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Colony Bankcorp, Inc. Announces Fourth Quarter Results



Colony Bankcorp, Inc. Announces Fourth Quarter Results

FITZGERALD, Ga., Feb. 8, 2013 (GLOBE NEWSWIRE) -- Colony Bankcorp, Inc.
(Nasdaq:CBAN), today reported net income available to shareholders of
$203,000, or $0.02 per diluted share for the fourth quarter of 2012 compared
to net income available to shareholders of $31,000, or $0.00 per diluted share
for the comparable 2011 period, while net income available to shareholders for
twelve months ended December 31, 2012 was $1,206,000, or $0.14 per diluted
share compared to $1,134,000, or $0.13 per share for the comparable 2011
period. "Several of our markets are showing signs of general economic
improvement. Specifically some segments of agribusiness have experienced a
record year in terms of price and yield. This is reflected on our balance
sheet as total loans outstanding have increased over the previous quarter end
for the third consecutive quarter. The Company focus continues to be problem
asset resolution and those efforts resulted in further improvement during the
quarter as nonperforming assets decreased to $46.16 million at December 31,
2012 from $51.74 million at September 30, 2012, or a decrease of 10.78
percent, while the substandard assets to tier one equity plus loan loss
allowance ratio improved to 55.60% at December 31, 2012 from 63.87% at
September 30, 2012. 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 committed to making incremental progress toward these
goals during 2012 and we were able to again achieve that this quarter," said
Ed Loomis, President and Chief Executive Officer. "Momentum carrying over from
2012 along with revenue enhancement initiatives bode well for a successful and
rewarding year in 2013."    

Capital

Colony continues to maintain a strong capital position to be categorized as
"well-capitalized" by regulatory benchmarks. At December 31, 2012, the
Company's tier one leverage ratio, tier one and total risk-based capital
ratios were 10.22 percent, 15.22 percent and 16.47 percent, respectively,
compared to the previous quarter end of 10.07 percent, 15.39 percent  and
16.65 percent, respectively, at September 30, 2012 and to 9.51 percent, 15.24
percent and 16.50 percent, respectively, at December 31, 2011. 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 fourth quarter of 2012, the Company reported net interest income of
$9.08 million and a net interest margin of 3.49 percent, compared to $8.84
million and 3.28 percent, respectively, for fourth quarter 2011, while net
interest income for twelve months ended December 31, 2012 was $36.27 million
with a net interest margin of 3.41 percent, compared to $34.99 million with a
net interest margin of 3.11 percent for the comparable 2011 period.  The
improvement is indicative of the Company's focus on maximizing its net
interest margin through deposit and loan pricing guidance and balance sheet
restructuring. Anticipated loan growth along with pricing discipline should
result in continued net interest margin improvement in 2013.   

Asset Quality

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 $74.57 million at December 31, 2012 compared to
$85.04 million and $95.71 million, respectively, at September 30, 2012 and
December 31, 2011. Substandard assets adjusted for SBA guarantees to tier one
capital plus loan loss reserve ratio was 55.60%, 63.87% and 75.32%,
respectively, at December 31, 2012, September 30, 2012 and December 31,
2011. Though much work remains to reduce substandard assets, improvement in
these ratios reflects solid work in addressing and bringing resolution to
substandard assets. Non-performing assets decreased from the previous quarter
end to $46.16 million or 6.05 percent of total loans and other real estate
owned as of December 31, 2012. This compares to $51.74 million or 6.96 percent
and $59.71 million or 8.10 percent, respectively, as of September 30, 2012 and
December 31, 2011.  Loan loss reserve methodology resulted in twelve months
ended December 31, 2012 provision for loan losses of $6.79 million compared to
$8.25 million for the comparable 2011 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.  

Other real estate totaled $20.45 million at year end December 31, 2011
compared to $15.94 million at December 31, 2012. During this period, $9.73
million has been added to other real estate, thus a reduction from sales
and/or write-downs of $14.24 million. This significant movement of properties
in a challenging real estate market is indicative of the commitment by Colony
management to address its problem assets in a timely and prudent
manner. 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 fourth quarter of 2012 net charge-offs were $2.81 million, or 0.38
percent of average loans as compared to net charge-offs of $3.51 million, or
0.48 percent of average loans in fourth quarter 2011, while net charge-offs
for twelve months ended December 31, 2012 were $9.70 million, or 1.34% of
average loans as compared to net charge-offs of $20.88 million, or 2.74% of
average loans for the comparable 2011 period.  The loan loss reserve was
$12.74 million on December 31, 2012, or 1.70 percent of total loans compared
to $15.65 million, or 2.18 percent on December 31, 2011.  Management believes
that the 2012 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 December 31, 2012.

