News Release

CONTACTS:

Company:	Investor Relations:
Karen T. Boyd	Deborah K. Pawlowski
Senior Vice President and Treasurer	Kei Advisors LLC
Phone: (229) 873-3837	Phone:  (716) 843-3908
investorinfo@sgfc.com	dpawlowski@keiadvisors.com

For Immediate Release

Southwest Georgia Financial Corporation Reports 16% Net Income Growth for
First Quarter 2018

MOULTRIE, GEORGIA, April 24, 2018 -- Southwest Georgia Financial Corporation (the “Company”) (NYSE American: SGB), a full-service community bank holding company, today reported results of operations for the first quarter ended March 31, 2018. Comparisons are to prior year-periods unless otherwise noted.

“Our first quarter results continue the trend of solid growth in loans, deposits, and earnings. Response in our new Tifton market has been promising, and our Moultrie and Valdosta markets continue to provide growth and stability. We anticipate another successful and exciting year and are confident that our long-term strategy and focus will continue to deliver value,” commented DeWitt Drew, President and CEO.

Income Highlights

· Net income increased 16% to $1.2 million, or $0.48 per diluted share, from $1.1 million, or $0.42 per diluted share. An adjustment was made to estimated tax accruals in the first quarter, and, absent this adjustment, the Company expects it will be accruing a tax rate of approximately 14% for the remainder of 2018.

· Net interest income improved $382 thousand to $4.4 million, primarily due to growth in average total loans of $29.2 million. The increase in provision for loan losses to $215 thousand was necessitated by continued strong loan growth.

· Higher net interest income was mostly offset by a decrease in noninterest income and increases in provision for loan loss and noninterest expense. Noninterest income continues to be impacted by lower service charges as the economy improves and decreased mortgage banking fees as a result of closing Empire Financial Services.

Balance Sheet Trends

· Total assets at March 31, 2018, were $510.1 million, up 8% or $39.2 million. Total loans grew 8%, or $24.5 million, to $335.2 million, while continuing to maintain high standards of credit quality. Net charge-offs to average loans were 0.11%.

· Total deposits were up over 6%, or $25.4 million, to $418.4 million at March 31, 2018. Federal Home Loan Bank Advances were up $12.6 million as further funding for loan growth. The average cost of all interest bearing liabilities increased 18 basis points to 0.77%.

Capital Management

· Book value per share grew 5% to $16.23 at March 31, 2018.

· In March 2018, the Company paid a quarterly cash dividend of $0.11 per common share. Southwest Georgia Financial Corporation or its predecessor, Southwest Georgia Bank, has paid cash dividends for 90 consecutive years.

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Webcast and Conference Call

The Company will host a conference call and webcast on Tuesday, April 24, 2018 at 1:00 p.m. ET. Management will review the financial and operating results for the first quarter 2018, as well as the Company’s strategy and outlook. A question and answer session will follow the formal discussion.

The conference call can be accessed by calling (201) 689-8263. Alternatively, the webcast can be monitored at www.sgb.bank.

A telephonic replay will be available from 4:00 p.m. ET on the day of the teleconference until Tuesday, May 1, 2018. To listen to the archived call, dial (412) 317-6671 and enter conference ID number 13678425, or access the webcast replay at www.sgb.bank/investor-relations, where a transcript will be posted once available.

About Southwest Georgia Financial Corporation

Southwest Georgia Financial Corporation is a state-chartered bank holding company with approximately $510 million in assets headquartered in Moultrie, Georgia. Its primary subsidiary, Southwest Georgia Bank, offers comprehensive financial services to consumer, business, and government customers. The current banking facilities include the main office located in Colquitt County, branch offices located in Baker County, Worth County and Lowndes County, and a loan production office located in Tift County. In addition to conventional banking services, the Company provides investment planning and management, trust management, and commercial and individual insurance products. Insurance products and advice are provided by Southwest Georgia Insurance Services, which is located in Colquitt County. The Company routinely posts news and other important information on its website.

More information on Southwest Georgia Financial Corporation and Southwest Georgia Bank can be found at: www.sgb.bank.

