The Southern Banc Company, Inc. Announces Third Quarter Earnings
GADSDEN, Ala., May 15, 2025 (GLOBE NEWSWIRE) -- The Southern Banc Company, Inc. (OTCBB: SRNN), the holding company for The Southern Bank Company (the "Bank"), announced net income of approximately $230,000, or $0.30 per basic and $0.30 per diluted share, for the quarter ended March 31, 2025, as compared to net income of approximately $340,000, or $0.45 per basic and $0.44 per diluted share, for the quarter ended March 31, 2024. The Company announced that for the nine-month period ended March 31, 2025, the Company recorded net income of approximately $775,000, or $1.02 per basic and $1.01 per diluted share, as compared to net income of approximately $1,177,000, or $1.55 per basic and $1.53 per diluted share, for the nine-month period ended March 31, 2024. The Company's fiscal year ends June 30, 2025.
Gates Little, President and Chief Executive Officer of the Company stated that the Company's net interest margins increased approximately $335,000, or 17.92%, during the quarter as compared to the same period in 2024. The increase in the net interest margin before provision for credit losses for the quarter was primarily attributable to an increase in total interest income of approximately $477,000 offset by an increase in total interest expense of approximately $142,000. For the three-month period ending March 31, 2025, the Company recorded a provision for loan and lease losses in the amount of approximately $99,000 as compared to no provision for the three-month period ended March 31, 2024. For the quarter ending March 31, 2025, total non-interest income decreased approximately $53,000, or (27.88%), while total non-interest expense increased approximately $332,000, or 20.70%, as compared to the same three-month period in 2024. The decrease in non-interest income was primarily attributable to a decrease in miscellaneous income of approximately $51,000 and customer services fees of approximately $2,000. The increase in non-interest expense was primarily attributable to increases in salaries and benefits of approximately $289,000, professional service expense of approximately $26,000, and occupancy expense of approximately $8,000 offset in part by a decrease in data processing expenses of approximately $10,000.
For the nine months ending March 31, 2025, net interest income increased approximately $1,442,000, or 20.17%, as compared to the same period in 2024. For the nine-month period ending March 31, 2025, the Company recorded a provision for loan and lease losses in the amount of approximately $541,000 as compared to no provision for the nine-month period ended March 31, 2024. For the nine-months ended March 31, 2025, total non-interest income decreased approximately $42,000, or (8.53%), while total non-interest expense increased approximately $774,000, or 16.70%, as compared to the same period in 2024. The decrease in non-interest income was primarily attributable to decreases in miscellaneous income of approximately $37,000 and customer service fees of approximately $5,000. The increase in non-interest expense was primarily attributable to increases in salaries and benefits of approximately $630,000, occupancy expense of approximately $21,000, professional fees of approximately $144,000, offset in part by a decrease in data processing expense of approximately $25,000.
The Company's total assets on March 31, 2025, were approximately $127.7 million, as compared to $113.1 million at June 30, 2024. Total stockholders' equity was approximately $16.3 million on March 31, 2025, or 12.73% of total assets as compared to approximately $14.5 million on June 30, 2024, or approximately 12.80% 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 that conducts factoring activities. Common 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)
March 31, June 30,
2025 2024
Unaudited Audited
--------- ----------
ASSETS
CASH AND CASH EQUIVALENTS $ 26,537 $ 12,632
SECURITIES AVAILABLE FOR SALE, at fair value 38,922 37,912
FEDERAL HOME LOAN BANK STOCK 125 120
LOANS RECEIVABLE, net of allowance for loan
losses of $1,605 and $1,160, respectively 58,408 58,199
PREMISES AND EQUIPMENT, net 1,025 1,133
ACCRUED INTEREST AND DIVIDENDS RECEIVABLE 955 934
PREPAID EXPENSES AND OTHER ASSETS 1,763 2,124
TOTAL ASSETS $ 127,735 $113,054
======== =======
LIABILITIES
DEPOSITS $ 104,249 $ 92,250
FHLB ADVANCES 0 0
OTHER LIABILITIES 7,227 6,338
TOTAL LIABILITIES 111,476 98,588
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 13,947 13,943
Shares held in trust, 44,081 and 46,454
shares at cost, respectively (762) (772)
Retained earnings 14,660 13,884
Treasury stock, at cost, 648,664 shares (8,825) (8,825)
Accumulated other comprehensive (loss) (2,776) (3,779)
--------
TOTAL STOCKHOLDERS' EQUITY 16,259 14,466
-------- -------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 127,735 $113,054
======== =======
THE SOUTHERN BANC COMPANY, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollar Amounts in Thousands, except per share data)
Three Months Ended Nine Months Ended
March 31, March 31,
--------------------- ---------------------
2025 2025
(Unaudited) 2024 (Unaudited) 2024
INTEREST INCOME:
Interest and fees on loans $ 2,476 $ 2,108 $ 7,548 $ 6,284
Interest and dividends on securities 200 182 545 551
Other interest income 213 122 494 310
----------- ------- ----------- -------
Total interest income 2,889 2,412 8,587 7,145
INTEREST EXPENSE:
Interest on deposits 685 543 2,020 1,392
Interest on borrowings 0 0 0 0
Total interest expense 685 543 2,020 1,392
----------- ------- ----------- -------
Net interest income before provision for loan losses 2,204 1,869 6,567 5,753
Provision for loan losses 99 0 541 0
-----------
Net interest income after provision for loan losses 2,105 1,869 6,026 5,753
NON-INTEREST INCOME:
Fees and other non-interest income 30 32 96 101
Net gain on sale of securities 0 0 0 0
Miscellaneous income 107 158 344 381
----------- ------- ----------- -------
Total non-interest income 137 190 440 482
----------- ------- ----------- -------
NON-INTEREST EXPENSE:
Salaries and employee benefits 1,239 950 3,402 2,772
Office building and equipment expenses 101 93 285 264
Professional Services Expense 195 169 565 421
Data Processing Expense 185 195 555 580
Net loss on sale of securities 0 0 0 0
Other operating expense 211 192 610 606
Total non-interest expense 1,931 1,599 5,417 4,643
----------- ------- ----------- -------
Income before income taxes 311 460 1,049 1,592
PROVISION FOR INCOME TAXES 81 120 274 415
----------- ------- ----------- -------
Net Income $ 230 $ 340 $ 775 $ 1,177
=========== ======= =========== =======
EARNINGS PER SHARE:
Basic $ 0.30 $ 0.45 $ 1.02 $ 1.55
Diluted $ 0.30 $ 0.44 $ 1.01 $ 1.53
DIVIDENDS DECLARED PER SHARE $ --- $ --- $ --- $ ---
AVERAGE SHARES OUTSTANDING:
Basic 763,918 759,650 761,050 760,729
Diluted 768,309 766,093 766,710 767,791
Contact: Gates Little
(256) 543-3860
(END) Dow Jones Newswires
May 15, 2025 10:31 ET (14:31 GMT)
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