EXHIBIT 99

For Immediate Release	Contact: Gates Little
	(256) 543-3860
	September 27, 2006

THE SOUTHERN BANC COMPANY, INC. ANNOUNCES

2006 ANNUAL 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 $235,000, or $0.30 per basic and $0.29 per diluted share, for the year ended June 30, 2006, as compared to net income of $650,000, or $0.78 per basic and $0.76 per diluted share, for the year ended June 30, 2005.

Gates Little, President and Chief Executive Officer of the Company, stated that the decrease in net income and earnings per share for the year ended June 30, 2006, was primarily attributable to a $296,000, or 81.8%, decrease in the gain on sale of securities. During the period ended June 30, 2006, the net interest margin decreased approximately $415,000, or 15.2% and non-interest expense increased approximately $26,000, or 1.2%. The decrease in non-interest income was primarily attributable to a gain on the sale of stock owned by the Company in its data processing service bureau recorded in fiscal 2005. The decrease in the net interest margin was primarily attributable to a decrease in interest income of approximately $9,000 and an increase in interest on deposits of approximately $406,000, or 18.2%, during a period of rising interest rates. The increase in non-interest expense was primarily due to an increase in office building and equipment expense related to an upgrade of the teller platform and operating system.

For the three month period ended June 30, 2006, the Company reported net income of approximately $30,000, or $0.04 per basic and $0.04 per diluted share, as compared to net income of $288,000, or $0.35 per basic and $0.34 per diluted share. The decrease in net income and earnings per share for the three month period ended June 30, 2006, was primarily attributable to a decrease in the gain on sale of securities and a decrease in net interest income. During the three month period ended June 30, 2005, the Company recorded a gain of approximately $329,000 on the sale of stock owned by the Company in its data processing service bureau.

The Company’s total assets at June 30, 2006 were $102.6 million, as compared to $104.8 million at June 30, 2005. Total stockholders’ equity at June 30, 2006, was $14.9 million, or 14.5% 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.

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)

92

THE SOUTHERN BANC COMPANY, INC.

Consolidated Statements of Financial Condition

June 30, 2006 and 2005

	2006			2005
Assets
Cash and cash equivalents:
Cash on hand and in other banks	$	2,116,505		2,364,078
Interest–bearing deposits in other banks		3,614,432		1,742,422
Total cash and cash equivalents		5,730,937		4,106,500
Securities available for sale, at fair value		57,623,030		59,403,333
Securities held to maturity (fair value of $2,615,941 and $3,784,984, respectively)		2,580,447		3,660,129
Federal Home Loan Bank stock		494,400		508,900
Loans held for sale		63,200		—
Loans receivable, net of allowance for loan losses of $138,939 and $135,472 , respectively		33,710,252		35,530,975
Accrued interest and dividends receivable		509,215		440,952
Premises and equipment, net		1,046,463		608,840
Prepaid expenses and other assets		891,419		551,744
Total assets	$	102,649,363		104,811,373
Liabilities and Stockholders’ Equity
Deposits	$	82,169,673		81,736,517
Federal Home Loan Bank advances		5,250,000		6,083,334
Other liabilities		289,862		288,579
Total liabilities		87,709,535		88,108,430
Commitments and contingencies
Stockholders’ equity:
Preferred stock, par value $0.01 per share. Authorized 500,000 shares; no shares issued and outstanding		—		—
Common stock, par value $0.01 per share. Authorized 3,500,000 shares; issued 1,454,750 shares in 2006 and 2005		14,548		14,548
Additional paid-in capital		13,997,847		13,997,847
Retained earnings		11,652,772		11,696,782
Shares held in trust, at cost, 27,768 and 49,355 shares in 2006 and 2005, respectively		(599,755	)	(868,350	)
Treasury stock, at cost, 645,464 and 595,090 shares in 2006 and 2005, respectively		(8,775,687	)	(7,923,346	)
Accumulated other comprehensive loss		(1,349,897	)	(214,538	)
Total stockholders’ equity		14,939,828		16,702,943
Total liabilities and stockholders’ equity	$	102,649,363		104,811,373

93

THE SOUTHERN BANC COMPANY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Dollar Amounts in Thousands)

