GADSDEN, Ala., May 14, 2026 (GLOBE NEWSWIRE) -- The Southern Banc Company, Inc. (OTCBB: SRNN), the holding company for The Southern Bank Company (the "Bank"), announced net income of approximately $363,000, or $0.48 per basic and diluted share, for the quarter ended March 31, 2026, as compared to net income of approximately $230,000, or $0.30 per basic and diluted share, for the quarter ended March 31, 2025. The Company announced that for the nine-month period ended March 31, 2026, the Company recorded net income of approximately $922,000, or $1.21 per basic and diluted share, as compared to net income of approximately $775,000, or $1.02 per basic and $1.01 per diluted share, for the nine-month period ended March 31, 2025. The Company's fiscal year ends June 30, 2026.
Gates Little, President and Chief Executive Officer of the Company stated that the Company's net interest income increased approximately $200,000, or 9.05%, during the quarter as compared to the same period in 2025. The increase in the net interest income before provision for credit losses for the quarter was primarily attributable to an increase in total interest income of approximately $185,000 and a decrease in total interest expense of approximately $15,000. For the three-month period ending March 31, 2026, the Company recorded a provision for loan and lease losses in the amount of approximately $57,000 as compared to $99,000 for the three-month period ending March 31, 2025. For the quarter ending March 31, 2026, total non-interest income decreased approximately $10,000, or (7.60%), while total non-interest expense increased approximately $53,000, or 2.74%, as compared to the same three-month period in 2025. The decrease in non-interest income was primarily attributable to a decrease in miscellaneous income of approximately $11,000. The increase in non-interest expenses was primarily attributable to increases in salaries and benefits of approximately $55,000 and data processing expenses of approximately $14,000, offset in part by a decrease in professional service expenses of approximately $17,000 and occupancy expenses of approximately $11,000.
For the nine months ending March 31, 2026, net interest income increased approximately $453,000, or 6.91%, as compared to the same period in 2025. The increase in the net interest income before provision for credit losses for the quarter was primarily attributable to an increase in total interest income of approximately $508,000 and an increase in total interest expense of approximately $55,000. For the nine-month period ending March 31, 2026, the Company recorded a provision for loan and lease losses in the amount of approximately $141,000 as compared to $541,000 for the nine-month period ending March 31, 2025. For the nine-months ending March 31, 2026, total non-interest income decreased approximately $25,000, or (5.88%), while total non-interest expense increased approximately $631,000, or 11.63%, as compared to the same period in 2025. The decrease in non-interest income was primarily attributable to decreases in miscellaneous income of approximately $16,000 and customer service fees of approximately $9,000. The increase in non-interest expense was primarily attributable to increases in salaries and benefits of approximately $518,000, data processing expenses of approximately $40,000 and professional fees of approximately $2,000, offset in part by a decrease in occupancy expense of approximately $1,000.
The Company's total assets on March 31, 2026, were approximately $127.6 million, as compared to $124.0 million at June 30, 2025. Total stockholders' equity was approximately $18.1 million on March 31, 2026, or 14.15% of total assets as compared to approximately $16.7 million on June 30, 2025, or approximately 13.48% of total assets.
The Bank has four full-service banking offices located in Gadsden, Albertville, Guntersville, and Centre, AL, and one loan production office in Birmingham, AL that conducts factoring activities. Common stock of The Southern Banc Company, Inc. trades in the over-the-counter market under the symbol "SRNN".
Certain statements in this release contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, which statements can generally be identified by the use of forward-looking terminology, such as "may," "will," "expect," "estimate," "anticipate," "believe," "target," "plan," "project," "continue," or the negatives thereof, or other variations thereon or similar terminology, and are made on the basis of management's plans and current analyses of the Company, its business and the industry as a whole. These forward-looking statements are subject to risks and uncertainties, including, but not limited to, economic conditions, competition, interest rate sensitivity and exposure to regulatory and legislative changes. The above factors, in some cases, have affected, and in the future could affect the Company's financial performance and could cause actual results to differ materially from those expressed or implied in such forward-looking statements, even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.
