CBAN Colony Bankcorp Inc

Declares Quarterly Cash Dividend of $0.1125 Per Share

Colony Bankcorp, Inc. (Nasdaq: CBAN) (“Colony” or the “Company”) today reported financial results for the second quarter of 2024. Financial highlights are shown below.

Financial Highlights:

• Net income increased to $5.5 million, or $0.31 per diluted share, for the second quarter of 2024, compared to $5.3 million, or $0.30 per diluted share, for the first quarter of 2024, and $5.3 million, or $0.30 per diluted share, for the second quarter of 2023.
• Operating net income increased to $6.0 million, or $0.34 of adjusted earnings per diluted share, for the second quarter of 2024, compared to $5.8 million, or $0.33 of adjusted earnings per diluted share, for the first quarter of 2024, and $5.7 million, or $0.33 of adjusted earnings per diluted share, for the second quarter of 2023. (See Reconciliation of Non-GAAP Measures).
• Provision for credit losses of $650,000 was recorded in second quarter of 2024 compared to $1.0 million in first quarter of 2024, and $200,000 in second quarter of 2023.
• Total loans were $1.87 billion at June 30, 2024, an increase of $6.6 million, or 0.35%, from the prior quarter.
• Total deposits were $2.46 billion and $2.52 billion at June 30, 2024 and March 31, 2024, respectively, a decrease of $62.5 million.
• Mortgage production was $65.1 million, and mortgage sales totaled $45.2 million in the second quarter of 2024 compared to $50.1 million and $36.6 million, respectively, for the first quarter of 2024.
• Small Business Specialty Lending (“SBSL”) closed $25.8 million in Small Business Administration (“SBA”) loans and sold $27.0 million in SBA loans in the second quarter of 2024 compared to $35.6 million and $24.0 million, respectively, for the first quarter of 2024.

The Company also announced that on July 24, 2024, the Board of Directors declared a quarterly cash dividend of $0.1125 per share, to be paid on its common stock on August 21, 2024, to shareholders of record as of the close of business on August 7, 2024. The Company had 17,538,611 shares of its common stock outstanding as of July 23, 2024.

“We are excited to announce our improved operating results in the second quarter as we continue to see the impacts of our team’s progress toward our strategic goals. Our ongoing efforts of improving noninterest income by diversifying revenue streams through our complementary lines of business, creating efficiency alongside expense discipline, and enhancing the banking experience to better serve our customers have allowed us to continue down the path of strengthening our financial performance,” said Heath Fountain, Chief Executive Officer.

“Our credit quality remains solid, with both classified and criticized loans decreasing from the prior quarter and total nonperforming loans declining from the end of last year. Furthermore, our past dues at the end of the quarter were at remarkably low levels which we believe demonstrates the strength of our borrowers and quality of our credit underwriting.”

“Historically, we’ve seen some seasonality in deposits during the second quarter as our customers manage their cash flow needs and we saw some of that seasonality this quarter. However, we remain confident in the underlying strength of our deposit base and anticipate a return to growth in the coming quarters. While we did experience a decline in our net interest margin, the decrease was less pronounced than expected. The resilience in our margin performance highlights the effectiveness of our strategic initiatives aimed at optimizing our balance sheet and managing interest rate risks.”

"We are proud of what we have achieved this quarter and look forward to ongoing improvement as we strive for even greater success."

Balance Sheet

• Total assets were $3.01 billion at June 30, 2024, a decrease of $7.6 million from March 31, 2024.
• Total loans, including loans held for sale, were at $1.91 billion at June 30, 2024, an increase of $15.6 million from the quarter ended March 31, 2024.
• Total deposits were $2.46 billion and $2.52 billion at June 30, 2024 and March 31, 2024, respectively, a decrease of $62.5 million. Savings and money market deposits increased $20.7 million which was offset by decreases in interest bearing demand deposits of $15.2 million and time deposits of $29.2 million from March 31, 2024 to June 30, 2024.
• Total borrowings at June 30, 2024 totaled $268.0 million, an increase of $50.0 million or, 22.9%, compared to March 31, 2024, related to increases in Federal Home Loan Bank advances.

Capital

• Colony continues to maintain a strong capital position, with ratios that exceed regulatory minimums required to be considered as “well-capitalized.”
• Under the Company’s approved stock repurchase program, a total of 20,000 shares were repurchased during the quarter at an average price of $11.90 per share and a total value of $237,909 thousand.
• Preliminary tier one leverage ratio, tier one capital ratio, total risk-based capital ratio and common equity tier one capital ratio were 9.44%, 13.39%, 16.17%, and 12.25%, respectively, at June 30, 2024.

Second Quarter and June 30, 2024 Year to Date Results of Operations

• Net interest income, on a tax-equivalent basis, totaled $18.6 million for the second quarter ended June 30, 2024 compared to $19.3 million for the same period in 2023. Net interest income, on a tax-equivalent basis, for the six months ended June 30, 2024 totaled $37.4 million, compared to $40.1 million for the six months ended June 30, 2023. For both periods, increases can be seen in income on interest earning assets which is more than offset by increases in expenses on interest bearing liabilities due to the significant rise in interest rates period over period along with increases in FHLB advances. Income on interest earning assets increased $2.6 million, to $33.5 million for the second quarter of 2024 compared to the respective period in 2023. Expense on interest bearing liabilities increased $3.3 million, to $14.9 million for the second quarter of 2024 compared to the respective period in 2023. Income on interest earning assets increased $7.6 million to $67.0 million for the six month period ended June 30, 2024 compared to the respective period in 2023. Expense on interest bearing liabilities increased $10.2 million, to $29.6 million for the six month period ended June 30, 2024 compared to the respective period in 2023.
• Net interest margin for the second quarter of 2024 was 2.68% compared to 2.77% for the second quarter of 2023. Net interest margin was 2.69% for the six months ended June 30, 2024 compared to 2.92% for the six months ended June 30, 2023. The decrease for both periods is the result of rate increases in interest bearing liabilities outpacing the rate increases in interest earning assets.
• Noninterest income totaled $9.5 million for the second quarter ended June 30, 2024, an increase of $545,000, or 6.09%, compared to the same period in 2023. Noninterest income totaled $19.0 million for the six months ended June 30, 2024, an increase of $2.4 million, or 14.28%, compared to the same period in 2023. These increases were primarily related to increases in service charges on deposit accounts, gains on sales of SBA loans and income on wealth advisory services which is included in other noninterest income which were partially offset by decreases in mortgage fee income, interchange fee income and losses on the sales of investment securities.
• Noninterest expense totaled $20.3 million for the second quarter ended June 30, 2024, compared to $21.4 million for the same period in 2023. Noninterest expense totaled $40.7 million for the six months ended June 30, 2024, compared to $42.6 million for the same period in 2023. These decreases were a result of overall decreases in salaries and employee benefits primarily related to the expense initiative in 2023 which lowered total number of employees period over period.

Asset Quality

• Nonperforming assets totaled $7.3 million and $7.0 million at June 30, 2024 and March 31, 2024, respectively, an increase of $312,000.
• Other real estate owned and repossessed assets totaled $595,000 at June 30, 2024 and $562,000 at March 31, 2024.
• Net loans charged-off were $667,000, or 0.14% of average loans for the second quarter of 2024, compared to $664,000 or 0.14% for the first quarter of 2024.
• The credit loss reserve was $18.8 million, or 1.01% of total loans, at June 30, 2024, compared to $18.7 million, or 1.00% of total loans at March 31, 2024.

Earnings call information

The Company will host an earnings conference call at 9:00 a.m. ET on Thursday, July 25, 2024, to discuss the recent results and answer appropriate questions. The conference call can be accessed by dialing 800-267-6316 and using the Conference ID: COLONY2Q. A replay of the call will be available until Thursday, August 1, 2024. To listen to the replay, dial 800-938-2796.

About Colony Bankcorp

Colony Bankcorp, Inc. is the bank holding company for Colony Bank. Founded in Fitzgerald, Georgia in 1975, Colony operates locations throughout Georgia and has expanded to serve Birmingham, Alabama, as well as Tallahassee and the Florida Panhandle. At Colony Bank, we offer a range of banking solutions for personal and business customers. In addition to traditional banking services, Colony provides specialized solutions including mortgage, government guaranteed lending, consumer insurance, wealth management, and merchant services. 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 social media.

