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		0				0
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		0			44			0		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		0			0			0		0
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
[phone]
February 15, 2024