Southern BancShares (N.C.), Inc.
Consolidated Comparative
Quarterly Report
Executive Offices
P.O. Box 729
116 East Main Street
Mount Olive, NC 28365
919.658.7022
Southern Bank Customer Care
855.275.7226
Shareholders Contact Center
800.821.0655 ext. 7074
www.southernbank.com
March 31, 2022
© 2022 Southern Bank - (TD)
Southern BancShares (N.C.), Inc. and Subsidiaries | Year to Date | Percent | |||||
Financial Highlights (Unaudited) | March 31, | Change | |||||
(Dollars in thousands, except per share data) | 2022 | 2021 | YTD | ||||
SUMMARY BALANCE SHEET | |||||||
ASSETS | |||||||
Cash, due from banks and overnight funds sold | $ | 207,225 | $ | 244,477 | -15% | ||
Investments | 1,844,946 | 1,415,527 | 30% | ||||
Loans less allowance for loan loss of $29,876 and $29,688 | 2,410,245 | 2,271,655 | 6% | ||||
Other assets | 175,488 | 167,688 | 5% | ||||
Total assets | $ | 4,637,904 | $ | 4,099,347 | 13% | ||
LIABILITIES | |||||||
Deposits: | |||||||
Noninterest-bearing deposits | $ | 1,464,327 | $ | 1,308,496 | 12% | ||
Interest-bearing deposits | 2,664,019 | 2,227,515 | 20% | ||||
Total deposits | 4,128,346 | 3,536,011 | 17% | ||||
Borrowings | 134,828 | 74,642 | 81% | ||||
Other liabilities | 21,997 | 59,216 | -63% | ||||
Total liabilities | 4,285,171 | 3,669,869 | 17% | ||||
SHAREHOLDERS' EQUITY | 1,782 | 1,805 | -1% | ||||
Preferred stock | |||||||
Common stock | 393 | 400 | -2% | ||||
Surplus | 27,043 | 27,043 | 0% | ||||
Retained earnings | 420,036 | 407,993 | 3% | ||||
Accumulated other comprehensive loss | (96,521) | (7,763) | 1143% | ||||
Total shareholders' equity | 352,733 | 429,478 | -18% | ||||
Total liabilities and shareholders' equity | $ | 4,637,904 | $ | 4,099,347 | 13% | ||
EARNINGS PERFORMANCE | |||||||
Interest income | $ | 32,399 | $ | 29,938 | 8% | ||
Interest expense | 1,169 | 1,156 | 1% | ||||
Net interest income | 31,230 | 28,782 | 9% | ||||
Provision (recovery) for loan losses | 494 | (541) | 191% | ||||
Noninterest income (loss) | (27,326) | 64,146 | -143% | ||||
Noninterest expense | 23,654 | 21,623 | 9% | ||||
Income (loss) before income taxes | (20,244) | 71,846 | -128% | ||||
Income tax expense (benefit) | (4,864) | 16,056 | -130% | ||||
Net income (loss) | $ | (15,380) | $ | $55,790 | -128% | ||
Earnings (loss) per share | $ | (195.36) | $ | 695.81 | |||
Return on average assets | -1.31% | 5.68% | |||||
Return on average equity | -14.02% | 55.11% |
ADDITIONAL DISCLOSURE - ACCOUNTING FOR INVESTMENTS IN MARKETABLE EQUITY SECURITIES
In January 2016, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") 2016-01: Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities ("ASU"). One of the requirements of the ASU is that equity investments must be measured at fair value with changes in fair value recognized in net income. During the quarters ended March 31, 2022 and 2021, unrealized gains (losses) on equity investments of ($34.3) million and $56.6 million, respectively were included in noninterest income, and ($7.2) million and $13.0 million, respectively in deferred tax expense (benefit) were included in income tax expense (benefit) related to the unrealized gains (losses). While the ASU has no impact on the book value per common share, the impact on net income is as follows:
Year to Date
March 31,
2022 | 2021 | |||
Net income (loss) as reported | $ | (15,380) | $ | 55,790 |
Plus (less): impact of ASU 2016-01 | 27,083 | (43,606) | ||
Net income excluding the impact of ASU 2016-01 | $ | 11,703 | $ | 12,184 |
Earnings per share | $ | 147.19 | $ | 151.31 |
Return on average assets excluding the impact of ASU 2016-01 | 1.00% | 1.24% | ||
Return on average equity excluding the impact of ASU 2016-01 | 10.67% | 12.04% |
ADDITIONAL DISCLOSURE - REPURCHASE OF THE COMPANY'S COMMON AND PREFERRED STOCK
On January 18, 2022, the Company's Board of Directors approved a stock repurchase program that expires on March 31, 2023 and authorizes the repurchase of up to 4,000 shares of the Company's outstanding common stock. The repurchase program stipulates that the aggregate dollar amount paid during any consecutive twelve-month period to repurchase shares of common stock, through open market and privately negotiated transactions, and shares of preferred stock, through privately negotiated transactions, shall not equal or exceed 3% of the Company's consolidated shareholders' equity. Pursuant to the terms of the repurchase program, the Company paid $4.6 million to repurchase 829 shares of common stock, $12,000 to repurchase 733 shares of series B preferred stock, and $19,000 to repurchase 1,210 shares of series C preferred stock during the quarter ended March 31, 2022.
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Southern BancShares (N.C.) Inc. published this content on 23 May 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 May 2022 19:38:06 UTC.