Colony Bankcorp, Inc. Announces Fourth Quarter Results

Colony Bankcorp, Inc. Announces Fourth Quarter Results

FITZGERALD, Ga., Jan. 24, 2014 (GLOBE NEWSWIRE) -- Colony Bankcorp, Inc.
(Nasdaq:CBAN), today reported net income available to shareholders of
$1,241,000, or $0.15 per diluted share for the fourth quarter of 2013 compared
to $203,000, or $0.02 per diluted share for the comparable 2012 period, while
net income available to shareholders for twelve months ended December 31, 2013
was $3,120,000, or $0.37 per diluted share compared to $1,206,000, or $0.14
per share for the comparable 2012 period. This increase of 158.71 percent in
net income for the comparable twelve 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
significant core earnings improvement, Colony again had marked improvement in
asset quality. Substandard assets to tier one capital plus loan loss allowance
ratio improved to 39.22 percent at December 31, 2013 from 40.94 percent at
September 30, 2013 and 55.60 percent at December 31, 2012. Though we were
successful in having regulatory agencies lift the memorandum of understanding
during 2013 and realized significant improvement in earnings and asset
quality, we still are committed to reducing our problem assets to an
acceptable level and returning to acceptable earnings," said Ed Loomis,
President and Chief Executive Officer."Momentum carrying over from 2013
initiatives has Colony positioned for a successful and productive year in
2014." 

Capital

Colony continues to maintain a solid capital position to be categorized as
"well-capitalized" by regulatory benchmarks.At December 31, 2013, the
Company's tier one leverage ratio, tier one and total risk-based capital
ratios were 10.29 percent, 15.36 percent and 16.61 percent, respectively,
compared to the previous quarter end of 10.40 percent, 15.40 percent and
16.66 percent, respectively, at September 30, 2013 and to 10.22 percent, 15.22
percent and 16.47 percent, respectively, at December 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 fourth quarter of 2013, the Company reported net interest income of
$9.69 million and a net interest margin of 3.68 percent, compared to $9.08
million and 3.49 percent, respectively, for fourth quarter 2012, while net
interest income for the twelve months ended December 31, 2013 was $37.69
million and a net interest margin of 3.61 percent compared to $36.27 million
and 3.41 percent, respectively, for the twelve months ended December 31 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 $53.45 million at December 31, 2013 compared to
$55.39 million and $74.57 million, respectively, at September 30, 2013 and
December 31, 2012.Substandard assets adjusted for SBA guarantees to tier one
capital plus loan loss reserve ratio was 39.22%, 40.94% and 55.60%,
respectively, at December 31, 2013, September 30, 2013 and December 31,
2012.Non-performing assets decreased slightly from the previous quarter end
to $39.61 million or 5.17 percent of total loans and other real estate owned
as of December 31, 2013.This compares to $40.64 million or 5.32 percent and
$46.16 million or 6.05 percent, respectively, as of September 30, 2013 and
December 31, 2012. Loan loss reserve methodology resulted in twelve months
ended December 31, 2013 provision for loan losses of $4.49 million compared to
$6.79 million for the comparable 2012 period. With continued stabilization in
the economy and the housing and real estate market, we expect continued
improvement in our substandard assets. 

Other real estate ("OREO") totaled $15.50 million at December 31, 2013
compared to $16.11 million and $15.94 million, respectively, at September 30,
2013 and December 31, 2012.During twelve months ended December 31, 2013,
$11.19 million has been added to OREO, thus a reduction from sales and/or
write-downs of $11.63 million.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 2013 net charge-offs were $1.43 million, or 0.19
percent of average loans as compared to net charge-offs of $2.81 million, or
0.38 percent of average loans in fourth quarter 2012, while for the twelve
months ended December 31, 2013 net charge-offs were $5.42 million, or 0.73
percent of average loans as compared to net charge-offs of $9.70 million, or
1.34 percent of average loans for the comparable 2012 period.The loan loss
reserve was $11.81 million on December 31, 2013, or 1.57 percent of total
loans compared to $12.95 million, or 1.73 percent on September 30, 2013 and to
$12.74 million, or 1.70 percent on December 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 December 31, 2013.

Noninterest Income

Total noninterest income decreased in the comparable periods as noninterest
income for twelve months ended December 31, 2013 was $8.38 million compared to
$9.73 million in the comparable 2012 period, or a decrease of 13.93 percent.
Service charge fee income on deposit accounts increased $1.12 million, or
31.29 percent.Mortgage fee income increased $84 thousand, or 21.00 percent
and gains on the sale of SBA/USDA loans increased $329 thousand, or 107.52
percent.Offsetting these increases was security gains and losses in which
losses were $364 thousand for twelve months ended December 31, 2013 compared
to gains of $2.84 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 decreased slightly to $34.62 million in twelve
months ended December 31, 2013 compared to $35.38 million in the comparable
2012 period, or a decrease of 2.15%.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 $3.92 million
in twelve months ended December 31, 2013 compared to $5.61 million in the
comparable 2012 period.Salaries and employee benefit expenses increased to
$16.69 million in twelve months ended December 31, 2013 compared to $15.57
million in the comparable 2012 period, or an increase of 7.24 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 decreased to $14.13 million compared to $15.93 million, or
a decrease of 11.29 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          12/31/13    12/31/12    12/31/13    12/31/12
Net Interest Income       $9,694       $9,076       $37,689      $36,273
Provision for Loan Losses 285          1,158        4,485        6,785
Non-interest Income       2,018        2,642        8,377        9,733
Non-interest Expense      8,998        9,744        34,617       35,379
Income Taxes              803          248          2,235        1,201
Net Income                1,626        568          4,629        2,641
Preferred Stock Dividend  385          365          1,509        1,435
Net Income Available to    1,241        203          3,120        1,206
Common Shareholders
                                                              
