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Colony Bankcorp Reports Third Quarter 2020 Results

·19 mins read

Company Declares Quarterly Cash Dividend of $0.10 Per Share

Colony Bankcorp, Inc. (Nasdaq: CBAN) ("Colony" or the "Company") today reported financial results for the third quarter of 2020.

Third Quarter 2020 Financial Highlights:

  • Net income of $3.1 million, or $0.33 per diluted share

  • Operating net income of $3.7 million, or $0.39 adjusted earnings per diluted share (see Non-GAAP reconciliation)

  • Total assets of $1.8 billion

  • Total loans, including loans held for sale, of $1.2 billion

  • $1.1 million provision for loan losses

The Company also announced that on October 15, 2020, the Board of Directors declared a quarterly cash dividend of $0.10 per share, to be paid on its common stock on November 13, 2020, to shareholders of record as of the close of business on October 30, 2020.

Commenting on the announcement, Heath Fountain, President and Chief Executive Officer, said, "In this quarter of continued significant economic disruption due to the global pandemic, we delivered strong results, while prudently managing risk, as we continued to work diligently to support our customers, communities and employees. Our diluted earnings per share increased 21% over the same period last year and a strong 42% over the sequential quarter. Our results reflect the continued benefit of diversifying our business model, with income before income taxes increasing 28% over the prior-year period and 42% over the sequential quarter. Exceptional growth in mortgage banking income as well as revenue contribution from our Small Business Specialty Lending Division give all of us at Colony confidence in the future of our business. Additionally, our loan deferral balances related to the pandemic decreased 89% from $113.4 million in the second quarter 2020 to $12.6 million at the end of the third quarter, with the hotel sector representing $7.6 million.

"Growth in net interest income before provision for loan losses for the quarter of 9% year over year was offset by acquisition-related expenses related to core deposit intangible amortization, as well as the write-down of the Thomaston branch, the sale of which will close at the end of the fourth quarter. Despite strong growth in our interest earnings assets, our net interest margin decreased 28 basis points to 3.34% compared with the year-earlier period due to the addition of lower yielding PPP loans offset by a decrease in our borrowing costs during the quarter and lower interest on the level of deposits on our balance sheets. For the nine months ending September 30, 2020, our net interest margin was flat compared to the same period last year.

"Noninterest income saw strong growth, increasing 88% in the third quarter 2020 over the same period last year as a result of our continued strategic efforts to diversify our revenue streams. Mortgage fee income increased to $2.6 million in the current quarter compared to $1.3 million in the third quarter of 2019 due to the increasing number of our customers refinancing in the lower interest rate environment. Mortgage fee income now represents 35% of total noninterest income. We also saw increases in interchange fees as well as gains on sales of SBA loans and other securities. This increase in noninterest income was partially offset by increases in noninterest expense, such as increases in salaries and employee benefits due to the additional headcount, increases in occupancy, equipment, information technology expenses, and an FHLB prepayment penalty.

"Despite our strong asset quality, we recorded a higher provision for loan and losses in the third quarter of 2020 of $1.1 million, a substantial increase from $214,000 in the third quarter of 2019 due to increases in our loan portfolio and the current challenging economic operating environment. Our allowance for loan losses now represents 1.00% of total loans outstanding, an increase from 0.69% in the year-earlier quarter and 0.92% on a sequential-quarter basis. Total nonperforming assets in the third quarter of 2020 is 0.68% of total assets, compared to 0.70% in the year-earlier quarter and 0.75% on a sequential-quarter basis.

"As a final thought, I would like to express my sincere appreciation to every Colony team member for their efforts and contributions in serving our customers during this crisis. While some of our competitors are retrenching, due to our strategic efforts to diversify our business lines, we are adding talented bankers and loan officers in our growing markets. Our expenditures in technological enhancements to stay connected to our customers and our efforts to protect our credit metrics allow us to continue to drive our business forward. As the largest community bank outside of Atlanta, I am excited for our future and believe we will continue to grow our market share in Georgia while staying true to our heritage as a community bank," concluded Fountain.

