Colony Bankcorp Reports Third Quarter 2024 Results

Declares Quarterly Cash Dividend of $0.1125 Per Share

Colony Bankcorp, Inc. (Nasdaq: CBAN) (“Colony” or the “Company”) today reported financial results for the third quarter of 2024. Financial highlights are shown below.

Financial Highlights:

Net income increased to $5.6 million, or $0.32 per diluted share, for the third quarter of 2024, compared to $5.5 million, or $0.31 per diluted share, for the second quarter of 2024, and decreased as compared to $5.8 million, or $0.33 per diluted share, for the third quarter of 2023.
Operating net income increased to $6.2 million, or $0.35 of adjusted earnings per diluted share, for the third quarter of 2024, compared to $6.0 million, or $0.34 of adjusted earnings per diluted share, for the second quarter of 2024, and $6.0 million, or $0.34 of adjusted earnings per diluted share, for the third quarter of 2023. (See Reconciliation of Non-GAAP Measures).
Provision for credit losses of $750,000 was recorded in third quarter of 2024 compared to $650,000 in second quarter of 2024, and $1.0 million in third quarter of 2023.
Total loans were $1.89 billion at September 30, 2024, an increase of $20.5 million, or 1.10%, from the prior quarter.
Total deposits were $2.52 billion and $2.46 billion at September 30, 2024 and June 30, 2024, respectively, an increase of $64.7 million.
Mortgage production was $66.6 million, and mortgage sales totaled $57.8 million in the third quarter of 2024 compared to $65.1 million and $45.2 million, respectively, for the second quarter of 2024.
Small Business Specialty Lending (“SBSL”) closed $30.1 million in Small Business Administration (“SBA”) loans and sold $27.2 million in SBA loans in the third quarter of 2024 compared to $25.8 million and $27.0 million, respectively, for the second quarter of 2024.

The Company also announced that on October 23, 2024, the Board of Directors declared a quarterly cash dividend of $0.1125 per share, to be paid on its common stock on November 20, 2024, to shareholders of record as of the close of business on November 6, 2024. The Company had 17,554,884 shares of its common stock outstanding as of October 21, 2024.

“We are pleased with the improvement in operating results during the third quarter of 2024 and to see the continued progression in the performance of our complementary business lines alongside ongoing efficiency and expense discipline. We are also excited about our new digital banking platform rollout that occurred during the quarter. This enhanced platform will provide our customers with a state-of-the-art online banking experience which we believe will enable us to deliver solutions for all our customer’s needs in today’s digital environment,” said Heath Fountain, Chief Executive Officer.

"We had anticipated margin expansion in the second half of the year, but it did not materialize in the third quarter of 2024. However, we are pleased to report increased net interest income this quarter, and we believe that the margin has now reached its lowest point. We are optimistic about seeing improvement going forward as changes in the rate environment and easing from the Federal Reserve have allowed us to relieve pressure on our funding costs.”

“Loan growth picked up slightly in the third quarter and overall asset quality remains strong. Our pipelines for both loans and deposits remain strong and our team has done a fantastic job of continuing to grow and build customer relationships.”

Balance Sheet

Total assets were $3.07 billion at September 30, 2024, an increase of $57.2 million from June 30, 2024.
Total loans, including loans held for sale, were at $1.91 billion at September 30, 2024, an increase of $8.1 million from the quarter ended June 30, 2024.
Total deposits were $2.52 billion and $2.46 billion at September 30, 2024 and June 30, 2024, respectively, an increase of $64.7 million. Savings and money market deposits increased $13.5 million and time deposits increased $67.3 million which were partially offset by a decrease in interest bearing demand deposits of $18.3 million from June 30, 2024 to September 30, 2024.
Total borrowings at September 30, 2024 totaled $248.0 million, a decrease of $20.0 million or, 7.5%, compared to June 30, 2024, related to decreases 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.”
Under the Company’s approved stock repurchase program, a total of 35,000 shares of Company common stock were repurchased during the third quarter of 2024 at an average price of $15.02 per share and a total value of $525,817 thousand.
Preliminary tier one leverage ratio, tier one capital ratio, total risk-based capital ratio and common equity tier one capital ratio were 9.51%, 13.66%, 16.48%, and 12.51%, respectively, at September 30, 2024.

