Declares Quarterly Cash Dividend of $0.11
Per Share
Colony Bankcorp, Inc. (Nasdaq: CBAN) (“Colony” or the “Company”)
today reported financial results for the third quarter of 2023.
Financial highlights are shown below.
Financial Highlights:
- Net income increased to $5.8 million, or $0.33 per diluted
share, for the third quarter of 2023, compared to $5.3 million, or
$0.30 per diluted share, for the second quarter of 2023, and $5.3
million, or $0.30 per diluted share, for the third quarter of
2022.
- Operating net income increased to $6.0 million, or $0.34 of
adjusted earnings per diluted share, for the third quarter of 2023,
compared to $5.7 million, or $0.33 of adjusted earnings per diluted
share, for the second quarter of 2023, and $5.3 million, or $0.30
of adjusted earnings per diluted share, for the third quarter of
2022. (See Reconciliation of Non-GAAP Measures).
- Strong liquidity with available sources of funding of
approximately $1.4 billion at September 30, 2023. No overnight
borrowings utilized or Federal Reserve Bank Term Funding program
used as of September 30, 2023.
- Estimated uninsured deposits of $740.0 million, or 28.21% of
total Bank deposits at September 30, 2023. Adjusted uninsured
deposit estimate (excluding deposits collateralized by public funds
or internal accounts) of $451.9 million, or 17.22% of total Bank
deposits at September 30, 2023.
- Provision for credit losses of $1.0 million was recorded in
third quarter of 2023 compared to $200,000 in second quarter of
2023, and $1.3 million in third quarter of 2022.
- Total loans were $1.86 billion at September 30, 2023, an
increase of $26.1 million, or 1.42%, from the prior quarter.
- Total deposits were $2.59 billion and $2.63 billion at
September 30, 2023 and June 30, 2023, respectively, a decrease of
$35.9 million.
- Mortgage production was $78.4 million, and mortgage sales
totaled $53.3 million in the third quarter of 2023 compared to
$106.4 million and $66.4 million, respectively, for the second
quarter of 2023.
- Small Business Specialty Lending (“SBSL”) closed $34.5 million
in Small Business Administration (“SBA”) loans and sold $14.6
million in SBA loans in the third quarter of 2023 compared to $26.0
million and $11.1 million, respectively, for the second quarter of
2023.
The Company also announced that on October 25, 2023, the Board
of Directors declared a quarterly cash dividend of $0.11 per share,
to be paid on its common stock on November 22, 2023, to
shareholders of record as of the close of business on November 8,
2023. The Company had 17,567,983 shares of its common stock
outstanding as of October 24, 2023.
“We continue to be pleased with our performance in the current
environment. Our quarter over quarter earnings improved as we
remain focused on enhancing our operational efficiency, even in the
face of persistent industry-wide challenges. Noninterest expenses
decreased as we diligently maintained our disciplined approach to
expense control and saw the results of our previous quarter's
efforts come to fruition.
"In light of the evolving economic landscape, we anticipate a
more conservative approach to loan growth in the coming quarters.
This outlook aligns with our commitment to prudent risk management
and achieving appropriate returns with the current increased cost
of funds. We prioritize the long-term financial health of our
institution and the well-being of our customers as we navigate
these market conditions,” said Heath Fountain, Chief Executive
Officer and Acting Chief Financial Officer.
“Total deposits declined slightly from the previous quarter
resulting from the seasonality of a small portion of our deposit
base, however, we have seen total deposits increase on a
year-to-date basis. Additionally, net-interest margin increased 1
basis point from the prior quarter, but we maintain our outlook of
flat to slightly down over the next quarter as we continue to see
mix and rate changes along with competition on deposit pricing.
“Asset quality remains strong as non-performing loans decreased
from the previous quarter and non-performing loans in our
commercial real estate portfolio continue to remain at low levels.
The uptick in loan charge-offs pertains to the non-government
guaranteed portion of a limited number of loans within our Small
Business Specialty Lending Division.”
Balance Sheet
- Total assets were $3.09 billion at September 30, 2023, a
decrease of $7.2 million from June 30, 2023.
- Total loans, including loans held for sale, were at $1.89
billion at September 30, 2023, an increase of $25.1 million from
the quarter ended June 30, 2023.
- Total deposits were $2.59 billion and $2.63 billion at
September 30, 2023 and June 30, 2023, respectively, a decrease of
$35.9 million. Interest bearing demand deposits increased $7.0
million and savings and money market deposits increased $22.1
million, which was partially offset by a decrease in time deposits
of $18.0 million from June 30, 2023 to September 30, 2023.
- Total borrowings at September 30, 2023 totaled $248.4 million,
an increase of $30.0 million or, 13.7%, compared to June 30, 2023
related to increases in Federal Home Loan Bank advances.
Capital
- Colony continues to maintain a strong capital position, with
ratios that exceed regulatory minimums required to be considered as
“well-capitalized.”
- Preliminary tier one leverage ratio, tier one capital ratio,
total risk-based capital ratio and common equity tier one capital
ratio were 8.93%, 12.46%, 15.11%, and 11.36%, respectively, at
September 30, 2023.
