OTCPK:SBNC

Stock Analysis Report

Southern BancShares (N.C.)

Executive Summary

Southern BancShares (N.C.), Inc., through its subsidiary Southern Bank and Trust Company, provides commercial banking services to consumers and businesses in North Carolina and Virginia.


Snowflake Analysis

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

How has Southern BancShares (N.C.)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SBNC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.6%

SBNC

-0.1%

US Banks

1.7%

US Market


1 Year Return

12.3%

SBNC

15.5%

US Banks

23.6%

US Market

Return vs Industry: SBNC underperformed the US Banks industry which returned 21.7% over the past year.

Return vs Market: SBNC underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

SBNCIndustryMarket
7 Day0.6%-0.1%1.7%
30 Day1.3%-1.6%3.5%
90 Day2.5%7.4%11.7%
1 Year12.6%12.3%18.9%15.5%26.2%23.6%
3 Year85.4%84.5%34.6%25.1%53.2%43.3%
5 Year132.9%131.3%86.0%65.1%75.5%56.1%

Price Volatility Vs. Market

How volatile is Southern BancShares (N.C.)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Southern BancShares (N.C.) undervalued compared to its fair value and its price relative to the market?

36.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SBNC ($3850) is trading below our estimate of fair value ($6243.56)

Significantly Below Fair Value: SBNC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SBNC is good value based on its PE Ratio (8.1x) compared to the Banks industry average (12.8x).

PE vs Market: SBNC is good value based on its PE Ratio (8.1x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SBNC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SBNC is good value based on its PB Ratio (1x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Southern BancShares (N.C.) forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

2.5%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Southern BancShares (N.C.) has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

  • Examine whether Southern BancShares (N.C.) is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Southern BancShares (N.C.)'s filings and announcements here.
  • Explore growth companies in the Banks industry.

Past Performance

How has Southern BancShares (N.C.) performed over the past 5 years?

41.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SBNC has high quality earnings.

Growing Profit Margin: SBNC's current net profit margins (30.3%) are lower than last year (34.3%).


Past Earnings Growth Analysis

Earnings Trend: SBNC's earnings have grown significantly by 40.3% per year over the past 5 years.

Accelerating Growth: SBNC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SBNC had negative earnings growth (-5.6%) over the past year, making it difficult to compare to the Banks industry average (27.1%).


Return on Equity

High ROE: SBNC's Return on Equity (12.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Southern BancShares (N.C.)'s financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: SBNC has a low level of unsold assets or inventory.

Debt Coverage by Assets: SBNC's debt is covered by short term assets (assets are 3.1x debt).


Financial Institutions Analysis

Asset Level: SBNC's level of assets compared to its equity is low.

Allowance for Bad Loans: SBNC has a sufficient allowance for bad loans.

Low Risk Liabilities: SBNC's liabilities are made up of primarily low risk sources of funding.

Loan Level: SBNC has an acceptable proportion of non-loan assets held.

Low Risk Deposits: SBNC's loans are broadly funded by customer deposits.

Level of Bad Loans: SBNC has an appropriate level of bad loans (1.16%)


Next Steps

Dividend

What is Southern BancShares (N.C.)'s current dividend yield, its reliability and sustainability?

0.13%

Current Dividend Yield


Dividend Yield vs Market

company0.1%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: SBNC's dividend (0.13%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: SBNC's dividend (0.13%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: SBNC is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: SBNC is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: SBNC is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SBNC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Southern BancShares (N.C.)'s salary, the management and board of directors tenure and is there insider trading?

2.0yrs

Average management tenure


CEO

J. Morgan (66yo)

11yrs

Tenure

0

Mr. J. Grey Morgan has been the Chairman and Chief Executive Officer at Southern Bank and Trust Company since October 21, 2009 and has been its Director since 2009. Mr. Morgan has been the Chairman and Chi ...


Management Age and Tenure

2.0yrs

Average Tenure

55yo

Average Age

Experienced Management: SBNC's management team is considered experienced (2 years average tenure).


