U.S.
Securities and Exchange Commission
x
Annual
Report Pursuant to Section 15(d) of the Securities Exchange Act of
1934
Or
o
Transition
Report Pursuant to Section 15(d) of the Securities Exchange Act of
1934
|
For the
fiscal year ended December 31, 2009
|
Commission file
number 000-33227
|
Southern
Community Bank 401(k) Retirement Plan
(Full
title of the plan)
Southern
Community Financial Corporation
(Name of
issuer of securities)
4605
Country Club Road, Winston-Salem, NC 27104
(Address
of issuer’s principal executive offices)
Southern
Community Bank 401(k)
Retirement
Plan
Financial
Statements and
Supplemental
Schedule
As of
December 31, 2009 and 2008 and for the
Year
Ended December 31, 2009
SOUTHERN
COMMUNITY BANK 401(K) RETIREMENT PLAN
TABLE
OF CONTENTS
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Page
No.
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Report
of Independent Registered Accounting Firm
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1
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Financial
Statements
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Statements
of Net Assets Available for Benefits
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2
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Statement
of Changes in Net Assets Available for Benefits
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3
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Notes
to Financial Statements
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4
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Supplemental
Schedule
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Schedule
H, Line 4i - Schedule of Assets (Held at End of Year)
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12
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INDEPENDENT
AUDITOR’S REPORT
To the
Plan Administrator
Southern
Community Bank 401(k) Retirement Plan
Winston-Salem,
North Carolina
We have
audited the accompanying statements of net assets available for benefits of the
Southern Community Bank 401(k) Retirement Plan as of December 31, 2009 and 2008,
and the related statement of changes in net assets available for benefits for
the year ended December 31, 2009. These financial statements are the
responsibility of the Plan’s management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We
conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. We were
not engaged to perform an audit of the Plan’s internal control over financial
reporting. Our audit included consideration of internal control over
financial reporting as a basis for designing audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Plan’s internal control over financial
reporting. Accordingly, we express no such opinion. An
audit also includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our
opinion, the financial statements referred to above present fairly, in all
material respects, the net assets available for benefits of the Plan as of
December 31, 2009 and 2008, and the changes in net assets available for benefits
for the year ended December 31, 2009 in conformity with accounting principles
generally accepted in the United States of America.
Our
audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedule of assets (held
at end of year) is presented for the purpose of additional analysis and is not a
required part of the basic financial statements, but is supplementary
information required by the Department of Labor’s Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974. This supplemental schedule is the responsibility of the Plan’s management.
The supplemental schedule has been subjected to the auditing procedures applied
in the audits of the basic financial statements and, in our opinion, is fairly
stated , in all material respects, in relation to the basic financial statements
taken as a whole.
Raleigh,
North Carolina
June 29,
2010
SOUTHERN
COMMUNITY BANK 401(K) RETIREMENT PLAN
STATEMENTS
OF NET ASSETS AVAILABLE FOR BENEFITS
December
31, 2009 and 2008
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2009
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2008
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ASSETS
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Investments,
at fair value:
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|
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|
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Mutual
funds
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$
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6,285,138
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|
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$
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4,206,357
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|
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Guaranteed
Investment Contract (at fair value)
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|
|
944,671
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|
|
|
665,983
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|
|
Employer
stock
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1,413,343
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|
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1,723,206
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Money
market funds
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119,965
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|
|
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195,509
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Participant
loans
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235,589
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|
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197,544
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Total
investments
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8,998,706
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6,988,599
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Receivables:
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Employer
contributions
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6,156
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-
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Participant
contributions
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66,216
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-
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Total
receivables
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72,372
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-
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TOTAL
ASSETS
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9,071,078
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6,988,599
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Net
assets available for benefits at fair value
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9,071,078
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6,988,599
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Adjustment
from fair value to contract value for
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fully
benefit-responsive investment contracts
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(136
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)
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61,736
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NET
ASSETS AVAILABLE FOR BENEFITS
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$
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9,070,942
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$
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7,050,335
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The
accompanying notes are an integral part of these financial
statements.
