FITZGERALD, Ga., July 17, 2018 (GLOBE NEWSWIRE) -- Colony Bankcorp, Inc. (Nasdaq: CBAN ), today reported net income available to shareholders of $3,069,000, or $0.36 per diluted share for the second quarter of 2018 compared to $2,433,000, or $0.28 per diluted share for the comparable 2017 period, while net income available to shareholders for the six month period ended June 30, 2018 was $6,257,000, or $0.72 per diluted share compared to $4,339,000, or $0.50 per share for the comparable 2017 period.  This represents an increase year to date of 44.20 percent.  Earnings were positively impacted by an increase in net interest income, a reduction in provision for loan losses and a reduction in income tax expense.  “We are pleased to report another solid quarter, said Ed Loomis, President and Chief Executive Officer.  Colony’s strong earnings and capital position resulted in the board maintaining its quarterly dividend payout of $0.05.  During the quarter, Colony was successful in repurchasing stock warrants for 500,000 shares and eliminating the final remnant remaining from the 2009 TARP transaction.   We continue to move forward with our Statesboro, Georgia branch expansion and anticipate opening during first quarter 2019.  While loan activity continues to be slow and challenging,  economic activity continues to be positive and hopefully will instill consumer confidence for increased loan demand the last half of this year.  As always, we continue to explore opportunities to improve operating efficiencies which will further enhance shareholder value.”

Capital

Colony continues to maintain a strong regulatory capital position to be categorized as “well-capitalized” by regulatory benchmarks.  At June 30, 2018, the Company’s tier one leverage ratio, tier one ratio, total risk-based capital ratio and common equity tier one capital ratio were 10.17 percent, 14.87 percent,15.74 percent and 12.02 percent, respectively, compared to10.14 percent, 14.97 percent, 15.88 percent  and 12.11  percent, respectively, at March 31, 2018.  The Company’s capital ratios were all in excess of regulatory minimums required to be classified as “well-capitalized.”

Net Interest Margin  

During the second quarter of 2018, the Company reported net interest income of $10.17 million and a net interest margin of 3.57 percent compared to $9.82 million and 3.49 percent, respectively, for the comparable 2017 period, while net interest income for first half 2018 was $20.29 million and a net interest margin of 3.56 percent compared to $19.28 million and 3.42 percent, respectively, for first half 2017.  Given the recent surge in deposit pricing, our focus is on loan and deposit pricing along with loan growth to maintain or improve its’ net interest margin.

Asset Quality

Asset quality remains solid with significant improvement from a year ago.  Substandard assets that include non-performing assets totaled $24.54 million at June 30, 2018 compared to $26.19 million and $30.68 million, respectively, at December 31, 2017 and June 30, 2017.  Substandard assets adjusted for SBA guarantees to tier one capital plus loan loss reserve ratio was 17.58 percent, 20.18 percent and 23.77 percent, respectively, at June 30, 2018, December 31, 2017 and June 30, 2017.  Non-performing assets decreased significantly from the year ago period to $9.23 million or 1.20 percent of total loans and other real estate owned as of June 30, 2018.  This compares to $12.70 million or 1.63 percent at June 30, 2017.       

Other real estate (“OREO”) totaled $3.60 million at June 30, 2018 compared to $4.26 million and $4.53 million, respectively, at December 31, 2017 and June 30, 2017.   There are several contracts that we anticipate closing in the last half of 2018 to further reduce our OREO holdings.

In the second quarter of 2018 net charge-offs were $353 thousand, or 0.05 percent of average loans as compared to net charge-offs of $821 thousand, or 0.11 percent of average loans in second quarter 2017, while first half 2018 net charge-offs were $419 thousand or 0.05 percent of average loans compared to $1.22 million or 0.16 percent for the comparable 2017 period.  The loan loss reserve was $7.16 million or 0.93 percent of total loans on June 30, 2018 compared to $7.51 million or 0.98 percent and $8.04 million or 1.04 percent, respectively, at December 31, 2017 and June 30, 2017.  Loan loss reserve methodology resulted in $46 thousand  loan loss provision for three months ended June 30, 2018  compared to $0 for the comparable 2017 period and $70 thousand loan loss provision for first half 2018 compared to 335 thousand for the same comparable period in 2017.

