The Southern Banc Company, Inc. Announces Third Quarter Earnings

GADSDEN, Ala., May 02, 2019 (GLOBE NEWSWIRE) -- The Southern Banc Company, Inc. 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