The Southern Banc Company, Inc. Declares No Dividend in the Fourth Quarter 2009

The Board of Directors of The Southern Banc Company, Inc. (OTCBB: SRNN) has announced that it will not pay a dividend in its fiscal fourth quarter of 2009. The decision not to pay a dividend reflects the Board’s conservative management approach and desire to preserve capital in the current national economic uncertainty. While the Board believes that the Company is more than adequately capitalized at over 14%, the Board will continue to evaluate the Company’s earnings and capital plan to determine the future payment of dividends.

According to President Gates Little, the Board “considered the payment of dividends in excess of the earnings of the company to be against the best interest of the shareholders, regardless of the large amount of capital the Company holds. We remain a safe and sound company and believe that preservation of capital is the only prudent path to follow.”

The Company’s sole holding, The Southern Bank Company, maintains capital levels well in excess of those considered to be “Well Capitalized.”

Information contained in this press release, other than historical information, may be considered forward-looking in nature and is subject to various risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected.

The Southern Bank Company has four offices located in Gadsden, Albertville, Guntersville, and Centre, Alabama. Additional information about our banking services and the Company is available on our website, http://www.sobanco.com.