SOUTHERN
COMMUNITY BANK 401(K) RETIREMENT PLAN
STATEMENT
OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
For
the Year Ended December 31, 2009
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ADDITIONS
TO NET ASSETS ATTRIBUTED TO:
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Investment
income:
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Interest
and dividends
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$
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35,882
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Net
appreciation in fair value of investments
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613,584
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TOTAL
INVESTMENT INCOME
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649,466
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Contributions:
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Employer
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679,368
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Participant
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1,192,339
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Rollovers
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22,730
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TOTAL
CONTRIBUTIONS
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1,894,437
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TOTAL
ADDITIONS
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2,543,903
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DEDUCTIONS
TO NET ASSETS ATTRIBUTED TO:
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Benefits
paid to participants
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518,097
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Administrative
expenses
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5,199
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TOTAL
DEDUCTIONS
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523,296
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NET
INCREASE
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2,020,607
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NET
ASSETS AVAILABLE FOR BENEFITS:
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BEGINNING
OF YEAR
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7,050,335
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END
OF YEAR
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$
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9,070,942
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The
accompanying notes are an integral part of these financial
statements.
SOUTHERN
COMMUNITY BANK 401(k) RETIREMENT PLAN
NOTES
TO FINANCIAL STATEMENTS
December
31, 2009 and 2008 and for the year ended December 31,
2009
NOTE
A - DESCRIPTION OF PLAN
Effective
May 1, 2004, the Southern Community Bank 401(k) Retirement Plan (the “Plan”)
came into existence as a result of the merger of the previous Southern Community
Bank 401(k) Plan and The Community Bank Employees’ 401(k) Plan. The
Plan was most recently amended effective on September 1, 2009. The
following description of the Plan provides only general
information. Participants should refer to the plan document for a
more complete description of the Plan’s provisions.
General
- The Plan is a defined contribution plan covering all full-time employees of
Southern Community Financial Corporation and its subsidiaries (“Company”) who
have three months of service and are age twenty-one or older. The
Board of Directors of the Company controls and manages the operation and
administration of the Plan. TD Ameritrade serves as the trustee of
the Plan. The Plan is subject to the provisions of the Employee
Retirement Income Security Act of 1974 (“ERISA”). The Company’s wholly-owned
subsidiary, Southern Community Bank and Trust, is the Plan Sponsor.
Contributions
- Each year, participants may contribute up to 25% of pretax annual
compensation, as defined in the Plan, subject to certain Internal Revenue Code
(“IRC”) limitations. Participants who have attained age 50 before the
end of the Plan year are eligible to make catch-up
contributions. Participants may also contribute amounts representing
distributions from other qualified retirement plans. Participants
direct the investment of their contributions into various investment options
offered by the Company. Prior to August 1, 2009, the Company matched
100% of the first 6% of base compensation that a participant contributed to the
Plan. Effective August 1, 2009, the Company reduced its employer
match to 50% of the first 6% of base compensation that a participant contributes
to the plan. Additionally, the Company may make a discretionary
matching contribution. The Plan made no discretionary contributions
for the year ended December 31, 2009. Contributions are subject to
certain limitations.
Investment
Options
- Participants direct the investment of their contributions into
various investment options offered by the Plan. The Plan currently
offers mutual funds, the Company’s common stock and an insurance investment
contract as investment options for participants. In addition,
participants may utilize an individual self-directed brokerage option, through
which participants are able to invest in a variety of securities including
stocks, bonds, mutual funds and government securities in accordance with the
plan document.
Participant
Accounts
- Each participant’s account is credited with the participant’s
contribution and allocations of the Company’s contributions, and plan earnings,
and may be charged with an allocation of administrative
expenses. Allocations are based on participant earnings or account
balances, as defined. The benefit to which a participant is entitled
is the benefit that can be provided from the participant’s vested
account.
