K:\FIR129\BC\10Q.DOC (Linda Elrod)


                         UNITED STATES
               SECURITIES AND EXCHANGE COMMISSION
                     WASHINGTON D.C.  20549
                                
                           FORM 10-QSB
                                
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
                SECURITIES EXCHANGE ACT OF 1934
                                
           For the Quarterly Period Ended December 31, 1997

                                

                Commission File Number: 333-12373
     


                                
               Southern Community Bancshares, Inc.
      (Exact name of registrant as specified in its charter)
                           


          Delaware                            63-1176408
(State or other jurisdiction               (I.R.S. Employer
    of incorporation or                     Identification No.)
       organization)
                                                   
    325 2nd Street, S.E.                           
      Cullman, Alabama                           35055
    (Address of principal                     (Zip Code)
     executive offices)
                                                   

Registrant's telephone number,         (205) 734-4863
including area code:


Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days.


                Yes    X            No      


Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of the latest practicable
date.
                                                 
                                                 
            Class                        Outstanding at December
                                                31, 1997
Common Stock, $.01 par value                1,137,350 shares




                  SOUTHERN COMMUNITY BANCSHARES, INC.
                                   
                                   



                  PART I.    FINANCIAL INFORMATION
                                                                  
                                                                Page
                                                               
ITEM 1.     FINANCIAL STATEMENTS:                                 
                                                                  
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION AS OF   2
  DECEMBER 31, 1997 AND SEPTEMBER 30, 1997
                                                                  
CONDENSED CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE        3
  MONTHS ENDED DECEMBER 31, 1997 AND 1996
                                                                  
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE          4
  THREE MONTHS ENDED DECEMBER 31, 1997 AND 1996
                                                                  
THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FURNISHED HAVE    
NOT BEEN AUDITED BY INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS,
BUT REFLECT, IN THE OPINION OF MANAGEMENT, ALL ADJUSTMENTS
NECESSARY FOR A FAIR PRESENTATION OF FINANCIAL CONDITION AND
THE RESULTS OF OPERATIONS FOR THE PERIODS PRESENTED
                                                                  
ITEM 2.     MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL    7
  CONDITION AND RESULTS OF OPERATIONS
                                                                  
                                                                  
                                                                  
                PART II.    OTHER INFORMATION                    
                                                                  
OTHER INFORMATION                                                9
                                                                  
SIGNATURES                                                      10
                                   
                  SOUTHERN COMMUNITY BANCSHARES, INC.
                                   
                                   
       CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                                   
                       (DOLLARS IN THOUSANDS)
                                   
                                   
                                   
                                ASSETS
                                   
                                                December 31,   September 30,
                                                   1997            1997
                                                (unaudited)
                  
CASH AND CASH EQUIVALENTS                         $10,250        $  9,887
                                                            
SECURITIES AVAILABLE FOR SALE, at fair value       10,807          12,997
                                                            
SECURITIES HELD TO MATURITY, fair values of          
$2,867 and $3,525, respectively                     2,852           3,525
                                                            
LOANS RECEIVABLE, net                              45,757          42,999
                                                            
PREMISES AND EQUIPMENT                                550             545
                                                            
OTHER ASSETS                                          677             932

       Total assets                               $70,893         $70,885
                                                            
                                                            
                                                            
                LIABILITIES AND STOCKHOLDERS' EQUITY
                                                            
DEPOSITS                                          $56,521         $55,875
                                                            
OTHER LIABILITIES                                     273             540

       Total liabilities                           56,794          56,415
                                                            
STOCKHOLDERS' EQUITY:                                       
Preferred stock, par $.01, no shares issued,            0               0
  100,000 authorized
Common stock, par $.01 per share, 1,137,350           
  issued, 3,000,000 authorized                         11              11
Additional paid-in capital                         10,804          10,787
Retained earnings                                   6,592           6,445
Unrealized loss on securities available for sale    ( 15)            (36)
Unearned compensation                             (3,293)         (2,737)

      Total stockholders' equity                   14,099          14,470
      Total liabilities and stockholders' equity  $70,893         $70,885
                                   
                                   
                                   
                                   
  The accompanying notes are an integral part of these balance sheets.


                  SOUTHERN COMMUNITY BANCSHARES, INC.
                                   