Noninterest Income

Total noninterest income decreased in the comparable periods as noninterest
income for twelve months ended December 31, 2012 was $9.73 million compared to
$9.95 million in the comparable 2011 period. Fee income from the sale of SBA
loans was $306 thousand in twelve months ended December 31, 2012 compared to
$947 thousand in the comparable 2011 period to primarily account for the
decrease.   On a positive note, service charge on deposits increased 10.11%
and mortgage fee income increased 50.38% over the prior comparable period. The
Company began an initiative during 2012 to enhance our secondary mortgage
lending operations. Mortgage lending training was provided to several current
employees to boost our secondary market loan originators. This has resulted in
better penetration in the markets that Colony serves and resulted in increased
mortgage fee income.      

Noninterest Expense

Total noninterest expense increased to $35.38 million in twelve months ended
December 31, 2012 compared to $33.05 million in the comparable 2011 period, or
an increase of 7.05 percent. Credit-related expenses continue to be a strain
on earnings as write down and losses on OREO property and repossession and
foreclosure expenses totaled $5.61 million in twelve months ended December 31,
2012 compared to $4.05 million in the comparable 2011 period. Salaries and
employee benefit expenses increased to $15.57 million in twelve months ended
December 31, 2012 compared to $14.63 million in the comparable 2011 period, or
an increase of 6.43 percent. This increase is primarily attributable to an
increase in headcount related to additional "back-office" regulatory
compliance demands. Occupancy expenses decreased to $3.88 million in twelve
months ended December 31, 2012 compared to $4.00 million in the same
comparable 2011 period, or a decrease of 3.00 percent. The decrease was
primarily attributable to less depreciation expense for the comparable
periods.

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
                                                                     
                                 QUARTER ENDED           YEAR-TO-DATE 
 EARNINGS SUMMARY                12/31/2012  12/31/2011  12/31/2012 12/31/2011
Net Interest Income              $9,076      $8,844      $36,273    $34,987
Provision for Loan Losses        1,158       2,250       6,785      8,250
Non-interest Income              2,642       2,753       9,733      9,951
Non-interest Expense             9,744       8,802       35,379     33,050
Income Taxes                     248         164         1,201      1,104
Net Income                       568         381         2,641      2,534
Preferred Stock Dividend         365         350         1,435      1,400
Net Income Available to                                              
 Common Shareholders             203         31          1,206      1,134
                                                                     
                                 QUARTER ENDED           YEAR-TO-DATE
 PER COMMON SHARE SUMMARY        12/31/2012  12/31/2011  12/31/2012 12/31/2011
Common Shares Outstanding        8,439,258   8,439,258   8,439,258  8,439,258
Weighted Average Basic Shares    8,439,258   8,433,822   8,439,258  8,439,258
Weighted Average Diluted Shares  8,439,258   8,433,822   8,439,258  8,439,258
Earnings Per Basic Share (b)     $0.02       $0.00       $0.14      $0.13
Earnings Per Diluted Share (b)   $0.02       $0.00       $0.14      $0.13
Common Book Value Per Share      $8.05       $8.17       $8.05      $8.17
Tangible Common Book Value Per   $8.02       $8.14       $8.02      $8.14
Share
                                                                     
                                 QUARTER ENDED           YEAR-TO-DATE 
 OPERATING RATIOS (1)            12/31/2012  12/31/2011  12/31/2012 12/31/2011
Net Interest Margin (a)          3.49%       3.28%       3.41%      3.11%
Return on Average Assets (b)     0.07%       0.01%       0.11%      0.09%
Return on Average Total Equity   0.85%       0.13%       1.25%      1.20%
(b) 
Efficiency (c)                   88.67%      82.47%      81.68%     78.31%
                                                                     
(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                   12/31/2012 12/31/2011             
Total Assets                       $1,139,397 $1,195,376             
Loans, Net of Reserves             734,079    700,614                
Allowance for Loan Losses          12,737     15,649                 
Intangible Assets                  224        259                    
Deposits                           979,685    999,985                
Common Shareholders' Equity        67,932     68,950                 
Common Equity to Total Assets      5.96%      5.76%                  
Total Equity                       95,759     96,613                 
Total Equity to Total Assets       8.40%      8.07%                  
                                                                     