Vesting
- Participants are immediately vested in their contributions plus actual
earnings thereon and any rollovers into their individual
accounts. Vesting in the Company’s matching and discretionary
contribution portion of their accounts plus actual earnings thereon is based on
years of continuous service. With respect to each matching and
discretionary contribution, participants vest 20% per year of service and are
100% vested after 5 years of credited service.
SOUTHERN
COMMUNITY BANK 401(k) RETIREMENT PLAN
NOTES
TO FINANCIAL STATEMENTS
December
31, 2009 and 2008 and for the year ended December 31,
2009
NOTE
A - DESCRIPTION OF PLAN (Continued)
Participant
Loans
- Participants may borrow from their fund accounts a minimum of
$1,000 up to a maximum equal to the lesser of $50,000 or 50% of their vested
account balance. The loans are secured by the balance in the
participant’s account and bear interest at rates which are commensurate with
local prevailing rates as determined by the plan administrator. At
December 31, 2009, interest rates on outstanding loans ranged from 4.25% to
9.25%. Principal and interest is paid ratably through payroll
deductions.
Payment
of Benefits
- On termination of service due to death, disability or
retirement, a participant may elect to receive an amount equal to the value of
the participant’s vested interest in his or her account in either a lump-sum
amount or various installment and annuity options as provided by the
Plan. For termination of service due to other reasons, a participant
may receive the value of the vested interest in his or her account as a lump-sum
distribution.
Forfeitures
- At December 31, 2009 and 2008, forfeited non-vested accounts totaled $3,202
and $16,371, respectively. These accounts will be used to reduce
employer contributions and then administrative expenses. During 2009,
forfeitures of $32,477 were used to offset employer contributions.
NOTE
B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of
Accounting
- The accompanying financial statements are prepared under the
accrual basis in accordance with accounting principles generally accepted in the
United States of America.
Investment
contracts held by a defined-contribution plan are required to be reported at
fair value. However, contract value is the relevant measurement
attribute for that portion of the net assets available for benefits of a
defined-contribution plan attributable to fully benefit-responsive investment
contracts because contract value is the amount participants would receive if
they were to initiate permitted transactions under the terms of the
Plan. The Statement of Net Assets Available for Benefits presents the
fair value of the investment contracts as well as the adjustment to the fully
benefit-responsive investment contracts from fair value to contract
value. The Statement of Changes in Net Assets Available for Benefits
is prepared on a contract value basis.
Estimates
- The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect certain reported
amounts of assets and liabilities and changes therein and disclosure of
contingent assets and liabilities. Actual results may differ from
those estimates.
Investment
Valuation and Income Recognition
– Investments are reported at fair
value. Fair value is the price that would be received to sell an
asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date. See Note D for discussion of
fair value measurements.
Purchases
and sales of securities are recorded on a trade-date basis. Interest
income is recorded on an accrual basis. Dividends are recorded on the
ex-dividend date. Net appreciation includes the Plan’s gains and
losses on investments bought and sold as well as held during the
year.
SOUTHERN
COMMUNITY BANK 401(k) RETIREMENT PLAN
NOTES
TO FINANCIAL STATEMENTS
December
31, 2009 and 2008 and for the year ended December 31,
2009
NOTE
B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Payment
of Benefits
- Benefits are recorded upon distribution. There
were no amounts allocated to accounts of persons who have elected to withdraw
from the Plan but have not yet been paid at December 31, 2009 and 2008,
respectively.
Administrative
Expenses
– The Plan’s administrative expenses are paid by either the Plan
or the Company, as provided by the plan document. Certain
administrative functions are performed by employees of the
Company. No such employee receives compensation from the
Plan.
