Exhibit 99.1

FOR IMMEDIATE RELEASE
For More Information:
Ronald L. Thigpen		Andy Mus
Executive Vice President and COO		Senior Vice President
Southeastern Bank Financial Corp.		Marsh Communications LLC
706-481-1014		404-327-7662

Southeastern Bank Financial Corp. Reports Positive Earnings
for the Fourth Quarter and Year-End 2010

AUGUSTA, Ga., Jan. 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 $2.1 million, or $0.32 in diluted earnings per share, for the three months ended Dec. 31, 2010, compared to a quarterly net loss of $9.4 million, or a loss of $1.41 per share, in the fourth quarter of 2009. For the full year, the company reported net income of $6.9 million, or $1.03 per diluted share, compared to a net loss of $8.0 million, or a loss of $1.24 per diluted share, for 2009.

“We had a strong finish to 2010,” said R. Daniel Blanton, president and chief executive officer. “We grew our net interest income, which we consider core earnings, in the fourth quarter by nearly 15 percent from 2009, deposits increased 10.2 percent and trends in our credit quality showed solid improvement over last year. As a consequence, we lowered our provision for loan losses compared to the fourth quarter of 2009, which, combined with a $4.8 million drop in noninterest expenses, contributed to our income and earnings growth.

“In addition, we continue to be pleased with the growth of our Aiken County subsidiary, which grew its assets by $25.1 million in 2010 and has generated a year of solid profitability,” said Blanton.

At Dec. 31, 2010, total assets were $1.6 billion, an increase of $116.0 million, or 7.8 percent, from Dec. 31, 2009. The company’s SB&T subsidiary closed the fourth quarter of 2010 with $184.7 million in total assets, reflecting growth of $25.1 million, or 15.7 percent, since Dec. 31, 2009.

Loans outstanding at the end of the fourth quarter of 2010 were $886.9 million, compared to $956.6 million at Dec. 31, 2009. Total deposits at Dec. 31, 2010, were $1.4 billion, an increase of 10.2 percent from the same period a year ago. Cash and cash equivalents totaled $65.1 million at the end of the fourth quarter.

Net interest income for the fourth quarter of 2010 was $12.2 million, an increase of $1.6 million, or 14.6 percent, from the same period a year ago. Noninterest income for the quarter was $5.3 million, a decrease of $129,274 from the fourth quarter of 2009. Noninterest expense in the fourth quarter of 2010 decreased $4.8 million from a year ago to $10.8 million, primarily due to a steep decline in losses associated with the sale of other real estate owned (OREO) and lower occupancy expenses.

Nonperforming assets at Dec. 31, 2010, were 2.12 percent of total assets, compared to 1.98 percent at Sept. 30, 2010, and 2.70 percent at Dec. 31, 2009. Net charge-offs for the fourth quarter of 2010 totaled 1.27 percent of average loans on an annualized basis, compared to 1.36 percent annualized in the third quarter of 2010 and 4.42 percent annualized in the fourth quarter of 2009. Net charge-offs for the year totaled 1.24 percent of average loans, compared to 2.42 percent for 2009. The company held $7.8 million in OREO at Dec. 31, 2010, compared to $7.1 million at Sept. 30, 2010, and $8.0 million at Dec. 31, 2009. Net losses from the sale of and writedowns of OREO in the fourth quarter of 2010 totaled $574,518, compared to $5.8 million in the fourth quarter of 2009.

The provision for loan losses totaled $4.0 million for the fourth quarter of 2010, compared to $4.8 million in the third quarter of 2010 and $16.2 million in the fourth quarter of 2009. Allowance for loan losses increased to $26.7 million, or 3.05 percent of loans outstanding, at Dec. 31, 2010, from $25.5 million, or 2.87 percent of loans outstanding, at Sept. 30, 2010, and $22.3 million, or 2.38 percent of loans outstanding, at Dec. 31, 2009.

Return on average assets (ROA) was 0.52 percent for the fourth quarter of 2010, and return on average shareholders’ equity (ROE) was 8.16 percent. The company’s net interest margin was 3.17 percent at Dec. 31, 2010, compared to 3.12 percent at Sept. 30, 2010, and 3.03 percent a year ago.

Net interest income for the 12 months ended Dec. 31, 2010, was $45.9 million, an increase of $3.6 million from the same period in 2009. Noninterest income for the full year 2010 was $21.1 million, an increase from $20.7 million in 2009, reflecting gains in mortgage origination income, retail investment income and trust income. Noninterest expense in 2010 totaled $41.8 million, a decrease of $4.7 million from 2009. The company’s net interest margin was 3.18 percent for the full year, compared to 3.12 percent for 2009.

“We are quite pleased with the direction in which we are headed,” said Blanton. “The economy remains an unknown, however, and as such, we will maintain a cautious, conservative approach moving forward.”

