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 June 30, 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 June
                                                30, 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
  JUNE 30, 1997 AND SEPTEMBER 30, 1996
                                                                  
CONDENSED CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE        3
  AND NINE MONTHS ENDED JUNE 30, 1997 AND 1996
                                                                  
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE     4
  MONTHS ENDED JUNE 30, 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
                                   
                                                June 30,   September 30,
                                                  1997        1996
                                               (unaudited)
                  
CASH AND CASH EQUIVALENTS                         $7,254      $  3,868
                                                            
SECURITIES AVAILABLE FOR SALE, at fair value      16,670        11,628
                                                            
SECURITIES HELD TO MATURITY, fair values of          
$4,288 and $6,687, respectively                    4,317         6,767
                                                            
LOANS RECEIVABLE, net                             40,695        39,601
                                                            
PREMISES AND EQUIPMENT                               552           603
                                                            
OTHER ASSETS                                         882           964

       Total assets                              $70,370       $63,431
                                                            
                                                            
                                                            
                LIABILITIES AND STOCKHOLDERS' EQUITY
                                                            
DEPOSITS                                         $55,021       $57,138
                                                            
OTHER LIABILITIES                                    344           608

       Total liabilities                          54,680        57,746
                                                            
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             0
Additional paid-in capital                        10,775             0
Retained earnings                                  6,298         5,872
Unrealized loss on securities                       ( 79)         (187)
Unearned compensation                             (2,000)            0

      Total stockholders' equity                  15,005         5,685
      Total liabilities and stockholders' equity $70,370       $63,431
                                   
                                   
                                   
                                   
  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)


<TABLE>
                                        Three Months     Nine Months
                                           Ended            Ended
                                          June 30,        June 30,
<S>                                 <C>          <S>  <C>           <S>      
                                        1997    1996     1997     1996
                                                 (unaudited)
               
INTEREST INCOME:                                                
  Interest and fees on loans            $909    $903    $2,574   $2,509                                                  
  Interest and dividends on   
    securities                           263     267       815      782
  Other interest income                   76      51       291      174
     
     Total interest income             1,248   1,221     3,686    3,465                 
INTEREST EXPENSE:                                               
  Interest on deposits                   510     666     1,758    1,936     
     Total interest expense              510     666     1,758    1,936 
     Net interest income                 738     555     1,928    1,529    
                                                                
PROVISION FOR LOAN LOSSES                  0       2         5        6
     Net interest income after 
       provision for loan losses         738     553     1,923    1,523
                                                         
NONINTEREST INCOME:                                             
  Customer service fees                   76      89       181      225
     Total noninterest income             76      89       181      225
                                                                
NONINTEREST EXPENSE:                                            
  Compensation and benefits              317     248       664      564
  Occupancy and equipment                 41      39       111      122                                                         
  Deposit insurance expense                6      33        42       97                 
  Other operating expense                120     125       403      335
     Total noninterest expense           484     445     1,220    1,118          
     Income before income taxes          330     197       884      630 

PROVISION FOR INCOME TAXES               119      68       309      211
NET INCOME                               211     129       575      419   
                                                                                                                      
EARNINGS PER SHARE                      $.21     N/A      $.43      N/A
                                                                                                                       
WEIGHTED AVERAGE SHARES
    OUTSTANDING                       984,911    N/A  1,006,796     N/A                        

DIVIDEND DECLARED PER SHARE            $0.075    N/A     $0.150     N/A               
                                   
                                   
   The accompanying notes are an integral part of these statements.
                          

                   SOUTHERN COMMUNITY BANCSHARES, INC.
                                   
                                   
                        STATEMENTS OF CASH FLOWS
                                   
           FOR THE NINE MONTHS ENDED JUNE 30, 1997 AND 1996
                                   
                        (DOLLARS IN THOUSANDS)


</TABLE>
<TABLE>

                                                         1997    1996
<S>                                                    <C>     <C>
                                                                
CASH FLOWS FROM OPERATING ACTIVITIES:                           
  Net income                                             $575    $419                                          
                                                   
  Adjustments to reconcile net income to net cash        
    provided by operating activities:
     Depreciation                                          62      62
     Amortization and accretion on securities             (21)    (85)
     Amortization of unearned compensation                 38       0
     Loss on sale of securities, net                        8       0
     Gain on sale of foreclosed real estate, net            0      (1)
     Gain on sale of premises and equipment, net            0      (2)
     Provision for deferred income taxes                    0       7
     Provision for losses on loans                          5       0
     Change in assets and liabilities:                               
       Other assets                                        82    (145)     
       Other liabilities                                 (407)    (98)
         Total adjustments                               (233)   (262)
         Net cash provided by operating activities        342     157     
         
