FITZGERALD, Ga., Jan. 19, 2017 (GLOBE NEWSWIRE) -- Colony Bankcorp, Inc. (Nasdaq:CBAN), today reported net income available to shareholders of $1,883,000, or $0.22 per diluted share for the fourth quarter of 2016 compared to $1,584,000, or $0.19 per diluted share for the comparable 2015 period, while net income available to shareholders for the twelve month period ended December 31, 2016 was $7,180,000, or $0.84 per diluted share compared to $5,998,000, or $0.71 per share for the comparable 2015 period. This increase of 19.71 percent in net income for the comparable twelve month periods was primarily driven by an increase in net interest income and a reduction in preferred stock dividends. “In addition to earnings improvement, we also redeemed $5,000,000 of preferred stock during the quarter that on an annual basis reduces our annual dividend payment by $450,000. This reduces our current outstanding preferred stock to $9,360,000. Also of significance during 2016 was the reduction in non-performing assets of $4.47 million. Our current non-performing assets total $18.79 million at December 31, 2016, down 19.20 percent from a year ago,” said Ed Loomis, President and Chief Executive Officer. “We are pleased to report our 2016 results that reflect continued earnings and asset quality improvement. As we look to 2017, we believe we are positioned for continued improvement, which in turn will enhance shareholder value.”
Capital
Colony continues to maintain a strong regulatory capital position to be categorized as “well-capitalized” by regulatory benchmarks. At December 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 10.29 percent, 15.50 percent, 16.64 percent and 11.32 percent, respectively, compared to 10.69 percent, 15.51 percent, 16.6 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 fourth quarter of 2016, the Company reported net interest income of $9.57 million and a net interest margin of 3.48 percent compared to $9.76 million and 3.63 percent, respectively, for fourth quarter 2015, while net interest income for twelve months ended December 31, 2016 was $38.11 million and a net interest margin of 3.51 percent compared to $37.71 million and 3.52 percent, respectively, for the comparable 2015 period. While we have been in a historical low interest rate environment for some time, recent Federal Reserve discussion suggests a move toward a “tightening” interest rate policy that would enhance our net interest margin for 2017.
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 $33.23 million at December 31, 2016 compared to $41.49 million and $41.24 million, respectively, at September 30, 2016 and December 31, 2015. Substandard assets adjusted for SBA guarantees to tier one capital plus loan loss reserve ratio was 25.67 percent, 31.34 percent and 31.36 percent, respectively, at December 31, 2016, September 30, 2016 and December 31, 2015. Non-performing assets decreased from the previous quarter end to $18.79 million or 2.47 percent of total loans and other real estate owned as of December 31, 2016. This compares to $23.80 million or 3.03 percent and $23.26 million or 3.03 percent, respectively, as of September 30, 2016 and December 31, 2015.
Other real estate (“OREO”) totaled $6.44 million at December 31, 2016 compared to $9.81 million and $8.84 million, respectively, at September 30, 2016 and December 31, 2015. Though these levels remain at an elevated level, we continue to work diligently to dispose these properties at fair value. We had significant reduction during fourth quarter to get to our lowest level of OREO in the past several years.
In the fourth quarter of 2016 net charge-offs were $280 thousand, or 0.04 percent of average loans as compared to net charge-offs of (77) thousand, or (0.01) percent of average loans in fourth quarter 2015, while 2016 net charge-offs were $743 thousand, or 0.10 percent of average loans compared to $1.06 million, or 0.14 percent of average loans for the comparable 2015 period. The loan loss reserve was $8.92 million or 1.18 percent of total loans on December 31, 2016 compared to $9.20 million or 1.19 percent and $8.60 million or 1.13 percent, respectively, at September 30, 2016 and December 31, 2015. Loan loss reserve methodology resulted in three months ended December 31, 2016 provision for loan losses of $0 compared to $125 thousand for the comparable 2015 period, while the twelve months ended December 31, 2016 provision for loan losses was $1.06 million compared to $866 thousand for the comparable 2015 period.
Noninterest Income
Total noninterest income increased in the comparable periods as noninterest income for twelve months ended December 31, 2016 was $9.55 million compared to $9.05 million in the comparable 2015 period, or an increase of 5.62 percent. Gain on sale of securities totaled $385 thousand compared to ($11) thousand in the comparable 2015 period to primarily account for the increase. Our initiative to increase secondary market mortgage fee income has resulted in an increase of $155 thousand, or 29.41 percent over the comparable 2015 period.
