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Colony Bankcorp Reports Fourth Quarter 2020 Results

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·22 min read
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Company Declares Quarterly Cash Dividend of $0.1025 Per Share

Colony Bankcorp, Inc. (Nasdaq: CBAN) ("Colony" or the "Company") today reported net income of $4.9 million, $0.52 per diluted share, for the quarter ended December 31, 2020, compared with $2.8 million, or $0.29 per diluted share, for the quarter ended December 31, 2019. The Company reported operating net income of $4.2 million, or $0.44 per diluted share, for the quarter ended December 31, 2020, compared with $3.0 million, or $0.32 per diluted share for the same period in 2019. Operating net income excludes after-tax acquisition related expenses, gain on sale and write-down of the Thomaston banking center as well as the net income tax expense (benefit) for the adjustments.

For the year-to-date period ended December 31, 2020, the Company reported net income of $11.8 million, or $1.24 per diluted share, compared with $10.2 million, or $1.12 per diluted share for the same period in 2019. The Company reported operating net income of $12.1 million, or $1.28 per diluted share, for the year-ended December 31, 2020, compared with $12.8 million, or $1.35 per diluted share, for the same period in 2019. Operating net income excludes the same items listed above for the Company’s quarter-to-date period.

Fourth Quarter 2020 Financial Highlights:

  • Net income of $4.9 million, or $0.52 per diluted share, an increase of $1.8 million, or $0.19 per diluted share, compared to the third quarter of 2020.

  • Operating net income of $4.2 million, or $0.44 per diluted share, an increase of $484,000, or $0.05, compared to the third quarter of 2020 (see Non-GAAP reconciliation).

  • Growth in total assets of $4.5 million, or 26 basis points, compared to the third quarter of 2020.

  • Increase in noninterest income from mortgage banking activity of $827,000 compared to the third quarter of 2020.

  • $1.3 million provision for loan losses, an increase of $190,000, or 17.18%, compared to the third quarter 2020.

The Company also announced that on January 21, 2021, the Board of Directors declared a quarterly cash dividend of $0.1025 per share, to be paid on its common stock on February 12, 2021, to shareholders of record as of the close of business on January 31, 2021.

Commenting on the announcement, Heath Fountain, President and Chief Executive Officer, said, "While we continue to operate in a difficult environment due to the ongoing global pandemic, I am pleased to report strong earnings growth for the fourth quarter and full year. Diluted earnings per share increased 78% over the same period last year and 11% for the full year.

"Our efforts in business development and adding talented bankers to our team continues to have positive impacts on our operations. We saw solid growth in our balance sheet metrics for both the fourth quarter and full year, including growth in total loans, total deposits and total assets. Asset quality remained strong throughout the year and we are pleased that most loans for which payments were deferred for borrowers in response to the global pandemic are back to current status. We ended the year with total interest earning assets of $1.6 billion, up $258.0 million, or 19% propelling total assets to $1.8 billion, a record for the Company. Total loans, including acquisition activity and loans from the Small Business Administration Payroll Protection Program ("PPP"), increased 9% year-over-year, while legacy loan growth increased 6%. Furthermore, strong growth in net interest income was partially offset by higher provisions for loan losses due to the global pandemic as well as increases in noninterest expense, such as salaries and employee benefits, as well as occupancy and equipment.

"Net interest margin increased 24 basis points to 3.58% over the sequential quarter primarily driven by increased accretion income on acquired loans and deferred fee income recognized on PPP loans. During the quarter ended December 31, 2020, PPP loans totaling approximately $32.6 million were forgiven through the SBA. Increases to accretion income during the quarter ended December 31, 2020, were primarily driven by higher than expected loan payoffs as well as changes to cash flow projections on remaining loans driven by loan performance during the second half of the year ended 2020. Additionally, our continued efforts to diversify our revenue streams resulted in strong full year increases in our noninterest income of $10.2 million, highlighted by mortgage fee income growth of $6.0 million helping to mitigate declining margins."

