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
$2.8 Million Profit In The Second Quarter 2011

AUGUSTA, Ga., July 29, 2011 — Southeastern Bank Financial Corp. (OTCBB:SBFC), the holding company for Georgia Bank & Trust Company of Augusta (GB&T) and Southern Bank & Trust of Aiken, S.C.(SB&T), today reported quarterly net income of $2.8 million for the three months ended June 30, 2011, or $0.42 in diluted earnings per share, compared to $1.6 million, or $0.24 in diluted earnings per share, in the second quarter of 2010.

“The significant increase in net income over the prior year quarter reflects growing income and earnings for the sixth consecutive quarter as we continue to move in the right direction in the midst of an uncertain economy,” said President and Chief Executive Officer R. Daniel Blanton. “While lower deposit costs played a large role in our positive earnings, we also benefitted from earlier efforts to increase the efficiency of our operations. Our credit quality remains strong relative to the industry but we continue to maintain a conservative position in our allowance for loan losses until we see definitive positive movement in the economic environment.”

Total assets at June 30, 2011, were $1.6 billion, a decrease of $7.2 million from Dec. 31, 2010. Loans outstanding at the end of the second quarter were $889.7 million, compared to $886.9 million at Dec. 31, 2010, and $933.3 million at June 30, 2010. Total deposits were $1.4 billion at June 30, 2011, a decrease of $8.7 million at Dec. 31, 2010, and an increase of $30.6 million from the same period a year ago. Cash and cash equivalents totaled $69.7 million at the end of the second quarter, compared to $65.1 million at Dec. 31, 2010.

Net interest income for the second quarter of 2011 totaled $12.9 million, a 13.3 percent increase from $11.4 million for the same period in 2010. The increase was driven by a $1.5 million decrease in deposit costs. Noninterest income for the second quarter totaled $4.7 million, a 10.1 percent decline from $5.2 million a year ago, resulting from decreases in gains on sales of investment securities and mortgage loans. Despite the year-over-year decline in noninterest income, retail investment income increased 21.8 percent. Noninterest expense was $10.1 million in the second quarter of 2011, a decrease of 4.7 percent from $10.6 million a year ago, resulting primarily from lower salary and occupancy expenses, as well as lower other real estate owned (OREO) related losses.

The net interest margin was 3.44 percent for the quarter-ended June 30, 2011, compared to 3.19 percent a year ago. Annualized return on average assets (ROA) was 0.70 percent for the second quarter of 2011, an increase of 28 basis points from the same period a year ago, and annualized return on average shareholder’s equity (ROE) was 10.76 percent, an increase of 421 basis points from the second quarter of 2010.

Nonperforming assets at June 30, 2011, were 2.29 percent of total assets, compared to 2.20 percent at March 31, 2011, and 2.53 percent at June 30, 2010. Net charge-offs for the second quarter of 2011 totaled 0.85 percent of average loans on an annualized basis, compared to 1.43 percent annualized in the first quarter of 2011 and 1.37 percent annualized in the second quarter of 2010. The company held $8.6 million in OREO at June 30, 2011, compared to $7.8 million at December 31, 2010, and $7.2 million at June 30, 2010.

The company’s loan-loss provision expense was $3.4 million in the second quarter of 2011, compared to $3.2 million in the first quarter of 2011 and $3.8 million in the second quarter a year ago. The allowance for loan losses at June 30, 2011, was $28.4 million, or 3.25 percent of loans outstanding, compared to $26.7 million, or 3.05 percent of loans outstanding, at Dec. 31, 2010, and $23.8 million, or 2.65 percent of loans outstanding, at June 30, 2010.

Net income for the six months ended June 30, 2011, totaled $5.1 million, an increase of $2.2 million from the same period of 2010. Diluted earnings per share for the first six months of 2011 were $0.76, an increase of $0.33 per share earned from the same period a year ago.

Net interest income for the first six months of 2011 was $25.1 million, a 14.6 percent increase from $21.9 million in the first six months of 2010. Noninterest income was $8.7 million for the first six months of 2011, compared to $9.2 million in the same period of 2010. Noninterest expense was $19.8 million for the six-month period ended June 30, 2011, compared to $20.0 million in the same period in 2010.

“Our goal is to continue on our track of increasing profitability,” said Blanton. “There remains a degree of uncertainty in the economic recovery in our markets and the broader economy, however, which could pose new challenges in the future. As such, we will remain cautious in our approach.”

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.

