Colony Bankcorp, Inc. Announces Third Quarter Results

Colony Bankcorp, Inc. Announces Third Quarter Results

FITZGERALD, Ga., Oct. 16, 2013 (GLOBE NEWSWIRE) -- Colony Bankcorp, Inc.
(Nasdaq:CBAN), today reported net income available to shareholders of
$701,000, or $0.08 per diluted share for the third quarter of 2013 compared to
$411,000, or $0.05 per diluted share for the comparable 2012 period, while net
income available to shareholders for nine months ended September 30, 2013 was
$1,879,000, or $0.22 per diluted share compared to $1,003,000, or $0.12 per
share for the comparable 2012 period. This increase of 87.34 percent in net
income for the comparable nine month period was primarily driven by an
increase in net interest income and noninterest income (excluding securities
gains) – along with a reduction in provision for loan losses. "In addition to
outstanding core earnings improvement, Colony again had noticeable improvement
in asset quality. Substandard assets to tier one capital plus loan loss
allowance ratio improved to 40.94 percent at September 30, 2013 from 43.00
percent at June 30, 2013. On October 4, 2013, the company received
notification from regulatory agencies that the memorandum of understanding
("MOU") agreement in place since November 2010 has been terminated. The
agreement required Colony to take steps to reduce credit risk and improve
asset quality and earning performance. Our primary regulators have
acknowledged the significant progress we have made in addressing the MOU
agreement. Though much has been accomplished, our board, management and staff
remain committed to making incremental progress toward earnings and asset
quality improvement," said Ed Loomis, President and Chief Executive Officer.

Capital

Colony continues to maintain a solid capital position to be categorized as
"well-capitalized" by regulatory benchmarks. At September 30, 2013, the
Company's tier one leverage ratio, tier one and total risk-based capital
ratios were 10.40 percent, 15.40 percent and 16.66 percent, respectively,
compared to the previous quarter end of 10.36 percent, 15.63 percent and 16.89
percent, respectively, at June 30, 2013 and to 10.07 percent, 15.39 percent
and 16.65 percent, respectively, at September 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 third quarter of 2013, the Company reported net interest income of
$9.49 million and a net interest margin of 3.67 percent, compared to $9.22
million and 3.56 percent, respectively, for third quarter 2012, while net
interest income for the nine months ended September 30, 2013 was $28.00
million and a net interest margin of 3.59 percent compared to $27.20 million
and 3.39 percent, respectively, for the nine months ended September 30, 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 $55.39 million at September 30, 2013 compared to
$58.15 million and $85.04 million, respectively, at June 30, 2013 and
September 30, 2012.Substandard assets adjusted for SBA guarantees to tier one
capital plus loan loss reserve ratio was 40.94%, 43.00% and 63.87%,
respectively, at September 30, 2013, June 30, 2013 and September 30,
2012.Non-performing assets decreased slightly from the previous quarter end
to $40.64 million or 5.32 percent of total loans and other real estate owned
as of September 30, 2013.This compares to $41.18 million or 5.42 percent and
$51.74 million or 6.96 percent, respectively, as of June 30, 2013 and
September 30, 2012. Loan loss reserve methodology resulted in nine months
ended September 30, 2013 provision for loan losses of $4.20 million compared
to $5.63 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 $16.11 million at September 30, 2013
compared to $15.94 million and $17.09 million, respectively, at December 31,
2012 and September 30, 2012.During nine months ended September 30, 2013,
$8.26 million has been added to OREO, thus a reduction from sales and/or
write-downs of $8.09 million. Two auctions scheduled for early November should
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 third quarter of 2013 net charge-offs were $1.51 million, or 0.20
percent of average loans as compared to net charge-offs of $2.65 million, or
0.36 percent of average loans in third quarter 2012, while for the nine months
ended September 30, 2013 net charge-offs were $3.99 million, or 0.54 percent
of average loans as compared to net charge-offs of $6.89 million, or 0.96
percent of average loans for the comparable 2012 period.The loan loss reserve
was $12.95 million on September 30, 2013, or 1.73 percent of total loans
compared to $12.96 million, or 1.74 percent on June 30, 2013 and to $14.39
million, or 1.98 percent on September 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 September 30, 2013.