Third Quarter and September 30, 2024 Year to Date Results of Operations

Net interest income, on a tax-equivalent basis, totaled $18.7 million for the third quarter ended September 30, 2024 compared to $19.8 million for the same period in 2023. Net interest income, on a tax-equivalent basis, for the nine months ended September 30, 2024 totaled $56.1 million, compared to $59.9 million for the nine months ended September 30, 2023. For both periods, increases can be seen in income on interest earning assets which is more than offset by increases in 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 $2.0 million, to $34.8 million for the third quarter of 2024 compared to the respective period in 2023. Expense on interest bearing liabilities increased $3.1 million, to $16.1 million for the third quarter of 2024 compared to the respective period in 2023. Income on interest earning assets increased $9.5 million to $101.8 million for the nine month period ended September 30, 2024 compared to the respective period in 2023. Expense on interest bearing liabilities increased $13.3 million, to $45.6 million for the nine month period ended September 30, 2024 compared to the respective period in 2023.
Net interest margin for the third quarter of 2024 was 2.64% compared to 2.78% for the third quarter of 2023. Net interest margin was 2.67% for the nine months ended September 30, 2024 compared to 2.87% for the nine months ended September 30, 2023. The decrease for both periods is the result of rate increases in interest bearing liabilities outpacing the rate increases in interest earning assets.
Noninterest income totaled $10.1 million for the third quarter ended September 30, 2024, an increase of $364,000, or 3.75%, compared to the same period in 2023. Noninterest income totaled $29.1 million for the nine months ended September 30, 2024, an increase of $2.7 million, or 10.39%, compared to the same period in 2023. These increases were primarily related to increases in service charges on deposit accounts, gains on sales of SBA loans and income on merchant and wealth advisory services which is included in other noninterest income, which were partially offset by decreases in interchange fee income and losses on the sales of investment securities.
Noninterest expense totaled $20.8 million for the third quarter ended September 30, 2024, compared to $20.9 million for the same period in 2023. Noninterest expense totaled $61.6 million for the nine months ended September 30, 2024, compared to $63.5 million for the same period in 2023. The decrease for the third quarter ended September 30, 2024 was primarily related to decreases in loan related expenses and miscellaneous other losses. The decrease for the nine months ended September 30, 2024 was a result of the decrease in salaries and employee benefits primarily related to the expense initiative in 2023 which lowered total number of employees period over period.

Asset Quality

Nonperforming assets totaled $12.5 million and $7.3 million at September 30, 2024 and June 30, 2024, respectively, an increase of $5.2 million.
Other real estate owned and repossessed assets totaled $236,000 at September 30, 2024 and $595,000 at June 30, 2024.
Net loans charged-off were $139,000, or 0.03% of average loans for the third quarter of 2024, compared to $667,000 or 0.14% for the second quarter of 2024.
The credit loss reserve was $19.7 million, or 1.04% of total loans, at September 30, 2024, compared to $18.8 million, or 1.01% of total loans at June 30, 2024.

Earnings call information

The Company will host an earnings conference call at 9:00 a.m. ET on Thursday, October 24, 2024, to discuss the recent results and answer appropriate questions. The conference call can be accessed by dialing 800-267-6316 and using the Conference ID: COLONY3Q. A replay of the call will be available until Thursday, October 31, 2024. To listen to the replay, dial 800-839-8318.

About Colony Bankcorp

Colony Bankcorp, Inc. is the bank holding company for Colony Bank. Founded in Fitzgerald, Georgia in 1975, Colony operates locations throughout Georgia and has expanded to serve Birmingham, Alabama, as well as Tallahassee and the Florida Panhandle. 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 “may”, “will”, “anticipate”, “assume”, “should”, “support”, “indicate”, “would”, “believe”, “contemplate”, “expect”, “estimate”, “continue”, “further”, “plan”, “point to”, “project”, “could”, “intend”, “target” 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 (including the impact of prolonged elevated interest rates on our financial projections and models) and slowdowns in economic growth, as well as the financial stress on borrowers as a result of the foregoing; the risk of reductions in benchmark interest rates and the resulting impacts on net interest income; 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; 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; general risks related to the Company’s merger and acquisition activity, including 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; a deterioration of the credit rating for U.S. long-term sovereign debt, actions that the U.S. government may take to avoid exceeding the debt ceiling, and uncertainties surrounding debt ceiling and the federal budget; a potential U.S. federal government shutdown and the resulting impacts; 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, 2023, 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, operating return on average assets, operating return on average equity, 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, return on average assets, return on average equity, 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 and loss on sales of securities. Operating noninterest expense excludes acquisition-related expenses and severance costs. Operating net income, operating return on average assets, operating return on average equity and operating efficiency ratio all exclude acquisition-related expenses, severance costs, gain on sale of bank premises and loss on sales of securities from net income, return on average assets, return on average equity and efficiency ratio, respectively. Operating net noninterest expense to average assets ratio excludes from net noninterest expense, severance costs, acquisition-related expenses, gain on sale of bank premises and loss on sales of securities. 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, operating return on average assets, operating return on average equity, 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, return on average assets, return on average equity, 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

2024

2023

(dollars in thousands, except per share data)

Third Quarter

Second Quarter

First Quarter

Fourth Quarter

Third Quarter

Operating noninterest income reconciliation

Noninterest income (GAAP)

10,082

9,497

9,487

9,305

9,718

Gain on sale of bank premises

—

(236

)

