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The Southern Banc Company, Inc. Announces Preliminary Fourth Quarter Earnings

GADSDEN, Ala., Oct. 07, 2015 (GLOBE NEWSWIRE) -- Gates Little, President and Chief Executive Officer of The Southern Banc Company, Inc. (OTCBB:SRNN), the holding company for The Southern Bank Company, announced preliminary unaudited results (subject to audit adjustments following the year-end audit) of operations for the fourth quarter and year ended June 30, 2015:

  • For the three months ended June 30, 2015, the Company reported net loss of approximately $57,000, or ($0.07) per basic and diluted share as compared to a net income of approximately $1,000, or $(0.00) per basic and diluted share, for the three months ended June 30, 2014.
  • For the fiscal year ended June 30, 2015, the Company recorded a net loss of approximately $410,000, or $(0.53) per basic and diluted share, as compared to a net loss of approximately $265,000, or $(0.34) per basic and diluted share, for the fiscal year ended June 30, 2014.
  • For the three months ended June 30, 2015, net interest income before provision for loan losses increased approximately $59,000, or 9.42% as compared to the same period in 2014. The increase in the 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 $151,000 offset by a decrease in interest and dividends on securities of approximately $74,000. For the three months ended June 30, 2015, interest paid on deposits and borrowings increased approximately $20,000.
  • For the fiscal year ended June 30, 2015, net interest income before provision for loan losses increased approximately $52,000, or 2.01% as compared to fiscal year 2014. The increase in the net interest margin for the fiscal year was primarily attributable to an increase in total interest income of approximately $60,000, or 1.80%, offset by an increase in total interest expense of approximately $8,000, or 1.06%. For the fiscal year ended June 30, 2015 provision for loan losses increased approximately $280,000. There was not a provision for loan losses for fiscal year 2014.
  • For the fiscal year ended June 30, 2015 non-interest income increased $99,000, or 32.35% as compared to fiscal year 2014. The increase in non-interest income was primarily attributable to an increase in miscellaneous income of $115,000 offset by decreases in fees and other non-interest income and gains on sale of securities of approximately $16,000. This increase in non-interest income for the fiscal year was primarily attributable to a penalty received due to the prepayment of a bond in the bank’s portfolio.

  • For the three months ended June 30, 2015 total non-interest expenses increased approximately $15,000, or 1.75%, as compared to the same three month period in 2014. The increase in non-interest expense for the three month period was primarily attributable to increases in data processing expenses, other operating expenses, salaries and benefits of approximately $63,000 offset in part by a decrease of approximately $48,000 or 34.29% in professional services expense.
  • For the fiscal year ended June 30, 2015, total non-interest expenses increased approximately $101,000, or 3.03%, as compared to fiscal year 2014. The increase in non-interest expense for the fiscal year was primarily attributable to increases in occupancy expense, data processing expense, and other operating expense of approximately $135,000, offset in part by a decrease in professional services expense and salary and benefit expenses of approximately $34,000.


The Company’s total assets at June 30, 2015 were approximately $97.2 million, as compared to $94.3 million at June 30, 2014. Total stockholders’ equity was approximately $14.2 million, or 14.6% of assets and $14.7 million, or 15.6% of assets at June 30, 2015 and 2014, respectively.

The unaudited financial information for the three and twelve months ended June 30, 2015 and 2014, 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 2015, 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,
2015 2014
(Unaudited)
ASSETS

CASH AND CASH EQUIVALENTS $ 8,396 $ 3,784
SECURITIES AVAILABLE FOR SALE, at fair value 42,443 53,525
SECURITIES HELD TO MATURITY, at amortized cost,
fair value of $1,281 and $5,371, respectively
1 5
FEDERAL HOME LOAN BANK (FHLB) STOCK 391 407
LOANS AND LEASES RECEIVABLE,
net of allowance for loan losses of $551,103 and $360,670, respectively
43,936 34,904
PREMISES AND EQUIPMENT, net 847 828
ACCRUED INTEREST AND DIVIDENDS RECEIVABLE 274 291
PREPAID EXPENSES AND OTHER ASSETS 877 593
TOTAL ASSETS $ 97,165 $ 94,337
LIABILITIES

DEPOSITS$ 75,279 $ 72,064
FHLB ADVANCES 7,156 7,156
OTHER LIABILITIES 498 413
TOTAL LIABILITIES 82,933 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,
806,086 shares outstanding
15 15
Additional paid-in capital 13,887 13,887
Shares held in trust, at cost,
32,643 shares
(640) (640)
Retained earnings 9,524 9,935
Treasury stock, at cost,
648,664 shares
(8,825) (8,825)
Accumulated other comprehensive income 271 332


TOTAL STOCKHOLDERS’ EQUITY
14,232 14,704


TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY


$
97,165 $ 94,337


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,
2015
(Unaudited)
2014 2015
(Unaudited)
2014
INTEREST INCOME:

Interest and fees on loans$ 614 $ 463 $ 2,282 $ 1,895
Interest and dividends on securities 266 340 1,092 1,419
Other interest income 6 4 20 20


Total interest income
886 807

3,394


3,334


INTEREST EXPENSE:
Interest on deposits 182 163 682 677
Interest on borrowings 19 18 78 75
Total interest expense 201 181 760 752
Net interest income before provision
for loan losses
685 626 2,634 2,582
Provision for loan losses 115 0 280 0
Net interest income after provision
for loan losses
570 626 2,354 2,582


NON-INTEREST INCOME:
Fees and other non-interest income 37 54 120 134
Gain on sale of securities, net 160 162 160 162
Miscellaneous income 0 0 125 10
Total non-interest income 197 216 405 306


NON-INTEREST EXPENSE:
Salaries and employee benefits 523 519 1,979 1,991
Equipment and Occupancy expenses 60 60 245 227
Professional Services Expense 92 140 356 378
Data Processing Expense 110 94 419 373
Other operating expense 86 43 431 360
Total non-interest expense 871 856 3,430 3,329
Loss before income taxes
(104


)
(14) (671) (441)
BENEFIT FOR INCOME TAXES (47) (15) (261) (176)
Net Loss$ (57) $ 1 $ (410) $ (265)
LOSS PER SHARE:
Basic$ (0.07) $ (0.00) $ (0.53) $ (0.34)
Diluted$ (0.07) $ (0.00) $ (0.53) $ (0.34)
DIVIDENDS DECLARED PER SHARE$ --- $ --- $ --- $ ---
AVERAGE SHARES OUTSTANDING:
Basic 773,443 774,931 773,443 774,931
Diluted 773,443 774,931 773,443 774,931


Contact: Gates Little (256) 543-3860

Source:The Southern Banc Company, Inc.