CASH FLOWS FROM INVESTING ACTIVITIES:                           
  Proceeds from maturities/calls of securities,          
    available for sale                                    609   1,353
  Proceeds from maturities/calls of securities,            
    held to maturity                                    3,497   3,393
  Purchases of securities, available for sale          (6,567) (7,068)
  Purchases of securities, held to maturity            (1,047)      0
  Proceeds from sales of securities,
    available for sale                                  1,100       0    
  Net loan originations                                (1,099) (1,312)
  Proceeds from sale of foreclosed real estate              0      18
  Proceeds from sale of fixed assets                        0       2
  Capital expenditures                                    (11)    (83)
        Net cash used in investing activities          (3,518) (3,697)  

CASH FLOWS FROM FINANCING ACTIVITIES:                           
  Increase (decrease) in deposits                      (2,802)  2,270                                      
  Contributions to Plan trusts                         (1,128)      0
  Net proceeds from issuance of common stock            9,876       0
  Dividends paid                                          (69)      0
        Net cash provided by financing activities       5,877   2,270                
                                                                
NET INCREASE IN CASH AND CASH EQUIVALENTS               2,701  (1,270) 
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD        3,868   6,108
CASH AND CASH EQUIVALENTS AT END OF PERIOD             $6,569  $4,838 
                                                       
                                   
                                   
                                   
   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 June 30, 1997, and for the three and nine month periods
   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 and nine month
   periods ended June 30, 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, 1997.
   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, 1996.  The
   accounting policies followed by the Association are set forth in
   the summary of significant accounting policies in the
   Association's September 30, 1996 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.
   
   On or about one year following the Conversion, and subject to
   shareholder approval, the Company expects to implement the
   Management Recognition Plan (the "MRP"), under which directors, officers
   and certain employees could be awarded an aggregate amount
   of shares of common stock equal to 4% of the shares issued in the
   Conversion and the Stock Option Plan ("SOP"), under which directors,
   officers and employees 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. The Company has established  
   and made cash contributions to grantor trusts formed to purchase shares
   of the Company's common stock to fund the MRP and SOP. 
   
   
3.EARNINGS PER SHARE
   
   Earnings per share for the period from December 23, 1996, the date
   of Conversion, to June 30, 1997, has been computed based on
   the earnings during that period and on the weighted average number
   of shares of common stock outstanding during that period.
   Common stock outstanding is comprised of issued shares less
   unallocated Employee Stock Ownership Plan ("ESOP") shares and 82,500
   shares purchased by the grantor trusts for the MRP and SOP.
   The weighted average number of shares used for the period from
   December 23, 1996 through June 30, 1997 was 1,006,796.


4.ACCOUNTING PRONOUNCEMENTS
 
   In June 1996, the Financial Accounting Standards Board (FASB) issued
   Statement of Financial Accounting Standards (SFAS) No. 125, Accounting
   for Transfers and Servicing of Financial Assets and Extinquishments of
   Liabilities.  SFAS No. 125 provides accounting and reporting
   standards for transfers and servicing of financial assets and 
   extinquishments of liabilities based on consistent application of a
   financial-components approach that focuses on control.  Under that
   approach, after a transfer of financial assets, an entity recognizes
   the financial and servicing assets it controls and the liabilites it
   has incurred, derecognizes financial assets when control has been
   surrendered, and derecognizes liabilities when extinquished.

   This statement is effective for transfers and servicing of financial
   assets and extinquishments of liabilities occurring after December
   31, 1996, and is to be applied prospectively.  Earlier or retroactive
   application is not permitted.  The Company adopted the provisions of
   the Standard on January 1, 1997.  Based on the Company's current
   operating activities, the adoption of this statement did not have an
   impact on the Company's financial condition or results of operations.


   In February 1997, the Financial Accounting Standards Board (FASB) issued
   Statement of Financial Accounting Standards (SFAS) No. 128, Earnings per
   Share.  This Statement establishes standards for computing and presenting
   earnings per share (EPS) and applies to entities with publicly held
   common stock or potential common stock.  This Statement simplifies the
   standards for computing earnings per share previously found in APB
   Opinion No. 15, Earnings per Share, and makes them comparable to
   international EPS standards.  It replaces the presentation of primary
   EPS with a presentation of basic EPS and requires dual presentation of
   basic and diluted EPS on the face of the income statement for all 
   entities with complex capital structures and requires a reconcilation of
   the numerator and denominator of the basic EPS computation to the
   numerator and denominator of the diluted EPS computation.