Balance Sheet

  • Total assets were $1.8 billion at September 30, 2020, an increase of $244.1 million, or 16%, from $1.5 billion at December 31, 2019.

  • Increased loan production associated with the funding of approximately 1,700 PPP loans, which also generated much higher balances in our interest-bearing deposits with other banks as of September 30, 2020.

  • Total loans, including loans held for sale, were $1.16 billion, an increase of $178.6 million, or 18%, from $978.9 million at December 31, 2019.

  • Growth in loans was primarily a result of PPP loan production during the second quarter 2020, which totaled $137.8 million in gross PPP loans at September 30, 2020.

  • Total deposits were $1.42 billion, an increase of $122.7 million, or 9%, compared to total deposits of $1.29 billion at December 31, 2019.

  • Noninterest-bearing deposits increased $91.5 million, or 39%, compared to December 31, 2019, and is attributable to PPP-related deposits.

  • Colony’s participation in the PPP loan program resulted in an increase in borrowings, specifically through the Payroll Protection Program Liquidity Facility ("PPPLF"), which totaled $134.5 million at September 30, 2020.

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 9.36%, 14.29%, 15.29% and 12.16%, respectively.

Third Quarter Results of Operations

  • Net interest income before provision for loan losses increased $1.2 million on a sequential-quarter comparison.

  • Net interest margin was down seven basis points on a sequential-quarter basis and 28 basis points compared with the year-earlier quarter due to lower yielding PPP loans combined with an increase in lower yielding highly liquid assets.

  • Increase in noninterest income of $2.7 million, or 56%, on a sequential-quarter comparison, primarily due to mortgage loan productions from the refinancing in the lower interest rate environment and gain on sale of securities and Small Business Lending ("SBA") loans.

  • Increase in noninterest expenses of $2.9 million, or 22%, on a sequential-quarter comparison, driven by the write down of the Thomaston branch pending the sale later this year, FHLB prepayment penalties and salaries and compensation expense.

Asset Quality

  • Nonperforming assets totaled $11.8 million and $10.4 million at September 30, 2020 and 2019, respectively.

  • OREO and repossessed assets totaled $1.9 million at September 30, 2020, an increase of $1.1 million, or 140.8%, compared to the same quarter in 2019.

  • Net loan charge-offs were $375,000, or 0.13% of average loans, compared to $317,000 in the third quarter of 2019.

  • The loan loss reserve was $11.0 million, or 1.00% of total loans, on September 30, 2020, compared with $6.6 million, or 0.69% of total loans, at September 30, 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 third quarter of 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 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 33 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; the failure to close the sale of the Thomaston branch and 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 noninterest expense, 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)

Third
Quarter

Second
Quarter

First
Quarter

Fourth
Quarter

Third
Quarter

Operating net income reconciliation

Net income (GAAP)

$

3,099

$

2,214

$

1,603

$

2,756

$

2,518

Acquisition-related expenses

207

220

287

335

861

Thomaston building write down

582

Income tax benefit

(166

)

(46

)

(60

)

(70

)

(181

)

Operating net income

$

3,722

$

2,388

$

1,830

$

3,021

$

3,198

Weighted average diluted shares

9,498,783

9,498,783

9,498,783

9,494,859

9,494,771

Adjusted earnings per diluted share

$

0.39

$

0.25

$

0.19

$

0.32

$

0.34

Tangible book value per common share reconciliation

Book value per common share (GAAP)

$

14.78

$

14.59

$

14.35

$

13.74

$

13.65

Effect of goodwill and other intangibles

(1.96

)

(1.96

)

(2.06

)

(2.06

)

(2.04

)

Tangible book value per common share

$

12.82

$

12.63

$

12.29

$

11.68

$

11.61

Operating efficiency ratio calculation

Efficiency ratio (GAAP)

76.22

%

72.75

%

77.32

%

77.24

%

79.94

%

Acquisition-related expenses

(0.97

)

(1.20

)

(1.68

)

(1.92

)

(5.26

)

Thomaston building write down

(2.72

)%

%

%

%

%

Operating efficiency ratio

72.53

%

71.55

%

75.64

%

75.32

%

74.68

%

Colony Bankcorp, Inc.