                                   QUARTER ENDED         YEAR-TO-DATE 
 AVERAGE BALANCES                  12/31/2012 12/31/2011 12/31/2012 12/31/2011
Total Assets                       $1,114,766 $1,163,000 $1,139,814 $1,205,891
Loans, Net of Reserves             725,672    714,472    706,091    742,423
Deposits                           956,438    965,722    969,690    1,000,719
Common Shareholders' Equity        67,783     69,300     68,798     67,153
Total Equity                       95,587     96,943     96,541     94,737
                                                                     
                                   QUARTER ENDED         YEAR-TO-DATE 
 ASSET QUALITY                     12/31/2012 12/31/2011 12/31/2012 12/31/2011
Nonperforming Loans                $29,855    $38,837    $29,855    $38,837
Nonperforming Assets               46,163     59,708     46,163     59,708
Substandard Assets                 74,574     95,713     74,574     95,713
Net Loan Chg-offs (Recoveries)     2,810      3,510      9,698      20,880
Reserve for Loan Loss to Gross     1.70%      2.18%      1.70%      2.18%
Loans 
Reserve for Loan Loss to           42.66%     40.29%     42.66%     40.29%
Non--performing Loans 
Reserve for Loan Loss to           27.59%     26.21%     27.59%     26.21%
Non--performing Assets
Net Loan Chg-offs (Recoveries) to  0.38%      0.48%      1.34%      2.74%
Avg. Gross Loans 
Nonperforming Loans to Gross       4.00%      5.42%      4.00%      5.42%
Loans 
Nonperforming Assets to Total      4.05%      4.99%      4.05%      4.99%
Assets 
Nonperforming Assets to Total      6.05%      8.10%      6.05%      8.10%
Loans and Other Real Estate 
Substandard Assets to Tier One
Capital and Allowance for Loan     55.60%     75.32%     55.60%     75.32%
Losses 

 
Quarterly Comparative Data (in thousands, except per share data)
                 4Q2012     3Q2012     2Q2012     1Q2012     4Q2011
Assets          $1,139,397 $1,097,437 $1,133,170 $1,176,644 $1,195,376
Loans           734,079    711,971    700,917    690,533    700,614
Deposits        979,685    941,204    972,135    994,014    999,985
Common
Shareholders'   67,932     68,584     69,265     69,422     68,950
Equity 
Total Equity    95,759     96,369     97,009     97,125     96,613
Net Income      568        772        760        541        381
Net Income Available to                                      
 Common         203        411        403        189        31
Shareholders 
 Net Income Per 0.02       0.05       0.05       0.02       0.00
Share 
                                                             
Key Performance  4Q2012     3Q2012     2Q2012     1Q2012     4Q2011 
Ratios 
                                                             
Return on
Average Assets  0.07%      0.15%      0.14%      0.06%      0.01%
(1) 
Return on
Average Total   0.85%      1.69%      1.66%      0.78%      0.13%
Equity (1)
Common Equity
to Total        5.96%      6.25%      6.11%      5.90%      5.76%
Assets 
Total Equity to 8.40%      8.78%      8.56%      8.25%      8.07%
Total Assets 
Net Interest    3.49%      3.56%      3.39%      3.23%      3.28%
Margin 
   (1) Computed using net income available to                                 
shareholders     

 
Consolidated Balance Sheets Colony Bankcorp, Inc.
 (in thousands)
                                                  Dec. 31, 2012  Dec. 31, 2011
                                                   (unaudited)    (audited)
ASSETS                                                            
Cash and Cash Equivalents                                         
 Cash and Due from Banks                          $29,244        $28,380
 Federal Funds Sold                               20,002         54,992
                                                  49,246         83,372
Interest-Bearing Deposits                         21,795         28,957
Investment Securities                                             
 Available for Sale, at Fair Value                268,300        303,891
Held for Maturity, at Cost (Fair Value of $42 and
$46 as of Dec. 31, 2012 and Dec. 31, 2011,        42             46
Respectively) 
                                                  268,342        303,937
Federal Home Loan Bank Stock, at Cost             3,364          5,398
Loans                                             747,050        716,321
 Allowance for Loan Losses                        (12,737)       (15,650)
 Unearned Interest and Fees                       (234)          (57)
                                                  734,079        700,614
Premises and Equipment                            24,916         25,750
Other Real Estate                                 15,941         20,445
Other Intangible Assets                           224            259
Other Assets                                      21,490         26,644
Total Assets                                      $1,139,397     $1,195,376
                                                   
