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The Southern Banc Company, Inc. Announces First Quarter Earnings

GADSDEN, Ala., Nov. 04, 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 $106,000, or ($0.14) per basic and diluted share, for the quarter ended September 30, 2016, as compared to a net loss of approximately $105,000, or ($0.14) per basic and diluted share, for the quarter ended September 30, 2015.

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 2015. Net interest income before provision for loan losses for the quarter ended September 30, 2016 was approximately $858,000 as compared to approximately $727,000 for the quarter ended September 30, 2015, an increase of approximately $131,000 or 17.9%. The improvement in the net interest margin before provision for loan losses for the quarter was primarily attributable to an increase in total interest income of approximately $122,000 and a decrease in total interest expense of approximately $9,000. Provision for loan and lease losses increased approximately $26,000 during the quarter as compared to the same period in 2015. Net interest income after provision for loan and lease losses increased approximately $105,000, or 15.6% for the quarter ended September 30, 2016, as compared to the same quarter in 2015. For the quarter ended September 30, 2016, total non-interest income increased approximately $6,000 or 17.4% while total non-interest expense increased approximately $112,000 or 12.9% as compared to the same three month period in 2015. The increase in non-interest income was primarily attributable to a net gain on the sale of securities of approximately $23,000 offset in part by a decrease in miscellaneous income of approximately $17,000. The increase in non-interest expense was primarily attributable to an increase in salaries and benefits of approximately $66,000 from additions to sales staff, professional service expenses of approximately $22,000, data processing expenses of approximately $5,000 and other operating expenses of approximately $17,000.

The Company’s total assets at September 30, 2016 were $95.1 million, as compared to $97.8 million at June 30, 2016. Total stockholders’ equity was approximately $13.0 million at September 30, 2016 or 13.6% of total assets as compared to approximately $13.2 million at June 30, 2016 or approximately 13.5% of total assets.

The Bank has four offices located in Gadsden, Albertville, Guntersville, and Centre, Alabama. The stock of The Southern Banc Company, Inc. trades in the over-the-counter market on the OTC Pink Marketplace® 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)
September 30, June 30,
2016 2016
ASSETS
CASH AND CASH EQUIVALENTS $ 3,557 $ 1,463
SECURITIES AVAILABLE FOR SALE, at fair value 33,449 36,103
FEDERAL HOME LOAN BANK STOCK 218 388
LOANS RECEIVABLE, net of allowance for loan losses
of $844 and $551, respectively
55,127 57,121
PREMISES AND EQUIPMENT, net 795 811
ACCRUED INTEREST AND DIVIDENDS RECEIVABLE 192 247
PREPAID EXPENSES AND OTHER ASSETS 1,787 1,754
TOTAL ASSETS $ 95,125 $ 97,887
LIABILITIES
DEPOSITS$ 78,211 $ 78,771
FHLB ADVANCES 3,000 5,190
OTHER LIABILITIES 933 727
TOTAL LIABILITIES 82,144 84,688
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 8,060 8,166
Treasury stock, at cost,
648,664 shares
(8,825) (8,825)
Accumulated other comprehensive income 484 596
TOTAL STOCKHOLDERS’ EQUITY 12,981 13,199
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 95,125 $ 97,887


THE SOUTHERN BANC COMPANY, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollar Amounts in Thousands, except per share data)
Three Months Ended
September 30,
2016 2015
(Unaudited) (Unaudited)
INTEREST INCOME:
Interest and fees on loans $ 851 $ 649
Interest and dividends on securities 197 277
Other interest income 6 6
Total interest income 1,054 932
INTEREST EXPENSE:
Interest on deposits 187 187
Interest on borrowings 9 18
Total interest expense 196 205
Net interest income before provision
for loan losses
858 727
Provision for loan losses 86 60
Net interest income after provision
for loan losses
772 667
NON-INTEREST INCOME:
Fees and other non-interest income 18 18
Net gain on sale of securities 23 0
Miscellaneous income 4 21
Total non-interest income 45 39
NON-INTEREST EXPENSE:
Salaries and employee benefits 558 492
Office building and equipment expenses 63 61
Professional Services Expense 94 72
Data Processing Expense 118 113
Other operating expense 154 137
Total non-interest expense 987 875
Loss before income tax benefit (170) (169)
INCOME TAX BENEFIT (64) (64)
Net Loss$ (106) $ (105)
LOSS PER SHARE:
Basic$ (0.14) $ (0.14)
Diluted$ (0.14) $ (0.14)
DIVIDENDS DECLARED PER SHARE$ 0.00 $ 0.00
AVERAGE SHARES OUTSTANDING:
Basic 773,443 773,443
Diluted 773,443 773,443


Contact: Gates Little (256) 543-3860

Source:The Southern Banc Company, Inc.