In closing, Fountain added, "We are pleased with the Company’s continued growth during 2020 despite operating in one of the most difficult economic environments experienced in our times. These achievements reaffirm the strategic initiatives we have put in place to grow our business across our markets and also reflect the dedication and hard work of everyone at Colony Bankcorp. While the current economic environment and competitive landscape is intense, we are optimistic based on our loan pipeline, core deposit base growth, diversified streams of earnings and mortgage fee income as we continue to deliver market share gains. Moreover, we will also support our customers and communities by participating in the recently announced new round of the Small Business Administration Payroll Protection Program. While some of our competitors have suspended payments, our Board remains confident in our operational structure and strategic vision as evidenced by the continued dividend payment. We look forward to the coming year with renewed enthusiasm as we seek opportunities to continue to reward our shareholders."

Balance Sheet

  • Total assets totaled $1.8 billion at December 31, 2020, an increase of $248.7 million, or 16%, compared to the same period in 2019.

  • Interest-bearing deposits in banks at December 31, 2020, totaled $166.3 million, an increase of $77.8 million, or 87.8% compared to the same period in 2019. The increase is primarily attributable to the funding of approximately 1,700 PPP loans during 2020, which also generated much higher balances in our interest-bearing deposits in banks as of December 31, 2020.

  • Total loans, including loans held for sale, totaled $1.11 billion at December 31, 2020, an increase of $133.0 million, or 14%, from the same period in 2019. Growth in core loans was primarily attributable to PPP loan originations, while mortgage demand substantially increased during 2020 as a result of declining interest rates.

  • Total deposits totaled $1.45 billion at December 31, 2020, an increase of $151.3 million, or 12%, compared to the same period in 2019. The increase in deposits was primarily in noninterest-bearing deposits as a result of the PPP loan activity during 2020.

  • Total borrowings at December 31, 2020, totaled $167.1 million, an increase of $81.3 million or 94.8% compared to the same period in 2019. While the Company prepaid $24.5 million in FHLB advances, funding of PPP loans through the Payroll Protection Program Liquidity Facility ("PPPLF") increased outstanding borrowings substantially during 2020. At December 31, 2020, the PPPLF totaled $106.8 million with comparison to prior year not applicable.

Capital

  • Colony continues to maintain a strong capital position, with ratios that exceed regulatory minimums required to be classified as "well-capitalized."

  • Preliminary tier one leverage ratio, tier one capital ratio, total risk-based capital ratio and common equity tier one capital ratio were 9.55%, 14.29%, 15.37%, and 12.21%, respectively.

Fourth Quarter Results of Operations

  • Net interest income on a tax-equivalent basis for the fourth quarter 2020 totaled $15.2 million, compared to $13.9 million for the third quarter 2020. The increase during the quarter is primarily attributable to increases in accretion income on acquired loans and loan fee income recognized on PPP loans forgiven which was only partially offset by a decrease in the cost of interest-bearing liabilities.

  • Net interest margin was up 24 basis points over the sequential quarter primarily driven by increased accretion income on acquired loans and deferred fee income recognized on PPP loans. During the quarter ended December 31, 2020, PPP loans totaling approximately $32.6 million were forgiven through the SBA. Accretion income increased $384,000 for the quarter ended December 31, 2020, which was primarily driven by higher than expected loan payoffs as well as changes to cash flow projections on remaining loans driven by loan performance during the second half of the year ended 2020. These positive impacts to the margin were primarily offset by increases in lower-yielding, highly-liquid assets, combined with the reduction by the Federal Reserve of interest rates during 2020.

  • Noninterest income totaled $8.0 million for the fourth quarter ended December 31, 2020, an increase of $485,000, or 6.4%, compared to the same period in 2019. The increase was primarily attributable to growth in mortgage production income as a result of increased loan demand resulting from a historically low interest rate environment. Also, during the fourth quarter 2020, the Thomaston banking center was sold resulting in a gain on sale.

  • Noninterest expense totaled $16.0 million for the fourth quarter ended December 31, 2020, compared to $16.3 million for the sequential quarter ended 2019. The decrease in noninterest expense during the fourth quarter 2020 was primarily attributable FHLB prepayment penalties only during the third quarter 2020.

Asset Quality

  • Nonperforming assets totaled $10.2 million and $10.5 million at December 31, 2020 and 2019, respectively.