—

Writedown of bank premises

—

197

—

Loss on sales of securities

454

425

555

—

Operating noninterest income

10,536

10,119

10,042

9,069

9,718

Operating noninterest expense reconciliation

Noninterest expense (GAAP)

20,835

20,330

20,397

19,587

20,881

Severance costs

(265

)

—

(23

)

—

(220

)

Operating noninterest expense

20,570

20,330

20,374

19,587

20,661

Operating net income reconciliation

Net income (GAAP)

5,629

5,474

5,333

5,598

5,804

Severance costs

265

—

220

Gain on sale of bank premises

—

(236

)

—

Writedown of bank premises

—

197

—

Loss on sales of securities

454

425

555

—

Income tax benefit

(143

)

(129

)

(121

)

(48

)

Operating net income

6,205

5,967

5,790

5,414

5,976

Weighted average diluted shares

17,587,902

17,551,007

17,560,210

17,567,839

17,569,493

Adjusted earnings per diluted share

0.35

0.34

0.33

0.31

0.34

Operating return on average assets reconciliation

Return on average assets (GAAP)

0.74

0.73

0.71

0.73

0.75

Severance costs

0.03

—

0.03

Gain on sale of bank premises

—

(0.03

)

—

Writedown of bank premises

—

0.03

—

Loss on sales of securities

0.06

0.07

—

Tax effect of adjustment items

(0.02

)

(0.02

)

(0.02

)

0.01

(0.01

)

Operating return on average assets

0.81

0.80

0.76

0.71

0.77

Operating return on average equity reconciliation

Return on average equity (GAAP)

8.33

8.46

8.38

9.20

9.61

Severance costs

0.39

—

0.04

—

0.36

Gain on sale of bank premises

—

(0.39

)

—

Writedown of bank premises

—

0.30

—

Loss on sales of securities

0.67

0.66

0.87

—

Tax effect of adjustment items

(0.21

)

(0.20

)

(0.19

)

0.09

(0.08

)

Operating return on average equity

9.18

9.22

9.10

8.90

9.89

Tangible book value per common share reconciliation

Book value per common share (GAAP)

15.73

15.09

14.80

14.51

13.59

Effect of goodwill and other intangibles

(2.97

)

(2.99

)

(3.01

)

(3.02

)

(3.04

)

Tangible book value per common share

12.76

12.10

11.79

11.49

10.55

Tangible equity to tangible assets reconciliation

Equity to assets (GAAP)

9.01

8.80

8.62

8.35

7.72

Effect of goodwill and other intangibles

(1.58

)

(1.62

)

(1.63

)

(1.62

)

(1.63

)

Tangible equity to tangible assets

7.43

7.18

6.99

6.73

6.09

Operating efficiency ratio calculation

Efficiency ratio (GAAP)

72.79

72.85

72.48

69.51

71.17

Severance costs

(0.93

)

—

(0.08

)

—

(0.75

)

Gain on sale of bank premises

—

0.84

—

Writedown of bank premises

—

(0.71

)

—

Loss on sales of securities

(1.59

)

(1.52

)

(1.97

)

—

Operating efficiency ratio

70.27

70.62

70.43

70.35

70.42

Operating net noninterest expense(1) to average assets calculation

Net noninterest expense to average assets

1.41

1.45

1.35

1.45

Severance costs

(0.03

)

—

(0.03

)

Gain on sale of bank premises

—

0.03

—

Writedown of bank premises

—

(0.03

)

—

Loss on sales of securities

(0.06

)

(0.06

)

(0.07

)

—

Operating net noninterest expense to average assets

1.32

1.36

1.38

1.42

Pre-provision net revenue

Net interest income before provision for credit losses

18,541

18,409

18,654

18,874

19,621

Noninterest income

10,082

9,497

9,487

9,305

9,718

Total income

28,623

27,906

28,141

28,179

29,339

Noninterest expense

20,835

20,330

20,397

19,587

20,881

Pre-provision net revenue

7,788

7,576

7,744

8,592

8,458

(1) Net noninterest expense is defined as noninterest expense less noninterest income.

Colony Bankcorp, Inc.

Selected Financial Information

2024

2023

(dollars in thousands, except per share data)

Third Quarter

Second Quarter

First Quarter

Fourth Quarter

Third Quarter

EARNINGS SUMMARY

Net interest income

18,541

18,409

18,654

18,874

19,621

Provision for credit losses

750

650

1,000

1,500

1,000

Noninterest income

10,082

9,497

9,487

9,305

9,718

Noninterest expense

20,835

20,330

20,397

19,587

20,881

Income taxes

1,409

1,452

1,411

1,494

1,654

Net income

5,629

5,474

5,333

5,598

5,804

PERFORMANCE MEASURES

Per common share:

Common shares outstanding

17,554,884

17,538,611

17,558,611

17,564,182

17,567,983

Weighted average basic shares

17,587,902

17,551,007

17,560,210

17,567,839

17,569,493

Weighted average diluted shares

17,587,902

17,551,007

17,560,210

17,567,839

17,569,493

Earnings per basic share

0.32

0.31

0.30

0.32

0.33

Earnings per diluted share

0.32

0.31

0.30

0.32

0.33

Adjusted earnings per diluted share(b)

