Colony Bankcorp Reports First Quarter 2021 Results

April 22, 2021 4:30 PM EDT

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Declares Quarterly Cash Dividend of $0.1025 Per Share

FITZGERALD, Ga.--(BUSINESS WIRE)-- Colony Bankcorp, Inc. (Nasdaq: CBAN) (“Colony” or the “Company”) today reported net income of $4.9 million, $0.52 per diluted share, for the quarter ended March 31, 2021, compared with $1.6 million, or $0.17 per diluted share, for the quarter ended March 31, 2020. The Company reported operating net income of $5.1 million, or $0.53 per diluted share, for the quarter ended March 31, 2021, compared with $1.8 million, or $0.19 per diluted share for the same period in 2020. Operating net income for March 31, 2021 and 2020 excludes after-tax acquisition related expenses, and the net income tax expense (benefit) for the adjustments.

First Quarter 2021 Financial Highlights:

  • Net income remained stable at $4.9 million, or $0.52 per diluted share, compared to the fourth quarter of 2020.
  • Operating net income of $5.1 million, or $0.53 per diluted share, an increase of $845,000, or $0.09, compared to the fourth quarter of 2020 (see Non-GAAP reconciliation).
  • Growth in total assets of $35.1 million, or 1.99%, compared to the fourth quarter of 2020.
  • Increase in noninterest income from mortgage banking activity of $550,000 compared to the fourth quarter of 2020.
  • $500,000 provision for loan losses, a decrease of $796,000, or 61.4%, compared to the fourth quarter 2020.
  • Mortgage production of $101.7 million, with $40.0 million in refinances, $56.7 million in purchases, and $5.0 million in construction related loans.
  • Small Business Specialty Lending (“SBSL”) closed $64.0 million in SBA loans ($46.9 million in PPP loans and $17.1 million in core SBA loans) and sold $11.8 million in SBA loans.

The Company also announced that on April 22, 2021, the Board of Directors declared a quarterly cash dividend of $0.1025 per share, to be paid on its common stock on May 17, 2021, to shareholders of record as of the close of business on May 3, 2021.

Commenting on the announcement, Heath Fountain, President and Chief Executive Officer, said, “While we continue to operate in a highly uncertain and difficult environment due to the ongoing pandemic, we remain optimistic based on our financial achievements and solid credit metrics. I am pleased to report strong earnings growth for the first quarter. Diluted earnings per share increased 205% over the same period last year to $0.52 per diluted share. First quarter saw continued strength in mortgage banking income as well as in our Small Business Specialty Lending Division, with significant increases in both on a year-over-year and sequential quarter basis. We also experienced growth in our balance sheet metrics for the period, including growth in total deposits and total assets, while organic loan growth increased 5%. We continue to actively participate in the latest round of the Small Business Administration (“SBA”) Paycheck Protection Program (“PPP”) enacted as part of the Coronavirus Aid, Relief and Economic Security Act.

“Net interest income increased 12.4% year-over-year despite lower yields on loans and deposits held at other banks, as well as lower interest expenses. Due to continued pressure on interest rates and low rates on PPP loans, our net interest margin decreased 13 basis points to 3.50% compared with the year-earlier period.

“Our continuing efforts to diversify our revenue streams produced multiple gains. Noninterest income saw very strong growth, increasing 90% year over year, with mortgage fee income increasing to $4.0 million in the current quarter compared to $1.3 million in the first quarter of 2020. This increase in noninterest income was offset by increases in noninterest expense, such as salaries and employee benefits due to the additional headcount, as well as increases in information technology to support our growth.

“We took a lower provision for loan loss of $500,000 this quarter, a substantial decrease from the $2.0 million in the first quarter of 2020, primarily due to performance of loans as well as increased clarity in the current operating environment. Our allowance for loan and lease losses now represents 1.19% of total loans outstanding, an increase from 0.85% in the year-earlier quarter and 1.14% on a sequential-quarter basis. Total nonperforming assets decreased to 0.62% of total assets from 0.91% in the year-earlier quarter, and slightly increased from 0.58% on a sequential-quarter basis.

“We ended the year with total interest earning assets of $1.7 billion, up $260.0 million, or 18%, while growing total assets to $1.8 billion, a record for the Company. Total loans, including acquisition activity and loans from the Small Business Administration Paycheck Protection Program (“PPP”), increased 10% year-over-year, while organic loan growth increased 5%

In closing, Fountain added, “We have strived to pursue a vision of community banking that we have advanced since our founding. Our solid quarter and credit metrics allows us to continue to execute our business model while staying true to our community banking heritage. Our Board remains confident in our strategic business model as evidenced by the continued dividend payment. We look forward to the coming year with excitement and optimism as we grow our Bank and reward our shareholders.”

