The Southern Banc Company, Inc. Announces Third Quarter Earnings

Gadsden, Alabama, UNITED STATES


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 
             



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