The Southern Banc Company, Inc. Announces Second Quarter Earnings
GADSDEN, Ala., Feb. 07, 2020 (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 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)THE SOUTHERN BANC COMPANY, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollar Amounts in Thousands, except per share data)Gates Little
(256) 543-3860
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)THE SOUTHERN BANC COMPANY, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollar Amounts in Thousands, except per share data)Gates Little
(256) 543-3860