Selected Financial Information

2020

2019

(dollars in thousands, except per share data)

Third
Quarter

Second
Quarter

First
Quarter

Fourth
Quarter

Third
Quarter

EARNINGS SUMMARY

Net interest income

$

13,848

$

13,541

$

12,705

$

12,992

$

12,656

Provision for loan losses

1,106

2,200

1,956

581

214

Non-interest income

7,554

4,843

4,432

4,412

4,030

Non-interest expense

16,313

13,375

13,250

13,496

13,358

Income taxes

884

595

328

571

597

Net income

3,099

2,214

1,603

2,756

2,517

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

9,494,859

9,494,771

Weighted average diluted shares

9,498,783

9,498,783

9,498,783

9,494,859

9,494,771

Earnings per basic share

$

0.33

$

0.23

$

0.17

$

0.29

$

0.27

Earnings per diluted share

0.33

0.23

0.17

0.29

0.27

Adjusted earnings per diluted share

0.39

0.25

0.19

0.32

0.34

Cash dividends declared per share

0.10

0.10

0.10

0.075

0.075

Common book value per share

14.78

14.59

14.35

13.74

13.65

Tangible common book value per share

12.82

12.63

12.29

11.68

11.61

Performance ratios:

Net interest margin (a)

3.34

%

3.41

%

3.63

%

3.72

%

3.62

%

Return on average assets

0.70

0.52

0.42

0.73

0.67

Return on average total equity

8.80

6.47

4.79

8.47

7.86

Efficiency ratio

76.22

72.75

77.32

77.24

79.94

Operating efficiency ratio (b)

72.53

71.55

75.64

75.32

74.68

ASSET QUALITY

Nonperforming loans (NPLs)

$

9,926

$

11,459

$

10,130

$

9,179

$

9,572

Other real estate owned

1,875

1,769

847

1,320

775

Repossessed assets

11

17

19

13

8

Total nonperforming assets (NPAs)

11,812

13,245

10,996

10,512

10,355

Classified loans

21,388

20,619

23,093

21,084

20,103

Criticized loans

72,076

52,200

46,600

51,182

42,765

Net loan charge-offs

375

295

435

317

403

Allowance for loan losses to total loans

1.00

%

0.92

%

0.85

%

0.71

%

0.69

%

Allowance for loan losses to total NPLs

111.02

89.79

64.81

74.77

68.95

Allowance for loan losses to total NPAs

93.29

77.68

60.83

65.29

63.73

Net charge-offs to average loans

0.13

0.12

0.18

0.13

0.17

NPLs to total loans

0.90

1.03

1.13

0.95

1.00

NPAs to total assets

0.67

0.75

0.91

0.69

0.70

NPAs to total loans and other real estate owned

1.07

1.19

1.39

1.08

1.08

AVERAGE BALANCES

Total assets

$

1,766,717

$

1,702,902

$

1,516,191

$

1,503,521

$

1,492,852

Loans, net

1,130,231

1,016,787

974,614

961,756

942,356

Deposits

1,417,724

1,384,739

1,293,784

1,278,987

1,272,561

Total stockholders’ equity

139,721

137,213

134,304

130,217

128,172

(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 September 30,

2020

2019

Average
Balances

Income/
Expense

Yields/
Rates

Average
Balances

Income/
Expense

Yields/
Rates

Assets

Interest-earning assets:

Loans, net of unearned income 1

$

1,140,487

$

13,809

4.80

%

$

956,150

$

13,699

5.68

%

Investment securities, taxable

339,094

1,644

1.92

%

391,117

2,328

2.36

%

Investment securities, tax-exempt 2

26,916

130

1.92

%

1,615

13

3.11

%

Deposits in banks and short term investments

151,508

52

0.14

%

43,951

206

1.86

%

Total interest-earning assets

1,658,005

15,635

3.74

%

1,392,833

16,246

4.63

%

Noninterest-earning assets

108,712

99,613

Total assets

$

1,766,717

$

1,492,446

Liabilities and stockholders' equity

Interest-bearing liabilities:

Interest-earning demand and savings

$

793,831

$

324

0.16

%

$

672,633

$

1,260

0.74

%

Other time

295,559

820

1.10

%

379,873

1,555

1.62

%

Total interest-bearing deposits

1,089,390

1,144

0.42

%

1,052,506

2,815

1.06

%

Federal Home Loan Bank advances

28,587

159

2.20

%

48,565

269

2.20

%

Paycheck Protection Program Liquidity Facility

134,500

118

0.35

%

%

Other borrowings

38,289

273

2.83

%

39,498

458

4.60

%

Total other interest-bearing liabilities

201,376

550

%

88,063

727

3.27

%

Total interest-bearing liabilities

1,290,766

1,694

0.52

%

1,140,569

3,542

1.23

%

Noninterest-bearing liabilities:

Demand deposits

$

328,334

$

219,718

Other liabilities

7,896

3,987

Stockholders' equity

139,721

128,172

Total noninterest-bearing liabilities and stockholders' equity

475,951

351,877

Total liabilities and stockholders' equity

$

1,766,717

$

1,492,446

Interest rate spread

3.22

%

3.40

%

Net interest income

$

13,941

$

12,704

Net interest margin

3.34

%

3.62

%

_________________________

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 $66,000 and $46,000.

2Taxable-equivalent adjustments totaling $27,000 and $3,,000 three months period ended September 30, 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.

Nine Months Ended September 30,

2020

2019

Average
Balances

Income/
Expense

Yields/
Rates

Average
Balances

Income/
Expense

Yields/
Rates

Assets

Interest-earning assets:

Loans, net of unearned income 3

$

1,071,908

$

40,923

5.09

%

$

868,579

$

36,566

5.61

%

Investment securities, taxable

336,446

5,391

2.13

%

381,200

7,040

2.46

%

Investment securities, tax-exempt 4

12,319

184

1.99

%

1,939

48

3.28

%

Deposits in banks and short term investments

132,496

384

0.39

%

53,589

810

2.01

%

Total interest-earning assets

1,553,169

46,882

4.02

%

1,305,307

44,464

4.54

%

Noninterest-earning assets

107,015

78,202

Total assets

$

1,660,184

$

1,383,509

Liabilities and stockholders' equity

Interest-bearing liabilities:

Interest-earning demand and savings

$

762,906

$

1,667

0.29

%

$

620,731

$

3,234

0.69

%

Other time

313,834

3,099

1.32

%

362,651

4,335

1.59

%

Total interest-bearing deposits

1,076,740

4,766

0.59

%

983,382

7,569

1.03

%

Federal Home Loan Bank advances

36,858

626

2.26

%

43,868

775

2.35

%

Paycheck Protection Program Liquidity Facility

78,081

205

0.35

%

%

Other borrowings

38,591

962

3.32

%

32,515

1,127

4.62

%

Total other interest-bearing liabilities

153,530

1,793

1.56

%

76,383

1,902

3.32

%

Total interest-bearing liabilities

1,230,270

6,559

0.71

%

1,059,765

9,471

1.19

%

Noninterest-bearing liabilities:

Demand deposits

287,038

$

207,328

Other liabilities

6,136

3,712

Stockholders' equity

136,740

112,704

Total noninterest-bearing liabilities and stockholders' equity

429,914

323,744

Total liabilities and stockholders' equity

$

1,660,184

$

1,383,509

Interest rate spread

3.34

%

3.28

%

Net interest income

$

40,323

$

34,993

Net interest margin

3.51

%

3.51

%

_________________________

3 The 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 $190,000 and $129,000.

4 Taxable-equivalent adjustments totaling $39,000 and $10,000 for nine months period ended September 30, 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 September 30,

