Southern Banc Company, Inc. Reports Q4 Earnings Results
Southern Banc Company, Inc. Announces Preliminary Fourth Quarter Earnings
Gates Little, President and Chief Executive Officer of The Southern Banc Company, Inc., the holding company for The Southern Bank Company, has recently shared the preliminary unaudited financial results for the fourth quarter and the fiscal year ending June 30, alongside the fiscal performance for 2025.
Preliminary Financial Highlights
For the three months ending on June 30, 2025, the company recorded net income of around $140,000, or $0.18 per share. This is a significant decrease compared to the same period in 2024, which reported net income of approximately $424,000, translating to $0.56 per share for basic and $0.55 for diluted shares. This decline highlights a challenging quarter for the company.
Yearly Performance Overview
In terms of overall performance for the fiscal year concluding on June 30, 2025, the company noted net income of approximately $915,000, representing $1.20 per basic and diluted share. Comparatively, the previous fiscal year saw a net income of about $1,602,000, which equated to $2.11 per basic share and $2.09 per diluted share.
Net Interest Income Insights
One noteworthy aspect of the financial report is the increased net interest income. During the three months ending June 30, 2025, net interest income rose to approximately $78,000, indicating a 12.90% increase versus the same quarter in 2024. This increase is mainly attributed to a rise in interest and fees on loans, reflecting a broader trend of enhancing income through service offerings.
Annual Net Interest Income Trends
Over the entire fiscal year, net interest income increased significantly, reaching approximately $892,000, or 11.23%, compared to fiscal year 2024. Key contributors to this rise included an increase in fees and interest on loans, totaling an impressive $1,266,000, marking a 14.45% increase.
Non-Interest Income and Expenses Analysis
Despite the rise in net interest income, the company faced challenges in non-interest income. In the third quarter, non-interest income fell by around $22,000 or (12.44%), with the annual decrease totaling about $63,000, reflecting a 9.58% decline year-over-year.
Rising Non-Interest Expenses
The non-interest expenses saw a significant increase as well, rising approximately $354,000, or 21.24%, compared to the same quarter in 2024. Annual figures reflected a total increase of $1,129,000, signifying a 17.90% rise. Factors contributing to this increase primarily included enhanced salaries and professional service costs, highlighting the bank's investments in talent and capabilities.
Asset and Equity Status
As of June 30, 2025, the company's total assets reached approximately $124.1 million compared to $113.1 million the previous year. The stockholders' equity stood at about $16.7 million, equating to 13.47% of total assets.
Looking Ahead
Management has stated that the unaudited financial information aligns with the expectations set out for the audited financial results. The company anticipates final year-end results and related financial statements will be published in October following the completion of audits. Historical performance serves as context, but the market is ever-changing, and management remains focused on future growth strategies.
Frequently Asked Questions
What were the key financial highlights for Southern Banc Company, Inc. for Q4?
The company reported a net income of approximately $140,000 for the three months ending June 30, 2025, down from $424,000 in Q4 2024, reflecting market challenges.
How did the full-year performance compare to the previous year?
The fiscal year ending June 30, 2025, saw a net income of approximately $915,000 compared to $1,602,000 for the prior fiscal year.
What factors contributed to the increase in net interest income?
An increase in interest and fees from loans and improved securities interest contributed to the overall rise in net interest income.
Were there any decreases in non-interest income?
Yes, there was a decrease in non-interest income in both the third quarter and the fiscal year, highlighting the need for strategic adjustments in offerings.
What is the company's equity position as of June 30, 2025?
The company's total stockholders' equity was about $16.7 million, representing 13.47% of total assets, marking a healthy equity standing.
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