FITZGERALD, Ga., Oct. 17, 2017 (GLOBE NEWSWIRE) -- Colony Bankcorp, Inc. (Nasdaq:CBAN), today reported net income available to shareholders of $2,622,000, or $0.30 per diluted share for the third quarter of 2017 compared to $1,880,000, or $0.22 per diluted share for the comparable 2016 period, while net income available to shareholders for the nine month period ended September 30, 2017 was $6,961,000, or $0.81 per diluted share compared to $5,297,000, or $0.62 per share for the comparable 2016 period.  This increase of 31.41 percent in net income for the comparable year ago period was primarily driven by an increase in net interest income and noninterest income and a reduction in preferred stock dividends and loan loss provision.  “We are delighted to report our highest earnings quarter in a number of years,” said Ed Loomis, President and Chief Executive Officer.  “As the economic recovery chugs along, we expect to benefit with increased loan opportunities.  While our operating efficiencies have improved the past several quarters, we continue to explore different initiatives for additional improvement and thus further enhance shareholder value.  We remain optimistic that tax reform proposals will become reality in the near term and also provide a boost to future earnings.” 

Capital

Colony continues to maintain a strong regulatory capital position to be categorized as “well-capitalized” by regulatory benchmarks.  At September 30, 2017, the Company’s tier one leverage ratio, tier one ratio, total risk-based capital ratio and common equity tier one capital ratio were 9.91 percent, 14.76 percent,15.75 percent and 11.84 percent, respectively, compared to 9.72 percent, 14.33 percent, 15.32 percent  and 11.44 percent, respectively, at June 30, 2017.  The Company’s capital ratios were all in excess of regulatory minimums required to be classified as “well-capitalized.”

Net Interest Margin 

During the third quarter of 2017, the Company reported net interest income of $9.84 million and a net interest margin of 3.50 percent compared to $9.56 million and 3.56 percent, respectively, for third quarter 2016, while net interest income YTD 2017 was $29.12 million and a net interest margin of 3.45 percent compared to $28.54 million and 3.52 percent, respectively, for the same comparable in 2016.  Second quarter 2017 net interest margin was 3.49 percent, thus a slight increase in net interest margin this quarter.   As we shift more dollars out of lower yielding investments into higher yielding loans, we should continue to realize net interest margin improvement.   

Asset Quality

Asset quality remains solid with marked improvement from a year ago.  Substandard assets that include non-performing assets totaled $30.54 million at September 30, 2017 compared to $33.23 million and $41.49 million, respectively, at December 31, 2016 and September 30, 2016.  Substandard assets adjusted for SBA guarantees to tier one capital plus loan loss reserve ratio was 23.14 percent, 25.67 percent and 31.34 percent, respectively, at September 30, 2017, December 31, 2016 and September 30, 2016.  Non-performing assets increased slightly from the previous quarter end to $13.32 million or 1.72 percent of total loans and other real estate owned as of September 30, 2017.  This compares to $18.79 million or 2.47 percent and $23.80 million or 3.03 percent, respectively, as of December 31, 2016 and September 30, 2016.       

Other real estate (“OREO”) totaled $4.52 million at September 30, 2017 compared to $6.44 million and $9.81 million, respectively, at December 31, 2016 and September 30, 2016.   Though these levels remain at an elevated level, we continue to work diligently to dispose these properties at fair value.  There are several pending transactions  that we anticipate closing in the near future to further reduce our OREO holdings. 

In the third quarter of 2017 net charge-offs were $66 thousand, or 0.01 percent of average loans as compared to net charge-offs of $541 thousand, or 0.07 percent of average loans in third quarter 2016, while YTD 2017 net charge-offs were $1,281 thousand, or 0.17 percent of average loans compared to $463 thousand, or 0.06 percent of average loans for the comparable 2016 period.  The loan loss reserve was $7.98 million or 1.04 percent of total loans on September 30, 2017 compared to $8.92 million or 1.18 percent and $9.20 million or 1.19 percent, respectively, at December 31, 2016 and September 30, 2016.  Loan loss reserve methodology resulted in no loan loss provision for three months ended September 30, 2017  compared to $354 thousand for the comparable 2016 period, while YTD 2017 provision for loan losses was $335 thousand compared to $1,062 thousand for the comparable 2016 period.