   This Statement is effective for financial statements issued for periods
   ending after December 15, 1997, including interim periods; earlier
   application is not permitted.  This Statement requires restatement of
   all prior-period EPS data presented.  The Company will adopt the 
   Statement at fiscal year-end 1998.  Basic and diluted earnings per share
   under SFAS No. 128 would be identical to earnings per share as presented
   in the financial statements.

   In June 1997, the Financial Accounting Standards Board issued Statement 
   of Financial Accounting Standards No. 130, "Reporting of Comprehensive
   Income" (SFAS 130), which establishes 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 a financial statement that is 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 provided for comparative purposes is 
   required.

   In June 1997, the Financial Accounting Standards Board issued Statement
   of Financial Accounting Standard No. 131, "Disclosures about Segments of
   an Enterprise and Related Information" (SFAS 131), which 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 services, geographic areas, and major customers.  This
   statement requires the reporting of financial and descriptive 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.


 
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 June 30, 1997 and
September 30, 1996.  Total assets increased by $6.9 million, or 10.9%,
from $63.4 million at September 30, 1996 to $70.4 million at June
30, 1997.  The increase in total assets was primarily attributable to
a $3.4 million increase in cash, $1.1 million increase in loans and
$5.0 million increase in securities available for sale which was
partially offset by a $2.5 million decrease in securities held to maturity.
This asset growth was funded by the net proceeds received by the Company
from its initial public offering.

      Total deposits decreased by $2.1 million from $57.1 million at
September 30, 1996 to $55.0 million at June 30, 1997.  The
decrease was primarily attributable to deposits being used by
customers to purchase stock in the Company's initial public offering.

      Comparison of Results of Operations for the Nine Months Ended
June 30, 1997 and 1996.  The Company reported net income for the
nine months ended June 30, 1997 of $575,000 as compared to $419,000
for the nine months ended June 30, 1996.

      Net Interest Income.  Net interest income for the nine months
ended June 30, 1997 amounted to $1,928,000 as compared to $1,529,000
for the nine months ended June 30, 1996.  Total interest income
increased slightly during the nine months ended June 30, 1997 as
compared to the prior year.  This increase resulted primarily from
depositing the proceeds from the offering in interest bearing accounts.
Total interest expense decreased during the nine months ended June 30, 1997.
This decrease resulted primarily from a decrease in average deposits
between the periods.

      Provision for Loan Losses.  A provision for loan losses was
made during the nine months ended June 30, 1997 and 1996 of $5,000
and $6,000, respectively.  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.

      Noninterest Expense.  Noninterest expense for the nine months ended
June 30, 1997 amounted to $1,220,000 as compared to $1,118,000 for the nine
months ended June 30, 1996.  The $102,000, or 9.1%, 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.

      Provision for Income Taxes.  Income tax expense for the nine
months ended June 30, 1997 increased by $98,000 to $309,000 
as compared to income tax expense of $211,000 for the nine months
ended June 30, 1996.  This increase is due to increased income before taxes.

     Comparison of Results of Operations for the Three Months Ended
June 30, 1997 and 1996.  The Company reported net income for the
three months ended June 30, 1997 of $211,000 as compared to $129,000
for the three months ended June 30, 1996.

     Net Interest Income.  Net interest income for the three months ended
June 30, 1997 amounted to $738,000 as compared to $555,000 for the three
months ended June 30, 1996.  Total interest income increased slightly
during the three months ended June 30, 1997 as compared to the prior year.
This increase resulted primarily from depositing the proceeds from the
offering in interest bearing accounts.  Total interest expense decreased
during the three months ended June 30, 1997.  This decrease resulted 
primarily from a decrease in average deposits between the periods.

     Provision for Loan Losses.  A provision for loan losses was made
during the three months ending June 30, 1997, and 1996, of $0 and
$2,000, respectively.  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 June 30, 1997 increased by $51,000 to $119,000 as compared to
income tax expense of $68,000 for the three months ended June 30, 1996.
This increase is due to increased income before income taxes.

     Noninterest Expense.  Noninterest expense for the three months ended
June 30, 1997 amounted to $484,000 as compared to $445,000 for the three
months ended June 30, 1996.  The $39,000, or 8.8%, 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 June 30, 1997 and September 30, 1996, 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
June 30, 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:        August 13, 1997    _____________________________________
                                William R. Faulk
                                President and Chief Executive Officer



Date:        August 13, 1997
                                _____________________________________
                                Beth B. Knight
                                Secretary and Treasurer




</TABLE>