GADSDEN, Ala., Aug. 13, 2021 (GLOBE NEWSWIRE) -- 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 

 

Contact: Gates Little
(256) 543-3860