Third Quarter and September 30, 2023 Year to Date Results of
Operations
- Net interest income, on a tax-equivalent basis, totaled $19.8
million for the third quarter ended September 30, 2023 compared to
$21.0 million for the same period in 2022. Net interest income, on
a tax-equivalent basis, for the nine months ended September 30,
2023 totaled $59.9 million, compared to $59.6 million for the nine
months ended September 30, 2022. Quarter over quarter there was a
decrease of $1.2 million and only a slight increase in year to date
comparisons. Increases can be seen in both income on interest
earning assets offset by expenses on interest bearing liabilities
due to the significant rise in interest rates period over period
along with increases in FHLB advances. Income on interest earning
assets increased $8.9 million, to $32.8 million for the third
quarter of 2023 and $26.8 million, to $92.3 million for the nine
month period ended September 30, 2023, each compared to the
respective period in 2022. Expense on interest bearing liabilities
increased $10.1 million, to $13.0 million for the third quarter of
2023 and $26.5 million, to $32.3 million for the nine month period
ended September 30, 2023, each compared to the respective period in
2022.
- Net interest margin for the third quarter of 2023 was 2.78%
compared to 3.26% for the third quarter of 2022. Net interest
margin was 2.87% for the nine months ended September 30, 2023
compared to 3.19% for the nine months ended September 30, 2022. The
decrease for each period is the result of rate increases in
interest earning liabilities outpacing the rate increases in
interest bearing assets.
- Noninterest income totaled $9.7 million for the third quarter
ended September 30, 2023, an increase of $1.6 million, or 19.30%,
compared to the same period in 2022. This increase was related to
increases in insurance commissions, equity investment income and
income on wealth advisory services which are included in other
noninterest income. Noninterest income totaled $26.3 million for
the nine months ended September 30, 2023, a decrease of $1.0
million, or 3.68%, compared to the same period in 2022. This
decrease was primarily attributable to decreases in mortgage fee
income and SBSL loan sales offset by increases in insurance
commissions, equity investment income and income on wealth advisory
services which are included in other noninterest income.
- Noninterest expense totaled $20.9 million for the third quarter
ended September 30, 2023, compared to $21.4 million for the same
period in 2022. Noninterest expense totaled $63.5 million for the
nine months ended September 30, 2023, compared to $67.6 million for
the same period in 2022. These decreases were a result of overall
decreases in salaries and employee benefits related to lower
commissions and bonus expenses as well as a decreases in data
processing expense as a result of cost savings upon renewal of the
core processing contract partially offset by an increase in other
loan related fees.
Asset Quality
- Nonperforming assets totaled $10.1 million and $11.9 million at
September 30, 2023 and June 30, 2023, respectively, a decrease of
$1.8 million due to charge offs and paid off loans during the
quarter.
- Other real estate owned and repossessed assets totaled $812,000
at September 30, 2023 and $792,000 at June 30, 2023.
- Net loans charged-off were $898,000, or 0.19% of average loans
for the third quarter of 2023, compared to net charge-offs of
$200,000 or 0.04% for the second quarter of 2023.
- The credit loss reserve was $17.4 million, or 0.93% of total
loans, at September 30, 2023, compared to $17.1 million, or 0.93%
of total loans at June 30, 2023.
Earnings call information
The Company will host an earnings conference call at 9:00 a.m.
ET on Thursday, October 26, 2023, to discuss the recent results and
answer appropriate questions. The conference call can be accessed
by dialing 1-888-259-6580 (or 1-416-764-8624 for international
participants). The conference call access code is 97884160. A
replay of the call will be available until Thursday, November 2,
2023. To listen to the replay, dial 1-877-674-7070 and enter the
access code 884160#.
About Colony Bankcorp
Colony Bankcorp, Inc. is the bank holding company for Colony
Bank. Founded in 1975 and headquartered in Fitzgerald, Georgia,
Colony operates 38 locations throughout Georgia and is now serving
Alabama. At Colony Bank, we offer a range of banking solutions for
personal and business customers. In addition to traditional banking
services, Colony provides specialized solutions including mortgage,
government guaranteed lending, consumer insurance, wealth
management and merchant services. Colony’s common stock is traded
on the NASDAQ Global Market under the symbol “CBAN.” For more
information, please visit www.colony.bank. You can also follow the
Company on social media.
Forward-Looking Statements
Certain statements contained in this press release that are not
statements of historical fact constitute “forward-looking
statements” within the meaning of, and subject to the protections
of, Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. 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, and subject to
the protections of, Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Examples of forward-looking statements include, but are
not limited to: (i) projections and/or expectations 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; (iv) statements regarding growth strategy,
capital management, liquidity and funding, and future
profitability; and (v) 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.