Noninterest Income

Total noninterest income was flat in the comparable periods as noninterest income for six months ended June 30, 2018 was $4.76 million compared to $4.79 million in the comparable 2017 period, or a decrease of 0.75 percent.  Service charges on deposits decreased $14 thousand, or 0.65 percent and secondary mortgage fee income decreased $57 thousand or 14.69 percent.  Gain on the sale of securities was $116 thousand compared to no gain in the comparable 2017 period.    

Noninterest Expense

Total noninterest expense increased in the comparable periods as noninterest expense for six months ended June 30, 2018 was $17.14 million compared to $17.03 million for the comparable 2017 period, or an increase of 0.64 percent.  Salaries and employee benefit expenses increased 2.66 percent, occupancy expense increased 3.79 percent and other noninterest expense decreased 4.10 percent for the comparable periods.  The efficiency ratio improved to 68.63 percent for six months ended June 30, 2018 compared to 70.52 percent for the comparable 2017 period.   The company continues to explore opportunities to improve its’ operating efficiency.

Colony Bankcorp, Inc. is a bank holding company headquartered in Fitzgerald, Georgia that consists of one operating subsidiary, Colony Bank.  Colony Bank conducts a general full service commercial, consumer and mortgage banking business through twenty-six offices located in the central, southern and coastal Georgia cities of Albany, Ashburn, Broxton, Centerville, Columbus, Cordele, Douglas, Eastman, Fitzgerald, Leesburg, Moultrie, Quitman, Rochelle, Savannah, Soperton, Statesboro, Sylvester, Thomaston, Tifton, Valdosta and Warner Robins, Georgia. 

Colony Bankcorp, Inc. Common Stock is quoted on the Nasdaq Global Market under the symbol “CBAN”.

Certain statements contained in the preceding release that are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act”), notwithstanding that such statements are not specifically identified.  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 the Act.  Examples of forward-looking statements include, but are not limited to: (i) projections 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; and (iv) 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.

Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those in such statements.  Forward-looking statements speak only as of the date on which such statements are made.  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.

Consolidated Balance Sheets Colony Bankcorp, Inc.          
(in thousands)          
           
  June 30, 2018   December 31, 2017   June 30, 2017
  (unaudited)   (audited)   (unaudited)
ASSETS          
Cash and Cash Equivalents          
Cash and Due from Banks $ 9,900     $ 23,145     $ 19,071  
Interest-Bearing Deposits   38,573       34,668       10,988  
Investment Securities          
Available for Sale, at Fair Value   331,938       354,247       337,710  
Federal Home Loan Bank Stock, at Cost   3,382       3,043       3,255  
Loans   766,796       765,284       775,566  
Allowance for Loan Losses   (7,159 )     (7,507 )     (8,043 )
Unearned Interest and Fees   (541 )     (495 )     (454 )
    759,096       757,282       767,069  
Premises and Equipment   28,638       27,639       27,654  
Other Real Estate   3,595       4,256       4,525  
Other Intangible Assets   27       45       63  
Other Assets   29,323       28,430       28,114  
Total Assets $ 1,204,472     $ 1,232,755     $ 1,198,449  
           
           
LIABILITIES AND STOCKHOLDERS' EQUITY          
           
Deposits          
Noninterest-Bearing $ 177,336     $ 190,929     $ 162,928  
Interest-Bearing   858,550       877,057       863,610  
    1,035,886       1,067,986       1,026,538  
Borrowed Money          
Subordinated Debentures   24,229       24,229       24,229  
Other Borrowed Money   53,508       47,500       56,000  
    77,737       71,729       80,229  
           
Other Liabilities   2,603       2,717       2,690  
           
Stockholders' Equity          
Common Stock, Par Value $1 a share; Authorized          
20,000,000 Shares, Issued 8,439,258 Shares as of          
June 30, 2018, Dec. 31, 2017 and June 30, 2017,          
Respectively   8,439       8,439       8,439  
Paid in Capital   25,970       29,145       29,145  
Retained Earnings   64,643       59,231       55,383  
Accumulated Other Comprehensive Loss, Net of Tax   (10,806 )     (6,492 )     (3,975 )
    88,246       90,323       88,992  
Total Liabilities and Stockholders' Equity $ 1,204,472     $ 1,232,755     $ 1,198,449  
           


