CORRECTION: The Southern Banc Company, Inc. Announces Preliminary Fourth Quarter Earnings

GADSDEN, Ala., Aug. 23, 2023 (GLOBE NEWSWIRE) -- In a release issued under the same headline on August 22, 2023 at 16:37 ET by The Southern Banc Company, Inc. (OTCBB: SRNN), a figure was incorrect in the first table. The “Accumulated other comprehensive income / (loss)” figure has been changed from 3,533 to (3,533). The corrected release follows:

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, 2023:

• For the three months ended June 30, 2023, the Company reported net income of approximately $784,000, or $1.03 per basic and $1.02 per diluted share as compared to net income of approximately $571,000, or $0.76 per basic and $0.75 per diluted share, for the three months ended June 30, 2022.
  

• For the fiscal year ended June 30, 2023, the Company recorded net income of approximately $2,477,000, or $3.26 per basic and $3.23 per diluted share, as compared to net income of approximately $1,736,000, or $2.29 per basic and diluted share, for the fiscal year ended June 30, 2022.
  

• For the three months ended June 30, 2023, net interest income before provision for loan losses increased approximately $404,000, or 21.57% as compared to the same period in 2022. 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 $569,000 or 32.00%, an increase in other interest income of approximately $86,000, or 966.29%, offset in part by an increase in interest on deposits of approximately $225,000, or 208.15%. For the three months ended June 30, 2023, interest paid on deposits and borrowings increased approximately $242,000 as compared to the same period in 2022. The current interest rate environment continues to have an impact on the bank’s lending and deposit activities.
  

• For the fiscal year ended June 30, 2023, total interest income increased approximately $2,137,000, or 30.20% while total interest expenses increased approximately $455,000, or 96.93%. The increase in interest income for the fiscal year ended June 30, 2023 was primarily attributable to an increase in interest and fees on loans of approximately $1,876,000 and an increase in other interest income of approximately $176,000 as compared to fiscal year 2022. For the fiscal year ended June 30, 2023, interest on deposits increased approximately $353,000, or 75.62% as compared to fiscal year 2022. For the fiscal years ended June 30, 2023 and 2022, the Company recorded no provision for loan losses.
  

• For the fiscal year ended June 30, 2023, non-interest income increased approximately $60,000, or 12.43% from $478,000 for fiscal year 2022 to $538,000 for fiscal year 2023. The increase in non-interest income was primarily attributable to an increase in miscellaneous income of approximately $61,000, or 19.53% offset in part by a decrease in customer service fees of approximately $1,000, or (0.79%).
  

• For the three months ended June 30, 2023, total non-interest expenses increased approximately $176,000, or 14.19%, as compared to the same three-month period in 2022. The increase in non-interest expense for the three-month period was primarily attributable to increases in salaries and benefits of approximately $200,000, or 29.53%, data processing expenses of approximately $17,000, or 9.58% offset in part by decreases in other operating expenses of approximately $12,000, or (7.25%), professional service expenses of approximately $33,000, or (23.90%).
  

• For the fiscal year ended June 30, 2023, total non-interest expenses increased approximately $779,000, or 16.46%, as compared to fiscal year 2022. The increase in total non-interest expense for the fiscal year was primarily attributable to increases in salary and benefit expenses of approximately $706,000, or 26.83%, other operating expenses of approximately $28,000, or 4.38%, professional services expenses of approximately $61,000, or 12.71% offset in part by a decrease in data processing expenses of approximately $31,000, or (4.14%).
  

• The Company’s total assets on June 30, 2023, were approximately $108.5 million as compared to $115.3 million at June 30, 2022. Total stockholders’ equity was approximately $12.1 million, or 11.17% of assets and $10.6 million, or 9.20% of assets at June 30, 2023 and 2022, respectively.

The unaudited financial information for the three and twelve months ended June 30, 2023, 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 2023, 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,
		2023				2022
		(Unaudited)				(Audited)
ASSETS
CASH AND CASH EQUIVALENTS	$	8,745			$	10,039
SECURITIES AVAILABLE FOR SALE, at fair value		40,425				45,345
FEDERAL HOME LOAN BANK (FHLB) STOCK		98				141
LOANS RECEIVABLE, net of allowance for loan losses
of $1,049 and $1,057, respectively		55,356				56,894
PREMISES AND EQUIPMENT, net		725				778
ACCRUED INTEREST AND DIVIDENDS RECEIVABLE		782				297
PREPAID EXPENSES AND OTHER ASSETS		2,368				1,787
TOTAL ASSETS	$	108,499			$	115,281
LIABILITIES
DEPOSITS	$	90,952			$	97,112
FHLB ADVANCES AND OTHER BORROWED MONEY		0				2,000
OTHER LIABILITIES		5,422				5,568
TOTAL LIABILITIES		96,374				104,680
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, 806,086 shares outstanding		15				15
Additional paid-in capital		13,938				13,931
Shares held in trust, 44,829 and 49,712 shares at cost,
respectively		(752	)			(793	)
Retained earnings		12,283				9,806
Treasury stock, at cost, 648,664 shares		(8,825	)			(8,825	)
Accumulated other comprehensive income / (loss)		(4,534	)			(3,533	)
TOTAL STOCKHOLDERS’ EQUITY		12,125				10,601
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	108,499			$	115,281

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,
		2023 (Unaudited)			2022			2023 (Unaudited)		2022 (Audited)
INTEREST INCOME:
Interest and fees on loans	$	2,347		$	1,778		$	8,254	$	6,378
Interest and dividends on securities		188			197			768		683
Other interest income		95			9			194		18
Total interest income		2,630			1,984			9,216		7,079
INTEREST EXPENSE:
Interest on deposits		333			108			820		467
Interest on borrowings		20			3			105		3
Total interest expense		353			111			925		470
Net interest income before provision for loan losses		2,277			1,873			8,291		6,609
Provision for loan losses		0			0			0		0
Net interest income after provision for loan losses		2,277			1,873			8,291		6,609
NON-INTEREST INCOME:
Fees and other non-interest income		46			43			166		167
Gain / (loss) on sale of securities, net		0			0			0		0
Miscellaneous income		117			98			372		311
Total non-interest income		163			141			538		478
NON-INTEREST EXPENSE:
Salaries and employee benefits		879			679			3,340		2,634
Equipment and Occupancy expenses		70			66			278		263
Professional Services Expense		107			140			535		474
Data Processing Expense		193			176			696		727
Other operating expense		165			177			664		636
Total non-interest expense		1,414			1,238			5,513		4,734
Income before income taxes		1,026			776			3,316		2,353
PROVISION FOR INCOME TAXES		242			205			839		617
Net Income	$	784		$	571		$	2,477	$	1,736
EARNINGS PER SHARE:
Basic	$	1.03		$	0.76		$	3.26	$	2.29
Diluted	$	1.02		$	0.75		$	3.23	$	2.29
DIVIDENDS DECLARED PER SHARE	$	---		$	---		$	---	$	---
AVERAGE SHARES OUTSTANDING:
Basic		761,374			756,374			758,730		756,885
Diluted		768,306			762,136			765,850		759,170

Contact: Gates Little
(256) 543-3860