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Colony Bankcorp, Inc. Announces First Quarter Results



Colony Bankcorp, Inc. Announces First Quarter Results

FITZGERALD, Ga., April 19, 2013 (GLOBE NEWSWIRE) -- Colony Bankcorp, Inc.
(Nasdaq:CBAN), today reported net income available to shareholders of
$567,000, or $0.07 per diluted share for the first quarter of 2013 compared to
net income available to shareholders of $189,000, or $0.02 per diluted share
for the comparable 2012 period. This reflects an increase of 200 percent for
the comparable periods and was primarily driven by an increase in net interest
income and noninterest income - along with a reduction in provision for loan
losses. "First quarter was another positive quarter and reflected solid
results in building on the momentum carrying over from 2012. In addition to
improved earnings, we achieved significant improvement in asset quality.
Non-performing assets decreased to $39.58 million at March 31, 2013 from
$46.16 million at December 31, 2012, or a decrease of 14.25 percent, while the
substandard assets to tier one capital plus loan loss allowance ratio improved
to 45.85 percent at March 31, 2013 from 55.60 percent at December 31, 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
remain committed to making incremental progress toward these goals during
2013," said Ed Loomis, President and Chief Executive Officer. "This will be an
interesting and challenging year in the banking industry as we continue to
address a less than robust economy and interest rates at historically low
levels. Continued efforts to strengthen our balance sheet by reducing the
level of problem assets along with loan growth, margin improvement and revenue
enhancement initiatives will further position our company for sustained
profitability and long-term success."

Capital

Colony continues to maintain a strong capital position to be categorized as
"well-capitalized" by regulatory benchmarks. At March 31, 2013, the Company's
tier one leverage ratio, tier one and total risk-based capital ratios were
10.18 percent, 15.60 percent and 16.86 percent, respectively, compared to the
previous quarter end of 10.22 percent, 15.22 percent and 16.47 percent,
respectively, at December 31, 2012 and to 9.38 percent, 15.73 percent and
16.99 percent, respectively, at March 31, 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 first quarter of 2013, the Company reported net interest income of
$9.05 million and a net interest margin of 3.45 percent, compared to $8.88
million and 3.23 percent, respectively, for first quarter 2012. 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 stable to slight 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 $61.91 million at March 31, 2013 compared to
$74.57 million and $92.99 million, respectively, at December 31, 2012 and
March 31, 2012. Substandard assets adjusted for SBA guarantees to tier one
capital plus loan loss reserve ratio was 45.85%, 55.60% and 72.25%,
respectively, at March 31, 2013, December 31, 2012 and March 31, 2012. 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
$39.58 million or 5.24 percent of total loans and other real estate owned as
of March 31, 2013. This compares to $46.16 million or 6.05 percent and $60.72
million or 8.35 percent, respectively, as of December 31, 2012 and March 31,
2012. Loan loss reserve methodology resulted in three months ended March 31,
2013 provision for loan losses of $1.50 million compared to $1.94 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.

Other real estate ("OREO") totaled $18.77 million at March 31, 2013 compared
to $15.94 million at December 31, 2012. During this period, $5.28 million has
been added to OREO, thus a reduction from sales and/or write-downs of $2.45
million. One large loan approximating $3 million tied up in bankruptcy for a
number of months finally worked through the court system and triggered the
increase in OREO property in the first quarter. An auction conducted in late
March will result in a reduction of approximately $1.3 million of the OREO
balance 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 first quarter of 2013 net charge-offs were $1.31 million, or 0.18
percent of average loans as compared to net charge-offs of $1.68 million, or
0.24 percent of average loans in first quarter 2012. The loan loss reserve was
$12.93 million on March 31, 2013, or 1.76 percent of total loans compared to
$12.74 million, or 1.70 percent on December 31, 2012 and to $15.91 million, or
2.25 percent on March 31, 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 March 31, 2013.

