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Colony Bankcorp, Inc. Announces Second Quarter Results

Colony Bankcorp, Inc. Announces Second Quarter Results

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." 

Capital

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.

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 $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.

Noninterest Income

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. 

Noninterest Expense

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

                          QUARTER ENDED             YEAR-TO-DATE
EARNINGS SUMMARY           06/30/13     06/30/12     06/30/13     06/30/12
Net Interest Income        $9,455       $9,091       $18,501      $17,975
Provision for Loan Losses  1,200        1,943        2,700        3,885
Non-interest Income        2,040        2,374        4,250        4,188
Non-interest Expense       8,739        8,405        17,131       16,388
Income Taxes               570          357          997          589
Net Income                 986          760          1,923        1,301
Preferred Stock Dividend   375          357          745          709
Net Income Available to    611          403          1,178        592
Common Shareholders
                                                              
                          QUARTER ENDED             YEAR-TO-DATE
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     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        $0.05        $0.14        $0.07
(b)
Earnings Per Diluted Share $0.07        $0.05        $0.14        $0.07
(b)
Common Book Value Per      $7.56        $8.21        $7.56        $8.21
Share
Tangible Common Book Value $7.54        $8.18        $7.54        $8.18
Per Share
                                                              
                          QUARTER ENDED             YEAR-TO-DATE
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   0.22%        0.14%        0.21%        0.10%
(b)
Return on Average Total    2.56%        1.66%        2.47%        1.22%
Equity (b)
Efficiency (c)            75.80%       73.09%       75.03%       73.72%
                                                              
(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                    06/30/13   06/30/12             
Total Assets                       $1,106,454 $1,133,170           
Loans, Net of Reserves             730,920    700,917              
Allowance for Loan Losses          12,957     15,293               
Intangible Assets                  206        241                  
Deposits                           943,337    972,135              
Common Shareholders' Equity        63,828     69,265               
Common Equity to Total Assets      5.77%      6.11%                
Total Equity                       91,740     97,009               
Total Equity to Total Assets       8.29%      8.56%                
                                                                
                                  QUARTER ENDED         YEAR-TO-DATE
AVERAGE BALANCES                  06/30/13   06/30/12   06/30/13   06/30/12
Total Assets                       $1,110,107 $1,149,453 $1,117,201 $1,165,515
Loans, Net of Reserves             727,288    696,355    725,456    694,397
Deposits                           940,447    976,333    952,560    984,463
Common Shareholders' Equity        67,667     69,282     67,700     69,065
Total Equity                       95,558     97,003     95,569     96,766
                                                                
                                                                
                                  QUARTER ENDED         YEAR-TO-DATE
ASSET QUALITY                     06/30/13   06/30/12   06/30/13   06/30/12
Nonperforming Loans                $24,685    $35,687    $24,685    $35,687
Nonperforming Assets               41,180     53,969     41,180     53,969
Substandard Assets                 58,152     87,752     58,152     87,752
Net Loan Chg-offs (Recoveries)     1,173      2,560      2,480      4,242
Reserve for Loan Loss to Total     1.74%      2.13%      1.74%      2.13%
Loans
Reserve for Loan Loss to           52.49%     42.85%     52.49%     42.85%
Non-performing Loans
Reserve for Loan Loss to           31.46%     28.34%     31.46%     28.34%
Non-performing Assets
Net Loan Chg-offs (Recoveries) to  0.16%      0.36%      0.34%      0.60%
Avg. Total Loans
Nonperforming Loans to Total Loans 3.32%      4.98%      3.32%      4.98%
Nonperforming Assets to Total      3.72%      4.76%      3.72%      4.76%
Assets
Nonperforming Assets to Total      5.42%      7.35%      5.42%      7.35%
Loans And Other Real Estate
Substandard Assets to Tier One
Capital and Allowance for Loan     43.00%     67.97%     43.00%     67.97%
Losses


Quarterly Comparative Data (in thousands, except per share data)
                       2Q2013     1Q2013     4Q2012     3Q2012     2Q2012
                                                               
Assets                  $1,106,454 $1,118,865 $1,139,397 $1,097,437 $1,133,170
Loans                   730,920    723,651    734,079    711,971    700,917
Deposits                943,337    953,575    979,685    941,204    972,135
Common Shareholders'    63,828     67,567     67,932     68,584     69,265
Equity
Total Equity            91,740     95,437     95,759     96,369     97,009
Net Income              986        937        568        772        760
Net Income Available to 611        567        203        411        403
Common Shareholders
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       0.22%      0.20%      0.07%      0.15%      0.14%
Assets (1)
Return on Average Total 2.56%      2.37%      0.85%      1.69%      1.66%
Equity (1)
Common Equity to Total  5.77%      6.04%      5.96%      6.25%      6.11%
Assets
Total Equity to Total   8.29%      8.53%      8.40%      8.78%      8.56%
Assets
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.
(in thousands)
                                                              
