The Southern Banc Company, Inc. Announces Preliminary

GADSDEN, Ala., Aug. 13, 2021 (Globalrelease Wire) — Gates Little, President and Chief Executive Officer of The Southern Banc Company, Inc. (OTCBB: SRNN), the holding company for The Southern Bank Company, announced preliminary unaudited results (subject to audit adjustments following the fiscal year-end audit) of operations for the fourth quarter and year ended June 30, 2021:

  • For the three months ended June 30, 2021, the Company reported net income of approximately $171,000, or $0.22 per basic and diluted share as compared to net income of approximately $40,000, or $0.05 per basic and diluted share, for the three months ended June 30, 2020.
     
  • For the fiscal year ended June 30, 2021, the Company recorded net income of approximately $478,000, or $0.63 per basic and diluted share, as compared to net income of approximately $314,000, or $0.41 per basic and diluted share, for the fiscal year ended June 30, 2020.
     
  • For the three months ended June 30, 2021, net interest income before provision for loan losses increased approximately $314,000, or 35.26% as compared to the same period in 2020. The increase in net interest income for the three-month period was primarily attributable to an increase in interest and fees on loans in the amount of approximately $151,000 or 14.64%, an increase in interest and dividends on securities of approximately $34,000 or 27.18% and a decrease in interest on deposits of approximately $130,000 or (48.27%). The increase in interest and fees on loans was primarily attributable to an increase in factoring activity, and an increase in loans and leases outstanding. The decrease in other interest income was primarily attributable to interest income earned on overnight funds in a falling rate environment. For the three months ended June 30, 2021, interest paid on deposits and borrowings decreased approximately $130,000 as compared to the same period in 2020. Total deposits during the quarter increased approximately $5 million. The COVID pandemic continues to have an impact on the bank’s lending and deposit activities.
     
  • For the fiscal year ended June 30, 2021, total interest income decreased approximately $152,000 or (2.83%) while total interest expenses decreased approximately $334,000, or (29.85%). The decrease in interest income for the fiscal year ended June 30, 2021 was primarily attributable to a decrease in interest and fees on loans and a decrease in other interest income totaling approximately $316,000, offset in part by an increase in interest and dividends on securities of approximately $164,000. For the fiscal year ended June 30, 2021, interest on deposits decreased approximately $330,000, or (29.58%). For the fiscal year ended June 30, 2021 provision for loan losses decreased approximately $3,000, or (7.39%) from approximately $44,000 for fiscal year 2020 to $41,000 for fiscal year 2021.
     
  • For the fiscal year ended June 30, 2021, non-interest income decreased approximately $67,000, or (17.05%) from $395,000 for fiscal year 2020 to $328,000 for fiscal year 2021. The decrease in non-interest income was primarily attributable to a decrease in net gain on the sale of securities available for sale of approximately $91,000 or (100.00%), an increase in miscellaneous income of approximately $35,000 or 20.71% and a decrease in customer service fees of approximately $11,000 or (7.97%).
     
  • For the three months ended June 30, 2021 total non-interest expenses increased approximately $12,000, or 1.14%, as compared to the same three-month period in 2020. The increase in non-interest expense for the three-month period was primarily attributable to increases in data processing expenses of approximately $19,000, or 12.85%, other operating expenses of approximately $42,000 or 36.52%, offset in part by decreases in professional service expenses of approximately $26,000 or (19.40%) and a decrease in salaries and benefits of approximately $17,000, or (2.87%).
     
  • For the fiscal year ended June 30, 2021, total non-interest expenses decreased approximately $99,000, or (2.38%), as compared to fiscal year 2020. The decrease in total non-interest expense for the fiscal year was primarily attributable to decreases in professional services expenses of approximately $52,000, or (11.42%), salary and benefit expenses of approximately $150,000, or (6.36%), offset in part by increases in data processing expenses of approximately $34,000 or 5.58% and other operating expenses of approximately $80,000 or 15.73%.

The Company’s total assets at June 30, 2021 were approximately $112.4 million as compared to $103.3 million at June 30, 2020. Total stockholders’ equity was approximately $12.5 million, or 11.10% of assets and $12.3 million, or 12.00% of assets at June 30, 2021 and 2020, respectively.

