Southwest Georgia Financial Corporation, a full-service community bank holding company, today reported its results of operations for the third quarter ended September 30, 2013.

Third Quarter and Nine-Month Income Highlights

• Net income increased 54.6% to $651 thousand in the 2013 third quarter, or $0.25 per diluted share, from $421 thousand, or $0.17 per diluted share, in the third quarter of 2012. The increase in net income is due to higher net interest income of $272 thousand on strong loan growth.

• For the nine months ended September 30, 2013, net income was $1.8 million, or $0.70 per diluted share, a 38.0% increase from $1.3 million, or $0.51 per diluted share, for the same period in the prior year driven by higher net interest income.

• Noninterest income was down $737 thousand to $3.5 million from the first nine months of last year, mostly attributed to decreased mortgage banking fee income.

  Balance Sheet Trends and Asset Quality

• Total assets at September 30, 2013 were $372.0 million, an increase of 12.0%, or $39.8 million, from September 30, 2012.

• Total loans increased $19.0 million, or 9.4%, to $221.5 million compared with the same period last year.

• Total deposits grew $31.0 million to $308.7 million at September 30, 2013, an increase of 11.2% from the

  third quarter of 2012.

• Non-performing asset ratio was 0.51% at September 30, 2013, a 27 basis point improvement when compared with the third quarter 2012.

  Capital Management

• The Company has a total risk based capital ratio of 14.98%, measurably above the federal “well capitalized” standard.

• Return on equity increased to 8.49% compared with 5.76% in the third quarter of 2012. Tangible book value per share was $12.03 at September 30, 2013, up from $11.28 at the end of the 2012cthird quarter.

“This quarter we continued to experience high quality loan growth combined with continued growth in core deposits,” stated DeWitt Drew, President and CEO. “However, the interest rate environment is concerning, especially as it pertains to our bond portfolio whose duration has become very short. We are also taking a cautious approach to our mortgage banking activities which are becoming difficult to rationalize given the current political and regulatory environment.”

Dividends

In September 2013, the Corporation paid a third quarter cash dividend of $0.04 per common share. Southwest Georgia Financial Corporation or its predecessor, Southwest Georgia Bank, has paid cash dividends for 85 consecutive years.