Balance Sheet

  • Total assets totaled $1.8 billion at March 31, 2021, an increase of $289.0 million, or 19.1%, compared to the same period in 2020.
  • Interest-bearing deposits in banks and federal funds sold at March 31, 2021, totaled $165.4 million, an increase of $90.2 million, or 120.0% compared to the same period in 2020. The increase is primarily attributable to the funding of approximately 2,400 PPP loans beginning in second quarter 2020, which also generated growth in our interest-bearing deposits in banks as of March 31, 2021.
  • Total loans, including loans held for sale, totaled $1.09 billion at March 31, 2021, an increase of $91.2 million, or 9.1%, from the same period in 2020. Growth in core loans was primarily attributable to PPP loan originations, while mortgage demand substantially increased during 2020 into 2021 as a result of historically low interest rates.
  • Total deposits totaled $1.53 billion at March 31, 2021, an increase of $233.6 million, or 18.1%, compared to the same period in 2020. The increase in deposits was primarily in noninterest-bearing and interest bearing demand deposits as a result of the PPP loan activity during 2020 and 2021.
  • Total borrowings at March 31, 2021, totaled $120.6 million, an increase of $81.3 million or 94.8% compared to the same period in 2020. While the Company prepaid $24.5 million in FHLB advances, funding of PPP loans through the Paycheck Protection Program Liquidity Facility (“PPPLF”) increased outstanding borrowings substantially during 2020. At March 31, 2021, the PPPLF totaled $60.6 million with comparison to prior year not applicable.

Capital

  • Colony continues to maintain a strong capital position, with ratios that exceed regulatory minimums required to be classified as “well-capitalized.”
  • Preliminary tier one leverage ratio, tier one capital ratio, total risk-based capital ratio and common equity tier one capital ratio were 8.70%, 12.49%, 13.57%, and 10.49%, respectively at March 31, 2021.

First Quarter Results of Operations

  • Net interest income on a tax-equivalent basis for the first quarter 2021 totaled $14.3 million, compared to $12.7 million for the first quarter 2020. The increase during the quarter is primarily attributable to increases in accretion income on acquired loans and loan fee income recognized on PPP loans forgiven and a decrease in the cost of interest-bearing liabilities.
  • Net interest margin was down 13 basis points over the sequential quarter primarily driven by decreased accretion income on acquired loans, a decrease in deferred fee income recognized on PPP loans and reductions in loan rates driven by Federal Reserve interest rate decreases during 2020. During the quarter ended March 31, 2021, PPP loans totaling approximately $45.4 million were forgiven through the SBA, with an additional $46.9 million of PPP loans closed related to Round 2.
  • Noninterest income totaled $8.6 million for the first quarter ended March 31, 2021, an increase of $4.1 million, or 90.3%, compared to the same period in 2020. The increase was primarily attributable to growth in mortgage production income as a result of increased loan demand resulting from a historically low interest rate environment.
  • Noninterest expense totaled $15.8 million for the first quarter ended March 31, 2021, compared to $13.3 million for the same period in 2020. The increase in noninterest expense primarily resulted from a $2.5 million increase in salary expense largely related to the increase in mortgage and SBSL loan production.

Asset Quality

  • Nonperforming assets totaled $11.2 million and $10.2 million at March 31, 2021 and December 31, 2020, respectively.
  • OREO and repossessed assets totaled $547,000 at March 31, 2021, a decrease of $489,000, or 47.2%, compared to December 31, 2020.
  • Net loan recoveries were $66,000, or (0.02%) of average loans for the first quarter of 2021, compared to net charge-offs of $189,000 in the fourth quarter of 2020.
  • The loan loss reserve was $12.7 million, or 1.19% of total loans, at March 31, 2021, compared to $12.1 million, or 1.14% of total loans, at December 31, 2020.

While nonperforming assets have increased year-over-year primarily as a result of increased traditional loan production, asset quality remains strong with overall improvement in asset quality ratios as of the first quarter 2021 on a year-over-year comparison.

About Colony Bankcorp

Colony Bankcorp, Inc. is the bank holding company for Colony Bank. Founded in 1975 and headquartered in Fitzgerald, Georgia, Colony operates 29 locations throughout Georgia. The Homebuilder Finance Division helps the local construction industry with building and construction loans, and the Small Business Specialty Lending Division assists small businesses with government guaranteed loans. The Bank also helps its customers achieve their goal of home ownership through Colony Bank Mortgage. Colony’s common stock is traded on the NASDAQ Global Market under the symbol “CBAN.” For more information, please visit www.colony.bank. You can also follow the Company on Facebook or on Twitter @colony_bank.

Forward-Looking Statements

Certain statements contained in this press release that are not statements of historical fact constitute “forward-looking statements” within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. 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, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Examples of forward-looking statements include, but are not limited to: (i) projections and/or expectations 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; (iv) statements regarding growth strategy, capital management, liquidity and funding, and future profitability; (v) statements regarding the potential effects of the COVID-19 pandemic on the Company’s business and financial results and conditions; and (vi) 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.

Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties. Factors that might cause such differences include, but are not limited to: the impact of the COVID-19 pandemic on the Company’s assets, business, cash flows, financial condition, liquidity, prospects and results of operations; potential increases in the provision for loan losses resulting from the COVID-19 pandemic; the Company’s ability to implement its various strategic and growth initiatives; competitive pressures among financial institutions increasing significantly; economic conditions, either nationally or locally, in areas in which the Company conducts operations being less favorable than expected; interest rate risk; legislation or regulatory changes which adversely affect the ability of the consolidated Company to conduct business combinations or new operations, including changes to statutes, regulations or regulatory policies or practices as a result of, or in response to COVID-19; adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions, including as a result of the Company’s participation in and execution of government programs related to the COVID-19 pandemic; risks that the anticipated benefits from the acquisition and disposition transactions we have engaged in or may engage in the future are not realized in the time frame anticipated or at all as a result of changes in general economic and market conditions or other unexpected factors or events. These and other factors, risks and uncertainties could cause the actual results, performance or achievements of the Company to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. Many of these factors are beyond the Company’s ability to control or predict.

Forward-looking statements speak only as of the date on which such statements are made. These forward-looking statements are based upon information presently known to the Company’s management and are inherently subjective, uncertain and subject to change due to any number of risks and uncertainties, including, without limitation, the risks and other factors set forth in the Company’s filings with the Securities and Exchange Commission, the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, under the captions “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors,” and in the Company’s quarterly reports on Form 10-Q and current reports on Form 8-K. 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.

Explanation of Certain Unaudited Non-GAAP Financial Measures

The measures entitled operating net income; adjusted earnings per diluted share; tangible book value per common share and operating efficiency ratio are not measures recognized under U.S. generally accepted accounting principles (GAAP) and therefore are considered non-GAAP financial measures. The most comparable GAAP measures are net income, diluted earnings per share, book value per common share and efficiency ratio, respectively.

Management uses these non-GAAP financial measures in its analysis of the Company's performance and believes these presentations provide useful supplemental information, and a clearer understanding of the Company's performance, and if not provided would be requested by the investor community. The Company believes the non-GAAP measures enhance investors' understanding of the Company's business and performance. These measures are also useful in understanding performance trends and facilitate comparisons with the performance of other financial institutions. The limitations associated with operating measures are the risk that persons might disagree as to the appropriateness of items comprising these measures and that different companies might calculate these measures differently.

These disclosures should not be considered an alternative to GAAP. The computations of operating net income; adjusted earnings per diluted share; tangible book value per common share and operating efficiency ratio and the reconciliation of these measures to net income, diluted earnings per share, book value per common share and efficiency ratio are set forth in the table below.

 
 

Colony Bankcorp, Inc.

 

 

 

 

Reconciliation of Non-GAAP Measures

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

2020

(dollars in thousands, except per share data)

 

First Quarter

 

Fourth Quarter

 

Third Quarter

 

Second Quarter

 

First Quarter

Operating net income reconciliation

 

 

 

 

 

 

 

 

 

 

Net income (GAAP)

 

$

4,919

 

 

$

4,900

 

 

$

3,098

 

 

$

2,214

 

 

$

1,603

 

Acquisition-related expenses

 

 

105

 

 

 

148

 

 

 

207

 

 

 

220

 

 

 

287

 

Thomaston building write down

 

 

 

 

 

 

 

 

582

 

 

 

 

 

 

 

Gain on sale of Thomaston branch

 

 

 

 

 

(1,026

)

 

 

 

 

 

 

 

 

 

Income tax expense (benefit)

 

 

27

 

 

 

184

 

 

 

(166

)

 

 

(46

)

 

 

(60

)

Operating net income

 

$

5,051

 

 

$

4,206

 

 

$

3,721

 

 

$

2,388

 

 

$

1,830

 

Weighted average diluted shares

 

 

9,498,783

 

 

 

9,498,783

 

 

 

9,498,783

 

 

 

9,498,783

 

 

 

9,498,783

 

Adjusted earnings per diluted share

 

$

0.53

 

 

$

0.44

 

 

$

0.39

 

 

$

0.25

 

 

$

0.19

 

 

 

 

 

 

 

 

 

 

 

 

Tangible book value per common share reconciliation

 

 

 

 

 

 

 

 

 

 

Book value per common share (GAAP)

 

$

15.11

 

 

$

15.21

 

 

$

14.78

 

 

$

14.59

 

 

$

14.35

 

Effect of goodwill and other intangibles

 

 

(1.97

)

 

 

(1.95

)

 

 

(1.96

)

 

 

(1.96

)

 

 

(2.06

)

Tangible book value per common share

 

$

13.14

 

 

$

13.26

 

 

$

12.82

 

 

$

12.63

 

 

$

12.29

 

 

 

 

 

 

 

 

 

 

 

 

Operating efficiency ratio calculation

 

 

 

 

 

 

 

 

 

 

Efficiency ratio (GAAP)

 

 

69.04

%

 

 

68.93

%

 

 

76.22

%

 

 

72.75

%

 

 

77.32

%

Acquisition-related expenses

 

 

(0.46

)

 

 

(0.64

)

 

 

(0.97

)

 

 

(1.20

)

 

 

(1.68

)

Gain on sale of Thomaston branch

 

 

%

 

 

3.19

%

 

 

%

 

 

%

 

 

%

Thomaston building write down

 

 

%

 

 

%

 

 

(2.72

)%

 

 

%

 

 

%

Operating efficiency ratio

 

 

68.58

%

 

 

71.49

%

 

 

72.53

%

 

 

71.55

%

 

 

75.64

%

 
Colony Bankcorp, Inc.