NOTE
C - Investments
The
following table presents investments that represent more than 5% or more of the
Plan’s net assets at December 31:
|
|
|
2009
|
|
|
2008
|
|
|
Investments
at fair value:
|
|
|
|
|
|
|
|
Southern
Community Financial Corp Common Stock
|
|
$
|
1,413,343
|
|
|
$
|
1,723,206
|
|
|
Franklin
Templeton Moderate Target Fund
|
|
|
702,778
|
|
|
|
561,475
|
|
|
American
Growth Fund
|
|
|
1,591,834
|
|
|
|
1,031,387
|
|
|
Fundamental
Investors Fund
|
|
|
1,114,980
|
|
|
|
759,609
|
|
|
Capital
World Growth & Income Fund
|
|
|
859,636
|
|
|
|
526,321
|
|
|
Columbia
Acorn Fund Class A
|
|
|
543,095
|
|
|
|
*
|
|
|
Van
Kampen Small Cap Class A
|
|
|
604,860
|
|
|
|
377,618
|
|
|
MetLife
Stable Value Fund
|
|
|
944,671
|
|
|
|
665,983
|
|
|
PIMCO
Total Return Fund Class A
|
|
|
556,630
|
|
|
|
403,324
|
|
* Amount
represents less than 5% of net assets
During
the year ended December 31, 2009, the Plan’s investments (including gains and
losses on investments bought and sold, as well as held during the year)
appreciated (depreciated) in value as follows:
|
Employer
common stock
|
|
$
|
(699,707
|
)
|
|
Mutual
funds
|
|
|
1,313,291
|
|
|
Net
appreciation in fair value of investments
|
|
$
|
613,584
|
|
NOTE
D - FAIR VALUE MEASUREMENTS
The Plan
has established a framework for measuring fair value. This framework
provides a fair value hierarchy that prioritizes the inputs to valuation
techniques used to measure fair value. The hierarchy gives the
highest priority to unadjusted quoted prices in active markets for identical
assets or liabilities (level 1 measurements) and the lowest priority to
unobservable inputs (level 3 measurements). The three levels of the
fair value hierarchy are described as follows:
Level 1 -
Inputs to the valuation methodology are unadjusted quoted prices for identical
assets or liabilities in active markets that the Plan has the ability to
access.
SOUTHERN
COMMUNITY BANK 401(k) RETIREMENT PLAN
NOTES
TO FINANCIAL STATEMENTS
December
31, 2009 and 2008 and for the year ended December 31,
2009
NOTE
D - FAIR VALUE MEASUREMENTS (Continued)
Level 2 -
Inputs to the valuation methodology include:
|
|
·
|
quoted
prices for similar assets or liabilities in active
markets;
|
|
|
·
|
quoted
prices for identical or similar assets or liabilities in inactive
markets;
|
|
|
·
|
inputs
that are derived principally from or corroborated by observable market
data by
correlation
or other means.
|
If the
asset or liabilities has a specified (contractual) term, the level 2 input must
be observable for substantially the full term of the asset or
liability.
Level 3 -
Inputs to the valuation methodology are unobservable and significant to the fair
value measurement.
The
asset’s or liability’s fair value measurement level within the fair value
hierarchy is based on the lowest level of any input that is significant to the
fair value measurements. Valuation techniques maximize the use of
observable inputs and minimize the use of unobservable inputs.
Following
is a description of the valuation methodologies used for assets measured at fair
value. There have been no changes in the methodologies used at
December 31, 2009 and 2008.
Common
Stocks
These
investments are valued at the closing price reported on the active market on
which the individual securities are traded and are classified within level 1 of
the valuation hierarchy.
Mutual
Funds
These
investments are public investment vehicles valued using the Net Asset Value
(NAV) provided by the administrator of the fund. The NAV is based on
the value of the underlying assets owned by the fund, minus its liabilities, and
then divided by the number of shares outstanding. The NAV is a quoted
price in an active market and classified within level 1 of the valuation
hierarchy.