0.35

0.34

0.33

0.31

0.34

Cash dividends declared per share

0.1125

0.1100

Common book value per share

15.73

15.09

14.80

14.51

13.59

Tangible book value per common share(b)

12.76

12.10

11.79

11.49

10.55

Pre-provision net revenue(b)

7,788

7,576

7,744

8,592

8,458

Performance ratios:

Net interest margin (a)

2.64

2.68

2.69

2.70

2.78

Return on average assets

0.74

0.73

0.71

0.73

0.75

Operating return on average assets (b)

0.81

0.80

0.76

0.71

0.77

Return on average total equity

8.33

8.46

8.38

9.20

9.61

Operating return on average total equity (b)

9.18

9.22

9.10

8.90

9.89

Efficiency ratio

72.79

72.85

72.48

69.51

71.17

Operating efficiency ratio (b)

70.27

70.62

70.43

70.35

70.42

Net noninterest expense to average assets

1.41

1.45

1.35

1.45

Operating net noninterest expense to average assets(b)

1.32

1.36

1.38

1.42

ASSET QUALITY

Nonperforming portfolio loans

6,273

3,653

3,674

7,804

5,625

Nonperforming government guaranteed loans

5,942

3,016

2,757

2,035

3,641

Loans 90 days past due and still accruing

—

370

Total nonperforming loans (NPLs)

12,259

6,710

6,431

10,209

9,275

Other real estate owned

227

582

562

448

812

Repossessed assets

—

Total nonperforming assets (NPAs)

12,495

7,305

6,993

10,657

10,087

Classified loans

20,918

22,355

25,965

23,754

20,704

Criticized loans

52,062

44,850

55,065

56,879

50,741

Net loan charge-offs (recoveries)

139

667

664

692

698

Allowance for credit losses to total loans

1.04

1.01

1.00

0.98

0.93

Allowance for credit losses to total NPLs

160.40

280.27

290.11

179.95

187.26

Allowance for credit losses to total NPAs

157.37

257.44

266.80

172.38

172.18

Net charge-offs (recoveries) to average loans, net

0.03

0.14

0.15

NPLs to total loans

0.65

0.36

0.35

0.54

0.50

NPAs to total assets

0.41

0.24

0.23

0.35

0.33

NPAs to total loans and foreclosed assets

0.66

0.39

0.38

0.57

0.54

AVERAGE BALANCES

Total assets

3,038,947

3,010,486

3,036,093

3,027,812

3,058,485

Loans, net

1,862,986

1,850,451

1,853,077

1,860,652

1,854,367

Loans, held for sale

34,533

33,024

24,612

21,251

29,444

Deposits

2,504,101

2,492,479

2,543,259

2,538,500

2,565,026

Total stockholders’ equity

268,769

260,162

255,927

241,392

239,571

(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,

2024

2023

(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

1,916,375

28,560

5.93

1,883,811

26,075

5.49

Investment securities, taxable

719,669

4,852

2.68

761,540

5,288

2.75

Investment securities, tax-exempt 2

95,464

501

2.09

106,136

610

2.28

Deposits in banks and short term investments

88,563

855

3.84

78,295

787

3.99

Total interest-earning assets

2,820,071

34,768

4.90

2,829,782

32,760

4.59

Noninterest-earning assets

218,876

228,703

Total assets

3,038,947

3,058,485

Liabilities and stockholders' equity

Interest-bearing liabilities:

Interest-bearing demand and savings

1,460,011

7,342

2.00

1,382,638

4,455

1.28

Other time

603,391

5,812

3.83

672,442

5,883

3.47

Total interest-bearing deposits

2,063,402

13,154

2.54

2,055,080

10,338

2.00

Federal funds purchased

—

5.92

764

5.93

Federal Home Loan Bank advances

185,000

1,913

4.11

155,652

1,569

4.00

Other borrowings

63,001

996

6.29

66,342

1,041

6.22

Total other interest-bearing liabilities

248,003

2,909

4.67

222,758

2,621

4.67

Total interest-bearing liabilities

2,311,405

16,063

2.76

2,277,838

12,959

2.26

Noninterest-bearing liabilities:

Demand deposits

440,699

509,946

Other liabilities

18,074

31,130

Stockholders' equity

268,769

239,571

Total noninterest-bearing liabilities and stockholders' equity

727,542

780,647

Total liabilities and stockholders' equity

3,038,947

3,058,485

Interest rate spread

2.14

2.33

Net interest income

18,705

19,801

Net interest margin

2.64

2.78

The 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 $59,000 and $54,000 for the quarters ended September 30, 2024 and 2023, respectively, are calculated using the statutory federal tax rate and are included in income and fees on loans. Accretion income of $25,000 and $36,000 for the quarters ended September 30, 2024 and 2023, respectively, are also included in income and fees on loans.

