FITZGERALD, Ga., July 19, 2013 (GLOBE NEWSWIRE) -- Colony Bankcorp, Inc. (Nasdaq:CBAN), today reported net income available to shareholders of $611,000, or $0.07 per diluted share for the second quarter of 2013 compared to $403,000, or $0.05 per diluted share for the comparable 2012 period, while net income available to shareholders for six months ended June 30, 2013 was $1,178,000, or $0.14 per diluted share compared to $592,000, or $0.07 per share for the comparable 2012 period. This increase of 98.99 percent in net income for the comparable six month period was primarily driven by an increase in net interest income and noninterest income – along with a reduction in provision for loan losses. "In addition to meaningful core earnings improvement, Colony again had marked improvement in asset quality. Substandard assets to tier one capital plus loan loss allowance ratio improved to 43.00 percent at June 30, 2013 from 45.85 percent at March 31, 2013. Though improvement was once again realized this quarter, we still have much work ahead to meet our goals of reducing our problem assets to an acceptable level and returning to acceptable earnings. Our board, management and staff remain committed to making incremental progress toward these goals during 2013," said Ed Loomis, President and Chief Executive Officer. "Though the economy continues to be less than robust and short term interest rates remain at historic low levels, we are cautiously optimistic that signs of economic recovery are surfacing. We had a modest increase in loans outstanding from the previous quarter end and have a healthy loan pipeline that should result in continued loan growth and core earnings improvement."
Colony continues to maintain a strong capital position to be categorized as "well-capitalized" by regulatory benchmarks. At June 30, 2013, the Company's tier one leverage ratio, tier one and total risk-based capital ratios were 10.36 percent, 15.63 percent and 16.89 percent, respectively, compared to the previous quarter end of 10.18 percent, 15.60 percent and 16.86 percent, respectively, at March 31, 2013 and to 9.71 percent, 15.67 percent and 16.94 percent, respectively, at June 30, 2012. Regulatory benchmarks to be categorized as "well-capitalized" for tier one leverage ratio, tier one and total risk-based capital ratios are 5.00 percent, 6.00 percent and 10.00 percent, respectively.
Net Interest Margin
During the second quarter of 2013, the Company reported net interest income of $9.46 million and a net interest margin of 3.64 percent, compared to $9.09 million and 3.39 percent, respectively, for second quarter 2012, while net interest income for first half 2013 was $18.50 million and a net interest margin of 3.55 percent compared to $17.98 million and 3.31 percent, respectively, for first half 2012. The improvement is indicative of the Company's focus on balance sheet restructuring and maximizing its net interest margin through deposit and loan pricing guidance.
The Company continues to closely monitor our substandard and non-performing assets and focus on problem asset resolution. Substandard assets that include non-performing assets totaled $58.15 million at June 30, 2013 compared to $61.91 million and $87.75 million, respectively, at March 31, 2013 and June 30, 2012. Substandard assets adjusted for SBA guarantees to tier one capital plus loan loss reserve ratio was 43.00%, 45.85% and 67.97%, respectively, at June 30, 2013, March 31, 2013 and June 30, 2012. Non-performing assets increased slightly from the previous quarter end to $41.18 million or 5.42 percent of total loans and other real estate owned as of June 30, 2013. This compares to $39.58 million or 5.24 percent and $53.97 million or 7.35 percent, respectively, as of March 31, 2013 and June 30, 2012. Loan loss reserve methodology resulted in six months ended June 30, 2013 provision for loan losses of $2.70 million compared to $3.89 million for the comparable 2012 period. As we begin to see stabilization in the economy and the housing and real estate market, we expect continued improvement in our substandard assets. Several pending transactions upon closing in the near term will result in further improvement in substandard and non-performing assets.
Other real estate ("OREO") totaled $16.13 million at June 30, 2013 compared to $15.94 million and $18.77 million, respectively, at December 31, 2012 and March 31, 2013. During first half 2013, $6.34 million has been added to OREO, thus a reduction from sales and/or write-downs of $6.15 million. An auction conducted in late June will result in additional reduction upon consummation of the sales contracts. Colony has established a target of twelve months to liquidate improved properties due to the high carrying cost of taxes, insurance, maintenance and repairs associated with holding these properties on our books.
In the second quarter of 2013 net charge-offs were $1.17 million, or 0.16 percent of average loans as compared to net charge-offs of $2.56 million, or 0.36 percent of average loans in second quarter 2012, while first half 2013 net charge-offs were $2.48 million, or 0.34 percent of average loans as compared to net charge-offs of $4.24 million, or 0.60 percent of average loans in first half 2012. The loan loss reserve was $12.96 million on June 30, 2013, or 1.74 percent of total loans compared to $12.93 million, or 1.76 percent on March 31, 2013 and to $15.29 million, or 2.13 percent on June 30, 2012. Management believes that the 2013 contributions to Allowance for Loan Losses address the level of non-performing assets and the related level of substandard assets to be adequately reserved at June 30, 2013.