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; and (v) statements of assumptions underlying such statements. Words such as “may”, “will”, “anticipate”, “assume”, “should”, “support”, “indicate”, “would”, “believe”, “contemplate”, “expect”, “estimate”, “continue”, “further”, “plan”, “point to”, “project”, “could”, “intend”, “target” 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 current and economic conditions, particularly those affecting the financial services industry, including the effects of declines in the real estate market, high unemployment rates, inflationary pressures, elevated interest rates (including the impact of prolonged elevated interest rates on our financial projections and models) and slowdowns in economic growth, as well as the financial stress on borrowers as a result of the foregoing; the risk of potential reductions in benchmark interest rates and the resulting impacts on net interest income; potential impacts of adverse developments in the banking industry highlighted by high-profile bank failures, including impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto; risks arising from media coverage of the banking industry; risks arising from perceived instability in the banking sector; the risks of changes in interest rates and their effects on the level, cost, and composition of, and competition for, deposits, loan demand and timing of payments, the values of loan collateral, securities, and interest sensitive assets and liabilities; the ability to attract new or retain existing deposits, to retain or grow loans or additional interest and fee income, or to control noninterest expense; the effect of pricing pressures on the Company’s net interest margin; the failure of assumptions underlying the establishment of reserves for possible credit losses, fair value for loans and other real estate owned; changes in real estate values; the Company’s ability to implement its various strategic and growth initiatives; increased competition in the financial services industry, particularly from regional and national institutions, as well as from fintech companies; economic conditions, either nationally or locally, in areas in which the Company conducts operations being less favorable than expected; changes in the prices, values and sales volumes of residential and commercial real estate; developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance; legislation or regulatory changes which adversely affect the ability of the consolidated Company to conduct business combinations or new operations; 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; significant turbulence or a disruption in the capital or financial markets and the effect of a fall in the stock market prices on our investment securities; the effects of war or other conflicts including the impacts related to or resulting from Russia’s military action in Ukraine or the conflict in Israel and surrounding areas; general risks related to the Company’s merger and acquisition activity, including risks associated with the Company’s pursuit of future acquisitions; the impact of generative artificial intelligence; fraud or misconduct by internal or external actors, and system failures, cybersecurity threats or security breaches and the cost of defending against them; a deterioration of the credit rating for U.S. long-term sovereign debt, actions that the U.S. government may take to avoid exceeding the debt ceiling, and uncertainties surrounding debt ceiling and the federal budget; a potential U.S. federal government shutdown and the resulting impacts; and general competitive, economic, political 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, 2023, 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 noninterest income, operating noninterest expense, operating net income, adjusted earnings per diluted share, operating return on average assets, operating return on average equity, tangible book value per common share, tangible equity to tangible assets, operating efficiency ratio, operating net noninterest expense to average assets and pre-provision net revenue 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 noninterest income, noninterest expense, net income, diluted earnings per share, return on average assets, return on average equity, book value per common share, total equity to total assets, efficiency ratio, net noninterest expense to average assets and net interest income before provision for credit losses, respectively. Operating noninterest income excludes gain on sale of bank premises and loss on sales of securities. Operating noninterest expense excludes acquisition-related expenses and severance costs. Operating net income, operating return on average assets, operating return on average equity and operating efficiency ratio all exclude acquisition-related expenses, severance costs, gain on sale of bank premises and loss on sales of securities from net income, return on average assets, return on average equity and efficiency ratio, respectively. Operating net noninterest expense to average assets ratio excludes from net noninterest expense, severance costs, acquisition-related expenses, gain on sale of bank premises and loss on sales of securities. Acquisition-related expenses includes fees associated with acquisitions and vendor contract buyouts. Severance costs includes costs associated with termination and retirement of employees. Adjusted earnings per diluted share includes the adjustments to operating net income. Tangible book value per common share and tangible equity to tangible assets exclude goodwill and other intangibles from book value per common share and total equity to total assets, respectively. Pre-provision net revenue is calculated by adding noninterest income to net interest income before provision for credit losses, and subtracting noninterest expense.

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 noninterest income, operating noninterest expense, operating net income, adjusted earnings per diluted share, operating return on average assets, operating return on average equity, tangible book value per common share, tangible equity to tangible assets, operating efficiency ratio, operating net noninterest expense to average assets and pre-provision net revenue and the reconciliation of these measures to noninterest income, noninterest expense, net income, diluted earnings per share, return on average assets, return on average equity, book value per common share, total equity to total assets, efficiency ratio, net noninterest expense to average assets and net interest income before provision for credit losses are set forth in the table below.

Colony Bankcorp, Inc.

 

 

 

 

Reconciliation of Non-GAAP Measures

 

 

 

 

 

 

2024

 

2023

(dollars in thousands, except per share data)

 

Second

Quarter

 

First

Quarter

 

Fourth

Quarter

 

Third

Quarter

 

Second

Quarter

Operating noninterest income reconciliation

 

 

 

 

 

 

 

 

 

 

Noninterest income (GAAP)

 

$

9,497

 

 

$

9,487

 

 

$

9,305

 

 

$

9,718

 

 

$

8,952

 

Gain on sale of bank premises

 

 

—

 

 

 

—

 

 

 

(236

)

 

 

—

 

 

 

(125

)

Writedown of bank premises

 

 

197

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Loss on sales of securities

 

 

425

 

 

 

555

 

 

 

—

 

 

 

—

 

 

 

—

 

Operating noninterest income

 

$

10,119

 

 

$

10,042

 

 

$

9,069

 

 

$

9,718

 

 

$

8,827

 

 

 

 

 

 

 

 

 

 

 

 

Operating noninterest expense reconciliation

 

 

 

 

 

 

 

 

 

 

Noninterest expense (GAAP)

 

$

20,330

 

 

$

20,397

 

 

$

19,587

 

 

$

20,881

 

 

$

21,432

 

Severance costs

 

 

—

 

 

 

(23

)

 

 

—

 

 

 

(220

)

 

 

(635

)

Operating noninterest expense

 

$

20,330

 

 

$

20,374

 

 

$

19,587

 

 

$

20,661

 

 

$

20,797

 

 

 

 

 

 

 

 

 

 

 

 

Operating net income reconciliation

 

 

 

 

 

 

 

 

 

 

Net income (GAAP)

 

$

5,474

 

 

$

5,333

 

 

$

5,598

 

 

$

5,804

 

 

$

5,302

 

Severance costs

 

 

—

 

 

 

23

 

 

 

—

 

 

 

220

 

 

 

635

 

Gain on sale of bank premises

 

 

—

 

 

 

—

 

 

 

(236

)

 

 

—

 

 

 

(125

)

Writedown of bank premises

 

 

197

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Loss on sales of securities

 

 

425

 

 

 

555

 

 

 

—

 

 

 

—

 

 

 

—

 

Income tax benefit

 

 

(129

)

 

 

(121

)

 

 

52

 

 

 

(48

)

 

 

(93

)

Operating net income

 

$

5,967

 

 

$

5,790

 

 

$

5,414

 

 

$

5,976

 

 

$

5,719

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average diluted shares

 

 

17,551,007

 

 

 

17,560,210

 

 

 

17,567,839

 

 

 

17,569,493

 

 

 

17,580,557

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted earnings per diluted share

 

$

0.34

 

 

$

0.33

 

 

$

0.31

 

 

$

0.34

 

 

$

0.33

 

 

 

 

 

 

 

 

 

 

 

 

Operating return on average assets reconciliation

 

 

 

 

 

 

 

 

 

 

Return on average assets (GAAP)

 

 

0.73

%

 

 

0.71

%

 

 

0.73

%

 

 

0.75

%

 

 

0.70

%

Severance costs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

0.03

 

 

 

0.08

 

Gain on sale of bank premises

 

 

—

 

 

 

—

 

 

 

(0.03

)

 

 

—

 

 

 

(0.02

)

Writedown of bank premises

 

 

0.03

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Loss on sales of securities

 

