The Southern Banc Company, Inc. Announces 2009 Annual Earnings, Stockholder Meeting Date and Availability of 2009 Annual Report

In addition to reporting earnings, the Company announced that the annual meeting of stockholders will be held on November 18, 2009 at 5:00 PM at the main office of The Southern Bank Company in Gadsden, Alabama. The voting record date for the purpose of determining stockholders eligible to vote on proposals presented at the annual meeting is September 25, 2009.

The Southern Banc Company, Inc. (OTCBB: SRNN) announced that the company’s 2009 Annual Report is available at http://www.sobanco.com/investorrelations.shtml.

Gates Little, President and Chief Executive Officer of the Company, stated that the Company’s net loss for the fiscal year ended June 30, 2009 was primarily attributable to an increase in total non-interest expense of approximately $85,000, or 3.6%, and an increase in the provision for loan losses of approximately $64,000, or 356%, offset in part by an improvement of the net interest margin of approximately $227,000, or 11.5%. The increase in total non-interest expense was primarily attributable to increases in salaries and employee benefits, data processing expenses, occupancy expenses and the realization of a net loss on sale of securities, offset by a decrease in professional services.

The Company’s total assets at June 30, 2009 were $98.8 million, as compared to $102.9 million at June 30, 2008. Total stockholders’ equity at June 30, 2009, was $15.5 million, or 15.7% of total assets.

The Bank has four offices located in Gadsden, Albertville, Guntersville, and Centre, Alabama. The stock of The Southern Banc Company, Inc. is listed on the OTC Bulletin Board 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.

The Southern Banc Company, Inc.
Gates Little, 256-543-3860