GADSDEN, Ala., Feb. 08, 2016 (GLOBE NEWSWIRE) -- 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 $103,000, or ($0.13) per basic and diluted share, for the quarter ended December 31, 2015, as compared to a net loss of approximately $146,000, or ($0.19) per basic and diluted share, for the quarter ended December 31, 2014.
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 2014. Net interest income for the quarter ended December 31, 2015 was approximately $750,000 as compared to approximately $653,000 for the quarter ended December 31, 2014, an increase of approximately $97,000 or 14.8%. The improvement in the net interest margin for the quarter was primarily attributable to an increase in total interest income of approximately $108,000 offset by an increase in total interest expense of approximately $11,000. Provision for loan and lease losses decreased approximately $92,000 during the quarter as compared to the same period in 2014. Net interest income after provision for loan and lease losses increased approximately $188,000 for the quarter ended December 31, 2015, as compared to the same quarter in 2014. For the quarter ended December 31, 2015, total non-interest income decreased approximately $3,000 or 8.8% while total non-interest expense decreased approximately $118,000 or 14.9% as compared to the same three month period in 2014. The decrease in non-interest income was primarily attributable to a decrease in customer service fees of approximately $4,000. The increase in non-interest expense was primarily attributable to increases in salaries and benefits of approximately $50,000, other operating expenses of approximately $72,000, data processing fees of approximately $6,000, office building and equipment of approximately $3,000 offset in part by a decrease in professional service expenses of approximately $13,000 or 13.2%.
For the six months ended December 31, 2015, net interest income increased approximately $134,000 or 9.9%. Provision for loan and lease losses decreased approximately $32,000 during the six month period as compared to the same period in 2014. Net interest income after provision for loan and lease losses increased approximately $166,000 or 13.6% for the six months ended December 31, 2015, as compared to the same quarter in 2014. For the six months ended December 31, 2015, total non-interest income increased approximately $8,000 or 13.3% while total non-interest expense increased approximately $51,000 or 3.0% as compared to the same period in 2014. The decrease in non-interest income was primarily attributable to a decrease in customer service fees of approximately $7,000. The increase in non-interest expense was primarily attributable to increases in salaries and benefits of approximately $13,500, other operating expenses of approximately $54,000, and data processing fees of approximately $22,000 offset in part by a decrease in professional service expenses of approximately $38,000 or 19.7%.
The Company’s total assets at December 31, 2015 were approximately $100.1 million, as compared to $97.2 million at June 30, 2015. Total stockholders’ equity was approximately $13.9 million at December 31, 2015 or 13.9% of total assets as compared to approximately $14.2 million at June 30, 2015 or approximately 14.6% of total assets.
The Bank has four offices located in Gadsden, Albertville, Guntersville, and Centre, Alabama. The stock of The Southern Banc Company, Inc. is listed on the OTC Bulletin Board under the symbol “SRNN”.
Certain statements in this release contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which statements can generally be identified by the use of forward-looking terminology, such as “may,” “will,” “expect,” “estimate,” “anticipate,” “believe,” “target,” “plan,” “project,” “continue,” or the negatives thereof, or other variations thereon or similar terminology, and are made on the basis of management’s plans and current analyses of the Company, its business and the industry as a whole. These forward-looking statements are subject to risks and uncertainties, including, but not limited to, economic conditions, competition, interest rate sensitivity and exposure to regulatory and legislative changes. The above factors, in some cases, have affected, and in the future could affect the Company’s financial performance and could cause actual results to differ materially from those expressed or implied in such forward-looking statements, even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.
(Selected financial data attached)
THE SOUTHERN BANC COMPANY, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollar Amounts in Thousands)
|December 31,||June 30,|
|CASH AND CASH EQUIVALENTS||$||2,631||$||8,396|
|SECURITIES AVAILABLE FOR SALE, at fair value||40,986||42,443|
|SECURITIES HELD TO MATURITY, at amortized cost, fair value of $0 and $1, respectively||0||1|
|FEDERAL HOME LOAN BANK STOCK||299||391|
|LOANS RECEIVABLE, net of allowance for loan losses of $492 and $551, respectively||54,077||43,936|
|PREMISES AND EQUIPMENT, net||831||847|
|ACCRUED INTEREST AND DIVIDENDS RECEIVABLE||307||274|
|PREPAID EXPENSES AND OTHER ASSETS||1,018||877|
|Preferred stock, par value $.01 per share 500,000 shares authorized, shares issued and outstanding-- none||0||0|
|Common stock, par value $.01 per share, 3,500,000 authorized, 1,454,750 shares issued||15||15|
|Additional paid-in capital||13,887||13,887|
|Shares held in trust, at cost, 32,643 shares||(640||)||(640||)|
|Treasury stock, at cost, 648,664 shares||(8,825||)||(8,825||)|
|Accumulated other comprehensive income||195||271|
|TOTAL STOCKHOLDERS’ EQUITY||13,948||14,232|
|TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY||$||100,149||$||97,165|
THE SOUTHERN BANC COMPANY, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollar Amounts in Thousands, except per share data)
|Three Months Ended||Year-to-Date|
|December 31,||December 31,|
|Interest and fees on loans||$||692||$||532||$||1,341||$||1,076|
|Interest and dividends on securities||253||304||530||627|
|Other interest income||4||5||11||9|
|Total interest income||949||841||1,882||1,712|
|Interest on deposits||190||169||377||331|
|Interest on borrowings||9||19||28||38|
|Total interest expense||199||188||405||369|
|Net interest income before provision for loan losses||750||653||1,477||1,343|
|Provision for loan losses||34||125||94||125|
|Net interest income after provision for loan losses||716||528||1,383||1,218|
|Fees and other non-interest income||22||26||41||48|
|Total non-interest income||28||31||68||59|
|Salaries and employee benefits||507||457||999||985|
|Office building and equipment expenses||62||59||122||123|
|Professional Services Expense||84||97||156||195|
|Data Processing Expense||106||101||220||198|
|Other operating expense||151||79||289||233|
|Total non-interest expense||910||793||1,786||1,734|
|Loss before income taxes||(166||)||(234||)||(335||)||(457||)|
|BENEFIT FOR INCOME TAXES||(63||)||(88||)||(126||)||(172||)|
|LOSS PER SHARE:|
|DIVIDENDS DECLARED PER SHARE||$||--||$||--||$||--||$||--|
|AVERAGE SHARES OUTSTANDING:|
Contact: Gates Little (256) 543-3860
Source:The Southern Banc Company, Inc.