LIABILITIES AND STOCKHOLDERS' EQUITY                              
                                                                  
Deposits                                                          
 Noninterest-Bearing                              $123,967       $94,269
 Interest-Bearing                                 855,718        905,716
                                                  979,685        999,985
                                                                  
Borrowed Money                                                    
 Subordinated Debentures                          24,229         24,229
 Other Borrowed Money                             35,000         71,000
                                                  59,229         95,229
                                                                  
Other Liabilities                                 4,724          3,549
                                                                  
Stockholders' Equity                                              
Preferred Stock, Par Value $1,000; Authorized     27,827         27,662
10,000,000 Shares, Issued 28,000 Shares 
Common Stock, Par Value $1; Authorized 20,000,000
Shares, Issued 8,439,258 and 8,439,258 Shares as  8,439          8,439
of Dec. 31, 2012 and 2011, Respectively 
Paid in Capital                                   29,145         29,145
Retained Earnings                                 30,498         29,457
Accumulated Other Comprehensive Loss, Net of Tax  (150)          1,910
                                                  95,759         96,613
Total Liabilities and Stockholders' Equity        $1,139,397     $1,195,376

 
Consolidated Statements of Income Colony Bankcorp, Inc.
(in thousands except per share data
                                                                     
                              Quarter                 Year-to-Date 
                              Three Months Ended      Twelve Months Ended
                               12/31/12    12/31/2011  12/31/12     12/31/2011
                              (unaudited)  (audited)   (unaudited)   (audited)
Interest Income                                                      
 Loans, Including Fees        $10,572      $10,837    $41,963       $44,460
 Federal Funds Sold and                                              
Securities Purchased 
 Under Agreements to Resell   27           24         99            115
Deposits with Other Banks     9            9          43            46
 Investment Securities                                               
 U. S. Government Agencies    699          1,476      4,824         6,873
 State, County and Municipal  34           59         207           161
 Corporate
Obligations/Asset-Backed      14           23         76            91
Sec. 
Dividends on Other            22           11         77            47
Investments 
                              11,377       12,439     47,289        51,793
Interest Expense                                                     
 Deposits                     1,904        2,723      8,737         12,950
 Federal Funds Purchased and                                         
Securities Sold 
 Under Agreements to           --           --         --           338
Repurchase 
 Borrowed Money               397          872        2,279         3,518
                              2,301        3,595      11,016        16,806
Net Interest Income           9,076        8,844      36,273        34,987
 Provision for Loan Losses    1,158        2,250      6,785         8,250
Net Interest Income After     7,918        6,594      29,488        26,737
Provision for Loan Losses
                                                                     
Noninterest Income                                                   
 Service Charges on Deposits  1,046        854        3,573         3,245
 Other Service Charges,       396          335        1,515         1,312
Commissions and Fees 
 Mortgage Fee Income          104          104        400           265
 Securities Gains             770          979        2,837         2,924
 Other                        326          481        1,408         2,205
                              2,642        2,753      9,733         9,951
Noninterest Expense                                                  
 Salaries and Employee        4,079        3,855      15,565        14,633
Benefits 
 Occupancy and Equipment      983          914        3,884         3,998
 Other                        4,682        4,033      15,930        14,419
                              9,744        8,802      35,379        33,050
                                                                     
Income Before Income Taxes    816          545        3,842         3,638
Income Taxes                  248          164        1,201         1,104
Net Income                    568          381        2,641         2,534
                                                                     
Preferred Stock Dividends     365          350        1,435         1,400
                                                                     
Net Income Available to       $203         $31        $1,206        $1,134
Common Shareholders 
Net Income Per Share of                                              
Common Stock
 Basic                        $0.02        $0.00      $0.14         $0.13
 Diluted                      $0.02        $0.00      $0.14         $0.13
Weighted Average Basic Shares 8,439,258    8,433,822  8,439,258     8,439,258
Outstanding 
Weighted Average Diluted      8,439,258    8,433,822  8,439,258     8,439,258
Shares Outstanding 

CONTACT: Terry L. Hester
         Chief Financial Officer
         (229) 426-6002
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