Investment
Contracts
The
investment contract is valued at fair value by discounting the related cash
flows based on current yields of similar instruments with comparable durations
considering the creditworthiness of the issuer. The contracts are
classified within level 3 of the valuation hierarchy.
Money
Market Funds
These
investments are public investment vehicles valued using $1 for the
NAV. The money market funds are classified within level 1 of the
valuation hierarchy.
Loans
to Participants
Loans to
participants are valued at amortized cost, which approximates fair value and are
classified within level 3 of the valuation hierarchy.
The
preceding methods described may produce a fair value calculation that may not be
indicative of net realizable value or reflective of future
values. Furthermore, although the Plan believes its valuation methods
are appropriate and consistent with other market participants, the use of
different methodologies or assumptions to determine the fair value of certain
financial instruments could result in a different fair value measurement at the
reporting date.
SOUTHERN
COMMUNITY BANK 401(k) RETIREMENT PLAN
NOTES
TO FINANCIAL STATEMENTS
December
31, 2009 and 2008 and for the year ended December 31,
2009
NOTE
D - FAIR VALUE MEASUREMENTS (Continued)
The
following table sets forth by level, within the fair value hierarchy, the Plan’s
assets at fair value as of December 31, 2009:
|
|
|
As
of December 31, 2009
|
|
|
|
|
Level
1
|
|
|
Level
2
|
|
|
Level
3
|
|
|
Fair
Value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mutual
funds
|
|
$
|
6,285,138
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
6,285,138
|
|
|
Guaranteed
Investment Contract
|
|
|
-
|
|
|
|
-
|
|
|
|
944,671
|
|
|
|
944,671
|
|
|
Employer
Stock
|
|
|
1,413,343
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,413,343
|
|
|
Money
market funds
|
|
|
119,965
|
|
|
|
-
|
|
|
|
-
|
|
|
|
119,965
|
|
|
Participant
loans
|
|
|
-
|
|
|
|
-
|
|
|
|
235,589
|
|
|
|
235,589
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
7,818,446
|
|
|
$
|
-
|
|
|
$
|
1,180,260
|
|
|
$
|
8,998,706
|
|
The
following table sets forth by level, within the fair value hierarchy, the Plan’s
assets at fair value as of December 31, 2008:
|
|
|
As
of December 31, 2008
|
|
|
|
|
Level
1
|
|
|
Level
2
|
|
|
Level
3
|
|
|
Fair
Value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mutual
funds
|
|
$
|
4,206,357
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
4,206,357
|
|
|
Guaranteed
Investment Contract
|
|
|
-
|
|
|
|
-
|
|
|
|
665,983
|
|
|
|
665,983
|
|
|
Employer
Stock
|
|
|
1,723,206
|
|
|
|
-
|
|
|
|
-
|
|
|
|
1,723,206
|
|
|
Money
market funds
|
|
|
195,509
|
|
|
|
-
|
|
|
|
-
|
|
|
|
195,509
|
|
|
Participant
loans
|
|
|
-
|
|
|
|
-
|
|
|
|
197,544
|
|
|
|
197,544
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
6,125,072
|
|
|
$
|
-
|
|
|
$
|
863,527
|
|
|
$
|
6,988,599
|
|
The table
below sets forth a summary of changes in the fair value of the Plan’s Level 3
assets for the year ended December 31, 2009:
|
|
|
Level
3 Assets
|
|
|
|
|
Year
Ended December 31, 2009
|
|
|
|
|
Guaranteed
|
|
|
|
|
|
|
|
Investment
|
|
|
Participant
|
|
|
|
|
Contract
|
|
|
Loans
|
|
|
Balance,
beginning of year
|
|
$
|
665,983
|
|
|
$
|
197,544
|
|
|
Investment
income
|
|
|
26,675
|
|
|
|
14,291
|
|
|
New
loans issued, net of loan repayments
|
|
|
-
|
|
|
|
23,754
|
|
|
Purchases,
net of sales/distributions
|
|
|
252,013
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance,
end of year
|
|
$
|
944,671
|
|
|
$
|
235,589
|
|
SOUTHERN
COMMUNITY BANK 401(k) RETIREMENT PLAN
NOTES
TO FINANCIAL STATEMENTS
December
31, 2009 and 2008 and for the year ended December 31,
2009
NOTE
E – FULLY BENEFIT RESPONSIVE INVESTMENT CONTRACT
The plan
has entered into a fully benefit-responsive investment contract with The MetLife
Insurance Company (“MetLife”). In a MetLife managed guaranteed
investment contract, the assets are invested in a MetLife separate
account. MetLife will guarantee principal and accrued interest, based
on credited interest rates, for participant-initiated withdrawals as long as the
contract remains active. Interest is credited to the contract at
interest rates that reflect the performance of the underlying
portfolio.