Noninterest Income

Total noninterest income increased in the comparable periods as noninterest income for nine months ended September 30, 2017 was $7.22 million compared to $7.16 million in the comparable 2016 period, or an increase of 0.80 percent.  Secondary mortgage fee income increased $122 thousand or 24.06 percent, service charges on deposits increased $130 thousand or 4.08 percent and debit card interchange fees increased $144 thousand or 7.95 percent to primarily account for the increase.  Offset to these increases was gains on the sale of securities in 2016 of $385 thousand compared to no gains in 2017.    

Noninterest Expense

Total noninterest expense increased in the comparable periods as noninterest expense for nine months ended September 30, 2017 was $25.41 million compared to $25.24 million for the comparable 2016 period, or an increase of 0.67 percent.  Salaries and employee benefit expenses increased 4.64 percent, occupancy expense was relatively flat and other noninterest expense decreased 5.62 percent for the comparable periods.  The efficiency ratio improved to 69.69 percent for nine months ended September 30, 2017 compared to 71.22 percent for the comparable 2016 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)
      
 September 30, 2017 December 31, 2016 September 30, 2016
 (unaudited) (audited) (unaudited)
ASSETS     
Cash and Cash Equivalents     
Cash and Due from Banks$18,848  $28,822  $17,803 
Interest-Bearing Deposits 12,752   46,345   13,872 
Investment Securities     
Available for Sale, at Fair Value 338,249   323,658   286,089 
Federal Home Loan Bank Stock, at Cost 3,255   3,010   3,010 
Loans 770,046   754,283   776,117 
Allowance for Loan Losses (7,977)  (8,923)  (9,203)
Unearned Interest and Fees (430)  (361)  (382)
  761,639   744,999   766,532 
Premises and Equipment 27,616   27,969   27,745 
Other Real Estate 4,520   6,439   9,812 
Other Intangible Assets 54   81   89 
Other Assets 28,460   29,119   27,865 
Total Assets$1,195,393  $1,210,442  $1,152,817 
      
      
LIABILITIES AND STOCKHOLDERS' EQUITY     
      
Deposits     
Noninterest-Bearing$162,706  $159,059  $138,941 
Interest-Bearing 857,557   885,298   839,649 
  1,020,263   1,044,357   978,590 
Borrowed Money     
Subordinated Debentures 24,229   24,229   24,229 
Other Borrowed Money 56,000   46,000   46,000 
  80,229   70,229   70,229 
      
Other Liabilities 3,299   2,468   3,263 
      
Stockholders' Equity     
Preferred Stock, Stated Value $1,000 a Share;     
Authorized 10,000,000 Shares, Issued 0 Shares     
as of Sept. 30, 2017, 9,360 as of Dec. 31, 2016 and     
14,360 as of Sept. 30, 2016, Respectively -   9,360   14,360 
Common Stock, Par Value $1 a share; Authorized     
20,000,000 Shares, Issued 8,439,258 Shares as of     
Sept. 30, 2017, Dec. 31, 2016 and Sept. 30, 2016     
Respectively 8,439   8,439   8,439 
Paid in Capital 29,145   29,145   29,145 
Retained Earnings 57,794   51,466   49,582 
Accumulated Other Comprehensive Loss, Net of Tax (3,776)  (5,022)  (791)
  91,602   93,388   100,735 
Total Liabilities and Stockholders' Equity$1,195,393  $1,210,442  $1,152,817 
      


Consolidated Statements of Income Colony Bankcorp, Inc.
(in thousands except per share data)
 
