The Southern Banc Company, Inc. Announces Fourth Quarter and Full-Year Earnings Release

Annual loan-loss provisions fell, while the fourth quarter required a higher provision than a year earlier.

Rhea-AI Summary

The Southern Banc Company (SRNN) reported fourth-quarter net income of approximately $493,000 for the three months ended June 30, 2026. That compares with $140,000 a year earlier; diluted earnings per share rose to $0.64 from $0.18. Audited fiscal-year net income reached $1.415 million versus $915,000, with diluted earnings per share of $1.85 versus $1.20.

Net interest income before loan-loss provisions rose to $2.869 million for the quarter and $9.890 million for the year. Annual loan-loss provisions fell to $471,000 from $790,000, although quarterly provisions increased. Non-interest income declined in both periods. Annual non-interest expenses rose to $8.042 million from $7.437 million. At June 30, 2026, assets totaled $131.765 million and equity $18.412 million, both above year-earlier levels. Quarterly results are unaudited; the company expects its annual shareholder report in October 2026.

18 points · 0 major

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0 major · 14 points

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Positive

• Moderate pointFiscal-year net income increased to $1.415 million from $915,000 for the year ended June 30, 2025.
• Moderate pointAnnual net interest income before loan-loss provisions increased to $9.890 million from $8.837 million in fiscal 2025.
• Moderate pointAnnual loan-loss provisions decreased to $471,000 from $790,000 in fiscal 2025.
• Moderate pointNet loans increased to $65.358 million at June 30, 2026, from $55.794 million a year earlier.
• Moderate pointAvailable-for-sale securities increased to $43.424 million at June 30, 2026, from $39.327 million a year earlier.
• Moderate pointDeposits increased to $104.341 million at June 30, 2026, from $101.307 million a year earlier.
• Moderate pointStockholders’ equity increased to $18.412 million at June 30, 2026, from $16.718 million a year earlier.

11 minor points

• Minor pointFourth-quarter net income increased to $493,000 from $140,000 for the quarter ended June 30, 2025.
• Minor pointFiscal-year basic/diluted earnings per share rose to $1.86/$1.85 from $1.20/$1.20 in fiscal 2025.
• Minor pointFourth-quarter basic/diluted earnings per share rose to $0.65/$0.64 from $0.18/$0.18 a year earlier.
• Minor pointQuarterly net interest income before loan-loss provisions increased to $2.869 million from $2.270 million a year earlier.
• Minor pointEquity as a share of assets rose to 13.97% at June 30, 2026, from 13.48% a year earlier.
• Minor pointAccumulated other comprehensive losses narrowed to $2.157 million at June 30, 2026, from $2.457 million a year earlier.
• Minor pointQuarterly salaries and benefits decreased to $1.266 million from $1.330 million a year earlier.
• Minor pointQuarterly professional services expense decreased to $164,000 from $207,000 a year earlier.
• Minor pointAnnual professional services expense decreased to $732,000 from $772,000 in fiscal 2025.
• Minor pointQuarterly equipment and occupancy expenses decreased to $87,000 from $90,000 a year earlier.
• Minor pointAnnual equipment and occupancy expenses decreased to $371,000 from $376,000 in fiscal 2025.

Negative

• Moderate pointAnnual salaries and benefits increased to $5.145 million from $4.677 million in fiscal 2025.
• Moderate pointOther liabilities increased to $9.012 million at June 30, 2026, from $6.011 million a year earlier.
• Minor pointQuarterly loan-loss provisions increased to $330,000 from $249,000 a year earlier.
• Minor pointAnnual other operating expense increased to $984,000 from $864,000 in fiscal 2025.
• Minor pointQuarterly other operating expense increased to $262,000 from $198,000 a year earlier.

9 minor points

• Minor pointAnnual data processing expense increased to $808,000 from $748,000 in fiscal 2025.
• Minor pointQuarterly data processing expense increased to $213,000 from $194,000 a year earlier.
• Minor pointAnnual non-interest income decreased to $521,000 from $595,000 in fiscal 2025.
• Minor pointQuarterly non-interest income decreased to $106,000 from $154,000 a year earlier.
• Minor pointQuarterly other interest income decreased to $154,000 from $261,000 a year earlier.
• Minor pointAnnual deposit interest expense increased to $2.751 million from $2.701 million in fiscal 2025.
• Minor pointNet securities-sale losses were $2,000 in both fiscal 2026 and its fourth quarter, versus zero in corresponding 2025 periods.
• Minor pointAnnual income-tax provisions increased to $482,000 from $290,000 in fiscal 2025.
• Minor pointQuarterly income-tax provisions increased to $158,000 from $16,000 a year earlier.