The unaudited financial information for the three and twelve months ended June 30, 2021 has been prepared on the same basis as our audited financial information and includes, in the opinion of management, all adjustments necessary to present the data for such periods. The Company expects to release its final year end results and its related audited financial statements in October 2021, following completion of the year-end audit. Historical results are not necessarily indicative of future results. 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. is listed on the OTC Bulletin Board 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.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollar Amounts in Thousands)

    June 30,     June 30,
    2021     2020
    (Unaudited)      
           
ASSETS          
CASH AND CASH EQUIVALENTS $ 11,417     $ 25,766  
SECURITIES AVAILABLE FOR SALE, at fair value   44,608       25,874  
FEDERAL HOME LOAN BANK (FHLB) STOCK   141       174  
           
LOANS AND LEASES RECEIVABLE,
 net of allowance for loan losses of $827 and $895, respectively
  54,127       49,105  
PREMISES AND EQUIPMENT, net   727       736  
ACCRUED INTEREST AND DIVIDENDS RECEIVABLE   276       224  
PREPAID EXPENSES AND OTHER ASSETS   1,130       1,423  
           
TOTAL ASSETS $ 112,426     $ 103,302  
           
LIABILITIES          
DEPOSITS $ 93,839     $ 88,766  
FHLB ADVANCES AND OTHER BORROWED MONEY   430       0  
OTHER LIABILITIES   5,702       2,188  
           
TOTAL LIABILITIES   99,971       90,954  
           
STOCKHOLDERS’ EQUITY:
 Preferred stock, par value $.01 per share
 500,000 shares authorized, shares issued
 and outstanding—none
  0       0  
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   13,922       13,907  
Shares held in trust,
 45,243 shares at cost
  (761 )     (754 )
Retained earnings   8,070       7,592  
Treasury stock, at cost,
 648,664 shares
  (8,825 )     (8,825 )
Accumulated other comprehensive income / (loss)   34       414  
               
TOTAL STOCKHOLDERS’ EQUITY   12,455       12,348  
               
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 112,426     $ 103,302  
           

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

    Three Months Ended   Year Ended
    June 30,   June 30,
                         
    2021
(Unaudited)
  2020   2021
(Unaudited)
  2020
                         
INTEREST INCOME:                        
Interest and fees on loans $ 1,180   $ 1,029   $ 4,614   $ 4,716  
Interest and dividends on securities   161     127     602     437  
Other interest income   2     3     9     224  
                         
Total interest income   1,343     1,159     5,225     5,377  
                         
INTEREST EXPENSE:                        
Interest on deposits   139     269     785     1,114  
Interest on borrowings   0     0     0     4  
Total interest expense   139     269     785     1,118  
Net interest income before provision for loan losses   1,204     890     4,440     4,259  
Provision for loan losses   0     0     41     44  
Net interest income after provision for loan losses   1,204     890     4,399     4,215  
                         
NON-INTEREST INCOME:                        
Fees and other non-interest income   31     26     125     136  
Gain / (loss) on sale of securities, net   0     90     0     91  
Miscellaneous income   68     111     203     168  
Total non-interest income   99     227     328     395  
                         
NON-INTEREST EXPENSE:                        
Salaries and employee benefits   580     597     2,211     2,361  
Equipment and Occupancy expenses   63     70     243     254  
Professional Services Expense   107     133     403     455  
Data Processing Expense   168     148     639     605  
Other operating expense   158     116     585     506  
   Total non-interest expense   1,076     1,064     4,080     4,181  
                         
INCOME BEFORE INCOME TAXES   227     53     647     429  
                         
Provision for income taxes   56     13     169     115  
                         
NET INCOME (LOSS) $ 171   $ 40   $ 478   $ 314  
                         
INCOME (LOSS) PER SHARE:                        
Basic $ 0.22   $ 0.05   $ 0.63   $ 0.41  
Diluted $ 0.22   $ 0.05   $ 0.63   $ 0.41  
                         
DIVIDENDS DECLARED PER SHARE $   $   $   $  
                         
AVERAGE SHARES OUTSTANDING:                        
Basic   761,335     761,580     761,335     764,146  
Diluted   761,335     761,580     761,335     764,945  

 

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