  • OREO and repossessed assets totaled $1.0 million at December 31, 2020, a decrease of $297,000, or 22.3%, compared to the same quarter in 2019.

  • Net loan charge-offs were $189,000, or 0.07% of average loans, compared to $317,000 in the fourth quarter of 2019.

  • The loan loss reserve was $12.1 million, or 1.14% of total loans, on December 31, 2020, compared $6.9 million, or 0.71% of total loans, at December 31, 2019.

While nonperforming assets have increased year-over-year primarily as a result of increased traditional loan production, asset quality remains strong with overall improvement as of the fourth quarter 2020 compared to previous quarter and year-over-year comparisons. The increase in the provision for loan losses was directly impacted by the current economic disruptions resulting from the continued COVID-19 pandemic crisis.

About Colony Bankcorp

Colony Bankcorp, Inc. is the bank holding company for Colony Bank. Founded in 1975 and headquartered in Fitzgerald, Georgia, Colony operates 32 locations throughout Georgia. The Homebuilder Finance Division helps the local construction industry with building and construction loans, and the Small Business Specialty Lending Division assists small businesses with government guaranteed loans. The Bank also helps its customers achieve their goal of home ownership through Colony Bank Mortgage. Colony’s common stock is traded on the NASDAQ Global Market under the symbol "CBAN." For more information, please visit www.colony.bank. You can also follow the Company on Facebook or on Twitter @colony_bank.

Forward-Looking Statements

Certain statements contained in this press release that are not statements of historical fact constitute "forward-looking statements" within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In addition, certain statements may be contained in the Company’s future filings with the SEC, in press releases, and in oral and written statements made by or with the approval of the Company that are not statements of historical fact and constitute "forward-looking statements" within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Examples of forward-looking statements include, but are not limited to: (i) projections and/or expectations of revenues, income or loss, earnings or loss per share, the payment or nonpayment of dividends, capital structure and other financial items; (ii) statement of plans and objectives of Colony Bankcorp, Inc. or its management or Board of Directors, including those relating to products or services; (iii) statements of future economic performance; (iv) statements regarding growth strategy, capital management, liquidity and funding, and future profitability; (v) statements regarding the potential effects of the COVID-19 pandemic on the Company’s business and financial results and conditions; and (vi) statements of assumptions underlying such statements. Words such as "believes," "anticipates," "expects," "intends," "targeted" and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements.

Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties. Factors that might cause such differences include, but are not limited to: the impact of the COVID-19 pandemic on the Company’s assets, business, cash flows, financial condition, liquidity, prospects and results of operations; potential increases in the provision for loan losses resulting from the COVID-19 pandemic; the Company’s ability to implement its various strategic and growth initiatives; competitive pressures among financial institutions increasing significantly; economic conditions, either nationally or locally, in areas in which the Company conducts operations being less favorable than expected; interest rate risk; legislation or regulatory changes which adversely affect the ability of the consolidated Company to conduct business combinations or new operations, including changes to statutes, regulations or regulatory policies or practices as a result of, or in response to COVID-19; adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions, including as a result of the Company’s participation in and execution of government programs related to the COVID-19 pandemic; risks that the anticipated benefits from the sale of the Thomaston branch and the transactions with LBC Bancshares, Inc. and PFB Mortgage are not realized in the time frame anticipated or at all as a result of changes in general economic and market conditions or other unexpected factors or events. These and other factors, risks and uncertainties could cause the actual results, performance or achievements of the Company to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. Many of these factors are beyond the Company’s ability to control or predict.

Forward-looking statements speak only as of the date on which such statements are made. These forward-looking statements are based upon information presently known to the Company’s management and are inherently subjective, uncertain and subject to change due to any number of risks and uncertainties, including, without limitation, the risks and other factors set forth in the Company’s filings with the Securities and Exchange Commission, the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, under the captions "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors," and in the Company’s quarterly reports on Form 10-Q and current reports on Form 8-K. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events. Readers are cautioned not to place undue reliance on these forward-looking statements.

