FITZGERALD, Ga., April 21, 2016 (GLOBE NEWSWIRE) -- Colony Bankcorp, Inc. (Nasdaq:CBAN), today reported net income available to shareholders of $1,656,000, or $0.20 per diluted share for the first quarter of 2016 compared to $1,253,000, or $0.15 per diluted share for the comparable 2015 period. This increase of 32.16 percent in net income for the comparable three month period was primarily driven by an increase in net interest income and a reduction in preferred stock dividends. “In addition to marked improvement in earnings, we also had asset quality improvement as non-performing assets decreased to $21.73 million at March 31, 2016 which is a reduction of 18.83 percent from the comparable year ago period and 6.57 percent from the prior quarter end,” said Ed Loomis, President and Chief Executive Officer. “The past year our focus was to improve profitability and credit quality while deleveraging the company. We are committed to the same strategy in 2016; however given the improved financial condition of the company, we are also considering product and market expansion. To that end, during the quarter we completed construction of a new banking facility in Tifton while beginning construction of new facilities in Statesboro and Savannah. The new Tifton location resulted in closure of two leased offices in that market while two branch offices in Pitts and Chester were closed to improve operating efficiencies. We will again look for earnings improvement during 2016 with the redemption of additional shares of preferred stock.”
Capital
Colony continues to maintain a strong regulatory capital position to be categorized as “well-capitalized” by regulatory benchmarks. At March 31, 2016, the Company’s tier one leverage ratio, tier one ratio, total risk-based capital ratio and common equity tier one capital ratio were 10.70 percent, 15.92 percent, 17.13 percent and 10.63 percent, respectively, compared to 10.69 percent, 15.51 percent, 16.60 percent and 10.29 percent, respectively, at December 31, 2015. The Company’s capital ratios were all in excess of regulatory minimums required to be classified as “well-capitalized.”
Net Interest Margin
During the first quarter of 2016, the Company reported net interest income of $9.46 million and a net interest margin of 3.47 percent compared to $9.20 million and 3.43 percent, respectively, for first quarter 2015. Net interest margin improvement resulted in the Company posting an increase in net interest income of approximately $ 254 thousand in the comparable periods. The low interest rate environment continues to be challenging for the banking industry; however recent Federal Reserve action suggests a move toward a “tightening policy” that would increase interest rates and offer some relief to the banking industry. The global and U.S. economy will dictate the ability and timing of the Federal Reserve to accomplish their goal of an interest rate “tightening policy.”
Asset Quality
The Company continues to monitor our substandard and non-performing assets and focus on problem asset resolution. Substandard assets that include non-performing assets totaled $46.44 million at March 31, 2016 compared to $41.24 million and $40.52 million, respectively, at December 31, 2015 and March 31, 2015. Substandard assets adjusted for SBA guarantees to tier one capital plus loan loss reserve ratio was 34.60%, 31.36% and 29.93%, respectively, at March 31, 2016, December 31, 2015 and March 31, 2015. Non-performing assets decreased from the previous quarter end to $21.73 million or 2.85 percent of total loans and other real estate owned as of March 31, 2016. This compares to $23.26 million or 3.03 percent and $26.77 million or 3.50 percent, respectively, as of December 31, 2015 and March 31, 2015.
Other real estate (“OREO”) totaled $9.62 million at March 31, 2016 compared to $8.84 million and $11.98 million, respectively, at December 31, 2015 and March 31, 2015. Though these levels remain at an elevated level, we continue to work diligently to dispose these properties at fair value. 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 2016 net charge-offs (recoveries) were ($591) thousand, or (0.08) percent of average loans as compared to net charge-offs of $788 thousand, or 0.11 percent of average loans in first quarter 2015. The loan loss reserve was $9.55 million or 1.27 percent of total loans on March 31, 2016 compared to $8.60 million or 1.13 percent and $8.38 million or 1.11 percent, respectively, at December 31, 2015 and March 31, 2015. Loan loss reserve methodology resulted in three months ended March 31, 2016 provision for loan losses of $354 thousand compared to $362 thousand for the comparable 2015 period.
