The Southern Banc Company, Inc. Announces First Quarter Earnings

GADSDEN, Ala.--()--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 loss of approximately $139,000, or ($0.18) per basic and diluted share, for the quarter ended September 30, 2014, as compared to a net loss of approximately $87,000, or ($0.11) per basic and diluted share, for the quarter ended September 30, 2013.

Gates Little, President and Chief Executive Officer of the Company stated that the Company’s net interest margins improved during the quarter as compared to the same period in 2013. Net interest income for the quarter ended September 30, 2014 was approximately $644,000 as compared to approximately $621,000 for the quarter ended September 30, 2013, an increase of approximately $23,000 or 3.62%. The improvement in the net interest margin for the quarter was primarily attributable to a decrease in total interest expense of approximately $24,000 and an increase in total interest income of approximately $2,000. For the quarter ended September 30, 2014, total non-interest income increased approximately $42,000 or 133.0% while total non-interest expense increased approximately $149,000 or 18.8% as compared to the same three month period in 2013. The increase in non-interest income was primarily attributable to an increase in operating lease rental income of approximately $46,000 offset in part by a decrease in customer service fees of approximately $3,000. The increase in non-interest expense was primarily attributable to an increase in salaries and benefits of approximately $78,000 and operating lease depreciation expense of approximately $36,000.

The Company’s total assets at September 30, 2014 were $95.3 million, as compared to $94.3 million at June 30, 2014. Total stockholders’ equity was approximately $14.5 million at September 30, 2014 or 15.2% of total assets as compared to approximately $14.7 million at June 30, 2014 or approximately 15.6% 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.

       

THE SOUTHERN BANC COMPANY, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Dollar Amounts in Thousands)

 
September 30, June 30,
2014 2014
 
ASSETS
 
CASH AND CASH EQUIVALENTS $ 3,029 $ 3,784
 
SECURITIES AVAILABLE FOR SALE, at fair value 51,407 53,525

SECURITIES HELD TO MATURITY, at amortized cost, fair value of $4 and $5, respectively

4 5
FEDERAL HOME LOAN BANK STOCK 407 407
 

LOANS RECEIVABLE, net of allowance for loan losses of $359 and $361, respectively

38,840 34,904
PREMISES AND EQUIPMENT, net 822 828
ACCRUED INTEREST AND DIVIDENDS RECEIVABLE 266 291
PREPAID EXPENSES AND OTHER ASSETS 556 593
   
TOTAL ASSETS $ 95,331   $ 94,337  
 
 
LIABILITIES
 
DEPOSITS $ 73,391 $ 72,064
FHLB ADVANCES 7,156 7,156
OTHER LIABILITIES 293 413
   
TOTAL LIABILITIES 80,840 79,633
 
 
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, at cost, 32,643 shares

(640 ) (640 )
Retained earnings 9,796 9,935

Treasury stock, at cost, 648,664 shares

(8,825 ) (8,825 )
Accumulated other comprehensive income (loss) 258   332  

TOTAL STOCKHOLDERS’ EQUITY

14,491   14,704  

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

95,331   $ 94,337  
 
   

THE SOUTHERN BANC COMPANY, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Dollar Amounts in Thousands, except per share data)

 
Three Months Ended
September 30,
   
2014 2013
(Unaudited) (Unaudited)
INTEREST INCOME:
 
Interest and fees on loans $ 498 $ 456
Interest and dividends on securities 323 366

Other interest income

4   4  
 

Total interest income

825 826
 

INTEREST EXPENSE:

Interest on deposits 162 184
Interest on borrowings 19   21  
Total interest expense 181   205  

Net interest income before provision for loan losses

644 621
Provision for loan losses 0   0  

Net interest income after provision for loan losses

644 621
 

NON-INTEREST INCOME:

Fees and other non-interest income 22 25
Net gain on sale of securities 0 0
Miscellaneous income 52   7  
Total non-interest income 74   32  
 

NON-INTEREST EXPENSE:

Salaries and employee benefits 528 451
Office building and equipment expenses 64 52
Professional Services Expense 97 93
Data Processing Expense 98 92
Other operating expense 154   104  
Total non-interest expense 941   792  
Loss before income tax benefit (223 ) (139 )
 

PROVISION FOR INCOME TAX (BENEFIT)

(84 ) (52 )

Net Income (Loss)

$

(139 )

$

(87 )
EARNINGS PER SHARE:
Basic $ (0.18 ) $ (0.11 )
Diluted $ (0.18 ) $ (0.11 )
 

DIVIDENDS DECLARED PER SHARE

$

0.00

$

0.00
 
AVERAGE SHARES OUTSTANDING:
Basic 773,443 780,318
Diluted 773,443 780,318

Contacts

The Southern Banc Company, Inc.
Gates Little, 256-543-3860

The Southern Banc Company, Inc.