Noninterest Income

Total noninterest income decreased in the comparable periods as noninterest
income for nine months ended September 30, 2013 was $6.36 million compared to
$7.09 million in the comparable 2012 period, or a decrease of 10.32 percent.
Service charge fee income on deposit accounts increased $957 thousand, or
37.87 percent.Mortgage fee income increased $81 thousand, or 27.36 percent
and gains on the sale of SBA/USDA loans increased $46 thousand, or 15.03
percent.Offsetting these increases was security gains and losses in which
losses were $2 thousand for nine months ended September 30, 2013 compared to
gains of $2.07 million for the comparable 2012 period.The company continues
to explore revenue enhancement products and services to improve fee income.

Noninterest Expense

Total noninterest expense was relatively flat with $25.62 million in nine
months ended September 30, 2013 compared to $25.64 million in the comparable
2012 period.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 $2.81 million in nine months
ended September 30, 2013 compared to $3.79 million in the comparable 2012
period.Salaries and employee benefit expenses increased to $12.50 million in
nine months ended September 30, 2013 compared to $11.49 million in the
comparable 2012 period, or an increase of 8.79 percent.This increase is
primarily attributable to an increase in headcount to support operational
improvement, much of it related to compliance. Occupancy expenses remained
flat in the comparable periods.Other noninterest expense decreased to $10.28
million compared to $11.25 million, or a decrease of 8.62 percent – primarily
due to the decrease in credit-related expenses noted above.

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 thirty 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      09/30/13     09/30/12     09/30/13     09/30/12
Net Interest Income        $9,494       $9,222       $27,995      $27,197
Provision for Loan Losses  1,500        1,742        4,200        5,627
Non-interest Income        2,109        2,903        6,359        7,091
Non-interest Expense       8,488        9,247        25,619       25,635
Income Taxes               535          364          1,532        953
Net Income                 1,080        772          3,003        2,073
Preferred Stock Dividend   379          361          1,124        1,070
Net Income Available       701          411          1,879        1,003
toCommon Shareholders
                                                              
                          QUARTER ENDED             YEAR-TO-DATE
 PER COMMON SHARE      09/30/13     09/30/12     09/30/13     09/30/12
SUMMARY
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   $0.08        $0.05        $0.22        $0.12
(b)
Earnings Per Diluted Share $0.08        $0.05        $0.22        $0.12
(b)
Common Book Value Per      $7.45        $8.13        $7.45        $8.13
Share
Tangible Common Book Value $7.43        $8.10        $7.43        $8.10
Per Share
                                                              
                          QUARTER ENDED             YEAR-TO-DATE
 OPERATING RATIOS      09/30/13     09/30/12     09/30/13     09/30/12
(1)
Net Interest Margin (a)    3.67%        3.56%        3.59%        3.39%
Return on Average Assets   0.25%        0.15%        0.22%        0.12%
(b)
Return on Average Total    3.09%        1.69%        2.67%        1.38%
Equity (b)
Efficiency (c)             72.88%       84.27%       74.30%       79.31%
                                                              
(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       09/30/13     09/30/12                 
Total Assets               $1,113,141   $1,097,437               
Loans, Net of Reserves     734,792      711,971                  
Allowance for Loan Losses  12,951       14,389                   
Intangible Assets          197          232                      
Deposits                   949,463      941,204                  
Common Shareholders'       62,859       68,584                   
Equity
Common Equity to Total     5.65%        6.25%                    
Assets
Total Equity               90,815       96,369                   
Total Equity to Total      8.16%        8.78%                    
Assets
                                                              
