The Southern Banc Company, Inc. Announces First Quarter Earnings

GADSDEN, Ala., Nov. 06, 2025 (GLOBE NEWSWIRE) -- The Southern Banc Company, Inc. (OTCBB: SRNN), the holding company for The Southern Bank Company, formerly First Federal Savings and Loan Association of Gadsden, Alabama, announced a net income of approximately $188,000, or $0.25 per basic and diluted share, for the quarter ended September 30, 2025, as compared to a net income of approximately $176,000, or $0.23 per basic and diluted share, for the quarter ended September 30, 2024.

Gates Little, President and Chief Executive Officer of the Company stated that the Company’s net interest income increased approximately $105,000 or 4.88% during the quarter as compared to the same period in 2024. For the three months ending September 30, 2025, total interest income increased by approximately $147,000 or 5.24% as compared to the same period in 2024. Total interest expense increased approximately $42,000 or 6.44% for the three-months ended September 30, 2025, as compared to the same period in 2024. During the three months ending September 30, 2025, provisions for credit losses were approximately $76,000 as compared to approximately $373,000 for the three-months ended September 30, 2024. For the quarter ending September 30, 2025, total non-interest income decreased approximately by $1,000 or (0.77%), while total non-interest expense increased approximately by $384,000 or 22.77% as compared to the same three-month period in 2024. The decrease in non-interest income was primarily attributable to a decrease in customer service fees of approximately $5,000 or (15.92%) offset in part by an increase in miscellaneous fees of approximately $4,000 or 3.93%. The increase in non-interest expense was primarily attributable to increases in salaries and benefits of approximately $312,000 or 30.47% largely related to an increase in staff; occupancy expenses of approximately $4,000 or 4.59%, professional service expenses of approximately $10,000 or 5.13%, and data processing expenses of approximately $14,000 or 7.75%.

The Company’s total assets at September 30, 2025 were $127.2 million, as compared to $124.0 million at June 30, 2025. Total stockholders’ equity was approximately $17.2 million at September 30, 2025, or 13.51% of total assets, as compared to approximately $16.7 million at June 30, 2025, or approximately 13.48% of total assets.

The Bank has four offices located in Gadsden, Albertville, Guntersville, and Centre, Alabama and a loan production office located in Birmingham, AL. The 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 on following pages)

THE SOUTHERN BANC COMPANY, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Dollar Amounts in Thousands)
		September 30,			June 30,
		2025			2025
		Unaudited			Audited
ASSETS
CASH AND CASH EQUIVALENTS	$	25,599		$	25,208
SECURITIES AVAILABLE FOR SALE, at fair value		43,354			39,327
FEDERAL HOME LOAN BANK STOCK		125			125
LOANS RECEIVABLE, net of allowance for loan losses of $1,136 and $1,839		54,655			55,794
PREMISES AND EQUIPMENT, net		983			1,007
ACCRUED INTEREST AND DIVIDENDS RECEIVABLE		918			869
PREPAID EXPENSES AND OTHER ASSETS		1,538			1,706

TOTAL ASSETS	$	127,172		$	124,036

LIABILITIES
DEPOSITS	$	103,135		$	101,307
OTHER LIABILITIES		6,862			6,011
TOTAL LIABILITIES		109,997			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		13,949			13,948
Shares held in trust, 44,081 at cost		(762	)		(762	)
Retained earnings		14,988			14,799
Treasury stock, at cost, 648,664 shares		(8,825	)		(8,825	)
Accumulated other comprehensive (loss) income		(2,190	)		(2,457	)
TOTAL STOCKHOLDERS’ EQUITY		17,175			16,718
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	127,172		$	124,036

THE SOUTHERN BANC COMPANY, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Dollar Amounts in Thousands, except per share data)
		Three Months Ended
		September 30,
		2025		2024
		(Unaudited)		(Unaudited)
INTEREST INCOME:
Interest and fees on loans	$	2,431	$	2,474
Interest and dividends on securities		239		166
Other interest income		272		155
Total interest income		2,942		2,795

INTEREST EXPENSE:
Interest on deposits		687		645
Interest on borrowings		-		-
Total interest expense		687		645
Net interest income before provision		2,255		2,150
for loan losses
Provision for loan losses		76		373
Net interest income after provision		2,179		1,777
for loan losses

NON-INTEREST INCOME:
Fees and other non-interest income		30		35
Net gain on sale of securities		-		-
Miscellaneous income		117		113
Total non-interest income		147		148

NON-INTEREST EXPENSE:
Salaries and employee benefits		1,337		1,025
Office building and equipment expenses		98		94
Professional Services Expense		211		201
Data Processing Expense		196		182
Other operating expense		229		185
Total non-interest expense		2,071		1,687
Income before income tax expense		255		238
INCOME TAX EXPENSE		67		62
Net Income	$	188	$	176

INCOME PER SHARE:
Basic	$	0.25	$	0.23
Diluted		0.25		0.23
DIVIDENDS DECLARED PER SHARE	$	-	$	-

AVERAGE SHARES OUTSTANDING:
Basic		762,005		759,632
Diluted		765,285		765,236

Contact: Gates Little
(256) 543-3860

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