EXHIBIT 99.1

For Immediate Release	Contact: Mr. Gates Little.
	(256) 543-3860
	For Immediate Release
	November 10, 2005

THE SOUTHERN BANC COMPANY, INC. ANNOUNCES

FIRST QUARTER EARNINGS

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 net income of $117,000, or $0.15 per share basic and $0.14 per share diluted, for the quarter ended September 30, 2005, as compared to net income of $139,000, or $0.17 per share basic and $0.16 per share diluted, for the quarter ended September 30, 2004.

Gates Little, President and Chief Executive Officer of the company, stated that the first quarter decrease in net income primarily resulted from a decrease of approximately $128,000 in the net interest margin after provision for loan losses when compared to the same period in 2004. This decrease was offset in part by an increase in non-interest income of approximately $97,000.

The Company’s total assets at September 30, 2005 were $102.8 million as compared to $104.8 million at June 30, 2005. Total stockholders’ equity at September 30, 2005, was $15.7 million as compared to $16.7 million at June 30, 2005.

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.

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)

	September 30, 2005			June 30, 2005
ASSETS
CASH AND CASH EQUIVALENTS	$	5,527		$	4,107
SECURITIES AVAILABLE FOR SALE, at fair value		55,296			59,403
SECURITIES HELD TO MATURITY, at amortized cost fair value of $3,417 and $3,779, respectively		3,316			3,660
FEDERAL HOME LOAN BANK STOCK		509			509
LOANS HELD FOR SALE		209			0
LOANS RECEIVABLE, net of allowance for loan losses of $149 and $135, respectively		35,780			35,531
PREMISES AND EQUIPMENT, net		595			608
ACCRUED INTEREST AND DIVIDENDS RECEIVABLE		398			441
PREPAID EXPENSES AND OTHER ASSETS		1,127			552
TOTAL ASSETS	$	102,757		$	104,811
LIABILITIES
DEPOSITS	$	80,601		$	81,736
FEDERAL HOME LOAN BANK ADVANCES		6,083			6,083
OTHER LIABILITIES		329			289
TOTAL LIABILITIES		87,013			88,108
COMMITMENTS AND CONTINGENCIES
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		14,007			13,998
Treasury stock, at cost, 618,534 and 595,090 shares, respectively		(8,317	)		(7,923	)
Shares held in trust, at cost, 46,855 and 49,355 shares, respectively		(839	)		(868	)
Retained earnings		11,743			11,696
Accumulated other comprehensive income (loss), net		(865	)		(215	)
TOTAL STOCKHOLDERS’ EQUITY		15,744			16,703
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	102,757		$	104,811

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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 September 30,
	2005		2004
INTEREST INCOME:
Interest and fees on loans	$	496	$	519
Interest and dividends on securities available for sale		638		654
Interest and dividends on securities held to maturity		47		71
Other interest income		28		11
Total interest income		1,209		1,255
INTEREST EXPENSE:
Interest on deposits		530		455
Interest on borrowings		71		79
Total interest expense		601		534
Net interest income before provision for loan losses		608		721
Provision for loan losses		15		0
Net interest income after provision for loan losses		593		721
NON-INTEREST INCOME:
Fees and other non-interest income		35		25
Gain of sale of available for sale securities		66		0
Miscellaneous Income, net		34		13
Total non-interest income		135		38
NON-INTEREST EXPENSE:
Salaries and employee benefits		294		305
Office building and equipment expenses		54		41
Professional services		55		53
Data processing expense		65		54
Other operating expense		72		78
Total non-interest expense		540		531
Income before income taxes		188		228
PROVISION FOR INCOME TAXES		71		89
Net Income	$	117	$	139
EARNINGS PER SHARE:
Basic	$	0.15	$	0.17
Diluted	$	0.14	$	0.16
DIVIDENDS DECLARED PER SHARE	$	0.0875	$	0.0875
AVERAGE SHARES OUTSTANDING:
Basic		804,894		842,026
Diluted		820,552		863,891

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THE SOUTHERN BANC COMPANY, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollar Amounts in Thousands)

	For The Three Months Ended September 30,
	2005			2004
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$	117		$	139
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		22			10
Amortization, net		20			24
Amortization of unearned compensation		9			39
Provision for loan losses		15			0
Net gain on sale of secondary market loans		(5	)		0
Gain on sale of available for sale securities		(66	)		0
Proceeds from sale of secondary market loans		841			50
Loans originated for secondary market		(1,045	)		(50	)
Change in assets and liabilities:
Decrease in accrued interest and dividends receivable		43			28
Increase in other assets		(27	)		(42	)
(Decrease) increase in other liabilities		(112	)		118
Net cash (used in) provided by operating activities		(305	)		316
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of securities available for sale		(2,788	)		(5,969	)
Proceeds from maturities and principal payments on securities available for sale		3,957			3,562
Proceeds from maturities and principal payments on securities held to maturity		350			408
Proceeds from sale of securities available for sale		1,909			0
Net loan (originations) repayments		(264	)		1,305
Capital expenditures, net		14			(4	)
Net cash provided by (used in) investing activities		3,178			(698	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (decrease) in deposits, net		(1,135	)		210
Purchase of Treasury Stock		(393	)		0
Dividends paid		(71	)		(76	)
Proceeds from exercise of stock options		29			292
Purchase of stock to fund option trust		0			(864	)
Net cash used in financing activities		(1,570	)		(438	)
Net increase (decrease) in cash and cash equivalents		1,420			(820	)
CASH AND CASH EQUIVALENTS, beginning of period		4,107			5,734
CASH AND CASH EQUIVALENTS, end of period	$	5,527		$	4,914
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid during the period for:
Income taxes	$	57		$	0
Interest	$	601		$	536

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