Colony Bankcorp, Inc. Announces Fourth Quarter Results

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 SUMMARY12/31/2016 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 SUMMARY12/31/2016 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 BALANCES12/31/2016 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 BALANCES12/31/2016 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 QUALITY12/31/2016 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 Ratios4Q2016 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


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

Source:Colony Bankcorp, Inc.