Consolidated Statements of Income Colony Bankcorp, Inc.
(in thousands except per share data)
  Quarter   Year-to-Date
  Three Months Ended   Six Months Ended
  6/30/2018   6/30/2017   6/30/2018   6/30/2017
  (unaudited)   (unaudited)   (unaudited)   (unaudited)
Interest Income              
Loans, Including Fees $ 10,065   $ 9,733   $ 19,793   $ 19,130
Deposits with Other Banks   69     34     144     114
Investment Securities              
U. S. Government Agencies   1,877     1,685     3,788     3,248
State, County and Municipal   25     30     52     60
Corporate Debt   28     21     56     36
Dividends on Other Investments   44     35     85     71
    12,108     11,538     23,918     22,659
Interest Expense              
Deposits   1,401     1,177     2,601     2,368
Federal Funds Purchased   -     3     -     3
Borrowed Money   542     542     1,023     1,010
    1,943     1,722     3,624     3,381
Net Interest Income   10,165     9,816     20,294     19,278
Provision for Loan Losses   46     -     70     335
Net Interest Income After Provision for Loan Losses   10,119     9,816     20,224     18,943
               
Noninterest Income              
Service Charges on Deposits   1,031     1,091     2,132     2,146
Other Service Charges, Commissions and Fees   822     772     1,611     1,559
Mortgage Fee Income   182     202     331     388
Securities Gains (Losses)   116     -     116     -
Other   173     329     568     701
    2,324     2,394     4,758     4,794
Noninterest Expense              
Salaries and Employee Benefits   5,002     4,880     9,922     9,665
Occupancy and Equipment   979     991     2,025     1,951
Other   2,618     2,749     5,190     5,412
    8,599     8,620     17,137     17,028
               
Income Before Income Taxes   3,844     3,590     7,845     6,709
Income Taxes   775     1,157     1,588     2,159
Net Income   3,069     2,433     6,257     4,550
               
Preferred Stock Dividends   -     -     -     211
               
Net Income Available to Common Shareholders $ 3,069   $ 2,433   $ 6,257   $ 4,339
Net Income Per Share of Common Stock              
Basic $ 0.36   $ 0.29   $ 0.74   $ 0.51
Diluted $ 0.36   $ 0.28   $ 0.72   $ 0.50
Cash Dividends Declared Per Share $ 0.05   $ 0.025   $ 0.10   $ 0.050
Weighted Average Basic Shares Outstanding   8,439,258     8,439,258     8,439,258     8,439,258
Weighted Average Diluted Shares Outstanding   8,612,352     8,630,207     8,634,865     8,632,465
               


FINANCIAL HIGHLIGHTS (UNAUDITED)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
                 
  QUARTER ENDED   YEAR-TO-DATE  
EARNINGS SUMMARY 6/30/2018   6/30/2017   6/30/2018   6/30/2017  
Net Interest Income $ 10,165   $ 9,816   $ 20,294   $ 19,278  
Provision for Loan Losses   46     -     70     335  
Non-interest Income   2,324     2,394     4,758     4,794  
Non-interest Expense   8,599     8,620     17,137     17,028  
Income Taxes   775     1,157     1,588     2,159  
Net Income   3,069     2,433     6,257     4,550  
Preferred Stock Dividend   -     -     -     211  
Net Income Available to                
Common Shareholders   3,069     2,433     6,257     4,339  
                 
                 
                 
  QUARTER ENDED   YEAR-TO-DATE  
PER COMMON SHARE SUMMARY 6/30/2018   6/30/2017   6/30/2018   6/30/2017  
Common Shares Outstanding   8,439,258     8,439,258     8,439,258     8,439,258  
Weighted Average Basic Shares   8,439,258     8,439,258     8,439,258     8,439,258  
Weighted Average Diluted Shares   8,612,352     8,630,207     8,634,865     8,632,465  
Earnings Per Basic Share (b) $0.36   $0.29   $0.74   $0.51  
Earnings Per Diluted Share (b) $0.36   $0.28   $0.72   $0.50  
Cash Dividends Declared Per Share $0.05   $0.025   $0.10   $0.050  
Common Book Value Per Share $10.46   $10.55   $10.46   $10.55  
Tangible Common Book Value Per Share $10.45   $10.54   $10.45   $10.54  
                 


  QUARTER ENDED   YEAR-TO-DATE
OPERATING RATIOS (1) 6/30/2018   6/30/2017   6/30/2018   6/30/2017
Net Interest Margin (a) 3.57%   3.49%   3.56%   3.42%
Return on Average Assets (b) 1.03%   0.81%   1.04%   0.72%
Return on Average Total Equity (b) 13.82%   11.10%   14.00%   9.56%
Efficiency (c) 69.39%   70.37%   68.63%   70.52%
               

(1) Annualized
(a) Computed using fully taxable-equivalent net income
(b) Computed using net income available to shareholders
(c) Computed by dividing non-interest expense by the sum of fully taxable-equivalent net interest income and non-interest income and excluding security gains/losses.