Board Age and Tenure

9.5yrs

Average Tenure

63yo

Average Age

Experienced Board: SBNC's board of directors are considered experienced (9.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.4%.


Management Team

  • Dan Ellis (63yo)

    Executive VP

    • Drew Covert (51yo)

      President & Director

      • Tenure: 6yrs
    • J. Morgan (66yo)

      Chairman & CEO

      • Tenure: 11yrs
    • Michael Bryant (55yo)

      Executive Vice President of West Region

      • Tenure: 2yrs
    • Jerry Alexander (59yo)

      Executive Vice President of Northeast Region

      • Tenure: 2yrs
    • L. Harrell (49yo)

      Executive Vice President of Hampton Roads Region

      • Tenure: 2yrs
    • Judy Lynn

      Executive VP & Chief Credit Officer

      • Tenure: 1yrs
    • Edward Coltrain (42yo)

      Executive VP & COO

      • Sondra McCorquodale

        Executive VP & Chief Digital Officer

        • Tenure: 1yrs
      • W. Waughtel

        Senior Vice President of Coastal Region

        • Tenure: 0.9yrs

      Board Members

      • Hope Bryant (56yo)

        Director

        • Tenure: 28yrs
        • Compensation: US$19.65k
      • John Pegram (74yo)

        Director

        • Tenure: 23yrs
        • Compensation: US$67.53k
      • M. McSorley (85yo)

        Director Emeritus

        • Tenure: 1yrs
        • Compensation: US$25.53k
      • Bill Bryan (61yo)

        Director

        • Tenure: 28yrs
        • Compensation: US$26.20k
      • Drew Covert (51yo)

        President & Director

        • Tenure: 6yrs
      • J. Morgan (66yo)

        Chairman & CEO

        • Tenure: 11yrs
      • Michael Chestnutt (50yo)

        Director

        • Tenure: 8yrs
        • Compensation: US$26.73k
      • G. Ivey (63yo)

        Director

        • Tenure: 12.3yrs
        • Compensation: US$26.88k
      • Julian Aycock (66yo)

        Director

        • Tenure: 7yrs
        • Compensation: US$19.65k
      • Tom Sallenger (63yo)

        Director

        • Tenure: 7yrs
        • Compensation: US$16.21k

      Company Information

      Southern BancShares (N.C.), Inc.'s company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: Southern BancShares (N.C.), Inc.
      • Ticker: SBNC
      • Exchange: OTCPK
      • Founded: 1901
      • Industry: Regional Banks
      • Sector: Banks
      • Market Cap: US$313.953m
      • Shares outstanding: 81.02k
      • Website: https://www.southernbank.com

      Location

      • Southern BancShares (N.C.), Inc.
      • 116 East Main Street
      • Mount Olive
      • North Carolina
      • 28365
      • United States

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      SBNCOTCPK (Pink Sheets LLC)YesCommon StockUSUSDFeb 2004

      Biography

      Southern BancShares (N.C.), Inc., through its subsidiary Southern Bank and Trust Company, provides commercial banking services to consumers and businesses in North Carolina and Virginia. It provides checking, savings, and individual retirement accounts, as well as certificates of deposit; personal loans, which include cash reserve, vehicle leasing, home equity line, credit card, and automotive loan products; mortgage loans; and business loans, such as business leasing, reserve plus, merchant accounts, and business credit cards, as well as construction, commercial, and agriculture loan products. The company also offers online and mobile banking services, night deposit services, cashier’s checks, investment and brokerage services, ATM/Visa check cards, cell phone protection services, wire transfers, and safe deposit boxes. It operates through a network of 52 banking offices and 3 loan production offices in eastern North Carolina; and 10 banking offices in southeastern Virginia. Southern BancShares (N.C.), Inc. was founded in 1901 and is headquartered in Mount Olive, North Carolina. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/19 23:54
      End of Day Share Price2020/01/17 00:00
      Earnings2019/06/30
      Annual Earnings2018/12/31


      Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.