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The Southern Banc Company, Inc. Announces Third Quarter Earnings

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GADSDEN, Ala., May 14, 2021 (GLOBE NEWSWIRE) -- The Southern Banc Company, Inc. (OTCBB: SRNN), the holding company for The Southern Bank Company announced net income of approximately $138,000, or $0.18 per basic and diluted share, for the quarter ended March 31, 2021, as compared to net income of approximately $73,000, or $0.10 per basic and diluted share, for the quarter ended March 31, 2020. The Company announced that for the nine-month period ended March 31, 2021, the Company recorded net income of approximately $307,000, as compared to net income of approximately $274,000 for the nine-month period ended March 31, 2020.

Gates Little, President and Chief Executive Officer of the Company stated that the Company’s net interest margins increased approximately $70,000 or 6.4% during the quarter as compared to the same period in 2020. The increase in the net interest margin before provision for loan losses for the quarter was primarily attributable to a decrease in total interest expense of approximately $115,000, offset by a decrease in total interest income of approximately $45,000. For the three months ended March 31, 2021 and March 31, 2020 the Company recorded no provision for loan and lease losses. For the quarter ended March 31, 2021, total non-interest income increased approximately $9,000, or 14.1% while total non-interest expense decreased approximately $8,000, or (0.7%) as compared to the same three-month period in 2020. The increase in non-interest income was primarily attributable to an increase in miscellaneous income of approximately $16,000 offset in part by a decrease in customer services fees of approximately $6,000. The decrease in non-interest expense was primarily attributable to decreases in data processing expenses of approximately $24,000, occupancy expenses of approximately $2,000 and salaries and benefits of approximately $14,000 offset in part by an increase in professional service expenses of approximately $9,000.

For the nine-months ended March 31, 2021, net interest income decreased approximately $132,000 or (3.9%). Provision for loan and lease losses decreased approximately $3,000 or (7.4%) during the nine-month period as compared to the same period in 2020. Net interest income after provision for loan and lease losses decreased approximately $129,000 or (3.9%) for the nine-months ended March 31, 2021, as compared to the same period in 2020. For the nine-months ended March 31, 2021, total non-interest income increased approximately $60,000 or 35.9% while total non-interest expense decreased approximately $112,000 or (3.6%) as compared to the same period in 2020. The increase in non-interest income was primarily attributable to activity in the lease portfolio, offset in part by a decrease in customer service fees of approximately $17,000. The decrease in non-interest expense was primarily attributable to decreases in professional service expense of approximately $26,000, salaries and benefits of approximately $133,000 offset in part by an increase in data processing expenses of approximately $15,000.

The Company’s total assets at March 31, 2021 were approximately $111.4 million, as compared to $103.3 million at June 30, 2020. Total stockholders’ equity was approximately $11.9 million at March 31, 2021 or 10.7% of total assets as compared to approximately $12.3 million at June 30, 2020 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)

March 31,

June 30,

2021

2020

(Unaudited)

ASSETS

CASH AND CASH EQUIVALENTS

$

14,602

$

25,766

SECURITIES AVAILABLE FOR SALE, at fair value

41,692

25,874

FEDERAL HOME LOAN BANK STOCK

141

174

LOANS RECEIVABLE, net of allowance for loan losses of $829 and $895, respectively

52,698

49,105

PREMISES AND EQUIPMENT, net

714

736

ACCRUED INTEREST AND DIVIDENDS RECEIVABLE

253

224

PREPAID EXPENSES AND OTHER ASSETS

1,317

1,423

TOTAL ASSETS

$

111,417

$

103,302

LIABILITIES

DEPOSITS

$

95,328

$

88,766

FHLB ADVANCES AND OTHER BORROWED MONEY

445

0

OTHER LIABILITIES

3,713

2,188

TOTAL LIABILITIES

99,486

90,954

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

13,919

13,906

Shares held in trust, 45,243 and 44,506 shares at cost, Respectively

(760

)

(754

)

Retained earnings

7,898

7,592

Treasury stock, at cost, 648,664 shares

(8,825

)

(8,825

)

Accumulated other comprehensive (loss) income

(316

)

414

TOTAL STOCKHOLDERS’ EQUITY

11,931

12,348

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

111,417

$

103,302


THE SOUTHERN BANC COMPANY, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollar Amounts in Thousands, except per share data)

Three Months Ended

Nine Months Ended

March 31,

March 31,

2021
(Unaudited)

2020

2021
(Unaudited)

2020

INTEREST INCOME:

Interest and fees on loans

$

1,173

$

1,199

$

3,434

$

3,686

Interest and dividends on securities

145

103

440

311

Other interest income

3

64

7

221

Total interest income

1,321

1,366

3,881

4,218

INTEREST EXPENSE:

Interest on deposits

165

280

645

845

Interest on borrowings

0

1

0

4

Total interest expense

165

281

645

849

Net interest income before provision for loan losses

1,155

1,085

3,236

3,369

Provision for loan losses

0

0

41

45

Net interest income after provision for loan losses

1,155

1,085

3,195

3,324

NON-INTEREST INCOME:

Fees and other non-interest income

31

37

93

110

Net gain on sale of securities

0

1

0

1

Miscellaneous income

42

26

135

57

Total non-interest income

73

64

228

168

NON-INTEREST EXPENSE:

Salaries and employee benefits

573

587

1,630

1,764

Office building and equipment expenses

60

61

180

184

Professional Services Expense

105

96

296

322

Data Processing Expense

157

181

471

456

Net loss on sale of securities

0

0

0

0

Other operating expense

146

124

427

390

Total non-interest expense

1,041

1,049

3,004

3,116

Income before income taxes

187

100

419

376

PROVISION FOR INCOME TAXES

49

27

112

102

Net Income

$

138

$

73

$

307

$

274

EARNINGS PER SHARE:

Basic

$

0.18

$

0.10

$

0.40

$

0.36

Diluted

$

0.18

$

0.10

$

0.40

$

0.36

DIVIDENDS DECLARED PER SHARE

$

---

$

---

$

---

$

---

AVERAGE SHARES OUTSTANDING:

Basic

761,335

761,596

761,335

764,998

Diluted

761,335

763,627

761,335

766,063

Contact: Gates Little
(256) 543-3860