The Southern Banc Company, Inc. Announces Preliminary Fourth Quarter Earnings
GADSDEN, Ala., Aug. 21, 2020 (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, 2020:
For the three months ended June 30, 2020, the Company reported net income of approximately $40,000, or $0.05 per basic and diluted share as compared to net income of approximately $95,000, or $0.12 per basic and diluted share, for the three months ended June 30, 2019.
For the fiscal year ended June 30, 2020, the Company recorded net income of approximately $314,000, or $0.41 per basic and diluted share, as compared to net income of approximately $464,000, or $0.61 per basic and diluted share, for the fiscal year ended June 30, 2019.
For the three months ended June 30, 2020, net interest income before provision for loan losses decreased approximately $192,000, or (17.72%) as compared to the same period in 2019. The decrease in net interest income for the three-month period was primarily attributable to a decrease in interest and fees on loans in the amount of approximately $118,000, a decrease in other interest income of approximately $75,000 or (95.50%) offset in part by an increase in interest and dividends on securities of approximately $15,000. The decrease in interest and fees on loans was primarily attributable to a decrease in factoring activity from some large clients, and a decrease 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. In addition, the COVID pandemic had a significant impact total interest income for the quarter. For the three months ended June 30, 2020, interest paid on deposits and borrowings increased approximately $14,000 as compared to the same period in 2019. Total deposits during the quarter increased approximately $5 million.
For the fiscal year ended June 30, 2020, interest income decreased approximately $106,000 or (1.93%) while interest expenses increased approximately $200,000, or 21.81%. The decrease in interest income for the fiscal year ended June 30, 2020 was primarily attributable to a decrease in interest and fees on loans and a decrease in interest and dividends on securities. For the fiscal year ended June 30, 2020 other interest income increased approximately $20,000 or 9.72% due to an increase in interest on overnight funds. For the fiscal year ended June 30, 2020, interest on deposits increased approximately $261,000, or 30.60% while interest expense on borrowings decreased approximately $61,000 or (93.20%). For the fiscal year ended June 30, 2020 provision for loan losses increased approximately $25,000, or 124.53% from approximately $20,000 for fiscal year 2019 to $44,000 for fiscal year 2020.
For the fiscal year ended June 30, 2020, non-interest income increased approximately $225,000, or 132.30% from $170,000 for fiscal year 2019 to $395,000 for fiscal year 2020. The increase in non-interest income was primarily attributable to a net gain on the sale of securities available for sale of approximately $91,000, an increase in miscellaneous income of approximately $118,000 or 237.98% and an increase in customer service fees of approximately $16,000 or 12.97%.
For the three months ended June 30, 2020 total non-interest expenses increased approximately $72,000, or 7.26%, as compared to the same three-month period in 2019. The increase in non-interest expense for the three-month period was primarily attributable to increases in professional service expenses of approximately $53,000, or 65.97%, data processing expenses of approximately $26,000 or 21.03%, occupancy expenses of approximately $11,000 or 18.02% and an increase in salaries and benefits of approximately $4,000, or 0.70%.
For the fiscal year ended June 30, 2020, total non-interest expenses increased approximately $98,000, or 2.41%, as compared to fiscal year 2019. The increase in non-interest expense for the fiscal year was primarily attributable to increases in data processing service expenses of approximately $101,000, or 20.11%, professional services expense of approximately $4,000, or 0.92%, salary and benefit expenses of approximately $2,300, or 0.10%, occupancy expenses of approximately $20,000 or 8.74% offset in part by a decrease in other operating expenses of approximately $30,000 or (5.5%).The Company’s total assets at June 30, 2020 was approximately $103.4 million as compared to $97.7 million at June 30, 2019. Total stockholders’ equity was approximately $12.4 million, or 12.00% of assets and $11.8 million, or 12.00% of assets at June 30, 2020 and 2019, respectively.The unaudited financial information for the three and twelve months ended June 30, 2020 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 2020, 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)
THE SOUTHERN BANC COMPANY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollar Amounts in Thousands, except per share data)
For the three months ended June 30, 2020, the Company reported net income of approximately $40,000, or $0.05 per basic and diluted share as compared to net income of approximately $95,000, or $0.12 per basic and diluted share, for the three months ended June 30, 2019.
