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Colony Bankcorp, Inc. Announces First Quarter Results

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FITZGERALD, Ga., April 18, 2018 (GLOBE NEWSWIRE) -- Colony Bankcorp, Inc. (NASDAQ:CBAN), today reported net income available to shareholders of $3,188,000, or $0.37 per diluted share for the first quarter of 2018 compared to $1,906,000, or $0.22 per diluted share for the comparable 2017 period.  This represents an increase of 67.3 percent.  Earnings were positively impacted by an increase in net interest income and noninterest income and a reduction in preferred stock dividends, loan loss provision and income tax expense.  "We are pleased to report an outstanding quarter for Colony, said Ed Loomis, President and Chief Executive Officer.  The lower tax rate with the new tax reform act signed into law in December 2017 resulted in the company's income tax expense on taxable income being lowered by $560,000.  Colony's strong earnings and capital position resulted in the board increasing the quarterly dividend payout from $0.025 to $0.05.  Economic activity continues to improve and should parlay into increased loan demand in 2018.  Expansion is once again in our strategic planning as Colony recently purchased property for a full service branch in Statesboro, Georgia that is slated to open in late 2018.  As always, we continue to explore opportunities to improve operating efficiencies which will further enhance shareholder value."

Capital

Colony continues to maintain a strong regulatory capital position to be categorized as "well-capitalized" by regulatory benchmarks.  At March 31, 2018, the Company's tier one leverage ratio, tier one ratio, total risk-based capital ratio and common equity tier one capital ratio were 10.14 percent, 14.97 percent,15.88 percent and 12.11 percent, respectively, compared to 9.89 percent, 14.64 percent, 15.56 percent  and 11.78  percent, respectively, at December 31, 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 first quarter of 2018, the Company reported net interest income of $10.13 million and a net interest margin of 3.55 percent compared to $9.46 million and 3.35 percent, respectively, for the comparable 2017 period.  With the recent interest rate hikes by the Federal Reserve, we are beginning to have pressure to raise our deposit rates which in the short term could negatively impact our margin.   Our focus in 2018 will be on loan and deposit pricing along with loan growth to maintain or improve its' net interest margin.

Asset Quality

Asset quality remains solid with marked improvement from a year ago.  Substandard assets that include non-performing assets totaled $27.94 million at March 31, 2018 compared to $26.19 million and $32.00 million, respectively, at December 31, 2017 and March 31, 2017.  Substandard assets adjusted for SBA guarantees to tier one capital plus loan loss reserve ratio was 20.71 percent, 20.18 percent and 25.18 percent, respectively, at March 31, 2018, December 31, 2017 and March 31, 2017.  Non-performing assets decreased significantly from the year ago period to $10.35 million or 1.34 percent of total loans and other real estate owned as of March 31, 2018.  This compares to $17.15 million or 2.24 percent at March 31, 2017.       

Other real estate ("OREO") totaled $3.89 million at March 31, 2018 compared to $4.26 million and $5.90 million, respectively, at December 31, 2017 and March 31, 2017.   We continue to work diligently to dispose these properties at fair value as evidenced by the sale of OREO property during the quarter that resulted in a gain of $114 thousand.

In the first quarter of 2018 net charge-offs were $66 thousand, or 0.01 percent of average loans as compared to net charge-offs of $394 thousand, or 0.05 percent of average loans in first quarter 2017.  The loan loss reserve was $7.47 million or 0.97 percent of total loans on March 31, 2018 compared to $7.51 million or 0.98 percent and $8.86 million or 1.17 percent, respectively, at December 31, 2017 and March 31, 2017.  Loan loss reserve methodology resulted in $26 thousand  loan loss provision for three months ended March 31, 2018  compared to $335 thousand for the comparable 2017 period.

Noninterest Income

Total noninterest income increased in the comparable periods as noninterest income for three months ended March 31, 2018 was $2.44 million compared to $2.40 million in the comparable 2017 period, or an increase of 1.46 percent.  Service charges on deposits increased $46 thousand, or 4.36 percent and gain on sale of OREO and other assets increased $133 thousand, or 724.80 percent compared to the comparable period.  Offset to these increases was mortgage fee income which decreased $37 thousand, or 19.89 percent and rental income on OREO properties which decreased $40 thousand, or 52.98 percent.    

Noninterest Expense

Total noninterest expense increased in the comparable periods as noninterest expense for three months ended March 31, 2018 was $8.54 million compared to $8.41 million for the comparable 2017 period, or an increase of 1.55 percent.  Salaries and employee benefit expenses increased 2.82 percent, occupancy expense increased 8.96 percent and other noninterest expense decreased 3.45 percent for the comparable periods.  The efficiency ratio improved to 67.87 percent for three months ended March 31, 2018 compared to 70.67 percent for the comparable 2017 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-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.