                          QUARTER ENDED             YEAR-TO-DATE
PER COMMON SHARE SUMMARY  12/31/13     12/31/12    12/31/13     12/31/12
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   $0.15        $0.02        $0.37        $0.14
(b)
Earnings Per Diluted Share $0.15        $0.02        $0.37        $0.14
(b)
Common Book Value Per      $7.34        $8.05        $7.34        $8.05
Share
Tangible Common Book Value $7.32        $8.02        $7.32        $8.02
Per Share
                                                              
                          QUARTER ENDED             YEAR-TO-DATE
OPERATING RATIOS (1)      12/31/13     12/31/12    12/31/13    12/31/12
Net Interest Margin (a)   3.68%        3.49%        3.61%        3.41%
Return on Average Assets   0.44%        0.07%        0.28%        0.11%
(b)
Return on Average Total    5.43%        0.85%        3.34%        1.25%
Equity (b)
Efficiency (c)            74.24%       88.67%       74.29%       81.68%
                                                              
(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                   12/31/13  12/31/12            
Total Assets                      $1,151,085 $1,139,397           
Loans, Net of Reserves            739,052    734,079              
Allowance for Loan Losses         11,806     12,737               
Intangible Assets                 188        224                  
Deposits                          987,530    979,685              
Common Shareholders' Equity       61,954     67,932               
Common Equity to Total Assets      5.38%      5.96%                
Total Equity                      89,954     95,759               
Total Equity to Total Assets      7.81%      8.40%                
                                                                
                                  QUARTER ENDED         YEAR-TO-DATE
AVERAGE BALANCES                  12/31/13  12/31/12  12/31/13  12/31/12
Total Assets                      $1,131,317 $1,114,766 $1,118,071 $1,139,814
Loans, Net of Reserves            740,538    725,672    731,280    706,091
Deposits                          966,458    956,438    953,312    969,690
Common Shareholders' Equity        63,526     67,783     65,446     68,798
Total Equity                      91,501     95,587     93,358     96,541
                                                                
                                  QUARTER ENDED        YEAR-TO-DATE
ASSET QUALITY                     12/31/13  12/31/12  12/31/13  12/31/12
Nonperforming Loans               $24,111    $29,855    $24,111    $29,855
Nonperforming Assets              39,613     46,163     39,613     46,163
Substandard Assets                53,449     74,574     53,449     74,574
Net Loan Chg-offs (Recoveries)    1,430      2,810      5,416      9,698
Reserve for Loan Loss to Total     1.57%      1.70%      1.57%      1.70%
Loans
Reserve for Loan Loss to Non-      48.97%     42.66%     48.97%     42.66%
performing Loans
Reserve for Loan Loss to           29.80%     27.59%     29.80%     27.59%
Non-performing Assets
Net Loan Chg-offs (Recoveries) to  0.19%      0.38%      0.73%      1.34%
Avg. Total Loans
Nonperforming Loans to Total       3.21%      4.00%      3.21%      4.00%
Loans
Nonperforming Assets to Total      3.44%      4.05%      3.44%      4.05%
Assets
Nonperforming Assets to Total      5.17%      6.05%      5.17%      6.05%
LoansAnd Other Real Estate
Substandard Assets to Tier One
Capital and Allowance for Loan     39.22%     55.60%     39.22%     55.60%
Losses


Quarterly Comparative Data (in thousands, except per share data)
                        4Q2013   3Q2013   2Q2013   1Q2013   4Q2012
                                                               
Assets                  $1,151,085 $1,113,141 1,106,454 $1,118,865 $1,139,397
Loans                   739,052    734,792    730,920   723,651    734,079
Deposits                987,530    949,463    943,337   953,575    979,685
Common Shareholders'     61,954     62,859     63,828    67,567     67,932
Equity
Total Equity            89,954     90,815     91,740    95,437     95,759
Net Income              1,626      1,080      986       937        568
Net Income Available to                                         
Common Shareholders    1,241      701        611       567        203
Net Income Per Share   0.15       0.08       0.07      0.07       0.02
                                                               