                                   
              CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                   
           (DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)


                                               Three Months Ended             
                                                  December 31,      
                                                 1997     1996
                                                  (unaudited)
               
INTEREST INCOME:                                                
  Interest and fees on loans                      $969     $864
  Interest and dividends on   
    securities                                     239      266
  Other interest income                            108       74      
     
     Total interest income                       1,316    1,204
                  
INTEREST EXPENSE:                                               
  Interest on deposits                             606      643      
     Total interest expense                        606      643  
     Net interest income                           710      561        
                                                                
PROVISION FOR LOAN LOSSES                            0        0 
     Net interest income after 
       provision for loan losses                    710     561 
                                                         
NONINTEREST INCOME:                                             
  Customer service fees                              49      65   
     Total noninterest income                        49      65      
                                                                
NONINTEREST EXPENSE:                                            
  Compensation and benefits                         224     191
  Occupancy and equipment                            45      41                
  Deposit insurance expense                           7      30               
  Other operating expense                           146     120     
     Total noninterest expense                      422     382              
     Income before income taxes                     337     244     

PROVISION FOR INCOME TAXES                          121      84
NET INCOME                                          216     160       
                                                                              
BASIC AND DILUTED EARNINGS PER SHARE               $.22    $.15               

DIVIDEND DECLARED PER SHARE                      $0.075     N/A                
                                   
                                   
   The accompanying notes are an integral part of these statements.
                          

                   SOUTHERN COMMUNITY BANCSHARES, INC.
                                   
                                   
                        STATEMENTS OF CASH FLOWS
                                   
           FOR THE THREE MONTHS ENDED DECEMBER 31, 1997 AND 1996
                                   
                        (DOLLARS IN THOUSANDS)

<TABLE>

                                                         1997    1996
<S>                                                    <C>     <C>
                                                                
CASH FLOWS FROM OPERATING ACTIVITIES:                           
  Net income                                             $216    $160                                          
                                                   
  Adjustments to reconcile net income to net cash        
    provided by operating activities:
     Depreciation                                          20      20
     Amortization and accretion on securities              12     (11)
     Amortization of unearned compensation                 40       0
     Change in assets and liabilities:                               
       Other assets                                       244     129     
       Other liabilities                                 (267)   (447)
         Total adjustments                                 49    (309)
         Net cash provided by operating activities        265    (149)     
         
CASH FLOWS FROM INVESTING ACTIVITIES:                           
  Proceeds from maturities/calls of securities,          
    available for sale                                  2,212     454
  Proceeds from maturities/calls of securities,            
    held to maturity                                      671   1,004
  Purchases of securities, available for sale               0    (374)
  Net loan (originations) repayments                   (2,758)    699
  Capital expenditures                                    (25)     (7)
        Net cash used in investing activities             100   1,776  

CASH FLOWS FROM FINANCING ACTIVITIES:                           
  Increase (decrease) in deposits                         646  (1,121)         
  Contributions to Plan trusts                            (17)      0
  Purchase of stock for stock plan trusts                (562)      0
  Net proceeds from issuance of common stock                0  10,023
  Dividends paid                                          (69)      0
        Net cash provided by financing activities          (2)  8,902          
                                                                
NET INCREASE IN CASH AND CASH EQUIVALENTS                 363  10,529 
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD        9,887   3,868
CASH AND CASH EQUIVALENTS AT END OF PERIOD            $10,250 $14,397 
                                                       
                                   
                                   
                                   
   The accompanying notes are an integral part of these statements.


                  SOUTHERN COMMUNITY BANCSHARES, INC.
                                   
                                   
         NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
                                   
                                   

  1.BASIS OF PRESENTATION
   
   Southern Community Bancshares, Inc. (the "Company") was
   incorporated in the State of Delaware at the direction of
   management of First Federal Savings and Loan Association of
   Cullman (the "Association") for the purpose of serving as a
   savings institution holding company of the Association upon the
   acquisition of all of the capital stock issued by the Association
   upon the conversion from a federally chartered mutual savings
   association form of organization to a federally chartered stock
   savings association (the "Conversion").
   
   The accompanying unaudited condensed consolidated financial
   statements as of December 31, 1997, and for the three month period
   then ended, include the accounts of the Company and the
   Association.  All significant intercompany transactions and
   accounts have been eliminated in consolidation.
   
   The condensed consolidated financial statements were prepared by
   the Company without an audit, but in the opinion of management,
   reflect all adjustments necessary for the fair presentation of
   financial position and results of operations for the three month
   periods ended December 31, 1997 and 1996.  Results of operations
   for the current interim period are not necessarily indicative of
   results expected for the fiscal year ended September 30, 1998.
   While certain information and footnote disclosures normally
   included in financial statements prepared in accordance with
   generally accepted accounting principles have been condensed or
   omitted pursuant to the rules and regulations of the Securities
   and Exchange Commission, management believes that the disclosures
   herein are adequate to make the information presented not
   misleading.  These condensed consolidated financial statements
   should be read in conjunction with the financial statements and
   notes thereto for the year ended September 30, 1997.  The
   accounting policies followed by the Company are set forth in
   the summary of significant accounting policies in the
   Company's September 30, 1997 financial statements.
   