Explanation of Certain Unaudited Non-GAAP Financial Measures

The measures entitled operating net income; adjusted earnings per diluted share; tangible book value per common share and operating efficiency ratio are not measures recognized under U.S. generally accepted accounting principles (GAAP) and therefore are considered non-GAAP financial measures. The most comparable GAAP measures are net income, diluted earnings per share, book value per common share and efficiency ratio, respectively.

Management uses these non-GAAP financial measures in its analysis of the Company's performance and believes these presentations provide useful supplemental information, and a clearer understanding of the Company's performance, and if not provided would be requested by the investor community. The Company believes the non-GAAP measures enhance investors' understanding of the Company's business and performance. These measures are also useful in understanding performance trends and facilitate comparisons with the performance of other financial institutions. The limitations associated with operating measures are the risk that persons might disagree as to the appropriateness of items comprising these measures and that different companies might calculate these measures differently.

These disclosures should not be considered an alternative to GAAP. The computations of operating net income; adjusted earnings per diluted share; tangible book value per common share and operating efficiency ratio and the reconciliation of these measures to net income, diluted earnings per share, book value per common share and efficiency ratio are set forth in the table below.

Colony Bankcorp, Inc.

Reconciliation of Non-GAAP Measures

2020

2019

(dollars in thousands, except per share data)

Fourth
Quarter

Third
Quarter

Second
Quarter

First
Quarter

Fourth
Quarter

Operating net income reconciliation

Net income (GAAP)

$

4,900

$

3,098

$

2,214

$

1,603

$

2,756

Acquisition-related expenses

148

207

220

287

335

Thomaston building write down

582

Gain on sale of Thomaston branch

(1,026

)

Income tax expense (benefit)

184

(166

)

(46

)

(60

)

(70

)

Operating net income

$

4,206

$

3,722

$

2,388

$

1,830

$

3,021

Weighted average diluted shares

9,498,783

9,498,783

9,498,783

9,498,783

9,494,859

Adjusted earnings per diluted share

$

0.44

$

0.39

$

0.25

$

0.19

$

0.32

Tangible book value per common share reconciliation

Book value per common share (GAAP)

$

15.21

$

14.78

$

14.59

$

14.35

$

13.74

Effect of goodwill and other intangibles

(1.95

)

(1.96

)

(1.96

)

(2.06

)

(2.06

)

Tangible book value per common share

$

13.26

$

12.82

$

12.63

$

12.29

$

11.68

Operating efficiency ratio calculation

Efficiency ratio (GAAP)

68.93

%

76.22

%

72.75

%

77.32

%

77.24

%

Acquisition-related expenses

(0.64

)

(0.97

)

(1.20

)

(1.68

)

(1.92

)

Gain on sale of Thomaston branch

3.19

%

%

%

%

%

Thomaston building write down

%

(2.72

)%

%

%

%

Operating efficiency ratio

71.49

%

72.53

%

71.55

%

75.64

%

75.32

%

Colony Bankcorp, Inc.

Selected Financial Information

2020

2019

(dollars in thousands, except per share data)

Fourth
Quarter

Third
Quarter

Second
Quarter

First
Quarter

Fourth
Quarter

EARNINGS SUMMARY

Net interest income

$

15,151

$

13,848

$

13,541

$

12,705

$

12,992

Provision for loan losses

1,296

1,106

2,200

1,956

581

Non-interest income

8,039

6,930

4,843

4,432

4,412

Non-interest expense

15,986

15,690

13,375

13,250

13,496

Income taxes

1,008

884

595

328

571

Net income

4,900

3,098

2,214

1,603

2,756

PERFORMANCE MEASURES

Per common share:

Common shares outstanding

9,498,783

9,498,783

9,498,783

9,498,783

9,498,783

Weighted average basic shares

9,498,783

9,498,783

9,498,783

9,498,783

9,494,859

Weighted average diluted shares

9,498,783

9,498,783

9,498,783

9,498,783

9,494,859

Earnings per basic share

$

0.52

$

0.33

$

0.23

$

0.17

$

0.29

Earnings per diluted share

0.52

0.33

0.23

0.17

0.29

Adjusted earnings per diluted share

0.44

0.39

0.25

0.39

0.32

Cash dividends declared per share

0.10

0.10

0.10

0.10

0.08

Common book value per share

15.21

14.78

14.59

14.35

13.74

Tangible common book value per share

13.26

12.82

12.63

12.29

11.68

Performance ratios:

Net interest margin (a)

3.58

%

3.34

%

3.41

%

3.63

%

3.70

%

Return on average assets

1.08

0.70

0.52

0.42

0.73

Return on average total equity

13.73

8.80

6.47

4.79

8.47

Efficiency ratio

68.93

76.22

72.75

77.32

77.24

Operating efficiency ratio (b)

71.49

72.53

71.55

75.64

75.32

ASSET QUALITY

Nonperforming loans (NPLs)

$

9,128

$

9,926

$

11,459

$

10,130

$

9,179

Other real estate owned

1,006

1,875

1,769

847

1,320

Repossessed assets

30

11

17

19

13

Total nonperforming assets (NPAs)

10,164

11,812

13,245

10,996

10,512

Classified loans

30,404

21,388

20,619

23,093

21,084

Criticized loans

75,633

72,076

52,200

46,600

51,182

Net loan charge-offs

189

375

295

435

317

Allowance for loan losses to total loans

1.14

%

1.00

%

0.92

%

0.85

%

0.71

%

Allowance for loan losses to total NPLs

132.85

111.02

89.79

64.81

74.77

Allowance for loan losses to total NPAs

119.31

93.29

77.68

60.83

65.29

Net charge-offs to average loans

0.07

0.13

0.12

0.18

0.13

NPLs to total loans

0.86

0.90

1.03

1.13

0.95

NPAs to total assets

0.58

0.67

0.75

0.91

0.69

NPAs to total loans and other real estate owned

0.96

1.07

1.19

1.39

1.08

AVERAGE BALANCES

Total assets

$

1,797,749

$

1,766,717

$

1,702,902

$

1,516,191

$

1,503,521

Loans, net

1,151,872

1,130,231

1,094,299

974,614

961,756

Deposits

1,456,287

1,140,487

1,384,739

1,293,784

1,278,987

Total stockholders’ equity

141,570

139,721

137,213

134,304

130,217

(a) Computed using fully taxable-equivalent net income.

(b) Non-GAAP measure - see "Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and reconciliation to GAAP

Colony Bankcorp, Inc.

Average Balance Sheet and Net Interest Analysis

(dollars in thousands)

Three Months Ended December 31,

2020

2019

Average
Balances

Income/
Expense

Yields/
Rates

Average
Balances

Income/
Expense

Yields/
Rates

Assets

Interest-earning assets:

Loans, net of unearned income 1

$

1,151,872

$

14,878

5.12

%

$

977,760

$

13,898

5.64

%

Investment securities, taxable

335,228

1,485

1.76

%

355,484

2,064

2.30

%

Investment securities, tax-exempt 2

31,218

147

1.87

%

1,138

9

3.14

%

Deposits in banks and short term investments

168,876

54

0.13

%

66,690

246

1.46

%

Total interest-earning assets

1,687,194

16,564

3.89

%

1,401,072

16,217

4.59

%

Noninterest-earning assets

110,555

99,145

Total assets

$

1,797,749

$

1,500,217

Liabilities and stockholders' equity

Interest-bearing liabilities:

Interest-earning demand and savings

$

843,497

$

203

0.10

%

$

697,893

$

1,040

0.59

%

Other time

280,175

630

0.89

%

357,364

1,440

1.60

%

Total interest-bearing deposits

1,123,672

833

0.29

%

1,055,257

2,480

0.93

%

Federal Home Loan Bank advances

22,500

116

2.06

%

49,283

271

2.18

%

Paycheck Protection Program Liquidity Facility

128,554

118

0.36

%

%

Other borrowings

38,339

254

2.62

%

39,036

415

4.22

%

Total other interest-bearing liabilities

189,393

488

%

88,319

686

3.08

%

Total interest-bearing liabilities

1,313,065

1,321

0.40

%

1,143,576

3,166

1.10

%

Noninterest-bearing liabilities:

