The Southern Banc Company, Inc. Announces Third Quarter Earnings

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

Contact:
Gates Little
(256) 543-3860

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