	Three Months Ended June 30,			Twelve Months Ended June 30,
	2006		2005	2006	2005
INTEREST INCOME:
Interest and fees on loans	$	504	509	2,006	2,041
Interest and dividends on securities available for sale		703	658	2,669	2,602
Interest and dividends on securities held to maturity		8	59	149	264
Other interest income		58	19	134	60
Total interest income		1,273	1,245	4,958	4,967
INTEREST EXPENSE:
Interest on deposits		660	511	2,377	1,937
Interest on borrowings		62	71	265	299
Total interest expense		722	582	2,642	2,236
Net interest income		551	663	2,316	2,731
Provision for loan losses		0	10	15	15
Net interest income after provision for loan losses		551	653	2,301	2,716
NON-INTEREST INCOME:
Customer service fees		27	34	123	122
Gain on sale of securities		0	329	66	362
Miscellaneous income, net		19	11	122	52
Total non-interest income		46	374	311	536
NON-INTEREST EXPENSE:
Salaries and employee benefits		302	329	1,254	1,272
Office building and equipment expenses		61	55	236	178
Professional service expense		42	48	187	200
Data processing expense		66	64	256	237
Other operating expense		72	80	302	322
Total non-interest expense		543	576	2,235	2,209
Income (loss) before income taxes		54	451	378	1,043
Provision for income taxes		24	163	142	393
Net income	$	30	288	235	650
Earnings per share – Basic	$	0.04	0.35	0.30	0.78
Earnings per share – Diluted	$	0.04	0.34	0.29	0.76
Dividends declared per share	$	0.0875	0.0875	0.3500	0.3500

94

THE SOUTHERN BANC COMPANY, INC.

Consolidated Statements of Cash Flows

Years ended June 30, 2006 and 2005

	2006			2005
Cash flows from operating activities:
Net income	$	235,265		649,596
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		113,401		60,125
Amortization of premiums/discounts on securities, net		49,065		71,725
Amortization of unearned compensation		—		158,178
Provision for loan losses		15,000		15,000
Deferred income tax provision		67,234		15,888
Gain on loans held for sale		(20,526	)	(12,598	)
Proceeds from sale of loans held for sale		2,500,526		1,849,738
Loans originated for sale		(2,543,200	)	(1,837,140	)
Gain on sale of available for sale securities		(60,009	)	(358,231	)
Gain on reclassification of securities		(35,390	)	—
Loss on disposal of assets		1,176		—
Change in assets and liabilities:
Increase in accrued interest and dividends receivable (68,263)		(1,336	)
Decrease (increase) in prepaid expenses and other assets		25,998		(37,604	)
(Decrease) increase in other liabilities		(163,331	)	109,609
Net cash provided by operating activities		116,946		682,950
Cash flows from investing activities:
Purchase of securities available for sale		(14,018,668	)	(19,707,703	)
Purchase of securities held to maturity		(1,000,000	)	(1,000,000	)
Proceeds from maturities and principal payments on securities Available for sale		11,086,590		14,225,146
Proceeds from sales of securities available for sale		2,951,848		2,974,330
Proceeds from maturities and principal payments on securities held to maturity		2,086,698		1,542,949
Sale of Federal Home Loan Bank stock		14,500		283,400
Loan repayments, net		1,805,723		1,930,612
Capital expenditures, net		(101,001	)	(183,400	)
Net cash provided by investing activities		2,825,690		65,334
Cash flows from financing activities:
Purchase of treasury stock		(852,341	)	(576,564	)
Purchase of shares of common stock to fund Trust		—		(863,826	)
Federal Home Loan Bank repayments		(833,334	)	(833,333	)
Cash dividends paid		(279,275	)	(293,644	)
Increase (decrease) increase in deposits, net		433,156		(268,564	)
(Payments) proceeds from short-term borrowings		(55,000	)	55,000
Proceeds from exercise of stock options		268,595		405,142
Net cash used in financing activities		(1,318,199	)	(2,375,789	)
Net increase (decrease) in cash and cash equivalents		1,624,437		(1,627,505	)
Cash and cash equivalents, beginning of year		4,106,500		5,734,005
Cash and cash equivalents, end of year	$	5,730,937		4,106,500
Supplemental cash flow information:
Cash paid during the year for:
Income taxes, net of refund received	$	160,515		279,168
Interest		2,643,257		2,234,355

95