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The Southern Banc Company, Inc. Announces First Quarter Earnings

GADSDEN, Ala., Nov. 15, 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 $619,000, or $0.82 per basic share and $0.81 per diluted share, for the quarter ended September 30, 2022, as compared to a net income of approximately $243,000, or $0.32 per basic and diluted share, for the quarter ended September 30, 2021.

Gates Little, President and Chief Executive Officer of the Company stated that the Company’s net interest margins increased approximately by $783,000 or 58.71% during the quarter as compared to the same period in 2021. For the three-months ended September 30, 2022, total interest income increased by approximately $760,000 or 51.91% as compared to the same period in 2021. Total interest expense decreased by approximately $23,000 or (17.47%) for the three-months ended September 30, 2022, as compared to the same period in 2021. There were no provisions for loan and lease losses during the quarters ended September 30, 2022 and 2021. For the quarter ended September 30, 2022, total non-interest income increased approximately by $5,700 or 5.15%, while total non-interest expense increased approximately by $280,000 or 25.14% as compared to the same three-month period in 2021. The increase in non-interest income was primarily attributable to increases in miscellaneous income of approximately $3,300 or 4.34% and customer service fees of approximately $2,400 or 6.93%. The increase in non-interest expense was primarily attributable to increases in salaries and benefits of approximately $173,000 or 27.81% and professional service expenses of approximately $75,000 or 69.48%.

President Little continued, “the Company’s interest margins increased due to an increase in interest and fees on loans primarily from the activities of the Bank’s Commercial Finance Division and a decrease in interest expense on deposits.”

The Company’s total assets at September 30, 2022 were $111.4 million, as compared to $115.3 million at June 30, 2022. Total stockholders’ equity was approximately $9.7 million at September 30, 2022, or 8.71% of total assets, as compared to approximately $10.6 million at June 30, 2022, or approximately 9.20% of total assets.

ADVERTISEMENT

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.

Contact: Gates Little
(256) 543-3860

(Selected financial data on following pages)

THE SOUTHERN BANC COMPANY, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollar Amounts in Thousands)

 

 

September 30,

 

 

June 30,

 

 

2022

 

 

2022

 

 

Unaudited

 

 

Audited

ASSETS

 

 

 

 

 

CASH AND CASH EQUIVALENTS

$

8,480

 

 

$

10,039

 

SECURITIES AVAILABLE FOR SALE, at fair value

 

42,350

 

 

 

45,345

 

FEDERAL HOME LOAN BANK STOCK

 

169

 

 

 

141

 

LOANS RECEIVABLE, net of allowance for loan losses

 

 

 

 

 

of $1,057

 

57,042

 

 

 

56,894

 

PREMISES AND EQUIPMENT, net

 

762

 

 

 

778

 

ACCRUED INTEREST AND DIVIDENDS RECEIVABLE

 

269

 

 

 

297

 

PREPAID EXPENSES AND OTHER ASSETS

 

2,296

 

 

 

1,787

 

 

 

 

 

 

 

TOTAL ASSETS

$

111,368

 

 

$

115,281

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

DEPOSITS

$

93,680

 

 

$

97,112

 

FHLB ADVANCES

 

3,000

 

 

 

2,000

 

OTHER LIABILITIES

 

4,988

 

 

 

5,568

 

TOTAL LIABILITIES

 

101,668

 

 

 

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

 

15

 

 

 

15

 

Additional paid-in capital

 

13,933

 

 

 

13,931

 

Shares held in trust, 49,712 shares at cost

 

(793

)

 

 

(793

)

Retained earnings

 

10,425

 

 

 

9,806

 

Treasury stock, at cost, 648,664 shares

 

(8,825

)

 

 

(8,825

)

Accumulated other comprehensive (loss) income

 

(5,055

)

 

 

(3,533

)

TOTAL STOCKHOLDERS’ EQUITY

 

9,700

 

 

 

10,601

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

111,368

 

 

$

115,281

 


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

 

 

Three Months Ended

 

 

September 30,

 

 

2022

 

 

2021

 

 

(Unaudited)

 

 

(Unaudited)

INTEREST INCOME:

 

 

 

 

 

Interest and fees on loans

$

2,007

 

$

1,307

Interest and dividends on securities

 

193

 

 

156

Other interest income

 

25

 

 

2

Total interest income

 

2,225

 

 

1,465

 

 

 

 

 

 

INTEREST EXPENSE:

 

 

 

 

 

Interest on deposits

 

107

 

 

131

Interest on borrowings

 

1

 

 

-

Total interest expense

 

108

 

 

131

Net interest income before provision

 

2,117

 

 

1,334

for loan losses

 

 

 

 

 

Provision for loan losses

 

-

 

 

-

Net interest income after provision

 

2,117

 

 

1,334

for loan losses

 

 

 

 

 

 

 

 

 

 

 

NON-INTEREST INCOME:

 

 

 

 

 

Fees and other non-interest income

 

37

 

 

35

Net gain on sale of securities

 

-

 

 

-

Miscellaneous income

 

79

 

 

76

Total non-interest income

 

116

 

 

111

 

 

 

 

 

 

NON-INTEREST EXPENSE:

 

 

 

 

 

Salaries and employee benefits

 

793

 

 

621

Office building and equipment expenses

 

69

 

 

66

Professional Services Expense

 

182

 

 

107

Data Processing Expense

 

166

 

 

169

Other operating expense

 

186

 

 

153

Total non-interest expense

 

1,396

 

 

1,116

Income before income tax expense

 

837

 

 

329

INCOME TAX EXPENSE

 

218

 

 

86

Net Income

$

619

 

$

243

 

 

 

 

 

 

INCOME PER SHARE:

 

 

 

 

 

Basic

$

0.82

 

$

0.32

Diluted

 

0.81

 

 

0.32

DIVIDENDS DECLARED PER SHARE

$

-

 

$

-

 

 

 

 

 

 

AVERAGE SHARES OUTSTANDING:

 

 

 

 

 

Basic

 

756,374

 

 

757,563

Diluted

 

763,542

 

 

758,337