The Southern Banc Company, Inc. Announces Preliminary Fourth Quarter Earnings


GADSDEN, Ala., Aug. 15, 2024 (GLOBE NEWSWIRE) -- Gates Little, President and Chief Executive Officer of The Southern Banc Company, Inc. (OTCBB: SRNN), the holding company for The Southern Bank Company, announced preliminary unaudited results (subject to audit adjustments following the fiscal year-end audit) of operations for the fourth quarter and year ended June 30, 2024:

  • For the three months ended June 30, 2024, the Company reported net income of approximately $424,000, or $0.56 per basic and $0.55 per diluted share as compared to net income of approximately $784,000, or $1.03 per basic and $1.02 per diluted share, for the three months ended June 30, 2023. 
  • For the fiscal year ended June 30, 2024, the Company recorded net income of approximately $1,602,000, or $2.11 per basic and $2.09 per diluted share, as compared to net income of approximately $2,474,000, or $3.26 per basic and $3.24 per diluted share, for the fiscal year ended June 30, 2023.
  • For the three months ended June 30, 2024, net interest income decreased approximately $240,000, or (10.52%) as compared to the same period in 2023. The decrease in net interest income for the three-month period was primarily attributable to an increase in interest and fees on loans in the amount of approximately $133,000 or 5.65%, an increase in other interest income of approximately $55,000, or 57.44%, offset in part by an increase in interest on deposits of approximately $270,000, or 81.08%. For the three months ended June 30, 2024, the Company recorded approximately $155,000 in provisions for loan losses as compared to the same period in 2023. For the three months ended June 30, 2024, total interest paid on deposits and borrowings increased approximately $250,000, or 71.02% as compared to the same period in 2023. The current interest rate environment continues to have an impact on the bank’s lending and deposit activities.
  • For the fiscal year ended June 30, 2024, net interest income decreased approximately $346,000, or (4.17%) as compared to fiscal year 2023. The decrease in net interest income for the fiscal year ended June 30, 2024, was primarily attributable to an increase in interest and fees on loans of approximately $510,000 or 6.17%, an increase in other interest income of approximately $230,000 or 100.44%, offset in part by an increase in interest on deposits of approximately $1,175,000, or 143.19% as compared to fiscal year 2023. For the fiscal year ended June 30, 2024, the Company recorded approximately $155,000 in provisions for loan losses as compared to no provision in 2023. For the fiscal year ended June 30, 2024, total interest paid on deposits and borrowings increased approximately $1,071,000, or 115.56%.
  • For the three months ended June 30, 2024, non-interest income increased approximately $13,000, or 8.5% as compared to the same period in 2023. The increase in non-interest income was primarily attributable to an increase in miscellaneous income of approximately $25,000, or 21.5% offset in part by a decrease in customer service fees of approximately $12,000, or (24.91%).
  • For the fiscal year ended June 30, 2024, non-interest income increased approximately $120,000, or 22.46% as compared to fiscal year 2023. The increase in non-interest income was primarily attributable to an increase in miscellaneous income of approximately $151,000, or 40.78% offset in part by a decrease in customer service fees of approximately $31,000, or (18.66%).
  • For the three months ended June 30, 2024, total non-interest expenses increased approximately $251,000, or 17.82%, as compared to the same three-month period in 2023. The increase in non-interest expense for the three-month period was primarily attributable to increases in salaries and benefits of approximately $157,000, or 17.78%, office occupancy expenses of approximately $21,000, or 29.30%, professional services of approximately $56,000, or 52.01%, and other operating expenses of approximately $21,000, or 13.38%, offset in part by decreases in data processing expenses of approximately $4,000, or (1.41%).
  • For the fiscal year ended June 30, 2024, total non-interest expenses increased approximately $795,000, or 14.43%, as compared to fiscal year 2023. The increase in total non-interest expense for the fiscal year was primarily attributable to increases in salary and benefit expenses of approximately $468,000, or 14.01%, other operating expenses of approximately $129,000, or 19.46%, professional services expenses of approximately $49,000, or 9.06%, data processing expenses of approximately $73,000, or 10.46%, and office occupancy expenses of approximately $77,000, or 27.69%.
  • The Company’s total assets on June 30, 2024, were approximately $113.1 million as compared to $108.6 million at June 30, 2023. Total stockholders’ equity was approximately $14.5 million, or 12.79% of assets and $12.1 million, or 11.16% of assets at June 30, 2024 and 2023, respectively.