 

0.06

 

 

 

0.07

 

 

 

—

 

 

 

—

 

 

 

—

 

Tax effect of adjustment items

 

 

(0.02

)

 

 

(0.02

)

 

 

0.01

 

 

 

(0.01

)

 

 

(0.01

)

Operating return on average assets

 

 

0.80

%

 

 

0.76

%

 

 

0.71

%

 

 

0.77

%

 

 

0.75

%

 

 

 

 

 

 

 

 

 

 

 

Operating return on average equity reconciliation

 

 

 

 

 

 

 

 

 

 

Return on average equity (GAAP)

 

 

8.46

%

 

 

8.38

%

 

 

9.20

%

 

 

9.61

%

 

 

8.88

%

Severance costs

 

 

—

 

 

 

0.04

 

 

 

—

 

 

 

0.36

 

 

 

1.06

 

Gain on sale of bank premises

 

 

—

 

 

 

—

 

 

 

(0.39

)

 

 

—

 

 

 

(0.21

)

Writedown of bank premises

 

 

0.30

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Loss on sales of securities

 

 

0.66

 

 

 

0.87

 

 

 

—

 

 

 

—

 

 

 

—

 

Tax effect of adjustment items

 

 

(0.20

)

 

 

(0.19

)

 

 

0.09

 

 

 

(0.08

)

 

 

(0.16

)

Operating return on average equity

 

 

9.22

%

 

 

9.10

%

 

 

8.90

%

 

 

9.89

%

 

 

9.57

%

 

 

 

 

 

 

 

 

 

 

 

Tangible book value per common share reconciliation

 

 

 

 

 

 

 

 

Book value per common share (GAAP)

 

$

15.09

 

 

$

14.80

 

 

$

14.51

 

 

$

13.59

 

 

$

13.65

 

Effect of goodwill and other intangibles

 

 

(2.99

)

 

 

(3.01

)

 

 

(3.02

)

 

 

(3.04

)

 

 

(3.07

)

Tangible book value per common share

 

$

12.10

 

 

$

11.79

 

 

$

11.49

 

 

$

10.55

 

 

$

10.58

 

 

 

 

 

 

 

 

 

 

 

 

Tangible equity to tangible assets reconciliation

 

 

 

 

 

 

 

 

 

 

Equity to assets (GAAP)

 

 

8.80

%

 

 

8.62

%

 

 

8.35

%

 

 

7.72

%

 

 

7.72

%

Effect of goodwill and other intangibles

 

 

(1.62

)

 

 

(1.63

)

 

 

(1.62

)

 

 

(1.63

)

 

 

(1.63

)

Tangible equity to tangible assets

 

 

7.18

%

 

 

6.99

%

 

 

6.73

%

 

 

6.09

%

 

 

6.09

%

 

 

 

 

 

 

 

 

 

 

 

Operating efficiency ratio calculation

 

 

 

 

 

 

 

 

 

 

Efficiency ratio (GAAP)

 

 

72.85

%

 

 

72.48

%

 

 

69.51

%

 

 

71.17

%

 

 

76.18

%

Severance costs

 

 

—

 

 

 

(0.08

)

 

 

—

 

 

 

(0.75

)

 

 

(2.26

)

Gain on sale of bank premises

 

 

—

 

 

 

—

 

 

 

0.84

 

 

 

—

 

 

 

0.44

 

Writedown of bank premises

 

 

(0.71

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Loss on sales of securities

 

 

(1.52

)

 

 

(1.97

)

 

 

—

 

 

 

—

 

 

 

—

 

Operating efficiency ratio

 

 

70.62

%

 

 

70.43

%

 

 

70.35

%

 

 

70.42

%

 

 

74.36

%

 

 

 

 

 

 

 

 

 

 

 

Operating net noninterest expense(1) to average assets calculation

 

 

 

 

 

 

 

 

Net noninterest expense to average assets

 

 

1.45

%

 

 

1.45

%

 

 

1.35

%

 

 

1.45

%

 

 

1.65

%

Severance costs

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(0.03

)

 

 

(0.09

)

Acquisition-related expenses

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Gain on sale of bank premises

 

 

—

 

 

 

—

 

 

 

0.03

 

 

 

—

 

 

 

0.02

 

Writedown of bank premises

 

 

(0.03

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Loss on sales of securities

 

 

(0.06

)

 

 

(0.07

)

 

 

—

 

 

 

—

 

 

 

—

 

Operating net noninterest expense to average assets

 

 

1.36

%

 

 

1.38

%

 

 

1.38

%

 

 

1.42

%

 

 

1.58

%

 

 

 

 

 

 

 

 

 

 

 

Pre-provision net revenue

 

 

 

 

 

 

 

 

 

 

Net interest income before provision for credit losses

 

$

18,409

 

 

$

18,654

 

 

$

18,874

 

 

$

19,621

 

 

$

19,181

 

Noninterest income

 

 

9,497

 

 

 

9,487

 

 

 

9,305

 

 

 

9,718

 

 

 

8,952

 

Total income

 

 

27,906

 

 

 

28,141

 

 

 

28,179

 

 

 

29,339

 

 

 

28,133

 

Noninterest expense

 

 

20,330

 

 

 

20,397

 

 

 

19,587

 

 

 

20,881

 

 

 

21,432

 

Pre-provision net revenue

 

$

7,576

 

 

$

7,744

 

 

$

8,592

 

 

$

8,458

 

 

$

6,701

 

(1) Net noninterest expense is defined as noninterest expense less noninterest income.

Colony Bankcorp, Inc.

Selected Financial Information

 

 

2024

 

2023

(dollars in thousands, except per share data)

 

Second

Quarter

 

First

Quarter

 

Fourth

Quarter

 

Third

Quarter

 

Second

Quarter

EARNINGS SUMMARY

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

18,409

 

 

$

18,654

 

 

$

18,874

 

 

$

19,621

 

 

$

19,181

 

Provision for credit losses

 

 

650

 

 

 

1,000

 

 

 

1,500

 

 

 

1,000

 

 

 

200

 

Noninterest income

 

 

9,497

 

 

 

9,487

 

 

 

9,305

 

 

 

9,718

 

 

 

8,952

 

Noninterest expense

 

 

20,330

 

 

 

20,397

 

 

 

19,587

 

 

 

20,881

 

 

 

21,432

 

Income taxes

 

 

1,452

 

 

 

1,411

 

 

 

1,494

 

 

 

1,654

 

 

 

1,199

 

Net income

 

$

5,474

 

 

$

5,333

 

 

$

5,598

 

 

$

5,804

 

 

$

5,302

 

PERFORMANCE MEASURES

 

 

 

 

 

 

 

 

 

 

Per common share:

 

 

 

 

 

 

 

 

 

 

Common shares outstanding

 

 

17,538,611

 

 

 

17,558,611

 

 

 

17,564,182

 

 

 

17,567,983

 

 

 

17,541,661

 

Weighted average basic shares

 

 

17,551,007

 

 

 

17,560,210

 

 

 

17,567,839

 

 

 

17,569,493

 

 

 

17,580,557

 

Weighted average diluted shares

 

 

17,551,007

 

 

 

17,560,210

 

 

 

17,567,839

 

 

 

17,569,493

 

 

 

17,580,557

 

Earnings per basic share

 

$

0.31

 

 

$

0.30

 

 

$

0.32

 

 

$

0.33

 

 

$

0.30

 

Earnings per diluted share

 

 

0.31

 

 

 

0.30

 

 

 

0.32

 

 

 

0.33

 

 

 

0.30

 

Adjusted earnings per diluted share(b)

 

 

0.34

 

 

 

0.33

 

 

 

0.31

 

 

 

0.34

 

 

 

0.33

 

Cash dividends declared per share

 

 

0.1125

 

 

 

0.1125

 

 

 

0.1100

 

 

 

0.1100

 

 

 

0.1100

 

Common book value per share

 

 

15.09

 

 

 

14.80

 

 

 

14.51

 

 

 

13.59

 

 

 

13.65

 

Tangible book value per common share(b)

 

 

12.10

 

 

 

11.79

 

 

 

11.49

 

 

 

10.55

 

 

 

10.58

 

