FITZGERALD, Ga., April 17, 2014 (GLOBE NEWSWIRE) -- Colony Bankcorp, Inc. (Nasdaq:CBAN), today reported net income available to shareholders of $814,000, or $0.10 per diluted share for the first quarter of 2014 compared to $567,000, or $0.07 per diluted share for the comparable 2013 period. This increase of 43.56 percent in net income was primarily driven by an increase in net interest income and a reduction in provision for loan losses. "We are pleased to report first quarter operating results that reflect significant improvement in core earnings and strong regulatory capital. While loan demand is still less than robust, we continue to see signs of economic recovery that should result in loan activity picking up. While our substandard assets to tier one capital plus loan loss allowance ratio remained relatively flat this quarter, we have several transactions that should settle during second quarter to further reduce our problem assets," said Ed Loomis, President and Chief Executive Officer. "Efforts to reduce our problem assets and increase our outstanding loan balances will reinforce our balance sheet and further position our company for prolonged success."
Capital
Colony continues to maintain a solid capital position to be categorized as "well-capitalized" by regulatory benchmarks. At March 31, 2014, the Company's tier one leverage ratio, tier one and total risk-based capital ratios were 10.62 percent, 16.09 percent and 17.34 percent, respectively, compared to the previous quarter end of 10.57 percent, 15.81 percent and 17.06 percent, respectively, at December 31, 2013 and to 10.18 percent, 15.60 percent and 16.86 percent, respectively, at March 31, 2013. Regulatory benchmarks to be categorized as "well-capitalized" for tier one leverage ratio, tier one and total risk-based capital ratios are 5.00 percent, 6.00 percent and 10.00 percent, respectively.
Net Interest Margin
During the first quarter of 2014, the Company reported net interest income of $9.19 million and a net interest margin of 3.47 percent, compared to $9.05 million and 3.45 percent, respectively, for first quarter 2013. While challenging in this low interest rate environment to maintain net interest margin, the company continues to focus on maximizing its net interest margin through deposit and loan pricing guidance and balance sheet restructuring.
Asset Quality
The Company continues to closely monitor our substandard and non-performing assets and focus on problem asset resolution. Substandard assets that include non-performing assets totaled $54.12 million at March 31, 2014 compared to $53.41 million and $61.91 million, respectively, at December 31, 2013 and March 31, 2013. Substandard assets adjusted for SBA guarantees to tier one capital plus loan loss reserve ratio was 38.40%, 38.18% and 45.85%, respectively, at March 31, 2014, December 31, 2013 and March 31, 2013. Non-performing assets decreased slightly from the previous quarter end to $39.16 million or 5.21 percent of total loans and other real estate owned as of March 31, 2014. This compares to $39.61 million or 5.17 percent and $39.58 million or 5.24 percent, respectively, as of December 31, 2013 and March 31, 2013. Loan loss reserve methodology resulted in three months ended March 31, 2014 provision for loan losses of $0.33 million compared to $1.50 million for the comparable 2013 period. With continued stabilization in the economy, we expect continued improvement in our substandard assets.
Other real estate ("OREO") totaled $14.23 million at March 31, 2014 compared to $15.50 million and $18.77 million, respectively, at December 31, 2013 and March 31, 2013. During the quarter three auctions were held to liquidate OREO properties. Colony has established a target of twelve months to liquidate improved properties due to the high carrying cost of taxes, insurance, maintenance and repairs associated with holding these properties on our books.
In the first quarter of 2014 net charge-offs were $0.42 million, or 0.06 percent of average loans as compared to net charge-offs of $1.31 million, or 0.18 percent of average loans in first quarter 2013. The loan loss reserve was $11.71 million on March 31, 2014, or 1.59 percent of total loans compared to $11.81 million, or 1.57 percent on December 31, 2013 and to $12.95 million, or 1.76 percent on March 31, 2013. Management believes that the 2014 contributions to Allowance for Loan Losses address the level of non-performing assets and the related level of substandard assets to be adequately reserved at March 31, 2014.
Noninterest Income
Total noninterest income decreased in the comparable periods as noninterest income for three months ended March 31, 2014 was $2.06 million compared to $2.22 million in the comparable 2013 period, or a decrease of 7.03 percent. Service charge fee income on deposit accounts decreased $34 thousand, or 3.09 percent. Mortgage fee income decreased $52 thousand, or 43.70 percent and gains on the sale of SBA/USDA loans decreased $352 thousand, or 100.00 percent. Offsetting these decreases was debit card interchange fees and ATM fees that increased $154 thousand, or 39.11 percent. The company continues to explore revenue enhancement products and services to improve fee income.
