Southeastern Bank Financial (SBFC) 8-K Southeastern Bank Financial Corp. Reports $2.3 Million Profit in First Quarter 2011

Exhibit 99.1

For More Information:
Ronald L. Thigpen	John Marsh
Executive Vice President and COO	President
Southeastern Bank Financial Corp.	Marsh Communications LLC
706-481-1014	770-458-7553

Southeastern Bank Financial Corp. Reports
$2.3 Million Profit in First Quarter 2011

AUGUSTA, Ga., April 28, 2011— Southeastern Bank Financial Corp. (OTCBB:SBFC), the holding company for Georgia Bank & Trust Company of Augusta (GB&T) and Southern Bank & Trust (SB&T), today reported quarterly net income of $2.3 million, or $0.34 in diluted earnings per share, for the three months ended March 31, 2011, compared to $1.3 million, or $0.19 in diluted earnings per share, in the first quarter of 2010.

“We experienced a significant decrease in deposit costs that increased net interest income and our net interest margin the first quarter of 2011,” said R. Daniel Blanton, president and chief executive officer. “It marks our fifth consecutive quarter of income and earnings growth, which is a considerable achievement given the weak economy and lack of loan demand. At the same time, our asset quality remained stable during the first quarter. Overall, we are pleased with how our company has performed, though we are maintaining a conservative posture with regards to our provision for loan losses.”

Total assets at March 31, 2011, were $1.6 billion, an increase of $27.7 million from Dec. 31, 2010.

Loans outstanding at the end of the first quarter were $881.7 million, a decrease of $5.2 million from Dec. 31, 2010, and a decline of $57.8 million from March 31, 2010. Total deposits were $1.4 billion at March 31, 2011, an increase of $27.4 million from Dec. 31, 2010, and an increase of $147.3 million from the same period a year ago. Cash and cash equivalents totaled $125.4 million at the end of the first quarter, compared to $65.1 million at Dec. 31, 2010.

Net interest income for the first quarter of 2011 was $12.2 million, a 15.9 percent increase from $10.5 million in the same period a year ago. The increase was driven by a $1.3 million decrease in deposit costs, which also led to an expansion of the company’s net interest margin. Noninterest income for the first quarter was $4.0 million, a 1.2 percent increase from the first quarter of 2010. Noninterest expense in the first quarter of 2011 totaled $9.8 million, a 3.6 percent increase compared to the same period a year ago a year ago, due primarily to higher problem loan-related expenses and other operating expenses.

The company’s net interest margin grew to 3.28 percent in the first quarter of 2011, compared to 3.17 percent for the three months ended Dec. 31, 2010, and 3.07 percent for the same period a year ago. Return on average assets (ROA) was 0.58 percent for the first quarter of 2011, an increase of 24 basis points from the same period a year ago. Return on average shareholders’ equity (ROE) was 9.37 percent for the first quarter of 2011, an increase of 406 basis points from the first quarter of 2010.

The provision for loan losses totaled $3.2 million for the first quarter of 2011, compared to $4.0 million in the fourth quarter of 2010 and $3.3 million in the first quarter of 2010. Allowance for loan losses totaled $26.8 million, or 3.08 percent of loans outstanding at March 31, 2011, compared to $26.7 million, or 3.05 percent of loans outstanding, at Dec. 31, 2010, and $23.1 million, or 2.52 percent of loans outstanding, at March 31, 2010.

Nonperforming assets at March 31, 2011, were 2.20 percent of total assets, compared to 2.12 percent at Dec. 31, 2010, and 2.52 percent at March 31, 2010. Net charge-offs for the first quarter of 2011 totaled 1.43 percent of average loans on an annualized basis, compared to 1.27 percent annualized in the fourth quarter of 2010, and 1.10 percent annualized in the first quarter of 2010. The company held $7.6 million in other real estate owned (OREO) at March 31, 2011, compared to $7.8 million at Dec. 31, 2010, and $5.9 million at March 31, 2010.

2

“Our strategic plan has remained unchanged — we are maintaining control of our expenses, managing our problem assets, and finding ways to generate revenue in a tough economy,” said Blanton. “Our aim is to continue on this path as we move forward, building on our positive momentum and preserving our overall safety and soundness.”

About Southeastern Bank Financial Corp.

Southeastern Bank Financial Corp. is the $1.6 billion-asset bank holding company of Georgia Bank & Trust Company of Augusta (GB&T) and Southern Bank & Trust (SB&T). GB&T is the largest locally owned and operated community bank in the Augusta metro market, with nine full-service Augusta-area offices and one limited service Loan Production Office in Athens, GA. SB&T is a state charted bank serving the Aiken County, S.C., market, with three full-service offices. The company also has mortgage operations in Augusta and Savannah. The banks focus primarily on real estate, commercial and consumer loans to individuals, small to medium-sized businesses and professionals, and also provide wealth management and trust services. The company’s common stock is publicly traded on the OTC Bulletin Board under the symbol SBFC. For more information, please visit the company’s Web site, www.georgiabankandtrust.com.

