October 2015, following completion of the year end audit. Historical results are not necessarily indicative of future results.
               
The Bank has four full service banking offices located in Gadsden, Albertville, Guntersville, and Centre, AL, and one loan production office in Birmingham, AL. 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.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollar Amounts in Thousands)
           
    June 30,     June 30,
      2015         2014  
    (Unaudited)      
           
ASSETS

 

         
CASH AND CASH EQUIVALENTS  $   8,396     $   3,784  
SECURITIES AVAILABLE FOR SALE, at fair value      42,443         53,525  
SECURITIES HELD TO MATURITY, at amortized cost,
  fair value of $1,281 and $5,371, respectively 
    1         5  
FEDERAL HOME LOAN BANK (FHLB) STOCK     391         407  
           
LOANS AND LEASES RECEIVABLE,
net of allowance for loan losses of $551,103 and $360,670, respectively 
    43,936         34,904  
PREMISES AND EQUIPMENT, net      847         828  
ACCRUED INTEREST AND DIVIDENDS RECEIVABLE     274         291  
PREPAID EXPENSES AND OTHER ASSETS     877         593  
           
TOTAL ASSETS  $   97,165     $   94,337  
           
           
LIABILITIES

 

         
DEPOSITS $   75,279     $   72,064  
FHLB ADVANCES     7,156         7,156  
OTHER LIABILITIES     498         413  
           
TOTAL LIABILITIES     82,933         79,633  
           
           
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,
  806,086 shares outstanding
    15           15  
 Additional paid-in capital     13,887            13,887  
 Shares held in trust, at cost,
   32,643 shares
      (640 )          (640 )
 Retained earnings     9,524            9,935  
 Treasury stock, at cost,
  648,664 shares
      (8,825 )          (8,825 )
 Accumulated other comprehensive income     271            332  
 

TOTAL STOCKHOLDERS’ EQUITY

    14,232           14,704  
 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

$

  97,165     $      94,337  
           

         
                                                                                                                                                    

THE SOUTHERN BANC COMPANY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollar Amounts in Thousands, except per share data)
           
      Three Months Ended     Year Ended
    June 30,     June 30,
                       
    2015
(Unaudited)
      2014       2015
(Unaudited)
      2014  
                       
INTEREST INCOME:

 

                     
  Interest and fees on loans $   614     $   463     $   2,282     $   1,895  
  Interest and dividends on securities     266         340         1,092         1,419  
  Other interest income     6         4         20         20  
 

  Total interest income

    886         807          

3,394

         

3,334

 
 

INTEREST EXPENSE:

                     
  Interest on deposits     182         163         682         677  
  Interest on borrowings     19         18         78         75  
  Total interest expense     201         181         760         752  
  Net interest income before provision
  for loan losses
    685         626         2,634          2,582  
  Provision for loan losses     115           0         280         0  
  Net interest income after provision
   for loan losses
    570           626          2,354         2,582  
 

NON-INTEREST INCOME:

                     
  Fees and other non-interest income     37         54         120         134  
  Gain on sale of securities, net     160         162         160         162  
  Miscellaneous income     0         0         125         10  
  Total non-interest income     197         216         405         306  
 

NON-INTEREST EXPENSE:

                     
  Salaries and employee benefits     523         519         1,979         1,991  
  Equipment and Occupancy expenses     60         60         245         227  
  Professional Services Expense     92         140         356         378  
  Data Processing Expense     110         94         419         373  
  Other operating expense     86         43         431         360  
  Total non-interest expense     871         856         3,430         3,329  
  Loss before income taxes      
  (104

)

        (14 )         (671 )         (441 )
BENEFIT FOR INCOME TAXES       (47 )         (15 )         (261 )         (176 )
Net Loss $     (57 )   $     1     $     (410 )   $     (265 )
                                       
LOSS PER SHARE:                                      
Basic $   (0.07 )   $   (0.00 )   $   (0.53 )   $   (0.34 )
Diluted $     (0.07 )   $     (0.00 )   $     (0.53 )   $      (0.34 )
                       
                       
DIVIDENDS DECLARED PER SHARE $       $       $       $    
                       
AVERAGE SHARES OUTSTANDING:                      
  Basic      773,443          774,931          773,443          774,931  
  Diluted      773,443          774,931          773,443          774,931  

 

CONTACT: Contact: Gates Little
(256) 543-3860