Southern Banc Company Reports Significant Earnings Change
Southern Banc Company's Second Quarter Earnings Report
Southern Banc Company, Inc. (OTCBB: SRNN) has announced its earnings for the quarter ending December 31, revealing notable changes in its financial performance. With a reported net income of about $369,000, this equates to earnings of $0.49 per basic share and $0.48 per diluted share for the quarter. This result shows a decrease from the net income of approximately $471,000, or $0.62 per basic share, from the same period one year prior.
Comparative Financial Performance
For the six-month period ending December 31, the company reported a net income of approximately $545,000, or $0.72 per basic share, compared to a net income of about $837,000, or $1.10 per basic share, for the corresponding period last year. This indicates a decline, which highlights the challenges faced by the institution in maintaining its previous performance levels.
Net Interest Income Insights
The fiscal report indicates that the company’s net interest income before considering provision for loan losses reached approximately $2.213 million for the quarter, an increase from approximately $2.013 million one year ago. This marks an increase of around $201,000, or nearly 10%. The rise in net interest income is attributed primarily to an increase in total interest income of about $430,000, countered by a rise in interest expenses of approximately $230,000.
Non-Interest Income and Expenses
On the non-interest income side, the company saw an increase of about $9,000, or 6.09%, during the three-month period ended December 31. However, this was countered by a significant increase in non-interest expenses of about $278,000, representing a rise of 18.25%. The increase in expenses was largely due to higher salaries and benefits. The total asset figure at the end of December stood at approximately $117 million, a rise from $113 million reported six months earlier.
Provisions for Loan Losses
During the quarter, the bank recorded a provision for loan losses of about $70,000, a shift from the absence of such provisions in the prior year. This adjustment underscores the bank's proactive approach to managing potential risks in its lending portfolio as it navigates a changing economic landscape.
Total Non-Interest Income
The total non-interest income for the last reported six-month period also showed an increase, climbing to approximately $12,000, representing a growth of 4.10% year-over-year – however, non-interest expenses climbed much higher, up by $444,000, or 14.59%. This disparity indicates a challenging cost environment that the company must address moving forward.
Asset and Equity Overview
At December 31, 2024, the company’s total assets were approximately $117.0 million, showcasing growth from $113.0 million as noted in earlier financial reports. Moreover, total stockholders’ equity reached about $15.5 million at the end of December, representing an increase in equity ratio to 13.2% of total assets, up from 12.80% previously.
Future of Southern Banc Company
The Southern Banc Company operates multiple full-service banking offices and has strategically positioned itself to make informed decisions that promote shareholder value and customer satisfaction. With its stock trading under the symbol “SRNN” on the OTC marketplace, the company remains focused on enhancing its financial health and operational efficiency.
Frequently Asked Questions
What were the net income figures for Southern Banc Company?
The net income reported was approximately $369,000 for the three months ending December 31, with a decline from the previous year's $471,000.
How did the company's assets change over the reporting period?
Total assets increased to approximately $117 million, up from $113 million reported in the previous period.
What factors contributed to the increase in non-interest expenses?
The rise in non-interest expenses was primarily driven by an increase in salaries and benefits, alongside other operational costs.
What is the significance of the provision for loan losses?
The provision for loan losses of about $70,000 reflects the bank's efforts to prepare for potential credit losses, which were absent during the same period last year.
Where can I find more information about Southern Banc Company?
You can follow updates about Southern Banc Company, Inc. and its financial performance on various financial news outlets and its official corporate announcements.
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