Noninterest Expense
Total noninterest expense increased in the comparable periods as noninterest expense for twelve months ended December 31, 2016 was $34.07 million compared to $33.73 million for the comparable 2015 period, or an increase of 1.03 percent. Salaries and employee benefit expenses increased 5.08 percent, occupancy expense decreased 0.48 percent and other noninterest expense decreased 4.33 percent for the comparable periods. The efficiency ratio improved to 71.81 percent for twelve months ended December 31, 2016 compared to 71.92 percent for the comparable 2015 period, or a decrease of 0.15 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-seven 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) | |||||||||||
| December 31, 2016 | December 31, 2015 | December 31, 2014 | |||||||||
| (unaudited) | (audited) | (audited) | |||||||||
| ASSETS | |||||||||||
| Cash and Cash Equivalents | |||||||||||
| Cash and Due from Banks | $ | 28,822 | $ | 22,257 | $ | 24,473 | |||||
| Federal Funds Sold | - | - | 20,132 | ||||||||
| 28,822 | 22,257 | 44,605 | |||||||||
| Interest-Bearing Deposits | 46,345 | 38,615 | 21,206 | ||||||||
| Investment Securities | |||||||||||
| Available for Sale, at Fair Value | 323,658 | 296,149 | 274,594 | ||||||||
| Held for Maturity, at Cost (Fair Value | |||||||||||
| of $28 as of December 31, 2014) | - | - | 30 | ||||||||
| 323,658 | 296,149 | 274,624 | |||||||||
| Federal Home Loan Bank Stock, at Cost | 3,010 | 2,731 | 2,831 | ||||||||
| Loans | 754,283 | 758,636 | 746,094 | ||||||||
| Allowance for Loan Losses | (8,923 | ) | (8,604 | ) | (8,802 | ) | |||||
| Unearned Interest and Fees | (361 | ) | (357 | ) | (362 | ) | |||||
| 744,999 | 749,675 | 736,930 | |||||||||
| Premises and Equipment | 27,969 | 26,454 | 24,960 | ||||||||
| Other Real Estate | 6,439 | 8,839 | 10,402 | ||||||||
| Other Intangible Assets | 81 | 116 | 152 | ||||||||
| Other Assets | 29,119 | 29,313 | 31,188 | ||||||||
| Total Assets | $ | 1,210,442 | $ | 1,174,149 | $ | 1,146,898 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
| Deposits | |||||||||||
| Noninterest-Bearing | $ | 159,059 | $ | 133,886 | $ | 128,340 | |||||
| Interest-Bearing | 885,298 | 877,668 | 850,963 | ||||||||
| 1,044,357 | 1,011,554 | 979,303 | |||||||||
| Borrowed Money | |||||||||||
| Subordinated Debentures | 24,229 | 24,229 | 24,229 | ||||||||
| Other Borrowed Money | 46,000 | 40,000 | 40,000 | ||||||||
| 70,229 | 64,229 | 64,229 | |||||||||
| Other Liabilities | 2,468 | 2,909 | 4,339 | ||||||||
| Stockholders' Equity | |||||||||||
| Preferred Stock, Stated Value $1,000 a Share; | |||||||||||
| Authorized 10,000,000 Shares, Issued 9,360 Shares | |||||||||||
| as of Dec. 31, 2016, 18,021 as of Dec. 31, 2015 and | |||||||||||
| 28,000 as of Dec. 31, 2014, Respectively | 9,360 | 18,021 | 28,000 | ||||||||
| Common Stock, Par Value $1 a share; Authorized | |||||||||||
| 20,000,000 Shares, Issued 8,439,258 Shares as of | |||||||||||
| Dec. 31, 2016, Dec. 31, 2015 and Dec. 31, 2014, | |||||||||||