Demand deposits

$

332,615

$

220,356

Other liabilities

10,499

6,068

Stockholders' equity

141,570

130,217

Total noninterest-bearing liabilities and stockholders' equity

484,684

356,641

Total liabilities and stockholders' equity

$

1,797,749

$

1,500,217

Interest rate spread

3.49

%

3.49

%

Net interest income

$

15,243

$

13,051

Net interest margin

3.58

%

3.70

%

1The average balance of loans includes the average balance of nonaccrual loans. Income on such loans is recognized and recorded on the cash basis. Taxable-equivalent adjustments totaling $61,000 and $53,000 for the quarter ended December 31, 2020 and 2019, respectively, are included in income and fees on loans. Accretion income of $385,000 and $350,000 for the quarter ended December 31, 2020 and 2019 are also included in income and fees on loans.

2Taxable-equivalent adjustments totaling $31,000 and $3,000 three months period ended December 31, 2020 and 2019, respectively, are included in tax-exempt interest on investment securities. The adjustments are based on federal tax rate of 21% with appropriate reductions for the effect of disallowed interest expense incurred in carrying tax-exempt obligations.

Twelve Months ended December 31,

2020

2019

Average
Balances

Income/
Expense

Yields/
Rates

Average
Balances

Income/
Expense

Yields/
Rates

Assets

Interest-earning assets:

Loans, net of unearned income 1

$

1,092,009

$

55,802

5.11

%

$

896,098

$

50,464

5.63

%

Investment securities, taxable

336,140

6,875

2.05

%

374,719

9,103

2.43

%

Investment securities, tax-exempt 2

17,070

331

1.94

%

1,737

56

3.22

%

Deposits in banks and short term investments

141,641

438

0.31

%

56,891

1,056

1.86

%

Total interest-earning assets

1,586,860

63,446

4.00

%

1,329,445

60,679

4.56

%

Noninterest-earning assets

104,375

81,886

Total assets

$

1,691,235

$

1,411,331

Liabilities and stockholders' equity

Interest-bearing liabilities:

Interest-earning demand and savings

$

787,030

$

1,870

0.24

%

$

640,180

$

4,274

0.67

%

Other time

305,374

3,729

1.22

%

361,319

5,775

1.60

%

Total interest-bearing deposits

1,092,404

5,599

0.51

%

1,001,499

10,049

1.00

%

Federal Home Loan Bank advances

33,249

743

2.23

%

45,233

1,046

2.31

%

Paycheck Protection Program Liquidity Facility

90,768

205

0.23

%

%

...

Other borrowings

38,527

1,333

3.46

%

34,159

1,542

4.51

%

Total other interest-bearing liabilities

162,544

2,281

1.40

%

79,392

2,588

3.26

%

Total interest-bearing liabilities

1,254,948

7,880

0.63

%

1,080,891

12,637

1.17

%

Noninterest-bearing liabilities:

Demand deposits

294,008

$

208,320

Other liabilities

4,325

5,002

Stockholders' equity

137,954

117,118

Total noninterest-bearing liabilities and stockholders' equity

436,287

330,440

Total liabilities and stockholders' equity

$

1,691,235

$

1,411,331

Interest rate spread

3.34

%

3.40

%

Net interest income

$

55,566

$

48,042

Net interest margin

3.50

%

3.61

%

3The average balance of loans includes the average balance of nonaccrual loans. Income on such loans is recognized and recorded on the cash basis. Taxable-equivalent adjustments totaling $252,000 and $182,000 for the year ended December 31, 2020 and 2019, respectively, are included in income and fees on loans. Accretion income of $763,000 and $583,000 for the quarter ended December 31, 2020 and 2019 are also included in income and fees on loans.

4Taxable-equivalent adjustments totaling $69,000 and $11,000 for twelve months period ended December 31, 2020 and 2019, respectively, are included in tax-exempt interest on investment securities. The adjustments are based on federal tax rate of 21% with appropriate reductions for the effect of disallowed interest expense incurred in carrying tax-exempt obligations.

Colony Bankcorp, Inc.