Prospective investors are cautioned that any such
forward-looking statements are not guarantees of future performance
and involve known and unknown risks and uncertainties. Factors that
might cause such differences include, but are not limited to: the
impact of current and economic conditions, particularly those
affecting the financial services industry, including the effects of
declines in the real estate market, high unemployment rates,
inflationary pressures, elevated interest rates and slowdowns in
economic growth, as well as the financial stress on borrowers as a
result of the foregoing; potential impacts of adverse developments
in the banking industry highlighted by high-profile bank failures,
including impacts on customer confidence, deposit outflows,
liquidity and the regulatory response thereto; risks arising from
media coverage of the banking industry; risks arising from
perceived instability in the banking sector; the risks of changes
in interest rates and their effects on the level, cost, and
composition of, and competition for, deposits, loan demand and
timing of payments, the values of loan collateral, securities, and
interest sensitive assets and liabilities; the ability to attract
new or retain existing deposits, to retain or grow loans or
additional interest and fee income, or to control noninterest
expense; the effect of pricing pressures on the Company’s net
interest margin; the failure of assumptions underlying the
establishment of reserves for possible credit losses, fair value
for loans and other real estate owned; changes in real estate
values; the Company’s ability to implement its various strategic
and growth initiatives; increased competition in the financial
services industry, particularly from regional and national
institutions, as well as from fintech companies; economic
conditions, either nationally or locally, in areas in which the
Company conducts operations being less favorable than expected;
changes in the prices, values and sales volumes of residential and
commercial real estate; developments in our mortgage banking
business, including loan modifications, general demand, and the
effects of judicial or regulatory requirements or guidance;
legislation or regulatory changes which adversely affect the
ability of the consolidated Company to conduct business
combinations or new operations; adverse results from current or
future litigation, regulatory examinations or other legal and/or
regulatory actions, including as a result of the Company’s
participation in and execution of government programs; potential
impact of the phase-out of the London Interbank Offered Rate
(“LIBOR”) or other changes involving LIBOR; significant turbulence
or a disruption in the capital or financial markets and the effect
of a fall in the stock market prices on our investment securities;
the effects of war or other conflicts including the impacts related
to or resulting from Russia’s military action in Ukraine or the
conflict in Israel and surrounding areas; risks related to the
Company’s recently completed acquisitions, including that the
anticipated benefits from the recently completed acquisitions are
not realized in the time frame anticipated or at all as a result of
changes in general economic and market conditions or other
unexpected factors or events; the risks associated with the
Company’s pursuit of future acquisitions; the impact of generative
artificial intelligence; fraud or misconduct by internal or
external actors, and system failures, cybersecurity threats or
security breaches and the cost of defending against them; and
general competitive, economic, political and market conditions or
other unexpected factors or events. These and other factors, risks
and uncertainties could cause the actual results, performance or
achievements of the Company to be materially different from the
future results, performance or achievements expressed or implied by
such forward-looking statements. Many of these factors are beyond
the Company’s ability to control or predict.
Forward-looking statements speak only as of the date on which
such statements are made. These forward-looking statements are
based upon information presently known to the Company’s management
and are inherently subjective, uncertain and subject to change due
to any number of risks and uncertainties, including, without
limitation, the risks and other factors set forth in the Company’s
filings with the Securities and Exchange Commission, the Company’s
Annual Report on Form 10-K for the year ended December 31, 2022,
under the captions “Cautionary Note Regarding Forward-Looking
Statements” and “Risk Factors,” and in the Company’s quarterly
reports on Form 10-Q and current reports on Form 8-K. 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.
Explanation of Certain Unaudited Non-GAAP Financial
Measures
The measures entitled operating noninterest income, operating
noninterest expense, operating net income, adjusted earnings per
diluted share, tangible book value per common share, tangible
equity to tangible assets, operating efficiency ratio, operating
net noninterest expense to average assets and pre-provision net
revenue are not measures recognized under U.S. generally accepted
accounting principles (GAAP) and therefore are considered non-GAAP
financial measures. The most comparable GAAP measures are
noninterest income, noninterest expense, net income, diluted
earnings per share, book value per common share, total equity to
total assets, efficiency ratio, net noninterest expense to average
assets and net interest income before provision for credit losses,
respectively. Operating noninterest income excludes gain on sale of
bank premises. Operating noninterest expense excludes
acquisition-related expenses and severance costs. Operating net
income and operating efficiency ratio both exclude
acquisition-related expenses, severance costs and FHLB mark from
called borrowings from net income and efficiency ratio,
respectively. Operating net noninterest expense to average assets
ratio excludes from net noninterest expense, severance costs,
acquisition-related expenses and gain on sale of bank premises.
Acquisition-related expenses includes fees associated with
acquisitions and vendor contract buyouts. Severance costs includes
costs associated with termination and retirement of employees.
Adjusted earnings per diluted share includes the adjustments to
operating net income. Tangible book value per common share and
tangible equity to tangible assets exclude goodwill and other
intangibles from book value per common share and total equity to
total assets, respectively. Pre-provision net revenue is calculated
by adding noninterest income to net interest income before
provision for credit losses, and subtracting noninterest
expense.
Management uses these non-GAAP financial measures in its
analysis of the Company's performance and believes these
presentations provide useful supplemental information, and a
clearer understanding of the Company's performance, and if not
provided would be requested by the investor community. The Company
believes the non-GAAP measures enhance investors' understanding of
the Company's business and performance. These measures are also
useful in understanding performance trends and facilitate
comparisons with the performance of other financial institutions.
