The Southern Banc Company, Inc. Announces First Quarter Earnings
November 10, 2023 at 11:59 am EST
Share
GADSDEN, Ala., Nov. 10, 2023 (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 $367,000, or $0.48 per basic and diluted share, for the quarter ended September 30, 2023, as compared to a net income of approximately $619,000, or $0.82 per basic share and $0.81 per diluted share, for the quarter ended September 30, 2022.
Gates Little, President and Chief Executive Officer of the Company stated that the Company’s net interest margins decreased approximately $246,000 or (11.60%) during the quarter as compared to the same period in 2022. For the three-months ended September 30, 2023, total interest income increased by approximately $35,000 or 1.60% as compared to the same period in 2022. Total interest expense increased approximately $281,000 or 260.96% for the three-months ended September 30, 2023, as compared to the same period in 2022. There were no provisions for loan and lease losses during the quarters ended September 30, 2023 and 2022. For the quarter ended September 30, 2023, total non-interest income increased approximately by $29,000 or 24.58%, while total non-interest expense increased approximately by $124,000 or 8.93% as compared to the same three-month period in 2022. The increase in non-interest income was primarily attributable to increases in miscellaneous income of approximately $30,000 or 36.92% offset in part by a decrease in customer service fees of approximately $1,000 or (2.07%). The increase in non-interest expense was primarily attributable to increases in salaries and benefits of approximately $113,000 or 14.27%; other operating expenses of approximately $31,000 or 16.66%; occupancy expenses of approximately $17,000 or 24.45% and data processing expenses of approximately $18,000 or 11.32%, offset in part by a decrease in professional service expenses of approximately $55,000 or (30.34%).
The Company’s total assets at September 30, 2023 were 105.4 million, as compared to $108.6 million at June 30, 2023. Total stockholders’ equity was approximately $12.0 million at September 30, 2023, or 11.36% of total assets, as compared to approximately $12.1 million at June 30, 2023, or approximately 11.16% of total assets.
The Bank has four offices located in Gadsden, Albertville, Guntersville, and Centre, Alabama and a loan production office located in Birmingham, AL. The stock of The Southern Banc Company, Inc. trades in the over-the-counter market 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.
THE SOUTHERN BANC COMPANY, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollar Amounts in Thousands)
September 30,
June 30,
2023
2023
Unaudited
Audited
ASSETS
CASH AND CASH EQUIVALENTS
$
7,527
$
8,745
SECURITIES AVAILABLE FOR SALE, at fair value
39,075
40,425
FEDERAL HOME LOAN BANK STOCK
120
98
LOANS RECEIVABLE, net of allowance for loan losses
of $1,045 and $1,049
54,214
55,356
PREMISES AND EQUIPMENT, net
1,122
858
ACCRUED INTEREST AND DIVIDENDS RECEIVABLE
758
782
PREPAID EXPENSES AND OTHER ASSETS
2,536
2,367
TOTAL ASSETS
$
105,352
$
108,631
LIABILITIES
DEPOSITS
$
87,727
$
90,952
FHLB ADVANCES
0
0
OTHER LIABILITIES
5,657
5,557
TOTAL LIABILITIES
93,384
96,509
STOCKHOLDERS' EQUITY:
Preferred stock, par value $.01 per share
500,000 shares authorized; no shares issued
and outstanding
-
-
Common stock, par value $.01 per share,
3,500,000 authorized, 1,454,750 shares issued
15
15
Additional paid-in capital
13,939
13,938
Shares held in trust, 44,829 at cost
(752
)
(752
)
Retained earnings
12,649
12,280
Treasury stock, at cost, 648,664 shares
(8,825
)
(8,825
)
Accumulated other comprehensive (loss) income
(5,058
)
(4,534
)
TOTAL STOCKHOLDERS’ EQUITY
11,968
12,122
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$
105,352
$
108,631
THE SOUTHERN BANC COMPANY, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollar Amounts in Thousands, except per share data)
The Southern Banc Company, Inc. is a holding company for The Southern Bank Company (the Bank). The Bank is primarily engaged in the business of obtaining funds in the form of various deposit products and investing those funds in mortgage loans or single-family real estate, commercial and consumer loans. The Bank operates from its four offices in the northeast portion of Alabama and originates the majority of its loans in this market area. The Bank also operates a division that conducts accounts receivable management (factoring) of commercial accounts. The Bank offers a range of accounts and services, including checking accounts, home mortgages, home equity loans, auto loans and personal loans. The Bank works with small and medium-sized business customers to offer practical solutions for deposit and borrowing needs. Its business banking services include real estate lending, equipment financing, cash flow management and business checking.