Southern Banc Company Reports Mixed Third Quarter Earnings
Southern Banc Company Reports Financial Results for the Quarter
Southern Banc Company, Inc. (OTCBB: SRNN) has recently shared its earnings for the third quarter. During this period, the company achieved a net income of approximately $230,000, translating to $0.30 per basic and diluted share. This marks a decline from the same quarter in the previous year, where the company reported a net income of around $340,000 or $0.45 per basic share.
Net Income and Performance Insights
The financial overview for the nine-month period concluding on March 31, 2025, indicates a net income of about $775,000 or $1.02 per basic share. Comparatively, in the same timeframe one year earlier, the company recorded a higher net income of around $1,177,000, or $1.55 per share. The overall fiscal year for Southern Banc ends on June 30.
Growth in Net Interest Margins
Gates Little, President and CEO, highlighted a remarkable increase in net interest margins, which rose significantly by around $335,000 or 17.92% during the quarter compared to the previous year. This growth in profit margins was driven primarily by a substantial increase in total interest income, amounting to about $477,000, which outweighed a $142,000 rise in total interest expense.
Loan and Lease Loss Provision
The company recorded a provision for loan and lease losses of approximately $99,000 for the three-month period ending March 31, 2025. This is a notable change from the same quarter in the previous year which reported no provision. Although the company faced challenges, particularly with a decrease in non-interest income by about $53,000 (27.88%), it continues to manage expenses effectively.
Asset and Equity Developments
As of March 31, 2025, total assets stood at around $127.7 million, a notable increase from $113.1 million reported in June 2024. The total stockholders' equity at the end of the quarter was approximately $16.3 million, representing 12.73% of total assets, which reflects a steady growth in financial stability and assets management.
Banking Operations and Outreach
Southern Banc operates four full-service banking offices along with a loan production office dedicated to factoring activities, showcasing its commitment to expanding its service offerings. The common stock of Southern Banc Company, Inc. is traded under the symbol “SRNN” in the over-the-counter market.
Future Prospects
Although certain financial indicators have shown a decline, the strategic focus on enhancing net interest margins could prove beneficial in the future. The company is optimistic about continuing its momentum and adapting to the evolving landscape of financial services, ensuring it remains competitive and efficient.
Frequently Asked Questions
What was Southern Banc Company's net income for the latest quarter?
The company's net income for the latest quarter was approximately $230,000.
How has the net interest margin changed?
Net interest margins increased by around $335,000, representing a growth of 17.92% compared to the previous year.
What are the total assets reported recently?
Total assets as of March 31, 2025, were approximately $127.7 million.
Is Southern Banc planning to expand its services further?
Yes, the company is committed to enhancing its service offerings and expanding its operations.
How is Southern Banc Company's stock traded?
The common stock of Southern Banc Company, Inc. trades in the over-the-counter market under the symbol “SRNN.”
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