The limitations associated with operating measures are the risk
that persons might disagree as to the appropriateness of items
comprising these measures and that different companies might
calculate these measures differently.
These disclosures should not be considered an alternative to
GAAP. The computations of operating noninterest income, operating
noninterest expense, operating net income, adjusted earnings per
diluted share, tangible book value per common share, tangible
equity to tangible assets, operating efficiency ratio, operating
net noninterest expense to average assets and pre-provision net
revenue and the reconciliation of these measures to noninterest
income, noninterest expense, net income, diluted earnings per
share, book value per common share, total equity to total assets,
efficiency ratio, net noninterest expense to average assets and net
interest income before provision for credit losses are set forth in
the table below.
Colony Bankcorp, Inc.
Reconciliation of Non-GAAP
Measures
2023
2022
(dollars in thousands, except per share
data)
Third Quarter
Second Quarter
First Quarter
Fourth Quarter
Third Quarter
Operating noninterest income
reconciliation
Noninterest income (GAAP)
$
9,718
$
8,952
$
7,659
$
7,688
$
8,145
Gain on sale of bank premises
—
(125
)
—
—
—
Operating noninterest income
$
9,718
$
8,827
$
7,659
$
7,688
$
8,145
Operating noninterest expense
reconciliation
Noninterest expense (GAAP)
$
20,881
$
21,432
$
21,165
$
21,826
$
21,367
Severance costs
(220
)
(635
)
(431
)
—
—
Acquisition-related expenses
—
—
(161
)
—
(2
)
Operating noninterest expense
$
20,661
$
20,797
$
20,573
$
21,826
$
21,365
Operating net income
reconciliation
Net income (GAAP)
$
5,804
$
5,302
$
5,043
$
5,551
$
5,252
Severance costs
220
635
431
—
—
Acquisition-related expenses
—
—
161
—
2
Gain on sale of bank premises
—
(125
)
—
—
—
Income tax benefit
(48
)
(93
)
(107
)
—
—
Operating net income
$
5,976
$
5,719
$
5,528
$
5,551
$
5,254
Weighted average diluted shares
17,569,493
17,580,557
17,595,688
17,630,971
17,645,119
Adjusted earnings per diluted
share
$
0.34
$
0.33
$
0.31
$
0.31
$
0.30
Tangible book value per common share
reconciliation
Book value per common share (GAAP)
$
13.59
$
13.65
$
13.57
$
13.08
$
12.81
Effect of goodwill and other
intangibles
(3.04
)
(3.07
)
(3.08
)
(3.10
)
(3.12
)
Tangible book value per common share
$
10.55
$
10.58
$
10.49
$
9.98
$
9.69
Tangible equity to tangible assets
reconciliation
Equity to assets (GAAP)
7.72
%
7.72
%
7.97
%
7.84
%
8.06
%
Effect of goodwill and other
intangibles
(1.63
)
(1.63
)
(1.70
)
(1.74
)
(1.84
)
Tangible equity to tangible assets
6.09
%
6.09
%
6.27
%
6.10
%
6.22
%
Operating efficiency ratio
calculation
Efficiency ratio (GAAP)
71.17
%
76.18
%
74.98
%
75.03
%
73.57
%
Severance costs
(0.75
)
(2.26
)
(1.53
)
—
—
Acquisition-related expenses
—
—
(0.57
)
—
(0.01
)
Gain on sale of bank premises
—
0.44
—
—
—
Operating efficiency ratio
70.42
%
74.36
%
72.88
%
75.03
%
73.56
%
Operating net noninterest expense(1) to
average assets calculation
Net noninterest expense to average
assets
1.45
%
1.65
%
1.86
%
1.96
%
1.89
%
Severance Costs
(0.03
)
(0.09
)
(0.06
)
—
—
Acquisition-related expenses
—
—
(0.02
)
—
—
Gain on Sale of bank premises
—
0.02
—
—
—
Operating net noninterest expense to
average assets
1.42
%
1.58
%
1.78
%
1.96
%
1.89
%
Pre-provision net revenue
Net interest income before provision for
credit losses
$
19,621
$
19,181
$
20,568
$
21,400
$
20,898
Noninterest income
9,718
8,952
7,659
7,688
8,146
Total income
29,339
28,133
28,227
29,088
29,044
Noninterest expense
20,881
21,432
21,165
21,826
21,367
Pre-provision net revenue
$
8,458
$
6,701
$
7,062
$
7,262
$
7,677
(1) Net noninterest expense is defined as
noninterest expense less noninterest income
Colony Bankcorp, Inc.