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GADSDEN, Ala., Sept. 30, 2026 (GLOBE NEWSWIRE) -- Gates Little, President and Chief Executive Officer of The Southern Banc Company, Inc. (OTCID: SRNN), the holding company for The Southern Bank Company, announced unaudited fourth quarter and audited full-year results for the fourth quarter and year ended June 30, 2026.

For the three months ended June 30, 2026, the Company reported net income of approximately $493,000, or $0.65 per basic and $0.64 per diluted share compared to net income of approximately $140,000, or $0.18 per basic and diluted share, for the three months ended June 30, 2025. For the fiscal year ended June 30, 2026, the Company recorded net income of approximately $1,415,000, or $1.86 per basic and $1.85 per diluted share, compared to net income of approximately $915,000, or $1.20 per basic and diluted share, for the fiscal year ended June 30, 2025.

For the three months ended June 30, 2026, net interest income increased approximately $599,000, or 26.39% compared to the same period in 2025. The increase in net interest income for the three-month period was primarily attributable to an increase in interest and fees on loans in the amount of approximately $615,000, or 24.78%, and an increase in interest on securities of approximately $86,000, or 41.35%. During the period, interest on deposits decreased approximately $5,000, or 0.73%. For the three months ended June 30, 2026, the Company recorded approximately $330,000 in provision for loan losses, compared to $249,000 for the same period in 2025.

For the fiscal year ended June 30, 2026, net interest income increased approximately $1,052,000, or 11.90% compared to fiscal year 2025. The increase in net interest income for the fiscal year ended June 30, 2026, was primarily attributable to an increase in interest and fees on loans of approximately $642,000 or 6.40%, an increase in interest on securities of approximately $311,000, or 42.20%, and an increase in other interest income of approximately $149,000 or 19.33%, offset in part by an increase in interest on deposits of approximately $50,000, or 1.85% compared to fiscal year 2025. For the fiscal year ended June 30, 2026, the Company recorded approximately $471,000 in provision for loan losses compared to $790,000 in 2025.

For the three months ended June 30, 2026, non-interest income decreased approximately $48,000, or 31.17% compared to the same period in 2025. The decrease in non-interest income was primarily attributable to a decrease in miscellaneous income of approximately $47,000, or 37.90%.

For the fiscal year ended June 30, 2026, non-interest income decreased approximately $74,000, or 12.44% compared to fiscal year 2025. The decrease in non-interest income was primarily attributable to a decrease in miscellaneous income of approximately $65,000, or 13.86%, and a decrease in customer service fees of approximately $9,000, or 7.14%.

For the three months ended June 30, 2026, total non-interest expense decreased approximately $25,000, or 1.24%, compared to the same three-month period in 2025. The decrease in non-interest expense for the three-month period was primarily attributable to decreases in salaries and benefits of approximately $64,000, or 4.81%, professional services of approximately $43,000, or 20.77%, office occupancy expenses of approximately $3,000, or 3.33%, offset in part by increases in data processing expense of approximately $19,000, or 9.79% and other operating expense of approximately $64,000, or 32.32%.

For the fiscal year ending June 30, 2026, total non-interest expense increased approximately $605,000, or 8.14%, compared to fiscal year 2025. The increase in total non-interest expense for the fiscal year was primarily attributable to increases in salary and benefit expense of approximately $468,000, or 10.01%, data processing expense of approximately $60,000, or 8.02%, other operating expense of approximately $120,000, or 13.89%, offset in part by a decrease in professional services expense of approximately $40,000, or 5.18% and office occupancy expense of approximately $5,000, or 1.33%.

The Company’s total assets on June 30, 2026, were approximately $131.8 million compared to $124.0 million on June 30, 2025. Total stockholders’ equity was approximately $18.4 million, or 13.97% of assets and $16.7 million, or 13.48% of assets on June 30, 2026 and 2025, respectively. The Company’s capital position remained strong at June 30, 2026. The increase in stockholders’ equity was primarily attributable to fiscal year net income in addition to a decrease in the accumulated comprehensive losses due an improvement in the bond market.

The improvement in earnings for both the fourth quarter and fiscal year 2026 were primarily driven by higher net interest income, the result of growth in both loans receivable and securities available for sale. For the fiscal year, the Company also benefited from lower provision for loan losses, partially offset by higher salaries and employee benefits, data processing expense, and other operating expense.