Selected Financial Information

 

 

 

 

 

 

 

 

 

 

 

 

 

2021

 

2020

(dollars in thousands, except per share data)

 

First Quarter

 

Fourth Quarter

 

Third Quarter

 

Second Quarter

 

First Quarter

EARNINGS SUMMARY

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

14,283

 

 

$

15,151

 

 

$

13,848

 

 

$

13,541

 

 

$

12,704

 

Provision for loan losses

 

500

 

 

1,296

 

 

1,106

 

 

2,200

 

 

1,956

 

Non-interest income

 

8,576

 

 

8,039

 

 

6,930

 

 

4,843

 

 

4,526

 

Non-interest expense

 

15,782

 

 

15,986

 

 

15,690

 

 

13,375

 

 

13,343

 

Income taxes

 

1,658

 

 

1,008

 

 

884

 

 

595

 

 

328

 

Net income

 

4,919

 

 

4,900

 

 

3,098

 

 

2,214

 

 

1,603

 

PERFORMANCE MEASURES

 

 

 

 

 

 

 

 

 

 

Per common share:

 

 

 

 

 

 

 

 

 

 

Common shares outstanding

 

9,498,783

 

 

9,498,783

 

 

9,498,783

 

 

9,498,783

 

 

9,498,783

 

Weighted average basic shares

 

9,498,783

 

 

9,498,783

 

 

9,498,783

 

 

9,498,783

 

 

9,498,783

 

Weighted average diluted shares

 

9,498,783

 

 

9,498,783

 

 

9,498,783

 

 

9,498,783

 

 

9,498,783

 

Earnings per basic share

 

$

0.52

 

 

$

0.52

 

 

$

0.33

 

 

$

0.23

 

 

$

0.17

 

Earnings per diluted share

 

0.52

 

 

0.52

 

 

0.33

 

 

0.23

 

 

0.17

 

Adjusted earnings per diluted share

 

0.53

 

 

0.44

 

 

0.39

 

 

0.25

 

 

0.34

 

Cash dividends declared per share

 

0.10

 

 

0.10

 

 

0.10

 

 

0.10

 

 

0.10

 

Common book value per share

 

15.11

 

 

15.21

 

 

14.78

 

 

14.59

 

 

14.35

 

Tangible common book value per share

 

13.14

 

 

13.26

 

 

12.82

 

 

12.63

 

 

12.29

 

 

 

 

 

 

 

 

 

 

 

 

Performance ratios:

 

 

 

 

 

 

 

 

 

 

Net interest margin (a)

 

3.50

%

 

3.58

%

 

3.34

%

 

3.41

%

 

3.63

%

Return on average assets

 

1.12

 

 

1.08

 

 

0.70

 

 

0.52

 

 

0.42

 

Return on average total equity

 

13.71

 

 

13.73

 

 

8.80

 

 

6.47

 

 

4.79

 

Efficiency ratio

 

69.04

 

 

68.93

 

 

76.22

 

 

72.75

 

 

77.32

 

Operating efficiency ratio (b)

 

68.58

 

 

71.49

 

 

72.53

 

 

71.55

 

 

75.64

 

 

 

 

 

 

 

 

 

 

 

 

ASSET QUALITY

 

 

 

 

 

 

 

 

 

 

Nonperforming loans (NPLs)

 

$

10,676

 

 

$

9,128

 

 

$

9,926

 

 

$

11,459

 

 

$

10,130

 

Other real estate owned

 

518

 

 

1,006

 

 

1,875

 

 

1,769

 

 

847

 

Repossessed assets

 

29

 

 

30

 

 

11

 

 

17

 

 

19

 

Total nonperforming assets (NPAs)

 

11,223

 

 

10,164

 

 

11,812

 

 

13,245

 

 

10,996

 

Classified loans

 

35,182

 

 

30,404

 

 

21,388

 

 

20,619

 

 

23,093

 

Criticized loans

 

80,288

 

 

75,633

 

 

72,076

 

 

52,200

 

 

46,600

 

Net loan (recoveries)/charge-offs

 

(66

)

 

189

 

 

375

 

 

295

 

 

435

 

Allowance for loan losses to total loans

 

1.19

%

 

1.14

%

 

1.00

%

 

0.92

%

 

0.85

%

Allowance for loan losses to total NPLs

 

118.89

 

 

132.85

 

 

111.02

 

 

89.79

 

 

64.81

 

Allowance for loan losses to total NPAs

 

113.10

 

 

119.31

 

 

93.29

 

 

77.68

 

 

60.83

 

Net (recoveries)/charge-offs to average loans

 

(0.02

)

 

0.07

 

 

0.13

 

 

0.12

 

 

0.18

 

NPLs to total loans

 

1.00

 

 

0.86

 

 

0.90

 

 

1.03

 

 

1.13

 