Selected Financial Information
2023
2022
(dollars in thousands, except per share
data)
Third Quarter
Second Quarter
First Quarter
Fourth Quarter
Third Quarter
EARNINGS SUMMARY
Net interest income
$
19,621
$
19,181
$
20,568
$
21,400
$
20,898
Provision for credit losses
1,000
200
900
900
1,320
Noninterest income
9,718
8,952
7,659
7,688
8,146
Noninterest expense
20,881
21,432
21,165
21,826
21,367
Income taxes
1,654
1,199
1,119
811
1,105
Net income
$
5,804
$
5,302
$
5,043
$
5,551
$
5,252
PERFORMANCE MEASURES
Per common share:
Common shares outstanding
17,567,983
17,541,661
17,593,879
17,598,123
17,641,123
Weighted average basic shares
17,569,493
17,580,557
17,595,688
17,630,971
17,645,119
Weighted average diluted shares
17,569,493
17,580,557
17,595,688
17,630,971
17,645,119
Earnings per basic share
$
0.33
$
0.30
$
0.29
$
0.31
$
0.30
Earnings per diluted share
0.33
0.30
0.29
0.31
0.30
Adjusted earnings per diluted share(b)
0.34
0.33
0.31
0.31
0.30
Cash dividends declared per share
0.11
0.11
0.11
0.1075
0.1075
Common book value per share
13.59
13.65
13.57
13.08
12.81
Tangible book value per common
share(b)
10.55
10.58
10.49
9.98
9.69
Pre-provision net revenue(b)
$
8,458
$
6,701
$
7,062
$
7,262
$
7,677
Performance ratios:
Net interest margin (a)
2.78
%
2.77
%
3.08
%
3.23
%
3.25
%
Return on average assets
0.75
0.70
0.69
0.77
0.75
Return on average total equity
9.61
8.88
8.73
9.76
8.85
Efficiency ratio
71.17
76.18
74.98
75.03
73.57
Operating efficiency ratio (b)
70.42
74.36
72.88
75.03
73.56
Net noninterest expense to average
assets
1.45
1.65
1.86
1.96
1.89
Operating net noninterest expense to
average assets(b)
1.42
1.58
1.78
1.96
1.89
ASSET QUALITY
Nonperforming portfolio loans
$
5,625
$
6,716
$
5,636
$
5,693
$
5,292
Nonperforming government guaranteed
loans
3,641
4,369
1,529
17
10
Total nonperforming loans (NPLs)
9,266
11,085
7,165
5,710
5,302
Other real estate owned
812
792
651
651
246
Total nonperforming assets (NPAs)
10,078
11,877
7,816
6,361
5,548
Classified loans
20,704
19,267
18,747
15,105
18,310
Criticized loans
50,741
48,074
43,281
41,293
43,933
Net loan charge-offs
898
200
237
154
198
Allowance for credit losses to total
loans
0.93
%
0.93
%
0.92
%
0.93
%
0.96
%
Allowance for credit losses to total
NPLs
187.44
153.96
231.67
282.45
286.34
Allowance for credit losses to total
NPAs
172.34
143.69
212.37
253.55
273.65
Net charge-offs to average loans
0.19
0.04
0.05
0.04
0.05
NPLs to total loans
0.50
0.60
0.40
0.33
0.33
NPAs to total assets
0.33
0.38
0.26
0.22
0.20
NPAs to total loans and foreclosed
assets
0.54
0.65
0.43
0.37
0.35
AVERAGE BALANCES
Total assets
$
3,058,485
$
3,030,044
$
2,949,986
$
2,863,046
$
2,777,390
Loans, net
1,854,367
1,814,172
1,765,845
1,637,034
1,509,202
Loans, held for sale
29,444
21,237
14,007
22,644
30,238
Deposits
2,565,026
2,524,949
2,473,464
2,460,664
2,366,710
Total stockholders’ equity
239,571
239,579
234,147
225,639
235,557
(a) Computed using fully
taxable-equivalent net income.
(b) Non-GAAP measure - see “Explanation of
Certain Unaudited Non-GAAP Financial Measures” for more information
and reconciliation to GAAP.
Colony Bankcorp, Inc.