Noninterest Income

Total noninterest income increased in the comparable periods as noninterest
income for three months ended March 31, 2013 was $2.22 million compared to
$1.81 million in the comparable 2012 period, or an increase of 22.27 percent.
Service charge fee income on deposit accounts increased $305 thousand, or
38.32 percent. Mortgage fee income increased $38 thousand, or 46.91 percent
and gains on the sale of SBA/USDA loans increased $247 thousand, or 235.24
percent. The company continues to explore revenue enhancement products and
services to improve fee income.

Noninterest Expense

Total noninterest expense increased to $8.40 million in three months ended
March 31, 2013 compared to $7.98 million in the comparable 2012 period, or an
increase of 5.26 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 $700 thousand in
three months ended March 31, 2013 compared to $763 thousand in the comparable
2012 period. Salaries and employee benefit expenses increased to $4.17 million
in three months ended March 31, 2013 compared to $3.82 million in the
comparable 2012 period, or an increase of 9.14 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 $3.29 million compared to $3.23 million, or an increase
of 2.02 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
                                                                   
                                                                   
                           QUARTER ENDED             YEAR-TO-DATE 
 EARNINGS SUMMARY           03/31/13    03/31/12      03/31/13    03/31/12
Net Interest Income        $9,046       $8,884       $9,046       $8,884
Provision for Loan Losses  1,500        1,942        1,500        1,942
Non-interest Income        2,218        1,814        2,218        1,814
Non-interest Expense       8,400        7,983        8,400        7,983
Income Taxes               427          232          427          232
Net Income                 937          541          937          541
Preferred Stock Dividend   370          352          370          352
Net Income Available to    567          189          567          189
Common Shareholders 
                                                                   
                           QUARTER ENDED             YEAR-TO-DATE
 PER COMMON SHARE SUMMARY   03/31/13    03/31/12      03/31/13    03/31/12
Common Shares Outstanding  8,439,258    8,439,258    8,439,258    8,439,258
Weighted Average Basic     8,439,258    8,439,258    8,439,258    8,439,258
Shares 
Weighted Average Diluted   8,439,258    8,439,258    8,439,258    8,439,258
Shares 
Earnings Per Basic Share   $0.07        $0.02        $0.07        $0.02
(b) 
Earnings Per Diluted Share $0.07        $0.02        $0.07        $0.02
(b) 
Common Book Value Per      $8.01        $8.23        $8.01        $8.23
Share 
Tangible Common Book Value $7.98        $8.20        $7.98        $8.20
Per Share
                                                                   
                           QUARTER ENDED             YEAR-TO-DATE 
 OPERATING RATIOS (1)       03/31/13     03/31/12     03/31/13    03/31/12
Net Interest Margin (a)    3.45%        3.23%        3.45%        3.23%
Return on Average Assets   0.20%        0.06%        0.20%        0.06%
(b) 
Return on Average Total    2.37%        0.78%        2.37%        0.78%
Equity (b) 
Efficiency (c)             74.24%       75.35%       74.24%       75.35%
                                                                   
(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            03/31/13     03/31/12                  
Total Assets               $1,118,865   $1,176,644                 
Loans, Net of Reserves     723,651      690,533                    
Allowance for Loan Losses  12,930       15,910                     
Intangible Assets          215          250                        
Deposits                   953,575      994,014                    
Common Shareholders'       67,567       69,422                     
Equity
Common Equity to Total     6.04%        5.90%                      
Assets
Total Equity               95,437       97,125                     
Total Equity to Total      8.53%        8.25%                      
Assets 
                                                                   
                           QUARTER ENDED             YEAR-TO-DATE 
 AVERAGE BALANCES           03/31/13     03/31/12     03/31/13     03/31/12
Total Assets               $1,124,406   $1,181,582   $1,124,406   $1,181,582
Loans, Net of Reserves     723,605      692,439      723,605      692,439
Deposits                   964,807      992,606      964,807      992,606
Common Shareholders'       67,734       68,848       67,734       68,848
Equity
Total Equity               95,580       96,528       95,580       96,528
                                                                   