Noninterest Income
Total noninterest income declined modestly in the comparable periods as noninterest income for three months ended March 31, 2016 was $2.17 million compared to $2.21 million in the comparable 2015 period, or a decrease of 1.81 percent. Service charge income on deposits increased $15 thousand or 1.52 percent while all other noninterest income categories decreased $55 thousand or 4.49 percent.
Noninterest Expense
Total noninterest expense decreased in the comparable periods as noninterest expense for three months ended March 31, 2016 was $8.24 million compared to $8.29 million for the comparable 2015 period, or a decrease of 0.62 percent. Salaries and employee benefit expenses remained flat for the comparable periods. Occupancy expense decreased 2.92 percent. The efficiency ratio improved to 70.65 percent for three months ended March 31, 2016 compared to 72.45 percent for the comparable 2015 period, or a decrease of 2.48 percent. The company continues to explore opportunities to further 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, 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) | |||||||||||||||||
| Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | |||||||||||||||
| (unaudited) | (audited) | (unaudited) | |||||||||||||||
| ASSETS | |||||||||||||||||
| Cash and Cash Equivalents | |||||||||||||||||
| Cash and Due from Banks | $ | 16,070 | $ | 22,257 | $ | 20,407 | |||||||||||
| Interest-Bearing Deposits | 32,842 | 38,615 | 42,312 | ||||||||||||||
| Investment Securities | |||||||||||||||||
| Available for Sale, at Fair Value | 308,840 | 296,149 | 279,139 | ||||||||||||||
| Held for Maturity, at Cost( Fair Value | |||||||||||||||||
| of $31 as of Mar. 31, 2015) | - | - | 31 | ||||||||||||||
| 308,840 | 296,149 | 279,170 | |||||||||||||||
| Federal Home Loan Bank Stock, at Cost | 2,755 | 2,731 | 2,731 | ||||||||||||||
| Loans | 754,261 | 758,636 | 753,634 | ||||||||||||||
| Allowance for Loan Losses | (9,549 | ) | (8,604 | ) | (8,377 | ) | |||||||||||
| Unearned Interest and Fees | (356 | ) | (357 | ) | (391 | ) | |||||||||||
| 744,356 | 749,675 | 744,866 | |||||||||||||||
| Premises and Equipment | 27,019 | 26,454 | 24,745 | ||||||||||||||
| Other Real Estate | 9,618 | 8,839 | 11,979 | ||||||||||||||
| Other Intangible Assets | 107 | 116 | 143 | ||||||||||||||
| Other Assets | 26,782 | 29,313 | 30,358 | ||||||||||||||
| Total Assets | $ | 1,168,389 | $ | 1,174,149 | $ | 1,156,711 | |||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||
| Deposits | |||||||||||||||||
| Noninterest-Bearing | $ | 135,351 | $ | 133,886 | $ | 128,584 | |||||||||||
| Interest-Bearing | 864,692 | 877,668 | 857,272 | ||||||||||||||
| 1,000,043 | 1,011,554 | 985,856 | |||||||||||||||
| 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 | 3,574 | 2,909 | 4,263 | ||||||||||||||
| Stockholders' Equity | |||||||||||||||||
| Preferred Stock, Stated Value $1,000 a Share; | |||||||||||||||||
| Authorized 10,000,000 Shares, Issued 18,021 Shares | |||||||||||||||||
| as of Mar. 31, 2016 and Dec. 31, 2015 and | |||||||||||||||||
| 28,000 as of Mar. 31, 2015, Respectively | 18,021 | 18,021 | 28,000 | ||||||||||||||
