The Southern Banc Company, Inc. Announces Third Quarter Earnings

Rhea-AI Summary

The Southern Banc Company, holding company for The Southern Bank, reported third-quarter net income of $340,000, or $0.45 per basic share, for the quarter ending March 31, 2024, down from $462,000, or $0.61 per basic share, in the same quarter in 2023. For the nine-month period ending March 31, 2024, net income was $1,177,000, compared to $1,693,000 in the previous year. The net interest margin decreased by 1.04%, with interest income up by $234,000 and interest expense up by $254,000. Non-interest income rose by 45.8%, while non-interest expense increased by 14.7%. Total assets were $107 million as of March 31, 2024, with stockholders' equity at $14 million. The Southern Bank operates four full-service offices and one loan production office in Alabama.

Positive

• Non-interest income increased by 45.8% for the quarter and 28.5% for the nine-month period.
• Total stockholders' equity rose to $14 million, up from $12.1 million.
• Interest income increased by $234,000 during the quarter.
• Miscellaneous income increased by $126,000 for the nine-month period.

Negative

• Net income for the quarter decreased from $462,000 to $340,000 year-over-year.
• Net income for the nine-month period dropped from $1,693,000 to $1,177,000.
• Net interest margin decreased by 1.04%.
• Interest expense increased by $254,000 during the quarter.
• Total non-interest expense rose by 14.7% for the quarter and 13.3% for the nine-month period.
• Total assets decreased from $108.6 million to $107 million.

GADSDEN, Ala., May 14, 2024 (GLOBE NEWSWIRE) -- The Southern Banc Company, Inc. (OTCBB: SRNN), the holding company for The Southern Bank Company (the “Bank”), announced net income of approximately $340,000, or $0.45 per basic and $0.44 per diluted share, for the quarter ended March 31, 2024, as compared to net income of approximately $462,000, or $0.61 per basic and $0.60 per diluted share, for the quarter ended March 31, 2023. The Company announced that for the nine-month period ended March 31, 2024, the Company recorded net income of approximately $1,177,000, or $1.55 per basic and $1.53 per diluted share, as compared to net income of approximately $1,693,000, or $2.23 per basic and $2.21 per diluted share, for the nine-month period ended March 31, 2023. The Company’s fiscal year ends June 30, 2024.

Gates Little, President and Chief Executive Officer of the Company stated that the Company’s net interest margins decreased approximately $20,000, or 1.04%, during the quarter as compared to the same period in 2023. The decrease in the net interest margin before provision for credit losses for the quarter was primarily attributable to an increase in total interest income of approximately $234,000 offset by an increase in total interest expense of approximately $254,000. For the three-month periods ended March 31, 2024, and March 31, 2023, the Company did not make a provision for loan and lease losses. For the quarter ended March 31, 2024, total non-interest income increased approximately $60,000, or 45.8%, while total non-interest expense increased approximately $205,000, or 14.7%, as compared to the same three-month period in 2023. The increase in non-interest income was primarily attributable to an increase in miscellaneous income of approximately $68,000 offset in part by a decrease in customer services fees of approximately $8,000. The increase in non-interest expense was primarily attributable to increases in salaries and benefits of approximately $90,000, professional service expense of approximately $37,000, other operating expense of approximately $31,000, data processing expense of approximately $23,000, and occupancy expense of approximately $22,000.

For the nine-months ended March 31, 2024, net interest income decreased approximately $261,000, or 4.3%, as compared to the same period in 2023. During the nine-month periods ended March 31, 2024, and 2023, respectively, the Company did not make a provision for credit losses. For the nine-months ended March 31, 2024, total non-interest income increased approximately $107,000, or 28.5%, while total non-interest expense increased approximately $544,000, or 13.3%, 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 $126,000, offset in part by a decrease in customer service fees of approximately $19,000. The increase in non-interest expense was primarily attributable to increases in salaries and benefits of approximately $311,000, data processing expenses of approximately $76,000, and occupancy expense of approximately $57,000, offset in part by a decrease in professional service expense of approximately $7,000.