NPAs to total assets

 

0.62

 

 

0.58

 

 

0.67

 

 

0.75

 

 

0.91

 

NPAs to total loans and other real estate owned

 

1.06

 

 

0.96

 

 

1.07

 

 

1.19

 

 

1.39

 

 

 

 

 

 

 

 

 

 

 

 

AVERAGE BALANCES

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

1,774,123

 

 

$

1,797,749

 

 

$

1,766,717

 

 

$

1,702,902

 

 

$

1,516,191

 

Loans, net

 

1,079,007

 

 

1,151,872

 

 

1,130,231

 

 

1,094,299

 

 

974,614

 

Deposits

 

1,475,944

 

 

1,456,287

 

 

1,140,487

 

 

1,384,739

 

 

1,293,784

 

Total stockholders’ equity

 

145,515

 

 

141,570

 

 

139,721

 

 

137,213

 

 

134,304

 

(a) Computed using fully taxable-equivalent net income.

(b) Non-GAAP measure - see “Explanation of Certain Unaudited Non-GAAP Financial Measures” for more information and reconciliation to GAAP

 

Colony Bankcorp, Inc.

Average Balance Sheet and Net Interest Analysis

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

2021

 

2020

 

Average

Balances

 

Income/

Expense

 

Yields/

Rates

 

Average

Balances

 

Income/

Expense

 

Yields/

Rates

Assets

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

Loans, net of unearned income 1

$

1,079,007

 

 

$

13,638

 

 

5.13

%

 

$

980,185

 

 

$

13,352

 

 

5.52

%

Investment securities, taxable

371,265

 

 

1,628

 

 

1.78

%

 

339,565

 

 

1,988

 

 

2.37

%

Investment securities, tax-exempt 2

32,616

 

 

155

 

 

1.93

%

 

923

 

 

7

 

 

3.08

%

Deposits in banks and short term investments

183,376

 

 

53

 

 

0.12

%

 

85,869

 

 

284

 

 

1.34

%

Total interest-earning assets

1,666,264

 

 

15,474

 

 

3.77

%

 

1,406,542

 

 

15,631

 

 

4.51

%

Noninterest-earning assets

107,859

 

 

 

 

 

 

103,381

 

 

 

 

 

Total assets

$

1,774,123

 

 

 

 

 

 

$

1,509,923

 

 

 

 

 

Liabilities and stockholders' equity

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

Interest-earning demand and savings

$

859,462

 

 

$

165

 

 

0.08

%

 

$

734,102

 

 

$

936

 

 

0.52

%

Other time

260,438

 

 

488

 

 

0.76

%

 

334,811

 

 

1,282

 

 

1.55

%

Total interest-bearing deposits

1,119,900

 

 

653

 

 

0.24

%

 

1,068,913

 

 

2,218

 

 

0.84

%

Federal Home Loan Bank advances

22,500

 

 

113

 

 

2.05

%

 

45,577

 

 

257

 

 

2.29

%

Paycheck Protection Program Liquidity Facility

60,602

 

 

68

 

 

0.46

%

 

 

 

 

 

%

Other borrowings

61,654

 

 

257

 

 

1.68

%

 

38,792

 

 

389

 

 

4.07

%

Total other interest-bearing liabilities

144,756

 

 

438

 

 

1.23

%

 

84,369

 

 

646

 

 

3.11

%

Total interest-bearing liabilities

1,264,656

 

 

1,091

 

 

0.35

%

 

1,153,282

 

 

2,864

 

 

1.01

%

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

$

356,044

 

 

 

 

 

 

$

220,356

 

 

 

 

 

Other liabilities

7,908

 

 

 

 

 

 

6,068

 

 

 

 

 

Stockholders' equity

145,515

 

 

 

 

 

 

130,217

 

 

 

 

 

Total noninterest-bearing liabilities and stockholders' equity

509,467

 

 

 

 

 

 

356,641

 

 

 

 

 

Total liabilities and stockholders' equity

$

1,774,123

 

 

 

 

 

 

$

1,509,923

 

 

 

 

 

Interest rate spread

 

 

 

 

3.42

%

 

 

 

 

 

3.50

%

Net interest income

 

 

$

14,383

 

 

 

 

 

 

$

12,767

 

 

 

Net interest margin

 

 

 

 

3.50

%

 

 

 

 

 

3.68

%

_________________________________________

1The average balance of loans includes the average balance of nonaccrual loans. Income on such loans is recognized and recorded on the cash basis. Taxable-equivalent adjustments totaling $66,000 and $55,000 for the quarter ended March 31, 2021 and 2020, respectively, are included in income and fees on loans. Accretion income of $209,000 and $182,000 for the quarter ended March 31, 2021 and 2020 are also included in income and fees on loans.

2Taxable-equivalent adjustments totaling $33,000 and $2,000 quarter ended March 31, 2021 and 2020, respectively, are included in tax-exempt interest on investment securities. The adjustments are based on federal tax rate of 21% and a Georgia state tax rate of 5.75% with appropriate reductions for the effect of disallowed interest expense incurred in carrying tax-exempt obligations.

