The Southern Banc Company, Inc. Announces First Quarter Earnings

GADSDEN, Ala., Nov. 09, 2018 (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 approximately $126,000, or $0.16 per basic and diluted share, for the quarter ended September 30, 2018, as compared to a net loss of approximately $177,000, or ($0.23) per basic and diluted share, for the quarter ended September 30, 2017. 

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 2017. Net interest income before provision for loan losses for the quarter ended September 30, 2018 was approximately $1.2 million as compared to approximately $1.1 million for the quarter ended September 30, 2017, an increase of approximately $38,000 or 3.3%. The improvement in the net interest margin before provision for loan losses for the quarter was primarily attributable to an increase in total interest income of approximately $48,000, offset by an increase in total interest expense of approximately $10,000. Provision for loan and lease losses decreased approximately ($570,000) during the quarter as compared to the same period in 2017. Net interest income after provision for loan and lease losses increased approximately $608,000, or 107.1% for the quarter ended September 30, 2018, as compared to the same quarter in 2017. For the quarter ended September 30, 2018, total non-interest income decreased approximately $1,000 or (1.6%) while total non-interest expense increased approximately $153,000 or 17.1% as compared to the same three month period in 2017. The decrease in non-interest income was primarily attributable to a decrease in miscellaneous income of approximately ($8,000) or (45.3%) offset in part by an increase in customer service fees of approximately $7,000 or 30.7%. The increase in non-interest expense was primarily attributable to an increase in salaries and benefits of approximately $73,000, professional service expenses of approximately $38,000, data processing expenses of approximately $18,000 and other operating expenses of approximately $26,000 offset in part by a decrease in occupancy expenses of approximately ($2,000). 

The Company’s total assets at September 30, 2018 were $94.5 million, as compared to $94.1 million at June 30, 2018. Total stockholders’ equity was approximately $11.0 million at September 30, 2018 or 11.6% of total assets as compared to approximately $10.9 million at June 30, 2018 or approximately 11.6% 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 attached)

           
THE SOUTHERN BANC COMPANY, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollar Amounts in Thousands)
           
    September 30,     June 30,
    2018     2018
           
           
ASSETS          
CASH AND CASH EQUIVALENTS $ 9,453     $ 4,208  
SECURITIES AVAILABLE FOR SALE, at fair value   18,575       19,599  
           
FEDERAL HOME LOAN BANK STOCK   301       429  
           
LOANS RECEIVABLE, net of allowance for loan losses
  of $1,081 and $1,093, respectively
  63,601       67,218  
PREMISES AND EQUIPMENT, net   738       715  
ACCRUED INTEREST AND DIVIDENDS RECEIVABLE   190       207  
PREPAID EXPENSES AND OTHER ASSETS   1,606       1,705  
           
TOTAL ASSETS $ 94,464     $ 94,081  
           
           
LIABILITIES

         
DEPOSITS $ 76,736     $ 77,014  
FHLB ADVANCES   5,000       6,000  
OTHER LIABILITIES   1,724       157  
           
TOTAL LIABILITIES   83,460       83,171  
           
           
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, 39,260 shares at cost,
  respectively
  (706 )     (706 )
Retained earnings   6,939       6,813  
Treasury stock, at cost,
  648,664 shares
  (8,825 )     (8,825 )
Accumulated other comprehensive income   (306 )     (274 )
TOTAL STOCKHOLDERS’ EQUITY   11,004       10,910  
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 94,464     $ 94,081  
           

     
THE SOUTHERN BANC COMPANY, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollar Amounts in Thousands, except per share data)
     
    Three Months Ended
    September 30,
           
    2018     2017
    (Unaudited)     (Unaudited)
INTEREST INCOME:

         
Interest and fees on loans $ 1,244   $ 1,164  
Interest and dividends on securities   114     161  
Other interest income   22     7  
Total interest income   1,380     1,332  
INTEREST EXPENSE:          
Interest on deposits   182     168  
Interest on borrowings   23     27  
Total interest expense   205     195  
Net interest income before provision for loan losses   1,175     1,137  
Provision for loan losses   0     570  
Net interest income after provision for loan losses   1,175     567  

NON-INTEREST INCOME:

         
Fees and other non-interest income   30     23  
Net gain on sale of securities   0     0  
Miscellaneous income   9     17  
Total non-interest income   39     40  
           
NON-INTEREST EXPENSE:          
Salaries and employee benefits   591     518  
Office building and equipment expenses   55     57  
Professional Services Expense   116     78  
Data Processing Expense   130     112  
Other operating expense   152     126  
Total non-interest expense   1,044     891  
Income (Loss) before income tax expense (benefit)   170     (284 )
INCOME TAX EXPENSE (BENEFIT)   44     (107 )
Net Income (Loss) $ 126   $ (177 )
LOSS PER SHARE:            
Basic $ 0.16   $ (0.23 )
Diluted $ 0.16   $ (0.23 )
DIVIDENDS DECLARED PER SHARE $ 0.00   $ 0.00  
           
AVERAGE SHARES OUTSTANDING:          
Basic   766,826     766,826  
Diluted   766,826     766,826  
             

Contact: Gates Little
(256) 543-3860

Share this post