                                                               
Key Performance Ratios  4Q2013    3Q2013   2Q2013   1Q2013    4Q2012
                                                               
Return on Average Assets 0.44%      0.25%      0.22%     0.20%      0.07%
(1)
Return on Average Total  5.43%      3.09%      2.56%     2.37%      0.85%
Equity (1)
Common Equity to Total   5.38%      5.65%      5.77%     6.04%      5.96%
Assets
Total Equity to Total    7.81%      8.16%      8.29%     8.53%      8.40%
Assets
Net Interest Margin     3.68%      3.67%      3.64%     3.45%      3.49%
                                                               
(1) Computed using net income available to shareholders


Consolidated Balance Sheets Colony Bankcorp, Inc.
(in thousands)
                                                               
                                                  Dec. 31, 2013 Dec. 31, 2012
                                                  (unaudited) (audited)
ASSETS                                                          
Cash and Cash Equivalents                                      
Cash and Due from Banks                          $25,692       $29,244
Federal Funds Sold                               20,495        20,002
                                                  46,187        49,246
Interest-Bearing Deposits                         21,960        21,795
Investment Securities                                           
Available for Sale, at Fair Value                263,258       268,301
Held for Maturity, at Cost (Fair Value of $37 and
$42 as of Dec. 31, 2013 and Dec. 31, 2012 ,        37            41
Respectively)
                                                  263,295       268,342
Federal Home Loan Bank Stock, at Cost             3,164         3,364
Loans                                             751,218       747,050
Allowance for Loan Losses                        (11,806)      (12,737)
Unearned Interest and Fees                       (360)         (234)
                                                  739,052       734,079
Premises and Equipment                            24,876        24,916
Other Real Estate                                 15,502        15,941
Other Intangible Assets                           188           224
Other Assets                                      36,861        21,490
Total Assets                                       $1,151,085    $1,139,397
                                                               
LIABILITIES AND STOCKHOLDERS' EQUITY                            
                                                               
Deposits                                                        
Noninterest-Bearing                              $115,261      $123,967
Interest-Bearing                                 872,269       855,718
                                                  987,530       979,685
Borrowed Money                                                 
Subordinated Debentures                          24,229        24,229
Other Borrowed Money                             40,000        35,000
                                                  64,229        59,229
                                                               
Other Liabilities                                 9,372         4,724
                                                               
Stockholders' Equity                                            
Preferred Stock, Stated Value $1,000 a Share;                 
Authorized 10,000,000 Shares, Issued 28,000       28,000        27,827
Shares
Common Stock, Par Value $1 a share; Authorized
20,000,000 Shares, Issued 8,439,258 Shares as of   8,439         8,439
Dec. 31, 2013 and Dec. 31, 2012, Respectively
Paid in Capital                                  29,145        29,145
Retained Earnings                                33,445        30,498
Accumulated Other Comprehensive Loss, Net of Tax  (9,075)       (150)
                                                  89,954        95,759
Total Liabilities and Stockholders' Equity        $1,151,085    $1,139,397


Consolidated Statements of Income Colony Bankcorp, Inc.
(in thousands except per share data)
                             Quarter                  Year-to-Date
                             Three Months Ended      Twelve Months Ended
                             12/31/13    12/31/12   12/31/13    12/31/2012
                             (unaudited) (audited) (unaudited) (audited)
Interest Income                                                  
Loans, Including Fees       $10,327      $10,572     $41,350      $41,963
Federal Funds Sold          12           27          39           99
Deposits with Other Banks    6            9           27           43
Investment Securities                                           
U. S. Government Agencies   1,063        699         3,517        4,824
State, County and Municipal 30           34          124          207
Corporate
Obligations/Asset-Backed      5            14          47           76
Sec.
Dividends on Other            23           22          82           77
Investments
                             11,466       11,377      45,186       47.289
Interest Expense                                                
Deposits                    1,369        1,904       5,821        8,737
Borrowed Money              403          397         1,676        2,279
                             1,772        2,301       7,497        11,016
Net Interest Income          9,694        9,076       37,689       36,273
Provision for Loan Losses   285          1,158       4,485        6,785
Net Interest Income After     9,409        7,918       33,204       29,488
Provision for Loan Losses
                                                                
Noninterest Income                                               
Service Charges on Deposits 1,207        1,046       4,691        3,573
Other Service Charges,       436          396         1,725        1,515
Commissions and Fees
Mortgage Fee Income         107          104         484          400
Securities Gains(Losses)    (362)        770         (364)        2,837
Other                       630          326         1,841        1,408
                             2,018        2,642       8,377        9,733
Noninterest Expense                                              
Salaries and Employee        4,196        4,079       16,692       15,565
Benefits
Occupancy and Equipment     952          983         3,794        3,884
Other                       3,850        4,682       14,131       15,930
                             8,998        9,744       34,617       35,379
                                                                
Income Before Income Taxes   2,429        816         6,964        3,842
Income Taxes                 803          248         2,335        1,201
Net Income                   1,626        568         4,629        2,641
                                                                
Preferred Stock Dividends    385          365         1,509        1,435
                                                                
Net Income Available to       $1,241       $203        $3,120       $1,206
Common Shareholders
Net Income Per Share of                                          
Common Stock
Basic                       $0.15        $0.02       $0.37        $0.14
Diluted                     $0.15        $0.02       $0.37        $0.14
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