MetLife
will reset the interest rate quarterly based on market conditions, the
investment of new monies and by amortizing the difference between the market
value of the portfolio and the guaranteed value over the weighted average
duration of the managed investments. Participants will receive the
principal and accrued earnings credited to their accounts on withdrawal for
allowed events. These events include transfers to other Plan
investment options, and payments because of retirement, termination of
employment, disability, death and in-service withdrawals as permitted by the
Plan.
As
described in Note B, because the guaranteed investment contract is fully
benefit-responsive, contract value is the relevant measurement attribute for
that portion of the net assets available for benefits attributable to the
guaranteed investment contract. Contract value, as reported to the
Plan by MetLife Insurance Company, represents contributions made under the
contract, plus earnings, less participant withdrawals and administrative
expenses. Participants may ordinarily direct the withdrawal or
transfer of all or a portion of their investment at contract value.
There are
no reserves against contract value for credit risk of the contract issuer or
otherwise. The crediting interest rate is based on a formula agreed
upon with the issuer, but it may not be less than zero percent. Such
interest rates are reviewed on a quarterly basis for resetting.
The
guaranteed investment contract does not permit MetLife to terminate the
agreement prior to the scheduled maturity date.
|
|
|
2009
|
|
|
Average
Yield Earned
|
|
|
12.28
|
%
|
|
Average
Yield Credited to Participants
|
|
|
3.23
|
%
|
NOTE
F - EXEMPT PARTY-IN-INTEREST TRANSACTIONS
Certain
plan investments are shares of mutual funds managed by TD
Ameritrade. TD Ameritrade is the trustee as defined by the Plan and,
therefore, these transactions qualify as exempt party-in-interest
transactions. Fees paid by the Plan for investment management
services were included as a reduction of the return earned on each
fund.
NOTE
G – RELATED PARTY-IN-INTEREST TRANSACTIONS
The Plan
gives participants the option of purchasing shares of the Company’s common stock
as plan investments. Participant investments in the Company’s common
stock are not limited to a certain percentage of a participant’s total
investment allocation. Plan assets included approximately 622,618
shares valued at $1,413,343 at December 31, 2009. The 622,618 shares
of the Company’s common stock included in Plan assets represent 3.7% of the
total number of its outstanding shares.
SOUTHERN
COMMUNITY BANK 401(k) RETIREMENT PLAN
NOTES
TO FINANCIAL STATEMENTS
December
31, 2009 and 2008 and for the year ended December 31,
2009
NOTE
H - PLAN TERMINATION
Although
it has not expressed any intent to do so, the Company has the right under the
Plan to discontinue its contributions at any time and to terminate the Plan
subject to the provisions set forth in ERISA. In the event of plan
termination, participants would become 100% vested in their
accounts.
NOTE
I - TAX STATUS
The
Internal Revenue Service (the “IRS”) has determined and informed the Company by
letter dated June 2, 2010, that the Plan and related trust are designed in
accordance with the applicable sections of the Internal Revenue Code
(IRC). This determination letter includes the most recent plan
amendment effective on September 1, 2009.