                          QUARTER ENDED             YEAR-TO-DATE
 AVERAGE BALANCES      09/30/13     09/30/12     09/30/13     09/30/12
Total Assets               $1,106,631   $1,111,524   $1,113,632   $1,147,419
Loans, Net of Reserves     733,479      709,627      728,160      699,511
Deposits                   941,698      953,380      948,882      973,670
Common Shareholders'       62,918       69,279       66,092       69,139
Equity
Total Equity               90,852       97,044       93,983       96,861
                                                              
                          QUARTER ENDED             YEAR-TO-DATE
 ASSET QUALITY         09/30/13     09/30/12     09/30/13     09/30/12
Nonperforming Loans        $24,165      $34,283      $24,165      $34,283
Nonperforming Assets       40,638       51,741       40,638       51,741
Substandard Assets         55,391       85,037       55,391       85,037
Net Loan Chg-offs          1,506        2,646        3,986        6,888
(Recoveries)
Reserve for Loan Loss to   1.73%        1.98%        1.73%        1.98%
Total Loans
Reserve for Loan Loss to   53.59%       41.97%       53.59%       41.97%
Non-performing Loans
Reserve for Loan Loss to   31.87%       27.81%       31.87%       27.81%
Non-performing Assets
Net Loan Chg-offs
(Recoveries) to Avg. Total 0.20%        0.36%        0.54%        0.96%
Loans
Nonperforming Loans to     3.23%        4.72%        3.23%        4.72%
Total Loans
Nonperforming Assets to    3.65%        4.71%        3.65%        4.71%
Total Assets
Nonperforming Assets to
Total Loans And Other Real 5.32%        6.96%        5.32%        6.96%
Estate
Substandard Assets to Tier
One Capital and Allowance  40.94%       63.87%       40.94%       63.87%
for Loan Losses


Quarterly Comparative Data (in thousands, except per share data)
                     3Q2013   2Q2013   1Q2013   4Q2012   3Q2012
                                                             
Assets               $1,113,141 $1,106,454 $1,118,865 $1,139,397 $1,097,437
Loans                734,792    730,920    723,651    734,079    711,971
Deposits             949,463    943,337    953,575    979,685    941,204
Common Shareholders'  62,859     63,828     67,567     67,932     68,584
Equity
Total Equity         90,815     91,740     95,437     95,759     96,369
Net Income           1,080      986        937        568        772
Net Income Available
toCommon             701        611        567        203        411
Shareholders
Net Income Per Share 0.08       0.07       0.07       0.02       0.05
                                                             
Key Performance       3Q2013   2Q2013   1Q2013    4Q2012   3Q2012
Ratios
                                                             
Return on Average     0.25%      0.22%      0.20%      0.07%      0.15%
Assets (1)
Return on Average     3.09%      2.56%      2.37%      0.85%      1.69%
Total Equity (1)
Common Equity to      5.65%      5.77%      6.04%      5.96%      6.25%
Total Assets
Total Equity to Total 8.16%      8.29%      8.53%      8.40%      8.78%
Assets
Net Interest Margin  3.67%      3.64%      3.45%      3.49%      3.56%
(1) Computed using net income available to shareholders

                                                            
Consolidated Balance Sheets                                  
Colony Bankcorp, Inc.
(in thousands)                                              
                                                            
                               Sept. 30, 2013 Dec. 31, 2012 Sept. 30, 2012
                               (unaudited)   (audited)    (unaudited)
ASSETS                                                       
Cash and Cash Equivalents                                   
Cash and Due from Banks        $19,033         $29,244        $22,077
Federal Funds Sold             18,526          20,002         42,946
                               37,559          49,246         65,023
Interest-Bearing Deposits      4,117           21,795         9,210
Investment Securities                                        
Available for Sale, at Fair     257,354         268,301        242,097
Value
Held for Maturity, at Cost
(Fair Value of $39, $42 and $46
as of Sept. 30, 2013, Dec. 31,  39              41             45
2012 and Sept. 30, 2012,
Respectively)
                               257,393         268,342        242,142
Federal Home Loan Bank Stock,   3,164           3,364          3,139
at Cost
Loans                          748,044         747,050        726,522
Allowance for Loan Losses      (12,951)        (12,737)       (14,389)
Unearned Interest and Fees     (301)           (234)          (162)
                               734,792         734,079        711,971
Premises and Equipment         24,833          24,916         25,212
Other Real Estate              16,106          15,941         17,091
Other Intangible Assets        197             224            232
Other Assets                   34,980          21,490         23,417
Total Assets                   $1,113,141      $1,139,397     $1,097,437
                                                            