Average Balance Sheet and Net Interest
Analysis
Three Months Ended September
30,
2023
2022
(dollars in thousands)
Average
Balances
Income/ Expense
Yields/ Rates
Average
Balances
Income/ Expense
Yields/ Rates
Assets
Interest-earning assets:
Loans, net of unearned income 1
$
1,883,811
$
26,075
5.49
%
$
1,553,882
$
18,216
4.65
%
Investment securities, taxable
761,540
5,288
2.75
%
818,362
4,711
2.28
%
Investment securities, tax-exempt 2
106,136
610
2.28
%
115,368
638
2.19
%
Deposits in banks and short term
investments
78,295
787
3.99
%
70,455
278
1.56
%
Total interest-earning assets
2,829,782
32,760
4.59
%
2,558,067
23,843
3.70
%
Noninterest-earning assets
228,702
219,323
Total assets
$
3,058,485
$
2,777,390
Liabilities and stockholders'
equity
Interest-bearing liabilities:
Interest-earning demand and savings
$
1,382,638
$
4,455
1.28
%
$
1,424,171
$
772
0.21
%
Other time
672,442
5,883
3.47
%
370,282
677
0.72
%
Total interest-bearing deposits
2,055,080
10,338
2.00
%
1,794,453
1,449
0.32
%
Federal funds purchased
764
11
5.93
%
541
3
2.20
%
Federal Home Loan Bank advances
155,652
1,569
4.00
%
96,848
555
2.27
%
Other borrowings
66,342
1,041
6.22
%
65,741
822
4.96
%
Total other interest-bearing
liabilities
222,758
2,621
4.67
%
163,130
1,380
3.36
%
Total interest-bearing liabilities
2,277,838
12,959
2.26
%
1,957,583
2,829
0.57
%
Noninterest-bearing liabilities:
Demand deposits
509,946
$
572,257
Other liabilities
31,130
11,993
Stockholders' equity
239,571
235,557
Total noninterest-bearing liabilities and
stockholders' equity
780,647
819,807
Total liabilities and stockholders'
equity
$
3,058,485
$
2,777,390
Interest rate spread
2.34
%
3.13
%
Net interest income
$
19,801
$
21,014
Net interest margin
2.78
%
3.26
%
________________________________________
1The average balance of loans includes the
average balance of nonaccrual loans. Income on such loans is
recognized and recorded on the cash basis. Taxable-equivalent
adjustments totaling $54,000 and $33,000 for the quarters ended
September 30, 2023 and 2022, respectively, are calculated using the
statutory federal tax rate and are included in income and fees on
loans. Accretion income of $36,000 and $122,000 for the quarters
ended September 30, 2023 and 2022 are also included in income and
fees on loans.
2Taxable-equivalent adjustments totaling $128,000 and $83,000 for
the quarters ended September 30, 2023 and 2022, respectively, are
calculated using the statutory federal tax rate and are included in
tax-exempt interest on investment securities.
Colony Bankcorp, Inc.
Average Balance Sheet and Net Interest
Analysis
Nine months ended September
30,
2023
2022
(dollars in thousands)
Average
Balances
Income/ Expense
Yields/ Rates
Average
Balances
Income/ Expense
Yields/ Rates
Assets
Interest-earning assets:
Loans, net of unearned income 3
$
1,833,405
$
72,403
5.28
%
$
1,448,661
$
50,573
4.67
%
Investment securities, taxable
779,940
16,167
2.77
%
837,492
12,795
2.04
%
Investment securities, tax-exempt 4
106,599
1,837
2.30
%
110,561
1,661
2.01
%
Deposits in banks and short term
investments
67,828
1,853
3.65
%
101,432
437
0.58
%
Total interest-earning assets
2,787,772
92,260
4.42
%
2,498,146
65,466
3.50
%
Noninterest-earning assets
224,985
213,556
Total assets
$
3,012,757
$
2,711,702
Liabilities and stockholders'
equity
Interest-bearing liabilities:
Interest-earning demand and savings
$
1,388,248
$
10,201
0.98
%
$
1,432,892
$
1,340
0.13
%
Other time
611,032
13,692
3.00
%
347,383
1,334
0.51
%
Total interest-bearing deposits
1,999,280
23,893
1.60
%
1,780,275
2,674
0.20
%
Federal funds purchased
3,703
146
5.29
%
2,820
22
1.04
%
Federal Home Loan Bank advances5
161,099
5,140
4.27
%
65,191
1,746
3.58
%
Other borrowings
70,234
3,164
6.02
%
47,675
1,441
4.04
%
Total other interest-bearing
liabilities
235,036
8,450
4.81
%
115,686
3,209
3.71
%
Total interest-bearing liabilities
2,234,316
32,343
1.94
%
1,895,961
5,883
0.41
%
Noninterest-bearing liabilities:
Demand deposits
$
526,469
$
564,425
Other liabilities
13,897
11,357
Stockholders' equity
238,075
239,959
Total noninterest-bearing liabilities and
stockholders' equity
778,441
815,741
Total liabilities and stockholders'
equity
$
3,012,757
$
2,711,702
Interest rate spread
2.49
%
3.09
%
Net interest income
$
59,917
$
59,583
Net interest margin
2.87
%
3.19
%
________________________________________
3The average balance of loans includes the
average balance of nonaccrual loans. Income on such loans is
recognized and recorded on the cash basis. Taxable-equivalent
adjustments totaling $162,000 and $95,000 for the nine months ended
September 30, 2023 and 2022, respectively, are calculated using the
statutory federal tax rate and are included in income and fees on
loans. Accretion income of $160,000 and $550,000 for the nine
months ended September 30, 2023 and 2022 are also included in
income and fees on loans.
4Taxable-equivalent adjustments totaling
$386,000 and $216,000 for the nine months ended September 30, 2023
and 2022, respectively, are calculated using the statutory federal
tax rate and are included in tax-exempt interest on investment
securities.
5Federal Home Loan Bank advances interest expense includes $751,000
for the nine months ended September 30, 2022 and is the recognized
mark on two advances that were acquired in the SouthCrest
acquisition that were called early.
Colony Bankcorp, Inc.
