EXHIBIT 99.1

For Immediate Release	Contact: Gates Little
	(256) 543-3860
	For Immediate Release
	February 12, 2004

The Southern Banc Company, Inc. Announces

Second Quarter Earnings

The Southern Banc Company, Inc. (NASDAQ-OTCBB:SRNN), the holding company for The Southern Bank Company, formerly First Federal Savings and Loan Association of Gadsden, Alabama, announced net income of $124,000, or $0.14 and $0.13 per basic and diluted share, respectively, for the quarter ended December 31, 2003. This compared to net income of $137,000 or $0.16 per basic and diluted share for the quarter ended December 31, 2002.

For the six month period ended December 31, 2003, net income was $272,000, as compared to net income of $430,000 for the six month period ended December 31, 2002. Basic and diluted earnings per share for the six month period ended December 31, 2003 were $0.31 and $0.29, respectively. This compared to $0.49 and $0.48 per basic and diluted share, respectively, for the quarter ended December 31, 2002.

Gates Little, President and Chief Executive Officer of the Company, stated that the decrease in net income and earnings per share for the six month period ended December 31, 2003 resulted primarily from a decrease of $501,000 in total interest and dividend income offset in part by a decrease in total interest expense of approximately $480,000. As a result, net interest income after provision for loan losses decreased approximately $17,000. In addition to the decrease in the net interest margin, total non-interest income decreased approximately $135,000, primarily due to a reduction in the gain on the sale of securities available for sale of approximately $158,000.

The Company’s total assets at December 31, 2003 were approximately $109 million.

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 NASDAQ OTC Bulletin Board.

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)

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THE SOUTHERN BANC COMPANY, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Dollar Amounts in Thousands)

	December 31, 2003			June 30, 2003
ASSETS
CASH AND CASH EQUIVALENTS	$	10,675		$	9,393
SECURITIES AVAILABLE FOR SALE, at fair value		52,500			53,723
SECURITIES HELD TO MATURITY, at amortized cost, fair value of $5,717 and $7,714, respectively		5,324			7,215
FEDERAL HOME LOAN BANK (FHLB) STOCK		886			886
LOANS HELD FOR SALE		0			50
LOANS RECEIVABLE, net of allowance for loan losses of $134 and $140, respectively		38,174			38,917
PREMISES AND EQUIPMENT, net		494			507
ACCRUED INTEREST AND DIVIDENDS RECEIVABLE		430			483
PREPAID EXPENSES AND OTHER ASSETS		538			527
TOTAL ASSETS	$	109,021		$	111,701
LIABILITIES
DEPOSITS	$	81,621		$	84,357
FHLB ADVANCES		8,333			7,750
OTHER LIABILITIES		378			728
TOTAL LIABILITIES		90,332			92,835
STOCKHOLDERS’ EQUITY:
Preferred stock, par value $.01 per share 500,000 shares authorized, shares issued and outstanding— none		0			0
Common stock, par value $.01 per share, 3,500,000 authorized, 1,454,750 shares issued		15			15
Additional paid-in capital		13,843			13,818
Unearned compensation		(101	)		(157	)
Shares held in trust, at cost, 47,128 and 65,738 shares, respectively		(635	)		(852	)
Retained earnings		11,196			11,082
Treasury stock, at cost, 493,252 shares		(6,182	)		(6,182	)
Accumulated other comprehensive income		553			1,142
TOTAL STOCKHOLDERS’ EQUITY		18,689			18,866
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	109,021		$	111,701

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THE SOUTHERN BANC COMPANY, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Dollar Amounts in Thousands, except per share data)

	Three Months Ended December 31,				Six Months Ended December 31,
	2003		2002		2003		2002
INTEREST INCOME:
Interest and fees on loans	$	563	$	597	$	1,148	$	1,187
Interest and dividends on securities available for sale		592		720		1,145		1,434
Interest and dividends on securities held to maturity		100		178		220		376
Other interest income		11		18		25		42
Total interest income		1,266		1,513		2,538		3,039
INTEREST EXPENSE:
Interest on deposits		446		686		930		1,375
Interest on borrowings		86		103		174		209
Total interest expense		532		789		1,104		1,584
Net interest income before provision for loan losses		734		724		1,434		1,455
Provision for loan losses		0		0		0		4
Net interest income after provision for loan losses		734		724		1,434		1,451
NON-INTEREST INCOME:
Fees and other non-interest income		49		39		94		71
Gain on sale of securities		0		0		0		158
Total non-interest income		49		39		94		229
NON-INTEREST EXPENSE:
Salaries and employee benefits		340		335		625		605
Office building and equipment expenses		85		85		173		178
Other operating expense		155		136		284		246
Total non-interest expense		580		556		1,082		1,029
Income before income taxes		203		207		446		651
PROVISION FOR INCOME TAXES		79		70		174		221
Net Income	$	124	$	137	$	272	$	430
EARNINGS PER SHARE:
Basic	$	0.14	$	0.16	$	0.31	$	0.49
Diluted	$	0.13	$	0.16	$	0.29	$	0.48
DIVIDENDS DECLARED PER SHARE	$	0.0875	$	0.0875	$	0.1750	$	0.1750
AVERAGE SHARES OUTSTANDING:
Basic		892,308		866,123		886,330		876,884
Diluted		926,618		883,733		924,121		887,480

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THE SOUTHERN BANC COMPANY, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollar Amounts in Thousands)

	For The Six Months Ended December 31,
	2003			2002
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	272		$	430
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation		22			31
Amortization (Accretion), net		148			65
Amortization of unearned compensation		81			71
Provision for loan losses		0			4
Net gain on sale of secondary market loans		(10	)		(19	)
Gain on sale of securities		0			(158	)
Proceeds from sale of secondary market loans		527			1,245
Loans originated for secondary market		(467	)		(1,907	)
Change in assets and liabilities:
Decrease in accrued interest & dividends receivable		53			67
Increase in other assets		(11	)		(212	)
Increase (decrease) in other liabilities		(114	)		197
Net cash provided by (used in) operating activities		501			(186	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of securities available for sale		(13,109	)		(19,320	)
Proceeds from maturities, principal payments, and sales of securities available for sale		13,367			17,389
Proceeds from maturities and principal payments on securities held to maturity		1,895			2,355
Proceeds from sale of FHLB stock		0			470
Net loan (originations) repayments		743			(1,395	)
Capital expenditures, net		(9	)		(27	)
Net cash provided by (used in) investing activities		2,887			(528	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (decrease) in deposits, net		(2,736	)		2,311
Decrease in advance payments by borrowers for taxes and insurance		(12	)		(12	)
Dividends paid		(158	)		(145	)
Proceeds from exercise of stock options		217			0
Purchase of treasury stock		0			(540	)
Increase (decrease) in FHLB advances, net		583			(416	)
Net cash provided by (used in) financing activities		(2,106	)		1,198
Net increase in cash and cash equivalents		1,282			484
CASH AND CASH EQUIVALENTS, beginning of period		9,393			7,529
CASH AND CASH EQUIVALENTS, end of period	$	10,675		$	8,013
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid during the period for:
Income taxes	$	198		$	230
Interest	$	1,120		$	1,590

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