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

GADSDEN, Ala., Aug. 15, 2024 (GLOBE NEWSWIRE) — Gates Little, President and Chief Executive Officer of The Southern Banc Company, Inc. (OTC: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, 2024: For the three months ended June 30, 2024, the Company reported net income of approximately $424,000, or $0.56 per basic and $0.55 per diluted share as compared to net income of approximately $784,000, or $1.03 per basic and $1.02 per diluted share, for the three months ended June 30, 2023. For the fiscal year ended June 30, 2024, the Company recorded net income of approximately $1,602,000, or $2.11 per basic and $2.09 per diluted share, as compared to net income of approximately $2,474,000, or $3.26 per basic and $3.24 per diluted share, for the fiscal year ended June 30, 2023. For the three months ended June 30, 2024, net interest income decreased approximately $240,000, or (10.52%) as compared to the same period in 2023. The decrease 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 $133,000 or 5.65%, an increase in other interest income of approximately $55,000, or 57.44%, offset in part by an increase in interest on deposits of approximately $270,000, or 81.08%. For the three months ended June 30, 2024, the Company recorded approximately $155,000 in provisions for loan losses as compared to the same period in 2023. For the three months ended June 30, 2024, total interest paid on deposits and borrowings increased approximately $250,000, or 71.02% as compared to the same period in 2023. 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, 2024, net interest income decreased approximately $346,000, or (4.17%) as compared to fiscal year 2023. The decrease in net interest income for the fiscal year ended June 30, 2024, was primarily attributable to an increase in interest and fees on loans of approximately $510,000 or 6.17%, an increase in other interest income of approximately $230,000 or 100.44%, offset in part by an increase in interest on deposits of approximately $1,175,000, or 143.19% as compared to fiscal year 2023. For the fiscal year ended June 30, 2024, the Company recorded approximately $155,000 in provisions for loan losses as compared to no provision in 2023. For the fiscal year ended June 30, 2024, total interest paid on deposits and borrowings increased approximately $1,071,000, or 115.56%. For the three months ended June 30, 2024, non-interest income increased approximately $13,000, or 8.5% as compared to the same period in 2023. The increase in non-interest income was primarily attributable to an increase in miscellaneous income of approximately $25,000, or 21.5% offset in part by a decrease in customer service fees of approximately $12,000, or (24.91%). For the fiscal year ended June 30, 2024, non-interest income increased approximately $120,000, or 22.46% as compared to fiscal year 2023. The increase in non-interest income was primarily attributable to an increase in miscellaneous income of approximately $151,000, or 40.78% offset in part by a decrease in customer service fees of approximately $31,000, or (18.66%). For the three months ended June 30, 2024, total non-interest expenses increased approximately $251,000, or 17.82%, as compared to the same three-month period in 2023. The increase in non-interest expense for the three-month period was primarily attributable to increases in salaries and benefits of approximately $157,000, or 17.78%, office occupancy expenses of approximately $21,000, or 29.30%, professional services of approximately $56,000, or 52.01%, and other operating expenses of approximately $21,000, or 13.38%, offset in part by decreases in data processing expenses of approximately $4,000, or (1.41%). For the fiscal year ended June 30, 2024, total non-interest expenses increased approximately $795,000, or 14.43%, as compared to fiscal year 2023. The increase in total non-interest expense for the fiscal year was primarily attributable to increases in salary and benefit expenses of approximately $468,000, or 14.01%, other operating expenses of approximately $129,000, or 19.46%, professional services expenses of approximately $49,000, or 9.06%, data processing expenses of approximately $73,000, or 10.46%, and office occupancy expenses of approximately $77,000, or 27.69%. The Company’s total assets on June 30, 2024, were approximately $113.1 million as compared to $108.6 million at June 30, 2023. Total stockholders’ equity was approximately $14.5 million, or 12.79% of assets and $12.1 million, or 11.16% of assets at June 30, 2024 and 2023, respectively. The unaudited financial information for the three and twelve months ended June 30, 2024, 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 2024, 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, 2024 2023 (Unaudited) (Audited) ASSETS CASH AND CASH EQUIVALENTS $ 12,632 $ 8,745 SECURITIES AVAILABLE FOR SALE, at fair value 37,912 40,425 FEDERAL HOME LOAN BANK (FHLB) STOCK 120 98 LOANS RECEIVABLE, net of allowance for loan losses of $1,160 and $1,049, respectively 58,199 55,356 PREMISES AND EQUIPMENT, net 1,133 858 ACCRUED INTEREST AND DIVIDENDS RECEIVABLE 934 782 PREPAID EXPENSES AND OTHER ASSETS 2,166 2,367 TOTAL ASSETS $ 113,096 $ 108,631 LIABILITIES DEPOSITS $ 92,250 $ 90,952 FHLB ADVANCES AND OTHER BORROWED MONEY 0 0 OTHER LIABILITIES 6,380 5,557 TOTAL LIABILITIES 98,630 96,609 STOCKHOLDERS’ EQUITY: Preferred stock, par value $.01 per share 500,000 shares authorized; no shares issued and outstanding – –

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