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

Consolidated Balance Sheets Colony Bankcorp, Inc.          
(in thousands)          
           
  March 31, 2018   December 31, 2017   March 31, 2017
  (unaudited)   (audited)   (unaudited)
ASSETS          
Cash and Cash Equivalents          
Cash and Due from Banks $   9,797     $   23,145     $   22,099  
Interest-Bearing Deposits   42,167       34,668       28,563  
Investment Securities          
Available for Sale, at Fair Value   341,620       354,247       341,932  
Federal Home Loan Bank Stock, at Cost   3,169       3,043       3,043  
Loans   768,497       765,284       760,341  
Allowance for Loan Losses   (7,467 )     (7,507 )     (8,864 )
Unearned Interest and Fees   (571 )     (495 )     (421 )
    760,459       757,282       751,056  
Premises and Equipment   28,561       27,639       27,812  
Other Real Estate   3,892       4,256       5,899  
Other Intangible Assets   36       45       72  
Other Assets   28,719       28,430       28,289  
Total Assets $ 1,218,420     $ 1,232,755     $ 1,208,765  
           
           
LIABILITIES AND STOCKHOLDERS' EQUITY          
           
Deposits          
Noninterest-Bearing $ 176,755     $ 190,929     $ 158,587  
Interest-Bearing   875,598       877,057       885,644  
    1,052,353       1,067,986       1,044,231  
Borrowed Money          
Subordinated Debentures   24,229       24,229       24,229  
Other Borrowed Money   48,500       47,500       51,008  
    72,729       71,729       75,237  
           
Other Liabilities   3,372       2,717       3,436  
           
Stockholders' Equity          
Common Stock, Par Value $1 a share; Authorized          
20,000,000 Shares, Issued 8,439,258 Shares as of          
March 31, 2018, Dec. 31, 2017 and March 31, 2017,          
Respectively   8,439       8,439       8,439  
Paid in Capital   29,145       29,145       29,145  
Retained Earnings   61,997       59,231       53,161  
Accumulated Other Comprehensive Loss, Net of Tax   (9,615 )     (6,492 )     (4,884 )
    89,966       90,323       85,861  
Total Liabilities and Stockholders' Equity $ 1,218,420     $ 1,232,755     $ 1,208,765  
           


Consolidated Statements of Income Colony Bankcorp, Inc.
(in thousands except per share data)
  Quarter   Year-to-Date
  Three Months Ended   Three Months Ended
  3/31/2018   3/31/2017   3/31/2018   3/31/2017
  (unaudited)   (unaudited)   (unaudited)   (unaudited)
Interest Income              
Loans, Including Fees $ 9,728   $ 9,397   $ 9,728   $ 9,397
Deposits with Other Banks   75     80     75     80
Investment Securities              
U. S. Government Agencies   1,911     1,563     1,911     1,563
State, County and Municipal   27     30     27     30
Corporate Debt   28     15     28     15
Dividends on Other Investments   41     36     41     36
    11,810     11,121     11,810     11,121
Interest Expense              
Deposits   1,200     1,191     1,200     1,191
Federal Funds Purchased   -     -     -     -
Borrowed Money   481     468     481     468
    1,681     1,659     1,681     1,659
Net Interest Income   10,129     9,462     10,129     9,462
Provision for Loan Losses   26     335     26     335
Net Interest Income After Provision for Loan Losses   10,103     9,127     10,103     9,127
               
Noninterest Income              
Service Charges on Deposits   1,101     1,055     1,101     1,055
Other Service Charges, Commissions and Fees   776     787     776     787
Mortgage Fee Income   149     186     149     186
Securities Gains (Losses)   -     -     -     -
Other   409     372     409     372
    2,435     2,400     2,435     2,400
Noninterest Expense              
Salaries and Employee Benefits   4,920     4,785     4,920     4,785
Occupancy and Equipment   1,046     960     1,046     960
Other   2,571     2,663     2,571     2,663
    8,537     8,408     8,537     8,408
               
Income Before Income Taxes   4,001     3,119     4,001     3,119
Income Taxes   813     1,002     813     1,002
Net Income   3,188     2,117     3,188     2,117
               
Preferred Stock Dividends   -     211     -     211
               
Net Income Available to Common Shareholders $ 3,188   $ 1,906   $ 3,188   $ 1,906
Net Income Per Share of Common Stock              
Basic $ 0.38   $ 0.23   $ 0.38   $ 0.23
Diluted $ 0.37   $ 0.22   $ 0.37   $ 0.22
Cash Dividends Declared Per Share $ 0.05   $ 0.025   $ 0.05   $ 0.025
Weighted Average Basic Shares Outstanding   8,439,258     8,439,258     8,439,258     8,439,258
Weighted Average Diluted Shares Outstanding   8,657,379     8,634,468     8,657,379     8,634,468
               


FINANCIAL HIGHLIGHTS (UNAUDITED)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
                 
  QUARTER ENDED   YEAR-TO-DATE  
EARNINGS SUMMARY 3/31/2018   3/31/2017   3/31/2018   3/31/2017  
Net Interest Income $ 10,129   $ 9,462   $ 10,129   $ 9,462  
Provision for Loan Losses   26     335     26     335  
Non-interest Income   2,435     2,400     2,435     2,400  
Non-interest Expense   8,537     8,408     8,537     8,408  
Income Taxes   813     1,002     813     1,002  
Net Income   3,188     2,117     3,188     2,117  
Preferred Stock Dividend   -     211     -     211  
Net Income Available to                
Common Shareholders   3,188     1,906     3,188     1,906  
                 
