SOUTHERN BANCSHARES (N.C.), INC. Southern BancShares (N.C.), Inc.
Consolidated Comparative
Quarterly Report
Executive Offices
P.O. Box 729
116 East Main Street
Mount Olive, NC 28365
919.658.7022
Southern Bank Customer Care
855.275.7226
Shareholders Contact Center
800.821.0655 ext. 7074
www.southernbank.com
September 30, 2023
© 2023 Southern Bank - (TD)
Southern BancShares (N.C.), Inc. and Subsidiaries | For the Quarter Ended | As of or Year to Date | Percent | ||||||||
Financial Highlights (Unaudited) | September 30, | September 30, | Change | ||||||||
(Dollars in thousands, except per share data) | 2023 | 2022 | 2023 | 2022 | YTD | ||||||
SUMMARY BALANCE SHEET | |||||||||||
ASSETS | |||||||||||
Cash, due from banks and overnight funds sold | $ | 116,854 | $ | 128,751 | -9% | ||||||
Investments | 1,538,783 | 1,569,929 | -2% | ||||||||
Loans less allowance for credit loss of $33,075 and $34,252 | 3,016,708 | 2,718,120 | 11% | ||||||||
Other assets | 204,689 | 209,907 | -2% | ||||||||
Total assets | $ | 4,877,034 | $ | 4,626,707 | 5% | ||||||
LIABILITIES | |||||||||||
Deposits: | |||||||||||
Noninterest-bearing deposits | $ | 1,392,485 | $ | 1,515,486 | -8% | ||||||
Interest-bearing deposits | 2,694,448 | 2,601,395 | 4% | ||||||||
Total deposits | 4,086,933 | 4,116,881 | -1% | ||||||||
Borrowings | 386,092 | 226,514 | 70% | ||||||||
Other liabilities | 24,993 | 20,031 | 25% | ||||||||
Total liabilities | 4,498,018 | 4,363,426 | 3% | ||||||||
SHAREHOLDERS' EQUITY | 1,728 | 1,768 | -2% | ||||||||
Preferred stock | |||||||||||
Common stock | 388 | 390 | -1% | ||||||||
Surplus | 27,043 | 27,043 | 0% | ||||||||
Retained earnings | 589,141 | 460,744 | 28% | ||||||||
Accumulated other comprehensive loss | (239,284) | (226,664) | 6% | ||||||||
Total shareholders' equity | 379,016 | 263,281 | 44% | ||||||||
Total liabilities and shareholders' equity | $ | 4,877,034 | $ | 4,626,707 | 5% | ||||||
EARNINGS PERFORMANCE | |||||||||||
Interest income | $ | 42,999 | $ | 36,146 | $ | 125,120 | $ | 102,459 | 22% | ||
Interest expense | 14,459 | 2,497 | 36,659 | 5,048 | 626% | ||||||
Net interest income | 28,540 | 33,649 | 88,461 | 97,411 | -9% | ||||||
Provision (recovery) for loan losses | (238) | 1,485 | 344 | 4,919 | -93% | ||||||
Noninterest income | 25,598 | 36,176 | 149,598 | 13,102 | 1042% | ||||||
Noninterest expense | 23,290 | 24,015 | 72,041 | 71,438 | 1% | ||||||
Income before income taxes | 31,086 | 44,325 | 165,674 | 34,156 | 385% | ||||||
Income tax expense | 6,687 | 8,873 | 34,277 | 5,612 | 511% | ||||||
Net income | $ | 24,399 | $ | 35,452 | $ | 131,397 | $ | 28,544 | 360% | ||
Net income per share | $ | 313.39 | $ | 451.09 | $ | 1,684.98 | $ | 360.28 | |||
Return on average assets | 2.01% | 2.87% | 3.66% | 0.79% | |||||||
Return on average equity | 23.79% | 43.24% | 48.59% | 10.45% |
ADDITIONAL DISCLOSURE - ACCOUNTING FOR INVESTMENTS IN MARKETABLE EQUITY SECURITIES
Pursuant to Accounting Standards Update 2016-01: Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities ("ASU 2016-01"), equity investments must be measured at fair value with changes in fair value recognized in net income. For the quarters ended September 30, 2023 and 2022, unrealized gains on equity investments of $19.2 million and $29.9 million, respectively were included in noninterest income, and $3.9 million and $6.3 million, respectively in deferred tax expense were included in income tax expense related to the change in fair value of equity investments. For the nine months ended September 30, 2023 and 2022, unrealized gains (losses) on equity investments of $130.0 million and $(8.0) million, respectively were included in noninterest income, and $27.2 million and $(1.7) million,
respectively in deferred tax expense (benefit) were included in income tax | expense related to the change in fair value of equity investments.While ASU 2016-01 has no impact on | |
the book value per common share, the impact on net income is as follows: | For the Quarter Ended | Year to Date |
September 30, | September 30, |
2023 | 2022 | 2023 | 2022 | |||||
Net income (loss) as reported | $ | 24,399 | $ | 35,452 | $ | 131,397 | $ | 28,544 |
Plus (less): impact of ASU 2016-01 | (15,329) | (23,652) | (102,804) | 6,312 | ||||
Net income excluding the impact of ASU 2016-01 | $ | 9,070 | $ | 11,800 | $ | 28,593 | $ | 34,856 |
Return on average assets excluding the impact of ASU 2016-01 | 0.75% | 0.97% | 0.80% | 0.96% | ||||
Return on average equity excluding the impact of ASU 2016-01 | 8.84% | 14.49% | 10.57% | 12.76% |
ADDITIONAL DISCLOSURE - REPURCHASE OF THE COMPANY'S COMMON AND PREFERRED STOCK
On January 17, 2023, the Company's Board of Directors approved a stock repurchase program that expires on March 31, 2024 and authorizes the repurchase of up to 4,000 shares of the Company's outstanding common stock. The repurchase program stipulates that the aggregate dollar amount paid during any consecutive twelve-month period to repurchase shares of common stock, through open market and privately negotiated transactions, and shares of preferred stock, through privately negotiated transactions, shall not equal or exceed 3% of the Company's consolidated shareholders' equity. The following table indicates the number of shares of each class and the amount paid to repurchase
shares during the three- and nine-month periods ended September 30, 2023. | Quarter Ended | Year-to-Date | ||||
September 30, 2023 | September 30, 2023 | |||||
# Shares | Amount paid | # Shares | Amount paid | |||
Common | 848 | $ | 4,572 | 1,047 | $ | 5,575 |
Series B preferred | - | - | 1,415 | 18 | ||
Series C preferred | - | - | 85 | 1 |
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Southern BancShares (N.C.) Inc. published this content on 17 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 November 2023 16:27:16 UTC.
