EXHIBIT 99



|                      |  |                      
|--------------------- |  | ---------------------
|For Immediate Release |  | Contact: Gates Little
|                      |  | (256) 543-3860       
|                      |  | September 28, 2005   



THE SOUTHERN BANC
COMPANY, INC. ANNOUNCES

2005 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 $650,000, or $0.78 per basic and $0.76 per diluted share, for the year ended June 30, 2005, as compared to net income of $577,000, or $0.66 per basic and $0.63 per
diluted share, for the year ended June 30, 2004.



Gates
Little, President and Chief Executive Officer of the Company, stated that the increase in net income and earnings per share for the year ended June 30, 2005, was primarily attributable to an increase in non-interest income of approximately
$301,000, or 128.2%, offset in part by a decrease in the net interest margin of approximately $157,000 and an increase in non-interest expense of approximately $56,000. The increase 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. The decrease in the net interest margin was primarily attributable to a decrease in interest income of approximately $40,000 (primarily interest and dividends on securities),
and an increase in total interest expense of approximately $116,000, 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, 2005, the Company reported net income of $288,000, or $0.35 per basic and $0.34 per diluted share, as compared to net income of $121,000, or $0.14 per basic and diluted share. The increase in net income and earnings per
share for the three month period ended June 30, 2005, were primarily attributable to a gain on the sale of stock owned by the Company in its data processing service bureau of approximately $329,000, offset in part by a decrease in the net
interest margin of $44,000, an increase in provision for income tax of approximately $74,000 and an increase in non-interest expense of approximately $35,000 due to an operating system upgrade.



The Companys total assets at June 30, 2005 were $104.8 million, as
compared to $106.4 million at June 30, 2004. Total stockholders equity at June 30, 2005, was $16.7 million, or 15.9% 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)



---

THE SOUTHERN BANC COMPANY, INC.