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SOUTHEASTERN BANK FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

		June 30,
		2011				December 31,
		(Unaudited)				2010
Assets
Cash and due from banks		$	61,140,586			$	42,304,774
Federal funds sold			—				—
Interest-bearing deposits in other banks			8,542,898				22,810,141
Cash and cash equivalents			69,683,484				65,114,915
Investment securities
Available-for-sale			569,499,501				586,301,633
Held-to-maturity, at cost (fair values of $0 and $310,753, respectively)			—				310,000
Loans held for sale			15,912,509				12,774,806
Loans			873,801,444				874,095,184
Less allowance for loan losses			28,409,746				26,656,672
Loans, net			845,391,698				847,438,512
Premises and equipment, net			28,546,388				29,415,853
Accrued interest receivable			6,289,666				6,382,121
Bank-owned life insurance			30,144,614				24,178,634
Restricted equity securities			5,454,200				5,706,900
Other real estate owned			8,557,815				7,750,552
Prepaid FDIC assessment			3,885,990				4,784,587
Deferred tax asset			12,916,797				14,594,554
Other assets			3,638,286				2,352,138
		$	1,599,920,948			$	1,607,105,205
Liabilities and Stockholders’ Equity
Deposits
Noninterest-bearing		$	131,327,922			$	120,138,486
Interest-bearing:
NOW accounts			343,399,575				356,266,740
Savings			466,264,505				409,583,995
Money management accounts			39,265,752				36,937,485
Time deposits over $100,000			304,424,036				346,721,403
Other time deposits			117,317,925				141,088,967
			1,401,999,715				1,410,737,076
Securities sold under repurchase agreements			611,045				817,574
Advances from Federal Home Loan Bank			52,000,000				60,000,000
Other borrowed funds			—				—
Accrued interest payable and other liabilities			12,642,029				12,646,021
Subordinated debentures			22,946,646				22,946,646
Total liabilities			1,490,199,435				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; 6,676,467 and 6,675,147 shares issued and outstanding in 2011 and 2010, respectively			20,029,401				20,025,441
Additional paid-in capital			62,690,859				62,617,358
Retained earnings			24,655,665				19,548,606
Treasury stock, at cost; 0 shares in 2011 and 2010, respectively			—				—
Accumulated other comprehensive income (loss), net			2,345,588				(2,233,517	)
Total stockholders’ equity			109,721,513				99,957,888
		$	1,599,920,948			$	1,607,105,205

SOUTHEASTERN BANK FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Income

(Unaudited)

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2011				2010				2011				2010
Interest income:
Loans, including fees		$	12,826,525			$	13,516,261			$	25,454,773			$	26,859,707
Investment securities			4,509,850				3,955,152				8,829,754				7,374,533
Federal funds sold			—				3,460				—				6,882
Interest-bearing deposits in other banks			37,707				93,496				85,210				182,167
Total interest income			17,374,082				17,568,369				34,369,737				34,423,289
Interest expense:
Deposits			3,842,342				5,319,108				7,922,174				10,686,166
Securities sold under repurchase agreements			1,616				5,019				3,274				15,857
Other borrowings			662,819				890,582				1,377,397				1,845,122
Total interest expense			4,506,777				6,214,709				9,302,845				12,547,145
Net interest income			12,867,305				11,353,660				25,066,892				21,876,144
Provision for loan losses			3,423,114				3,793,636				6,663,518				7,082,135
Net interest income after provision for loan losses			9,444,191				7,560,024				18,403,374				14,794,009
Noninterest income:
Service charges and fees on deposits			1,750,095				1,748,757				3,327,837				3,343,206
Gain on sales of loans			1,720,503				2,222,022				2,927,137				3,575,301
Gain on sale of fixed assets			—				—				16,659				27,024
Investment securities gains (losses), net			(29,533	)			149,269				118,223				161,944
Other-than-temporary loss
Total impairment loss			—				—				(126,907	)			—
Loss recognized in other comprehensive income			—				—				65,422				—
Net impairment loss recognized in earnings			—				—				(61,485	)			—
Retail investment income			506,761				416,077				964,267				751,089
Trust service fees			292,174				289,410				565,238				576,564
Increase in cash surrender value of bank-owned life insurance			248,103				223,044				465,980				452,120
Miscellaneous income			190,684				156,145				404,066				317,264
Total noninterest income			4,678,787				5,204,724				8,727,922				9,204,512
Noninterest expense:
Salaries and other personnel expense			5,653,375				5,914,348				11,217,731				11,408,877
Occupancy expenses			1,111,444				1,166,058				2,226,617				2,337,103
Other real estate losses (gains), net			365,566				413,680				460,969				328,487
Other operating expenses			2,931,629				3,067,433				5,932,345				5,919,244
Total noninterest expense			10,062,014				10,561,519				19,837,662				19,993,711
Income before income taxes			4,060,964				2,203,229				7,293,634				4,004,810
Income tax expense			1,255,781				582,600				2,186,575				1,129,515
Net income		$	2,805,183			$	1,620,629			$	5,107,059			$	2,875,295
Basic net income per share		$	0.42			$	0.24			$	0.76			$	0.43
Diluted net income per share		$	0.42			$	0.24			$	0.76			$	0.43
Weighted average common shares outstanding			6,676,467				6,673,925				6,676,161				6,673,631
Weighted average number of common and common equivalent shares outstanding			6,676,467				6,673,968				6,676,161				6,673,631