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

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