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 an 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

		December 31,
		2010				December 31,
		(Unaudited)				2009
Assets
Cash and due from banks		$	42,304,774			$	123,660,855
Federal funds sold			—				7,300,000
Interest-bearing deposits in other banks			22,810,141				17,032,784
Cash and cash equivalents			65,114,915				147,993,639
Investment securities
Available-for-sale			586,301,633				306,216,156
Held-to-maturity, at cost (fair values of $310,753 and $491,860, respectively)			310,000				490,000
Loans held for sale			12,774,806				19,156,943
Loans			874,095,184				937,489,634
Less allowance for loan losses			26,656,672				22,338,255
Loans, net			847,438,512				915,151,379
Premises and equipment, net			29,415,853				31,702,655
Accrued interest receivable			6,382,121				6,090,791
Bank-owned life insurance			24,178,634				23,247,879
Restricted equity securities			5,706,900				6,337,700
Other real estate owned			7,750,552				7,973,830
Prepaid FDIC assessment			4,784,587				6,886,319
Deferred tax asset			14,594,554				11,159,725
Other assets			2,352,138				8,711,716
		$	1,607,105,205			$	1,491,118,732
Liabilities and Stockholders’ Equity
Deposits
Noninterest-bearing		$	120,138,486			$	114,780,339
Interest-bearing:
NOW accounts			356,266,740				210,437,831
Savings			409,583,995				343,739,778
Money management accounts			36,937,485				44,780,787
Time deposits over $100,000			346,721,403				418,750,941
Other time deposits			141,088,967				148,044,382
			1,410,737,076				1,280,534,058
Securities sold under repurchase agreements			817,574				3,187,807
Advances from Federal Home Loan Bank			60,000,000				77,000,000
Other borrowed funds			—				600,000
Accrued interest payable and other liabilities			12,646,021				13,106,706
Subordinated debentures			22,946,646				22,946,646
Total liabilities			1,507,147,317				1,397,375,217
Stockholders’ equity:
Preferred stock, no par value; 10,000,000 shares authorized; 0 shares outstanding in 2010 and 2009, respectively			—				—
Common stock, $3.00 par value; 10,000,000 shares authorized; 6,675,147 and 6,672,826 shares issued and outstanding in 2010 and 2009, respectively			20,025,441				20,018,478
Additional paid-in capital			62,617,358				62,359,597
Retained earnings			19,548,606				12,692,134
Treasury stock, at cost; 0 shares in 2010 and 2009, respectively			—				—
Accumulated other comprehensive loss, net			(2,233,517	)			(1,326,694	)
Total stockholders’ equity			99,957,888				93,743,515
		$	1,607,105,205			$	1,491,118,732

SOUTHEASTERN BANK FINANCIAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Income

(Unaudited)

		Three Months Ended								Twelve Months Ended
		December 31,								December 31,
		2010				2009				2010				2009
Interest income:
Loans, including fees		$	13,235,719			$	13,968,352			$	53,706,678			$	56,196,016
Investment securities			4,237,833				3,317,714				15,781,202				14,281,826
Federal funds sold			—				3,472				9,201				28,825
Interest-bearing deposits in other banks			83,557				126,565				377,359				253,406
Total interest income			17,557,109				17,416,103				69,874,440				70,760,073
Interest expense:
Deposits			4,591,650				5,779,900				20,464,633				24,248,560
Federal funds purchased and securities sold under repurchase agreements			2,209				7,272				19,708				327,531
Other borrowings			756,212				979,586				3,513,512				3,907,029
Total interest expense			5,350,071				6,766,758				23,997,853				28,483,120
Net interest income			12,207,038				10,649,345				45,876,587				42,276,953
Provision for loan losses			3,959,639				16,162,301				15,800,885				30,903,788
Net interest income (loss) after provision for loan losses			8,247,399				(5,512,956	)			30,075,702				11,373,165
Noninterest income:
Service charges and fees on deposits			1,780,474				1,826,849				6,925,623				7,050,929
Gain on sales of loans			2,171,421				1,850,433				8,623,963				8,493,426
Gain (loss) on sale of fixed assets			—				1,500				26,368				(14,729	)
Investment securities gains, net			334,160				838,761				1,271,275				2,531,603
Other-than-temporary loss
Total impairment loss			—				—				(96,258	)			(990,605	)
Loss recognized in other comprehensive loss			—				—				258				15,821
Net impairment loss recognized in earnings			—				—				(96,000	)			(974,784	)
Retail investment income			413,966				321,459				1,662,287				1,175,031
Trust service fees			274,636				273,952				1,127,361				1,039,819
Increase in cash surrender value of bank-owned life insurance			221,768				230,551				930,755				879,814
Miscellaneous income			147,950				130,144				614,269				558,495
Total noninterest income			5,344,375				5,473,649				21,085,901				20,739,604
Noninterest expense:
Salaries and other personnel expense			5,938,076				5,606,466				23,462,219				22,533,801
Occupancy expenses			1,112,034				1,196,477				4,581,055				4,690,977
Other real estate losses, net			574,518				5,812,835				1,609,999				6,328,951
Other operating expenses			3,213,048				2,989,655				12,161,746				12,957,670
Total noninterest expense			10,837,676				15,605,433				41,815,019				46,511,399
Income (loss) before income taxes			2,754,098				(15,644,740	)			9,346,584				(14,398,630	)
Income tax expense (benefit)			608,012				(6,227,052	)			2,490,111				(6,414,063	)
Net income (loss)		$	2,146,086			$	(9,417,688	)		$	6,856,473			$	(7,984,567	)
Basic net income (loss) per share		$	0.33			$	(1.41	)		$	1.03			$	(1.24	)
Diluted net income (loss) per share		$	0.33			$	(1.41	)		$	1.03			$	(1.24	)
Weighted average common shares outstanding			6,675,147				6,672,826				6,674,224				6,422,867
Weighted average number of common and common equivalent shares outstanding			6,675,147				6,672,826				6,674,224				6,422,867