The fiscal year end 2026 results include audited financial information, while the specific results for the fourth quarter of fiscal year 2026 are unaudited. The unaudited financial information for the three months ended June 30, 2026, has been prepared on the same basis as our audited financial information and includes, in the opinion of management, all adjustments necessary to present the data for such periods. The Company expects to release its full fiscal year-end 2026 financial information, including the Annual Report to Shareholders in October of 2026. Historical results are not necessarily indicative of future results. The Bank has four full-service banking offices located in Gadsden, Albertville, Guntersville, and Centre, AL, and one loan production office in Birmingham, AL. The stock of The Southern Banc Company, Inc. is listed on the OTC Basic 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. CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Dollar Amounts in Thousands)
		June 30,				June 30,
		2026				2025
		(Audited)				(Audited)
ASSETS
CASH AND CASH EQUIVALENTS	$	19,184			$	25,208
SECURITIES AVAILABLE FOR SALE, at fair value		43,424				39,327
FEDERAL HOME LOAN BANK (FHLB) STOCK		133				125
LOANS RECEIVABLE, net of allowance for loan losses of $1,715 and $1,839, respectively		65,358				55,794
PREMISES AND EQUIPMENT, net		1,148				1,007
ACCRUED INTEREST AND DIVIDENDS RECEIVABLE		1,105				869
PREPAID EXPENSES AND OTHER ASSETS		1,413				1,706
TOTAL ASSETS	$	131,765			$	124,036
LIABILITIES
DEPOSITS	$	104,341			$	101,307
FHLB ADVANCES AND OTHER BORROWED MONEY		0				0
OTHER LIABILITIES		9,012				6,011
TOTAL LIABILITIES		113,353				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, 806,086 shares outstanding		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		16,215				14,799
Treasury stock, at cost, 648,664 shares		(8,825	)			(8,825	)
Accumulated other comprehensive income / (loss)		(2,157	)			(2,457	)
TOTAL STOCKHOLDERS’ EQUITY		18,412				16,718
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	131,765			$	124,036

                        

THE SOUTHERN BANC COMPANY, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Dollar Amounts in Thousands, except per share data)
		Three Months Ended						Year Ended
		June 30,						June 30,
		2026 (Unaudited)			2025 (Unaudited)			2026 (Audited)		2025 (Audited)
INTEREST INCOME:
Interest and fees on loans	$	3,097		$	2,482		$	10,672	$	10,030
Interest and dividends on securities		294			208			1,048		737
Other interest income		154			261			920		771
Total interest income		3,545			2,951			12,640		11,538
INTEREST EXPENSE:
Interest on deposits		676			681			2,751		2,701
Interest on borrowings		0			0			0		0
Total interest expense		676			681			2,751		2,701
Net interest income before provision for loan losses		2,869			2,270			9,890		8,837
Provision for loan losses		330			249			471		790
Net interest income after provision for loan losses		2,539			2,021			9,419		8,047
NON-INTEREST INCOME:
Fees and other non-interest income		29			30			117		126
Miscellaneous income		77			124			404		469
Total non-interest income		106			154			521		595
NON-INTEREST EXPENSE:
Salaries and employee benefits		1,266			1,330			5,145		4,677
Equipment and Occupancy expenses		87			90			371		376
Professional Services Expense		164			207			732		772
Data Processing Expense		213			194			808		748
Loss on sale of securities, net		2			0			2		0
Other operating expense		262			198			984		864
Total non-interest expense		1,994			2,019			8,042		7,437
Income before income taxes		651			156			1,897		1,205
PROVISION FOR INCOME TAXES		158			16			482		290
Net Income	$	493		$	140		$	1,415	$	915
EARNINGS PER SHARE:
Basic	$	0.65		$	0.18		$	1.86	$	1.20
Diluted	$	0.64		$	0.18		$	1.85	$	1.20
DIVIDENDS DECLARED PER SHARE	$	---		$	---		$	---	$	---
AVERAGE SHARES OUTSTANDING:
Basic		760,175			762,005			760,752		760,322
Diluted		764,709			765,124			764,813		763,237

Contact: Gates Little
(256) 543-3860

FAQ

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What were Southern Banc Company’s fourth-quarter fiscal 2026 earnings?

Southern Banc Company earned $493,000 in the three months ended June 30, 2026, versus $140,000 a year earlier. Basic earnings per share increased to $0.65 from $0.18, while diluted earnings per share increased to $0.64 from $0.18. The quarterly results are unaudited.

What were Southern Banc Company’s full-year fiscal 2026 earnings?

Southern Banc Company reported audited fiscal-year net income of $1.415 million for the year ended June 30, 2026, compared with $915,000 in fiscal 2025. Basic earnings per share rose to $1.86 from $1.20, and diluted earnings per share rose to $1.85 from $1.20.

How did Southern Banc Company’s cash and borrowings change at June 30, 2026?

Cash and cash equivalents were $19.184 million at June 30, 2026, versus $25.208 million a year earlier; FHLB advances and other borrowed money were zero at both dates. Available-for-sale securities increased to $43.424 million from $39.327 million, and net loans increased to $65.358 million from $55.794 million.