Segment Reporting
2023
2022
(dollars in thousands)
Third Quarter
Second Quarter
First Quarter
Fourth Quarter
Third Quarter
Banking Division
Net interest income
$
18,778
$
18,562
$
20,141
$
21,037
$
20,508
Provision for credit losses
286
60
900
900
1,320
Noninterest income
6,233
5,433
4,915
4,312
4,288
Noninterest expenses
16,653
17,650
17,812
18,038
17,537
Income taxes
1,777
1,157
1,155
837
1,047
Segment income
$
6,295
$
5,128
$
5,189
$
5,574
$
4,892
Total segment assets
$
2,999,071
$
3,013,689
$
2,930,421
$
2,857,893
$
2,738,082
Full time employees
382
383
407
427
396
Mortgage Banking Division
Net interest income
$
52
$
31
$
3
$
(43
)
$
17
Provision for credit losses
—
—
—
—
—
Noninterest income
1,725
2,015
1,277
1,637
2,345
Noninterest expenses
2,040
1,971
1,712
1,936
2,289
Income taxes
(53
)
14
(86
)
(6
)
10
Segment income
$
(210
)
$
61
$
(346
)
$
(336
)
$
63
Total segment assets
$
9,991
$
15,984
$
7,895
$
18,221
$
16,905
Variable noninterest expense(1)
$
1,245
$
1,149
$
890
$
1,193
$
1,388
Fixed noninterest expense
795
822
822
743
901
Full time employees
45
51
59
65
61
Small Business Specialty Lending
Division
Net interest income
$
791
$
588
$
427
$
406
$
340
Provision for credit losses
714
140
—
—
—
Noninterest income
1,760
1,504
1,464
1,739
1,546
Noninterest expenses
2,188
1,811
1,641
1,852
1,541
Income taxes
(70
)
28
50
(20
)
48
Segment income
$
(281
)
$
113
$
200
$
313
$
297
Total segment assets
$
84,761
$
71,398
$
58,625
$
60,456
$
50,925
Full time employees
33
32
30
30
29
Total Consolidated
Net interest income
$
19,621
$
19,181
$
20,571
$
21,400
$
20,865
Provision for credit losses
1,000
200
900
900
1,320
Noninterest income
9,718
8,952
7,656
7,688
8,179
Noninterest expenses
20,881
21,432
21,165
21,826
21,367
Income taxes
1,654
1,199
1,119
811
1,105
Segment income
$
5,804
$
5,302
$
5,043
$
5,551
$
5,252
Total segment assets
$
3,093,823
$
3,101,071
$
2,996,941
$
2,936,570
$
2,805,912
Full time employees
460
466
496
522
486
(1) Variable noninterest expense includes
commission based salary expenses and volume based loan related
fees.
Colony Bankcorp, Inc.
Consolidated Balance Sheets
September 30, 2023
December 31, 2022
(dollars in thousands)
(unaudited)
(audited)
ASSETS
Cash and due from banks
$
23,010
$
20,584
Interest-bearing deposits in banks and
federal funds sold
118,330
60,094
Cash and cash equivalents
141,340
80,678
Investment securities available for sale,
at fair value
399,547
432,553
Investment securities held to maturity, at
amortized cost
451,056
465,858
Other investments, at cost
17,323
13,793
Loans held for sale
27,246
17,743
Loans, net of unearned income
1,864,971
1,737,106
Allowance for credit losses
(17,368
)
(16,128
)
Loans, net
1,847,603
1,720,978
Premises and equipment
42,544
41,606
Other real estate
812
651
Goodwill
48,923
48,923
Other intangible assets
4,530
5,664
Bank owned life insurance
56,541
55,504
Deferred income taxes, net
28,934
28,199
Other assets
27,424
24,420
Total assets
$
3,093,823
$
2,936,570
LIABILITIES AND STOCKHOLDERS’
EQUITY
Liabilities:
Deposits:
Noninterest-bearing
$
494,221
$
569,170
Interest-bearing
2,097,111
1,921,827
Total deposits
2,591,332
2,490,997
Federal Home Loan Bank advances
185,000
125,000
Other borrowed money
63,422
78,352
Accrued expenses and other liabilities
15,377
11,953
Total liabilities
$
2,855,131
$
2,706,302
Stockholders’ equity
Common stock, $1 par value; 50,000,000
shares authorized, 17,567,983 and 17,598,123 issued and
outstanding, respectively
$
17,568
$
17,598
Paid in capital
168,211
167,537
Retained earnings
120,732
111,573
Accumulated other comprehensive loss, net
of tax
(67,819
)
(66,440
)
Total stockholders’ equity
238,692
230,268
Total liabilities and stockholders’
equity
$
3,093,823
$
2,936,570
Colony Bankcorp, Inc.
