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CST: 20/08/2019 22:15:47   

The Southern Banc Company, Inc. Announces Third Quarter Earnings

110 Days ago

GADSDEN, Ala., May 02, 2019 (GLOBE NEWSWIRE) -- The Southern Banc Company, Inc. (OTCBB: SRNN), the holding company for The Southern Bank Company announced net income of approximately $110,000, or $0.14 per basic and diluted share, for the quarter ended March 31, 2019, as compared to net income of approximately $112,000, or $0.15 per basic and diluted share, for the quarter ended March 31, 2018.  For the nine-month period ended March 31, 2019 the Company recorded net income of approximately $370,000, as compared to a net loss of approximately $616,000 for the nine-month period ended March 31, 2018 which included an income tax expense of approximately $655,000 due to the tax law changes.

Gates Little, President and Chief Executive Officer of the Company stated that the Company’s net income for the quarter ended March 31, 2019 was primarily due to an increase in interest and fees on loans. During the quarter ended March 31, 2019 the Company’s net interest margin improved as compared to the same period in 2018. Net interest income for the quarter ended March 31, 2019 was approximately $1.1 million as compared to approximately $1.0 million for the quarter ended March 31, 2018.  For the quarter ended March 31, 2019, total interest income increased approximately $98,000 or 7.8% while total interest expense increased approximately $25,000 or 12.4%.  Provision for loan and lease losses increased approximately $8,000 during the quarter as compared to the same quarter in 2018.  Net interest income after provision for loan and lease losses increased approximately $65,000 or 6.2% for the quarter ended March 31, 2019, as compared to the same quarter in 2018.  For the quarter ended March 31, 2019, total non-interest income decreased approximately $13,000 or 27.0% while total non-interest expense increased approximately $54,000 or 5.7% 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 $5,000, a decrease of approximately $7,000 in net gain on sale of securities and a decrease in miscellaneous income of approximately $2,000.  The increase in non-interest expense was primarily attributable to increases in salaries and employee benefits of approximately $56,000, professional services of approximately $4,000, occupancy expense of approximately $2,000 and other operating expenses of approximately $2,000, offset in part by a decrease in data processing expenses of approximately $2,000 and a decrease in net loss on sale of securities of approximately $9,000.   

For the nine-months ended March 31, 2019, net interest income increased approximately $220,000 or 6.7%.  Provision for loan and lease losses decreased approximately $573,000 or 98.6% during the nine-month period as compared to the same period in 2018.  Net interest income after provision for loan and lease losses increased approximately $793,000 or 29.5% for the nine-months ended March 31, 2019, as compared to the same period in 2018.  For the nine-months ended March 31, 2019, total non-interest income decreased approximately $15,000 or 11.8% while total non-interest expense increased approximately $307,000 or 11.0% as compared to the same period in 2018.  The decrease in non-interest income was primarily attributable to a decrease in miscellaneous income of approximately $13,000, a decrease in gain on sale of securities of approximately $7,000, offset in part by an increase in customer service fees of approximately $5,000.  The increase in non-interest expense was primarily attributable to increases in salaries and benefits of approximately $192,000, professional service expenses of approximately $96,000, data processing expenses of approximately $26,000, occupancy expenses of approximately $2,000, offset in part by a decrease in other operating expenses of approximately $8,000. 

The Company’s total assets at March 31, 2019 were approximately $95.6 million, as compared to $94.0 million at June 30, 2018.  Total stockholders’ equity was approximately $11.5 million at March 31, 2019 or 12.1% 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. is listed on the OTC Bulletin Board 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

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

    March 31,     June 30,
    2019      2018 
           
           
ASSETS          
               
CASH AND CASH EQUIVALENTS  $ 15,074     $ 4,208  
               
SECURITIES AVAILABLE FOR SALE, at fair value    19,048       19,599  
           
FEDERAL HOME LOAN BANK STOCK   177       429  
           
LOANS RECEIVABLE, net of allowance for loan losses
  of $1,038 and $1,093, respectively 
  58,741       67,218  
PREMISES AND EQUIPMENT, net    775       715  
ACCRUED INTEREST AND DIVIDENDS RECEIVABLE   175       207  
PREPAID EXPENSES AND OTHER ASSETS   1,580       1,705  
           
TOTAL ASSETS  $ 95,570     $ 94,081  
           
           
LIABILITIES           
           
DEPOSITS $ 80,219     $ 77,014  
FHLB ADVANCES   2,000       6,000  
OTHER LIABILITIES   1,830       157  
           
TOTAL LIABILITIES   84,049       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     7,182          6,813  
 Treasury stock, at cost,
  648,664 shares
    (8,825 )       (8,825 )
 Accumulated other comprehensive loss     (32 )        (274 )
 

TOTAL STOCKHOLDERS’ EQUITY
    11,521         10,910  
 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
 

$
  95,570     $   94,081  
           

                                                            

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

      Three Months Ended     Year-to-Date
    March 31,     March 31,
                     
    2019
(Unaudited)
    2018     2019
(Unaudited)
  2018
 
                     
INTEREST INCOME:
 
                   
  Interest and fees on loans $ 1,193   $ 1,118   $ 3,684 $ 3,402  
  Interest and dividends on securities   112     135     335   440  
  Other interest income   57     11     126   29  
 
     Total interest income
  1,362     1,264    
4,145
 
3,871
 
 

INTEREST EXPENSE:
                   
  Interest on deposits   213     165     597   500  
  Interest on borrowings   15     38     57   100  
     Total interest expense   228     203     654   600  
     Net interest income before provision
     for loan losses
  1,134     1,061    
3,491
   
3,271
 
  Provision for loan losses   8     0     8   581  
     Net interest income after provision
        for loan losses
  1,126     1,061    
3,483
 
2,690
 
 
NON-INTEREST INCOME:
                   
  Fees and other non-interest income   23     27     81   76  
  Net gain on sale of securities   0     7     0   7  
  Miscellaneous income   12     14     33   46  
           Total non-interest income   35     48     114   129  
 
NON-INTEREST EXPENSE:
                   
  Salaries and employee benefits   581     525     1,732   1,540  
  Office building and equipment expenses   60     58     174   173  
  Professional Services Expense   108     103     370   275  
  Data Processing Expense   120     122     381   354  
  Net loss on sale of securities   0     9     0   0  
  Other operating expense   143     141     441   448  
           Total non-interest expense   1,012     958     3,098   2,790  
  Income before income taxes    
  149
      151       499     29  
 

PROVISION FOR INCOME TAXES
    39       39       129     645  
        Net Income (Loss)  
$
  110  
$
  112  
$
  370
$
  (616 )
  LOSS PER SHARE:
        Basic
 

$
  0.14    $   0.15    

$
  0.48  

$
  (0.80 )
        Diluted $   0.14   $   0.15   $   0.48 $   (0.80 )
 
DIVIDENDS DECLARED PER SHARE

$
  ---  
$
  ---  
$
  ---
$
  ---  
                     
AVERAGE SHARES OUTSTANDING:                    
        Basic    766,826      766,826      766,826    766,826  
        Diluted    766,826      766,826      766,826    766,826  

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