Consolidated Statements of Financial Condition

June 30, 2005 and 2004



|                                                                                                              |  |      |             |   |      |             |  
|------------------------------------------------------------------------------------------------------------- |  | ---- | ----------- | - | ---- | ----------- | -
|                                                                                                              |  | 2005 |             |   | 2004 |            
|Assets                                                                                                        |  |      |             |   |      |             |  
|Cash and cash equivalents:                                                                                    |  |      |             |   |      |             |  
|Cash on hand and in other banks                                                                               |  | $    | 2,364,078   |   |      | 3,169,215   |  
|Interestbearing deposits in other banks                                                                      |  |      | 1,742,422   |   |      | 2,564,790   |  
|                                                                                                              |  |      |             |   |      |             |  
|Total cash and cash equivalents                                                                               |  |      | 4,106,500   |   |      | 5,734,005   |  
|                                                                                                              |  |     
|Securities available for sale, at fair value                                                                  |  |      | 59,403,333  |   |      | 56,717,031  |  
|                                                                                                              |  |     
|Securities held to maturity (fair value of $3,788,749 and $4,474,510, respectively)                           |  |      | 3,660,129   |   |      | 4,194,141   |  
|Federal Home Loan Bank stock                                                                                  |  |      | 508,900     |   |      | 792,300     |  
|Loans receivable, net of allowance for loan losses of $135,472and $144,298 , respectively                     |  |      | 35,530,975  |   |      | 37,476,587  |  
|Accrued interest and dividends receivable                                                                     |  |      | 440,952     |   |      | 439,616     |  
|Premises and equipment, net                                                                                   |  |      | 608,840     |   |      | 485,565     |  
|Prepaid expenses and other assets                                                                             |  |      | 551,744     |   |      | 514,140     |  
|                                                                                                              |  |      |             |   |      |             |  
|Total assets                                                                                                  |  | $    | 104,811,373 |   |      | 106,353,385 |  
|                                                                                                              |  |      |             |   |      |             |  
|Liabilities and Stockholders Equity                                                                          |  |      |             |   |      |             |  
|Deposits                                                                                                      |  | $    | 81,736,517  |   |      | 82,005,081  |  
|                                                                                                              |  |     
|Federal Home Loan Bank advances                                                                               |  |      | 6,083,334   |   |      | 6,916,667   |  
|Other liabilities                                                                                             |  |      | 288,579     |   |      | 178,970     |  
|                                                                                                              |  |      |             |   |      |             |  
|Total liabilities                                                                                             |  |      | 88,108,430  |   |      | 89,100,718  |  
|                                                                                                              |  |      |             |   |      |             |  
|Commitments and contingencies                                                                                 |  |      |             |   |      |             |  
|                                                                                                              |  |     
|Stockholders equity:                                                                                         |  |      |             |   |      |             |  
|                                                                                                              |  |     
|Preferred stock, par value $0.01 per share. Authorized 500,000shares; no shares issued and outstanding        |  |      |            |   |      |            |  
|Common stock, par value $0.01 per share. Authorized 3,500,000shares; issued 1,454,750 shares in 2005 and 2004 |  |      | 14,548      |   |      | 14,548      |  
|Additional paid-in capital                                                                                    |  |      | 13,997,847  |   |      | 13,910,384  |  
|Retained earnings                                                                                             |  |      | 11,696,782  |   |      | 11,340,830  |  
|Unearned compensation                                                                                         |  |      |            |   |      | (70,715     | )
|Shares held in trust, at cost, 49,355 and 34,799 shares in                                                    |  |      |             |   |      |             |  
|2005 and 2004, respectively                                                                                   |  |      | (868,350    | ) |      | (495,412    | )
|Treasury stock, at cost, 595,090 and 562,452 shares in                                                        |  |      |             |   |      |             |  
|2005 and 2004, respectively                                                                                   |  |      | (7,923,346  | ) |      | (7,346,782  | )
|Accumulated other comprehensive loss                                                                          |  |      | (214,538    | ) |      | (100,186    | )
|                                                                                                              |  |      |             |   |      |             |  
|Total stockholders equity                                                                                    |  |      | 16,702,943  |   |      | 17,252,667  |  
|                                                                                                              |  |      |             |   |      |             |  
|Total liabilities and stockholders equity                                                                    |  | $    | 104,811,373 |   |      | 106,353,385 |  
|                                                                                                              |  |      |             |   |      |             |  



---

THE SOUTHERN BANC COMPANY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Dollar Amounts in Thousands)