Consolidated Statements of Income
(unaudited)
Three months ended September
30,
Nine months ended September
30,
2023
2022
2023
2022
(dollars in thousands, except per share
data)
Interest income:
Loans, including fees
$
26,022
$
18,183
$
72,241
$
50,478
Investment securities
5,770
5,266
17,619
14,240
Deposits in banks and short term
investments
787
278
1,853
437
Total interest income
32,579
23,727
91,713
65,155
Interest expense:
Deposits
10,338
1,449
23,893
2,674
Federal funds purchased
11
3
146
22
Federal Home Loan Bank advances
1,568
555
5,140
1,746
Other borrowings
1,041
822
3,164
1,441
Total interest expense
12,958
2,829
32,343
5,883
Net interest income
19,621
20,898
59,370
59,272
Provision for credit losses
1,000
1,320
2,100
2,470
Net interest income after provision for
credit losses
18,621
19,578
57,270
56,802
Noninterest income:
Service charges on deposits
2,200
2,104
6,141
5,823
Mortgage fee income
1,730
1,708
4,928
7,356
Gain on sales of SBA loans
1,268
1,215
3,429
4,805
Gain on sales of securities
—
(96
)
—
(72
)
Interchange fees
2,202
2,179
6,400
6,338
BOLI income
335
312
1,024
977
Other
1,983
724
4,407
2,110
Total noninterest income
9,718
8,146
26,329
27,337
Noninterest expense:
Salaries and employee benefits
11,973
12,154
37,929
40,498
Occupancy and equipment
1,620
1,645
4,741
4,872
Information technology expenses
2,064
2,491
6,406
7,394
Professional fees
752
881
2,348
2,773
Advertising and public relations
766
876
2,432
2,406
Communications
224
471
710
1,325
Other
3,482
2,849
8,912
8,380
Total noninterest expense
20,881
21,367
63,478
67,648
Income before income taxes
7,458
6,357
20,121
16,491
Income taxes
1,654
1,105
3,972
2,500
Net income
$
5,804
$
5,252
$
16,149
$
13,991
Earnings per common share:
Basic
$
0.33
$
0.30
$
0.92
$
0.82
Diluted
0.33
0.30
0.92
0.82
Dividends declared per share
0.11
0.1075
0.33
0.3225
Weighted average common shares
outstanding:
Basic
17,569,493
17,645,119
17,581,817
17,042,838
Diluted
17,569,493
17,645,119
17,581,817
17,042,838
Colony Bankcorp, Inc.
Quarterly Comparison
2023
2022
(dollars in thousands, except per share
data)
Third Quarter
Second Quarter
First Quarter
Fourth Quarter
Third Quarter
Assets
$
3,093,823
$
3,101,071
$
2,996,941
$
2,936,570
$
2,805,912
Loans, net
1,847,603
1,821,776
1,783,254
1,720,978
1,571,431
Deposits
2,591,332
2,627,211
2,516,129
2,490,997
2,409,662
Total equity
238,692
239,455
238,777
230,268
226,067
Net income
5,804
5,302
5,043
5,551
5,252
Earnings per basic share
$
0.33
$
0.30
$
0.29
$
0.31
$
0.30
Key Performance Ratios:
Return on average assets
0.75
%
0.70
%
0.69
%
0.77
%
0.75
%
Return on average total equity
9.61
%
8.88
%
8.73
%
9.76
%
8.85
%
Total equity to total assets
7.72
%
7.72
%
7.97
%
7.84
%
8.06
%
Tangible equity to tangible assets (a)
6.09
%
6.09
%
6.27
%
6.10
%
6.22
%
Net interest margin
2.78
%
2.77
%
3.08
%
3.23
%
3.26
%
(a) Non-GAAP measure - see “Explanation of
Certain Unaudited Non-GAAP Financial Measures” for more information
and reconciliation to GAAP.
Colony Bankcorp, Inc.
Quarterly Loan Comparison
2023
2022
(dollars in thousands)
Third Quarter
Second Quarter
First Quarter
Fourth Quarter
Third Quarter
Core
$
1,698,219
$
1,664,855
$
1,614,216
$
1,540,561
$
1,372,257
Purchased
166,752
173,987
185,637
196,545
214,356
Total
$
1,864,971
$
1,838,842
$
1,799,853
$
1,737,106
$
1,586,613
Colony Bankcorp, Inc.
Quarterly Loans by Location
Comparison
2023
2022
(dollars in thousands)
Third Quarter
Second Quarter
First Quarter
Fourth Quarter
Third Quarter
Alabama
$
45,135
$
44,301
$
41,118
$
21,122
$
7,291
Augusta
55,508
55,124
53,415
52,226
42,079
Coastal Georgia
239,281
242,249
248,253
259,730
252,083
Middle Georgia
116,776
119,041
119,720
115,504
114,630
Atlanta and North Georgia
431,632
420,231
419,480
375,106
356,421
South Georgia
446,221
463,558
448,558
457,283
449,684
West Georgia
188,208
192,348
204,664
210,676
177,431
Small Business Specialty Lending
65,187
56,908
50,513
45,944
35,267
Consumer Portfolio Mortgages
245,057
226,755
211,225
197,672
149,945
Marine/RV Lending
31,009
17,137
2,060
—
—
Other
957
1,190
847
1,843
1,782
Total
$
1,864,971
$
1,838,842
$
1,799,853
$
1,737,106
$
1,586,613
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231025803981/en/
T. Heath Fountain Chief Executive Officer and Acting Chief
Financial Officer 229-426-6000, extension 6012
Colony Bankcorp (NASDAQ:CBAN)
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