 
 

Colony Bankcorp, Inc.

 

 

Segment Reporting

 

 

 

 

2021

 

2020

(dollars in thousands)

 

First Quarter

 

Fourth Quarter

 

Third Quarter

 

Second Quarter

 

First Quarter

Banking Division

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

13,985

 

 

$

14,752

 

 

$

13,631

 

 

$

13,440

 

 

$

12,656

 

Provision for loan losses

 

500

 

 

1,296

 

 

1,106

 

 

2,200

 

 

1,956

 

Noninterest income

 

3,005

 

 

3,952

 

 

4,139

 

 

2,901

 

 

3,049

 

Noninterest expenses

 

11,960

 

 

11,656

 

 

12,415

 

 

10,158

 

 

11,667

 

Income taxes

 

1,160

 

 

973

 

 

2,967

 

 

842

 

 

368

 

Segment income

 

$

3,370

 

 

$

4,779

 

 

$

1,282

 

 

$

3,141

 

 

$

1,714

 

 

 

 

 

 

 

 

 

 

 

 

Total segment assets

 

$

1,755,667

 

 

$

1,709,696

 

 

$

1,666,742

 

 

$

1,726,219

 

 

$

1,497,788

 

 

 

 

 

 

 

 

 

 

 

 

Full time employees

 

291

 

 

305

 

 

312

 

 

321

 

 

319

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage Banking Division

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

168

 

 

$

299

 

 

$

188

 

 

$

82

 

 

$

34

 

Provision for loan losses

 

 

 

 

 

 

 

 

 

 

Noninterest income

 

3,986

 

 

3,420

 

 

2,612

 

 

1,821

 

 

1,253

 

Noninterest expenses

 

2,793

 

 

2,835

 

 

2,410

 

 

1,697

 

 

1,195

 

Income taxes

 

354

 

 

188

 

 

820

 

 

43

 

 

11

 

Segment income

 

$

1,007

 

 

$

696

 

 

$

(430)

 

 

$

163

 

 

$

81

 

 

 

 

 

 

 

 

 

 

 

 

Total segment assets

 

$

27,478

 

 

$

50,266

 

 

$

50,265

 

 

$

17,578

 

 

$

11,082

 

 

 

 

 

 

 

 

 

 

 

 

Full time employees

 

51

 

 

43

 

 

41

 

 

40

 

 

34

 

 

 

 

 

 

 

 

 

 

 

 

Small Business Specialty Lending Division

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

130

 

 

$

100

 

 

$

1,483

 

 

$

19

 

 

$

14

 

Provision for loan losses

 

 

 

 

 

 

 

 

 

 

Noninterest income

 

1,585

 

 

667

 

 

1,183

 

 

121

 

 

259

 

Noninterest expenses

 

1,029

 

 

1,495

 

 

924

 

 

1,520

 

 

516

 

Income taxes

 

144

 

 

(153)

 

 

198

 

 

(290)

 

 

(51)

 

Segment income

 

$

542

 

 

$

(575)

 

 

$

1,544

 

 

$

(1,090)

 

 

$

(192)

 

 

 

 

 

 

 

 

 

 

 

 

Total segment assets

 

$

107,623

 

 

$

405

 

 

$

107,623

 

 

$

405

 

 

$

1,178

 

 

 

 

 

 

 

 

 

 

 

 

Full time employees

 

23

 

 

21

 

 

15

 

 

13

 

 

12

 

 

 

 

 

 

 

 

 

 

 

 

Total Consolidated

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

14,283

 

 

$

15,151

 

 

$

15,302

 

 

$

13,541

 

 

$

12,704

 

Provision for loan losses

 

500

 

 

1,296

 

 

1,106

 

 

2,200

 

 

1,956

 

Noninterest income

 

8,576

 

 

8,039

 

 

7,934

 

 

4,843

 

 

4,561

 

Noninterest expenses

 

15,782

 

 

15,986

 

 

15,749

 

 

13,375

 

 

13,378

 

Income taxes

 

1,658

 

 

1,008

 

 

3,985

 

 

595

 

 

328

 

Segment income

 

$

4,919

 

 

$

4,900

 

 

$

2,396

 

 

$

2,214

 

 

$

1,603

 

 

 

 

 

 

 

 

 

 

 

 

Total segment assets

 

$

1,890,768

 

 

$

1,763,974

 

 

$

1,824,630

 

 

$

1,744,202

 

 

$

1,510,048

 

 

 

 

 

 

 

 

 

 

 

 

Full time employees

 

365

 

 

369

 

 

368

 

 

374

 

 

365

 

 

Colony Bankcorp, Inc.

