The Southern Banc Company, Inc. Announces Third Quarter Earnings

GADSDEN, Ala., May 12, 2023 (GLOBE NEWSWIRE) -- The Southern Banc Company, Inc. (OTCBB: SRNN), the holding company for The Southern Bank Company (the “Bank”), announced net income of approximately $462,000, or $0.61 per basic and $0.60 per diluted share, for the quarter ended March 31, 2023, as compared to net income of approximately $472,000, or $0.62 per basic and diluted share, for the quarter ended March 31, 2022. The Company announced that for the nine-month period ended March 31, 2023, the Company recorded net income of approximately $1,693,000, as compared to net income of approximately $1,165,000 for the nine-month period ended March 31, 2022.

Gates Little, President and Chief Executive Officer of the Company stated that the Company’s net interest margins increased approximately $151,000, or 8.72%, during the quarter as compared to the same period in 2022. The increase 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 $332,000 offset by an increase in total interest expense of approximately $180,000. For the three month periods ended March 31, 2023 and March 31, 2022 the Company did not make a provision for loan and lease losses. For the quarter ended March 31, 2023, total non-interest income increased approximately $18,000, or 15.8%, while total non-interest expense increased approximately $183,000, or 15.1%, as compared to the same three-month period in 2022. The increase in non-interest income was primarily attributable to an increase in miscellaneous income of approximately $23,000 offset in part by a decrease in customer services fees of approximately $5,000. The increase in non-interest expense was primarily attributable to increases in salaries and benefits of approximately $168,000, professional service expense of approximately $28,000, and occupancy and other operating expenses of approximately $6,000 offset in part by a decrease in data processing expense of approximately $19,000.

For the nine-months ended March 31, 2023, net interest income increased approximately $1,278,000, or 27.0%. During the nine-month periods ended March 31, 2023 and 2022, respectively, the Company did not make a provision for credit losses. For the nine-months ended March 31, 2023, total non-interest income increased approximately $38,000, or 11.3%, while total non-interest expense increased approximately $603,000, or 17.3%, as compared to the same period in 2022. The increase in non-interest income was primarily attributable to an increase in miscellaneous income of approximately $42,000, or 19.6%, offset in part by a decrease in customer service fees of approximately $4,000, or 3.0%. The increase in non-interest expense was primarily attributable to increases in salaries and benefits of approximately $506,000, professional services expense of approximately $94,000 and occupancy and other operating expenses of approximately $50,000, offset in part by a decrease in data processing expense of approximately $47,000. President Little went on to say that the increase in interest income was due to growth in the Bank’s factoring of business receivables and other assets, while the increase in interest expense was primarily attributable to the increase in interest rates paid on deposits in a rising rate environment.

The Company’s total assets at March 31, 2023 were approximately $110.1 million, as compared to $115.3 million at June 30, 2022. Total stockholders’ equity was approximately $11.7 million at March 31, 2023 or 10.6% of total assets as compared to approximately $10.6 million at June 30, 2022 or approximately 9.2% 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,
		2023				2022
		Unaudited				Audited
ASSETS
CASH AND CASH EQUIVALENTS	$	9,484			$	10,039
SECURITIES AVAILABLE FOR SALE, at fair value		41,466				45,345
FEDERAL HOME LOAN BANK STOCK		226				141
LOANS RECEIVABLE, net of allowance for loan losses
of $1,055 and $1,057, respectively		55,168				56,894
PREMISES AND EQUIPMENT, net		737				778
ACCRUED INTEREST AND DIVIDENDS RECEIVABLE		770				297
PREPAID EXPENSES AND OTHER ASSETS		2,230				1,787
TOTAL ASSETS	$	110,081			$	115,281
LIABILITIES
DEPOSITS	$	89,193			$	97,112
FHLB ADVANCES		4,000				2,000
OTHER LIABILITIES		5,230				5,568
TOTAL LIABILITIES		98,423				104,680
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, 806,086 shares outstanding		15				15
Additional paid-in capital		13,937				13,931
Shares held in trust, 44,829 and 49,712 shares at cost, respectively		(752	)			(793	)
Retained earnings		11,499				9,806
Treasury stock, at cost, 648,664 shares		(8,825	)			(8,825	)
Accumulated other comprehensive (loss)		(4,216	)			(3,533	)
TOTAL STOCKHOLDERS’ EQUITY		11,658				10,601
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	110,081			$	115,281

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,
		2023 (Unaudited)		2022		2023 (Unaudited)		2022
INTEREST INCOME:
Interest and fees on loans	$	1,940	$	1,666	$	5,908	$	4,600
Interest and dividends on securities		192		176		580		486
Other interest income		46		4		99		9
Total interest income		2,178		1,846		6,587		5,095
INTEREST EXPENSE:
Interest on deposits		248		109		487		359
Interest on borrowings		41		0		86		0
Total interest expense		290		109		573		359
Net interest income before provision for loan losses		1,889		1,737		6,014		4,736
Provision for loan losses		0		0		0		0
Net interest income after provision for loan losses		1,889		1,737		6,014		4,736
NON-INTEREST INCOME:
Fees and other non-interest income		40		45		120		124
Net gain on sale of securities		0		0		0		0
Miscellaneous income		90		68		255		213
Total non-interest income		130		113		375		337
NON-INTEREST EXPENSE:
Salaries and employee benefits		859		691		2,461		1,955
Office building and equipment expenses		71		68		207		198
Professional Services Expense		132		105		428		334
Data Processing Expense		172		191		504		551
Net loss on sale of securities		0		0		0		0
Other operating expense		161		157		499		458
Total non-interest expense		1,395		1,212		4,099		3,496
Income before income taxes		624		638		2,290		1,577
PROVISION FOR INCOME TAXES		162		166		597		412
Net Income	$	462	$	472	$	1,693	$	1,165
EARNINGS PER SHARE:
Basic	$	0.61	$	0.62	$	2.23	$	1.54
Diluted	$	0.60	$	0.62	$	2.21	$	1.54
DIVIDENDS DECLARED PER SHARE	$	---	$	---	$	---	$	---
AVERAGE SHARES OUTSTANDING:
Basic		760,874		756,374		757,852		757,055
Diluted		767,533		758,942		765,034		758,181

Contact: Gates Little
(256) 543-3860