EXHIBIT 99.1

                         THE SOUTHERN BANC COMPANY, INC.

FOR IMMEDIATE RELEASE                        FOR MORE INFORMATION CONTACT
July 15, 1999                                Mr. James B. Little, Jr.

                                             Chairman of the Board and President
                                             (256) 543-3860

                         THE SOUTHERN BANC COMPANY, INC.
                         ADOPTS SHAREHOLDER RIGHTS PLAN

Gadsden,  Alabama - July 15, 1999 - The Board of Directors of The Southern  Banc
Company,  Inc.  (AMEX:  SRN) adopted a shareholder  rights plan (the "Plan") and
declared a dividend  distribution  of one common  stock  purchase  right on each
outstanding share of the Company's common stock.

Mr. James B. Little,  Jr.,  Chairman of the Board and  President of the Company,
stated:  "The Board of Directors  determined that the adoption of the Plan is an
effective and  reasonable  method to protect our  stockholders  against  certain
coercive or unfair takeover  attempts.  We are  particularly  concerned that the
future benefits of our current  business plan could be denied to stockholders by
an opportunistic,  undervalued  acquisition of the Company. The Plan is designed
to ensure that the  Company's  stockholders  are not deprived of their rights to
share in the Company's long-term potential, while not preventing offers in which
all stockholders are offered a fair price for their shares."

The Plan provides for the  distribution  of one common stock  purchase right for
each  outstanding  share of the Company's  common stock on August 2, 1999.  Each
stockholder is automatically entitled to the rights and no physical distribution
of new  certificates  will be made at this time. The distribution of rights will
not be taxable to stockholders.

Under the Plan, the rights to purchase shares of the Company's common stock will
be exercisable only if (i) a person or group acquires, or announces an intention
to acquire,  15% or more of the  Company's  common  stock or (ii) the  Company's
Board of  Directors  declares  a 10% or  greater  stockholder  to be an  Adverse
Person,  as  defined in the Plan.  Upon the  occurrence  of  certain  triggering
events, each right would entitle the holder to purchase additional shares of the
Company's common stock, or securities of a company that acquires the Company, at
a 50% discount to their respective market values at such time.

At  March  31,  1999,  the  Company  had  total  assets  of  $99.8  million  and
stockholders'  equity of $17.9 million, or 17.9% of total assets. The Company is
the holding company for First Federal  Savings and Loan  Association of Gadsden,
which operates four banking offices in Gadsden, Albertville,  Guntersville,  and
Centre, Alabama.