The unaudited financial information for the three and twelve months ended June 30, 2024, has been prepared on the same basis as our audited financial information and includes, in the opinion of management, all adjustments necessary to present the data for such periods. The Company expects to release its final year end results and its related audited financial statements in October 2024, following completion of the year-end audit. Historical results are not necessarily indicative of future results. 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.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollar Amounts in Thousands)
 
  June 30,  June 30,
  2024  2023
  (Unaudited)  (Audited)
      
ASSETS     
      
CASH AND CASH EQUIVALENTS$12,632  $8,745 
SECURITIES AVAILABLE FOR SALE, at fair value 37,912   40,425 
FEDERAL HOME LOAN BANK (FHLB) STOCK 120   98 
LOANS RECEIVABLE, net of allowance for loan losses of $1,160 and $1,049, respectively 58,199   55,356 
PREMISES AND EQUIPMENT, net 1,133   858 
ACCRUED INTEREST AND DIVIDENDS RECEIVABLE 934   782 
PREPAID EXPENSES AND OTHER ASSETS 2,166   2,367 
      
TOTAL ASSETS$113,096  $108,631 
      
LIABILITIES     
      
DEPOSITS$92,250  $90,952 
FHLB ADVANCES AND OTHER BORROWED MONEY 0   0 
OTHER LIABILITIES 6,380   5,557 
      
TOTAL LIABILITIES 98,630   96,609 
      
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, 806,086 shares outstanding 15   15 
Additional paid-in capital 13,943   13,938 
Shares held in trust, 46,454 and 44,829 shares at cost, respectively (772)  (752)
Retained earnings 13,884   12,280 
Treasury stock, at cost, 648,664 shares (8,825)  (8,825)
Accumulated other comprehensive income / (loss) (3,779)  (4,534)
        
TOTAL STOCKHOLDERS’ EQUITY 14,466   12,122 
        
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$113,096  $108,631 
      

 

 
THE SOUTHERN BANC COMPANY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollar Amounts in Thousands, except per share data)
 
  Three Months Ended  Year Ended
  June 30,  June 30,
            
  2024
(Unaudited)
  2023
(Unaudited)
  2024
(Unaudited)
  2023
(Audited)
            
INTEREST INCOME:           
            
Interest and fees on loans$2,480 $2,347 $8,764 $8,254
Interest and dividends on securities 166  188  717  732
Other interest income 150  95  460  230
            
Total interest income 2,796  2,630  9,941  9,216
            
INTEREST EXPENSE:           
Interest on deposits 603  333  1,995  820
Interest on borrowings 0  20  1  105
Total interest expense 603  353  1,996  925
Net interest income before provision for loan losses 2,192  2,277  7,945  8,291
Provision for loan losses 155  0  155  0
Net interest income after provision for loan losses 2,037  2,277  7,790  8,291
            
NON-INTEREST INCOME:           
Fees and other non-interest income 34  46  135  166
Gain / (loss) on sale of securities, net 0  0  0  0
Miscellaneous income 142  117  523  372
Total non-interest income 176  163  658  538
            
NON-INTEREST EXPENSE:           
Salaries and employee benefits 1,036  879  3,808  3,287
Equipment and Occupancy expenses 91  70  355  280
Professional Services Expense 163  107  583  535
Data Processing Expense 189  193  769  696
Other operating expense 186  165  793  717
Total non-interest expense 1,665  1,414  6,308  5,515
            
Income before income taxes 548  1,026  2,140  3,313
            
PROVISION FOR INCOME TAXES 124  242  538  839
            
Net Income$424 $784 $1,602 $2,474
            
EARNINGS PER SHARE:           
Basic$0.56 $1.03 $2.11 $3.26
Diluted$0.55 $1.02 $2.09 $3.24
            
DIVIDENDS DECLARED PER SHARE$--- $--- $--- $---
            
AVERAGE SHARES OUTSTANDING:           
Basic 759,632  761,374  760,456  758,651
Diluted 765,895  768,306  767,318  763,064
            

Contact: Gates Little
(256) 543-3860