Noninterest Expense
Total noninterest expense increased to $8.87 million in three months ended March 31, 2014 compared to $8.4 million in the comparable 2013 period, or an increase of 5.55%. Credit-related expenses continue to be a strain on earnings as write down and losses on OREO property and repossessed assets along with repossession and foreclosure expenses totaled $955 thousand in three months ended March 31, 2014 compared to $700 thousand in the comparable 2013 period. Salaries and employee benefit expenses increased to $4.41 million in three months ended March 31, 2014 compared to $4.17 million in the comparable 2013 period, or an increase of 5.83 percent. Occupancy expenses increased to $1.02 million in the three month period ended March 31, 2014 compared to $0.93 million in the comparable 2013 period, or an increase of 9.32 percent. Other noninterest expense increased to $3.43 million compared to $3.29 million, or an increase of 4.38 percent.
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-nine offices located in the central, southern and coastal Georgia cities of Albany, Ashburn, Broxton, Centerville, Chester, Columbus, Cordele, Douglas, Eastman, Fitzgerald, Leesburg, Moultrie, Pitts, Quitman, Rochelle, Savannah, Soperton, 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.
| COLONY BANKCORP, INC. | ||||
| FINANCIAL HIGHLIGHTS (UNAUDITED) | ||||
| DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA | ||||
| QUARTER ENDED | YEAR-TO-DATE | |||
| EARNINGS SUMMARY | 03/31/2014 | 03/31/2013 | 03/31/2014 | 03/31/2013 |
| Net Interest Income | $9,194 | $9,046 | $9,194 | $9,046 |
| Provision for Loan Losses | 327 | 1,500 | 327 | 1,500 |
| Non-interest Income | 2,062 | 2,218 | 2,062 | 2,218 |
| Non-interest Expense | 8,866 | 8,400 | 8,866 | 8,400 |
| Income Taxes | 606 | 427 | 606 | 427 |
| Net Income | 1,457 | 937 | 1,457 | 937 |
| Preferred Stock Dividend | 643 | 370 | 643 | 370 |
| Net Income Available to Common Shareholders | 814 | 567 | 814 | 567 |
| QUARTER ENDED | YEAR-TO-DATE | |||
| PER COMMON SHARE SUMMARY | 03/31/2014 | 03/31/2013 | 03/31/2014 | 03/31/2013 |
| 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 | 8,439,258 | 8,439,258 | 8,439,258 | 8,439,258 |
| Earnings Per Basic Share (b) | $0.10 | $0.07 | $0.10 | $0.07 |
| Earnings Per Diluted Share (b) | $0.10 | $0.07 | $0.10 | $0.07 |
| Common Book Value Per Share | $7.62 | $8.01 | $7.62 | $8.01 |
| Tangible Common Book Value Per Share | $7.60 | $7.98 | $7.60 | $7.98 |
| QUARTER ENDED | YEAR-TO-DATE | |||
| OPERATING RATIOS (1) | 03/31/2014 | 03/31/2013 | 03/31/2014 | 03/31/2013 |
| Net Interest Margin (a) | 3.47% | 3.45% | 3.47% | 3.45% |
| Return on Average Assets (b) | 0.29% | 0.20% | 0.29% | 0.20% |
| Return on Average Total Equity (b) | 3.55% | 2.37% | 3.55% | 2.37% |
| Efficiency (c) | 78.56% | 74.24% | 78.56% | 74.24% |
| (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 | 03/31/2014 | 03/31/2013 | ||
| Total Assets | $1,141,836 | $1,118,865 | ||
| Loans, Net of Reserves | 726,125 | 723,651 | ||
| Allowance for Loan Losses | 11,710 | 12,930 | ||
| Intangible Assets | 179 | 215 | ||
| Deposits | 976,854 | 953,575 | ||
| Common Shareholders' Equity | 64,348 | 67,567 | ||
| Common Equity to Total Assets | 5.64% | 6.04% | ||
| Total Equity | 92,348 | 95,437 | ||
| Total Equity to Total Assets | 8.09% | 8.53% | ||
| QUARTER ENDED | YEAR-TO-DATE | |||
| AVERAGE BALANCES | 03/31/2014 | 03/31/2013 | 03/31/2014 | 03/31/2013 |
