The Southern Banc Company, Inc. Announces Second Quarter Earnings

Rhea-AI Summary

The Southern Banc Company (OTCBB: SRNN) reported Q2 FY2025 results with net income of $369,000 ($0.49 per basic share) for the quarter ended December 31, 2024, compared to $471,000 ($0.62 per basic share) in the same period last year. Net interest income before loan loss provisions increased 9.96% to $2.213 million, driven by higher interest income of $430,000, partially offset by increased interest expenses of $230,000.

For the six months ended December 31, 2024, net income was $545,000 ($0.72 per basic share), down from $837,000 ($1.10 per basic share) year-over-year. The company recorded a $442,000 provision for loan losses in the six-month period, compared to no provision in the previous year. Total assets reached $117.0 million, with stockholders' equity at $15.5 million (13.2% of total assets).

Positive

• Net interest income before provisions increased 9.96% to $2.213 million in Q2
• Total assets grew to $117.0 million from $113.0 million in June 2024
• Stockholders' equity improved to 13.2% of total assets from 12.80%

Negative

• Q2 net income declined 21.7% year-over-year to $369,000
• Six-month net income decreased 34.9% to $545,000
• New loan loss provisions of $442,000 compared to zero in previous year
• Non-interest expenses increased 18.25% in Q2

GADSDEN, Ala., Feb. 14, 2025 (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 $369,000, or $0.49 per basic share and $0.48 per diluted share, for the three months ended December 31, 2024, as compared to 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. For the six months ended December 31, 2024, the Company recorded net income of approximately $545,000, or $0.72 per basic share and $0.71 per diluted share, as compared to net income of approximately $837,000, or $1.10 per basic share and $1.09 per diluted share, for the six months ended December 31, 2023. 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 income before provision for loan losses totaled approximately $2.213 million during the three months ended December 31, 2024, as compared to approximately $2.013 million in the same period in 2023, an increase of approximately $201,000, or 9.96%. The increase in the net interest income before provision for loan losses for the three months ended December 31, 2024, was primarily attributable to an increase in total interest income of approximately $430,000, offset by an increase in total interest expense of approximately $230,000. In the three months ended December 31, 2024, the Bank recorded a provision for loan losses of approximately $70,000 and no provision for loan losses in during the three months ended December 31, 2023. For the three months ended December 31, 2024, total non-interest income increased approximately $9,000, or 6.09%, while total non-interest expense increased approximately $278,000, or 18.25%, as compared to the same three-month period in 2023. The increase in non-interest income was primarily attributable to an increase in miscellaneous income of approximately $10,000. The increase in non-interest expense was primarily attributable to increases in salaries and benefits of approximately $222,000, office building expense of approximately $6,000, other operating expense of approximately $16,000, professional service expense of approximately $45,000, offset by a decrease in data processing expense of approximately $12,000.

For the six months ended December 31, 2024, the Company’s net interest income before provision for loan losses totaled approximately $4.363 million, an increase of approximately $479,000, or 12.33%, when compared to the six months ended December 31, 2023. The increase in net interest income before provision for loan losses was primarily attributable to an increase in total interest income of approximately $965,000, or 20.38%, offset by an increase in total interest expense of approximately $486,000, or 57.19%. For the six months ended December 31, 2024, the Bank recorded provisions for loan losses of approximately $442,000. There was no provision for loan losses during the six months ended December 31, 2023. For the six months ended December 31, 2024, total non-interest income increased approximately $12,000, or 4.10%, compared to the same period in 2023, while non-interest expense increased approximately $444,000, or 14.59%. The increase in non-interest income was primarily attributable to an increase in miscellaneous income of approximately $14,000. The increase in non-interest expense was primarily attributable to increases in salaries and benefits of approximately $340,000, office and equipment of approximately $14,000, professional service expenses of approximately $119,000 offset in part by decreases in data processing expense of approximately $15,000, and other operating expense of approximately $15,000.

