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CST: 11/12/2019 00:43:43   

The Southern Banc Company, Inc. Announces First Quarter Earnings

27 Days ago

GADSDEN, Ala., Nov. 13, 2019 (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 $126,221, or $0.16 per basic and diluted share, for the quarter ended September 30, 2019, as compared to a net income $125,807, or $0.16 per basic and diluted share, for the quarter ended September 30, 2018. 

Gates Little, President and Chief Executive Officer of the Company stated that the Company’s net interest margins decreased by approximately $12,000 or (1.06%) during the quarter as compared to the same period in 2018. Net interest income before provision for loan losses was approximately $1.2 million for the quarters ended September 30, 2019 and 2018, respectively. For the three-months ended September 30, 2019 total interest income increased approximately $64,000 or 4.67% as compared to the same period in 2018.  Total interest expense increased approximately $77,000 or 36.93% for the three-months ended September 30, 2019 as compared to the same period in 2018. Provision for loan and lease losses increased approximately $6,000 during the quarter as compared to the same period in 2018.  Net interest income after provision for loan and lease losses decreased approximately $19,000, or (1.58%) for the quarter ended September 30, 2019, as compared to the same quarter in 2018.  For the quarter ended September 30, 2019, total non-interest income decreased approximately $1,300 or (3.27%) while total non-interest expense decreased approximately $22,000 or (2.13%) as compared to the same three-month period in 2018.  The decrease in non-interest income was primarily attributable to a decrease in customer service fees of approximately $2,900 or (8.85%) offset in part by an increase in miscellaneous income of approximately $1,600 or 24.61%.  The decrease in non-interest expense was primarily attributable to decreases in salaries and benefits of approximately $12,000, professional service expenses of approximately $14,000 and data processing expenses of approximately $1,400 offset in part by an increase in occupancy expenses of approximately $5,000. 

The Company’s total assets at September 30, 2019 were $96.2 million, as compared to $97.7 million at June 30, 2019.  Total stockholders’ equity was approximately $11.9 million at September 30, 2019 or 12.4% of total assets as compared to approximately $11.8 million at June 30, 2019 or approximately 12.0% 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.

Contact: Gates Little
(256) 543-3860

(Selected financial data attached)

THE SOUTHERN BANC COMPANY, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollar Amounts in Thousands)

    September 30,     June 30,
    2019      2019 
           
           
ASSETS
         
CASH AND CASH EQUIVALENTS  $ 19,930     $ 17,696  
SECURITIES AVAILABLE FOR SALE, at fair value    16,863       18,566  
FEDERAL HOME LOAN BANK STOCK   177       177  
LOANS RECEIVABLE, net of allowance for loan losses
  of $857 and $974, respectively 
  56,919       58,874  
PREMISES AND EQUIPMENT, net    769       783  
ACCRUED INTEREST AND DIVIDENDS RECEIVABLE   166       193  
PREPAID EXPENSES AND OTHER ASSETS   1,409       1,416  
           
TOTAL ASSETS  $ 96,233     $ 97,705  
           
LIABILITIES
         
DEPOSITS $ 82,241     $ 82,342  
FHLB ADVANCES   0       2,000  
OTHER LIABILITIES   2,080       1,603  
           
TOTAL LIABILITIES   84,321       85,945  
           
STOCKHOLDERS' EQUITY:
  Preferred stock, par value $.01 per share
  500,000 shares authorized, no shares issued
  and outstanding
  0         0  
 Common stock, par value $.01 per share,
  3,500,000 authorized, 1,454,750 shares issued
  15         15  
 Additional paid-in capital    13,892         13,887  
 Shares held in trust, 39,260 shares at cost,
  respectively
  (706 )       (706 )
 Retained earnings     7,404          7,278  
 Treasury stock, at cost,
  648,664 shares
    (8,825 )       (8,825 )
 Accumulated other comprehensive income     132          111  
TOTAL STOCKHOLDERS’ EQUITY     11,912         11,760  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $   96,233     $   97,705  
           


THE SOUTHERN BANC COMPANY, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollar Amounts in Thousands, except per share data)

    Three Months Ended
    September 30,
           
    2019     2018
    (Unaudited)     (Unaudited)
INTEREST INCOME:
         
  Interest and fees on loans  $ 1,252   $ 1,244
  Interest and dividends on securities   107     114
  Other interest income     84       22
             Total interest income   1,443     1,380
           
INTEREST EXPENSE:          
  Interest on deposits   280     185
  Interest on borrowings   4     23
  Total interest expense   284     208
  Net interest income before provision
  for loan losses
  1,159     1,172
  Provision for loan losses   6     0
  Net interest income after provision
  for loan losses
  1,153     1,172
           
NON-INTEREST INCOME:          
  Fees and other non-interest income   30     33
  Net gain on sale of securities   0     0
  Miscellaneous income   8     7
  Total non-interest income   38     40
           
NON-INTEREST EXPENSE:          
  Salaries and employee benefits   585     598
  Office building and equipment expenses   60     55
  Professional Services Expense   102     116
  Data Processing Expense   129     131
  Other operating expense   143     142
  Total non-interest expense   1,019     1,042
  Income before income tax expense     172       170
           
INCOME TAX EXPENSE      46        44
              Net Income $   126   $   126
           
LOSS PER SHARE:
  Basic
$ 0.16   $ 0.16
   Diluted $ 0.16   $ 0.16
           
DIVIDENDS DECLARED PER SHARE  $   0.00    $   0.00
           
AVERAGE SHARES OUTSTANDING:          
  Basic   766,826     766,826
  Diluted   766,826     766,826

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