| Common Stock, Par Value $1 a share; Authorized | |||||||||||||||||
| 20,000,000 Shares, Issued 8,439,258 Shares as of | |||||||||||||||||
| Mar. 31, 2016, Dec. 31, 2015 and Mar. 31, 2015, | |||||||||||||||||
| Respectively | 8,439 | 8,439 | 8,439 | ||||||||||||||
| Paid in Capital | 29,145 | 29,145 | 29,145 | ||||||||||||||
| Retained Earnings | 45,941 | 44,286 | 39,542 | ||||||||||||||
| Accumulated Other Comprehensive Loss, Net of Tax | (1,003 | ) | (4,434 | ) | (2,763 | ) | |||||||||||
| 100,543 | 95,457 | 102,363 | |||||||||||||||
| Total Liabilities and Stockholders' Equity | $ | 1,168,389 | $ | 1,174,149 | $ | 1,156,711 | |||||||||||
| Consolidated Statements of Income Colony Bankcorp, Inc. | |||||||||||||||||
| (in thousands except per share data) | |||||||||||||||||
| Quarter | Year-to-Date | ||||||||||||||||
| Three Months Ended | Three Months Ended | ||||||||||||||||
| 3/31/2016 | 3/31/2015 | 3/31/2016 | 3/31/2015 | ||||||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||||||
| Interest Income | |||||||||||||||||
| Loans, Including Fees | $ | 9,632 | $ | 9,709 | $ | 9,632 | $ | 9,709 | |||||||||
| Fedral Funds Sold | - | 15 | - | 15 | |||||||||||||
| Deposits with Other Banks | 38 | 17 | 38 | 17 | |||||||||||||
| Investment Securities | |||||||||||||||||
| U. S. Government Agencies | 1,353 | 1,070 | 1,353 | 1,070 | |||||||||||||
| State, County and Municipal | 34 | 25 | 34 | 25 | |||||||||||||
| Dividends on Other Investments | 32 | 30 | 32 | 30 | |||||||||||||
| 11,089 | 10,866 | 11,089 | 10,866 | ||||||||||||||
| Interest Expense | |||||||||||||||||
| Deposits | 1,204 | 1,219 | 1,204 | 1,219 | |||||||||||||
| Borrowed Money | 429 | 445 | 429 | 445 | |||||||||||||
| 1,633 | 1,664 | 1,633 | 1,664 | ||||||||||||||
| Net Interest Income | 9,456 | 9,202 | 9,456 | 9,202 | |||||||||||||
| Provision for Loan Losses | 354 | 362 | 354 | 362 | |||||||||||||
| Net Interest Income After Provision for Loan Losses | 9,102 | 8,840 | 9,102 | 8,840 | |||||||||||||
| Noninterest Income | |||||||||||||||||
| Service Charges on Deposits | 1,002 | 987 | 1,002 | 987 | |||||||||||||
| Other Service Charges, Commissions and Fees | 629 | 662 | 629 | 662 | |||||||||||||
| Mortgage Fee Income | 100 | 113 | 100 | 113 | |||||||||||||
| Securities Gains (Losses) | 2 | 3 | 2 | 3 | |||||||||||||
| Other | 439 | 447 | 439 | 447 | |||||||||||||
| 2,172 | 2,212 | 2,172 | 2,212 | ||||||||||||||
| Noninterest Expense | |||||||||||||||||
| Salaries and Employee Benefits | 4,474 | 4,468 | 4,474 | 4,468 | |||||||||||||
| Occupancy and Equipment | 964 | 993 | 964 | 993 | |||||||||||||
| Other | 2,797 | 2,825 | 2,797 | 2,825 | |||||||||||||
| 8,235 | 8,286 | 8,235 | 8,286 | ||||||||||||||
| Income Before Income Taxes | 3,039 | 2,766 | 3,039 | 2,766 | |||||||||||||
| Income Taxes | 978 | 883 | 978 | 883 | |||||||||||||
| Net Income | 2,061 | 1,883 | 2,061 | 1,883 | |||||||||||||
| Preferred Stock Dividends | 405 | 630 | 405 | 630 | |||||||||||||
| Net Income Available to Common Shareholders | $ | 1,656 | $ | 1,253 | $ | 1,656 | $ | 1,253 | |||||||||
| Net Income Per Share of Common Stock | |||||||||||||||||