 Quarter Year-to-Date
 Three Months Ended Nine Months Ended
 9/30/2017 9/30/2016 9/30/2017 9/30/2016
 (unaudited) (unaudited) (unaudited) (unaudited)
Interest Income       
Loans, Including Fees$9,754 $9,810 $28,884 $29,135
Deposits with Other Banks 52  18  166  79
Investment Securities       
U. S. Government Agencies 1,684  1,266  4,932  3,978
State, County and Municipal 27  30  87  97
Corporate Debt 23  -  59  -
Dividends on Other Investments 38  32  109  97
  11,578  11,156  34,237  33,386
Interest Expense       
Deposits 1,191  1,187  3,559  3,580
Federal Funds Purchased -  -  3  -
Borrowed Money 544  413  1,554  1,269
  1,735  1,600  5,116  4,849
Net Interest Income 9,843  9,556  29,121  28,537
Provision for Loan Losses -  354  335  1,062
Net Interest Income After Provision for Loan Losses 9,843  9,202  28,786  27,475
        
Noninterest Income       
Service Charges on Deposits 1,169  1,128  3,315  3,185
Other Service Charges, Commissions and Fees 741  686  2,300  2,104
Mortgage Fee Income 241  254  629  507
Securities Gains (Losses) -  256  -  385
Other 273  313  974  980
  2,424  2,637  7,218  7,161
Noninterest Expense       
Salaries and Employee Benefits 4,802  4,726  14,467  13,825
Occupancy and Equipment 1,014  1,025  2,965  2,967
Other 2,564  2,903  7,976  8,451
  8,380  8,654  25,408  25,243
        
Income Before Income Taxes 3,887  3,185  10,596  9,393
Income Taxes 1,265  927  3,424  2,907
Net Income 2,622  2,258  7,172  6,486
        
Preferred Stock Dividends -  378  211  1,189
        
Net Income Available to Common Shareholders$2,622 $1,880 $6,961 $5,297
Net Income Per Share of Common Stock       
Basic$0.31 $0.22 $0.82 $0.63
Diluted$0.30 $0.22 $0.81 $0.62
Cash Dividends Declared Per Share$0.025  - $0.075  -
Weighted Average Basic Shares Outstanding 8,439,258  8,439,258  8,439,258  8,439,258
Weighted Average Diluted Shares Outstanding 8,629,523  8,506,268  8,631,566  8,495,752
        


COLONY BANKCORP, INC
FINANCIAL HIGHLIGHTS (UNAUDITED)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
          
  QUARTER ENDED YEAR-TO-DATE 
EARNINGS SUMMARY 9/30/2017 9/30/2016 9/30/2017 9/30/2016 
Net Interest Income $  9,843 $  9,556 $  29,121 $  28,537 
Provision for Loan Losses   -    354    335    1,062 
Non-interest Income    2,424    2,637    7,218    7,161 
Non-interest Expense    8,380    8,654    25,408    25,243 
Income Taxes    1,265    927     3,424    2,907 
Net Income    2,622    2,258    7,172    6,486 
Preferred Stock Dividend   -    378    211    1,189 
Net Income Available to         
Common Shareholders    2,622    1,880    6,961    5,297 
          
  QUARTER ENDED YEAR-TO-DATE 
PER COMMON SHARE SUMMARY 9/30/2017 9/30/2016 9/30/2017 9/30/2016 
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    8,629,523    8,506,268    8,631,566    8,495,752 
Earnings Per Basic Share (b) $0.31 $0.22 $0.82 $0.63 
Earnings Per Diluted Share (b) $0.30 $0.22 $0.81 $0.62 
Cash Dividends Declared Per Share $0.025  - $0.075  - 
Common Book Value Per Share $10.85 $10.23 $10.85 $10.23 
Tangible Common Book Value Per Share $10.85 $10.22 $10.85 $10.22 
          
  QUARTER ENDED  YEAR-TO-DATE  
OPERATING RATIOS (1) 9/30/2017 9/30/2016 9/30/2017 9/30/2016  
Net Interest Margin (a)     3.50%     3.56%     3.45%    3.52% 
Return on Average Assets (b)     0.88%     0.65%     0.78%    0.61% 
Return on Average Total Equity (b)     11.57%     7.35%     10.23%    7.03% 
Efficiency (c)     68.06%     72.22%     69.69%    71.22% 
         