The Company’s total assets at December 31, 2024 were approximately $117.0 million, as compared to approximately $113.0 million at June 30, 2024. Total stockholders’ equity was approximately $15.5 million at December 31, 2024, or 13.2% of total assets, as compared to approximately $14.5 million at June 30, 2024, or 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. 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,				June 30,
		2024				2024
		Unaudited				Audited
ASSETS
CASH AND CASH EQUIVALENTS	$	16,592			$	12,632
SECURITIES AVAILABLE FOR SALE, at fair value		39,238				37,912
FEDERAL HOME LOAN BANK STOCK		120				120
LOANS RECEIVABLE, net of allowance for loan losses of $1,548 and $1,151, respectively		56,999				58,199
PREMISES AND EQUIPMENT, net		1,059				1,133
ACCRUED INTEREST AND DIVIDENDS RECEIVABLE		946				934
PREPAID EXPENSES AND OTHER ASSETS		2,055				2,124
TOTAL ASSETS	$	117,009			$	113,054
LIABILITIES
DEPOSITS	$	95,528			$	92,250
FHLB ADVANCES		0				0
OTHER LIABILITIES		6,035				6,338
TOTAL LIABILITIES		101,563				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		13,946				13,943
Shares held in trust, 49,081 and 46,454 shares at cost, respectively		(804	)			(772	)
Retained earnings		14,429				13,884
Treasury stock, at cost, 648,664 shares		(8,825	)			(8,825	)
Accumulated other comprehensive (loss) income		(3,315	)			(3,779	)
TOTAL STOCKHOLDERS’ EQUITY		15,446				14,466
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	117,009			$	113,054

THE SOUTHERN BANC COMPANY, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Dollar Amounts in Thousands, except per share data)
		Three Months Ended						Six Months Ended
		December 31,						December 31,
		2024 (Unaudited)			2023			2024 (Unaudited)			2023
INTEREST INCOME:
Interest and fees on loans	$	2,598		$	2,210		$	5,072		$	4,176
Interest and dividends on securities		179			183			345			369
Other interest income		126			80			281			188
Total interest income		2,903			2,473			5,698			4,733
INTEREST EXPENSE:
Interest on deposits		690			460			1,335			849
Interest on borrowings		0			0			0			0
Total interest expense		690			460			1,335			849
Net interest income before provision for loan losses		2,213			2,013			4,363			3,884
Provision for loan losses		69			0			442			0
Net interest income after provision for loan losses		2,144			2,013			3,921			3,884
NON-INTEREST INCOME:
Fees and other non-interest income		31			32			66			68
Miscellaneous income		124			114			237			223
Total non-interest income		155			146			303			291
NON-INTEREST EXPENSE:
Salaries and employee benefits		1,138			916			2,163			1,823
Office building and equipment expenses		90			84			184			170
Professional Services Expense		170			125			371			252
Data Processing Expense		188			200			370			384
Other operating expense		214			197			399			414
Total non-interest expense		1,800			1,522			3,487			3,043
Income before income taxes		499			637			737			1,132
PROVISION FOR INCOME TAXES		130			166			192			295
Net Income	$	369		$	471		$	545		$	837
EARNINGS PER SHARE:
Basic	$	0.49		$	0.62		$	0.72		$	1.10
Diluted	$	0.48		$	0.61		$	0.71		$	1.09
DIVIDENDS DECLARED PER SHARE	$	---		$	---		$	---		$	---
AVERAGE SHARES OUTSTANDING:
Basic		759,632			761,257			759,632			761,257
Diluted		766,615			768,395			765,926			768,628

Contact: Gates Little                
(256) 543-3860

FAQ

What was SRNN's net income for Q2 2024 compared to Q2 2023?

SRNN reported net income of $369,000 for Q2 2024, down from $471,000 in Q2 2023, representing a 21.7% decrease.

How much did SRNN's net interest income grow in Q2 2024?

SRNN's net interest income before loan loss provisions grew by 9.96% to $2.213 million in Q2 2024.

What was SRNN's loan loss provision for the six months ended December 31, 2024?

SRNN recorded a loan loss provision of $442,000 for the six months ended December 31, 2024, compared to no provision in the same period last year.

What is SRNN's current stockholders' equity ratio?

SRNN's stockholders' equity was $15.5 million or 13.2% of total assets as of December 31, 2024.

How did SRNN's total assets change from June to December 2024?

SRNN's total assets increased from $113.0 million in June 2024 to $117.0 million in December 2024.