Taxable-equivalent adjustments totaling $105,000 and $128,000 for the quarters ended September 30, 2024 and 2023, 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,

2024

2023

(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

1,904,906

83,365

5.85

1,833,405

72,403

5.28

Investment securities, taxable

726,462

14,511

2.67

779,940

16,167

2.77

Investment securities, tax-exempt 4

100,789

1,653

2.19

106,599

1,837

2.30

Deposits in banks and short term investments

74,255

2,231

4.01

67,828

1,853

3.65

Total interest-earning assets

2,806,412

101,760

4.84

2,787,772

92,260

4.42

Noninterest-earning assets

222,134

224,985

Total assets

3,028,547

3,012,757

Liabilities and stockholders' equity

Interest-bearing liabilities:

Interest-bearing demand and savings

1,454,287

20,534

1.89

1,388,248

10,201

0.98

Other time

597,623

16,817

3.76

611,032

13,692

3.00

Total interest-bearing deposits

2,051,910

37,351

2.43

1,999,280

23,893

1.60

Federal funds purchased

—

5.94

3,703

146

5.29

Federal Home Loan Bank advances

173,540

5,306

4.08

161,099

5,140

4.27

Other borrowings

63,241

2,989

6.31

70,234

3,164

6.02

Total other interest-bearing liabilities

236,786

8,295

4.68

235,036

8,450

4.81

Total interest-bearing liabilities

2,288,696

45,646

2.66

2,234,316

32,343

1.94

Noninterest-bearing liabilities:

Demand deposits

461,336

526,469

Other liabilities

16,869

13,897

Stockholders' equity

261,646

238,075

Total noninterest-bearing liabilities and stockholders' equity

739,851

778,441

Total liabilities and stockholders' equity

3,028,547

3,012,757

Interest rate spread

2.18

2.48

Net interest income

56,114

59,917

Net interest margin

2.67

2.87

The 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 $163,000 and $162,000 for the nine months ended September 30, 2024 and 2023, respectively, are calculated using the statutory federal tax rate and are included in income and fees on loans. Accretion income of $35,000 and $160,000 for the nine months ended September 30, 2024 and 2023, respectively, are also included in income and fees on loans.

Taxable-equivalent adjustments totaling $347,000 and $386,000 for the nine months ended September 30, 2024 and 2023, respectively, are included in tax-exempt interest on investment securities.

Colony Bankcorp, Inc.

Segment Reporting

2024

2023

(dollars in thousands)

Third

Quarter

Second

Quarter

First

Quarter

Fourth

Quarter

Third

Quarter

Banking Division

Net interest income

17,152

17,217

17,552

17,986

18,778

Provision for credit losses

698

455

979

286

Noninterest income

5,494

5,086

5,680

5,992

6,233

Noninterest expenses

17,075

17,135

17,129

16,619

16,653

Income taxes

1,017

1,060

1,166

1,365

1,777

Segment income

3,856

4,012

4,482

5,015

6,295

Total segment assets

2,955,145

2,889,013

2,910,102

2,956,121

2,999,071

Full time employees

375

385

377

378

382

Mortgage Banking Division

Net interest income

Provision for credit losses

—

Noninterest income

1,812

1,456

1,165

1,206

1,725

Noninterest expenses

1,533

1,326

1,218

1,203

2,040

Income taxes

(53

)

Segment income

275

138

(14

)

(210

)

Total segment assets

9,300

19,004

8,011

7,890

9,991

Variable noninterest expense(1)

1,005

807

603

597

1,245

Fixed noninterest expense

528

519

615

606

795

Full time employees

Small Business Specialty Lending Division

Net interest income

1,322

1,142

1,062

865

791

Provision for credit losses

554

545

521

714

Noninterest income

2,776

2,955

2,642

2,107

1,760

Noninterest expenses

2,227

1,869

2,050

1,765

2,188

Income taxes

321

350

244

121

(70

)

Segment income

1,498

1,324

865

565

(281

)

Total segment assets

100,658

99,890

97,396

89,411

84,761

Full time employees

Total Consolidated

Net interest income

18,541

18,409

18,654

18,874

19,621

Provision for credit losses

750

650

1,000

1,500

1,000

Noninterest income

10,082

9,497

9,487

9,305

9,718

Noninterest expenses

20,835

20,330

20,397

19,587

20,881

Income taxes

1,409

1,452

1,411

1,494

1,654

Segment income

5,629

5,474

5,333

5,598

5,804

Total segment assets

3,065,103

3,007,907

3,015,509

3,053,422

3,093,823

Full time employees

452

460

451

453

460

(1) Variable noninterest expense includes commission based salary expenses and volume based loan related fees.

Colony Bankcorp, Inc.