(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 9/30/2017 9/30/2016
Total Assets $1,195,393  $1,152,817 
Loans, Net of Reserves  761,639   766,532 
Allowance for Loan Losses  7,977   9,203 
Intangible Assets  54   89 
Deposits  1,020,263   978,590 
Common Shareholders' Equity  91,602   86,375 
Common Equity to Total Assets  7.66%   7.49% 
Total Equity  91,602   100,735 
Total Equity to Total Assets  7.66%   8.74% 
     


  QUARTER ENDED YEAR-TO-DATE
AVERAGE BALANCES 9/30/2017 9/30/2016 9/30/2017 9/30/2016
Total Assets $1,196,078  $1,151,458  $1,196,997  $1,157,816 
Loans, Net of Reserves  759,017   756,776   751,849   748,960 
Deposits  1,021,645   977,544   1,027,210   988,483 
Common Shareholders' Equity  90,650   85,603   87,745   82,838 
Total Equity  90,650   102,351   90,762   100,431 
         
  QUARTER ENDED YEAR-TO-DATE
ASSET QUALITY 9/30/2017 9/30/2016 9/30/2017 9/30/2016
Nonperforming Loans $8,807  $13,987  $8,807  $13,987 
Nonperforming Assets  13,327   23,799   13,327   23,799 
Substandard Assets  30,539   41,485   30,539   41,485 
Net Loan Chg-offs (Recoveries)  66   541   1,281   463 
Reserve for Loan Loss to Total Loans  1.04%   1.19%   1.04%   1.19% 
Reserve for Loan Loss to Non- performing Loans 90.58%   65.80%   90.58%   65.80% 
Reserve for Loan Loss to Non-performing Assets 59.86%   38.67%   59.86%   38.67% 
Net Loan Chg-offs (Recoveries)        
to Avg. Total Loans  0.01%   0.07%   0.17%   0.06% 
Nonperforming Loans to Total Loans  1.14%   1.80%   1.14%   1.80% 
Nonperforming Assets to Total Assets  1.11%   2.06%   1.11%   2.06% 
Nonperforming Assets to Total Loans        
And Other Real Estate  1.72%   3.03%   1.72%   3.03% 
Substandard Assets to Tier One Capital        
and Allowance for Loan Losses  23.14%   31.34%   23.14%   31.34% 
         


Quarterly Comparative Data (in thousands, except per share data)
  3Q2017  2Q2017  1Q2017  4Q2016  3Q2016 
Assets$1,195,393 $1,198,449 $1,208,765 $1,210,442 $1,152,817 
Loans 761,639  767,069  751,056  744,999  766,532 
Deposits 1,020,263  1,026,538  1,044,231  1,044,357  978,500 
Common Shareholders’ Equity 91,602  88,992  85,861  84,028  86,375 
Total Equity 91,602  88,992  85,861  93,388  100,735 
Net Income 2,622  2,433  2,117  2,187  2,258 
Net Income Available to     
Common Shareholders 2,622  2,433  1,906  1,883  1,880 
Net Income Per Basic Share 0.31  0.29  0.23  0.22  0.22 
      
      
Key Performance Ratios 3Q2017  2Q2017  1Q2017  4Q2016  3Q2016 
Return on Average Assets (1) 0.88%  0.81%  0.63%  0.64%  0.65% 
Return on Average Total Equity (1) 11.57%  11.10%  8.11%  7.60%  7.35% 
Common Equity to Total Assets 7.66%  7.43%  7.10%  6.94%  7.49% 
Total Equity to Total Assets 7.66%  7.43%  7.10%  7.71%  8.74% 
Net Interest Margin 3.50%  3.49%  3.35%  3.48%  3.56% 
      
(1) Computed using net income available to shareholders
      

 

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