Southeastern Bank Financial Corp. Revises First Quarter 2009 Earnings

• Press Release
• Source: Southeastern Bank Financial Corp.
• On 10:54 am EDT, Monday May 11, 2009

AUGUSTA, Ga., May 11, 2009 (GLOBE NEWSWIRE) -- Southeastern Bank Financial Corp. (OTCBB:SBFC - News), the holding company for Georgia Bank & Trust Company of Augusta (GB&T) and Southern Bank & Trust (SB&T), announced today that it has revised its financial statements for the quarter ended March 31, 2009, which were previously released on April 24, 2009, to reflect the impact from the closure of Silverton Bank, N.A., by the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation on May 1, 2009.

Related Quotes

Symbol	Price	Change
SBFC.OB	11.50	0.00

{"s" : "sbfc.ob","k" : "c10,l10,p20,t10","o" : "","j" : ""}

Known as a "bankers' bank" or correspondent bank, Silverton Bank provided credit and deposit services to more than 1,500 banks nationwide. Southeastern Bank Financial Corp. held approximately $1.0 million worth of stock and Trust Preferred Securities in Silverton Financial Services, Inc., the holding company of Silverton Bank, prior to the bank's failure.

"We decided it was necessary to revise our first-quarter financial results in order to comply with generally accepted accounting standards and continue our long-held conservative approach to accounting practices," said R. Daniel Blanton, president and chief executive officer. "Although we were hopeful that Silverton's recent capital raising activities would be successful, our budget for the remainder of 2009 anticipates a deepening economic recession, and the related fallout, including the possible failure of Silverton Bank. The actual loss has minimal impact on our overall financial health. We are still profitable, and our capital ratios remain strong."

The company's revised financial statements for the quarter ended March 31, 2009, reflect a loss of $163,981 in investment securities, compared to a gain of $743,900 reported previously. This reduced net income for the first quarter to $56,124 from $685,759 as previously reported. Diluted earnings per share were revised to $0.01 compared to $0.11.

The company will file its Form 10-Q for the quarter ended March 31, 2009 today, reflecting these revised consolidated financial statements.

About Southeastern Bank Financial Corp.

Southeastern Bank Financial Corp. is the $1.5 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 offices in Athens, Ga., and Greenville, S.C. SB&T is a federally chartered thrift 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.

          SOUTHEASTERN BANK FINANCIAL CORPORATION AND SUBSIDIARIES

                      Consolidated Balance Sheets

                                          March 31,
                                            2009        December 31,
                                        (Unaudited)          2008
                                      ---------------  ---------------
                  Assets

 Cash and due from banks              $   33,762,533   $   24,859,620
 Federal funds sold                       61,664,000        9,780,000
 Interest-bearing deposits in other
  banks                                   23,948,713        3,128,043
                                      ---------------  ---------------
         Cash and cash equivalents       119,375,246       37,767,663

 Investment securities
    Available-for-sale                   300,294,669      299,339,182
    Held-to-maturity, at cost (fair
     values of $676,089 and $697,977,
     respectively)                           689,164          689,128

 Loans held for sale                      20,809,064       18,955,283

 Loans                                   976,837,586      986,830,706
    Less allowance for loan losses       (15,185,895)     (14,742,339)
                                      ---------------  ---------------
         Loans, net                      961,651,691      972,088,367

 Premises and equipment, net              33,254,190       33,959,975
 Accrued interest receivable               6,343,240        7,085,348
 Bank-owned life insurance                17,548,279       17,368,065
 Restricted equity securities              6,390,156        6,571,485
 Other real estate owned                   6,989,755        5,733,775
 Other assets                             11,336,808       11,480,316
                                      ---------------  ---------------

                                      $1,484,682,262   $1,411,038,587
                                      ===============  ===============

 Liabilities and Stockholders' Equity

 Deposits
      Noninterest-bearing             $  117,921,292   $  111,291,359
      Interest-bearing:
         NOW accounts                    181,130,051      166,560,715
         Savings                         271,986,457      247,249,303
         Money management accounts        46,335,384       50,404,031
         Time deposits over $100,000     428,636,154      385,439,375
         Other time deposits             180,674,397      178,607,605
                                      ---------------  ---------------
                                       1,226,683,735    1,139,552,388