Consolidated Balance Sheets

 

 

March 31, 2021

 

December 31, 2020

(dollars in thousands)

 

(unaudited)

 

(audited)

ASSETS

 

 

 

 

Cash and due from banks

 

$

16,150

 

 

$

17,218

 

Interest-bearing deposits in banks and federal funds sold

 

 

165,438

 

 

 

166,288

 

Cash and cash equivalents

 

 

181,588

 

 

 

183,506

 

Investment securities available for sale, at fair value

 

 

433,729

 

 

 

380,814

 

Other investments, at cost

 

 

2,703

 

 

 

3,296

 

Loans held for sale

 

 

28,429

 

 

 

52,386

 

Loans, net of unearned income

 

 

1,062,775

 

 

 

1,059,503

 

Allowance for loan losses

 

 

(12,693

)

 

 

(12,127

)

Loans, net

 

 

1,050,082

 

 

 

1,047,376

 

Premises and equipment

 

 

32,790

 

 

 

32,057

 

Other real estate

 

 

518

 

 

 

1,006

 

Goodwill and other intangible assets

 

 

18,673

 

 

 

18,558

 

Bank owned life insurance

 

 

31,581

 

 

 

31,547

 

Other assets

 

 

18,953

 

 

 

13,428

 

Total assets

 

$

1,799,046

 

 

$

1,763,974

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

Liabilities:

 

 

 

 

Deposits:

 

 

 

 

Noninterest-bearing

 

$

384,830

 

 

$

326,999

 

Interest-bearing

 

 

1,141,054

 

 

 

1,118,028

 

Total deposits

 

 

1,525,884

 

 

 

1,445,027

 

Federal Home Loan Bank advances

 

 

22,500

 

 

 

22,500

 

Paycheck Protection Program Liquidity Facility

 

 

60,602

 

 

 

106,789

 

Other borrowed money

 

 

37,542

 

 

 

37,792

 

Accrued expenses and other liabilities

 

 

9,031

 

 

 

7,378

 

Total liabilities

 

 

1,655,559

 

 

 

1,619,486

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

Common stock, $1 par value; 20,000,000 shares authorized, 9,498,783 issued and outstanding, respectively

 

 

9,499

 

 

 

9,499

 

Paid in capital

 

 

43,224

 

 

 

43,215

 

Retained earnings

 

 

88,939

 

 

 

84,993

 

Accumulated other comprehensive income, net of tax

 

 

1,825

 

 

 

6,781

 

Total stockholders’ equity

 

 

143,487

 

 

 

144,488

 

Total liabilities and stockholders’ equity

 

$

1,799,046

 

 

$

1,763,974

 

 
 

Colony Bankcorp, Inc.

 

 

 

 

Consolidated Statements of Income (unaudited)

 

 

 

 

 

 

Three months ended March 31,

 

 

2021

 

2020

(dollars in thousands, except per share data)

 

 

Interest income:

 

 

 

 

Loans, including fees

 

$

13,572

 

 

13,290

 

Investment securities, including tax exempt of $122 and $6, respectively

 

1,750

 

 

1,994

 

Deposits in banks and short term investments

 

53

 

 

284

 

Total interest income

 

15,375

 

 

15,568

 

 

 

 

 

 

Interest expense:

 

 

 

 

Deposits

 

654

 

 

2,218

 

Federal Home Loan Bank advances

 

113

 

 

257

 

Paycheck Protection Program Liquidity Facility

 

68

 

 

 

Other borrowings

 

257

 

 

389

 

Total interest expense

 

1,092

 

 

2,864

 

Net interest income

 

14,283

 

 

12,704

 

Provision for loan losses

 

500

 

 

1,956

 

Net interest income after provision for loan losses

 

13,783

 

 

10,748

 

 

 

 

 

 

Noninterest income:

 

 

 

 

Service charges on deposits

 

1,222

 

 

1,499

 

Mortgage fee income

 

3,995

 

 

1,262

 

Gain on sale of SBA loans

 

1,471

 

 

210

 

(Loss)/Gain on sale of securities

 

(4)

 

 

293

 

Gain on sale of assets

 

 

 

 

Interchange fees

 

1,530

 

 

1,033

 

BOLI Income

 

208

 

 

151

 

Other

 

154

 

 

78

 

Total noninterest income

 

8,576

 

 

4,526

 

 

 

 

 

 

Noninterest expense:

 

 

 

 

Salaries and employee benefits

 

9,955

 

 

7,498

 

Occupancy and equipment

 

1,326

 

 

1,318

 

Acquisition related

 

176

 

 

287

 

Information technology expenses

 

1,592

 

 

1,316

 

Professional fees

 

486

 

 

347

 

Advertising and public relations

 

580

 

 

634

 

Communications

 

218

 

 

191

 

FHLB prepayment penalty

 

 

 

276

 

Other

 

1,449

 

 

1,476

 

Total noninterest expense

 

15,782

 

 

13,343

 

Income before income taxes

 

6,577

 

 

1,931

 

Income taxes

 

1,658

 

 

328

 

Net income

 

$

4,919

 

 

$

1,603

 

Earnings per common share:

 

 

 

 

Basic

 

$

0.52

 

 

$

0.17

 

Diluted

 

0.52

 

 

0.17

 

Dividends declared per share

 

0.10

 

 

0.10

 

Weighted average common shares outstanding:

 

 

 

 

Basic

 

9,498,783

 

 

9,498,783

 

Diluted

 

9,498,783

 

 

9,498,783

 

 

Colony Bankcorp, Inc.

