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

GADSDEN, Ala., Feb. 07, 2020 (GLOBE NEWSWIRE) -- The Southern Banc Company, Inc. SRNN, the holding company for The Southern Bank Company, formerly First Federal Savings and Loan Association of Gadsden, Alabama, announced a net income of approximately $75,000, or $0.10 per basic and diluted share, for the quarter ended December 31, 2019, as compared to a net income of approximately $133,000, or $0.17 per basic and diluted share, for the quarter ended December 31, 2018. For the six months ended December 31, 2019, the Company recorded net income of approximately $201,000, or $0.26 per basic and diluted share, as compared to net income of approximately $259,000, or $0.34 per basic and diluted share for the six months ended December 31, 2018.

Gates Little, President and Chief Executive Officer of the Company stated that the Company's net interest margins decreased during the quarter as compared to the same period in 2018. Net interest income before provision for loan losses for the quarter ended December 31, 2019 was approximately $1.1 million as compared to approximately $1.2 million for the quarter ended December 31, 2018, a decrease of approximately $58,000, or (4.9%). The decrease in the net interest margin before provision for loan losses for the quarter was primarily attributable to an increase in total interest expense of approximately $62,000, offset by an increase in total interest income of approximately $4,000. For the three months ended December 31, 2019 the Company recorded a provision for loan and lease losses of approximately $38,000 as compared to no provision for the same period in 2018. Net interest income after provision for loan and lease losses decreased approximately $96,000, or (8.1%) for the quarter ended December 31, 2019, as compared to the same quarter in 2018. For the quarter ended December 31, 2019, total non-interest income increased approximately $27,000, or 68.1% while total non-interest expense increased approximately $8,000, or 0.8% as compared to the same three month period in 2018. The increase in non-interest income was primarily attributable to an increase in miscellaneous income of approximately $14,000, or 160.5% and an increase in customer service fees of approximately $13,000, or 41.6%. The increase in non-interest expense was primarily attributable to an increase in salaries and benefits of approximately $17,000, data processing expenses of approximately $16,000 and occupancy expense of approximately $4,000 offset in part by a decrease in professional service expense of approximately $23,000.

The Company's total assets at December 31, 2019 were $98.5 million, as compared to $97.7 million at June 30, 2019. Total stockholders' equity was approximately $11.9 million at December 31, 2019 or 12.1% 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 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.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollar Amounts in Thousands)

		December 31,			June 30,
		2019			2019


ASSETS
CASH AND CASH EQUIVALENTS	$	22,462		$	17,696

SECURITIES AVAILABLE FOR SALE, at fair value		16,925			18,566

FEDERAL HOME LOAN BANK STOCK		177			177

LOANS RECEIVABLE, net of allowance for loan losses of $895 and $974, respectively		56,498			58,874
PREMISES AND EQUIPMENT, net		764			783
ACCRUED INTEREST AND DIVIDENDS RECEIVABLE		181			193
PREPAID EXPENSES AND OTHER ASSETS		1,526			1,416

TOTAL ASSETS	$	98,533		$	97,705


LIABILITIES

DEPOSITS	$	84,444		$	82,342
FHLB ADVANCES		0			2,000
OTHER LIABILITIES		2,179			1,603

TOTAL LIABILITIES		86,623			85,945


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		13,896			13,887
Shares held in trust, 44,297 and 39,260 shares at cost, respectively		(752	)		(706	)
Retained earnings		7,479			7,278
Treasury stock, at cost, 648,664 shares		(8,825	)		(8,825	)
Accumulated other comprehensive income		97			111

TOTAL STOCKHOLDERS' EQUITY		11,910			11,760

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	98,533		$	97,705

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
		December 31,				December 31,

		2019 (Unaudited)		2018		2019 (Unaudited)		2018

INTEREST INCOME:

Interest and fees on loans	$	1,236	$	1,247	$	2,488	$	2,491
Interest and dividends on securities		100		109		207		223
Other interest income		71		47		157		70

Total interest income		1,407		1,403		2,852		2,784

INTEREST EXPENSE:
Interest on deposits		284		202		564		388
Interest on borrowings		0		19		5		43
Total interest expense		284		221		569		431
Net interest income before provision for loan losses		1,123		1,182		2,283		2,353
Provision for loan losses		38		0		45		0
Net interest income after provision for loan losses		1,085		1,182		2,238		2,353

NON-INTEREST INCOME:
Fees and other non-interest income		43		28		74		63
Miscellaneous income		23		11		30		15
Total non-interest income		66		39		104		78

NON-INTEREST EXPENSE:
Salaries and employee benefits		592		561		1,177		1,172
Office building and equipment expenses		62		58		123		113
Professional Services Expense		124		147		225		263
Data Processing Expense		147		130		276		261
Other operating expense		123		145		266		272
Total non-interest expense		1,048		1,041		2,067		2,081

Income before income taxes		103		180		275		350

PROVISION FOR INCOME TAXES		28		47		74		91

Net Income	$	75	$	133	$	201	$	259

LOSS PER SHARE:
Basic	$	0.10	$	0.17	$	0.26	$	0.34
Diluted	$	0.10	$	0.17	$	0.26	$	0.34

DIVIDENDS DECLARED PER SHARE	$	---	$	---	$	---	$	---

AVERAGE SHARES OUTSTANDING:
Basic		766,498		766,826		766,662		766,826
Diluted		767,358		766,826		767,244		766,826

Contact: Gates Little
(256) 543-3860

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