Pre-provision net revenue(b)

 

$

7,576

 

 

$

7,744

 

 

$

8,592

 

 

$

8,458

 

 

$

6,701

 

Performance ratios:

 

 

 

 

 

 

 

 

 

 

Net interest margin (a)

 

 

2.68

%

 

 

2.69

%

 

 

2.70

%

 

 

2.78

%

 

 

2.77

%

Return on average assets

 

 

0.73

 

 

 

0.71

 

 

 

0.73

 

 

 

0.75

 

 

 

0.70

 

Operating return on average assets (b)

 

 

0.80

 

 

 

0.76

 

 

 

0.71

 

 

 

0.77

 

 

 

0.75

 

Return on average total equity

 

 

8.46

 

 

 

8.38

 

 

 

9.20

 

 

 

9.61

 

 

 

8.88

 

Operating return on average total equity (b)

 

 

9.22

 

 

 

9.10

 

 

 

8.90

 

 

 

9.89

 

 

 

9.57

 

Efficiency ratio

 

 

72.85

 

 

 

72.48

 

 

 

69.51

 

 

 

71.17

 

 

 

76.18

 

Operating efficiency ratio (b)

 

 

70.62

 

 

 

70.43

 

 

 

70.35

 

 

 

70.42

 

 

 

74.36

 

Net noninterest expense to average assets

 

 

1.45

 

 

 

1.45

 

 

 

1.35

 

 

 

1.45

 

 

 

1.65

 

Operating net noninterest expense to average assets(b)

 

 

1.36

 

 

 

1.38

 

 

 

1.38

 

 

 

1.42

 

 

 

1.58

 

ASSET QUALITY

 

 

 

 

 

 

 

 

 

 

Nonperforming portfolio loans

 

$

3,653

 

 

$

3,674

 

 

$

7,804

 

 

$

5,625

 

 

$

6,716

 

Nonperforming government guaranteed loans

 

 

3,016

 

 

 

2,757

 

 

 

2,035

 

 

 

3,641

 

 

 

4,369

 

Loans 90 days past due and still accruing

 

 

41

 

 

 

—

 

 

 

370

 

 

 

9

 

 

 

—

 

Total nonperforming loans (NPLs)

 

 

6,710

 

 

 

6,431

 

 

 

10,209

 

 

 

9,275

 

 

 

11,085

 

Other real estate owned

 

 

582

 

 

 

562

 

 

 

448

 

 

 

812

 

 

 

792

 

Repossessed assets

 

 

13

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total nonperforming assets (NPAs)

 

 

7,305

 

 

 

6,993

 

 

 

10,657

 

 

 

10,087

 

 

 

11,877

 

Classified loans

 

 

22,355

 

 

 

25,965

 

 

 

23,754

 

 

 

20,704

 

 

 

19,267

 

Criticized loans

 

 

44,850

 

 

 

55,065

 

 

 

56,879

 

 

 

50,741

 

 

 

48,074

 

Net loan charge-offs (recoveries)

 

 

667

 

 

 

664

 

 

 

692

 

 

 

698

 

 

 

(37

)

Allowance for credit losses to total loans

 

 

1.01

%

 

 

1.00

%

 

 

0.98

%

 

 

0.93

%

 

 

0.93

%

Allowance for credit losses to total NPLs

 

 

280.27

 

 

 

290.11

 

 

 

179.95

 

 

 

187.26

 

 

 

153.96

 

Allowance for credit losses to total NPAs

 

 

257.44

 

 

 

266.80

 

 

 

172.38

 

 

 

172.18

 

 

 

143.69

 

Net charge-offs (recoveries) to average loans, net

 

 

0.14

 

 

 

0.14

 

 

 

0.15

 

 

 

0.15

 

 

 

(0.01

)

NPLs to total loans

 

 

0.36

 

 

 

0.35

 

 

 

0.54

 

 

 

0.50

 

 

 

0.60

 

NPAs to total assets

 

 

0.24

 

 

 

0.23

 

 

 

0.35

 

 

 

0.33

 

 

 

0.38

 

NPAs to total loans and foreclosed assets

 

 

0.39

 

 

 

0.38

 

 

 

0.57

 

 

 

0.54

 

 

 

0.65

 

 

 

 

 

 

 

 

 

 

 

 

AVERAGE BALANCES

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

3,010,486

 

 

$

3,036,093

 

 

$

3,027,812

 

 

$

3,058,485

 

 

$

3,030,044

 

Loans, net

 

 

1,850,451

 

 

 

1,853,077

 

 

 

1,860,652

 

 

 

1,854,367

 

 

 

1,814,172

 

Loans, held for sale

 

 

33,024

 

 

 

24,612

 

 

 

21,251

 

 

 

29,444

 

 

 

21,237

 

Deposits

 

 

2,492,479

 

 

 

2,543,259

 

 

 

2,538,500

 

 

 

2,565,026

 

 

 

2,524,949

 

Total stockholders’ equity

 

 

260,162

 

 

 

255,927

 

 

 

241,392

 

 

 

239,571

 

 

 

239,579

 

(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

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

2024

 

2023

(dollars in thousands)

Average

Balances

 

Income/

Expense

 

Yields/

Rates

 

Average

Balances

 

Income/

Expense

 

Yields/

Rates

Assets

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

Loans, net of unearned income 1

$

1,902,202

 

$

27,661

 

5.85

%

 

$

1,835,409

 

$

24,113

 

5.27

%

Investment securities, taxable

 

722,535

 

 

4,616

 

2.57

%

 

 

777,133

 

 

5,498

 

2.84

%

Investment securities, tax-exempt 2

 

100,143

 

 

547

 

2.20

%

 

 

113,931

 

 

592

 

2.08

%

Deposits in banks and short term investments

 

62,614

 

 

684

 

4.39

%

 

 

73,988

 

 

708

 

3.84

%

Total interest-earning assets

 

2,787,494

 

 

33,508

 

4.83

%

 

 

2,800,461

 

 

30,911

 

4.43

%

Noninterest-earning assets

 

222,992

 

 

 

 

 

 

229,583

 

 

 

 

Total assets

$

3,010,486

 

 

 

 

 

$

3,030,044

 

 

 

 

Liabilities and stockholders' equity

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand and savings

$

1,451,300

 

$

6,784

 

1.88

%

 

$

1,372,569

 

$

3,422

 

1.00

%

Other time

 

577,173

 

 

5,322

 

3.71

%

 

 

651,426

 

 

5,134

 

3.16

%

Total interest-bearing deposits

 

2,028,473

 

 

12,106

 

2.40

%

 

 

2,023,995

 

 

8,556

 

1.70

%

Federal funds purchased

 

—

 

 

—

 

5.94

%

 

 

3,402

 

 

47

 

5.49

%

Federal Home Loan Bank advances

 

178,516

 

 

1,821

 

4.10

%

 

 

178,132

 

 

1,947

 

4.38

%

Other borrowings

 

63,638

 

 

1,000

 

6.32

%

 

 

68,385

 

 

1,033

 

6.06

%

Total other interest-bearing liabilities

 

242,154

 

 

2,821

 

4.69

%

 

 

249,919

 

 

3,027

 

4.86

%

Total interest-bearing liabilities

 

2,270,627

 

 

14,927

 

2.64

%

 

 

2,273,914

 

 

11,583

 

2.04

%

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

464,007

 

 

 

 

 

$

500,954

 

 

 

 

Other liabilities

 

15,690

 

 

 

 

 

 

15,597

 

 

 

 

Stockholders' equity

 

260,162

 

 

 

 

 

 

239,579

 

 

 

 

Total noninterest-bearing liabilities and stockholders' equity

 

739,859

 

 

 

 

 

 

756,130

 

 

 

 

Total liabilities and stockholders' equity

$

3,010,486

 

 

 

 

 

$

3,030,044

 

 

 

 

Interest rate spread

 

 

 

 

2.19

%

 

 

 

 

 

2.39

%

Net interest income

 

 

$

18,581

 

 

 

 

 

$

19,328

 

 

Net interest margin

 

 

 

 

2.68

%

 

 

 

 

 

2.77

%

 

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 $56,000 and $45,000 for the quarters ended June 30, 2024 and 2023, respectively, are calculated using the statutory federal tax rate and are included in income and fees on loans. Accretion income of $15,000 and $53,000 for the quarters ended June 30, 2024 and 2023, respectively, are also included in income and fees on loans.