SAFE HARBOR STATEMENT
This news release contains forward-looking statements, as defined by federal securities laws, including statements about the Company’s financial outlook. These statements are based on current expectations and are provided to assist in the understanding of future financial performance. Such performance involves risks and uncertainties that may cause actual results to differ materially from those expressed or implied in any such statements. Important factors that could cause actual results to differ materially from those contemplated today include a change in the Company’s capital structure, new or expanded regulatory requirements, the success of the Company’s growth strategy, customer preferences, the interest rate environment and other factors described in the Company’s filings with the Securities and Exchange Commission, including its Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q under the sections entitled “Forward-Looking Statements” and “Risk Factors”. The Company undertakes no obligation to update any forward-looking statements as a result of new information, future events or otherwise, except as otherwise required by law.

Financial tables follow.

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SOUTHWEST GEORGIA FINANCIAL CORPORATION

CONSOLIDATED STATEMENT OF CONDITION

(Dollars in thousands except per share data)

	(Unaudited)			(Audited)			(Unaudited)
	March 31,			December 31,			March 31,
	2018			2017			2017
ASSETS
Cash and due from banks	$	9,777		$	11,143		$	7,133
Interest-bearing deposits in banks		39,210			22,995			18,106
Certificates of deposit in other banks		1,985			1,985			1,235
Investment securities available for sale		56,228			54,364			59,692
Investment securities held to maturity		43,898			44,591			52,698
Federal Home Loan Bank stock, at cost		2,475			2,438			1,905
Loans, less unearned income and discount		335,185			330,173			310,707
Allowance for loan losses		(3,170	)		(3,044	)		(3,162	)
Net loans		332,015			327,129			307,545
Premises and equipment		12,975			12,250			11,260
Bank properties held for sale		212			212			212
Foreclosed assets, net		0			759			127
Intangible assets		16			20			31
Bank owned life insurance		6,595			6,553			5,390
Other assets		4,747			4,633			5,563
Total assets	$	510,133		$	489,072		$	470,897
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
NOW accounts	$	28,318		$	25,871		$	38,164
Money market		139,728			129,040			114,702
Savings		32,683			30,794			30,190
Certificates of deposit $250,000 and over		22,636			22,662			21,016
Other time accounts		62,186			60,970			60,215
Total interest-bearing deposits		285,551			269,337			264,287
Noninterest-bearing deposits		132,898			127,669			128,720
Total deposits		418,449			397,006			393,007
Other borrowings		19,471			17,971			8,448
Long-term debt		27,557			29,057			26,029
Accounts payable and accrued liabilities		3,330			3,895			4,110
Total liabilities		468,807			447,929			431,594
Shareholders' equity:
Common stock - par value $1;  5,000,000 shares
authorized; 4,293,835 shares issued (*)		4,294			4,294			4,294
Additional paid-in capital		5,459			31,701			31,701
Retained earnings		33,972			33,021			31,118
Accumulated other comprehensive income		(2,399	)		(1,630	)		(1,690	)
Total		41,326			67,386			65,423
Treasury stock - at cost (**)		0			(26,243	)		(26,120	)
Total shareholders' equity		41,326			41,143			39,303
Total liabilities and shareholders' equity	$	510,133		$	489,072		$	470,897
*    Common stock - shares outstanding		2,545,776			2,541,505			2,547,437
** Treasury stock - shares		0			1,752,330			1,746,398

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SOUTHWEST GEORGIA FINANCIAL CORPORATION

CONSOLIDATED INCOME STATEMENT (unaudited*)

(Dollars in thousands except per share data)