 Federal funds purchased and
  securities solD under repurchase
  agreements                              48,763,613       62,552,922
 Advances from Federal Home Loan Bank     84,000,000       84,000,000
 Other borrowed funds                        900,000               --
 Accrued interest payable and other
  liabilities                              9,405,421       10,282,777
 Subordinated debentures                  20,000,000       20,000,000
                                      ---------------  ---------------

         Total liabilities             1,389,752,769    1,316,388,087
                                      ---------------  ---------------

 Stockholders' equity:
   Common stock, $3.00 par value;
    10,000,000 shares authorized;
    5,988,087 and 5,987,674 shares
    issued in 2009 and 2008,
    respectively; 5,987,785 and
    5,987,674 shares outstanding in
    2009 and 2008, respectively           17,964,261       17,963,022
   Preferred stock, no par value;
    10,000,000 shares authorized;
    0 shares outstanding in 2009 and
    2008, respectively                            --               --
   Additional paid-in capital             55,242,246       55,188,533
   Retained earnings                      20,732,825       21,455,152
   Treasury stock, at cost; 302 and
    0 shares in 2009 and 2008,
    respectively                              (4,832)              --
   Accumulated other comprehensive
    income, net                              994,993           43,793
                                      ---------------  ---------------

         Total stockholders' equity       94,929,493       94,650,500
                                      ---------------  ---------------

                                      $1,484,682,262   $1,411,038,587
                                      ===============  ===============

         SOUTHEASTERN BANK FINANCIAL CORPORATION AND SUBSIDIARIES

                       Consolidated Statements of Income

                                  (Unaudited)

                                             Three Months Ended
                                                  March 31,
                                      -------------------------------- 
                                            2009              2008
                                      ---------------  ---------------
 Interest income:
    Loans, including fees             $   13,804,456   $   16,392,754
    Investment securities                  4,074,379        3,261,374
    Federal funds sold                        24,452           90,769
    Interest-bearing deposits in
     other banks                               3,837            5,822
                                      ---------------  ---------------
          Total interest income           17,907,124       19,750,719
                                      ---------------  ---------------

 Interest expense:
    Deposits                               6,800,802        7,876,557
    Federal funds purchased and
     securities sold under repurchase
     agreements                              111,469          539,933
    Other borrowings                         895,937        1,069,480
                                      ---------------  ---------------
          Total interest expense           7,808,208        9,485,970
                                      ---------------  ---------------

          Net interest income             10,098,916       10,264,749

 Provision for loan losses                 4,749,297        1,271,005
                                      ---------------  ---------------

          Net interest income after
           provision for loan losses       5,349,619        8,993,744
                                      ---------------  ---------------

 Noninterest income:
    Service charges and fees on
     deposits                              1,640,725        1,670,589
    Gain on sales of loans                 2,236,696        1,259,962
    Gain on sale of fixed assets              26,135            2,999
    Investment securities (losses)
     gains, net                             (163,981)          37,580
    Retail investment income                 209,152          288,799
    Trust service fees                       253,344          285,948
    Increase in cash surrender value
     of bank-owned life insurance            180,214          164,169
    Miscellaneous income                     163,274          220,955
                                      ---------------  ---------------
          Total noninterest income         4,545,559        3,931,001
                                      ---------------  ---------------

 Noninterest expense:
    Salaries and other personnel
     expense                               5,657,934        5,171,110
    Occupancy expenses                     1,141,124        1,025,349
    Other operating expenses               3,034,403        2,724,112
                                      ---------------  ---------------
          Total noninterest expense        9,833,461        8,920,571
                                      ---------------  ---------------

          Income before income taxes          61,717        4,004,174

 Income tax expense                            5,593        1,369,515
                                      ---------------  ---------------

          Net income                  $       56,124   $    2,634,659
                                      ===============  ===============

 Basic net income per share           $         0.01   $         0.45
                                      ===============  ===============

 Diluted net income per share         $         0.01   $         0.44
                                      ===============  ===============

 Weighted average common shares
  outstanding                              5,987,948        5,958,963
                                      ===============  ===============

 Weighted average number of common
  and common equivalent shares
  outstanding                              5,998,578        6,015,301
                                      ===============  ===============

Southeastern Bank Financial Corp.
Ronald L. Thigpen, Executive Vice President and COO
706-481-1014

Marsh Communications LLC
John Marsh, President
770-458-7553