SOUTHERN BANCSHARES (N.C.), INC. Southern BancShares (N.C.), Inc.
Consolidated Comparative
Quarterly Report
Executive Offices
P.O. Box 729
116 East Main Street
Mount Olive, NC 28365
919.658.7022
Southern Bank Customer Care
855.275. 7226
Shareholders Contact Center
800.821.0655 ext. 7074
www.southernbank.com
September 30, 2021
© 2021 Southern Bank - (TD)
Southern BancShares (N.C.), Inc. and Subsidiaries | For the Quarter Ended | Year to Date | Percent | ||||||||
Financial Highlights (Unaudited) | September 30, | September 30, | Change | ||||||||
(Dollars in thousands, except per share data) | 2021 | 2020 | 2021 | 2020 | YTD | ||||||
SUMMARY BALANCE SHEET | |||||||||||
ASSETS | |||||||||||
Cash, due from banks and overnight funds sold | $ | $291,287 | $ | 300,876 | -3% | ||||||
Investments | 1,601,178 | 966,097 | 66% | ||||||||
Loans less allowance for loan loss of $28,923 and $27,650 | 2,361,641 | 2,267,173 | 4% | ||||||||
Other assets | 165,958 | 169,633 | -2% | ||||||||
Total assets | $ | 4,420,064 | $ | 3,703,779 | 19% | ||||||
LIABILITIES | |||||||||||
Deposits: | |||||||||||
Noninterest-bearing deposits | $ | 1,368,410 | $ | 1,155,907 | 18% | ||||||
Interest-bearing deposits | 2,401,138 | 1,983,209 | 21% | ||||||||
Total deposits | 3,769,548 | 3,139,116 | 20% | ||||||||
Borrowings | 141,897 | 184,666 | -23% | ||||||||
Other liabilities | 58,167 | 37,797 | 54% | ||||||||
Total liabilities | 3,969,612 | 3,361,579 | 18% | ||||||||
SHAREHOLDERS' EQUITY | |||||||||||
Preferred stock | 1,802 | 1,805 | 0% | ||||||||
Common stock | 398 | 401 | -1% | ||||||||
Surplus | 27,043 | 27,043 | 0% | ||||||||
Retained earnings | 429,286 | 301,598 | 42% | ||||||||
Accumulated other comprehensive income (loss) | (8,077) | 11,353 | -171% | ||||||||
Total shareholders' equity | 450,452 | 342,200 | 32% | ||||||||
Total liabilities and shareholders' equity | $ | 4,420,064 | $ | 3,703,779 | 19% | ||||||
EARNINGS PERFORMANCE | |||||||||||
Interest income | $ | 31,909 | $ | 30,054 | $ | 91,047 | $ | 87,212 | 4% | ||
Interest expense | 1,664 | 1,892 | 3,943 | 6,666 | -41% | ||||||
Net interest income | 30,245 | 28,162 | 87,104 | 80,546 | 8% | ||||||
Provision (recovery) for loan losses | 321 | 443 | (1,497) | 6,091 | -125% | ||||||
Noninterest income (loss) | 8,810 | (9,434) | 80,463 | (23,693) | 440% | ||||||
Noninterest expense | 22,665 | 21,836 | 66,401 | 62,173 | 7% | ||||||
Income (loss) before income taxes | 16,069 | (3,551) | 102,663 | (10,299) | 1097% | ||||||
Income tax expense (benefit) | 3,228 | (1,221) | 22,276 | (3,327) | 770% | ||||||
Net income (loss) | $ | 12,841 | $ | (2,330) | $ | 80,387 | $ | (6,972) | 1253% | ||
Earnings (loss) per share | $ | 160.39 | $ | (29.91) | $ | 1,003.21 | $ | (92.63) | |||
Return on average assets | 1.17% | -0.26% | 2.57% | -0.28% | |||||||
Return on average equity | 11.25% | -2.64% | 24.65% | -2.64% |
ADDITIONAL DISCLOSURE - ACCOUNTING FOR INVESTMENTS IN MARKETABLE EQUITY SECURITIES
In January 2016, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") 2016-01: Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities ("ASU 2016-01"). One of the requirements of the ASU is that equity investments must be measured at fair value with changes in fair value recognized in net income. We adopted the ASU on January 1, 2018 and recorded a $58.1 million cumulative-effect adjustment that increased retained earning and decreased accumulated other comprehensive income. For the quarters ended September 30, 2021 and 2020, unrealized gains (losses) on equity investments of $577 thousand and ($17.1 million), respectively were included in noninterest income, and $135 thousand and ($3.9 million), respectively in deferred tax expense (benefit) were included in income tax expense (benefit) related to the change in fair value of equity investments. For the nine months ended September 30, 2021 and 2020, unrealized gains (losses) on equity investments of $56.5 million and ($43.7 million), respectively were included in noninterest income, and $12.9 million and ($10.0 million),
respectively in deferred tax expense (benefit) were included in income tax expense (benefit) | related to | the change | in fair | value of equity investments. While the ASU has no | ||||
impact on the book value per common share, the impact to net income is as follows: | For the Quarter Ended | Year to Date | ||||||
September 30, | September 30, | |||||||
2021 | 2020 | 2021 | 2020 | |||||
Net income (loss) as reported | $ | 12,841 | $ | (2,330) | $ | 80,387 | $ | (6,972) |
Plus (less): impact of ASU 2016-01 | (442) | 13,157 | (43,525) | 33,711 | ||||
Net income excluding the impact of ASU 2016-01 | $ | 12,399 | $ | 10,827 | $ | 36,862 | $ | 26,739 |
Return on average assets excluding the impact of ASU 2016-01 | 1.13% | 1.20% | 1.18% | 1.08% | ||||
Return on average equity excluding the impact of ASU 2016-01 | 10.86% | 12.27% | 11.30% | 10.13% |
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Southern BancShares (N.C.) Inc. published this content on 08 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 November 2021 16:34:04 UTC.