Quarterly Comparison

 

 

2021

 

2020

(dollars in thousands)

 

First Quarter

 

Fourth Quarter

 

Third Quarter

 

Second Quarter

 

First Quarter

Assets

 

$

1,799,047

 

 

$

1,763,974

 

 

$

1,759,446

 

 

$

1,777,568

 

 

$

1,510,048

 

Loans, net

 

1,050,082

 

 

1,047,376

 

 

1,090,586

 

 

1,103,688

 

 

980,642

 

Deposits

 

1,525,884

 

 

1,445,027

 

 

1,416,401

 

 

1,421,758

 

 

1,293,076

 

Total equity

 

143,487

 

 

144,488

 

 

140,346

 

 

138,594

 

 

136,072

 

Net income

 

4,919

 

 

4,900

 

 

3,099

 

 

2,214

 

 

1,603

 

Earnings per basic share

 

$

0.52

 

 

$

0.52

 

 

$

0.33

 

 

$

0.23

 

 

$

0.17

 

 

 

 

 

 

 

 

 

 

 

 

Key Performance Ratios:

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

1.12

%

 

1.08

%

 

0.70

%

 

0.52

%

 

0.42

%

Return on average total equity

 

13.71

%

 

13.73

%

 

8.80

%

 

6.47

%

 

4.79

%

Total equity to total assets

 

7.98

%

 

8.19

%

 

7.98

%

 

7.80

%

 

9.01

%

Tangible equity to tangible assets

 

7.01

%

 

7.21

%

 

7.00

%

 

6.82

%

 

7.83

%

Net interest margin

 

3.50

%

 

3.58

%

 

3.34

%

 

3.41

%

 

3.63

%

 

 

 

 

 

 

 

 

 

 

 

 

Colony Bankcorp, Inc.

Quarterly Loan Comparison

 

 

2021

 

2020

(dollars in thousands)

 

First Quarter

 

Fourth Quarter

 

Third Quarter

 

Second Quarter

 

First Quarter

Core

 

$

888,800

 

 

$

873,426

 

 

$

871,416

 

 

$

855,556

 

 

$

847,100

 

PPP

 

102,633

 

 

101,147

 

 

133,756

 

 

133,158

 

 

 

Purchased

 

71,342

 

 

84,930

 

 

96,434

 

 

125,263

 

 

121,714

 

Total

 

$

1,062,775

 

 

$

1,059,503

 

 

$

1,101,606

 

 

$

1,113,977

 

 

$

968,814

 

 
 

Colony Bankcorp, Inc.

 

 

 

 

 

 

 

 

 

 

Quarterly Loans by Location Comparison

 

 

 

 

 

 

 

 

 

 

2021

 

2020

(dollars in thousands)

 

First Quarter

 

Fourth Quarter

 

Third Quarter

 

Second Quarter

 

First Quarter

Atlanta

 

$

492

 

 

$

562

 

 

$

7,025

 

 

$

7,425

 

 

$

7,527

 

Augusta

 

23,982

 

 

20,432

 

 

22,931

 

 

25,140

 

 

29,504

 

Middle Georgia

 

73,543

 

 

68,838

 

 

60,275

 

 

56,209

 

 

52,858

 

Northwest Georgia

 

1,698

 

 

 

 

 

 

 

 

 

Coastal Georgia

 

235,094

 

 

230,184

 

 

224,604

 

 

223,746

 

 

226,747

 

South Central Georgia

 

371,227

 

 

372,947

 

 

391,702

 

 

398,107

 

 

394,167

 

Southwest Georgia

 

97,575

 

 

104,132

 

 

101,247

 

 

108,070

 

 

110,605

 

West Georgia

 

148,457

 

 

154,819

 

 

152,159

 

 

154,979

 

 

162,225

 

Small Business Specialty Lending

 

7,906

 

 

4,537

 

 

9,281

 

 

1,903

 

 

676

 

Paycheck Protection Program

 

102,633

 

 

101,147

 

 

133,756

 

 

133,158

 

 

 

Purchase Accounting

 

(668)

 

 

(877)

 

 

(1,262)

 

 

(1,196)

 

 

(1,278)

 

Other

 

836

 

 

2,781

 

 

5,948

 

 

6,436

 

 

5,995

 

Total

 

$

1,062,775

 

 

$

1,059,502

 

 

$

1,107,666

 

 

$

1,113,977

 

 

$

989,026

 

 

Colony Bankcorp, Inc.

Quarterly PPP Fees Comparison

 

 

2021

 

2020

(dollars in thousands)

 

First Quarter

 

Fourth Quarter

 

Third Quarter

 

Second Quarter

 

First Quarter

PPP loan fee income

 

$

1,212

 

 

$

1,324

 

 

$

508

 

 

$

576

 

 

$

 

Unearned income on PPP loans

 

3,077

 

 

2,072

 

 

3,396

 

 

3,904

 

 

 

 

Tracie Youngblood
EVP & Chief Financial Officer
(229) 426-6000 (Ext 6003)

Source: Colony Bankcorp, Inc.



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