	For the Three Months
	Ended March 31,
	2018*			2017*
Interest income:
Interest and fees on loans	$	4,293		$	3,785
Interest and dividend on securities available for sale		331			325
Interest on securities held to maturity		277			316
Dividends on Federal Home Loan Bank stock		32			24
Interest on deposits in banks		118			50
Interest on certificates of deposit in other banks		11			2
Total interest income		5,062			4,502
Interest expense:
Interest on deposits		372			272
Interest on other borrowings		116			26
Interest on long-term debt		126			138
Total interest expense		614			436
Net interest income		4,448			4,066
Provision for loan losses		215			75
Net interest income after provision for losses on loans		4,233			3,991
Noninterest income:
Service charges on deposit accounts		224			270
Income from trust services		59			54
Income from retail brokerage services		88			89
Income from insurance services		388			433
Income from mortgage banking services		1			72
Net gain (loss) on the sale or disposition of assets		(7	)		0
Net gain on the sale of securities		0			124
Other income		241			241
Total noninterest income		994			1,283
Noninterest expense:
Salary and employee benefits		2,341			2,298
Occupancy expense		290			279
Equipment expense		190			205
Data processing expense		354			387
Amortization of intangible assets		4			4
Other operating expense		817			728
Total noninterest expense		3,996			3,901
Income before income tax expense		1,231			1,373
Provision for income taxes		(1	)		308
Net income	$	1,232		$	1,065
Net income per share, basic	$	0.48		$	0.42
Net income per share, diluted	$	0.48		$	0.42
Dividends paid per share	$	0.11		$	0.11
Basic weighted average shares outstanding		2,544,922			2,547,437
Diluted weighted average shares outstanding		2,544,922			2,547,437

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SOUTHWEST GEORGIA FINANCIAL CORPORATION

Financial Highlights

(Dollars in thousands except per share data)

At March 31	2018		2017
Assets	$	510,133	$	470,897
Loans, less unearned income & discount	$	335,185	$	310,707
Deposits	$	418,449	$	393,007
Shareholders' equity	$	41,326	$	39,303

	Three Months Ended March 31,
	2018			2017
Performance Data & Ratios
Net income	$	1,232		$	1,065
Earnings per share, basic	$	0.48		$	0.42
Earnings per share, diluted	$	0.48		$	0.42
Dividends paid per share	$	0.11		$	0.11
Return on assets		0.99	%		0.91	%
Return on equity		11.89	%		10.91	%
Net interest margin (tax equivalent)		4.05	%		3.98	%
Dividend payout ratio		22.74	%		26.30	%
Efficiency ratio		70.92	%		70.15	%
Asset Quality Data & Ratios
Total nonperforming loans	$	1,506		$	1,222
Total nonperforming assets	$	1,506		$	1,349
Net loan charge offs	$	89		$	38
Reserve for loan losses to total loans		0.95	%		1.02	%
Nonperforming loans/total loans		0.45	%		0.39	%
Nonperforming assets/total assets		0.30	%		0.29	%
Net charge offs / average loans		0.11	%		0.05	%
Capital Ratios
Average common equity to average total assets		8.33	%		8.38	%
Common equity Tier 1 capital ratio		12.86	%		12.54	%
Tier 1 capital ratio		12.86	%		12.54	%
Tier 1 leverage ratio		8.78	%		8.79	%
Total risk based capital ratio		13.79	%		13.50	%
Book value per share	$	16.23		$	15.43
Tangible book value per share	$	16.23		$	15.42

Quarterly	1st Qtr			4th Qtr			3rd Qtr			2nd Qtr			1st Qtr
Averages	2018			2017			2017			2017			2017
Assets	$	497,562		$	486,699		$	471,643		$	469,201		$	466,019
Loans, less unearned income & discount	$	331,822		$	330,842		$	324,206		$	312,848		$	302,620
Deposits	$	405,827		$	396,746		$	385,989		$	390,268		$	388,761
Equity	$	41,466		$	41,502		$	41,089		$	40,169		$	39,054
Return on assets		0.99	%		0.59	%		0.81	%		0.92	%		0.91	%
Return on equity		11.89	%		6.91	%		9.26	%		10.69	%		10.91	%
Net income	$	1,232		$	717		$	952		$	1,074		$	1,065
Net income per share, basic	$	0.48		$	0.28		$	0.37		$	0.42		$	0.42
Net income per share, diluted	$	0.48		$	0.28		$	0.37		$	0.42		$	0.42
Dividends paid per share	$	0.11		$	0.11		$	0.11		$	0.11		$	0.11

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