The Southern Banc Company, Inc. Announces Second Quarter Earnings


GADSDEN, Ala., Feb. 15, 2024 (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 $471,000, or $0.62 per basic share and $0.61 per diluted share, for the three months ended December 31, 2023, as compared to net income of approximately $612,000, or $0.81 per basic share and $0.80 per diluted share, for the three months ended December 31, 2022. For the six months ended December 31, 2023, the Company recorded net income of approximately $837,000, or $1.10 per basic share and $1.09 per diluted share, as compared to net income of approximately $1,231,000, or $1.63 per basic share and $1.61 per diluted share, for the six months ended December 31, 2022. The Company’s fiscal year ends June 30, 2024.

Gates Little, President and Chief Executive Officer of the Company, stated that the Company’s net interest income before provision for loan losses totaled approximately $2.013 million during the three months ended December 31, 2023, as compared to approximately $2.008 million in the same period in 2022, an increase of approximately $5,000, or 0.21%. The increase in the net interest income before provision for loan losses for the three months ended December 31, 2023 was primarily attributable to an increase in total interest income of approximately $289,000, offset by an increase in total interest expense of approximately $284,000. In the three months ended in both December 31, 2023, and 2022, the Bank made no provision for loan losses. For the three months ended December 31, 2023, total non-interest income increased approximately $18,000, or 14.4%, while total non-interest expense increased approximately $214,000, or 16.4%, as compared to the same three-month period in 2022. The increase in non-interest income was primarily attributable to an increase in miscellaneous income of approximately $29,000. The increase in non-interest expense was primarily attributable to increases in salaries and benefits of approximately $108,000, office building expense of approximately $17,000, other operating expense of approximately $44,000, professional service expense of approximately $11,000, and data processing expense of approximately $34,000.

For the six months ended December 31, 2023, the Company’s net interest income before provision for loan losses totaled approximately $3.884 million, a decrease of approximately $241,000, or 5.85%, when compared to the six months ended December 31, 2022. The decrease in net interest income before provision for loan losses was primarily attributable to an increase in total interest income of approximately $324,000 offset by an increase in total interest expense of approximately $565,000. There was no provision for loan losses in the six months ended December 31, 2023 or for the same period in 2022. For the six months ended December 31, 2023, total non-interest income increased approximately $47,000, or 19.27%, compared to the same period in 2022, while non-interest expense increased approximately $339,000, or 12.53%. The increase in non-interest income was primarily attributable to an increase in miscellaneous income of approximately $59,000. The increase in non-interest expense was primarily attributable to increases in salaries and benefits of approximately $221,000, office and equipment of approximately $34,000, data processing expense of approximately $52,000, and other operating expense of approximately $75,000.

The Company’s total assets at December 31, 2023 were approximately $109.7 million, as compared to approximately $108.6 million at June 30, 2023. Total stockholders’ equity was approximately $13.7 million at December 31, 2023, or 12.5% of total assets, as compared to approximately $12.1 million at June 30, 2023, or 11.2% 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,
2023
Unaudited
  June 30,
2023
Audited
 
ASSETS        
CASH AND CASH EQUIVALENTS$11,344  $8,745  
SECURITIES AVAILABLE FOR SALE, at fair value 40,222   40,425  
FEDERAL HOME LOAN BANK STOCK 120   98  
LOANS RECEIVABLE, net of allowance for loan losses
    of $971 and $1,049
 53,929   55,356  
PREMISES AND EQUIPMENT, net 1,112   858  
ACCRUED INTEREST AND DIVIDENDS RECEIVABLE 822   782  
PREPAID EXPENSES AND OTHER ASSETS 2,142   2,367  
         
TOTAL ASSETS$109,691  $108,631  
         
LIABILITIES        
DEPOSITS$90,431  $90,952  
FHLB ADVANCES 0   0  
OTHER LIABILITIES 5,558   5,557  
TOTAL LIABILITIES 95,989   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 13,940   13,938  
 Shares held in trust, 44,829 shares at cost (752)  (752) 
 Retained earnings 13,120   12,280  
 Treasury stock, at cost, 648,664 shares (8,825)  (8,825) 
 Accumulated other comprehensive (loss) income (3,796)  (4,534) 
TOTAL STOCKHOLDERS’ EQUITY 13,702   12,122  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$109,691  $108,631  
 


THE SOUTHERN BANC COMPANY, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollar Amounts in Thousands, except per share data)
 
  Three Months Ended
December 31,
  Six Months Ended
December 31,
 
  2023
(Unaudited)
  2022  2023
(Unaudited)
 2022
 
INTEREST INCOME:
           
            
   Interest and fees on loans$2,210 $1,960 $4,176$3,967 
   Interest and dividends on securities 183  195  369 388 
   Other interest income 80  29  188 54 
            
            Total interest income 2,473  2,184  4,733 4,409 
            
INTEREST EXPENSE:           
   Interest on deposits 460  132  849 239 
   Interest on borrowings 0  44  0 45 
              Total interest expense 460  176  849 284 
              Net interest income before provision
              for loan losses
 2,013  2,008  3,884 4,125 
   Provision for loan losses 0  0  0 0 
              Net interest income after provision
                 for loan losses
 2,013  2,008  3,884 
4,125
 
            
NON-INTEREST INCOME:           
   Fees and other non-interest income 32  43  68 80 
   Miscellaneous income 114  85  223 164 
   Total non-interest income 146  128  291 244 
            
NON-INTEREST EXPENSE:           
   Salaries and employee benefits 916  808  1,823 1,602 
   Office building and equipment expenses 84  67  170 136 
   Professional Services Expense 125  114  252 295 
   Data Processing Expense 200  166  384 332 
   Other operating expense 197  153  414 339 
                          Total non-interest expense 1,522  1,308  3,043 2,704 
            
   Income before income taxes 637  828  1,132 1,665 
            
PROVISION FOR INCOME TAXES 166  216  295 434 
            
              Net Income$471 $612 $837$1,231 
            
EARNINGS PER SHARE:           
              Basic$0.62 $0.81 $1.10$1.63 
              Diluted$0.61 $0.80 $1.09$1.61 
            
DIVIDENDS DECLARED PER SHARE$--- $--- $---$--- 
            
AVERAGE SHARES OUTSTANDING:           
             Basic 761,257  756,374  761,257 756,374 
             Diluted 768,395  764,094  768,628 763,818 
 



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