The Southern Banc Company, Inc. Announces First Quarter Earnings

GADSDEN, Ala., Nov. 10, 2023 (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 $367,000, or $0.48 per basic and diluted share, for the quarter ended September 30, 2023, as compared to 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.Gates Little, President and Chief Executive Officer of the Company stated that the Company’s net interest margins decreased approximately $246,000 or (11.60%) during the quarter as compared to the same period in 2022. For the three-months ended September 30, 2023, total interest income increased by approximately $35,000 or 1.60% as compared to the same period in 2022. Total interest expense increased approximately $281,000 or 260.96% for the three-months ended September 30, 2023, as compared to the same period in 2022. There were no provisions for loan and lease losses during the quarters ended September 30, 2023 and 2022. For the quarter ended September 30, 2023, total non-interest income increased approximately by $29,000 or 24.58%, while total non-interest expense increased approximately by $124,000 or 8.93% as compared to the same three-month period in 2022. The increase in non-interest income was primarily attributable to increases in miscellaneous income of approximately $30,000 or 36.92% offset in part by a decrease in customer service fees of approximately $1,000 or (2.07%). The increase in non-interest expense was primarily attributable to increases in salaries and benefits of approximately $113,000 or 14.27%; other operating expenses of approximately $31,000 or 16.66%; occupancy expenses of approximately $17,000 or 24.45% and data processing expenses of approximately $18,000 or 11.32%, offset in part by a decrease in professional service expenses of approximately $55,000 or (30.34%).

The Company’s total assets at September 30, 2023 were 105.4 million, as compared to $108.6 million at June 30, 2023. Total stockholders’ equity was approximately $12.0 million at September 30, 2023, or 11.36% of total assets, as compared to approximately $12.1 million at June 30, 2023, or approximately 11.16% of total assets.

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.

THE SOUTHERN BANC COMPANY, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollar Amounts in Thousands)             September 30,     June 30,   2023      2023    Unaudited     Audited
ASSETS          
CASH AND CASH EQUIVALENTS $ 7,527     $ 8,745  
SECURITIES AVAILABLE FOR SALE, at fair value   39,075       40,425  
FEDERAL HOME LOAN BANK STOCK   120       98  
LOANS RECEIVABLE, net of allowance for loan losses          
of $1,045 and $1,049   54,214       55,356  
PREMISES AND EQUIPMENT, net   1,122       858  
ACCRUED INTEREST AND DIVIDENDS RECEIVABLE   758       782  
PREPAID EXPENSES AND OTHER ASSETS   2,536       2,367            
TOTAL ASSETS $ 105,352     $ 108,631            
LIABILITIES          
DEPOSITS $ 87,727     $ 90,952  
FHLB ADVANCES          
OTHER LIABILITIES   5,657       5,557  
TOTAL LIABILITIES   93,384       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   13,939       13,938  
Shares held in trust, 44,829 at cost   (752 )     (752 )
Retained earnings   12,649       12,280  
Treasury stock, at cost, 648,664 shares   (8,825 )     (8,825 )
Accumulated other comprehensive (loss) income   (5,058 )     (4,534 )
TOTAL STOCKHOLDERS’ EQUITY   11,968       12,122  
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 105,352     $ 108,631  
        

THE SOUTHERN BANC COMPANY, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollar Amounts in Thousands, except per share data)       Three Months Ended   September 30,   2023     2022   (Unaudited)     (Unaudited)
INTEREST INCOME:          
Interest and fees on loans $ 1,966   $ 2,007
Interest and dividends on securities   185     193
Other interest income   108     25
Total interest income   2,260     2,225          
INTEREST EXPENSE:          
Interest on deposits   389     107
Interest on borrowings       1
Total interest expense   389     108
Net interest income before provision   1,871     2,117
for loan losses          
Provision for loan losses   -     -
Net interest income after provision   1,871     2,117
for loan losses                    
NON-INTEREST INCOME:          
Fees and other non-interest income   36     37
Net gain on sale of securities   -     -
Miscellaneous income   109     79
Total non-interest income   145     116          
NON-INTEREST EXPENSE:          
Salaries and employee benefits   906     793
Office building and equipment expenses   86     69
Professional Services Expense   127     182
Data Processing Expense   184     166
Other operating expense   217     186
Total non-interest expense   1,521     1,396
Income before income tax expense   496     837
INCOME TAX EXPENSE   129     218
Net Income $ 367   $ 619          
INCOME PER SHARE:          
Basic $ 0.48   $ 0.82
Diluted   0.48     0.81
DIVIDENDS DECLARED PER SHARE $ -   $ -          
AVERAGE SHARES OUTSTANDING:          
Basic   761,257     756,374
Diluted   768,861     763,542

Contact: Gates Little
(256) 543-3860