                           QUARTER ENDED             YEAR-TO-DATE 
 ASSET QUALITY              03/31/13    03/31/12      03/31/13    03/31/12
Nonperforming Loans        $20,439      $39,367      $20,439      $39,367
Nonperforming Assets       39,577       60,722       39,577       60,722
Substandard Assets         61,912       92,993       61,912       92,993
Net Loan Chg-offs          1,307        1,682        1,307        1,682
(Recoveries) 
Reserve for Loan Loss to   1.76%        2.25%        1.76%        2.25%
Total Loans 
Reserve for Loan Loss to   63.26%       40.41%       63.26%       40.41%
Non-performing Loans 
Reserve for Loan Loss to   32.67%       26.30%       32.67%       26.30%
Non-performing Assets 
Net Loan Chg-offs
(Recoveries) to Avg. Total 0.18%        0.24%        0.18%        0.24%
Loans 
Nonperforming Loans to     2.77%        5.57%        2.77%        5.57%
Total Loans 
Nonperforming Assets to    3.54%        5.16%        3.54%        5.16%
Total Assets 
Nonperforming Assets to
Total Loans And Other Real 5.24%        8.35%        5.24%        8.35%
Estate 
Substandard Assets to Tier
One Capital and Allowance  45.85%       72.25%       45.85%       72.25%
for Loan Losses 

                                                                     
                                                                     
Quarterly Comparative Data (in thousands, except per share data)
                        1Q2013     4Q2012     3Q2012     2Q2012     1Q2012
Assets                  $1,118,865 $1,139,397 $1,097,437 $1,133,170 $1,176,644
Loans                   723,651    734,079    711,971    700,917    690,533
Deposits                953,575    979,685    941,204    972,135    994,014
Common Shareholders'    67,567     67,932     68,584     69,265     69,422
Equity 
Total Equity            95,437     95,759     96,369     97,009     97,125
Net Income              937        568        772        760        541
Net Income Available to 567        203        411        403        189
Common Shareholders 
 Net Income Per Share   0.07       0.02       0.05       0.05       0.02
                                                                     
Key Performance Ratios   1Q2013     4Q2012     3Q2012     2Q2012     1Q2012 
                                                                     
Return on Average       0.20%      0.07%      0.15%      0.14%      0.06%
Assets (1) 
Return on Average Total 2.37%      0.85%      1.69%      1.66%      0.78%
Equity (1) 
Common Equity to Total  6.04%      5.96%      6.25%      6.11%      5.90%
Assets 
Total Equity to Total   8.53%      8.40%      8.78%      8.56%      8.25%
Assets 
Net Interest Margin     3.45%      3.49%      3.56%      3.39%      3.23%
(1) Computed using net income available to shareholders 

                                                                  
                                                                  
Consolidated Balance Sheets Colony Bankcorp, Inc.
 (in thousands)                                                   
                                                                  
                                    Mar. 31, 2013  Dec. 31, 2012 Mar. 31, 2012
                                     (unaudited)    (audited)     (unaudited)
ASSETS                                                            
Cash and Cash Equivalents                                         
Cash and Due from Banks             $18,608        $29,244       $18,055
Federal Funds Sold                  10,966         20,002        29,770
                                    29,574         49,246        47,825
Interest-Bearing Deposits           8,706          21,795        28,051
Investment Securities                                             
Available for Sale, at Fair Value   288,249        268,301       333,608
Held for Maturity, at Cost (Fair
Value of $43, $42 and $48 as of     43             41            47
Mar. 31, 2013, Dec. 31, 2012 and
Mar. 31, 2012, Respectively) 
                                    288,292        268,342       333,655
Federal Home Loan Bank Stock, at    3,164          3,364         5,398
Cost 
Loans                               736,820        747,050       706,513
Allowance for Loan Losses           (12,930)       (12,737)      (15,910)
Unearned Interest and Fees          (239)          (234)         (70)
                                    723,651        734,079       690,533
Premises and Equipment              25,071         24,916        25,772
Other Real Estate                   18,771         15,941        20,989
Other Intangible Assets             215            224           250
Other Assets                        21,421         21,490        24,171
Total Assets                        $1,118,865     $1,139,397    $1,176,644
                                                                  
