Southern Banc Company (SRNN) AI Stock Analysis

Southern Banc Company

(Other OTC:SRNN)

Select Model

Rating:66Neutral

Price Target:$17.50▲(6.38% Upside)

Action:downgraded

Date:06/27/26

The stock scores 66, reflecting a moderately positive outlook. Strong revenue growth and a bullish technical trend are the primary drivers, offset by declining profitability and fair valuation. The balance sheet remains low-risk, but efficiency metrics need improvement. Overbought conditions suggest caution in the short term.

Positive Factors

Conservative CapitalizationA very low leverage profile and rising equity provide a durable capital buffer that supports loan growth, loss absorption, and regulatory flexibility. This reduces funding and solvency risk over multiple cycles and preserves the firm's ability to invest or pursue strategic opportunities.

Negative Factors

Margin CompressionRapid and persistent margin erosion materially undermines earnings power and return on invested capital. If margins remain depressed, the company's ability to generate sustainable profits, fund growth, or restore ROE is constrained, raising long-term earnings risk.

Southern Banc Company (SRNN) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $12.50M
Dividend Yield: ―
Average Volume (3M): 1,681
Price to Earnings (P/E): 8.8
Beta (1Y): 0.07
Revenue Growth: 8.47%
EPS Growth: 54.75%
Country: US
Employees: 31
Sector: Financial
Sector Strength: 68
Industry: Banks - Regional

Southern Banc Company Business Overview & Revenue Model

Company Description

The Southern Banc Company, Inc. serves as the parent organization for The Southern Bank Company, which delivers a wide array of banking products and services throughout Alabama. Its offerings cater to both individual and commercial clients. Personal...

How the Company Makes Money

null

Southern Banc Company Financial Statement Overview

Summary

Exceptional revenue growth (111.9% TTM) and strong cash conversion, but profitability and returns have declined. Balance sheet shows minimal debt, though efficiency metrics need improvement.

Income Statement

65Positive

Balance Sheet

60Neutral

Cash Flow

60Neutral

Financial statement breakdown
Breakdown	TTM	Jun 2026	Jun 2025	Jun 2024	Jun 2023	Jun 2022
Income Statement
Total Revenue	13.16M	13.16M	12.13M	10.60M	9.75M	7.56M
Gross Profit	10.01M	9.94M	9.43M	8.60M	8.83M	7.09M
EBITDA	1.90M	1.90M	1.30M	2.23M	3.40M	2.43M
Net Income	1.42M	1.42M	915.44K	1.60M	2.47M	1.74M
Balance Sheet
Total Assets	131.76M	131.76M	124.04M	113.05M	108.50M	115.28M
Cash, Cash Equivalents and Short-Term Investments	19.18M	19.18M	25.07M	12.50M	49.07M	55.24M
Total Debt	0	0	240.69K	306.25K	0	2.00M
Total Liabilities	113.35M	113.35M	107.32M	98.59M	96.37M	104.68M
Stockholders Equity	18.41M	18.41M	16.72M	14.47M	12.12M	10.60M
Cash Flow
Free Cash Flow	0	0	1.75M	2.35M	1.94M	2.42M
Operating Cash Flow	0	0	1.79M	2.54M	1.97M	2.56M
Investing Cash Flow	0	0	1.72M	65.15K	4.86M	-8.75M
Financing Cash Flow	0	0	9.07M	1.28M	-8.12M	4.81M

Southern Banc Company Technical Analysis

Technical Analysis SentimentNegative

Last Price16.45

Price Trends

50DMA16.70Negative

100DMA16.46Negative

200DMA14.14Positive

Market Momentum

MACD-0.05Positive

RSI43.71Neutral

STOCH8.33Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SRNN, the sentiment is Negative. The current price of 16.45 is below the 20-day moving average (MA) of 16.57, below the 50-day MA of 16.70, and above the 200-day MA of 14.14, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 43.71 is Neutral, neither overbought nor oversold. The STOCH value of 8.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SRNN.

Southern Banc Company Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

SRNN against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SRNN	66Neutral	$12.50M	8.80	7.93%	―	8.47%	54.75%
KFFB	62Neutral	$43.18M	22.64	3.86%	0.94%	8.69%	958.30%
GLBZ	52Neutral	$12.19M	-76.49	-0.39%	―	17.13%	-395.56%
SHFS	39Underperform	$1.55M	-0.01	-52.68%	―	-28.59%	94.79%

* Financial Sector Average

Performance Comparison

SRNN and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
SRNN	Southern Banc Company	16.45	6.41	63.84%
CARV	Carver Bancorp	1.85	-1.14	-38.13%
GLBZ	Glen Burnie	4.17	-0.52	-10.98%
KFFB	Kentucky First Federal	5.34	1.39	35.29%
SHFS	Shf Holdings Inc.	0.06	-29.82	-99.79%
MBBC	Marathon Bancorp, Inc.	14.44	3.50	31.95%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Jun 27, 2026

Southern Banc Company AI Stock Analysis