(Selected financial data attached)
| THE SOUTHERN BANC COMPANY, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Dollar Amounts in Thousands) | |||||||
| March 31, | June 30, | ||||||
| 2026 | 2025 | ||||||
| Unaudited | Audited | ||||||
| ASSETS | |||||||
| CASH AND CASH EQUIVALENTS | - | 24,074 | - | 25,208 | |||
| SECURITIES AVAILABLE FOR SALE, at fair value | 44,046 | 39,327 | |||||
| FEDERAL HOME LOAN BANK STOCK | 133 | 125 | |||||
| LOANS RECEIVABLE, net of allowance for loan losses | |||||||
| of $1,323 and $1,839, respectively | 55,957 | 55,794 | |||||
| PREMISES AND EQUIPMENT, net | 926 | 1,007 | |||||
| ACCRUED INTEREST AND DIVIDENDS RECEIVABLE | 934 | 869 | |||||
| PREPAID EXPENSES AND OTHER ASSETS | 1,489 | 1,706 | |||||
| TOTAL ASSETS | - | 127,559 | - | 124,036 | |||
| LIABILITIES | |||||||
| DEPOSITS | - | 101,966 | - | 101,307 | |||
| FHLB ADVANCES | 0 | 0 | |||||
| OTHER LIABILITIES | 7,542 | 6,011 | |||||
| TOTAL LIABILITIES | 109,508 | 107,318 | |||||
| STOCKHOLDERS' EQUITY: | |||||||
| Preferred stock, par value $.01 per share | |||||||
| 500,000 shares authorized; no shares issued | |||||||
| and outstanding | - | - | |||||
| Common stock, par value $.01 per share, | |||||||
| 3,500,000 authorized, 1,454,750 shares issued | 15 | 15 | |||||
| Additional paid-in capital | 13,951 | 13,948 | |||||
| Shares held in trust, 45,911 and 44,081 shares at cost, | |||||||
| respectively | (787 | - | (762 | - | |||
| Retained earnings | 15,721 | 14,799 | |||||
| Treasury stock, at cost, 648,664 shares | (8,825 | - | (8,825 | - | |||
| Accumulated other comprehensive (loss) | (2,024 | - | (2,457 | - | |||
| TOTAL STOCKHOLDERS' EQUITY | 18,051 | 16,718 | |||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | - | 127,559 | - | 124,036 | |||
| THE SOUTHERN BANC COMPANY, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Dollar Amounts in Thousands, except per share data) | ||||||||||
| Three Months Ended | Nine Months Ended | |||||||||
| March 31, | March 31, | |||||||||
| 2026 (Unaudited) | 2025 | 2026 (Unaudited) | 2025 | |||||||
| INTEREST INCOME: | ||||||||||
| Interest and fees on loans | - | 2,586 | - | 2,476 | - | 7,575 | - | 7,548 | ||
| Interest and dividends on securities | 266 | 200 | 769 | 545 | ||||||
| Other interest income | 222 | 213 | 751 | 494 | ||||||
| Total interest income | 3,074 | 2,889 | 9,095 | 8,587 | ||||||
| INTEREST EXPENSE: | ||||||||||
| Interest on deposits | 670 | 685 | 2,075 | 2,020 | ||||||
| Interest on borrowings | 0 | 0 | 0 | 0 | ||||||
| Total interest expense | 670 | 685 | 2,075 | 2,020 | ||||||
| Net interest income before provision for loan losses | 2,404 | 2,204 | 7,021 | 6,567 | ||||||
| Provision for loan losses | 57 | 99 | 141 | 541 | ||||||
| Net interest income after provision for loan losses | 2,347 | 2,105 | 6,880 | 6,026 | ||||||
| NON-INTEREST INCOME: | ||||||||||
| Fees and other non-interest income | 31 | 30 | 87 | 96 | ||||||
| Net gain on sale of securities | 0 | 0 | 0 | 0 | ||||||
| Miscellaneous income | 96 | 107 | 328 | 344 | ||||||
| Total non-interest income | 127 | 137 | 415 | 440 | ||||||
| NON-INTEREST EXPENSE: | ||||||||||
| Salaries and employee benefits | 1,294 | 1,239 | 3,920 | 3,402 | ||||||
| Office building and equipment expenses | 90 | 101 | 284 | 285 | ||||||
| Professional Services Expense | 178 | 195 | 567 | 565 | ||||||
| Data Processing Expense | 199 | 185 | 595 | 555 | ||||||
| Net loss on sale of securities | 0 | 0 | 0 | 0 | ||||||
| Other operating expense | 223 | 211 | 682 | 610 | ||||||
| Total non-interest expense | 1,984 | 1,931 | 6,048 | 5,417 | ||||||
| Income before income taxes | 490 | 311 | 1,247 | 1,049 | ||||||
| PROVISION FOR INCOME TAXES | 127 | 81 | 325 | 274 | ||||||
| Net Income | - | 363 | - | 230 | - | 922 | - | 775 | ||
| EARNINGS PER SHARE: | ||||||||||
| Basic | - | 0.48 | - | 0.30 | - | 1.21 | - | 1.02 | ||
| Diluted | - | 0.48 | - | 0.30 | - | 1.21 | - | 1.01 | ||
| DIVIDENDS DECLARED PER SHARE | - | --- | - | --- | - | --- | - | --- | ||
| AVERAGE SHARES OUTSTANDING: | ||||||||||
| Basic | 760,175 | 763,918 | 760,934 | 761,050 | ||||||
| Diluted | 763,188 | 768,309 | 763,763 | 766,710 | ||||||
Contact: Gates Little
(256) 543-3860
