The Southern Banc Company, Inc. Announces First Quarter Earnings

Rhea-AI Summary

The Southern Banc Company (OTC: SRNN) reported net income of $188,000 or $0.25 per share for the quarter ended September 30, 2025, versus $176,000 ($0.23) a year earlier. Net interest income rose by $105,000 (4.88%); total interest income increased by $147,000 (5.24%) while interest expense rose by $42,000 (6.44%). Provision for credit losses fell to $76,000 from $373,000 a year ago. Total non-interest expense increased by $384,000 (22.77%), driven by salaries and benefits up $312,000 (30.47%). Total assets were $127.2 million and stockholders' equity was $17.2 million (13.51% of assets) at September 30, 2025.

Positive

• Provision for credit losses down $297,000 year-over-year
• Securities available for sale increased by $4.03M (10.2%)

Negative

• Total non-interest expense up $384,000 (22.77%)
• Salaries and benefits increased by $312,000 (30.47%)
• Allowance for loan losses decreased by $703,000 (38.2%)

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

FAQ

What were The Southern Banc Company (SRNN) net income and EPS for Q3 2025?

Net income was $188,000, or $0.25 per share, for the quarter ended September 30, 2025.

How did SRNN's provision for credit losses change in Q3 2025 versus Q3 2024?

Provision for credit losses declined to $76,000 in Q3 2025 from $373,000 in Q3 2024.

What drove the rise in SRNN's non-interest expense in Q3 2025?

Non-interest expense rose by $384,000 (22.77%), mainly from salaries and benefits increasing $312,000 (30.47%).

What were SRNN's total assets and equity at September 30, 2025?

Total assets were $127.2 million and total stockholders' equity was $17.2 million (13.51% of assets).

Did SRNN's net interest income change in Q3 2025?

Yes. Net interest income increased by approximately $105,000 (4.88%) versus Q3 2024.

Is SRNN paying dividends for the quarter ended September 30, 2025?

No dividend was declared for the quarter ended September 30, 2025.