|                                                        |  |                            |        |                             |        |      |        |      |       
|------------------------------------------------------- |  | -------------------------- | ------ | --------------------------- | ------ | ---- | ------ | ---- | ------
|                                                        |  | Three Months EndedJune 30, |        | Twelve Months EndedJune 30,
|                                                        |  | 2005                       |        | 2004                        |        | 2005 |        | 2004
|INTEREST INCOME:                                        |  |                            |        |                             |        |      |        |      |       
|Interest and fees on loans                              |  | $                          | 509    |                             | 536    |      | 2,041  |      | 2,243 
|Interest and dividends on securities available for sale |  |                            | 658    |                             | 589    |      | 2,602  |      | 2,329 
|Interest and dividends on securities held to maturity   |  |                            | 59     |                             | 80     |      | 264    |      | 392   
|Other interest income                                   |  |                            | 19     |                             | 7      |      | 60     |      | 43    
|                                                        |  |                            |        |                             |        |      |        |      |       
|Total interest income                                   |  |                            | 1,245  |                             | 1,212  |      | 4,967  |      | 5,007 
|                                                        |  |                            |        |                            
|INTEREST EXPENSE:                                       |  |                            |        |                             |        |      |        |      |       
|Interest on deposits                                    |  |                            | 511    |                             | 428    |      | 1,937  |      | 1,780 
|Interest on borrowings                                  |  |                            | 71     |                             | 77     |      | 299    |      | 340   
|                                                        |  |                            |        |                             |        |      |        |      |       
|Total interest expense                                  |  |                            | 582    |                             | 505    |      | 2,236  |      | 2,120 
|                                                        |  |                            |        |                             |        |      |        |      |       
|Net interest income                                     |  |                            | 663    |                             | 707    |      | 2,731  |      | 2,887 
|Provision for loan losses                               |  |                            | 10     |                             |       |      | 15     |      | 11    
|                                                        |  |                            |        |                             |        |      |        |      |       
|Net interest income after provision for loan losses     |  |                            | 653    |                             | 707    |      | 2,716  |      | 2,876 
|                                                        |  |                            |        |                             |        |      |        |      |       
|NON-INTEREST INCOME:                                    |  |                            |        |                             |        |      |        |      |       
|Customer Service Fees                                   |  |                            | 34     |                             | 30     |      | 122    |      | 125   
|Gain on sale of securities                              |  |                            | 329    |                             |       |      | 362    |      | 63    
|Miscellaneous Income, net                               |  |                            | 11     |                             | 14     |      | 52     |      | 47    
|                                                        |  |                            |        |                             |        |      |        |      |       
|Total non-interest income                               |  |                            | 374    |                             | 44     |      | 536    |      | 235   
|                                                        |  |                            |        |                             |        |      |        |      |       
|NON-INTEREST EXPENSE:                                   |  |                            |        |                             |        |      |        |      |       
|Salaries and employee benefits                          |  |                            | 329    |                             | 323    |      | 1,272  |      | 1,244 
|Office building and equipment expenses                  |  |                            | 55     |                             | 19     |      | 178    |      | 81    
|Professional Service Expense                            |  |                            | 48     |                             | 49     |      | 200    |      | 238   
|Data Processing Expense                                 |  |                            | 64     |                             | 53     |      | 237    |      | 213   
|Other operating expense                                 |  |                            | 80     |                             | 97     |      | 322    |      | 377   
|                                                        |  |                            |        |                             |        |      |        |      |       
|Total non-interest expense                              |  |                            | 576    |                             | 541    |      | 2,209  |      | 2,153 
|                                                        |  |                            |        |                             |        |      |        |      |       
|Income (loss) before income taxes                       |  |                            | 451    |                             | 210    |      | 1,043  |      | 958   
|Provision for income taxes                              |  |                            | 163    |                             | 89     |      | 393    |      | 381   
|                                                        |  |                            |        |                             |        |      |        |      |       
|Net income                                              |  | $                          | 288    |                             | 121    |      | 650    |      | 577   
|                                                        |  |                            |        |                             |        |      |        |      |       
|Earnings per share - Basic                              |  | $                          | 0.35   |                             | 0.14   |      | 0.78   |      | 0.66  
|Earnings per share - Diluted                            |  | $                          | 0.34   |                             | 0.14   |      | 0.76   |      | 0.63  
|                                                        |  |                            |        |                            
|Dividends declared per share                            |  | $                          | 0.0875 |                             | 0.0875 |      | 0.3500 |      | 0.3500



---

THE SOUTHERN BANC COMPANY, INC.