Nine months ended September 30,

(dollars in thousands)

2020

2019

2020

2019

Banking Division

Net interest income

$

12,920

$

12,567

$

38,306

$

34,730

Provision for loan losses

1,106

214

5,262

524

Noninterest income

4,139

2,794

9,960

8,485

Noninterest expenses

13,242

11,638

36,712

32,799

Income taxes

785

723

1,472

1,955

Segment income

$

1,926

$

2,786

$

4,820

$

7,937

Total segment assets

$

1,563,131

$

1,467,324

$

1,563,131

$

1,467,324

Mortgage Banking Division

Net interest income

$

188

$

81

$

305

$

100

Provision for loan losses

Noninterest income

2,612

1,245

5,686

1,888

Noninterest expenses

2,410

1,191

5,302

2,037

Income taxes

82

(15

)

137

(10

)

Segment income (loss)

$

308

$

150

$

552

$

(39

)

Total segment assets

$

50,265

$

10,209

$

50,265

$

10,209

Small Business Specialty Lending Division

Net interest income

$

740

$

$

1,483

$

Provision for loan losses

Noninterest income

803

1,183

Noninterest expenses

661

924

Income taxes

17

198

Segment income

$

865

$

$

1,544

$

Total segment assets

$

146,050

$

$

146,050

$

Total Consolidated

Net interest income

$

13,848

$

12,648

$

40,094

$

34,830

Provision for loan losses

1,106

214

5,262

524

Noninterest income

7,554

4,039

16,829

10,373

Noninterest expenses

16,313

12,829

42,938

34,836

Income taxes

884

708

1,807

1,945

Segment income

$

3,099

$

2,936

$

6,916

$

7,898

Total segment assets

$

1,759,446

$

1,477,533

$

1,759,446

$

1,477,533

Colony Bankcorp, Inc.

Consolidated Balance Sheets

September 30, 2020

December 31, 2019

(dollars in thousands)

(unaudited)

(audited)

ASSETS

Cash and due from banks

$

14,226

$

15,570

Interest-bearing deposits in banks and federal funds sold

134,613

88,522

Cash and cash equivalents

148,839

104,092

Investment securities available for sale, at fair value

363,601

347,332

Other investments, at cost

3,296

4,288

Loans held for sale

55,864

10,076

Loans, net of unearned income

1,101,606

968,814

Allowance for loan losses

(11,020

)

(6,863

)

Loans, net

1,090,586

961,951

Premises and equipment

31,961

32,482

Other real estate

1,875

1,320

Goodwill and other intangible assets

18,618

19,533

Bank owned life insurance

31,339

21,629

Other assets

13,467

12,610

Total assets

$

1,759,446

$

1,515,313

LIABILITIES AND STOCKHOLDERS’ EQUITY

Liabilities:

Deposits:

Noninterest-bearing

$

324,135

$

232,635

Interest-bearing

1,092,266

1,061,107

Total deposits

1,416,401

1,293,742

Federal Home Loan Bank advances

22,500

47,000

Paycheck Protection Program Liquidity Facility

134,500

Other borrowed money

38,042

38,792

Accrued expenses and other liabilities

7,657

5,273

Total liabilities

1,619,100

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

43,207

43,667

Retained earnings

81,044

76,978

Accumulated other comprehensive income, net of tax

6,596

362

Total stockholders’ equity

140,346

130,506

Total liabilities and stockholders’ equity

$

1,759,446

$

1,515,313

Colony Bankcorp, Inc.

