The Southern Banc Company, Inc. Announces Third Quarter Earnings

Rhea-AI Summary

The Southern Banc Company (OTC: SRNN) reported net income of approximately $363,000 ($0.48 per share) for the quarter ended March 31, 2026, up from $230,000 ($0.30) a year earlier.

For the nine months, net income was $922,000 ($1.21 per share) versus $775,000. Net interest income, assets and stockholders’ equity all increased, while non-interest expenses also rose.

Positive

• Quarterly net income rose to $363,000 from $230,000 year over year
• Nine‑month net income increased to $922,000 from $775,000
• Quarterly net interest income grew 9.05% to $2.4 million
• Provision for loan and lease losses cut to $57,000 from $99,000 in the quarter
• Total assets increased to $127.6 million from $124.0 million since June 30, 2025
• Stockholders’ equity rose to $18.1 million, or 14.15% of total assets

Negative

• Quarterly non‑interest income declined 7.6% to $127,000
• Nine‑month non‑interest income fell 5.88% to $415,000
• Nine‑month non‑interest expense increased 11.63% to $6.0 million
• Nine‑month salaries and benefits rose by about $518,000
• Quarterly non‑interest expense increased about 2.74% to $2.0 million

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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 

FAQ

What were Southern Banc (SRNN) earnings for the quarter ended March 31, 2026?

Southern Banc reported net income of about $363,000, or $0.48 per share, for the quarter. According to the company, this compares with $230,000, or $0.30 per share, for the same period in 2025.

How did Southern Banc (SRNN) perform over the nine months ended March 31, 2026?

Southern Banc recorded nine‑month net income of about $922,000, or $1.21 per share. According to the company, this was up from $775,000, or $1.02 basic and $1.01 diluted per share, in the prior‑year period.

What happened to net interest income for Southern Banc (SRNN) in Q3 2026?

Net interest income before loan loss provision was about $2.4 million, up roughly $200,000 year over year. According to the company, this reflected higher total interest income and slightly lower interest expense on deposits.

Did Southern Banc (SRNN) increase its non-interest expenses in the latest quarter?

Yes. Total non‑interest expense rose to about $2.0 million for the quarter. According to the company, higher salaries, benefits and data processing costs more than offset reductions in professional services and occupancy expenses.

What are Southern Banc (SRNN) total assets and equity as of March 31, 2026?

Southern Banc reported total assets of approximately $127.6 million at March 31, 2026. According to the company, stockholders’ equity was about $18.1 million, representing 14.15% of total assets at that date.

Did Southern Banc (SRNN) declare any dividends for the period ended March 31, 2026?

No cash dividends were declared per share for the reported periods. According to the company’s selected financial data, the line for dividends declared per share is shown as “---” for all periods presented.

How did Southern Banc (SRNN) provisions for loan losses change in 2026?

The quarterly loan loss provision was about $57,000, down from $99,000 a year earlier. According to the company, nine‑month provisions also fell, to $141,000 from $541,000 in the comparable 2025 period.