2Taxable-equivalent adjustments totaling $115,000 and $108,000 for the quarters ended June 30, 2024 and 2023, respectively, are calculated using the statutory federal tax rate and are included in tax-exempt interest on investment securities.

Colony Bankcorp, Inc.

Average Balance Sheet and Net Interest Analysis

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

2024

 

2023

(dollars in thousands)

Average

Balances

 

Income/

Expense

 

Yields/

Rates

 

Average

Balances

 

Income/

Expense

 

Yields/

Rates

Assets

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

Loans, net of unearned income 3

$

1,899,108

 

$

54,804

 

5.80

%

 

$

1,807,784

 

$

46,313

 

5.17

%

Investment securities, taxable

 

729,896

 

 

9,658

 

2.66

%

 

 

781,989

 

 

10,872

 

2.80

%

Investment securities, tax-exempt 4

 

103,481

 

 

1,152

 

2.24

%

 

 

114,137

 

 

1,187

 

2.10

%

Deposits in banks and short term investments

 

67,023

 

 

1,376

 

4.13

%

 

 

62,507

 

 

1,066

 

3.44

%

Total interest-earning assets

 

2,799,508

 

 

66,990

 

4.81

%

 

 

2,766,417

 

 

59,438

 

4.33

%

Noninterest-earning assets

 

223,781

 

 

 

 

 

 

223,818

 

 

 

 

Total assets

$

3,023,289

 

 

 

 

 

$

2,990,235

 

 

 

 

Liabilities and stockholders' equity

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand and savings

$

1,451,395

 

$

13,193

 

1.83

%

 

$

1,391,099

 

$

5,746

 

0.83

%

Other time

 

594,707

 

 

11,005

 

3.72

%

 

 

579,818

 

 

7,809

 

2.72

%

Total interest-bearing deposits

 

2,046,102

 

 

24,198

 

2.38

%

 

 

1,970,917

 

 

13,555

 

1.39

%

Federal funds purchased

 

6

 

 

—

 

5.95

%

 

 

5,197

 

 

135

 

5.24

%

Federal Home Loan Bank advances

 

167,747

 

 

3,392

 

4.07

%

 

 

163,867

 

 

3,572

 

4.40

%

Other borrowings

 

63,362

 

 

1,993

 

6.33

%

 

 

72,213

 

 

2,123

 

5.93

%

Total other interest-bearing liabilities

 

231,115

 

 

5,385

 

4.69

%

 

 

241,277

 

 

5,830

 

4.87

%

Total interest-bearing liabilities

 

2,277,217

 

 

29,583

 

2.61

%

 

 

2,212,194

 

 

19,385

 

1.77

%

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

471,768

 

 

 

 

 

$

528,432

 

 

 

 

Other liabilities

 

16,259

 

 

 

 

 

 

12,731

 

 

 

 

Stockholders' equity

 

258,045

 

 

 

 

 

 

236,878

 

 

 

 

Total noninterest-bearing liabilities and stockholders' equity

 

746,072

 

 

 

 

 

 

778,041

 

 

 

 

Total liabilities and stockholders' equity

$

3,023,289

 

 

 

 

 

$

2,990,235

 

 

 

 

Interest rate spread

 

 

 

 

2.20

%

 

 

 

 

 

2.56

%

Net interest income

 

 

$

37,407

 

 

 

 

 

$

40,053

 

 

Net interest margin

 

 

 

 

2.69

%

 

 

 

 

 

2.92

%

 

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 $103,000 and $91,000 for the six months ended June 30, 2024 and 2023, respectively, are calculated using the statutory federal tax rate and are included in income and fees on loans. Accretion income of $10,000 and $124,000 for the six months ended June 30, 2024 and 2023, respectively, are also included in income and fees on loans.

4Taxable-equivalent adjustments totaling $242,000 and $217,000 for the six months ended June 30, 2024 and 2023, respectively, are included in tax-exempt interest on investment securities.

Colony Bankcorp, Inc.

 

 

Segment Reporting

 

 

 

 

2024

 

2023

(dollars in thousands)

 

Second

Quarter

 

First

Quarter

 

Fourth

Quarter

 

Third

Quarter

 

Second

Quarter

Banking Division

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

17,217

 

$

17,552

 

 

$

17,986

 

$

18,778

 

 

$

18,562

Provision for credit losses

 

 

96

 

 

455

 

 

 

979

 

 

286

 

 

 

60

Noninterest income

 

 

5,086

 

 

5,680

 

 

 

5,992

 

 

6,233

 

 

 

5,433

Noninterest expenses

 

 

17,135

 

 

17,129

 

 

 

16,619

 

 

16,653

 

 

 

17,650

Income taxes

 

 

1,060

 

 

1,166

 

 

 

1,365

 

 

1,777

 

 

 

1,157

Segment income

 

$

4,012

 

$

4,482

 

 

$

5,015

 

$

6,295

 

 

$

5,128

 

 

 

 

 

 

 

 

 

 

 

Total segment assets

 

$

2,889,013

 

$

2,910,102

 

 

$

2,956,121

 

$

2,999,071

 

 

$

3,013,689

 

 

 

 

 

 

 

 

 

 

 

Full time employees

 

 

385

 

 

377

 

 

 

378

 

 

382

 

 

 

383

 

 

 

 

 

 

 

 

 

 

 

Mortgage Banking Division

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

50

 

$

40

 

 

$

23

 

$

52

 

 

$

31

Provision for credit losses

 

 

—

 

 

—

 

 

 

—

 

 

—

 

 

 

—

Noninterest income

 

 

1,456

 

 

1,165

 

 

 

1,206

 

 

1,725

 

 

 

2,015

Noninterest expenses

 

 

1,326

 

 

1,218

 

 

 

1,203

 

 

2,040

 

 

 

1,971

Income taxes

 

 

42

 

 

1

 

 

 

8

 

 

(53

)

 

 

14

Segment income

 

$

138

 

$

(14

)

 

$

18

 

$

(210

)

 

$

61

 

 

 

 

 

 

 

 

 

 

 

Total segment assets

 

$

19,004

 

$

8,011

 

 

$

7,890

 

$

9,991

 

 

$

15,984

 

 

 

 

 

 

 

 

 

 

 

Variable noninterest expense(1)

 

$

807

 

$

603

 

 

$

597

 

$

1,245

 

 

$

1,149

Fixed noninterest expense

 

 

519

 

 

615

 

 

 

606

 

 

795

 

 

 

822

 

 

 

 

 

 

 

 

 

 

 

Full time employees

 

 

42

 

 

43

 

 

 

42

 

 

45

 

 

 

51

 

 

 

 

 

 

 

 

 

 

 

Small Business Specialty Lending Division

 

 

 

 

 

 

Net interest income

 

$

1,142

 

$

1,062

 

 

$

865

 

$

791

 

 

$

588

Provision for credit losses

 

 

554

 

 

545

 

 

 

521

 

 

714

 

 

 

140

Noninterest income

 

 

2,955

 

 

2,642

 

 

 

2,107

 

 

1,760

 

 

 

1,504

Noninterest expenses

 

 

1,869

 

 

2,050

 

 

 

1,765

 

 

2,188

 

 

 

1,811

Income taxes

 

 

350

 

 

244

 

 

 

121

 

 

(70

)

 

 

28

Segment income

 

$

1,324

 

$

865

 

 

$

565

 

$

(281

)

 

$

113

 

 

 

 

 

 

 

 

 

 

 

Total segment assets

 

$

99,890

 

$

97,396

 

 

$

89,411

 

$

84,761

 

 

$

71,398

 

 

 

 

 

 

 

 

 

 

 

Full time employees

 

 

33

 

 

31

 

 

 

33

 

 

33

 

 

 

32

 

 

 

 

 

 

 

 

 

 

 

Total Consolidated

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

18,409

 

$

18,654

 

 

$

18,874

 

$

19,621

 

 

$

19,181

Provision for credit losses

 

 

650

 

 

1,000

 

 

 

1,500

 

 

1,000

 

 

 

200

Noninterest income

 

 

9,497

 

 

9,487

 

 

 

9,305

 

 

9,718

 

 

 

8,952

Noninterest expenses

 

 

20,330

 

 

20,397

 

 

 

19,587

 

 

20,881

 

 

 

21,432

Income taxes

 

 

1,452

 

 

1,411

 

 

 

1,494

 

 

1,654

 

 

 

1,199

Segment income

 

$

5,474

 

$

5,333

 

 

$

5,598

 

$

5,804

 

 

$

5,302

 

 

 

 

 

 

 

 

 

 

 

Total segment assets

 

$

3,007,907

 

$

3,015,509

 

 

$

3,053,422

 

$

3,093,823

 

 

$

3,101,071

 

 

 

 

 

 

 

 

 

 

 

Full time employees

 

 

460

 

 

451

 

 

 

453

 

 

460

 

 

 

466

 

 

 

 

 

 

 

 

 

 

 

(1) Variable noninterest expense includes commission based salary expenses and volume based loan related fees.