Safe Harbor Statement — Forward-Looking Statements

Statements made in this release by Southeastern Bank Financial Corporation (The Company) other than those concerning historical information, should be considered forward-looking and subject to various risks and uncertainties. Such forward-looking statements are made based upon management’s belief as well as assumptions made by, and information currently available to, management pursuant to “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The Company’s actual results may differ materially from the results anticipated in forward-looking statements due to a variety of factors, including: unanticipated changes in the Bank’s local economy and in the national economy; governmental monetary and fiscal policies; deposit levels, loan demand, loan collateral values and securities portfolio values; difficulties in interest rate risk management; difficulties in operating in a variety of geographic areas; the effects of competition in the banking business; changes in governmental regulation relating to the banking industry, including regulations relating to branching and acquisitions; failure of assumptions underlying the establishment of reserves for loan losses, including the value of collateral underlying delinquent loans; and other factors. The Company cautions that such factors are not exclusive. The Company does not undertake to update any forward-looking statement that may be made from time to time by, or on behalf of, the Company.

###

3

SOUTHEASTERN BANK FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

	March 31,
	2011			December 31,
	(Unaudited)			2010
Assets
Cash and due from banks	$	60,119,714		$	42,304,774
Federal funds sold		—			—
Interest-bearing deposits in other banks		65,250,838			22,810,141
Cash and cash equivalents		125,370,552			65,114,915
Investment securities
Available-for-sale		558,306,124			586,301,633
Held-to-maturity, at cost (fair values of $0 and $310,753, respectively)		—			310,000
Loans held for sale		10,699,992			12,774,806
Loans		871,017,145			874,095,184
Less allowance for loan losses		26,820,623			26,656,672
Loans, net		844,196,522			847,438,512
Premises and equipment, net		29,103,466			29,415,853
Accrued interest receivable		6,576,315			6,382,121
Bank-owned life insurance		24,396,511			24,178,634
Restricted equity securities		5,745,000			5,706,900
Other real estate owned		7,565,099			7,750,552
Prepaid FDIC assessment		4,221,219			4,784,587
Deferred tax asset		15,682,706			14,594,554
Other assets		2,938,915			2,352,138
	$	1,634,802,421		$	1,607,105,205
Liabilities and Stockholders’ Equity
Deposits
Noninterest-bearing	$	135,219,451		$	120,138,486
Interest-bearing:
NOW accounts		363,309,166			356,266,740
Savings		433,636,180			409,583,995
Money management accounts		37,650,142			36,937,485
Time deposits over $100,000		332,876,329			346,721,403
Other time deposits		135,484,822			141,088,967
		1,438,176,090			1,410,737,076
Securities sold under repurchase agreements		609,791			817,574
Advances from Federal Home Loan Bank		60,000,000			60,000,000
Other borrowed funds		—			—
Accrued interest payable and other liabilities		11,722,933			12,646,021
Subordinated debentures		22,946,646			22,946,646
Total liabilities		1,533,455,460			1,507,147,317
Stockholders’ equity:
Preferred stock, no par value; 10,000,000 shares authorized; 0 shares outstanding in 2011 and 2010, respectively		—			—
Common stock, $3.00 par value; 10,000,000 shares authorized; 6,675,851 and 6,675,147 shares issued and outstanding in 2011 and 2010, respectively		20,027,553			20,025,441
Additional paid-in capital		62,654,391			62,617,358
Retained earnings		21,850,482			19,548,606
Treasury stock, at cost; 0 shares in 2011 and 2010, respectively		—			—
Accumulated other comprehensive loss, net		(3,185,465	)		(2,233,517	)
Total stockholders’ equity		101,346,961			99,957,888
	$	1,634,802,421		$	1,607,105,205

4

SOUTHEASTERN BANK FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Income

(Unaudited)

	Three Months Ended
	March 31,
	2011			2010
Interest income:
Loans, including fees	$	12,628,248		$	13,343,446
Investment securities		4,319,904			3,419,381
Federal funds sold		—			3,421
Interest-bearing deposits in other banks		47,503			88,672
Total interest income		16,995,655			16,854,920
Interest expense:
Deposits		4,079,832			5,367,058
Securities sold under repurchase agreements		1,658			10,838
Other borrowings		714,578			954,540
Total interest expense		4,796,068			6,332,436
Net interest income		12,199,587			10,522,484
Provision for loan losses		3,240,404			3,288,499
Net interest income after provision for loan losses		8,959,183			7,233,985
Noninterest income:
Service charges and fees on deposits		1,577,742			1,594,449
Gain on sales of loans		1,206,634			1,353,279
Gain on sale of fixed assets		16,659			27,024
Investment securities gains, net		147,756			12,675
Other-than-temporary loss
Total impairment loss		(126,907	)		—
Loss recognized in other comprehensive loss		65,422			—
Net impairment loss recognized in earnings		(61,485	)		—
Retail investment income		457,506			335,012
Trust service fees		273,064			287,154
Increase in cash surrender value of bank-owned life insurance		217,877			229,076
Miscellaneous income		213,382			161,119
Total noninterest income		4,049,135			3,999,788
Noninterest expense:
Salaries and other personnel expense		5,564,356			5,494,529
Occupancy expenses		1,115,173			1,171,045
Other real estate losses (gains), net		95,403			(85,193	)
Other operating expenses		3,000,716			2,851,811
Total noninterest expense		9,775,648			9,432,192
Income before income taxes		3,232,670			1,801,581
Income tax expense		930,794			546,915
Net income	$	2,301,876		$	1,254,666
Basic net income per share	$	0.34		$	0.19
Diluted net income per share	$	0.34		$	0.19
Weighted average common shares outstanding		6,675,851			6,673,334
Weighted average number of common and common equivalent shares outstanding		6,676,015			6,673,334

5