Consolidated Statements of Income (unaudited)

Three months ended September 30,

Nine months ended September 30,

2020

2019

2020

2019

(dollars in thousands, except per share data)

Interest income:

Loans, including fees

$

13,743

13,654

$

40,733

36,437

Investment securities, including tax exempt of $103, $10, $145, and $38, respectively

1,747

2,338

5,536

7,078

Deposits in banks and short term investments

52

206

384

810

Total interest income

15,542

16,198

46,653

44,325

Interest expense:

Deposits

1,144

2,815

4,766

7,569

Federal Home Loan Bank advances

159

269

626

775

Paycheck Protection Program Liquidity Facility

118

205

Other borrowings

273

458

962

1,127

Total interest expense

1,694

3,542

6,559

9,471

Net interest income

13,848

12,656

40,094

34,854

Provision for loan losses

1,106

214

5,262

524

Net interest income after provision for loan losses

12,742

12,442

34,832

34,330

Noninterest income:

Service charges on deposits

1,316

1,546

3,906

3,997

Mortgage fee income

2,616

1,255

5,706

1,942

Gain on sale of SBA loans

748

1,004

Gain on sale of securities

716

34

1,009

99

Interchange fees

1,342

1,001

3,624

2,755

BOLI Income

237

124

548

405

Insurance commissions and fees

254

66

679

96

Other

325

4

353

1,056

Total noninterest income

7,554

4,030

16,829

10,350

Noninterest expense:

Salaries and employee benefits

9,104

7,186

24,331

18,848

Occupancy and equipment

1,338

1,290

3,972

3,459

Acquisition related

207

649

714

2,610

Information technology expenses

1,440

1,196

4,135

3,158

Insurance expenses

483

241

1,596

450

Professional fees

481

558

1,343

1,369

Advertising and public relations

459

677

1,478

1,370

Communications

212

196

631

538

Writedown of building

582

582

FHLB prepayment penalty

925

925

Other

1,082

1,365

3,231

3,596

Total noninterest expense

16,313

13,358

42,938

35,398

Income before income taxes

3,983

3,114

8,723

9,282

Income taxes

884

597

1,807

1,827

Net income

$

3,099

$

2,517

$

6,916

$

7,455

Earnings per common share:

Basic

$

0.33

$

0.27

$

0.73

$

0.83

Diluted

0.33

0.27

0.73

0.83

Weighted average common shares outstanding:

Basic

9,498,783

9,494,771

9,498,783

9,008,196

Diluted

9,498,783

9,491,771

9,498,783

9,008,196

Colony Bankcorp, Inc.

Quarterly Comparison

2020

2019

(dollars in thousands)

Third
Quarter

Second
Quarter

First
Quarter

Fourth
Quarter

Third
Quarter

Assets

$

1,759,446

$

1,777,568

$

1,510,048

$

1,515,313

$

1,477,682

Loans, net

1,090,586

1,103,688

980,642

961,951

951,559

Deposits

1,416,401

1,421,758

1,293,076

1,293,742

1,251,273

Total equity

140,346

138,594

136,072

130,506

129,651

Net income

3,099

2,214

1,603

2,757

2,518

Earnings per basic share

0.33

0.23

0.17

0.29

0.27

Key Performance Ratios:

Return on average assets

0.70

%

0.52

%

0.42

%

0.73%

0.67%

Return on average total equity

8.80

%

6.47

%

4.79

%

8.47%

7.86%

Total equity to total assets

7.98

%

7.80

%

9.01

%

8.61%

8.77%

Tangible equity to tangible assets

7.00

%

6.82

%

7.83

%

7.42%

7.56%

Net interest margin

3.34

%

3.41

%

3.63

%

3.72%

3.64%

Colony Bankcorp, Inc.

Quarterly Loan Comparison

2020

2019

(dollars in thousands)

Third
Quarter

Second
Quarter

First
Quarter

Fourth
Quarter

Third
Quarter

Core

$

868,833

$

862,087

$

840,652

$

848,088

$

826,309

PPP

133,756

133,158

Purchased

99,017

118,732

148,374

120,726

132,414

Total

$

1,101,606

$

1,113,977

$

989,026

$

968,814

$

958,723

View source version on businesswire.com: https://www.businesswire.com/news/home/20201015006033/en/

Contacts

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