| Basic | $ | 0.20 | $ | 0.15 | $ | 0.20 | $ | 0.15 | |||||||||
| Diluted | $ | 0.20 | $ | 0.15 | $ | 0.20 | $ | 0.15 | |||||||||
| Weighted Average Basic Shares Outstanding | 8,439,258 | 8,439,258 | 8,439,258 | 8,439,258 | |||||||||||||
| Weighted Average Diluted Shares Outstanding | 8,483,727 | 8,439,258 | 8,483,727 | 8,439,258 | |||||||||||||
| COLONY BANKCORP, INC | |||||||||||||||||
| FINANCIAL HIGHLIGHTS (UNAUDITED) | |||||||||||||||||
| DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA | |||||||||||||||||
| QUARTER ENDED | YEAR-TO-DATE | ||||||||||||||||
| EARNINGS SUMMARY | 3/31/2016 | 3/31/2015 | 3/31/2016 | 3/31/2015 | |||||||||||||
| Net interest income | $ | 9,456 | $ | 9,202 | $ | 9,456 | $ | 9,202 | |||||||||
| Provision for Loan Losses | 354 | 362 | 354 | 362 | |||||||||||||
| Non-interest Income | 2,172 | 2,212 | 2,172 | 2,212 | |||||||||||||
| Non-interest Expense | 8,235 | 8,286 | 8,235 | 8,286 | |||||||||||||
| Income Taxes | 978 | 883 | 978 | 883 | |||||||||||||
| Net Income | 2,061 | 1,883 | 2,061 | 1,883 | |||||||||||||
| Preferred Stock Dividend | 405 | 630 | 405 | 630 | |||||||||||||
| Net Income Available to | |||||||||||||||||
| Common Shareholders | 1,656 | 1,253 | 1,656 | 1,253 | |||||||||||||
| QUARTER ENDED | YEAR-TO-DATE | ||||||||||||||||
| PER COMMON SHARE SUMMARY | 3/31/2016 | 3/31/2015 | 3/31/2016 | 3/31/2015 | |||||||||||||
| 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 Dilited Shares | 8,483,727 | 8,439,258 | 8,483,727 | 8,439,258 | |||||||||||||
| Earnings Per Basic Share (b) | $ | 0.20 | $ | 0.15 | $ | 0.20 | $ | 0.15 | |||||||||
| Earnings Per Dilited Share (b) | $ | 0.20 | $ | 0.15 | $ | 0.20 | $ | 0.15 | |||||||||
| Common Book Value Per Share | $ | 9.78 | $ | 8.81 | $ | 9.78 | $ | 8.81 | |||||||||
| Tangible Common Book Value Per Share | $ | 9.77 | $ | 8.79 | $ | 9.77 | $ | 8.79 | |||||||||
| QUARTER ENDED | YEAR-TO-DATE | ||||||||||||||||
| OPERATING RATIOS (1) | 3/31/2016 | 3/31/2015 | 3/31/2016 | 3/31/2015 | |||||||||||||
| Net Interest Margin (a) | 3.47 | % | 3.43 | % | 3.47 | % | 3.43 | % | |||||||||
| Return on Average Assets (b) | 0.57 | % | 0.44 | % | 0.57 | % | 0.44 | % | |||||||||
| Return on Average Total Equity (b) | 6.75 | % | 4.98 | % | 6.75 | % | 4.98 | % | |||||||||
| Efficiency (c) | 70.65 | % | 72.45 | % | 70.65 | % | 72.45 | % | |||||||||
| (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 | 3/31/2016 | 3/31/2015 | |||||||||||||||
| Total Assets | $ | 1,168,389 | $ | 1,156,711 | |||||||||||||
| Loans, Net of Reserves | 744,356 | 744,866 | |||||||||||||||
| Allowance for Loan Losses | 9,549 | 8,377 | |||||||||||||||
| Intangible Assets | 107 | 143 | |||||||||||||||
| Deposits | 1,000,043 | 985,856 | |||||||||||||||
| Common Shareholders' Equity | 82,522 | 74,363 | |||||||||||||||
| Common Equity to Total Assets | 7.06 | % | 6.43 | % | |||||||||||||
| Total Equity | 100,543 | 102,363 | |||||||||||||||
| Total Equity to Total Assets | 8.61 | % | 8.85 | % | |||||||||||||
| QUARTER ENDED | YEAR-TO-DATE | ||||||||||||||||
| AVERAGE BALANCES | 3/31/2016 | 3/31/2015 | 3/31/2016 | 3/31/2015 | |||||||||||||