Total noninterest income increased in the comparable periods as noninterest income for six months ended June 30, 2013 was $4.25 million compared to $4.19 million in the comparable 2012 period, or an increase of 1.48 percent. Service charge fee income on deposit accounts increased $638 thousand, or 39.63 percent. Mortgage fee income increased $67 thousand, or 34.72 percent and gains on the sale of SBA/USDA loans increased $145 thousand, or 70.05 percent. Offsetting these increases was security gains and losses in which losses were $2 thousand for first half 2013 compared to gains of $880 thousand for first half 2012. The company continues to explore revenue enhancement products and services to improve fee income.
Total noninterest expense increased to $17.13 million in six months ended June 30, 2013 compared to $16.39 million in the comparable 2012 period, or an increase of 4.53 percent. Credit-related expenses continue to be a strain on earnings as write down and losses on OREO property and repossessed assets along with repossession and foreclosure expenses totaled $2.08 million in six months ended June 30, 2013 compared to $1.83 million in the comparable 2012 period. Salaries and employee benefit expenses increased to $8.32 million in six months ended June 30, 2013 compared to $7.65 million in the comparable 2012 period, or an increase of 8.69 percent. This increase is primarily attributable to an increase in headcount related to additional "back-office" regulatory compliance demands along with merit pay increases. Occupancy expenses remained flat in the comparable periods. Other noninterest expense increased to $6.95 million compared to $6.83 million, or an increase of 1.62 percent.
Colony Bankcorp, Inc. is a bank holding company headquartered in Fitzgerald, Georgia that consists of one operating subsidiary, Colony Bank. The Company conducts a general full service commercial, consumer and mortgage banking business through twenty eight offices located in the central, southern and coastal Georgia cities of Albany, Ashburn, Broxton, Centerville, Chester, Columbus, Cordele, Douglas, Eastman, Fitzgerald, Leesburg, Moultrie, Pitts, Quitman, Rochelle, Savannah, Soperton, 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.
|COLONY BANKCORP, INC.|
|FINANCIAL HIGHLIGHTS (UNAUDITED)|
|DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA|
|Net Interest Income||$9,455||$9,091||$18,501||$17,975|
|Provision for Loan Losses||1,200||1,943||2,700||3,885|
|Preferred Stock Dividend||375||357||745||709|
|Net Income Available to Common Shareholders||611||403||1,178||592|
|PER COMMON SHARE SUMMARY||06/30/13||06/30/12||06/30/13||06/30/12|
|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||8,439,258||8,439,258||8,439,258||8,439,258|
|Earnings Per Basic Share (b)||$0.07||$0.05||$0.14||$0.07|
|Earnings Per Diluted Share (b)||$0.07||$0.05||$0.14||$0.07|
|Common Book Value Per Share||$7.56||$8.21||$7.56||$8.21|
|Tangible Common Book Value Per Share||$7.54||$8.18||$7.54||$8.18|
|OPERATING RATIOS (1)||06/30/13||06/30/12||06/30/13||06/30/12|
|Net Interest Margin (a)||3.64%||3.39%||3.55%||3.31%|
|Return on Average Assets (b)||0.22%||0.14%||0.21%||0.10%|
|Return on Average Total Equity (b)||2.56%||1.66%||2.47%||1.22%|
|(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.|
|Loans, Net of Reserves||730,920||700,917|
|Allowance for Loan Losses||12,957||15,293|
|Common Shareholders' Equity||63,828||69,265|
|Common Equity to Total Assets||5.77%||6.11%|
|Total Equity to Total Assets||8.29%||8.56%|
|Loans, Net of Reserves||727,288||696,355||725,456||694,397|
|Common Shareholders' Equity||67,667||69,282||67,700||69,065|
|Net Loan Chg-offs (Recoveries)||1,173||2,560||2,480||4,242|
|Reserve for Loan Loss to Total Loans||1.74%||2.13%||1.74%||2.13%|
|Reserve for Loan Loss to Non-performing Loans||52.49%||42.85%||52.49%||42.85%|