Consolidated Balance Sheets

September 30, 2024

December 31, 2023

(dollars in thousands)

(unaudited)

(audited)

ASSETS

Cash and due from banks

23,248

25,339

Interest-bearing deposits in banks and federal funds sold

121,605

57,983

Cash and cash equivalents

144,853

83,322

Investment securities available for sale, at fair value

370,008

407,382

Investment securities held to maturity, at amortized cost

440,706

449,031

Other investments

17,712

16,868

Loans held for sale

27,760

27,958

Loans, net of unearned income

1,886,037

1,883,470

Allowance for credit losses

(19,663

)

(18,371

)

Loans, net

1,866,374

1,865,099

Premises and equipment

37,983

39,870

Other real estate

227

448

Goodwill

48,923

Other intangible assets

3,249

4,192

Bank owned life insurance

57,556

56,925

Deferred income taxes, net

21,166

25,405

Other assets

28,586

27,999

Total assets

3,065,103

3,053,422

LIABILITIES AND STOCKHOLDERS’ EQUITY

Liabilities:

Deposits:

Noninterest-bearing

439,892

498,992

Interest-bearing

2,085,078

2,045,798

Total deposits

2,524,970

2,544,790

Federal Home Loan Bank advances

185,000

175,000

Other borrowed money

63,016

63,445

Accrued expenses and other liabilities

16,065

15,252

Total liabilities

2,789,051

2,798,487

Stockholders’ equity

Common stock, $1 par value; 50,000,000 shares authorized, 17,554,884 and 17,564,182 issued and outstanding, respectively

17,555

17,564

Paid in capital

168,599

168,614

Retained earnings

134,910

124,400

Accumulated other comprehensive loss, net of tax

(45,012

)

(55,643

)

Total stockholders’ equity

276,052

254,935

Total liabilities and stockholders’ equity

3,065,103

3,053,422

Colony Bankcorp, Inc.

Consolidated Statements of Income (unaudited)

Three months ended September 30,

Nine months ended September 30,

2024

2023

2024

2023

(dollars in thousands, except per share data)

Interest income:

Loans, including fees

28,501

26,022

83,202

72,242

Investment securities

5,248

5,770

15,816

17,619

Deposits in banks and short term investments

855

787

2,232

1,852

Total interest income

34,604

32,579

101,250

91,713

Interest expense:

Deposits

13,154

10,338

37,351

23,893

Federal funds purchased

—

146

Federal Home Loan Bank advances

1,913

1,568

5,306

5,140

Other borrowings

996

1,041

2,989

3,164

Total interest expense

16,063

12,958

45,646

32,343

Net interest income

18,541

19,621

55,604

59,370

Provision for credit losses

750

1,000

2,400

2,100

Net interest income after provision for credit losses

17,791

18,621

53,204

57,270

Noninterest income:

Service charges on deposits

2,401

2,200

7,062

6,140

Mortgage fee income

1,812

1,730

4,503

4,928

Gain on sales of SBA loans

2,227

1,268

6,620

3,429

Loss on sales of securities

(454

)

—

(1,434

)

—

Interchange fees

2,163

2,202

6,269

6,401

BOLI income

383

335

1,314

1,024

Insurance commissions

433

509

1,318

1,421

Other

1,117

1,474

3,414

2,986

Total noninterest income

10,082

9,718

29,066

26,329

Noninterest expense:

Salaries and employee benefits

12,594

11,973

36,889

37,929

Occupancy and equipment

1,523

1,620

4,505

4,740

Information technology expenses

2,150

2,064

6,487

6,406

Professional fees

748

752

2,286

2,348

Advertising and public relations

965

766

2,892

2,432

Communications

210

224

652

710

Other

2,645

3,482

7,851

8,913

Total noninterest expense

20,835

20,881

61,562

63,478

Income before income taxes

7,038

7,458

20,708

20,121

Income taxes

1,409

1,654

4,272

3,972

Net income

5,629

5,804

16,436

16,149

Earnings per common share:

Basic

0.32

0.33

0.94

0.92

Diluted

0.32

0.33

0.94

0.92

Dividends declared per share

0.1125

0.1100

0.3375

0.3300

Weighted average common shares outstanding:

Basic

17,587,902

17,569,493

17,566,452

17,581,817

Diluted

17,587,902

17,569,493

17,566,452

17,581,817

Colony Bankcorp, Inc.

