The Southern Banc Company, Inc. Announces Second Quarter Earnings
February 07, 2023 at 12:54 pm EST
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GADSDEN, Ala., Feb. 07, 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 net income of approximately $612,000, or $0.81 per basic share and $0.80 per diluted share, for the quarter ended December 31, 2022, as compared to net income of approximately $451,000, or $0.60 per basic and diluted share, for the quarter ended December 31, 2021. For the six months ended December 31, 2022, the Company recorded net income of approximately $1,231,000, or $1.63 per basic share and $1.61 per diluted share, as compared to net income of approximately $694,000, or $0.92 per basic and diluted share, for the six months ended December 31, 2021.
Gates Little, President and Chief Executive Officer of the Company, stated that the Company’s net interest margins increased approximately $343,000 during the quarter, as compared to the same period in 2021. Net interest income before provision for loan losses for the quarter ended December 31, 2022 was approximately $2.0 million, as compared to approximately $1.7 million for the quarter ended December 31, 2021, an increase of approximately $343,000, or 20.6%. The increase in the net interest margin before provision for loan losses for the quarter was primarily attributable to an increase in total interest income of approximately $399,000, offset by an increase in total interest expense of approximately $56,000. For the three months ended December 31, 2022 and 2021, no additional provision for loan and lease losses was required. For the quarter ended December 31, 2022, total non-interest income increased approximately $15,000, or 13.0%, while total non-interest expense increased approximately $140,000, or 11.9%, as compared to the same three-month period in 2021. The increase in non-interest income was primarily attributable to an increase in miscellaneous income of approximately $16,000, or 23.1%. The increase in non-interest expense was primarily attributable to increases in salaries and benefits of approximately $165,000, office building expenses of approximately $3,000, and other operating expenses of approximately $5,000, offset in part by decreases in professional service expense of approximately $8,000, and data processing expenses of approximately $25,000.
The Company’s total assets at December 31, 2022 were $109.9 million, as compared to $115.3 million at June 30, 2022. Total stockholders’ equity was approximately $10.6 million at December 31, 2022, or 9.6% of total assets, as compared to approximately $10.6 million at June 30, 2022, or 9.2% 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. 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.
(Selected financial data attached)
THE SOUTHERN BANC COMPANY, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Dollar Amounts in Thousands)
December 31,
June 30,
2022
2022
Unaudited
Audited
ASSETS
CASH AND CASH EQUIVALENTS
$
5,711
$
10,039
SECURITIES AVAILABLE FOR SALE, at fair value
41,903
45,345
FEDERAL HOME LOAN BANK STOCK
311
141
LOANS RECEIVABLE, net of allowance for loan losses
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.