The Southern Banc Company, Inc. Announces First Quarter Earnings

Rhea-AI Summary

SRNN - The Southern Banc Company, Inc. Reports Q3 2023 Financial Results, Net Income Down 40%

Positive

• The company reported a net income of $367,000, or $0.48 per basic and diluted share, for Q3 2023, compared to a net income of $619,000, or $0.82 per basic share and $0.81 per diluted share, for Q3 2022.
• Total interest income increased by approximately $35,000 or 1.60% for the three-months ended September 30, 2023, compared to the same period in 2022.
• The company's total assets at September 30, 2023 were $105.4 million, as compared to $108.6 million at June 30, 2023.

Negative

• Net interest margins decreased approximately $246,000 or (11.60%) during Q3 2023 compared to the same period in 2022.
• Total interest expense increased approximately $281,000 or 260.96% for the three-months ended September 30, 2023, compared to the same period in 2022.

GADSDEN, Ala., Nov. 10, 2023 (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 $367,000, or $0.48 per basic and diluted share, for the quarter ended September 30, 2023, as compared to a net income of approximately $619,000, or $0.82 per basic share and $0.81 per diluted share, for the quarter ended September 30, 2022.

Gates Little, President and Chief Executive Officer of the Company stated that the Company’s net interest margins decreased approximately $246,000 or (11.60%) during the quarter as compared to the same period in 2022. For the three-months ended September 30, 2023, total interest income increased by approximately $35,000 or 1.60% as compared to the same period in 2022. Total interest expense increased approximately $281,000 or 260.96% for the three-months ended September 30, 2023, as compared to the same period in 2022. There were no provisions for loan and lease losses during the quarters ended September 30, 2023 and 2022. For the quarter ended September 30, 2023, total non-interest income increased approximately by $29,000 or 24.58%, while total non-interest expense increased approximately by $124,000 or 8.93% as compared to the same three-month period in 2022. The increase in non-interest income was primarily attributable to increases in miscellaneous income of approximately $30,000 or 36.92% offset in part by a decrease in customer service fees of approximately $1,000 or (2.07%). The increase in non-interest expense was primarily attributable to increases in salaries and benefits of approximately $113,000 or 14.27%; other operating expenses of approximately $31,000 or 16.66%; occupancy expenses of approximately $17,000 or 24.45% and data processing expenses of approximately $18,000 or 11.32%, offset in part by a decrease in professional service expenses of approximately $55,000 or (30.34%).

The Company’s total assets at September 30, 2023 were 105.4 million, as compared to $108.6 million at June 30, 2023. Total stockholders’ equity was approximately $12.0 million at September 30, 2023, or 11.36% of total assets, as compared to approximately $12.1 million at June 30, 2023, or approximately 11.16% 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.

THE SOUTHERN BANC COMPANY, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollar Amounts in Thousands)
		September 30,				June 30,
		2023				2023
		Unaudited				Audited
ASSETS
CASH AND CASH EQUIVALENTS	$	7,527			$	8,745
SECURITIES AVAILABLE FOR SALE, at fair value		39,075				40,425
FEDERAL HOME LOAN BANK STOCK		120				98
LOANS RECEIVABLE, net of allowance for loan losses
of $1,045 and $1,049		54,214				55,356
PREMISES AND EQUIPMENT, net		1,122				858
ACCRUED INTEREST AND DIVIDENDS RECEIVABLE		758				782
PREPAID EXPENSES AND OTHER ASSETS		2,536				2,367
TOTAL ASSETS	$	105,352			$	108,631
LIABILITIES
DEPOSITS	$	87,727			$	90,952
FHLB ADVANCES		0				0
OTHER LIABILITIES		5,657				5,557
TOTAL LIABILITIES		93,384				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		13,939				13,938
Shares held in trust, 44,829 at cost		(752	)			(752	)
Retained earnings		12,649				12,280
Treasury stock, at cost, 648,664 shares		(8,825	)			(8,825	)
Accumulated other comprehensive (loss) income		(5,058	)			(4,534	)
TOTAL STOCKHOLDERS’ EQUITY		11,968				12,122
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	105,352			$	108,631

          

THE SOUTHERN BANC COMPANY, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollar Amounts in Thousands, except per share data)
		Three Months Ended
		September 30,
		2023			2022
		(Unaudited)			(Unaudited)
INTEREST INCOME:
Interest and fees on loans	$	1,966		$	2,007
Interest and dividends on securities		185			193
Other interest income		108			25
Total interest income		2,260			2,225
INTEREST EXPENSE:
Interest on deposits		389			107
Interest on borrowings		0			1
Total interest expense		389			108
Net interest income before provision		1,871			2,117
for loan losses
Provision for loan losses		-			-
Net interest income after provision		1,871			2,117
for loan losses
NON-INTEREST INCOME:
Fees and other non-interest income		36			37
Net gain on sale of securities		-			-
Miscellaneous income		109			79
Total non-interest income		145			116
NON-INTEREST EXPENSE:
Salaries and employee benefits		906			793
Office building and equipment expenses		86			69
Professional Services Expense		127			182
Data Processing Expense		184			166
Other operating expense		217			186
Total non-interest expense		1,521			1,396
Income before income tax expense		496			837
INCOME TAX EXPENSE		129			218
Net Income	$	367		$	619
INCOME PER SHARE:
Basic	$	0.48		$	0.82
Diluted		0.48			0.81
DIVIDENDS DECLARED PER SHARE	$	-		$	-
AVERAGE SHARES OUTSTANDING:
Basic		761,257			756,374
Diluted		768,861			763,542

Contact: Gates Little
(256) 543-3860

FAQ

What was The Southern Banc Company, Inc.'s net income for Q3 2023?

The net income for Q3 2023 was $367,000, or $0.48 per basic and diluted share, compared to $619,000, or $0.82 per basic share and $0.81 per diluted share, for Q3 2022.

How did The Southern Banc Company, Inc.'s total assets change from June 30, 2023, to September 30, 2023?

The company's total assets decreased from $108.6 million at June 30, 2023, to $105.4 million at September 30, 2023.