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.