| Respectively | 8,439 | 8,439 | 8,439 | ||||||||
| Paid in Capital | 29,145 | 29,145 | 29,145 | ||||||||
| Retained Earnings | 51,466 | 44,286 | 38,288 | ||||||||
| Accumulated Other Comprehensive Loss, Net of Tax | (5,022 | ) | (4,434 | ) | (4,845 | ) | |||||
| 93,388 | 95,457 | 99,027 | |||||||||
| Total Liabilities and Stockholders' Equity | $ | 1,210,442 | $ | 1,174,149 | $ | 1,146,898 | |||||
| Consolidated Statements of Income Colony Bankcorp, Inc. | |||||||||||||
| (in thousands except per share data) | |||||||||||||
| Quarter | Year-to-Date | ||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||
| 12/31/2016 | 12/31/2015 | 12/31/2016 | 12/31/2015 | ||||||||||
| (unaudited) | (audited) | (unaudited) | (audited) | ||||||||||
| Interest Income | |||||||||||||
| Loans, Including Fees | $ | 9,808 | $ | 10,153 | $ | 38,943 | $ | 39,716 | |||||
| Federal Funds Sold | - | - | - | 15 | |||||||||
| Deposits with Other Banks | 45 | 22 | 124 | 80 | |||||||||
| Investment Securities | |||||||||||||
| U. S. Government Agencies | 1,286 | 1,127 | 5,264 | 4,235 | |||||||||
| State, County and Municipal | 30 | 30 | 127 | 108 | |||||||||
| Dividends on Other Investments | 34 | 31 | 131 | 122 | |||||||||
| 11,203 | 11,363 | 44,589 | 44,276 | ||||||||||
| Interest Expense | |||||||||||||
| Deposits | 1,201 | 1,209 | 4,781 | 4,857 | |||||||||
| Federal Funds Purchased | 1 | - | 1 | - | |||||||||
| Borrowed Money | 432 | 393 | 1,701 | 1,712 | |||||||||
| 1,634 | 1,602 | 6,483 | 6,569 | ||||||||||
| Net Interest Income | 9,569 | 9,761 | 38,106 | 37,707 | |||||||||
| Provision for Loan Losses | - | 125 | 1,062 | 866 | |||||||||
| Net Interest Income After Provision for Loan Losses | 9,569 | 9,636 | 37,044 | 36,841 | |||||||||
| Noninterest Income | |||||||||||||
| Service Charges on Deposits | 1,122 | 1,084 | 4,307 | 4,268 | |||||||||
| Other Service Charges, Commissions and Fees | 698 | 664 | 2,802 | 2,627 | |||||||||
| Mortgage Fee Income | 175 | 142 | 682 | 527 | |||||||||
| Securities Gains (Losses) | - | (23 | ) | 385 | (11 | ) | |||||||
| Other | 397 | 375 | 1,377 | 1,634 | |||||||||
| 2,392 | 2,242 | 9,553 | 9,045 | ||||||||||
| Noninterest Expense | |||||||||||||
| Salaries and Employee Benefits | 4,658 | 4,320 | 18,483 | 17,590 | |||||||||
| Occupancy and Equipment | 1,003 | 953 | 3,970 | 3,989 | |||||||||
| Other | 3,169 | 3,511 | 11,620 | 12,146 | |||||||||
| 8,830 | 8,784 | 34,073 | 33,725 | ||||||||||
| Income Before Income Taxes | 3,131 | 3,094 | 12,524 | 12,161 | |||||||||
| Income Taxes | 944 | 989 | 3,851 | 3,788 | |||||||||
| Net Income | 2,187 | 2,105 | 8,673 | 8,373 | |||||||||
| Preferred Stock Dividends | 304 | 521 | 1,493 | 2,375 | |||||||||
| Net Income Available to Common Shareholders | $ | 1,883 | $ | 1,584 | $ | 7,180 | $ | 5,998 | |||||
| Net Income Per Share of Common Stock | |||||||||||||
| Basic | $ | 0.22 | $ | 0.19 | $ | 0.85 | $ | 0.71 | |||||
| Diluted | $ | 0.22 | $ | 0.19 | $ | 0.84 | $ | 0.71 | |||||