                 
                 
  QUARTER ENDED   YEAR-TO-DATE  
PER COMMON SHARE SUMMARY 3/31/2018   3/31/2017   3/31/2018   3/31/2017  
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   8,657,379     8,634,468     8,657,379     8,634,468  
Earnings Per Basic Share (b) $0.38   $0.23   $0.38   $0.23  
Earnings Per Diluted Share (b) $0.37   $0.22   $0.37   $0.22  
Cash Dividends Declared Per Share $0.05   $0.025   $0.05   $0.025  
Common Book Value Per Share $10.66   $10.17   $10.66   $10.17  
Tangible Common Book Value Per Share $10.66   $10.17   $10.66   $10.17  
                 


  QUARTER ENDED   YEAR-TO-DATE
OPERATING RATIOS (1) 3/31/2018   3/31/2017   3/31/2018   3/31/2017
Net Interest Margin (a) 3.55%   3.35%   3.55%   3.35%
Return on Average Assets (b) 1.06%   0.63%   1.06%   0.63%
Return on Average Total Equity (b) 14.17%   8.11%   14.17%   8.11%
Efficiency (c) 67.87%   70.67%   67.87%   70.67%
               

(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.

ENDING BALANCES   3/31/2018   3/31/2017
Total Assets   $ 1,218,420   $ 1,208,765
Loans, Net of Reserves     7,604,459     751,056
Allowance for Loan Losses     7,467     8,864
Intangible Assets     36     72
Deposits     1,052,353     1,044,231
Common Shareholders' Equity     89,966     85,861
Common Equity to Total Assets     7.38%     7.10%
Total Equity     89,966     85,861
Total Equity to Total Assets     7.38%     7.10%
         


    QUARTER ENDED   YEAR-TO-DATE
AVERAGE BALANCES   3/31/2018   3/31/2017   3/31/2018   3/31/2017
Total Assets   $ 1,205,000   $ 1,200,777   $ 1,205,000   $ 1,200,777
Loans, Net of Reserves     753,884     740,206     753,884     740,206
Deposits     1,041,245     1,033,404     1,041,245     1,033,404
Common Shareholders' Equity     89,969     84,841     89,969     84,841
Total Equity     89,969     93,993     89,969     93,993
                 
    QUARTER ENDED   YEAR-TO-DATE
ASSET QUALITY   3/31/2018   3/31/2017   3/31/2018   3/31/2017
Nonperforming Loans   $ 6,453   $ 11,250   $ 6,453   $ 11,250
Nonperforming Assets     10,345     17,149     10,345     17,149
Substandard Assets     27,967     32,003     27,967     32,003
Net Loan Chg-offs (Recoveries)     66     394     66     394
Reserve for Loan Loss to Total Loans     0.97%     1.17%     0.97%     1.17%
Reserve for Loan Loss to Non- performing Loans   115.71%     78.79%     115.71%     78.79%
Reserve for Loan Loss to Non-performing Assets   72.18%     51.69%     72.18%     51.69%
Net Loan Chg-offs (Recoveries)                
to Avg. Total Loans     0.01%     0.05%     0.01%     0.05%
Nonperforming Loans to Total Loans     0.84%     1.48%     0.84%     1.48%
Nonperforming Assets to Total Assets     0.85%     1.42%     0.85%     1.42%
Nonperforming Assets to Total Loans                
And Other Real Estate     1.34%     2.24%     1.34%     2.24%
Substandard Assets to Tier One Capital                
and Allowance for Loan Losses     20.71%     25.18%     20.71%     25.18%
                 


Quarterly Comparative Data (in thousands, except per share data)        
             
  1Q2018   4Q2017   3Q2017   2Q2017   1Q2017    
Assets $ 1,218,420   $ 1,232,755   $ 1,195,393   $ 1,198,449   $ 1,208,765    
Loans   760,459     757,281     761,639     767,069     751,056    
Deposits   1,052,353     1,067,986     1,020,263     1,026,538     1,044,231    
Total Equity   89,966     90,323     91,602     88,992     85,861    
Net Income   3,188     579     2,622     2,433     2,117    
Net Income Available to            
Common Shareholders   3,188     579     2,622     2,433     1,906    
Net Income Per Basic Share   0.38     0.07     0.31     0.29     0.23    
                                 
Key Performance Ratios 1Q2018   4Q2017   3Q2017   2Q2017   1Q2017    
Return on Average Assets (1)   1.06%     0.19%     0.88%     0.81%     0.63%    
Return on Average Total Equity (1)   14.17%     2.52%     11.57%     11.10%     8.11%    
Total Equity to Total Assets   7.38%     7.33%     7.66%     7.43%     7.10%    
Net Interest Margin   3.55%     3.50%     3.50%     3.49%     3.35%    
             
(1) Computed using net income available to shareholders        

 

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