Consolidated Statements of Cash Flows

Years ended June 30, 2005 and 2004



|                                                                                 |  |      |             |   |      |             |  
|-------------------------------------------------------------------------------- |  | ---- | ----------- | - | ---- | ----------- | -
|                                                                                 |  | 2005 |             |   | 2004 |            
|Cash flows from operating activities:                                            |  |      |             |   |      |             |  
|Net income                                                                       |  | $    | 649,596     |   |      | 577,354     |  
|Adjustments to reconcile net income to net cash provided byoperating activities: |  |      |             |   |      |             |  
|Depreciation                                                                     |  |      | 60,125      |   |      | 44,989      |  
|Amortization of premiums on securities, net                                      |  |      | 71,725      |   |      | 253,465     |  
|Amortization of intangible asset                                                 |  |      |            |   |      | 12,115      |  
|Amortization of unearned compensation                                            |  |      | 158,178     |   |      | 177,934     |  
|Provision for loan losses                                                        |  |      | 15,000      |   |      | 11,600      |  
|Deferred income tax provision                                                    |  |      | 15,888      |   |      | 1,230       |  
|Gain on loans held for sale                                                      |  |      | (12,598     | ) |      | (18,953     | )
|Proceeds from sale of loans held for sale                                        |  |      | 1,849,738   |   |      | 1,265,653   |  
|Loans originated for sale                                                        |  |      | (1,837,140  | ) |      | (1,196,700  | )
|Gain on sale of available for sale securities                                    |  |      | (358,231    | ) |      | (62,490     | )
|Change in assets and liabilities:                                                |  |      |             |   |      |             |  
|Decrease (increase) in accrued interest and dividends receivable                 |  |      | (1,336      | ) |      | 43,343      |  
|Decrease (increase) in prepaid expenses and other assets                         |  |      | (37,604     | ) |      | 730         |  
|Increase in other liabilities                                                    |  |      | 109,609     |   |      | 977         |  
|                                                                                 |  |      |             |   |      |             |  
|Net cash provided by operating activities                                        |  |      | 682,950     |   |      | 1,111,247   |  
|                                                                                 |  |      |             |   |      |             |  
|Cash flows from investing activities:                                            |  |      |             |   |      |             |  
|Purchase of securities available for sale                                        |  |      | (19,707,703 | ) |      | (29,144,626 | )
|Purchase of securities held to maturity                                          |  |      | (1,000,000  | ) |      |            |  
|Proceeds from maturities and principal payments on securitiesavailable for sale  |  |      | 14,225,146  |   |      | 21,172,190  |  
|Proceeds from sales of securities available for sale                             |  |      | 2,974,330   |   |      | 2,983,710   |  
|Proceeds from maturities and principal payments on securitiesheld to maturity    |  |      | 1,542,949   |   |      | 3,030,968   |  
|Sale of Federal Home Loan Bank stock                                             |  |      | 283,400     |   |      | 93,700      |  
|Loan repayments, net                                                             |  |      | 1,930,612   |   |      | 1,429,420   |  
|Capital expenditures, net                                                        |  |      | (183,400    | ) |      | (23,778     | )
|                                                                                 |  |      |             |   |      |             |  
|Net cash (used in) provided by investing activities                              |  |      | 65,334      |   |      | (458,416    | )
|                                                                                 |  |      |             |   |      |             |  
|Cash flows from financing activities:                                            |  |      |             |   |      |             |  
|Purchase of treasury stock                                                       |  |      | (576,564    | ) |      | (1,164,391  | )
|Purchase of shares of common stock to fund Trust                                 |  |      | (863,826    | ) |      |            |  
|Federal Home Loan Bank (repayments) advances                                     |  |      | (833,333    | ) |      | (833,333    | )
|Cash dividends paid                                                              |  |      | (293,644    | ) |      | (318,548    | )
|Decrease in deposits, net                                                        |  |      | (268,564    | ) |      | (2,352,228  | )
|Proceeds from short-term borrowings                                              |  |      | 55,000      |   |      |            |  
|Proceeds from exercise of stock options                                          |  |      | 405,142     |   |      | 356,729     |  
|                                                                                 |  |      |             |   |      |             |  
|Net cash used in financing activities                                            |  |      | (2,375,789  | ) |      | (4,311,771  | )
|                                                                                 |  |      |             |   |      |             |  
|Net decrease in cash and cash equivalents                                        |  |      | (1,627,505  | ) |      | (3,658,940  | )
|                                                                                 |  |     
|Cash and cash equivalents, beginning of year                                     |  |      | 5,734,005   |   |      | 9,392,945   |  
|                                                                                 |  |      |             |   |      |             |  
|Cash and cash equivalents, end of year                                           |  | $    | 4,106,500   |   |      | 5,734,005   |  
|                                                                                 |  |      |             |   |      |             |  
|Supplemental cash flow information:                                              |  |      |             |   |      |             |  
|Cash paid during the year for:                                                   |  |      |             |   |      |             |  
|Income taxes, net of refund received                                             |  | $    | 279,168     |   |      | 357,785     |  
|Interest                                                                         |  |      | 2,234,355   |   |      | 2,124,322   |