| Total Assets | $1,133,529 | $1,124,406 | $1,133,529 | $1,124,406 |
| Loans, Net of Reserves | 728,640 | 723,605 | 728,640 | 723,605 |
| Deposits | 969,439 | 964,807 | 969,439 | 964,807 |
| Common Shareholders' Equity | 63,661 | 67,734 | 63,661 | 67,734 |
| Total Equity | 91,661 | 95,580 | 91,661 | 95,580 |
| QUARTER ENDED | YEAR-TO-DATE | |||
| ASSET QUALITY | 03/31/2014 | 03/31/2013 | 03/31/2014 | 03/31/2013 |
| Nonperforming Loans | $24,935 | $20,439 | $24,935 | $20,439 |
| Nonperforming Assets | 39,162 | 39,577 | 39,162 | 39,577 |
| Substandard Assets | 54,124 | 61,912 | 54,124 | 61,912 |
| Net Loan Chg-offs (Recoveries) | 423 | 1,307 | 423 | 1,307 |
| Reserve for Loan Loss to Total Loans | 1.59% | 1.76% | 1.59% | 1.76% |
| Reserve for Loan Loss to Non- performing Loans | 46.96% | 63.26% | 46.96% | 63.26% |
| Reserve for Loan Loss to Non-performing Assets | 29.90% | 32.67% | 29.90% | 32.67% |
| Net Loan Chg-offs (Recoveries) to Avg. Total Loans | 0.06% | 0.18% | 0.06% | 0.18% |
| Nonperforming Loans to Total Loans | 3.38% | 2.77% | 3.38% | 2.77% |
| Nonperforming Assets to Total Assets | 3.43% | 3.54% | 3.43% | 3.54% |
| Nonperforming Assets to Total Loans And Other Real Estate | 5.21% | 5.24% | 5.21% | 5.24% |
| Substandard Assets to Tier One Capital and Allowance for Loan Losses | 38.40% | 45.85% | 38.40% | 45.85% |
| Quarterly Comparative Data (in thousands, except per share data) | |||||
| 1Q2014 | 4Q2013 | 3Q2013 | 2Q2013 | 1Q2013 | |
| Assets | $1,141,836 | $1,148,551 | $1,113,141 | $1,106,454 | $1,118,865 |
| Loans | 726,125 | 739,052 | 734,792 | 730,920 | 723,651 |
| Deposits | 976,854 | 987,529 | 949,463 | 943,337 | 953,575 |
| Common Shareholders' Equity | 64,348 | 61,954 | 62,859 | 63,828 | 67,567 |
| Total Equity | 92,348 | 89,954 | 90,815 | 91,740 | 95,437 |
| Net Income | 1,457 | 1,626 | 1,080 | 986 | 937 |
| Net Income Available to Common Shareholders | 814 | 1,241 | 701 | 611 | 567 |
| Net Income Per Share | 0.10 | 0.15 | 0.08 | 0.07 | 0.07 |
| Key Performance Ratios | 1Q2014 | 4Q2013 | 3Q2013 | 2Q2013 | 1Q2013 |
| Return on Average Assets (1) | 0.29% | 0.44% | 0.25% | 0.22% | 0.20% |
| Return on Average Total Equity (1) | 3.55% | 5.43% | 3.09% | 2.56% | 2.37% |
| Common Equity to Total Assets | 5.64% | 5.38% | 5.65% | 5.77% | 6.04% |
| Total Equity to Total Assets | 8.09% | 7.81% | 8.16% | 8.29% | 8.53% |
| Net Interest Margin | 3.47% | 3.68% | 3.67% | 3.64% | 3.45% |
| (1) Computed using net income available to shareholders | |||||
| Consolidated Balance Sheets Colony Bankcorp, Inc. | |||
| (in thousands) | |||
| Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | |
| (unaudited) | (audited) | (unaudited) | |
| ASSETS | |||
| Cash and Cash Equivalents | |||
| Cash and Due from Banks | $20,592 | $25,692 | $18,608 |
| Federal Funds Sold | 18,183 | 20,495 | 10,966 |
| 38,775 | 46,187 | 29,574 | |
| Interest-Bearing Deposits | 22,401 | 21,960 | 8,706 |
| Investment Securities | |||
| Available for Sale, at Fair Value | 278,957 | 263,258 | 288,249 |
| Held for Maturity, at Cost (Fair Value of $38, $37 and $43 as of Mar. 31, 2014, Dec. 31, 2013, and Mar. 31, 2013, Respectively) | 38 | 37 | 43 |
| 278,995 | 263,295 | 288,292 | |
| Federal Home Loan Bank Stock, at Cost | 2,831 | 3,164 | 3,164 |
| Loans | 738,194 | 751,218 | 736,820 |
| Allowance for Loan Losses | (11,710) | (11,806) | (12,930) |
| Unearned Interest and Fees | (359) | (360) | (239) |
| 726,125 | 739,052 | 723,651 | |
| Premises and Equipment | 24,637 | 24,876 | 25,071 |
| Other Real Estate | 14,227 | 15,502 | 18,771 |