LIABILITIES AND STOCKHOLDERS'                                     
EQUITY
                                                                  
Deposits                                                          
Noninterest-Bearing                 $121,921       $123,967      $105,473
Interest-Bearing                    831,654        855,718       888,541
                                    953,575        979,685       994,014
Borrowed Money                                                    
Subordinated Debentures             24,229         24,229        24,229
Other Borrowed Money                40,000         35,000        57,500
                                    64,229         59,229        81,729
                                                                  
Other Liabilities                   5,624          4,724         3,776
                                                                  
Stockholders' Equity                                              
Preferred Stock, Stated Value
$1,000 a Share; Authorized          27,870         27,827        27,703
10,000,000 Shares, Issued 28,000
Shares
Common Stock, Par Value $1 a share;
Authorized 20,000,000 Shares,
Issued 8,439,258 Shares as of Mar.  8,439          8,439         8,439
31, 2013, Dec. 31, 2012 and Mar.
31, 2012, Respectively 
Paid in Capital                     29,145         29,145        29,145
Retained Earnings                   31,022         30,498        29,604
Accumulated Other Comprehensive     (1,039)        (150)         2,234
Loss, Net of Tax
                                    95,437         95,759        97,125
Total Liabilities and Stockholders' $1,118,865     $1,139,397    $1,176,644
Equity 

                                                                   
                                                                   
Consolidated Statements of Income Colony Bankcorp, Inc.
 (in thousands except per share data) 
                                                                   
                          Quarter                    Year-to-Date 
                          Three Months Ended         Three Months Ended
                           03/31/13     03/31/12      03/31/13     03/31/12
                          (unaudited)   (unaudited)   (unaudited)  (unaudited)
Interest Income                                                    
 Loans, Including Fees    $10,361      $10,420       $10,361      $10,420
 Federal Funds Sold       14           26            14           26
Deposits with Other       11           20            11           20
Banks 
Investment Securities                                              
 U. S. Government         712          1,618         712          1,618
Agencies 
 State, County and        33           66            33           66
Municipal 
 Corporate
Obligations/Asset-Backed  14           24            14           24
Sec. 
Dividends on Other        19           17            19           17
Investments 
                          11,164       12,191        11,164       12,191
Interest Expense                                                   
 Deposits                 1,686        2,470         1,686        2,470
 Borrowed Money           432          837           432          837
                          2,118        3,307         2,118        3,307
Net Interest Income       9,046        8,884         9,046        8,884
 Provision for Loan       1,500        1,942         1,500        1,942
Losses 
Net Interest Income After
Provision for Loan        7,546        6,942         7,546        6,942
Losses 
                                                                   
Noninterest Income                                                 
 Service Charges on       1,101        796           1,101        796
Deposits 
 Other Service Charges,   404          419           404          419
Commissions and Fees 
 Mortgage Fee Income      119          81            119          81
 Securities Gains          --          137            --          137
 Other                    594          381           594          381
                          2,218        1,814         2,218        1,814
Noninterest Expense                                                
 Salaries and Employee    4,169        3,820         4,169        3,820
Benefits 
 Occupancy and Equipment  933          938           933          938
 Securities Losses        8             --           8             --
 Other                    3,290        3,225         3,290        3,225
                          8,400        7,983         8,400        7,983
                                                                   
Income Before Income      1,364        773           1,364        773
Taxes 
Income Taxes              427          232           427          232
Net Income                937          541           937          541
                                                                   
Preferred Stock           370          352           370          352
Dividends 
                                                                   
Net Income Available to   $567         $189          $567         $189
Common Shareholders 
Net Income Per Share of                                            
Common Stock
 Basic                    $0.07        $0.02         $0.07        $0.02
 Diluted                  $0.07        $0.02         $0.07        $0.02
Weighted Average Basic    8,439,258    8,439,258     8,439,258    8,439,258
Shares Outstanding 
Weighted Average Diluted  8,439,258    8,439,258     8,439,258    8,439,258
Shares Outstanding 

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