                                    June 30, 2013 Dec. 31, 2012 June 30, 2012
                                    (unaudited) (audited)   (unaudited)
ASSETS                                                         
Cash and Cash Equivalents                                      
Cash and Due from Banks              $17,051       $29,244       $21,770
Federal Funds Sold                   9,918         20,002        40,836
                                    26,969        49,246        62,606
Interest-Bearing Deposits            13,408        21,795        3,369
Investment Securities                                          
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 38            41            44
30, 2013, Dec. 31, 2012 and June 30,
2012, Respectively)
                                    267,169       268,342       294,989
Federal Home Loan Bank Stock, at     3,164         3,364         4,159
Cost
Loans                                744,143       747,050       716,361
Allowance for Loan Losses            (12,957)      (12,737)      (15,293)
Unearned Interest and Fees           (266)         (234)         (151)
                                    730,920       734,079       700,917
Premises and Equipment               25,035        24,916        25,474
Other Real Estate                    16,128        15,941        17,915
Other Intangible Assets              206           224           241
Other Assets                         23,455        21,490        23,500
Total Assets                         $1,106,454    $1,139,397    $1,133,170
                                                              
LIABILITIES AND STOCKHOLDERS' EQUITY                           
                                                              
Deposits                                                       
Noninterest-Bearing                  $111,478      $123,967      $103,709
Interest-Bearing                     831,859       855,718       868,426
                                    943,337       979,685       972,135
Borrowed Money                                                
Subordinated Debentures              24,229        24,229        24,229
Other Borrowed Money                 40,000        35,000        35,000
                                    64,229        59,229        59,229
                                                              
Other Liabilities                    7,148         4,724         4,797
                                                              
Stockholders' Equity                                           
Preferred Stock, Stated Value $1,000
a Share;Authorized 10,000,000       27,912        27,827        27,744
Shares, Issued 28,000 Shares
Common Stock, Par Value $1 a share;
Authorized 20,000,000 Shares, Issued
8,439,258 Shares as of June 30,      8,439         8,439         8,439
2013, Dec. 31, 2012 and June 30,
2012, Respectively
Paid in Capital                      29,145        29,145        29,145
Retained Earnings                    31,590        30,498        29,967
Accumulated Other Comprehensive      (5,346)       (150)         1,714
Loss, Net of Tax
                                    91,740        95,759        97,009
Total Liabilities and Stockholders'  $1,106,454    $1,139,397    $1,133,170
Equity


Consolidated Statements of Income Colony Bankcorp, Inc.
(in thousands except per share data)
                                                               
                             Quarter                  Year-to-Date
                             Three Months Ended       Six Months Ended
                             06/30/13    06/30/12     06/30/13    06/30/12
                             (unaudited) (unaudited) (unaudited) (unaudited)
Interest Income                                                 
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
Investment Securities                                           
U.S. Government Agencies      862         1,390        1,574       3,009
State, County and Municipal   31          65           64          131
Corporate
Obligations/Asset-Backed      14          25           28          48
Sec.
Dividends on Other            19          20           38          37
Investments
                             11,296      11,973       22,460      24,164
Interest Expense                                                
Deposits                      1,405       2,253        3,091       4,723
Borrowed Money                436         629          868         1,466
                             1,841       2,882        3,959       6,189
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     8,255       7,148        15,801      14,090
Provision for Loan Losses
                                                               
Noninterest Income                                              
Service Charges on Deposits   1,147       814          2,248       1,610
Other Service Charges,        443         328          847         747
Commissions and Fees
Mortgage Fee Income           141         112          260         193
Securities Gains              6           743          (2)         880
Other                         303         377          897         758
                             2,040       2,374        4,250       4,188
Noninterest Expense                                             
Salaries and Employee         4,149       3,833        8,318       7,653
Benefits
Occupancy and Equipment       935         963          1,868       1,901
Other                         3,655       3,609        6,945       6,834
                             8,739       8,405        17,131      16,388
                                                               
Income Before Income Taxes    1,556       1,117        2,920       1,890
Income Taxes                  570         357          997         589
Net Income                    986         760          1,923       1,301
                                                               
Preferred Stock Dividends     375         357          745         709
                                                               
Net Income Available to       $611        $403         $1,178      $592
Common Shareholders
Net Income Per Share of                                         
Common Stock
Basic                         $0.07       $0.05        $0.14       $0.07
Diluted                       $0.07       $0.05        $0.14       $0.07
Weighted Average Basic Shares 8,439,258   8,439,258    8,439,258   8,439,258
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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