| Weighted Average Basic Shares Outstanding | 8,439,258 | 8,439,258 | 8,439,258 | 8,439,258 | |||||||||
| Weighted Average Diluted Shares Outstanding | 8,553,937 | 8,486,672 | 8,513,295 | 8,458,461 | |||||||||
| COLONY BANKCORP, INC | |||||||||||||||
| FINANCIAL HIGHLIGHTS (UNAUDITED) | |||||||||||||||
| DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA | |||||||||||||||
| QUARTER ENDED | YEAR-TO-DATE | ||||||||||||||
| EARNINGS SUMMARY | 12/31/2016 | 12/31/2015 | 12/31/2016 | 12/31/2015 | |||||||||||
| Net Interest Income | $ | 9,569 | $ | 9,761 | $ | 38,106 | $ | 37,707 | |||||||
| Provision for Loan Losses | - | 125 | 1,062 | 866 | |||||||||||
| Non-interest Income | 2,392 | 2,242 | 9,553 | 9,045 | |||||||||||
| Non-interest Expense | 8,830 | 8,784 | 34,073 | 33,725 | |||||||||||
| Income Taxes | 944 | 989 | 3,851 | 3,788 | |||||||||||
| Net Income | 2,187 | 2,105 | 8,673 | 8,373 | |||||||||||
| Preferred Stock Dividend | 304 | 521 | 1,493 | 2,375 | |||||||||||
| Net Income Available to | |||||||||||||||
| Common Shareholders | 1,883 | 1,584 | 7,180 | 5,998 | |||||||||||
| QUARTER ENDED | YEAR-TO-DATE | ||||||||||||||
| PER COMMON SHARE SUMMARY | 12/31/2016 | 12/31/2015 | 12/31/2016 | 12/31/2015 | |||||||||||
| 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 Diluted Shares | 8,553,937 | 8,486,672 | 8,513,295 | 8,458,461 | |||||||||||
| Earnings Per Basic Share (b) | $ | 0.22 | $ | 0.19 | $ | 0.85 | $ | 0.71 | |||||||
| Earnings Per Diluted Share (b) | $ | 0.22 | $ | 0.19 | $ | 0.84 | $ | 0.71 | |||||||
| Common Book Value Per Share | $ | 9.96 | $ | 9.18 | $ | 9.96 | $ | 9.18 | |||||||
| Tangible Common Book Value Per Share | $ | 9.95 | $ | 9.16 | $ | 9.95 | $ | 9.16 | |||||||
| QUARTER ENDED | YEAR-TO-DATE | ||||||||||||||
| OPERATING RATIOS (1) | 12/31/2016 | 12/31/2015 | 12/31/2016 | 12/31/2015 | |||||||||||
| Net Interest Margin (a) | 3.48 | % | 3.63 | % | 3.51 | % | 3.52 | % | |||||||
| Return on Average Assets (b) | 0.64 | % | 0.55 | % | 0.62 | % | 0.52 | % | |||||||
| Return on Average Total Equity (b) | 7.60 | % | 6.26 | % | 7.17 | % | 5.90 | % | |||||||
| Efficiency (c) | 73.57 | % | 72.81 | % | 71.81 | % | 71.92 | % | |||||||
| (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 | 12/31/2016 | 12/31/2015 | |||||||||||||
| Total Assets | $ | 1,210,442 | $ | 1,174,149 | |||||||||||
| Loans, Net of Reserves | 744,999 | 749,675 | |||||||||||||
| Allowance for Loan Losses | 8,923 | 8,604 | |||||||||||||
| Intangible Assets | 81 | 116 | |||||||||||||
| Deposits | 1,044,357 | 1,011,554 | |||||||||||||
| Common Shareholders' Equity | 84,028 | 77,436 | |||||||||||||
| Common Equity to Total Assets | 6.94 | % | 6.60 | % | |||||||||||
| Total Equity | 93,388 | 95,457 | |||||||||||||
| Total Equity to Total Assets | 7.71 | % | 8.13 | % | |||||||||||
| QUARTER ENDED | YEAR-TO-DATE | ||||||||||||||
| AVERAGE BALANCES | 12/31/2016 | 12/31/2015 | 12/31/2016 | 12/31/2015 | |||||||||||
| Total Assets | $ | 1,182,003 | $ | 1,150,797 | $ | 1,163,863 | $ | 1,146,984 | |||||||
