The Southern Banc Company, Inc. Announces First Quarter Earnings

GADSDEN, Ala., Nov. 04, 2016 (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 loss of approximately $106,000, or ($0.14) per basic and diluted share, for the quarter ended September 30, 2016, as compared to a net loss of approximately $105,000, or ($0.14) per basic and diluted share, for the quarter ended September 30, 2015. 

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 2015. Net interest income before provision for loan losses for the quarter ended September 30, 2016 was approximately $858,000 as compared to approximately $727,000 for the quarter ended September 30, 2015, an increase of approximately $131,000 or 17.9%.  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 $122,000 and a decrease in total interest expense of approximately $9,000.  Provision for loan and lease losses increased approximately $26,000 during the quarter as compared to the same period in 2015.  Net interest income after provision for loan and lease losses increased approximately $105,000, or 15.6% for the quarter ended September 30, 2016, as compared to the same quarter in 2015.  For the quarter ended September 30, 2016, total non-interest income increased approximately $6,000 or 17.4% while total non-interest expense increased approximately $112,000 or 12.9% as compared to the same three month period in 2015.  The increase in non-interest income was primarily attributable to a net gain on the sale of securities of approximately $23,000 offset in part by a decrease in miscellaneous income of approximately $17,000.  The increase in non-interest expense was primarily attributable to an increase in salaries and benefits of approximately $66,000 from additions to sales staff, professional service expenses of approximately $22,000, data processing expenses of approximately $5,000 and other operating expenses of approximately $17,000. 

The Company's total assets at September 30, 2016 were $95.1 million, as compared to $97.8 million at June 30, 2016.  Total stockholders' equity was approximately $13.0 million at September 30, 2016 or 13.6% of total assets as compared to approximately $13.2 million at June 30, 2016 or approximately 13.5% 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,
      2016         2016  
           
           
ASSETS          
                   
CASH AND CASH EQUIVALENTS  $   3,557     $   1,463  
                   
SECURITIES AVAILABLE FOR SALE, at fair value      33,449         36,103  
           
FEDERAL HOME LOAN BANK STOCK     218         388  
           
LOANS RECEIVABLE, net of allowance for loan losses  of $844 and $551, respectively      55,127         57,121  
PREMISES AND EQUIPMENT, net      795         811  
ACCRUED INTEREST AND DIVIDENDS RECEIVABLE     192         247  
PREPAID EXPENSES AND OTHER ASSETS     1,787         1,754  
           
TOTAL ASSETS  $   95,125     $   97,887  
           
           
LIABILITIES          
                   
DEPOSITS $   78,211     $   78,771  
FHLB ADVANCES     3,000         5,190  
OTHER LIABILITIES     933         727  
           
TOTAL LIABILITIES     82,144         84,688  
           
           
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, at cost,  32,643 shares       (640 )         (640 )
 Retained earnings        8,060            8,166  
 Treasury stock, at cost,   648,664 shares       (8,825 )         (8,825 )
 Accumulated other comprehensive income       484            596  
                   
TOTAL STOCKHOLDERS' EQUITY       12,981           13,199  
                   
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $   95,125     $   97,887  
           

                                                                                                                                                        
THE SOUTHERN BANC COMPANY, INC.UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME(Dollar Amounts in Thousands, except per share data)
 
    Three Months Ended
    September 30,
           
      2016         2015  
    (Unaudited)     (Unaudited)
INTEREST INCOME:          
                   
Interest and fees on loans  $   851     $   649  
Interest and dividends on securities     197         277  
Other interest income       6           6  
                   
Total interest income     1,054         932  
           
INTEREST EXPENSE:          
Interest on deposits     187         187  
Interest on borrowings     9         18  
Total interest expense     196         205  
Net interest income before provision   for loan losses     858         727  
Provision for loan losses     86         60  
Net interest income after provision   for loan losses     772         667  
           
NON-INTEREST INCOME:          
Fees and other non-interest income     18         18  
Net gain on sale of securities     23         0  
Miscellaneous income     4           21  
Total non-interest income     45           39  
           
NON-INTEREST EXPENSE:          
Salaries and employee benefits     558         492  
Office building and equipment expenses     63         61  
Professional Services Expense     94         72  
Data Processing Expense     118         113  
Other operating expense     154         137  
Total non-interest expense     987         875  
Loss before income tax benefit       (170 )         (169 )
                   
INCOME TAX BENEFIT       (64 )         (64 )
Net Loss $   (106 )   $   (105 )
                   
LOSS PER SHARE:                  
Basic $   (0.14 )   $   (0.14 )
Diluted $   (0.14 )   $   (0.14 )
                   
DIVIDENDS DECLARED PER SHARE $   0.00     $   0.00  
           
AVERAGE SHARES OUTSTANDING:          
Basic     773,443         773,443  
Diluted     773,443         773,443  

 
Contact: Gates Little(256) 543-3860

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