  2.STOCK CONVERSION
   
   On December 23, 1996, the Conversion to a federally chartered
   stock savings association through amendment of its charter, and
   issuance of common stock to the Company was completed.  Related
   thereto, the Company sold 1,137,350 shares of common stock, par
   value $.01 per share, at an initial price of $10 per share in
   subscription and community offerings.  Costs associated with the
   Conversion were approximately $750,000, including underwriting
   fees.  These conversion costs were deducted from the gross
   proceeds of the sale of the common stock.
   
   In connection with the Conversion, the Company has established an
   employee stock ownership plan (the "ESOP").  The ESOP purchased
   approximately 8%, or 90,988 shares, of the total shares of common
   stock sold.  The Company lent $909,880 to the ESOP for the
   purchase of the shares of common stock.  Unearned compensation for
   the ESOP was charged to stockholders' equity and is reduced
   ratably in connection with principal payments under the terms of
   the Plan.
   
   The Management Recognition Plan ("MRP") and the Stock Option Plan
   ("SOP") were approved by shareholders on January 19, 1998.  Under
   the MRP, employees and directors could be awarded an aggregate amount
   of shares of common stock equal to 4% of the shares issued in the
   Conversion (45,494 shares of common stock) and the Stock Option Plan
   ("SOP"), employees and directors could be granted options to purchase
   an aggregate amount of shares of common stock equal to 10% of the shares
   issued in the Conversion at exercise prices equal to the market price
   of the common stock on the date of grant.  At December 31, 1997, the
   MRP and SOP plan trust had purchased 160,035 shares of the Company's
   stock.
   
   
3.EARNINGS PER SHARE
   
   Basic earnings per share were computed by dividing net income by
   the weighted average number of shares of common stock outstanding during
   the three month period ended December 31, 1997 and by dividing the
   earnings for the period from December 23, 1996, the date of Conversion,
   to December 31, 1996, by the weighted average number of shares of
   common stock outstanding during the quarter.  Common Stock outstanding
   consists of issued shares less unallocated ESOP shares, and shares
   owned by the MRP and Stock Option plan trust.  Diluted earnings
   per share for the three month period ended December 31, 1997 and the
   period from December 23, 1996 to December 31, 1996, were the same
   as Basic earnings per share because there were no dilutive securities
   outstanding during the periods ended December 31, 1997 or 1996.

   In 1997, the Company adopted SFAS No. 128, "Earnings Per Share,"
   effective December 15, 1997.  As a result, the Company's reported
   earnings per share for 1996 were restated.  The following table
   represents the earnings per share calculations for the three months
   ended December 31, 1997 and 1996, accompanied by the effect of this
   accounting change on previously reported earnings per share:

                                                           Per Share
     For the Three Months Ended      Income     Shares       Amount    

   December 31, 1997:
     Net income                    $216,000
     Basic earnings per share:
       Income available to common
         shareholders               216,000     993,567        $.22
     Dilutive securities                  0           0           0
     Diluted earnings per share    $216,000     993,567        $.22

   December 31, 1996:
     Net income for the period
       from December 23, 1996 to
       December 31, 1996           $ 15,000
     Basic earnings per share:
       Income available to common
         shareholders                15,000     102,362        $.15
     Dilutive securities                  0           0           0
     Diluted earnings per share    $ 15,000     102,362        $.15

   Changes in previously reported earnings per share:

                                             For the Quarter Ended
                                               December 31, 1996
    
     Earnings (loss) per share, as reported             $.15
     Earnings (loss) per share, as restated:
         Basic                                           .15
         Diluted                                         .15


4.PENDING ACCOUNTING PRONOUNCEMENTS

   In February 1997, the Financial Accounting Standards Board ("FASB")
   issued SFAS No. 129, Disclosure of Information About Capital Structure.
   This Statement establishes standards for disclosing information
   about an entity's capital structure.

   In June 1997, the FASB issued SFAS No. 130, "Reporting of Comprehensive
   Income" This Statement established standards for reporting and display
   of comprehensive income and its components (revenues, expenses, gains
   and losses) in a full set of financial statements.  This statement also
   requires that all items that are required to be recognized under
   accounting standards as components of comprehensive income be reported
   in financial statements and are displayed with the same prominence as
   other financial statements.  This Statement is effective for fiscal years
   beginning after December 15, 1997.  Earlier application is permitted.
   Reclassification of financial statements for earlier periods for
   comparative purposes is required.

