SOUTHERN BANCSHARES (N.C.), INC.
QUARTERLY REPORT
JUNE 2022
Mission
Founded in 1901, Southern Bank is a customer-focused community bank serving eastern North Carolina and southeastern Virginia. Our mission is to be the bank of preference for consumers and businesses in the markets that we serve.
Genuine concern for the customer is our top priority, striving to create and deliver superior value in the financial services we provide by exceeding the expectations of our customers.
We are dedicated to the communities we serve, both in spirit and support. We provide a progressive and rewarding working environment for our employees that encourages the investment of their time, energy, and talents to the betterment of their communities.
We embrace sound banking
philosophies that incorporate dedication to relationships, strong business values, and financial integrity while advocating the maintenance of quality assets and reasonable return on shareholder investment.
Southern Bank is a wholly owned subsidiary of Southern BancShares (N.C.), Inc.
Southern BancShares (N.C.), Inc. and Subsidiaries | For the Quarter Ended | As of or Year to Date | Percent | |||||||
Financial Highlights (Unaudited) | June 30, | June 30, | Change | |||||||
(Dollars in thousands, except per share data) | 2022 | 2021 | 2022 | 2021 | YTD | |||||
SUMMARY BALANCE SHEET | ||||||||||
ASSETS | $ | 195,490 | $ | 273,497 | -29% | |||||
Cash, due from banks and overnight funds sold | ||||||||||
Investments | 1,736,328 | 1,542,713 | 13% | |||||||
Loans less allowance for loan loss of $32,846 and $28,425 | 2,575,720 | 2,333,676 | 10% | |||||||
Other assets | 196,275 | 166,894 | 18% | |||||||
Total assets | $ | 4,703,813 | $ | 4,316,780 | 9% | |||||
LIABILITIES | ||||||||||
Deposits: | ||||||||||
Noninterest-bearing deposits | $ | 1,480,751 | $ | 1,311,994 | 13% | |||||
Interest-bearing deposits | 2,667,198 | 2,309,988 | 15% | |||||||
Total deposits | 4,147,949 | 3,621,982 | 15% | |||||||
Borrowings | 237,759 | 182,962 | 30% | |||||||
Other liabilities | 17,347 | 63,420 | -73% | |||||||
Total liabilities | 4,403,055 | 3,868,364 | 14% | |||||||
SHAREHOLDERS' EQUITY | ||||||||||
Preferred stock | 1,782 | 1,802 | -1% | |||||||
Common stock | 393 | 398 | -1% | |||||||
Surplus | 27,043 | 27,043 | 0% | |||||||
Retained earnings | 427,908 | 417,186 | 3% | |||||||
Accumulated other comprehensive (loss) income | (156,368) | 1,987 | NM | |||||||
Total shareholders' equity | 300,758 | 448,416 | -33% | |||||||
Total liabilities and shareholders' equity | $ | 4,703,813 | $ | 4,316,780 | 9% | |||||
EARNINGS PERFORMANCE | ||||||||||
Interest income | $ | 33,914 | $ | 29,200 | $ | 66,313 | $ | 59,138 | 12% | |
Interest expense | 1,382 | 1,123 | 2,551 | 2,279 | 12% | |||||
Net interest income | 32,532 | 28,077 | 63,762 | 56,859 | 12% | |||||
Provision (recovery) for loan losses | 2,940 | (1,277) | 3,434 | (1,818) | 289% | |||||
Noninterest income (loss) | 4,252 | 7,507 | (23,074) | 71,653 | -132% | |||||
Noninterest expense | 23,769 | 22,113 | 47,423 | 43,736 | 8% | |||||
Income (loss) before income taxes | 10,075 | 14,748 | (10,169) | 86,594 | -112% | |||||
Income tax expense (benefit) | 1,603 | 2,992 | (3,261) | 19,048 | -117% | |||||
Net income (loss) | $ | 8,472 | $ | 11,756 | $ | (6,908) | $ | 67,546 | -110% | |
Earnings (loss) per share | $ | 107.06 | $ | 145.98 | $ | (89.04) | $ | 841.81 | ||
Return (loss) on average assets | 0.70% | 1.12% | -0.29% | 3.32% | ||||||
Return (loss) on average equity | 8.87% | 10.62% | -3.61% | 31.87% |
ADDITIONAL DISCLOSURE - ACCOUNTING FOR INVESTMENTS IN MARKETABLE EQUITY SECURITIES
In January 2016, the Financial Accounting Standards Board issued Accounting Standards Update ("ASU") 2016-01: Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities ("ASU 2016-01"). One of the requirements of the ASU is that equity investments must be measured at fair value with changes in fair value recognized in net income. For the quarters ended June 30, 2022 and 2021, unrealized gains (losses) on equity investments of ($3.6) million and ($676) thousand, respectively were included in noninterest income, and ($766) thousand and ($153) thousand, respectively in deferred tax expense (benefit) were included in income tax expense (benefit) related to the change in fair value of equity investments. For the six months ended June 30, 2022 and 2021, unrealized gains (losses) on equity investments of ($37.9) million and $55.9 million, respectively were included in noninterest income, and ($8.0) million and $12.8 million, respectively in deferred tax expense
