The Southern Banc Company, Inc. Announces First Quarter Earnings

Rhea-AI Summary

The Southern Banc Company (SRNN) reported Q1 2024 net income of $176,000 ($0.23 per share), down from $367,000 ($0.48 per share) in Q1 2023. Net interest income decreased by 5.06%. Total interest income increased by 23.65%, while interest expense rose by 65.79%. The company recorded provisions for credit losses of $373,000 compared to none in the previous year. Non-interest income increased by 2.10%, while non-interest expenses rose by 10.93%. Total assets reached $113.5 million, with stockholders' equity at $15.7 million (13.82% of total assets).

Positive

• Total interest income increased by 23.65% to $536,000
• Non-interest income grew by 2.10%
• Total assets increased from $113.0M to $113.5M
• Stockholders' equity improved from 12.80% to 13.82% of total assets

Negative

• Net income decreased by 52% from $367,000 to $176,000
• Net interest income declined by 5.06%
• Interest expenses increased by 65.79%
• New provisions for credit losses of $373,000 compared to zero last year
• Non-interest expenses increased by 10.93%

GADSDEN, Ala., Nov. 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 a net income of approximately $176,000, or $0.23 per basic and diluted share, for the quarter ended September 30, 2024, as compared to a net income of approximately $367,000, or $0.48 per basic and diluted share, for the quarter ended September 30, 2023.

Gates Little, President and Chief Executive Officer of the Company stated that the Company’s net interest income decreased approximately $95,000 or (5.06%) during the quarter as compared to the same period in 2023. For the three-months ended September 30, 2024, total interest income increased by approximately $536,000 or 23.65% as compared to the same period in 2023. Total interest expense increased approximately $256,000 or 65.79% for the three-months ended September 30, 2024, as compared to the same period in 2023. During the three-months ended September 30, 2024, provisions for credit losses was approximately $373,000 compared to no provisions for the three-months ended September 30, 2023. For the quarter ended September 30, 2024, total non-interest income increased approximately by $3,000 or 2.10%, while total non-interest expense increased approximately by $167,000 or 10.93% as compared to the same three-month period in 2023. The increase in non-interest income was primarily attributable to increases in miscellaneous income of approximately $4,000 or 3.72% offset in part by a decrease in customer service fees of approximately $1,000 or (2.79%). The increase in non-interest expense was primarily attributable to increases in salaries and benefits of approximately $119,000 or 13.09%; occupancy expenses of approximately $8,000 or 9.26%, professional service expenses of approximately $74,000 or 58.41%, offset in part by decreases in other operating expenses of approximately $32,000 or (14.50%) and data processing expenses of approximately $2,000 or (1.60%).
        
The Company’s total assets at September 30, 2024 were $113.5 million, as compared to $113.0 million at June 30, 2024. Total stockholders’ equity was approximately $15.7 million at September 30, 2024, or 13.82% of total assets, as compared to approximately $14.5 million at June 30, 2024, or approximately 12.80% of total assets.

The Bank has four offices located in Gadsden, Albertville, Guntersville, and Centre, Alabama and a loan production office located 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 on following pages)
THE SOUTHERN BANC COMPANY, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollar Amounts in Thousands)
		September 30,				June 30,
		2024				2024
		Unaudited				Audited
ASSETS
CASH AND CASH EQUIVALENTS	$	12,426			$	12,632
SECURITIES AVAILABLE FOR SALE, at fair value		38,539				37,912
FEDERAL HOME LOAN BANK STOCK		120				120
LOANS RECEIVABLE, net of allowance for loan losses
of $1,483 and $1,160		58,742				58,199
PREMISES AND EQUIPMENT, net		1,098				1,133
ACCRUED INTEREST AND DIVIDENDS RECEIVABLE		913				934
PREPAID EXPENSES AND OTHER ASSETS		1,698				2,124
TOTAL ASSETS	$	113,536			$	113,054
LIABILITIES
DEPOSITS	$	91,098			$	92,250
OTHER LIABILITIES		6,748				6,338
TOTAL LIABILITIES		97,846				98,588
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		13,945				13,943
Shares held in trust, 46,454 at cost		(772	)			(772	)
Retained earnings		14,060				13,884
Treasury stock, at cost, 648,664 shares		(8,825	)			(8,825	)
Accumulated other comprehensive (loss) income		(2,733	)			(3,779	)
TOTAL STOCKHOLDERS’ EQUITY		15,690				14,466
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	113,536			$	113,054

     

THE SOUTHERN BANC COMPANY, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollar Amounts in Thousands, except per share data)
		Three Months Ended
		September 30,
		2024			2023
		(Unaudited)			(Unaudited)
INTEREST INCOME:
Interest and fees on loans	$	2,474		$	1,966
Interest and dividends on securities		166			185
Other interest income		155			108
Total interest income		2,795			2,260
INTEREST EXPENSE:
Interest on deposits		645			389
Interest on borrowings		-			-
Total interest expense		645			389
Net interest income before provision		2,150			1,871
for loan losses
Provision for loan losses		373			-
Net interest income after provision		1,777			1,871
for loan losses
NON-INTEREST INCOME:
Fees and other non-interest income		35			36
Net gain on sale of securities		-			-
Miscellaneous income		113			109
Total non-interest income		148			145
NON-INTEREST EXPENSE:
Salaries and employee benefits		1,025			906
Office building and equipment expenses		94			86
Professional Services Expense		201			127
Data Processing Expense		182			184
Other operating expense		185			217
Total non-interest expense		1,687			1,521
Income before income tax expense		238			496
INCOME TAX EXPENSE		62			129
Net Income	$	176		$	367
INCOME PER SHARE:
Basic	$	0.23		$	0.48
Diluted		0.23			0.48
DIVIDENDS DECLARED PER SHARE	$	-		$	-
AVERAGE SHARES OUTSTANDING:
Basic		759,632			761,257
Diluted		765,236			768,861

Contact: Gates Little                
(256) 543-3860

FAQ

What was Southern Banc's (SRNN) earnings per share for Q1 2024?

Southern Banc reported earnings of $0.23 per basic and diluted share for Q1 2024.

How much did Southern Banc's (SRNN) net income change in Q1 2024 compared to Q1 2023?

Net income decreased from $367,000 in Q1 2023 to $176,000 in Q1 2024, representing a 52% decline.

What was Southern Banc's (SRNN) total assets value as of September 30, 2024?

Southern Banc's total assets were $113.5 million as of September 30, 2024.

How much were Southern Banc's (SRNN) provisions for credit losses in Q1 2024?

The provisions for credit losses were $373,000 in Q1 2024, compared to no provisions in Q1 2023.