The Company’s total assets on March 31, 2024, were approximately $107.0 million, as compared to $108.6 million at June 30, 2023. Total stockholders’ equity was approximately $14.0 million on March 31, 2024, or 13.05% of total assets as compared to approximately $12.1 million on June 30, 2023 or approximately 11.16% 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 that conducts factoring activities. Common 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)

		March 31,				June 30,
		2024				2023
		Unaudited				Audited
ASSETS
CASH AND CASH EQUIVALENTS	$	11,142			$	8,745
SECURITIES AVAILABLE FOR SALE, at fair value		38,615				40,425
FEDERAL HOME LOAN BANK STOCK		120				98
LOANS RECEIVABLE, net of allowance for loan losses
of $983 and $1,049, respectively		53,001				55,356
PREMISES AND EQUIPMENT, net		1,079				858
ACCRUED INTEREST AND DIVIDENDS RECEIVABLE		802				782
PREPAID EXPENSES AND OTHER ASSETS		2,208				2,367
TOTAL ASSETS	$	106,967			$	108,631
LIABILITIES
DEPOSITS	$	87,122			$	90,952
FHLB ADVANCES		0				0
OTHER LIABILITIES		5,881				5,557
TOTAL LIABILITIES		93,003				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		13,942				13,938
Shares held in trust, 46,454 and 44,829 shares at cost, respectively		(772	)			(752	)
Retained earnings		13,460				12,280
Treasury stock, at cost, 648,664 shares		(8,825	)			(8,825	)
Accumulated other comprehensive (loss)		(3,856	)			(4,534	)
TOTAL STOCKHOLDERS’ EQUITY		13,964				12,122
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	106,967			$	108,631

THE SOUTHERN BANC COMPANY, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollar Amounts in Thousands, except per share data)

                        

		Three Months Ended						Nine Months Ended
		March 31,						March 31,
		2024 (Unaudited)			2023			2024 (Unaudited)		2023
INTEREST INCOME:
Interest and fees on loans	$	2,108		$	1,940		$	6,284	$	5,908
Interest and dividends on securities		182			192			551		580
Other interest income		122			46			310		99
Total interest income		2,412			2,178			7,145		6,587
INTEREST EXPENSE:
Interest on deposits		543			248			1,392		487
Interest on borrowings		0			41			0		86
Total interest expense		543			290			1,392		573
Net interest income before provision for loan losses		1,869			1,889			5,753		6,014
Provision for loan losses		0			0			0		0
Net interest income after provision for loan losses		1,869			1,889			5,753		6,014
NON-INTEREST INCOME:
Fees and other non-interest income		32			40			101		120
Net gain on sale of securities		0			0			0		0
Miscellaneous income		158			90			381		255
Total non-interest income		190			130			482		375
NON-INTEREST EXPENSE:
Salaries and employee benefits		950			859			2,772		2,461
Office building and equipment expenses		93			71			264		207
Professional Services Expense		169			132			421		428
Data Processing Expense		195			172			580		504
Net loss on sale of securities		0			0			0		0
Other operating expense		192			161			606		499
Total non-interest expense		1,599			1,395			4,643		4,099
Income before income taxes		460			624			1,592		2,290
PROVISION FOR INCOME TAXES		120			162			415		597
Net Income	$	340		$	462		$	1,177	$	1,693
EARNINGS PER SHARE:
Basic	$	0.45		$	0.61		$	1.55	$	2.23
Diluted	$	0.44		$	0.60		$	1.53	$	2.21
DIVIDENDS DECLARED PER SHARE	$	---		$	---		$	---	$	---
AVERAGE SHARES OUTSTANDING:
Basic		759,650			760,874			760,729		757,852
Diluted		766,093			767,533			767,791		765,034

Contact: Gates Little
(256) 543-3860

FAQ

What is the net income of Southern Banc Company (SRNN) for Q3 2024?

Southern Banc Company reported a net income of $340,000 for Q3 2024.

How did Southern Banc Company's net income for Q3 2024 compare to Q3 2023?

Net income for Q3 2024 was $340,000, down from $462,000 in Q3 2023.

What was the net income of Southern Banc Company for the nine-month period ending March 31, 2024?

Net income for the nine-month period was $1,177,000.

How did Southern Banc Company's net interest margin change in Q3 2024?

The net interest margin decreased by 1.04% in Q3 2024.

What were Southern Banc Company's total assets as of March 31, 2024?

Total assets were $107 million as of March 31, 2024.

Did Southern Banc Company (SRNN) see any change in stockholders' equity?

Yes, stockholders' equity increased to $14 million from $12.1 million.

What caused the increase in non-interest income for Southern Banc Company in Q3 2024?

The increase in non-interest income was mainly due to a rise in miscellaneous income by $68,000.

Why did Southern Banc Company's total non-interest expense increase in Q3 2024?

The increase in non-interest expense was primarily due to rises in salaries and benefits, professional service expenses, and other operating costs.