   In June 1997, the FASB issued SFAS No. 131, Disclosures About Segments of
   an Enterprise and Related Information.  This Statement establishes
   standards for the way that public business enterprises report information
   about operating segments in annual financial statements and requires that
   those enterprises report selected information about operating segments
   in interim financial reports issued to stockholders.  This Statement also
   establishes standards for related disclosures about products and serivces,
   geographic areas, and major customers.  This Statement requires the 
   reporting of financial and description information about an enterprise's
   reportable operating segments.  This Statement is effective for financial
   statements for periods beginning after December 15, 1997.  In the initial
   year of application comparative information for earlier years is to be
   restated.

   Management believes there will be no material effect on the consolidated
   financial statements from the adoption of these pronouncements.




Item 2.Management's Discussion and Analysis or Plan of Operations

      On December 23, 1996, the Company completed the sale of
1,137,350 shares of its common stock in an initial public offering at
a price of $10.00 per share and simultaneously acquired the shares of
common stock of the Association in connection with the mutual to stock
conversion.  Costs associated with the offering were approximately
$750,000.  Prior to December 23, 1996, the Company had not issued any
stock, had no assets or liabilities and had not engaged in any
business activities other than of an organizational nature.
Accordingly, the financial data for periods prior to the Conversion
included herein reflect the operations of the Association only.

      Comparison of Financial Condition at December 31, 1997 and
September 30, 1997.  Total assets and liabilities remained approximately
the same between periods.  The $2.9 million decrease in securities was
used to fund the $2.8 million increase in loans.

      Comparison of Results of Operations for the Three Months Ended
December 31, 1997 and 1996.  The Company reported net income for the
three months ended December 31, 1997 of $216,000 as compared to $160,000
for the three months ended December 31, 1996.

      Net Interest Income.  Net interest income for the three months
ended December 31, 1997 amounted to $710,000 as compared to $561,000
for the three months ended December 31, 1996.  Total interest income
increased $112,000 or 9.3% during the three months ended December 31,
1997 as compared to the prior year.  This increase resulted primarily from
an increase in the average balance of total interest bearing assets during
the three months ended December 31, 1997 as compared to the prior year.
Total interest expense decreased during the three months ended 
December 31, 1997.  This decrease resulted primarily from a decrease
in average deposits between the periods.

      Provision for Loan Losses.  No provisions for loan losses were
made during the three month periods ended December 31, 1997 and 1996.
The allowance for loan losses reflects management's estimates which
took into account historical experience, the amount of non-performing
assets, and general economic conditions.

      Provision for Income Taxes.  Income tax expense for the three months
ended December 31, 1997 increased by $37,000 to $121,000 as compared to
income tax expense of $84,000 for the three months ended December 31, 1996.
This increase is due to increased income before income taxes.

      Noninterest Expense.  Noninterest expense for the three months ended
December 31, 1997 amounted to $422,000 as compared to $382,000 for the
three months ended December 31, 1996.  The $40,000, or 10.6%, increase
is primarily the result of increased compensation expense due to the ESOP
plan and other operating expense increases due to professional fees.  These 
increases were partially offset by decreases in deposit insurance expense.

     Capital Resources.  The Association's primary sources of funds
are customer deposits, repayments of loan principal, and interest from
loans and investments.  While scheduled principal repayments on loans
and mortgage-backed securities are a relatively predictable source of
funds, deposit flows, and loan prepayments are greatly influenced by
general interest rates, economic conditions, and competition.  The
Association manages the pricing of its deposits to maintain a desired
deposit balance.  In addition, the Association invests in short-term
interest-earning assets which provide liquidity to meet lending
requirements.

     The Association is required to maintain certain levels of
regulatory capital.  At December 31, 1997 and September 30, 1997, the
Company and the Association were in compliance with all regulatory
capital requirements.




                     PART II.    OTHER INFORMATION




Item 1.  Legal Proceedings

From time to time, the Company and subsidiary may be a party to
various legal proceedings incident to its or their business.  At
December 31, 1997, there were no legal proceedings to which the
Company or subsidiary was a party, or to which any of their
property was subject, which were expected by management to result in a
material loss.


Item 2.  Changes in Securities

     None


Item 3.  Defaults Upon Senior Securities

     None


Item 4.  Submission of Matters to a Vote of Security Holders

     None


Item 5.  Other Information

     Not applicable


Item 6.  Exhibits and Reports on Form 8-K

     Not applicable



                              SIGNATURES
                                   
                                   



Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.


                                 SOUTHERN COMMUNITY BANCSHARES, INC.





Date:      February 13, 1998    _____________________________________
                                William R. Faulk
                                President and Chief Executive Officer



Date:      February 13, 1998    _____________________________________
                                Beth B. Knight
                                Secretary and Treasurer




</TABLE>