| Loans, Net of Reserves | 760,170 | 756,549 | 751,778 | 748,367 | |||||||||||
| Deposits | 1,009,258 | 981,299 | 993,705 | 976,352 | |||||||||||
| Common Shareholders' Equity | 85,787 | 78,080 | 83,579 | 75,380 | |||||||||||
| Total Equity | 99,169 | 101,135 | 100,114 | 101,710 | |||||||||||
| QUARTER ENDED | YEAR-TO-DATE | ||||||||||||||
| ASSET QUALITY | 12/31/2016 | 12/31/2015 | 12/31/2016 | 12/31/2015 | |||||||||||
| Nonperforming Loans | $ | 12,350 | $ | 14,416 | $ | 12,350 | $ | 14,416 | |||||||
| Nonperforming Assets | 18,789 | 23,255 | 18,789 | 23,255 | |||||||||||
| Substandard Assets | 33,227 | 41,236 | 33,227 | 41,236 | |||||||||||
| Net Loan Chg-offs (Recoveries) | 280 | (77 | ) | 743 | 1,064 | ||||||||||
| Reserve for Loan Loss to Total Loans | 1.18 | % | 1.13 | % | 1.18 | % | 1.13 | % | |||||||
| Reserve for Loan Loss to Non- performing Loans | 72.25 | % | 59.69 | % | 72.25 | % | 59.69 | % | |||||||
| Reserve for Loan Loss to Non-performing Assets | 47.49 | % | 37.00 | % | 47.49 | % | 37.00 | % | |||||||
| Net Loan Chg-offs (Recoveries) | |||||||||||||||
| to Avg. Total Loans | 0.04 | % | (0.01 | )% | 0.10 | % | 0.14 | % | |||||||
| Nonperforming Loans to Total Loans | 1.64 | % | 1.90 | % | 1.64 | % | 1.90 | % | |||||||
| Nonperforming Assets to Total Assets | 1.55 | % | 1.98 | % | 1.55 | % | 1.98 | % | |||||||
| Nonperforming Assets to Total Loans | |||||||||||||||
| And Other Real Estate | 2.47 | % | 3.03 | % | 2.47 | % | 3.03 | % | |||||||
| Substandard Assets to Tier One Capital | |||||||||||||||
| and Allowance for Loan Losses | 25.67 | % | 31.36 | % | 25.67 | % | 31.36 | % | |||||||
| Quarterly Comparative Data (in thousands, except per share data) | |||||||||||||||
| 4Q2016 | 3Q2016 | 2Q2016 | 1Q2016 | 4Q2015 | |||||||||||
| Assets | $ | 1,210,442 | $ | 1,152,817 | $ | 1,147,027 | $ | 1,168,389 | $ | 1,174,149 | |||||
| Loans | 744,999 | 766,532 | 754,437 | 744,356 | 749,675 | ||||||||||
| Deposits | 1,044,357 | 978,590 | 976,567 | 1,000,043 | 1,011,554 | ||||||||||
| Common Shareholders’ Equity | 84,028 | 86,375 | 85,444 | 82,522 | 77,436 | ||||||||||
| Total Equity | 93,388 | 100,735 | 103,465 | 100,543 | 95,457 | ||||||||||
| Net Income | 2,187 | 2,258 | 2,167 | 2,061 | 2,105 | ||||||||||
| Net Income Available to | |||||||||||||||
| Common Shareholders | 1,883 | 1,880 | 1,761 | 1,656 | 1,584 | ||||||||||
| Net Income Per Share | 0.22 | 0.22 | 0.21 | 0.20 | 0.19 | ||||||||||
| Key Performance Ratios | 4Q2016 | 3Q2016 | 2Q2016 | 1Q2016 | 4Q2015 | ||||||||||
| Return on Average Assets (1) | 0.64 | % | 0.65 | % | 0.61 | % | 0.57 | % | 0.55 | % | |||||
| Return on Average Total Equity (1) | 7.60 | % | 7.35 | % | 6.99 | % | 6.75 | % | 6.26 | % | |||||
| Common Equity to Total Assets | 6.94 | % | 7.49 | % | 7.45 | % | 7.06 | % | 6.60 | % | |||||
| Total Equity to Total Assets | 7.71 | % | 8.74 | % | 9.02 | % | 8.61 | % | 8.13 | % | |||||
| Net Interest Margin | 3.48 | % | 3.56 | % | 3.53 | % | 3.47 | % | 3.63 | % | |||||
| (1) Computed using net income available to shareholders | |||||||||||||||