Colony Bankcorp, Inc.

Consolidated Balance Sheets

 

 

June 30, 2024

 

December 31, 2023

(dollars in thousands)

 

(unaudited)

 

(audited)

ASSETS

 

 

 

 

Cash and due from banks

 

$

22,404

 

 

$

25,339

 

Interest-bearing deposits in banks and federal funds sold

 

 

59,598

 

 

 

57,983

 

Cash and cash equivalents

 

 

82,002

 

 

 

83,322

 

Investment securities available for sale, at fair value

 

 

376,580

 

 

 

407,382

 

Investment securities held to maturity, at amortized cost

 

 

442,945

 

 

 

449,031

 

Other investments

 

 

18,491

 

 

 

16,868

 

Loans held for sale

 

 

40,132

 

 

 

27,958

 

Loans, net of unearned income

 

 

1,865,574

 

 

 

1,883,470

 

Allowance for credit losses

 

 

(18,806

)

 

 

(18,371

)

Loans, net

 

 

1,846,768

 

 

 

1,865,099

 

Premises and equipment

 

 

38,343

 

 

 

39,870

 

Other real estate

 

 

582

 

 

 

448

 

Goodwill

 

 

48,923

 

 

 

48,923

 

Other intangible assets

 

 

3,535

 

 

 

4,192

 

Bank owned life insurance

 

 

57,173

 

 

 

56,925

 

Deferred income taxes, net

 

 

24,164

 

 

 

25,405

 

Other assets

 

 

28,269

 

 

 

27,999

 

Total assets

 

$

3,007,907

 

 

$

3,053,422

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

Liabilities:

 

 

 

 

Deposits:

 

 

 

 

Noninterest-bearing

 

$

437,623

 

 

$

498,992

 

Interest-bearing

 

 

2,022,602

 

 

 

2,045,798

 

Total deposits

 

 

2,460,225

 

 

 

2,544,790

 

Federal Home Loan Bank advances

 

 

205,000

 

 

 

175,000

 

Other borrowed money

 

 

62,992

 

 

 

63,445

 

Accrued expenses and other liabilities

 

 

14,947

 

 

 

15,252

 

Total liabilities

 

$

2,743,164

 

 

$

2,798,487

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

Common stock, $1 par value; 50,000,000 shares authorized, 17,538,611 and 17,564,182 issued and outstanding, respectively

 

$

17,539

 

 

$

17,564

 

Paid in capital

 

 

169,132

 

 

 

168,614

 

Retained earnings

 

 

131,256

 

 

 

124,400

 

Accumulated other comprehensive loss, net of tax

 

 

(53,184

)

 

 

(55,643

)

Total stockholders’ equity

 

 

264,743

 

 

 

254,935

 

Total liabilities and stockholders’ equity

 

$

3,007,907

 

 

$

3,053,422

 

Colony Bankcorp, Inc.

 

 

 

 

 

 

 

 

Consolidated Statements of Income (unaudited)

 

 

 

 

 

 

 

 

 

 

Three months ended June 30,

 

Six months ended June 30,

 

 

2024

 

2023

 

2024

 

2023

(dollars in thousands, except per share data)

 

 

 

 

 

 

Interest income:

 

 

 

 

 

 

 

 

Loans, including fees

 

$

27,604

 

 

$

24,067

 

$

54,701

 

 

$

46,220

Investment securities

 

 

5,048

 

 

 

5,989

 

 

10,569

 

 

 

11,849

Deposits in banks and short term investments

 

 

684

 

 

 

708

 

 

1,376

 

 

 

1,065

Total interest income

 

 

33,336

 

 

 

30,764

 

 

66,646

 

 

 

59,134

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

Deposits

 

 

12,106

 

 

 

8,556

 

 

24,198

 

 

 

13,555

Federal funds purchased

 

 

—

 

 

 

47

 

 

—

 

 

 

135

Federal Home Loan Bank advances

 

 

1,821

 

 

 

1,947

 

 

3,392

 

 

 

3,573

Other borrowings

 

 

1,000

 

 

 

1,033

 

 

1,993

 

 

 

2,122

Total interest expense

 

 

14,927

 

 

 

11,583

 

 

29,583

 

 

 

19,385

Net interest income

 

 

18,409

 

 

 

19,181

 

 

37,063

 

 

 

39,749

Provision for credit losses

 

 

650

 

 

 

200

 

 

1,650

 

 

 

1,100

Net interest income after provision for credit losses

 

 

17,759

 

 

 

18,981

 

 

35,413

 

 

 

38,649

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

 

Service charges on deposits

 

 

2,288

 

 

 

2,027

 

 

4,662

 

 

 

3,941

Mortgage fee income

 

 

1,442

 

 

 

2,014

 

 

2,691

 

 

 

3,197

Gain on sales of SBA loans

 

 

2,347

 

 

 

1,105

 

 

4,393

 

 

 

2,162

Loss on sales of securities

 

 

(425

)

 

 

—

 

 

(980

)

 

 

—

Interchange fees

 

 

2,078

 

 

 

2,131

 

 

4,105

 

 

 

4,199

BOLI income

 

 

398

 

 

 

358

 

 

931

 

 

 

689

Insurance commissions

 

 

420

 

 

 

449

 

 

886

 

 

 

909

Other

 

 

949

 

 

 

868

 

 

2,296

 

 

 

1,514

Total noninterest income

 

 

9,497

 

 

 

8,952

 

 

18,984

 

 

 

16,611

 

 

 

 

 

 

 

 

 

Noninterest expense:

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

12,277

 

 

 

13,348

 

 

24,296

 

 

 

25,957

Occupancy and equipment

 

 

1,475

 

 

 

1,499

 

 

2,982

 

 

 

3,121

Information technology expenses

 

 

2,227

 

 

 

2,001

 

 

4,338

 

 

 

4,342

Professional fees

 

 

704

 

 

 

881

 

 

1,537

 

 

 

1,596

Advertising and public relations

 

 

967

 

 

 

673

 

 

1,927

 

 

 

1,666

Communications

 

 

216

 

 

 

192

 

 

442

 

 

 

486

Other

 

 

2,464

 

 

 

2,838

 

 

5,205

 

 

 

5,429

Total noninterest expense

 

 

20,330

 

 

 

21,432

 

 

40,727

 

 

 

42,597

Income before income taxes

 

 

6,926

 

 

 

6,501

 

 

13,670

 

 

 

12,663

Income taxes

 

 

1,452

 

 

 

1,199

 

 

2,863

 

 

 

2,318

Net income

 

$

5,474

 

 

$

5,302

 

$

10,807

 

 

$

10,345

Earnings per common share:

 

 

 

 

 

 

 

 

Basic

 

$

0.31

 

 

$

0.30

 

$

0.62

 

 

$

0.59

Diluted

 

 

0.31

 

 

 

0.30

 

 

0.62

 

 

 

0.59

Dividends declared per share

 

 

0.1125

 

 

 

0.1100

 

 

0.2250

 

 

 

0.2200

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

17,551,007

 

 

 

17,580,557

 

 

17,555,609

 

 

 

17,588,081

Diluted

 

 

17,551,007

 

 

 

17,580,557

 

 

17,555,609

 

 

 

17,588,081

Colony Bankcorp, Inc.