(benefit) were included in income tax expense (benefit) related to | the change in fair value of equity investments. While the ASU 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 | ||||||
June 30, | June 30, | |||||||
2022 | 2021 | 2022 | 2021 | |||||
Net income (loss) as reported | $ | 8,472 | $ | 11,756 | $ | (6,908) | $ | 67,546 |
Plus (less): impact of ASU 2016-01 | 2,880 | 523 | 29,964 | (43,083) | ||||
Net income excluding the impact of ASU 2016-01 | $ | 11,352 | $ | 12,279 | $ | 23,056 | $ | 24,463 |
Return on average assets excluding the impact of ASU 2016-01 | 0.93% | 1.17% | 0.97% | 1.20% | ||||
Return on average equity excluding the impact of ASU 2016-01 | 13.94% | 11.09% | 12.06% | 11.54% |
ADDITIONAL DISCLOSURE - REPURCHASE OF THE COMPANY'S COMMON AND PREFERRED STOCK
On January 18, 2022, the Company's Board of Directors approved a stock repurchase program that expires on March 31, 2023 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
six-month periods ended June 30, 2022. | For the Quarter Ended | Year to Date | |||||
June 30, | June 30, | ||||||
# Shares | Amount Paid | # Shares | Amount Paid | ||||
Common | 8 | $ | 42 | 837 | $ | 4,638 | |
Series B preferred | - | - | 733 | 12 | |||
Series C preferred | - | - | 1,210 | 19 |
Quarterly Report
General Board of Directors
DREW M. COVERT, Chairman Mount Olive, NC
The Bank's and our Chief Executive Officer and Board Chairman
JULIAN R. AYCOCK
Fremont, NC
President, Marr's, Inc., (farming operations)
WILLIAM H. BRYAN
Mount Olive, NC
Executive Chairperson, Mount Olive Pickle Company, Inc. (manufacturer of pickle and pepper products)
HOPE H. BRYANT
Raleigh, NC
Vice Chairperson, First Citizens BancShares, Inc.; Corporate Sales Executive, First-Citizens Bank & Trust Company
JOEL K. BUTLER Grimesland, NC
Retired; formerly President, Vidant Health Foundation (health care)
MICHAEL L. CHESTNUTT
Clinton, NC
Managing Partner, Black, Chestnutt and Johnson, PA (public accounting)
OLIVIA B. HOLDING
Raleigh, NC
President and Director, Twin States Farming, Inc.;
President and Director, E&F Properties, Inc.
G. ROUSE IVEY
Mount Olive, NC
Self-employed farmer
J. GREY MORGAN Mount Olive, NC
Retired; formerly the Bank's and our Chief Executive Officer and Board Chairperson
JOHN C. PEGRAM, JR.
Chapel Hill, NC
Retired; formerly the Bank's and our Chief Executive Officer and Board Chairman
THOMAS R. SALLENGER
Wilson, NC
Attorney; general partner, Sallenger Law, LLP (law firm)
MALCOLM R. SULLIVAN, JR.
Goldsboro, NC
Chief Executive Officer of Feelgoodz Holdings NC, LLC
Director Emeritus
M.J. McSORLEY
Rocky Mount, NC
Formerly the Bank's and Our Vice Chairman, President,
and Chief Executive Officer
June 2022
Southern Bank
Senior Management Team
DREW M. COVERT
Board Chairman and Chief Executive Officer
L. TAYLOR HARRELL III
President
JERRY C. ALEXANDER
Executive Vice President
Northeast Region
MICHAEL T. BRYANT
Executive Vice President
Legacy Region
EDWARD I. COLTRAIN
Executive Vice President and Chief Operating Officer
W. TRENT DUDLEY
Senior Vice President
Hampton Roads Region
SONDRA F. MCCORQUODALE
Executive Vice President and Chief Digital Officer
VALERIE W. ROBERSON
Senior Vice President and Human Resources Manager
DAVID L. SAULS, JR.
Executive Vice President, Chief Financial Officer,
and Corporate Secretary
W. JASON WAUGHTEL
Senior Vice President
Coastal Region
ROBERT E. WOOD
Executive Vice President and Chief Credit Officer
6 | 7 |
Quarterly Report
Local Boards of Directors
Ahoskie
Dr. Joselito S. Almario, William T. Fretwell, Darlene P. Fritz,
James R. Harrell, Jr., Teresa F. Jenkins, Robert N. Riddick,
Edgar L. Swain, Jr.