LIABILITIES AND STOCKHOLDERS'                                
EQUITY
                                                            
Deposits                                                     
Noninterest-Bearing            $110,870        $123,967       $101,852
Interest-Bearing               838,593         855,718        839,352
                               949,463         979,685        941,204
Borrowed Money                                              
Subordinated Debentures        24,229          24,229         24,229
Other Borrowed Money           40,000          35,000         30,000
                               64,229          59,229         54,229
                                                            
Other Liabilities              8,634           4,724          5,635
                                                            
Stockholders' Equity                                         
Preferred Stock, Stated Value
$1,000 a Share; Authorized      27,956          27,827         27,785
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 8,439           8,439          8,439
as of Sept. 30, 2013, Dec. 31,
2012 and Sept. 30, 2012,
Respectively
Paid in Capital                29,145          29,145         29,145
Retained Earnings              32,248          30,498         30,337
Accumulated Other Comprehensive (6,973)         (150)          663
Loss, Net of Tax
                               90,815          95,759         96,369
Total Liabilities and           $1,113,141      $1,139,397     $1,097,437
Stockholders' Equity


Consolidated Statements of Income Colony Bankcorp, Inc.
(in thousands except per share data)
                                                               
                             Quarter                 Year-to-Date
                             Three Months Ended     Nine Months Ended
                             09/30/13    09/30/12    09/30/13     09/30/12
                             (unaudited) (unaudited) (unaudited) (unaudited)
Interest Income               $10,303     $10,538     $31,023      $31,391
Loans, Including Fees        7           16          27           72
Federal Funds Sold           5           4           21           34
Deposits with Other Banks                                      
Investment Securities        880         1,116       2,454        4,125
U. S. Government Agencies    30          42          94           173
State, County and Municipal  14          14          42           62
Corporate
Obligations/Asset-Backed      21          18          59           55
Sec.
Dividends on Other            11,260      11,748      33,720       35,912
Investments
                                                               
Interest Expense                                               
Deposits                     1,361       2,110       4,452        6,833
Borrowed Money               405         416         1,273        1,882
                             1,766       2,526       5,725        8,715
Net Interest Income          9,494       9,222       27,995       27,197
Provision for Loan Losses    1,500       1,742       4,200        5,627
Net Interest Income After     7,994       7,480       23,795       21,570
Provision for Loan Losses
                                                               
Noninterest Income                                              
Service Charges on Deposits  1,236       917         3,484        2,527
Other Service Charges,        442         372         1,289        1,119
Commissions and Fees
Mortgage Fee Income          117         103         377          296
Securities Gains             --        1,187       (2)          2,067
Other                        314         324         1,211        1,082
                             2,109       2,903       6,359        7,091
Noninterest Expense                                             
Salaries and Employee         4,178       3,833       12,496       11,486
Benefits
Occupancy and Equipment      974         1,000       2,842        2,901
Other                        3,336       4,414       10,281       11,248
                             8,488       9,247       25,619       25,635
                                                               
Income Before Income Taxes   1,615       1,136       4,535        3,026
Income Taxes                 535         364         1,532        953
Net Income                   1,080       772         3,003        2,073
                                                               
Preferred Stock Dividends    379         361         1,124        1,070
                                                               
Net Income Available to       $701        $411        $1,879       $1,003
Common Shareholders
Net Income Per Share of                                         
Common Stock
Basic                        $0.08       $0.05       $0.22        $0.12
Diluted                      $0.08       $0.05       $0.22        $0.12
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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