Segment Reporting

Three months ended December 31,

Twelve months ended December 31,

(dollars in thousands)

2020

2019

2020

2019

Banking Division

Net interest income

$

13,240

$

12,931

$

51,546

$

47,684

Provision for loan losses

1,296

581

6,558

1,104

Noninterest income

3,952

2,743

13,288

10,865

Noninterest expenses

11,656

11,315

47,805

43,669

Income taxes

643

687

1,947

2,642

Segment income

$

3,597

$

3,091

$

8,524

$

11,134

Total segment assets

$

1,606,086

$

1,503,284

$

1,606,085

$

1,503,284

Mortgage Banking Division

Net interest income

$

299

$

64

$

603

$

164

Provision for loan losses

Noninterest income

3,420

1,251

9,106

3,139

Noninterest expenses

2,835

1,220

8,137

3,258

Income taxes

188

20

325

10

Segment income

$

696

$

75

$

1,247

$

35

Total segment assets

$

50,265

$

11,624

$

50,265

$

11,624

Small Business Specialty Lending Division

Net interest income

$

1,612

$

$

1,483

$

Provision for loan losses

Noninterest income

667

1,183

Noninterest expenses

1,495

652

924

1,213

Income taxes

177

(136

)

198

(254

)

Segment income

$

607

$

(516

)

$

1,544

$

(959

)

Total segment assets

$

107,623

$

405

$

107,623

$

405

Total Consolidated

Net interest income

$

15,151

$

12,995

$

53,632

$

47,848

Provision for loan losses

1,296

581

6,558

1,104

Noninterest income

8,039

3,994

23,577

14,004

Noninterest expenses

15,986

13,187

56,866

48,140

Income taxes

1,008

571

2,470

2,398

Segment income

$

4,900

$

2,650

$

11,315

$

10,210

Total segment assets

$

1,763,974

$

1,515,313

$

1,763,973

$

1,515,313

Colony Bankcorp, Inc.

Consolidated Balance Sheets

December 31, 2020

December 31, 2019

(dollars in thousands)

(unaudited)

(audited)

ASSETS

Cash and due from banks

$

17,218

$

15,570

Interest-bearing deposits in banks and federal funds sold

166,288

88,522

Cash and cash equivalents

183,506

104,092

Investment securities available for sale, at fair value

380,814

347,332

Other investments, at cost

3,296

4,288

Loans held for sale

52,386

10,076

Loans, net of unearned income

1,059,503

968,814

Allowance for loan losses

(12,127

)

(6,863

)

Loans, net

1,047,376

961,951

Premises and equipment

32,057

32,482

Other real estate

1,006

1,320

Goodwill and other intangible assets

18,558

19,533

Bank owned life insurance

31,547

21,629

Other assets

13,428

12,610

Total assets

$

1,763,974

$

1,515,313

LIABILITIES AND STOCKHOLDERS’ EQUITY

Liabilities:

Deposits:

Noninterest-bearing

$

326,999

$

232,635

Interest-bearing

1,118,028

1,061,107

Total deposits

1,445,027

1,293,742

Federal Home Loan Bank advances

22,500

47,000

Paycheck Protection Program Liquidity Facility

106,789

Other borrowed money

37,792

38,792

Accrued expenses and other liabilities

7,378

5,273

Total liabilities

1,619,486

1,384,807

Stockholders’ equity

Common stock, $1 par value; 20,000,000 shares authorized, 9,498,783 issued and outstanding, respectively

9,499

9,499

Paid in capital

43,215

43,667

Retained earnings

84,993

76,978

Accumulated other comprehensive income, net of tax

6,781

362

Total stockholders’ equity

144,488

130,506

Total liabilities and stockholders’ equity

$

1,763,974

$

1,515,313

Colony Bankcorp, Inc.