  QUARTER ENDED
ENDING BALANCES 6/30/2018   6/30/2017
Total Assets $ 1,204,472   $ 1,198,449
Loans, Net of Reserves   759,096     767,069
Allowance for Loan Losses   7,159     8,043
Intangible Assets   27     63
Deposits   1,035,886     1,026,538
Common Shareholders' Equity   88,246     88,992
Common Equity to Total Assets   7.33%     7.43%
Total Equity   88,246     88,992
Total Equity to Total Assets   7.33%     7.43%


    QUARTER ENDED     YEAR-TO-DATE  
AVERAGE BALANCES   6/30/2018     6/30/2017     6/30/2018     6/30/2017  
Total Assets   $ 1,193,274     $ 1,194,260     $ 1,199,069     $ 1,197,473  
Loans, Net of Reserves     760,260       756,116       757,089       748,205  
Deposits     1,027,850       1,026,729       1,034,500       1,030,043  
Common Shareholders' Equity     88,852       87,681       89,407       86,269  
Total Equity     88,852       87,681       89,407       90,819  
                 
    QUARTER ENDED     YEAR-TO-DATE  
ASSET QUALITY   6/30/2018     6/30/2017     6/30/2018     6/30/2017  
Nonperforming Loans   $ 5,632     $ 8,176     $ 5,632     $ 8,176  
Nonperforming Assets     9,227       12,701       9,227       12,701  
Substandard Assets     24,538       30,684       24,538       30,684  
Net Loan Chg-offs (Recoveries)     353       821       419       1,215  
Reserve for Loan Loss to Total Loans     0.93%       1.04%       0.93%       1.04%  
Reserve for Loan Loss to Non- performing Loans   127.11%       98.37%       127.11%       98.37%  
Reserve for Loan Loss to Non-performing Assets   77.59%       63.33%       77.59%       63.33%  
Net Loan Chg-offs (Recoveries)                
to Avg. Total Loans     0.05%       0.11%       0.05%       0.16%  
Nonperforming Loans to Total Loans     0.74%       1.05%       0.74%       1.05%  
Nonperforming Assets to Total Assets     0.77%       1.06%       0.77%       1.06%  
Nonperforming Assets to Total Loans                
And Other Real Estate     1.20%       1.63%       1.20%       1.63%  
Substandard Assets to Tier One Capital                
and Allowance for Loan Losses     17.58%       23.77%       17.58%       23.77%  
                 


Quarterly Comparative Data (in thousands, except per share data)      
           
  2Q2018   1Q2018   4Q2017   3Q2017   2Q2017  
Assets $ 1,204,472   $ 1,218,420   $ 1,232,755   $ 1,195,393   $ 1,198,449  
Loans   759,096     760,459     757,282     761,639     767,069  
Deposits   1,035,886     1,052,353     1,067,986     1,020,263     1,026,538  
Total Equity   88,246     89,966     90,323     91,602     88,992  
Net Income   3,069     3,188     579     2,622     2,433  
Net Income Available to          
Common Shareholders   3,069     3,188     579     2,622     2,433  
Net Income Per Basic Share   0.36     0.38     0.07     0.31     0.29  
           
Key Performance Ratios 2Q2018   1Q2018   4Q2017   3Q2017   2Q2017  
Return on Average Assets (1)   1.03%     1.06%     0.19%     0.88%     0.81%  
Return on Average Total Equity (1)   13.82%     14.17%     2.52%     11.57%     11.10%  
Total Equity to Total Assets   7.33%     7.38%     7.33%     7.66%     7.43%  
Net Interest Margin   3.57%     3.55%     3.50%     3.50%     3.49%  
           
(1) Computed using net income available to shareholders      

 

Contact: Terry L. Hester Chief Financial Officer (229) 426-6000 (Ext 6002)