| Total Assets | $ | 1,165,286 | $ | 1,150,662 | $ | 1,165,286 | $ | 1,150,662 | |||||||||
| Loans, Net of Reserves | 743,237 | 743,457 | 743,237 | 743,457 | |||||||||||||
| Deposits | 999,335 | 979,141 | 999,335 | 979,141 | |||||||||||||
| Common Shareholders' Equity | 80,175 | 72,627 | 80,175 | 72,627 | |||||||||||||
| Total Equity | 98,196 | 100,627 | 98,196 | 100,627 | |||||||||||||
| QUARTER ENDED | YEAR-TO-DATE | ||||||||||||||||
| ASSET QUALITY | 3/31/2016 | 3/31/2015 | 3/31/2016 | 3/31/2015 | |||||||||||||
| Nonperforming Loans | $ | 12,109 | $ | 14,787 | $ | 12,109 | $ | 14,787 | |||||||||
| Nonperforming Assets | 21,728 | 26,766 | 21,728 | 26,766 | |||||||||||||
| Substandard Assets | 46,444 | 40,524 | 46,444 | 40,524 | |||||||||||||
| Net Loan Chg-offs (Recoveries) | (591 | ) | 788 | (591 | ) | 788 | |||||||||||
| Reserve for Loan Loss to Total Loans | 1.27 | % | 1.11 | % | 1.27 | % | 1.11 | % | |||||||||
| Reserve for Loan Loss to Non- performing Loans | 78.86 | % | 56.65 | % | 78.86 | % | 56.65 | % | |||||||||
| Reserve for Loan Loss to Non-performing Assets | 43.95 | % | 31.30 | % | 43.95 | % | 31.30 | % | |||||||||
| Net Loan Chg-offs (Recoveries) | |||||||||||||||||
| to Avg. Total Loans | (0.08 | )% | 0.11 | % | (0.08 | )% | 0.11 | % | |||||||||
| Nonperforming Loans to Total Loans | 1.61 | % | 1.96 | % | 1.61 | % | 1.96 | % | |||||||||
| Nonperforming Assets to Total Assets | 1.86 | % | 2.31 | % | 1.86 | % | 2.31 | % | |||||||||
| Nonperforming Assets to Total Loans | |||||||||||||||||
| And Other Real Estate | 2.85 | % | 3.50 | % | 2.85 | % | 3.50 | % | |||||||||
| Substandard Assets to Tier One Capital | |||||||||||||||||
| and Allowance for Loan Losses | 34.60 | % | 29.93 | % | 34.60 | % | 29.93 | % | |||||||||
| Quarterly Comparative Data (in thousands, except per share data) | |||||||||||||||||||
| 1Q2016 | 4Q2015 | 3Q2015 | 2Q2015 | 1Q2015 | |||||||||||||||
| Assets | $ | 1,168,389 | $ | 1,174,149 | $ | 1,127,320 | $ | 1,139,050 | $ | 1,156,711 | |||||||||
| Loans | 744,356 | 749,675 | 755,447 | 751,210 | 744,866 | ||||||||||||||
| Deposits | 1,000,043 | 1,011,554 | 958,034 | 968,634 | 985,856 | ||||||||||||||
| Common Shareholders’ Equity | 82,522 | 77,436 | 77,907 | 74,658 | 74,363 | ||||||||||||||
| Total Equity | 100,543 | 95,457 | 101,074 | 102,658 | 102,363 | ||||||||||||||
| Net Income | 2,061 | 2,105 | 2,200 | 2,185 | 1,883 | ||||||||||||||
| Net Income Available to | |||||||||||||||||||
| Common Shareholders | 1,656 | 1,584 | 1,606 | 1,555 | 1,253 | ||||||||||||||
| Net Income Per Share | 0.20 | 0.19 | 0.19 | 0.18 | 0.15 | ||||||||||||||
| Return on Average Assets (1) | 0.57 | % | 0.55 | % | 0.57 | % | 0.54 | % | 0.44 | % | |||||||||
| Return on Average Total Equity (1) | 6.75 | % | 6.26 | % | 6.28 | % | 6.05 | % | 4.98 | % | |||||||||
| Common Equity to Total Assets | 7.06 | % | 6.60 | % | 6.91 | % | 6.55 | % | 6.43 | % | |||||||||
| Total Equity to Total Assets | 8.61 | % | 8.13 | % | 8.97 | % | 9.01 | % | 8.85 | % | |||||||||
| Net Interest Margin | 3.47 | % | 3.63 | % | 3.58 | % | 3.44 | % | 3.43 | % | |||||||||
| (1) Computed using net income available to shareholders | |||||||||||||||||||