Southwest Georgia Financial Corporation (the “Corporation”) (NYSE Amex: SGB), a full-service community bank holding company, today reported net income of $99 thousand, or $0.04 per diluted share, for the third quarter of 2011, down $140 thousand from net income of $239 thousand, or $0.09 per diluted share, for the third quarter of 2010. The decrease in net income reflects increased provisions for loan losses related to one large nonaccrual loan and increased personnel expenses related to staffing the Corporation’s continued expansion in Valdosta, Georgia.

DeWitt Drew, President and CEO commented, “In spite of the current economic environment, we are moving forward in Valdosta. Construction on our second banking center has begun and we expect to have the branch open by the first quarter of 2012.”

Return on average equity for the third quarter of 2011 was 1.39% compared with 3.49% for the third quarter of 2010. Return on average assets for the quarter was 0.13% compared with 0.31% for the same period in 2010.

For the first nine months of 2011, net income was $1.1 million compared with $1.6 million for the same period in 2010. The decline in net income primarily reflects losses from the sale of foreclosed properties, lower net gains on the sale of securities and increased salary and employee benefits. Earnings per diluted share for the first nine months of 2011 were $0.42, down from $0.61 for the same period in 2010. Year-to-date return on average equity was 5.13% compared with 7.74% for the same period last year, while return on average assets decreased 23 basis points to 0.46%.