| Other Intangible Assets | 179 | 188 | 215 |
| Other Assets | 33,666 | 34,327 | 21,421 |
| Total Assets | $1,141,836 | $1,148,551 | $1,118,865 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||
| Deposits | |||
| Noninterest-Bearing | $119,984 | $115,261 | $121,921 |
| Interest-Bearing | 856,870 | 872,269 | 831,654 |
| 976,854 | 987,530 | 953,575 | |
| Borrowed Money | |||
| Subordinated Debentures | 24,229 | 24,229 | 24,229 |
| Other Borrowed Money | 40,000 | 40,000 | 40,000 |
| 64,229 | 64,229 | 64,229 | |
| Other Liabilities | 8,405 | 6,838 | 5,624 |
| Stockholders' Equity | |||
| Preferred Stock, Stated Value $1,000 a Share; Authorized 10,000,000 Shares, Issued 28,000 Shares | 28,000 | 28,000 | 27,870 |
| Common Stock, Par Value $1 a share; Authorized 20,000,000 Shares, Issued 8,439,258 Shares as of Mar. 31, 2014, Dec. 31, 2013 and Mar. 31, 2013, Respectively | 8,439 | 8,439 | 8,439 |
| Paid in Capital | 29,145 | 29,145 | 29,145 |
| Retained Earnings | 34,259 | 33,445 | 31,022 |
| Accumulated Other Comprehensive Loss, Net of Tax | (7,495) | (9,075) | (1,039) |
| 92,348 | 89,954 | 95,437 | |
| Total Liabilities and Stockholders' Equity | $1,141,836 | $1,148,551 | $1,118,865 |
| Consolidated Statements of Income Colony Bankcorp, Inc. | ||||
| (in thousands except per share data) | ||||
| Quarter | Year-to-Date | |||
| Three Months Ended | Three Months Ended | |||
| 03/31/2014 | 03/31/2013 | 03/31/2014 | 03/31/2013 | |
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |
| Interest Income | ||||
| Loans, Including Fees | $9,689 | $10,361 | $9,689 | $10,361 |
| Federal Funds Sold | 9 | 14 | 9 | 14 |
| Deposits with Other Bank | 13 | 11 | 13 | 11 |
| Investment Securities | ||||
| U. S. Government Agencies | 1,184 | 712 | 1,184 | 712 |
| State, County and Municipal | 28 | 33 | 28 | 33 |
| Corporate Obligations/Asset-Backed Sec. | -- | 14 | -- | 14 |
| Dividends on Other Investments | 30 | 19 | 30 | 19 |
| 10,953 | 11,164 | 10,953 | 11.164 | |
| Interest Expense | ||||
| Deposits | 1,321 | 1,686 | 1,321 | 1,686 |
| Borrowed Money | 438 | 432 | 438 | 432 |
| 1,759 | 2,118 | 1,739 | 2,118 | |
| Net Interest Income | 9,194 | 9,046 | 9,194 | 9,046 |
| Provision for Loan Losses | 327 | 1,500 | 327 | 1,500 |
| Net Interest Income After Provision for Loan Losses | 8,867 | 7,546 | 8,867 | 7,546 |
| Noninterest Income | ||||
| Service Charges on Deposits | 1,067 | 1,101 | 1,067 | 1,101 |
| Other Service Charges, Commissions and Fees | 581 | 404 | 581 | 404 |
| Mortgage Fee Income | 67 | 119 | 67 | 119 |
| Other | 347 | 594 | 347 | 594 |
| 2,062 | 2,218 | 2,062 | 2,218 | |
| Noninterest Expense | ||||
| Salaries and Employee Benefits | 4,412 | 4,169 | 4,412 | 4,169 |
| Occupancy and Equipment | 1,020 | 933 | 1,020 | 933 |
| Securities Losses | -- | 8 | -- | 8 |
| Other | 3,434 | 3,290 | 3,434 | 3,290 |
| 8,866 | 8,400 | 8,866 | 8,400 | |
| Income Before Income Taxes | 2,063 | 1,364 | 2,063 | 1,364 |
| Income Taxes | 606 | 427 | 606 | 427 |
| Net Income | 1,457 | 937 | 1,457 | 937 |
| Preferred Stock Dividends | 643 | 370 | 643 | 370 |
| Net Income Available to Common Shareholders | $814 | $567 | $814 | $567 |
| Net Income Per Share of Common Stock | ||||
| Basic | $0.10 | $0.07 | $0.10 | $0.07 |
| Diluted | $0.10 | $0.07 | $0.10 | $0.07 |
| Weighted Average Basic Shares Outstanding | 8,439,258 | 8,439,258 | 8,439,258 | 8,439,258 |
| Weighted Average Diluted Shares Outstanding | 8,439,258 | 8,439,258 | 8,439,258 | 8,439,258 |