NOTE
J - RISKS AND UNCERTAINTIES
The Plan
invests in various investment securities. Investment securities, in general, are
exposed to various risks, such as interest rate, credit, liquidity, and overall
market volatility. Due to the level of risk associated with certain
investment securities, it is at least reasonably possible that changes in the
values of investment securities will occur in the near term and that such
changes could materially affect participants’ account balances and the amounts
reported in the Statement of Net Assets Available for Benefits.
NOTE
K – SUBSEQUENT EVENTS
Management
is not aware of any reportable events subsequent to December 31,
2009.
SUPPLEMENTAL
SCHEDULE
SOUTHERN
COMMUNITY BANK 401(K) RETIREMENT PLAN
SCHEDULE
H, LINE 4i - SCHEDULE OF ASSETS (Held at End of Year)
EIN: 56-1952620,
PLAN NO. 001
|
|
|
|
|
(c)
Description of Investment
|
|
|
|
|
|
|
|
|
(b)
Identity of Issue,
|
|
Including
Maturity Date,
|
|
|
|
(e)
|
|
|
|
|
Borrower,
Lessor or
|
|
Rate
of Interest, Collateral,
|
|
(d)
|
|
Current
|
|
|
(a)
|
|
Similar
Party
|
|
Par
or Maturity Value
|
|
Cost
**
|
|
Value
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mutual
funds:
|
|
|
|
|
|
|
|
|
|
|
Franklin
Templeton
|
|
Moderate
Target
|
|
|
|
|
702,778
|
|
|
|
|
American
|
|
Growth
Fund
|
|
|
|
|
1,591,834
|
|
|
|
|
Capital
|
|
World
Growth & Income Funds
|
|
|
859,636
|
|
|
|
|
Columbia
|
|
Acorn
Fund Class A
|
|
|
|
|
543,095
|
|
|
|
|
Fundamental
|
|
Investors
Fund
|
|
|
|
|
1,114,980
|
|
|
|
|
Van
Kampen
|
|
Small
Cap Class A
|
|
|
|
|
604,860
|
|
|
|
|
PIMCO
|
|
GNMA
Class A
|
|
|
|
|
311,325
|
|
|
|
|
PIMCO
|
|
Total
Return Fund Class A
|
|
|
|
|
556,630
|
|
|
|
|
Total
Mutual Funds
|
|
|
|
|
|
|
6,285,138
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Guaranteed
Investment Contract:
|
|
|
|
|
|
|
|
|
|
MetLife
|
|
Stable
Value Fund
|
|
|
|
|
944,671
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
Stock:
|
|
|
|
|
|
|
|
|
|
|
*
|
|
Southern
Community Financial Corp. 622,618 shares common stock
|
|
|
1,413,343
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Money
Market Funds:
|
|
|
|
|
|
|
|
|
|
|
|
|
TD
Bank USA Institutional
|
|
MMDA
|
|
|
|
|
2,763
|
|
|
|
|
|
TD
Bank USA
|
|
MMDA
|
|
|
|
|
117,202
|
|
|
|
|
|
|
|
|
|
|
|
|
119,965
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
|
Participant
loans
|
|
Interest-bearing
at 4.25% - 9.25%,
|
|
|
|
|
|
|
|
maturing
through December 2013
|
|
|
235,589
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
8,998,706
|
|
*Party-in-interest
**Cost
information omitted for participant-directed investments.
EXHIBIT
INDEX
23.1
Consent of Independent Registered Public Accounting Firm
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the trustees (or
other persons who administer the employee plan) have duly caused this annual
report to be signed on its behalf by the undersigned, hereunto duly
authorized.
|
|
Southern
Community Bank 401(k) Retirement Plan
By:
Southern
Community Financial Corporation
|
|
|
|
|
Date:
June 29,
2010
|
By:
/s/James
Hastings
Name: James
Hastings
Title:
Executive Vice President and Chief Financial
Officer
|
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