The Southern Banc Company, Inc. Announces Second Quarter Earnings

GADSDEN, Ala., Feb. 15, 2024 (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 net income of approximately $471,000, or $0.62 per basic share and $0.61 per diluted share, for the three months ended December 31, 2023, as compared to net income of approximately $612,000, or $0.81 per basic share and $0.80 per diluted share, for the three months ended December 31, 2022. For the six months ended December 31, 2023, the Company recorded net income of approximately $837,000, or $1.10 per basic share and $1.09 per diluted share, as compared to net income of approximately $1,231,000, or $1.63 per basic share and $1.61 per diluted share, for the six months ended December 31, 2022. 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 income before provision for loan losses totaled approximately $2.013 million during the three months ended December 31, 2023, as compared to approximately $2.008 million in the same period in 2022, an increase of approximately $5,000, or 0.21%. The increase in the net interest income before provision for loan losses for the three months ended December 31, 2023 was primarily attributable to an increase in total interest income of approximately $289,000, offset by an increase in total interest expense of approximately $284,000. In the three months ended in both December 31, 2023, and 2022, the Bank made no provision for loan losses. For the three months ended December 31, 2023, total non-interest income increased approximately $18,000, or 14.4%, while total non-interest expense increased approximately $214,000, or 16.4%, 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 $29,000. The increase in non-interest expense was primarily attributable to increases in salaries and benefits of approximately $108,000, office building expense of approximately $17,000, other operating expense of approximately $44,000, professional service expense of approximately $11,000, and data processing expense of approximately $34,000.

For the six months ended December 31, 2023, the Company’s net interest income before provision for loan losses totaled approximately $3.884 million, a decrease of approximately $241,000, or 5.85%, when compared to the six months ended December 31, 2022. The decrease in net interest income before provision for loan losses was primarily attributable to an increase in total interest income of approximately $324,000 offset by an increase in total interest expense of approximately $565,000. There was no provision for loan losses in the six months ended December 31, 2023 or for the same period in 2022. For the six months ended December 31, 2023, total non-interest income increased approximately $47,000, or 19.27%, compared to the same period in 2022, while non-interest expense increased approximately $339,000, or 12.53%. The increase in non-interest income was primarily attributable to an increase in miscellaneous income of approximately $59,000. The increase in non-interest expense was primarily attributable to increases in salaries and benefits of approximately $221,000, office and equipment of approximately $34,000, data processing expense of approximately $52,000, and other operating expense of approximately $75,000.

The Company’s total assets at December 31, 2023 were approximately $109.7 million, as compared to approximately $108.6 million at June 30, 2023. Total stockholders’ equity was approximately $13.7 million at December 31, 2023, or 12.5% of total assets, as compared to approximately $12.1 million at June 30, 2023, or 11.2% 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. 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,
2023
Unaudited
    June 30,
2023
Audited
 
ASSETS                
CASH AND CASH EQUIVALENTS $ 11,344     $ 8,745    
SECURITIES AVAILABLE FOR SALE, at fair value   40,222       40,425    
FEDERAL HOME LOAN BANK STOCK   120       98    
LOANS RECEIVABLE, net of allowance for loan losses   of $971 and $1,049   53,929       55,356    
PREMISES AND EQUIPMENT, net   1,112       858    
ACCRUED INTEREST AND DIVIDENDS RECEIVABLE   822       782    
PREPAID EXPENSES AND OTHER ASSETS   2,142       2,367                    
TOTAL ASSETS $ 109,691     $ 108,631                    
LIABILITIES                
DEPOSITS $ 90,431     $ 90,952    
FHLB ADVANCES            
OTHER LIABILITIES   5,558       5,557    
TOTAL LIABILITIES   95,989       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   13,940       13,938    Shares held in trust, 44,829 shares at cost   (752 )     (752 )  Retained earnings   13,120       12,280    Treasury stock, at cost, 648,664 shares   (8,825 )     (8,825 )  Accumulated other comprehensive (loss) income   (3,796 )     (4,534 )  
TOTAL STOCKHOLDERS’ EQUITY   13,702       12,122    
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 109,691     $ 108,631    

THE SOUTHERN BANC COMPANY, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollar Amounts in Thousands, except per share data)   Three Months Ended
December 31,
    Six Months Ended
December 31,
    2023
(Unaudited)     2022     2023
(Unaudited)   2022
 
INTEREST INCOME:
                                             Interest and fees on loans $ 2,210   $ 1,960   $ 4,176 $ 3,967    Interest and dividends on securities   183     195     369   388    Other interest income   80     29     188   54                                   Total interest income   2,473     2,184     4,733   4,409                        
INTEREST EXPENSE:                        Interest on deposits   460     132     849   239    Interest on borrowings       44       45               Total interest expense   460     176     849   284               Net interest income before provision             for loan losses   2,013     2,008     3,884   4,125    Provision for loan losses                           Net interest income after provision                for loan losses   2,013     2,008     3,884  
4,125                        
NON-INTEREST INCOME:                        Fees and other non-interest income   32     43     68   80    Miscellaneous income   114     85     223   164    Total non-interest income   146     128     291   244                        
NON-INTEREST EXPENSE:                        Salaries and employee benefits   916     808     1,823   1,602    Office building and equipment expenses   84     67     170   136    Professional Services Expense   125     114     252   295    Data Processing Expense   200     166     384   332    Other operating expense   197     153     414   339                           Total non-interest expense   1,522     1,308     3,043   2,704                          Income before income taxes   637     828     1,132   1,665                        
PROVISION FOR INCOME TAXES   166     216     295   434                                     Net Income $ 471   $ 612   $ 837 $ 1,231                        
EARNINGS PER SHARE:                                   Basic $ 0.62   $ 0.81   $ 1.10 $ 1.63               Diluted $ 0.61   $ 0.80   $ 1.09 $ 1.61                        
DIVIDENDS DECLARED PER SHARE $ ---   $ ---   $ --- $ ---                        
AVERAGE SHARES OUTSTANDING:                                  Basic   761,257     756,374     761,257   756,374              Diluted   768,395     764,094     768,628   763,818  

Contact: Gates Little
(256) 543-3860
February 15, 2024