 

 

 

 

 

 

 

 

 

 

Quarterly Consolidated Statements of Income

 

 

 

 

 

 

 

 

 

 

 

 

2024

 

2023

 

 

Second

Quarter

 

First

Quarter

 

Fourth

Quarter

 

Third

Quarter

 

Second

Quarter

(dollars in thousands, except per share data)

 

(unaudited)

 

(unaudited)

 

(audited)

 

(unaudited)

 

(unaudited)

Interest income:

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

27,604

 

 

$

27,097

 

 

$

27,014

 

$

26,022

 

$

24,067

Investment securities

 

 

5,048

 

 

 

5,520

 

 

 

5,700

 

 

5,770

 

 

5,989

Deposits in banks and short term investments

 

 

684

 

 

 

693

 

 

 

489

 

 

787

 

 

708

Total interest income

 

 

33,336

 

 

 

33,310

 

 

 

33,203

 

 

32,579

 

 

30,764

 

 

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

12,106

 

 

 

12,091

 

 

 

11,571

 

 

10,338

 

 

8,556

Federal funds purchased

 

 

—

 

 

 

—

 

 

 

1

 

 

11

 

 

47

Federal Home Loan Bank advances

 

 

1,821

 

 

 

1,572

 

 

 

1,623

 

 

1,568

 

 

1,947

Other borrowings

 

 

1,000

 

 

 

993

 

 

 

1,134

 

 

1,041

 

 

1,033

Total interest expense

 

 

14,927

 

 

 

14,656

 

 

 

14,329

 

 

12,958

 

 

11,583

Net interest income

 

 

18,409

 

 

 

18,654

 

 

 

18,874

 

 

19,621

 

 

19,181

Provision for credit losses

 

 

650

 

 

 

1,000

 

 

 

1,500

 

 

1,000

 

 

200

Net interest income after provision for credit losses

 

 

17,759

 

 

 

17,654

 

 

 

17,374

 

 

18,621

 

 

18,981

 

 

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

Service charges on deposits

 

 

2,288

 

 

 

2,373

 

 

 

2,595

 

 

2,200

 

 

2,027

Mortgage fee income

 

 

1,442

 

 

 

1,249

 

 

 

1,203

 

 

1,730

 

 

2,014

Gain on sales of SBA loans

 

 

2,347

 

 

 

2,046

 

 

 

1,634

 

 

1,268

 

 

1,105

Loss on sales of securities

 

 

(425

)

 

 

(555

)

 

 

—

 

 

—

 

 

—

Interchange fees

 

 

2,078

 

 

 

2,028

 

 

 

2,059

 

 

2,202

 

 

2,131

BOLI income

 

 

398

 

 

 

533

 

 

 

372

 

 

335

 

 

358

Insurance commissions

 

 

420

 

 

 

465

 

 

 

452

 

 

509

 

 

449

Other

 

 

949

 

 

 

1,348

 

 

 

990

 

 

1,474

 

 

868

Total noninterest income

 

 

9,497

 

 

 

9,487

 

 

 

9,305

 

 

9,718

 

 

8,952

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

12,277

 

 

 

12,018

 

 

 

11,304

 

 

11,973

 

 

13,348

Occupancy and equipment

 

 

1,475

 

 

 

1,507

 

 

 

1,543

 

 

1,620

 

 

1,499

Information technology expenses

 

 

2,227

 

 

 

2,110

 

 

 

2,147

 

 

2,064

 

 

2,001

Professional fees

 

 

704

 

 

 

834

 

 

 

749

 

 

752

 

 

881

Advertising and public relations

 

 

967

 

 

 

960

 

 

 

1,054

 

 

766

 

 

673

Communications

 

 

216

 

 

 

226

 

 

 

237

 

 

224

 

 

192

Other

 

 

2,464

 

 

 

2,742

 

 

 

2,553

 

 

3,482

 

 

2,838

Total noninterest expense

 

 

20,330

 

 

 

20,397

 

 

 

19,587

 

 

20,881

 

 

21,432

Income before income taxes

 

 

6,926

 

 

 

6,744

 

 

 

7,092

 

 

7,458

 

 

6,501

Income taxes

 

 

1,452

 

 

 

1,411

 

 

 

1,494

 

 

1,654

 

 

1,199

Net income

 

$

5,474

 

 

$

5,333

 

 

$

5,598

 

$

5,804

 

$

5,302

Earnings per common share:

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.31

 

 

$

0.30

 

 

$

0.32

 

$

0.33

 

$

0.30

Diluted

 

 

0.31

 

 

 

0.30

 

 

 

0.32

 

 

0.33

 

 

0.30

Dividends declared per share

 

 

0.1125

 

 

 

0.1125

 

 

 

0.1100

 

 

0.1100

 

 

0.1100

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

Basic

 

 

17,551,007

 

 

 

17,560,210

 

 

 

17,567,839

 

 

17,569,493

 

 

17,580,557

Diluted

 

 

17,551,007

 

 

 

17,560,210

 

 

 

17,567,839

 

 

17,569,493

 

 

17,580,557

Colony Bankcorp, Inc.

Quarterly Comparison

 

 

2024

 

2023

(dollars in thousands, except per share data)

 

Second

Quarter

 

First

Quarter

 

Fourth

Quarter

 

Third

Quarter

 

Second

Quarter

Assets

 

$

3,007,907

 

 

$

3,015,509

 

 

$

3,053,422

 

 

$

3,093,823

 

 

$

3,101,071

 

Loans, net

 

 

1,846,768

 

 

 

1,840,361

 

 

 

1,865,099

 

 

 

1,847,603

 

 

 

1,821,776

 

Deposits

 

 

2,460,225

 

 

 

2,522,748

 

 

 

2,544,790

 

 

 

2,591,332

 

 

 

2,627,211

 

Total equity

 

 

264,743

 

 

 

259,914

 

 

 

254,935

 

 

 

238,692

 

 

 

239,455

 

Net income

 

 

5,474

 

 

 

5,333

 

 

 

5,598

 

 

 

5,804

 

 

 

5,302

 

Earnings per basic share

 

$

0.31

 

 

$

0.30

 

 

$

0.32

 

 

$

0.33

 

 

$

0.30

 

 

 

 

 

 

 

 

 

 

 

 

Key Performance Ratios:

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

0.73

%

 

 

0.71

%

 

 

0.73

%

 

 

0.75

%

 

 

0.70

%

Operating return on average assets (a)

 

 

0.80

%

 

 

0.76

%

 

 

0.71

%

 

 

0.77

%

 

 

0.75

%

Return on average total equity

 

 

8.46

%

 

 

8.38

%

 

 

9.20

%

 

 

9.61

%

 

 

8.88

%

Operating return on average total equity (a)

 

 

9.22

%

 

 

9.10

%

 

 

8.90

%

 

 

9.89

%

 

 

9.57

%

Total equity to total assets

 

 

8.80

%

 

 

8.62

%

 

 

8.35

%

 

 

7.72

%

 

 

7.72

%

Tangible equity to tangible assets (a)

 

 

7.18

%

 

 

6.99

%

 

 

6.73

%

 

 

6.09

%

 

 

6.09

%

Net interest margin

 

 

2.68

%

 

 

2.69

%

 

 

2.70

%

 

 

2.78

%

 

 

2.77

%

(a) Non-GAAP measure - see “Explanation of Certain Unaudited Non-GAAP Financial Measures” for more information and reconciliation to GAAP.

Colony Bankcorp, Inc.

