Southern Banc in Gadsden, Ala., said it could report a loss for its fiscal year after recording a charge tied to a bad loan.
The $101 million-asset company said in a press release Wednesday that it will set aside $1.5 million to cover a loss tied to a single credit to one borrower.
Southern lost $116,000 during the first three quarters of its fiscal year, which ends on June 30, though it earned $92,000 in the most recent quarter.
"The bank's management has closely monitored this credit, as we do all loans in our portfolio, and believes it has taken the appropriate and necessary action to represent accurately our expectations of repayment," Gates Little, Southern’s chairman, president and chief executive, said in the release. "Despite the adverse impact of the charge off, the bank continues to maintain strong regulatory capital."
