The Southern Banc Company, Inc. Announces Second Quarter Earnings

GADSDEN, Ala., Feb. 11, 2026 (GLOBE NEWSWIRE) — The Southern Banc Company, Inc. (OTC:SRNN), the holding company for The Southern Bank Company, formerly First Federal Savings and Loan Association of Gadsden, Alabama, announced net income of approximately $371,000, or $0.49 per basic and diluted share, for the three months ended December 31, 2025, as compared to net income of approximately $369,000, or $0.49 per basic share and $0.48 per diluted share, for the three months ended December 31, 2024. For the six months ending December 31, 2025, the Company recorded net income of approximately $559,000, or $0.73 per basic and diluted share, as compared to net income of approximately $545,000, or $0.72 per basic share and $0.71 per diluted share, for the six months ending December 31, 2024. 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 before provision for loan losses totaled approximately $2.4 million during the three months ended December 31, 2025, as compared to approximately $2.2 million in the same period in 2024, an increase of approximately $150,000, or 6.74%. The increase in the net interest income before provision for loan losses for the three months ended December 31, 2025, was primarily attributable to an increase in total interest income of approximately $177,000, offset by an increase in total interest expense of approximately $27,000. In the three months ending December 31, 2025, the Bank recorded a provision for loan losses of approximately $8,000 compared to the $69,000 provision for loan losses during the three months ending December 31, 2024. For the three months ending December 31, 2025, total non-interest income decreased approximately $14,000, or (9.24%), while total non-interest expense increased approximately $193,000, or 10.73%, as compared to the same three-month period in 2024. The decrease in non-interest income was primarily attributable to a decrease in miscellaneous income of approximately $10,000. The increase in non-interest expense was primarily attributable to increases in salaries and benefits of approximately $124,000, office building expense of approximately $5,000, other operating expenses of approximately $43,000, professional service expenses of approximately $9,000, and an increase in data processing expense of approximately $12,000.

For the six months ended December 31, 2025, the Company’s net interest income before provision for loan losses totaled approximately $4.6 million, an increase of approximately $254,000, or 5.82%, when compared to the six months ended December 31, 2024. The increase in net interest income before provision for loan losses was primarily attributable to an increase in total interest income of approximately $323,000, or 5.67%, offset by an increase in total interest expense of approximately $69,000, or 5.18%. For the six months ending December 31, 2025, the Bank recorded provisions for loan losses of approximately $84,000 as compared to $442,000 for the same period in 2024. For the six months ended December 31, 2025, total non-interest income decreased approximately $16,000, or 5.10%, compared to the same period in 2024, while non-interest expense increased approximately $577,000, or 16.55%. The decrease in non-interest income was primarily attributable to a decrease in customer service fees of approximately $10,000 and a decrease in miscellaneous income of approximately $6,000. The increase in non-interest expense was primarily attributable to increases in salaries and benefits of approximately $436,000, office and equipment of approximately $9,000, professional service expenses of approximately $19,000, data processing expense of approximately $26,000, and other operating expenses of approximately $87,000.

The Company’s total assets at December 31, 2025, were approximately $128.8 million, as compared to approximately $124.0 million at June 30, 2025. Total stockholders’ equity was approximately $17.8 million at December 31, 2025, or 13.79% of total assets, as compared to approximately $16.7 million at June 30, 2025, or 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. 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 attached)