Quarterly Consolidated Statements of Income

2024

2023

Third Quarter

Second Quarter

First Quarter

Fourth Quarter

Third Quarter

(dollars in thousands, except per share data)

(unaudited)

(audited)

(unaudited)

Interest income:

Loans, including fees

28,501

27,604

27,097

27,014

26,022

Investment securities

5,248

5,048

5,520

5,700

5,770

Deposits in banks and short term investments

855

684

693

489

787

Total interest income

34,604

33,336

33,310

33,203

32,579

Interest expense:

Deposits

13,154

12,106

12,091

11,571

10,338

Federal funds purchased

—

Federal Home Loan Bank advances

1,913

1,821

1,572

1,623

1,568

Other borrowings

996

1,000

993

1,134

1,041

Total interest expense

16,063

14,927

14,656

14,329

12,958

Net interest income

18,541

18,409

18,654

18,874

19,621

Provision for credit losses

750

650

1,000

1,500

1,000

Net interest income after provision for credit losses

17,791

17,759

17,654

17,374

18,621

Noninterest income:

Service charges on deposits

2,401

2,288

2,373

2,595

2,200

Mortgage fee income

1,812

1,442

1,249

1,203

1,730

Gain on sales of SBA loans

2,227

2,347

2,046

1,634

1,268

Loss on sales of securities

(454

)

(425

)

(555

)

—

Interchange fees

2,163

2,078

2,028

2,059

2,202

BOLI income

383

398

533

372

335

Insurance commissions

433

420

465

452

509

Other

1,117

949

1,348

990

1,474

Total noninterest income

10,082

9,497

9,487

9,305

9,718

Noninterest expense:

Salaries and employee benefits

12,594

12,277

12,018

11,304

11,973

Occupancy and equipment

1,523

1,475

1,507

1,543

1,620

Information technology expenses

2,150

2,227

2,110

2,147

2,064

Professional fees

748

704

834

749

752

Advertising and public relations

965

967

960

1,054

766

Communications

210

216

226

237

224

Other

2,645

2,464

2,742

2,553

3,482

Total noninterest expense

20,835

20,330

20,397

19,587

20,881

Income before income taxes

7,038

6,926

6,744

7,092

7,458

Income taxes

1,409

1,452

1,411

1,494

1,654

Net income

5,629

5,474

5,333

5,598

5,804

Earnings per common share:

Basic

0.32

0.31

0.30

0.32

0.33

Diluted

0.32

0.31

0.30

0.32

0.33

Dividends declared per share

0.1125

0.1100

Weighted average common shares outstanding:

Basic

17,587,902

17,551,007

17,560,210

17,567,839

17,569,493

Diluted

17,587,902

17,551,007

17,560,210

17,567,839

17,569,493

Colony Bankcorp, Inc.

Quarterly Comparison

2024

2023

(dollars in thousands, except per share data)

Third Quarter

Second Quarter

First Quarter

Fourth Quarter

Third Quarter

Assets

3,065,103

3,007,907

3,015,509

3,053,422

3,093,823

Loans, net

1,866,374

1,846,768

1,840,361

1,865,099

1,847,603

Deposits

2,524,970

2,460,225

2,522,748

2,544,790

2,591,332

Total equity

276,052

264,743

259,914

254,935

238,692

Net income

5,629

5,474

5,333

5,598

5,804

Earnings per basic share

0.32

0.31

0.30

0.32

0.33

Key Performance Ratios:

Return on average assets

0.74

0.73

0.71

0.73

0.75

Operating return on average assets (a)

0.81

0.80

0.76

0.71

0.77

Return on average total equity

8.33

8.46

8.38

9.20

9.61

Operating return on average total equity (a)

9.18

9.22

9.10

8.90

9.89

Total equity to total assets

9.01

8.80

8.62

8.35

7.72

Tangible equity to tangible assets (a)

7.43

7.18

6.99

6.73

6.09

Net interest margin

2.64

2.68

2.69

2.70

2.78

(a) Non-GAAP measure - see “Explanation of Certain Unaudited Non-GAAP Financial Measures” for more information and reconciliation to GAAP.

Colony Bankcorp, Inc.

Quarterly Deposits Composition Comparison

2024

2023

(dollars in thousands)

Third Quarter

Second Quarter

First Quarter

Fourth Quarter

Third Quarter

Noninterest-bearing demand

439,892

437,623

476,413

498,992

494,221

Interest-bearing demand

769,123

788,674

802,596

759,299

740,672

Savings

684,371

670,848

650,188

660,311

681,229

Time, $250,000 and over

198,942

168,856

173,386

167,680

187,218

Other time

432,642

394,224

420,165

458,508

487,992

Total

2,524,970

2,460,225

2,522,748

2,544,790

2,591,332

Colony Bankcorp, Inc.

Quarterly Deposits by Location Comparison

2024

2023

(dollars in thousands)

Third Quarter

Second Quarter

First Quarter

Fourth Quarter

Third Quarter

Coastal Georgia

142,580

144,021

138,103

137,398

133,888

Middle Georgia

269,144

275,758

286,697

265,788

262,352

Atlanta and North Georgia

321,808

336,338

333,856

334,003

345,179

South Georgia

1,165,529

1,110,049

1,132,701

1,134,662

1,132,545

West Georgia

357,450

365,380

378,764

384,750

389,269

Brokered deposits

70,999

39,240

59,019

93,561

148,707

Reciprocal deposits

197,460

189,439

193,608

194,628

179,392

Total

2,524,970

2,460,225

2,522,748

2,544,790

2,591,332

Colony Bankcorp, Inc.

