The Southern Banc Company, Inc. Announces Second Quarter Earnings

Rhea-AI Summary

The Southern Banc Company (OTCBB: SRNN) reported a net income of approximately $140,000, or $0.18 per share, for Q4 2020, up from $75,000, or $0.10 per share, in Q4 2019. For the six-month period ending December 31, 2020, net income was approximately $169,000, or $0.22 per share, down from $201,000, or $0.26 per share in the previous year. The Company’s net interest income rose by 1.3% to $1.14 million. Non-interest income surged by 48.3%, while total non-interest expenses decreased by 4.2%. Total assets increased to $111.8 million, with stockholders’ equity at approximately $12.5 million.

Positive

• Net income for Q4 2020 increased by 86.7% compared to Q4 2019.
• Net interest income rose by 1.3% for the quarter.
• Total non-interest income increased by 48.3% for the quarter.
• Total assets grew to $111.8 million.

Negative

• Net income for the six-month period decreased by 15.9% compared to the previous year.
• Total stockholders' equity as a percentage of total assets decreased from 12.0% to 11.2%.

GADSDEN, Ala., Feb. 05, 2021 (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 $140,000 or $0.18 per basic and diluted share, for the quarter ended December 31, 2020, as compared to a net income of approximately $75,000 or $0.10 per basic and diluted share, for the quarter ended December 31, 2019. For the six months ended December 31, 2020, the Company recorded net income of approximately $169,000 or $0.22 per basic and diluted share, as compared to net income of approximately $201,000, or $0.26 per basic and diluted share for the six months ended December 31, 2019.

Gates Little, President and Chief Executive Officer of the Company, stated that the Company’s net interest margins increased approximately $15,000 during the quarter as compared to the same period in 2019. Net interest income before provision for loan losses for the quarter ended December 31, 2020 was approximately $1.14 million as compared to approximately $1.12 million for the quarter ended December 31, 2019, an increase of approximately $15,000, or 1.3%. 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 $62,000, offset by a decrease in total interest income of approximately $47,000. For the three months ended December 31, 2020 the Company recorded a provision for loan and lease losses of approximately $41,000 as compared to a provision of approximately $38,000 for the same period in 2019. Net interest income after provision for loan and lease losses increased approximately $12,000 or 1.1% for the quarter ended December 31, 2020, as compared to the same quarter in 2019. For the quarter ended December 31, 2020, total non-interest income increased approximately $32,000, or 48.3% while total non-interest expense decreased approximately $44,000 or (4.2%) as compared to the same three-month period in 2019. The increase in non-interest income was primarily attributable to gains of approximately $39,000 related to our leasing and mortgage lending activities, offset in part by a decrease in customer service fees of approximately $8,000 or (18.1%). The decrease in non-interest expense was primarily attributable to decreases in salaries and benefits of approximately $80,000 and professional service expense of approximately $22,000 offset in part by an increase in data processing expenses of approximately $22,000.

The Company’s total assets at December 31, 2020 were $111.8 million, as compared to $103.3 million at June 30, 2020. Total stockholders’ equity was approximately $12.5 million at December 31, 2020 or 11.2% of total assets as compared to approximately $12.3 million at June 30, 2020 or approximately 12.0% 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. 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. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Dollar Amounts in Thousands)
		December 31,				June 30,
		2020				2020
		(Unaudited)
ASSETS
CASH AND CASH EQUIVALENTS	$	17,099			$	25,766
SECURITIES AVAILABLE FOR SALE, at fair value		35,639				25,874
FEDERAL HOME LOAN BANK STOCK		174				174
LOANS RECEIVABLE, net  of allowance for loan losses
of $829 and $895, respectively		56,579				49,105
PREMISES AND EQUIPMENT, net		700				736
ACCRUED INTEREST AND DIVIDENDS RECEIVABLE		281				224
PREPAID EXPENSES AND OTHER ASSETS		1,294				1,423
TOTAL ASSETS	$	111,766			$	103,302
LIABILITIES
DEPOSITS	$	92,597			$	88,766
FHLB ADVANCES		0				0
OTHER LIABILITIES		6,657				2,188
TOTAL LIABILITIES		99,254				90,954
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		13,917				13,906
Shares held in trust, 45,243 and 44,506 shares at cost,
respectively		(761	)			(754	)
Retained earnings		7,761				7,592
Treasury stock, at cost
648,664 shares		(8,825	)			(8,825	)
Accumulated other comprehensive income		405				414
TOTAL STOCKHOLDERS’ EQUITY		12,512				12,348
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	111,766			$	103,302

                            

THE SOUTHERN BANC COMPANY, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Dollar Amounts in Thousands, except per share data)
		Three Months Ended						Year-to-Date
		December 31,						December 31,
		2020 (Unaudited)			2019			2020 (Unaudited)		2019
INTEREST INCOME:
Interest and fees on loans	$	1,212		$	1,236		$	2,261	$	2,488
Interest and dividends on securities		146			100			295		207
Other interest income		2			72			5		157
Total interest income		1,360			1,408			2,561		2,852
INTEREST EXPENSE:
Interest on deposits		222			284			480		565
Interest on borrowings		0			0			0		4
Total interest expense		222			284			480		569
Net interest income before provision
for loan losses		1,138			1,124			2,081		2,283
Provision for loan losses		41			38			41		44
Net interest income after provision
for loan losses		1,097			1,085			2,040		2,239
NON-INTEREST INCOME:
Fees and other non-interest income		35			43			63		73
Miscellaneous income		62			23			92		31
Total non-interest income		97			66			155		104
NON-INTEREST EXPENSE:
Salaries and employee benefits		512			592			1,058		1,177
Office building and equipment expenses		61			62			120		123
Professional Services Expense		102			124			190		226
Data Processing Expense		169			147			314		276
Other operating expense		159			123			281		266
Total non-interest expense		1,003			1,048			1,963		2,068
Income before income taxes		191			103			232		275
PROVISION FOR INCOME TAXES		51			28			63		74
Net Income	$	140		$	75		$	169	$	201
LOSS PER SHARE:
Basic	$	0.18		$	0.10		$	0.22	$	0.26
Diluted	$	0.18		$	0.10		$	0.22	$	0.26
DIVIDENDS DECLARED PER SHARE	$	---		$	---		$	---	$	---
AVERAGE SHARES OUTSTANDING:
Basic		764,146			766,826			764,146		766,826
Diluted		764,146			766,826			764,146		766,826

Contact:
Gates Little
(256) 543-3860

FAQ

What was the net income for Southern Banc Company in Q4 2020?

The net income for Southern Banc Company in Q4 2020 was approximately $140,000.

How much did Southern Banc's net interest income change in Q4 2020?

Net interest income increased by approximately $15,000 or 1.3% in Q4 2020 compared to Q4 2019.

What was the earnings per share for Southern Banc Company in Q4 2020?

Earnings per share for Q4 2020 were $0.18 per basic and diluted share.

Did Southern Banc Company experience an increase in assets?

Yes, total assets increased to approximately $111.8 million as of December 31, 2020.

What was the change in stockholders' equity for Southern Banc Company?

Total stockholders’ equity was approximately $12.5 million, which is 11.2% of total assets.