|Reserve for Loan Loss to Non-performing Assets||31.46%||28.34%||31.46%||28.34%|
|Net Loan Chg-offs (Recoveries) to Avg. Total Loans||0.16%||0.36%||0.34%||0.60%|
|Nonperforming Loans to Total Loans||3.32%||4.98%||3.32%||4.98%|
|Nonperforming Assets to Total Assets||3.72%||4.76%||3.72%||4.76%|
|Nonperforming Assets to Total Loans And Other Real Estate||5.42%||7.35%||5.42%||7.35%|
|Substandard Assets to Tier One Capital and Allowance for Loan Losses||43.00%||67.97%||43.00%||67.97%|
|Quarterly Comparative Data (in thousands, except per share data)|
|Common Shareholders' Equity||63,828||67,567||67,932||68,584||69,265|
|Net Income Available to Common Shareholders||611||567||203||411||403|
|Net Income Per Share||0.07||0.07||0.02||0.05||0.05|
|Key Performance Ratios||2Q2013||1Q2013||4Q2012||3Q2012||2Q2012|
|Return on Average Assets (1)||0.22%||0.20%||0.07%||0.15%||0.14%|
|Return on Average Total Equity (1)||2.56%||2.37%||0.85%||1.69%||1.66%|
|Common Equity to Total Assets||5.77%||6.04%||5.96%||6.25%||6.11%|
|Total Equity to Total Assets||8.29%||8.53%||8.40%||8.78%||8.56%|
|Net Interest Margin||3.64%||3.45%||3.49%||3.56%||3.39%|
|(1) Computed using net income available to shareholders|
|Consolidated Balance Sheets Colony Bankcorp, Inc.|
|June 30, 2013||Dec. 31, 2012||June 30, 2012|
|Cash and Cash Equivalents|
|Cash and Due from Banks||$17,051||$29,244||$21,770|
|Federal Funds Sold||9,918||20,002||40,836|
|Available for Sale, at Fair Value||267,131||268,301||294,945|
|Held for Maturity, at Cost (Fair Value of $38, $42 and $45 as of June 30, 2013, Dec. 31, 2012 and June 30, 2012, Respectively)||38||41||44|
|Federal Home Loan Bank Stock, at Cost||3,164||3,364||4,159|
|Allowance for Loan Losses||(12,957)||(12,737)||(15,293)|
|Unearned Interest and Fees||(266)||(234)||(151)|
|Premises and Equipment||25,035||24,916||25,474|
|Other Real Estate||16,128||15,941||17,915|
|Other Intangible Assets||206||224||241|
|LIABILITIES AND STOCKHOLDERS' EQUITY|
|Other Borrowed Money||40,000||35,000||35,000|
|Preferred Stock, Stated Value $1,000 a Share; Authorized 10,000,000 Shares, Issued 28,000 Shares||27,912||27,827||27,744|
|Common Stock, Par Value $1 a share; Authorized 20,000,000 Shares, Issued 8,439,258 Shares as of June 30, 2013, Dec. 31, 2012 and June 30, 2012, Respectively||8,439||8,439||8,439|
|Paid in Capital||29,145||29,145||29,145|
|Accumulated Other Comprehensive Loss, Net of Tax||(5,346)||(150)||1,714|
|Total Liabilities and Stockholders' Equity||$1,106,454||$1,139,397||$1,133,170|
|Consolidated Statements of Income Colony Bankcorp, Inc.|
|(in thousands except per share data)|
|Three Months Ended||Six Months Ended|
|Loans, Including Fees||$10,359||$10,433||$20,720||$20,853|
|Federal Funds Sold||6||30||20||56|
|Deposits with Other Banks||5||10||16||30|
|U.S. Government Agencies||862||1,390||1,574||3,009|
|State, County and Municipal||31||65||64||131|
|Corporate Obligations/Asset-Backed Sec.||14||25||28||48|
|Dividends on Other Investments||19||20||38||37|
|Net Interest Income||9,455||9,091||18,501||17,975|
|Provision for Loan Losses||1,200||1,943||2,700||3,885|
|Net Interest Income After Provision for Loan Losses||8,255||7,148||15,801||14,090|
|Service Charges on Deposits||1,147||814||2,248||1,610|
|Other Service Charges, Commissions and Fees||443||328||847||747|
|Mortgage Fee Income||141||112||260||193|
|Salaries and Employee Benefits||4,149||3,833||8,318||7,653|
|Occupancy and Equipment||935||963||1,868||1,901|
|Income Before Income Taxes||1,556||1,117||2,920||1,890|
|Preferred Stock Dividends||375||357||745||709|
|Net Income Available to Common Shareholders||$611||$403||$1,178||$592|
|Net Income Per Share of Common Stock|
|Weighted Average Basic Shares Outstanding||8,439,258||8,439,258||8,439,258||8,439,258|
|Weighted Average Diluted Shares Outstanding||8,439,258||8,439,258||8,439,258||8,439,258|
CONTACT: Terry L. Hester Chief Financial Officer (229) 426-6002Source:Colony Bankcorp, Inc.