Quarterly Loan Comparison

2024

2023

(dollars in thousands)

Third Quarter

Second Quarter

First Quarter

Fourth Quarter

Third Quarter

Core

1,759,600

1,732,843

1,718,284

1,729,866

1,698,219

Purchased

126,437

132,731

140,734

153,604

166,752

Total

1,886,037

1,865,574

1,859,018

1,883,470

1,864,971

Colony Bankcorp, Inc.

Quarterly Loans by Composition Comparison

2024

2023

(dollars in thousands)

Third Quarter

Second Quarter

First Quarter

Fourth Quarter

Third Quarter

Construction, land & land development

196,390

199,916

234,000

247,146

245,268

Other commercial real estate

1,012,466

985,102

971,205

974,649

969,168

Total commercial real estate

1,208,856

1,185,018

1,205,205

1,221,795

1,214,436

Residential real estate

349,777

360,847

347,277

355,973

339,501

Commercial, financial & agricultural

242,389

242,205

239,837

242,743

252,725

Consumer and other

85,015

77,504

66,699

62,959

58,309

Total

1,886,037

1,865,574

1,859,018

1,883,470

1,864,971

Colony Bankcorp, Inc.

Quarterly Loans by Location Comparison

2024

2023

(dollars in thousands)

Third Quarter

Second Quarter

First Quarter

Fourth Quarter

Third Quarter

Alabama

46,630

44,575

44,806

45,594

45,135

Florida

12,280

2,753

1,579

—

Augusta

59,557

64,465

71,483

65,284

55,508

Coastal Georgia

220,452

228,844

232,557

243,492

239,281

Middle Georgia

120,843

124,268

121,131

118,806

116,776

Atlanta and North Georgia

432,377

427,568

425,753

426,724

431,632

South Georgia

427,887

413,098

409,681

436,728

446,221

West Georgia

184,634

184,365

183,679

187,751

188,208

Small Business Specialty Lending

79,967

75,182

71,196

68,637

65,187

Consumer Portfolio Mortgages

253,481

257,772

261,204

255,771

245,057

Marine/RV Lending

45,785

41,922

35,017

33,191

31,009

Other

2,144

762

932

1,452

957

Total

1,886,037

1,865,574

1,859,018

1,883,470

1,864,971

Colony Bankcorp, Inc.

Classified Loans

2024

2023

(dollars in thousands)

Third Quarter

Second Quarter

First Quarter

Fourth Quarter

Third Quarter

Construction, land & land development

—

572

1,063

1,180

Other commercial real estate

13,338

13,990

13,918

10,219

7,726

Residential real estate

1,554

2,168

104

5,896

183

7,103

187

6,633

184

Commercial, financial & agricultural

6,005

6,075

5,487

5,284

5,102

Consumer and other

TOTAL

20,918

205

22,355

219

25,965

377

23,754

374

20,704

367

Classified loans to total loans

1.11

1.20

1.40

1.26

1.11

Colony Bankcorp, Inc.

Criticized Loans

2024

2023

(dollars in thousands)

Third Quarter

Second Quarter

First Quarter

Fourth Quarter

Third Quarter

Construction, land & land development

4,418

626

1,543

2,192

1,238

Other commercial real estate

32,790

31,544

31,498

27,445

20,356

Residential real estate

5,389

5,431

107

13,050

249

14,275

253

13,212

245

Commercial, financial & agricultural

9,444

7,181

8,609

114

12,686

106

15,701

Consumer and other

365

281

234

TOTAL

52,062

254

44,850

255

55,065

512

56,879

549

50,741

513

Criticized loans to total loans

2.76

2.40

2.96

3.02

2.72

View source version on businesswire.com: https://www.businesswire.com/news/home/20241023571483/en/

Derek Shelnutt EVP & Chief Financial Officer 229-426-6000, extension 6119

Colony Bankcorp (NASDAQ:CBAN)
Historical Stock Chart
From Nov 2024 to Dec 2024

Click Here for more Colony Bankcorp Charts.

Colony Bankcorp (NASDAQ:CBAN)
Historical Stock Chart
From Dec 2023 to Dec 2024

Market Data

News

Trading Tools

Markets

Discover

Hot Features

Follow Feed

Options Flow

Monitor

CBAN Colony Bankcorp Inc

Colony Bankcorp Inc News

Your Recent History

Company

Business

Popular

Get The App

Trending Now

Toplists

Market Data

News

Trading Tools

Markets

Discover

Hot Features

Follow Feed

Options Flow

Monitor

CBAN Colony Bankcorp Inc

Colony Bankcorp Inc News

Your Recent History

Company

Business

Popular

Get The App

BLACK FRIDAY

Save up to 60%* for ASX Level 1 & 2

1 year 40%, 2 years 40% and *3 years 60%