The Southern Banc Company, Inc. Announces Preliminary Fourth Quarter Earnings - Southern Banc (OTC:SRNN)

GADSDEN, Ala., Aug. 15, 2018 (GLOBE NEWSWIRE) -- Gates Little, President and Chief Executive Officer of The Southern Banc Company, Inc. SRNN, the holding company for The Southern Bank Company, announced preliminary unaudited results (subject to audit adjustments following the fiscal year-end audit) of operations for the fourth quarter and year ended June 30, 2018:

For the three months ended June 30, 2018, the Company reported net income of approximately $61,000, or $0.08 per basic and diluted share as compared to a net loss of approximately $447,000, or $(0.58) per basic and diluted share, for the three months ended June 30, 2017.
For the fiscal year ended June 30, 2018, the Company recorded a net loss of approximately $565,000, or $(0.74) per basic and diluted share, as compared to a net loss of approximately $792,000, or $(1.03) per basic and diluted share, for the fiscal year ended June 30, 2017. The net loss for fiscal year 2018 included a one-time charge of $655,221 resulting from the enactment of 2018 Tax Reform Bill.
For the three months ended June 30, 2018, net interest income before provision for loan losses increased approximately $347,000, or 36.4% as compared to the same period in 2017. The increase in net interest income for the three-month period was primarily attributable to an increase in interest and fees on loans in the amount of approximately $415,000, offset by a decrease in interest and dividends on securities of approximately $54,000. For the three months ended June 30, 2018, interest paid on deposits and borrowings increased approximately $27,000 as compared to the same period in 2017.
For the fiscal year ended June 30, 2018, net interest income before provision for loan losses increased approximately $1.1 million, or 31.5% as compared to fiscal year 2017. The increase in net interest income for the fiscal year was primarily attributable to an increase in interest and fees on loans of approximately $1.3 million, or 37.6%, offset by a decrease in interest and dividends on securities of approximately $169,000, or (23.2%). Total interest expense increased approximately $65,000, or 8.7%. For the fiscal year ended June 30, 2018 provision for loan losses decreased approximately $435,000 from $1,208,000 for fiscal year 2017 to $773,000 for fiscal year 2018.
For the fiscal year ended June 30, 2018, non-interest income increased approximately $30,000, or 22.4% from $136,000 for fiscal year 2017 to $166,000 for fiscal year 2018. The increase in non-interest income was primarily attributable to increases in customer service fees of approximately $24,000 and miscellaneous income of approximately $22,000 offset by a decrease in net gain on sale of securities of approximately $16,000.
For the three months ended June 30, 2018 total non-interest expenses increased approximately $117,000, or 13.2%, as compared to the same three-month period in 2017. The increase in non-interest expense for the three-month period was primarily attributable to increases in salaries and benefits of approximately $62,000 or 13.0% due to an increase in personnel, an increase in professional service expense of approximately $36,000 or 35.8% and an increase in other operating expenses of approximately $22,000 or 15.9% offset in part by a decrease in occupancy expenses of approximately $6,000, or (10.8%).
For the fiscal year ended June 30, 2018, total non-interest expenses increased approximately $128,000, or 3.5%, as compared to fiscal year 2017. The increase in non-interest expense for the fiscal year was primarily attributable to increases in professional services expense of approximately $47,000, or 13.0%, and salary and benefit expenses of approximately $53,000, or 2.6%, offset in part by a decrease in occupancy expenses of approximately $20,000 or (8.2%).

The Company's total assets at June 30, 2018 and June 30, 2017 were approximately $95.9 million and $96.5 million, respectively. Total stockholders' equity was approximately $10.9 million, or 11.4% of assets and $11.8 million, or 12.3% of assets at June 30, 2018 and 2017, respectively.