For the fiscal year ended June 30, 2020, the Company recorded net income of approximately $314,000, or $0.41 per basic and diluted share, as compared to net income of approximately $464,000, or $0.61 per basic and diluted share, for the fiscal year ended June 30, 2019.
For the three months ended June 30, 2020, net interest income before provision for loan losses decreased approximately $192,000, or (17.72%) as compared to the same period in 2019. The decrease in net interest income for the three-month period was primarily attributable to a decrease in interest and fees on loans in the amount of approximately $118,000, a decrease in other interest income of approximately $75,000 or (95.50%) offset in part by an increase in interest and dividends on securities of approximately $15,000. The decrease in interest and fees on loans was primarily attributable to a decrease in factoring activity from some large clients, and a decrease 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. In addition, the COVID pandemic had a significant impact total interest income for the quarter. For the three months ended June 30, 2020, interest paid on deposits and borrowings increased approximately $14,000 as compared to the same period in 2019. Total deposits during the quarter increased approximately $5 million.
For the fiscal year ended June 30, 2020, interest income decreased approximately $106,000 or (1.93%) while interest expenses increased approximately $200,000, or 21.81%. The decrease in interest income for the fiscal year ended June 30, 2020 was primarily attributable to a decrease in interest and fees on loans and a decrease in interest and dividends on securities. For the fiscal year ended June 30, 2020 other interest income increased approximately $20,000 or 9.72% due to an increase in interest on overnight funds. For the fiscal year ended June 30, 2020, interest on deposits increased approximately $261,000, or 30.60% while interest expense on borrowings decreased approximately $61,000 or (93.20%). For the fiscal year ended June 30, 2020 provision for loan losses increased approximately $25,000, or 124.53% from approximately $20,000 for fiscal year 2019 to $44,000 for fiscal year 2020.
For the fiscal year ended June 30, 2020, non-interest income increased approximately $225,000, or 132.30% from $170,000 for fiscal year 2019 to $395,000 for fiscal year 2020. The increase in non-interest income was primarily attributable to a net gain on the sale of securities available for sale of approximately $91,000, an increase in miscellaneous income of approximately $118,000 or 237.98% and an increase in customer service fees of approximately $16,000 or 12.97%.
For the three months ended June 30, 2020 total non-interest expenses increased approximately $72,000, or 7.26%, as compared to the same three-month period in 2019. The increase in non-interest expense for the three-month period was primarily attributable to increases in professional service expenses of approximately $53,000, or 65.97%, data processing expenses of approximately $26,000 or 21.03%, occupancy expenses of approximately $11,000 or 18.02% and an increase in salaries and benefits of approximately $4,000, or 0.70%.
For the fiscal year ended June 30, 2020, total non-interest expenses increased approximately $98,000, or 2.41%, as compared to fiscal year 2019. The increase in non-interest expense for the fiscal year was primarily attributable to increases in data processing service expenses of approximately $101,000, or 20.11%, professional services expense of approximately $4,000, or 0.92%, salary and benefit expenses of approximately $2,300, or 0.10%, occupancy expenses of approximately $20,000 or 8.74% offset in part by a decrease in other operating expenses of approximately $30,000 or (5.5%).The Company’s total assets at June 30, 2020 was approximately $103.4 million as compared to $97.7 million at June 30, 2019. Total stockholders’ equity was approximately $12.4 million, or 12.00% of assets and $11.8 million, or 12.00% of assets at June 30, 2020 and 2019, respectively.The unaudited financial information for the three and twelve months ended June 30, 2020 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 2020, 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)
THE SOUTHERN BANC COMPANY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollar Amounts in Thousands, except per share data)
