OREANDA-NEWS. 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 net income of approximately $92,000, or $0.12 per basic and diluted share, for the quarter ended March 31, 2016, as compared to a net loss of approximately $69,000, or ($0.09) per basic and diluted share, for the quarter ended March 31, 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 for the quarter ended March 31, 2016 was approximately $882,000, as compared to approximately $607,000 for the quarter ended March 31, 2015, an increase of approximately $275,000 or 45.4%.  The improvement in the net interest margin for the quarter was primarily attributable to an increase in total interest income of approximately $289,000 offset by an increase in total interest expense of approximately $14,000.  Provision for loan and lease losses decreased approximately $7,000 during the quarter as compared to the same period in 2015.  Net interest income after provision for loan and lease losses increased approximately $282,000 for the quarter ended March 31, 2016, as compared to the same quarter in 2015.  For the quarter ended March 31, 2016, total non-interest income increased approximately $36,000 or 24.5% while total non-interest expense increased approximately $61,000 or 7.4%, as compared to the same three month period in 2015.  The increase in non-interest income was primarily attributable to an increase in net gain on sale of securities offset in part by a decrease in customer service fees of approximately $7,000 and a decrease in miscellaneous income of approximately $117,000.  The decrease in miscellaneous income was primarily attributable to a bond prepayment penalty received in the quarter ended March 31, 2015.  The increase in non-interest expense was primarily attributable to increases in salaries and benefits of approximately $4,000, other operating expenses of approximately $20,000, data processing fees of approximately $2,000, professional service expenses of approximately $38,000 offset in part by a decrease in office building and equipment of approximately $3,000. 

For the nine months ended March 31, 2016, net interest income increased approximately $410,000 or 21.0%.  Provision for loan and lease losses decreased approximately $38,000 during the nine month period as compared to the same period in 2015.  Net interest income after provision for loan and lease losses increased approximately $448,000 or 25.1% for the nine months ended March 31, 2016, as compared to the same quarter in 2015.  For the nine months ended March 31, 2016, total non-interest income increased approximately $45,000 or 21.3% while total non-interest expense increased approximately $113,000 or 4.4% as compared to the same period in 2015.  The increase in non-interest income was primarily attributable to an increase in net gain on sale of securities of approximately $159,000 offset in part by decreases in customer service fees of approximately $14,000 and miscellaneous income of approximately $101,000.  The increase in non-interest expense was primarily attributable to increases in salaries and benefits of approximately $17,000, other operating expenses of approximately $76,000, and data processing expenses of approximately $24,000 offset in part by a decrease in office building and equipment expenses of approximately $4,000. 

The Company’s total assets at March 31, 2016 were approximately $100.1 million, as compared to $97.2 million at June 30, 2015.  Total stockholders’ equity was approximately $14.3 million at March 31, 2016 or 14.3% 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”.

           
THE SOUTHERN BANC COMPANY, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollar Amounts in Thousands)
           
    March 31,     June 30,
      2016         2015  
           
           
ASSETS          
                   
CASH AND CASH EQUIVALENTS $   3,036     $   8,396  
                   
SECURITIES AVAILABLE FOR SALE, at fair value     37,159         42,443  
SECURITIES HELD TO MATURITY, at amortized cost,                  
fair value of $0 and $1, respectively     0         1  
FEDERAL HOME LOAN BANK STOCK     388         391  
           
LOANS RECEIVABLE, net of allowance for loan losses                  
of $525 and $551, respectively     57,413         43,936  
PREMISES AND EQUIPMENT, net     817         847  
ACCRUED INTEREST AND DIVIDENDS RECEIVABLE     288         274  
PREPAID EXPENSES AND OTHER ASSETS     958         877  
           
TOTAL ASSETS $   100,059     $   97,165  
           
           
LIABILITIES          
           
DEPOSITS $   79,972     $   75,279  
FHLB ADVANCES     5,000         7,156  
OTHER LIABILITIES     766         498  
           
TOTAL LIABILITIES     85,738         82,933  
           
           
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     9,407         9,524  
Treasury stock, at cost,                  
648,664 shares     (8,825 )       (8,825 )
Accumulated other comprehensive income     477         271  
                   
TOTAL STOCKHOLDERS’ EQUITY     14,321         14,232  
                   
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $   100,059     $   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
    March 31,     March 31,
                     
    2016
(Unaudited)		       2015       2016
(Unaudited)		     2015  
                     
INTEREST INCOME:                    
                                 
Interest and fees on loans $ 852   $   592     $   2,192   $   1,668  
Interest and dividends on securities   228       199         759       826  
Other interest income   5       5         15       14  
                                 
Total interest income   1,085       796         2,966       2,508  
                     
INTEREST EXPENSE:                    
Interest on deposits   192       169         568       500  
Interest on borrowings   11       20         39       59  
Total interest expense   203       189         607       559  
Net interest income before provision                                
for loan losses   882       607         2,359       1,949  
Provision for loan losses   33       40         127       165  
Net interest income after provision                                
for loan losses   849       567         2,232       1,784  
                     
NON-INTEREST INCOME:                    
Fees and other non-interest income   16       23         57       71  
Net gain on sale of securities   160       0         160       0  
Miscellaneous income   9       126         36       137  
Total non-interest income   185       149         253       208  
                     
NON-INTEREST EXPENSE:                    
Salaries and employee benefits   475       471         1,473       1,456  
Office building and equipment expenses   59       62         181       185  
Professional Services Expense   108       70         264       264  
Data Processing Expense   113       111         333       309  
Other operating expense   132       112         421       345  
Total non-interest expense   887       826         2,672       2,559  
Income / (Loss) before income taxes   147       (110 )       (187 )     (567 )
PROVISION / (BENEFIT) FOR INCOME TAXES   55       (41 )       (70 )     (214 )
                                 
Net Income / (Loss) $ 92   $   (69 )   $   (117 ) $   (353 )
                                 
EARNINGS / (LOSS) PER SHARE:                                
Basic $ 0.12   $   (0.09 )   $   (0.15 ) $   (0.46 )
Diluted $ 0.12   $   (0.09 )   $   (0.15 ) $   (0.46 )
                     
DIVIDENDS DECLARED PER SHARE $ ---   $ ---   $ --- $ ---
                     
AVERAGE SHARES OUTSTANDING:                    
Basic   773,443       773,443         773,443       773,443  
Diluted   773,443       773,443         773,443       773,443