Quarterly Deposits Composition Comparison

 

 

2024

 

2023

(dollars in thousands)

 

Second

Quarter

 

First

Quarter

 

Fourth

Quarter

 

Third

Quarter

 

Second

Quarter

Noninterest-bearing demand

 

$

437,623

 

$

476,413

 

$

498,992

 

$

494,221

 

$

541,119

Interest-bearing demand

 

 

788,674

 

 

802,596

 

 

759,299

 

 

740,672

 

 

733,708

Savings

 

 

670,848

 

 

650,188

 

 

660,311

 

 

681,229

 

 

659,137

Time, $250,000 and over

 

 

168,856

 

 

173,386

 

 

167,680

 

 

187,218

 

 

184,459

Other time

 

 

394,224

 

 

420,165

 

 

458,508

 

 

487,992

 

 

508,788

Total

 

$

2,460,225

 

$

2,522,748

 

$

2,544,790

 

$

2,591,332

 

$

2,627,211

Colony Bankcorp, Inc.

Quarterly Deposits by Location Comparison

 

 

2024

 

2023

(dollars in thousands)

 

Second

Quarter

 

First

Quarter

 

Fourth

Quarter

 

Third

Quarter

 

Second

Quarter

Coastal Georgia

 

$

144,021

 

$

138,103

 

$

137,398

 

$

133,888

 

$

133,536

Middle Georgia

 

 

275,758

 

 

286,697

 

 

265,788

 

 

262,352

 

 

265,615

Atlanta and North Georgia

 

 

336,338

 

 

333,856

 

 

334,003

 

 

345,179

 

 

341,664

South Georgia

 

 

1,110,049

 

 

1,132,701

 

 

1,134,662

 

 

1,132,545

 

 

1,197,545

West Georgia

 

 

365,380

 

 

378,764

 

 

384,750

 

 

389,269

 

 

402,665

Brokered deposits

 

 

39,240

 

 

59,019

 

 

93,561

 

 

148,707

 

 

112,372

Reciprocal deposits

 

 

189,439

 

 

193,608

 

 

194,628

 

 

179,392

 

 

173,814

Total

 

$

2,460,225

 

$

2,522,748

 

$

2,544,790

 

$

2,591,332

 

$

2,627,211

Colony Bankcorp, Inc.

Quarterly Loan Comparison

 

 

2024

 

2023

(dollars in thousands)

 

Second

Quarter

 

First

Quarter

 

Fourth

Quarter

 

Third

Quarter

 

Second

Quarter

Core

 

$

1,732,843

 

$

1,718,284

 

$

1,729,866

 

$

1,698,219

 

$

1,664,855

Purchased

 

 

132,731

 

 

140,734

 

 

153,604

 

 

166,752

 

 

173,987

Total

 

$

1,865,574

 

$

1,859,018

 

$

1,883,470

 

$

1,864,971

 

$

1,838,842

Colony Bankcorp, Inc.

Quarterly Loans by Composition Comparison

 

 

2024

 

2023

(dollars in thousands)

 

Second

Quarter

 

First

Quarter

 

Fourth

Quarter

 

Third

Quarter

 

Second

Quarter

Construction, land & land development

 

$

199,916

 

$

234,000

 

$

247,146

 

$

245,268

 

$

249,423

Other commercial real estate

 

 

985,102

 

 

971,205

 

 

974,649

 

 

969,168

 

 

979,509

Total commercial real estate

 

 

1,185,018

 

 

1,205,205

 

 

1,221,795

 

 

1,214,436

 

 

1,228,932

Residential real estate

 

 

360,847

 

 

347,277

 

 

355,973

 

 

339,501

 

 

325,407

Commercial, financial & agricultural

 

 

242,205

 

 

239,837

 

 

242,743

 

 

252,725

 

 

243,458

Consumer and other

 

 

77,504

 

 

66,699

 

 

62,959

 

 

58,309

 

 

41,045

Total

 

$

1,865,574

 

$

1,859,018

 

$

1,883,470

 

$

1,864,971

 

$

1,838,842

Colony Bankcorp, Inc.

 

 

 

 

 

 

 

 

 

 

Quarterly Loans by Location Comparison

 

 

 

 

 

 

 

 

 

 

2024

 

2023

(dollars in thousands)

 

Second

Quarter

 

First

Quarter

 

Fourth

Quarter

 

Third

Quarter

 

Second

Quarter

Alabama

 

$

44,575

 

$

44,806

 

$

45,594

 

$

45,135

 

$

44,301

Florida

 

 

2,753

 

 

1,579

 

 

40

 

 

—

 

 

—

Augusta

 

 

64,465

 

 

71,483

 

 

65,284

 

 

55,508

 

 

55,124

Coastal Georgia

 

 

228,844

 

 

232,557

 

 

243,492

 

 

239,281

 

 

242,249

Middle Georgia

 

 

124,268

 

 

121,131

 

 

118,806

 

 

116,776

 

 

119,041

Atlanta and North Georgia

 

 

427,568

 

 

425,753

 

 

426,724

 

 

431,632

 

 

420,231

South Georgia

 

 

413,098

 

 

409,681

 

 

436,728

 

 

446,221

 

 

463,558

West Georgia

 

 

184,365

 

 

183,679

 

 

187,751

 

 

188,208

 

 

192,348

Small Business Specialty Lending

 

 

75,182

 

 

71,196

 

 

68,637

 

 

65,187

 

 

56,908

Consumer Portfolio Mortgages

 

 

257,772

 

 

261,204

 

 

255,771

 

 

245,057

 

 

226,755

Marine/RV Lending

 

 

41,922

 

 

35,017

 

 

33,191

 

 

31,009

 

 

17,137

Other

 

 

762

 

 

932

 

 

1,452

 

 

957

 

 

1,190

Total

 

$

1,865,574

 

$

1,859,018

 

$

1,883,470

 

$

1,864,971

 

$

1,838,842

Colony Bankcorp, Inc.

Classified Loans

 

 

2024

 

2023

(dollars in thousands)

 

Second

Quarter

First

Quarter

 

Fourth

Quarter

Third

Quarter

Second

Quarter

 

 

$

#

$

#

 

$

#

$

#

$

#

Construction, land & land development

 

$

54

 

3

$

572

 

11

 

$

1,063

 

14

$

1,180

 

13

$

570

 

12

Other commercial real estate

 

 

13,990

 

34

 

13,918

 

46

 

 

10,219

 

39

 

7,726

 

41

 

5,954

 

36

Residential real estate

 

 

2,168

 

104

 

5,896

 

183

 

 

7,103

 

187

 

6,633

 

184

 

7,186

 

193

Commercial, financial & agricultural

 

 

6,075

 

54

 

5,487

 

70

 

 

5,284

 

58

 

5,102

 

56

 

5,465

 

54

Consumer and other

 

 

68

 

24

 

92

 

67

 

 

85

 

76

 

63

 

73

 

92

 

69

TOTAL

 

$

22,355

 

219

$

25,965

 

377

 

$

23,754

 

374

$

20,704

 

367

$

19,267

 

364

Classified loans to total loans

 

 

1.20

%

 

 

1.40

%

 

 

 

1.26

%

 

 

1.11

%

 

 

1.05

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Colony Bankcorp, Inc.

Criticized Loans

 

 

2024

 

2023

(dollars in thousands)

 

Second Quarter

First Quarter

 

Fourth Quarter

Third Quarter

Second Quarter

 

 

$

#

$

#

 

$

#

$

#

$

#

Construction, land & land development

 

$

626

 

6

$

1,543

 

18

 

$

2,192

 

21

$

1,238

 

17

$

817

 

19

Other commercial real estate

 

 

31,544

 

59

 

31,498

 

46

 

 

27,445

 

77

 

20,356

 

70

 

25,577

 

76

Residential real estate

 

 

5,431

 

107

 

13,050

 

249

 

 

14,275

 

253

 

13,212

 

245

 

14,211

 

269

Commercial, financial & agricultural

 

 

7,181

 

59

 

8,609

 

114

 

 

12,686

 

106

 

15,701

 

89

 

7,285

 

80

Consumer and other

 

 

68

 

24

 

365

 

85

 

 

281

 

92

 

234

 

92

 

184

 

86

TOTAL

 

$

44,850

 

255

$

55,065

 

512

 

$

56,879

 

549

$

50,741

 

513

$

48,074

 

530

Criticized loans to total loans

 

 

2.40

%

 

 

2.96

%

 

 

 

3.02

%

 

 

2.72

%

 

 

2.61

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240724223432/en/

Derek Shelnutt EVP & Chief Financial Officer 229-426-6000, extension 6119