The unaudited financial information for the three and twelve months ended June 30, 2018 has been prepared on the same basis as our audited financial information and includes, in the opinion of management, all adjustments necessary to present the data for such periods. The Company expects to release its final year end results and its related audited financial statements in October 2018, following completion of the year-end audit. Historical results are not necessarily indicative of future results. The Bank has four full service banking offices located in Gadsden, Albertville, Guntersville, and Centre, AL, and one loan production office in Birmingham, AL. 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.

(Selected financial data attached)

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

		June 30,			June 30,
		2018			2017
		(Unaudited)

ASSETS
CASH AND CASH EQUIVALENTS	$	4,215		$	2,910
SECURITIES AVAILABLE FOR SALE, at fair value		19,599			28,775
SECURITIES HELD TO MATURITY, at amortized cost, fair value of $0 and $0, respectively		0
FEDERAL HOME LOAN BANK (FHLB) STOCK		429			340

LOANS AND LEASES RECEIVABLE, net of allowance for loan losses of $1,093 and $1,238, respectively		69,002			61,309
PREMISES AND EQUIPMENT, net		715			754
ACCRUED INTEREST AND DIVIDENDS RECEIVABLE		216			216
PREPAID EXPENSES AND OTHER ASSETS		1,689			2,238

TOTAL ASSETS	$	95,865		$	96,542


LIABILITIES
DEPOSITS	$	77,015		$	79,383
FHLB ADVANCES		6,000			5,000
OTHER LIABILITIES		1,940			312

TOTAL LIABILITIES		84,955			84,695


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, 806,086 shares outstanding		15			15
Additional paid-in capital		13,887			13,887
Shares held in trust, 39,260 shares at cost		(706	)		(706	)
Retained earnings		6,812			7,373
Treasury stock, at cost, 648,664 shares		(8,825	)		(8,825	)
Accumulated other comprehensive income		(273	)		103
TOTAL STOCKHOLDERS' EQUITY		10,910			11,847
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	95,865		$	96,542

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

		Three Months Ended					Year Ended
		June 30,					June 30,

		2018 (Unaudited)		2017			2018 (Unaudited)			2017

INTEREST INCOME:
Interest and fees on loans	$	1,369	$	954		$	4,771		$	3,467
Interest and dividends on securities		119		173			559			728
Other interest income		19		6			48			22
Total interest income		1,507		1,133			5,378			4,217
INTEREST EXPENSE:
Interest on deposits		170		167			670			703
Interest on borrowings		34		10			134			36
Total interest expense		204		177			804			739
Net interest income before provision for loan losses		1,303		956			4,574			3,478
Provision for loan losses		192		812			773			1,208
Net interest income after provision for loan losses		1,111		144			3,801			2,270
NON-INTEREST INCOME:
Fees and other non-interest income		29		19			105			81
Gain on sale of securities, net		0		0			7			23
Miscellaneous income		8		8			54			32
Total non-interest income		37		27			166			136
NON-INTEREST EXPENSE:
Salaries and employee benefits		543		481			2,083			2,030
Equipment and Occupancy expenses		51		58			224			244
Professional Services Expense		138		102			413			366
Data Processing Expense		125		121			479			479
Other operating expense		156		134			614			566
Total non-interest expense		1,013		896			3,813			3,685
Income / (loss) before income taxes		135		(725	)		154			(1,279	)
PROVISION / (BENEFIT) FOR INCOME TAXES		74		(278	)		719			(487	)
Net Income (Loss)	$	61	$	(447	)	$	(565	)	$	(792	)
INCOME (LOSS) PER SHARE:
Basic	$	0.08	$	(0.58	)	$	(0.74	)	$	(1.03	)
Diluted	$	0.08	$	(0.58	)	$	(0.74	)	$	(1.03	)
DIVIDENDS DECLARED PER SHARE	$	---	$	---		$	---		$	---

AVERAGE SHARES OUTSTANDING:
Basic		766,826		769,817			766,826			769,817
Diluted		766,826		769,817			766,826			769,817

Contact: Gates Little
(256) 543-3860

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