Consolidated Statements of Income (unaudited)

Three months ended December 31,

Twelve months ended December 31,

2020

2019

2020

2019

(dollars in thousands, except per share data)

Interest income:

Loans, including fees

$

14,818

13,844

$

55,550

50,281

Investment securities, including tax exempt of $31, $3, $69, $11, respectively

1,601

2,071

7,137

9,149

Deposits in banks and short term investments

53

246

438

1,056

Total interest income

16,472

16,161

63,125

60,486

Interest expense:

Deposits

833

2,480

5,599

10,049

Federal Home Loan Bank advances

116

271

743

1,046

Paycheck Protection Program Liquidity Facility

118

205

Other borrowings

254

415

1,333

1,542

Total interest expense

1,321

3,166

7,880

12,637

Net interest income

15,151

12,995

55,245

47,849

Provision for loan losses

1,296

581

6,558

1,104

Net interest income after provision for loan losses

13,855

12,414

48,687

46,745

Noninterest income:

Service charges on deposits

1,387

1,596

5,293

5,593

Mortgage fee income

3,443

1,257

9,149

3,199

Gain on sale of SBA loans

596

1,600

(Loss)/Gain on sale of securities

(83

)

(2

)

926

97

Gain on sale of assets

1,026

1,082

Interchange fees

1,363

1,012

4,988

3,768

BOLI Income

195

131

743

536

Other

112

463

811

Total noninterest income

8,039

3,994

24,244

14,004

Noninterest expense:

Salaries and employee benefits

9,810

7,370

34,141

26,218

Occupancy and equipment

1,339

1,391

5,311

4,850

Acquisition related

148

335

862

3,333

Information technology expenses

1,611

1,195

5,746

4,353

Professional fees

908

821

2,250

2,190

Advertising and public relations

635

622

2,111

1,992

Communications

203

201

835

739

Writedown of building

582

FHLB prepayment penalty

925

Other

1,332

1,252

5,538

4,465

Total noninterest expense

15,986

13,187

58,301

48,140

Income before income taxes

5,908

3,221

14,630

12,609

Income taxes

1,008

571

2,815

2,398

Net income

$

4,900

$

2,650

$

11,815

$

10,211

Earnings per common share:

Basic

$

0.52

$

0.29

$

1.24

$

1.12

Diluted

0.52

0.29

1.24

1.12

Dividends declared per share

0.10

0.08

0.40

0.30

Weighted average common shares outstanding:

Basic

9,498,783

9,494,859

9,498,783

9,129,705

Diluted

9,498,783

9,494,859

9,498,783

9,129,705

Colony Bankcorp, Inc.

Quarterly Comparison

2020

2019

(dollars in thousands)

Fourth
Quarter

Third
Quarter

Second
Quarter

First
Quarter

Fourth
Quarter

Assets

$

1,763,974

$

1,759,446

$

1,777,568

$

1,510,048

$

1,515,313

Loans, net

1,047,376

1,090,586

1,103,688

980,642

961,951

Deposits

1,445,027

1,416,401

1,421,758

1,293,076

1,293,742

Total equity

144,488

140,346

138,594

136,072

130,506

Net income

4,900

3,099

2,214

1,603

2,757

Earnings per basic share

$

0.52

$

0.33

$

0.23

$

0.17

$

0.29

Key Performance Ratios:

Return on average assets

1.08

%

0.70

%

0.52

%

0.42

%

0.73

%

Return on average total equity

13.73

%

8.80

%

6.47

%

4.79

%

8.47

%

Total equity to total assets

8.19

%

7.98

%

7.80

%

9.01

%

8.61

%

Tangible equity to tangible assets

7.21

%

7.00

%

6.82

%

7.83

%

7.42

%

Net interest margin

3.58

%

3.34

%

3.41

%

3.63

%

3.70

%

Colony Bankcorp, Inc.

Quarterly Loan Comparison

2020

2019

(dollars in thousands)

Fourth
Quarter

Third
Quarter

Second
Quarter

First
Quarter

Fourth
Quarter

Core

$

872,495

$

868,833

$

840,652

$

848,088

$

826,309

PPP

101,147

133,756

133,158

Purchased

85,861

118,732

148,374

120,726

132,414

Total

$

1,059,503

$

1,121,321

$

989,026

$

968,814

$

958,723

View source version on businesswire.com: https://www.businesswire.com/news/home/20210122005068/en/

Contacts

Tracie Youngblood
EVP & Chief Financial Officer
(229) 426-6000 (Ext 6003)