The Southern Banc Company, Inc. Announces Second Quarter Earnings

Rhea-AI Summary

The Southern Banc Company, Inc. (OTCBB: SRNN) reported a net income of approximately $451,000 or $0.59 per share for Q4 2021, a significant increase from $140,000 or $0.18 per share in Q4 2020. For the six months ended December 31, 2021, net income was about $694,000 or $0.91 per share, up from $169,000 or $0.22 per share in the same period last year. Net interest income before loan losses reached $1.66 million, up 46.24% year-over-year, driven by increased interest income and reduced expenses. Total assets stood at $112.1 million.

Positive

• Net income rose to $451,000, a 221% increase year-over-year.
• Net interest income before provision for loan losses increased by 46.24%.
• Total non-interest income grew by approximately $16,000 or 16.58%.
• Total stockholders’ equity improved to 11.34% of total assets.

Negative

• Total assets slightly declined from $112.4 million at June 30, 2021.

GADSDEN, Ala., Feb. 11, 2022 (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 $451,000 or $0.59 per basic and diluted share, for the quarter ended December 31, 2021, as compared to a net income of approximately $140,000 or $0.18 per basic and diluted share, for the quarter ended December 31, 2020. For the six months ended December 31, 2021, the Company recorded net income of approximately $694,000 or $0.91 per basic and diluted share, as compared to net income of approximately $169,000 or $0.22 per basic and diluted share for the six months ended December 31, 2020.

Gates Little, President and Chief Executive Officer of the Company stated that the Company’s net interest margins increased approximately $526,000 during the quarter as compared to the same period in 2020. Net interest income before provision for loan losses for the quarter ended December 31, 2021 was approximately $1.66 million as compared to approximately $1.14 million for the quarter ended December 31, 2020, an increase of approximately $526,000, or 46.24%. The increase in the net interest margin before provision for loan losses for the quarter was primarily attributable to an increase in total interest income of approximately $424,000, and a decrease in total interest expense of approximately $102,000. For the three months ended December 31, 2021 no additional provision for loan and lease losses was required as compared to a provision of approximately $41,000 for the same period in 2020. Net interest income after provision for loan and lease losses increased approximately $568,000 or 51.73% for the quarter ended December 31, 2021, as compared to the same quarter in 2020. For the quarter ended December 31, 2021, total non-interest income increased approximately $16,000 or 16.58% while total non-interest expense increased approximately $165,000 or 16.42% as compared to the same three-month period in 2020. The increase in non-interest income was primarily attributable to increases in customer fees of approximately $9,000 or 25.66% and an increase in miscellaneous income of approximately $7,000 or 11.44%. The increase in non-interest expense was primarily attributable to increases in salaries and benefits of approximately $131,000, professional service expense of approximately $20,000, and data processing expenses of approximately $22,000.

The Company’s total assets at December 31, 2021 were $112.1 million, as compared to $112.4 million at June 30, 2021. Total stockholders’ equity was approximately $12.7 million at December 31, 2021 or 11.34% of total assets as compared to approximately $12.4 million at June 30, 2021 or 11.08% 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. 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)

		December 31,				June 30,
		2021				2021
		(Unaudited)				(Audited)
ASSETS
CASH AND CASH EQUIVALENTS	$	7,913			$	11,417
SECURITIES AVAILABLE FOR SALE, at fair value		45,950				44,608
FEDERAL HOME LOAN BANK STOCK		141				141
LOANS RECEIVABLE, net of allowance for loan losses of $895 and $827, respectively		55,961				54,127
PREMISES AND EQUIPMENT, net		717				727
ACCRUED INTEREST AND DIVIDENDS RECEIVABLE		280				276
PREPAID EXPENSES AND OTHER ASSETS		1,107				1,128
TOTAL ASSETS	$	112,069			$	112,425
LIABILITIES
DEPOSITS	$	94,447			$	93,839
FHLB ADVANCES		0				430
OTHER LIABILITIES		4,911				5,701
TOTAL LIABILITIES		99,358				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		13,926				13,922
Shares held in trust, 49,712 and 45,243 shares at cost, Respectively		(793	)			(761	)
Retained earnings		8,764				8,070
Treasury stock, at cost, 648,664 shares		(8,825	)			(8,825	)
Accumulated other comprehensive income (loss)		(376	)			35
TOTAL STOCKHOLDERS’ EQUITY		12,711				12,454
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	112,069			$	112,425

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,
		2021 (Unaudited)			2020			2021 (Unaudited)		2020
INTEREST INCOME:
Interest and fees on loans	$	1,627		$	1,212		$	2,934	$	2,261
Interest and dividends on securities		155			146			310		295
Other interest income		3			2			5		5
Total interest income		1,785			1,360			3,249		2,561
INTEREST EXPENSE:
Interest on deposits		120			222			250		480
Interest on borrowings		0			0			0		0
Total interest expense		120			222			250		480
Net interest income before provision for loan losses		1,665			1,138			2,999		2,081
Provision for loan losses		0			41			0		41
Net interest income after provision for loan losses		1,665			1,097			2,999		2,040
NON-INTEREST INCOME:
Fees and other non-interest income		44			35			79		63
Miscellaneous income		69			62			145		92
Total non-interest income		113			97			224		155
NON-INTEREST EXPENSE:
Salaries and employee benefits		643			512			1,264		1,058
Office building and equipment expenses		64			61			130		120
Professional Services Expense		122			102			229		190
Data Processing Expense		191			169			360		314
Other operating expense		148			159			301		281
Total non-interest expense		1,168			1,003			2,284		1,963
Income before income taxes		610			191			939		232
PROVISION FOR INCOME TAXES		159			51			245		63
Net Income	$	451		$	140		$	694	$	169
EARNINGS PER SHARE:
Basic	$	0.60		$	0.18		$	0.92	$	0.22
Diluted	$	0.60		$	0.18		$	0.92	$	0.22
DIVIDENDS DECLARED PER SHARE	$	---		$	---		$	---	$	---
AVERAGE SHARES OUTSTANDING:
Basic		757,214			764,146			757,389		764,146
Diluted		757,214			764,146			757,793		764,146

Contact: Gates Little
(256) 543-3860

FAQ

What was the net income for Southern Banc Company, Inc. in Q4 2021?

The net income for Southern Banc Company, Inc. in Q4 2021 was approximately $451,000, or $0.59 per share.

How did Southern Banc's net interest income change from 2020 to 2021?

Southern Banc's net interest income before provision for loan losses increased by approximately 46.24%, reaching about $1.66 million for the quarter ended December 31, 2021.

What was the total stockholders’ equity for Southern Banc at December 31, 2021?

At December 31, 2021, Southern Banc's total stockholders’ equity was approximately $12.7 million, which was 11.34% of total assets.

What were the total assets of Southern Banc Company, Inc. at the end of 2021?

The total assets of Southern Banc Company, Inc. at December 31, 2021 were $112.1 million.

What caused the increase in non-interest income for Southern Banc in Q4 2021?

The increase in non-interest income for Southern Banc in Q4 2021 was primarily due to higher customer fees and miscellaneous income.