The Southern Banc Company, Inc. Announces Third Quarter Earnings

Gadsden, Alabama, UNITED STATES


GADSDEN, Ala., May 13, 2022 (GLOBE NEWSWIRE) -- The Southern Banc Company, Inc. (OTCBB: SRNN), the holding company for The Southern Bank Company (the “Bank”), announced net income of approximately $472,000, or $0.62 per basic and diluted share, for the quarter ended March 31, 2022, as compared to net income of approximately $138,000, or $0.18 per basic and diluted share, for the quarter ended March 31, 2021. The Company announced that for the nine-month period ended March 31, 2022, the Company recorded net income of approximately $1,165,000, as compared to net income of approximately $307,000 for the nine-month period ended March 31, 2021.

Gates Little, President and Chief Executive Officer of the Company stated that the Company’s net interest margins increased approximately $582,000, or 50.4%, during the quarter as compared to the same period in 2021. 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 $57,000 and an increase in total interest income of approximately $525,000. For the three months ended March 31, 2022 and March 31, 2021 the Company recorded no provision for loan and lease losses. For the quarter ended March 31, 2022, total non-interest income increased approximately $40,000, or 54.5%, while total non-interest expense increased approximately $171,000, or 16.4%, 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 $25,000 and an increase in customer services fees of approximately $14,000. The increase in non-interest expense was primarily attributable to increases in salaries and benefits of approximately $117,000, data processing expenses of approximately $34,000, and occupancy expenses of approximately $8,000.

For the nine-months ended March 31, 2022, net interest income increased approximately $1,500,000, or 46.3%. Provision for loan and lease losses decreased approximately $41,000, or 100.0%, during the nine-month period as compared to the same period in 2021. Net interest income after provision for loan and lease losses increased approximately $1,541,000, or 48.22%, for the nine-months ended March 31, 2022, as compared to the same period in 2021. For the nine-months ended March 31, 2022, total non-interest income increased approximately $109,000, or 47.8%, while total non-interest expense increased approximately $492,000, or 16.4%, as compared to the same period in 2021. The increase in non-interest income was primarily attributable to an increase in miscellaneous income of approximately $79,000, or 58.3%, and an increase in customer service fees of approximately $30,000, or 32.6%. The increase in non-interest expense was primarily attributable to increases in salaries and benefits of approximately $323,000, data processing expenses of approximately $80,000 and professional service expense of approximately $38,000. President Little went on to say that approximately 80% of the increase in net interest income was due to growth in the Bank’s factoring of business receivables and other assets.

The Company’s total assets at March 31, 2022 were approximately $114.6 million, as compared to $112.4 million at June 30, 2021. Total stockholders’ equity was approximately $11.2 million at March 31, 2022 or 9.7% of total assets as compared to approximately $12.4 million at June 30, 2021 or approximately 11.1% 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 that conducts factoring activities. Common 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)

  March 31,  June 30,
  2022   2021 
  (Unaudited)  (Audited)
      
ASSETS

     
CASH AND CASH EQUIVALENTS$8,460  $11,417 
        
SECURITIES AVAILABLE FOR SALE, at fair value 48,008   44,608 
      
FEDERAL HOME LOAN BANK STOCK 141   141 
      
LOANS RECEIVABLE, net of allowance for loan losses of $887 and $827, respectively 55,759   54,127 
PREMISES AND EQUIPMENT, net 764   727 
ACCRUED INTEREST AND DIVIDENDS RECEIVABLE 258   276 
PREPAID EXPENSES AND OTHER ASSETS 1,215   1,128 
      
TOTAL ASSETS$114,605  $112,425 
      
LIABILITIES
     
      
DEPOSITS$98,197  $93,839 
FHLB ADVANCES AND OTHER BORROWED MONEY 1,000   430 
OTHER LIABILITIES 4,257   5,701 
      
TOTAL LIABILITIES 103,454   99,970 
      
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 13,929   13,922 
Shares held in trust, 49,712 and 45,243 shares at cost, Respectively (793)  (761)
Retained earnings 9,234   8,070 
Treasury stock, at cost, 648,664 shares (8,825)  (8,825)
Accumulated other comprehensive (loss) income (2,409)  35 
        
TOTAL STOCKHOLDERS’ EQUITY 11,151   12,454 
        
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$114,605  $112,425 
      



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,
            
  2022
(Unaudited)
  2021  2022
(Unaudited)
  2021

            
INTEREST INCOME:
           
            
Interest and fees on loans$1,666 $1,173 $4,600 $3,434
Interest and dividends on securities 176  145  486  440
Other interest income 4  3  9  7
            
Total interest income 1,846  1,321  5,095  3,881
            
INTEREST EXPENSE:           
Interest on deposits 109  165  359  645
Interest on borrowings 0  0  0  0
Total interest expense 109  165  359  645
Net interest income before provision for loan losses 1,737  1,155  4,736  3,236
Provision for loan losses 0  0  0  41
Net interest income after provision for loan losses 1,737  1,155  4,736  3,195
            
NON-INTEREST INCOME:           
Fees and other non-interest income 45  31  124  93
Net gain on sale of securities 0  0  0  0
Miscellaneous income 68  42  213  135
Total non-interest income 113  73  337  228
            
NON-INTEREST EXPENSE:           
Salaries and employee benefits 691  573  1,955  1,630
Office building and equipment expenses 68  60  198  180
Professional Services Expense 105  105  334  296
Data Processing Expense 191  157  551  471
Net loss on sale of securities 0  0  0  0
Other operating expense 157  146  458  427
      Total non-interest expense 1,212  1,041  3,496  3,004
            
Income before income taxes 638  187  1,577  419
            
PROVISION FOR INCOME TAXES 166  49  412  112
            
Net Income$472 $138 $1,165 $307
            
EARNINGS PER SHARE:           
Basic$0.62 $0.18 $1.54 $0.40
Diluted$0.62 $0.18 $1.54 $0.40
            
DIVIDENDS DECLARED PER SHARE$--- $--- $--- $---
            
AVERAGE SHARES OUTSTANDING:           
Basic 756,374  761,335  757,055  761,335
Diluted 758,942  761,335  758,181  761,335




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