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 AuditedASSETS 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 $2,474Interest and dividends on securities 239 166Other interest income 272 155Total interest income 2,942 2,795 INTEREST EXPENSE: Interest on deposits 687 645Interest on borrowings - -Total interest expense 687 645Net interest income before provision 2,255 2,150for loan losses Provision for loan losses 76 373Net interest income after provision 2,179 1,777for loan losses NON-INTEREST INCOME: Fees and other non-interest income 30 35Net gain on sale of securities - -Miscellaneous income 117 113Total non-interest income 147 148 NON-INTEREST EXPENSE: Salaries and employee benefits 1,337 1,025Office building and equipment expenses 98 94Professional Services Expense 211 201Data Processing Expense 196 182Other operating expense 229 185Total non-interest expense 2,071 1,687Income before income tax expense 255 238INCOME TAX EXPENSE 67 62Net Income$188 $176 INCOME PER SHARE: Basic$0.25 $0.23Diluted 0.25 0.23DIVIDENDS DECLARED PER SHARE$- $- AVERAGE SHARES OUTSTANDING: Basic 762,005 759,632Diluted 765,285 765,236

Contact: Gates Little
(256) 543-3860