Director Emeriti - Howard C. Brown, L. M. Brinkley, Jr.,
Joe Henry Jenkins
Belhaven
Gary L. Respess, William M. Tankard, Charles F. Williams
Director Emeritus - Douglas B. Clark
Duplin County
Gregory Millard Bounds, Marion Dean Brown, Jr.,
Ernest Clegg Grady, Jr., J. Garrett Ludlum, G. Haywood Quinn, Jr., John C. Smith, Jr.
Director Emeriti - Richard Harrell, James McGowan, Dr. Mary Wood
Edenton
Ronald J. Andronowitz, Horace Beasley, Charles A. Britton,
Steve Brown, Franklin S. Edmondson III, A. Travis Ellis
Director Emeritus - Dr. Richard Hines, Jr.
Farmville
John O. Moore, Charles A. Rice, CPA., Dr. Bert B. Warren, Jr.
Gatesville
Dan M. Askew, George M. Miller
Director Emeriti - Charles Sherwood Eason, Robert P. Hollowell, Jr.,
John A. Lane, Jr.
Greenville
Dr. Jim Casey, Dr. Johnathan P. Earp, Dr. Mary Helen Hutchinson
Director Emeritus - Greenville Banks
Hampton Roads
Stephen B. Ballard, Michael E. Barney, Richard A. Beskin,
Richard E. Biemiller, Judy Boone, Lisa F. Chandler, Rev. Harold J. Cobb, Jr., Lydia G. Duke, Lindsey Riddle Elliott, Steve C. Frazier,
John L. Gibson, III, Thomas C. Gifford, Michael Goodove, Robert L. Gutterman, Claus Ihlemann, James J. Izard, II, Thomas G. Johnson, III, Kal Kassir, John Katsias, Michael P. Kellam, Linda S. Laibstain, William A. Lascara, Kirk B. Levy, Gary C. Mah, Charles R. Malbon, Jr., Robert F. Mann, M.D., Paul Michels, Thaddeus J. Nowak, Charles S. Nusbaum, Jeanette L. Ojeda, Chirag Patel, Terry J. Penn, William L. Perkins, II, Donna Phaneuf, Albert H. Poole, Roger L. Porter, John W. Rachels, Louis F. Ryan, Robert L. Schick, Jr., Gary K. Shepherd, W. Kevin Stewart,
Ann K. Sullivan, Anthony M. Thiel, Philip R. Trapani, Jr. Bryan M. Whitehurst, Benjamin J. Willis, III
La Grange
Robert Bland, Henry Edwards, Craig A. Jones, Roger M. Sutton,
G. Lynn Taylor
Lewiston-Woodville
John M. Griffin, Sr., Carl A. Lee, Sr., Joe G. Whitehead, Jr.
Cynthia I. Vaughan
Director Emeritus - Richard N. Hoggard
Mount Olive
James Douglas Best, Carol Gainey Carrere, Ph.D., John T. Davis, Jr., Gregory Eloshway, B. Hain Ficken,Jr., David H. Overman,
Dr. James M. Sasser, Ronald G. Sloan, Dr. Robert K. Talton, Robert E. Williams
June 2022
Murfreesboro
Sylvia F. Anderson, Wayne Brown, Brock E. Felton,
John M. Jenkins, Jr., Ben McLean, Charles L. Revelle, III,
John P. Revelle, Jr., Jayne H. Wolfskill
Director Emeritus - Bynum R. Brown
Outer Banks
Jill G. Bennett, Michael C. Casey, Timothy L. Crank,
Jeffrey B. Dowdy, Paddison P. Hudspeth, Theresa "Tess" Judge, Joy E. Lige, Richard B. Mizelle, Jr.
Director Emeritus - Cashar W. Evans, Jr.
Roanoke Rapids
Mark D. Dickinson, Paul W. Heaton, Jr., Grady W. "Phil" Hux,
Donald R. Lynch
Sampson County
Steven J. Bass, Dr. Jeffrey G. Bell, Ralph C. Carter, Jr.,
Robert A. Fann
Wilson County
Derrick Creech, Milo L. Gibbs, Jr., Elizabeth Howard, John Lee, James A. Miller, Eldon S. Newton, III, Elizabeth "Beth" Searcy, Ralph M. Smith, Jr., Terri Stutts, Charles A. Thomas,
William H. Vaughan, Jr., Sheila Vick
Director Emeriti - Janet P. Barnes, Willie Williams
Windsor
Ricky Ryan Clough, Moses B. Gillam, III, Crystal Godwin, Carla Rascoe
Director Emeriti - Wayne P. Attkisson, James F. Hoggard, III,
Revonne W. Hoggard, John L. Pierce, Jr., William Pittman, Edward E. Rawls, Joseph S. Roberson
8 | 9 |
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Southern BancShares (N.C.) Inc. published this content on 22 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 August 2022 21:50:02 UTC.