0000711669FALSE00007116692024-10-232024-10-23

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 23, 2024
COLONY BANKCORP, INC.
(Exact name of registrant as specified in its charter)
Georgia000-1243658-1492391
(State or other jurisdiction of incorporation)(Commission File Number)(IRS Employer Identification No.)
115 South Grant Street, Fitzgerald, Georgia 31750
(Address of principal executive offices) (Zip Code)
(229) 426-6000
(Registrant's telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each ClassTrading Symbol(s)Name of each exchange on which registered
Common stock, par value $1.00 per shareCBANThe NASDAQ Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐




Item 2.02. Results of Operation and Financial Condition

On October 23, 2024, Colony Bankcorp, Inc. issued a press release announcing its consolidated financial results for the third quarter ended September 30, 2024, as well as the announcement of a regular quarterly cash dividend. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.


Item 7.01. Regulation FD Disclosure
The Company is furnishing a copy of its most recent investor presentation, which it intends to use in connection with certain community group presentations. A copy of the presentation materials to be used by the Company is furnished as Exhibit 99.2 to this Current Report and is incorporated herein by reference. The Company will also host an investor earnings call at 9:00 a.m. EST on Thursday, October 24, 2024.

In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibits 99.1 and 99.2 attached hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.



Item 9.01 Financial Statements and Exhibits
(d)Exhibits.
Exhibit NumberDescription
99.1
99.2
104Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline
XBRL document.







SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

COLONY BANKCORP, INC.
Date: October 23, 2024
By:/s/ Derek Shelnutt        
Derek Shelnutt
Executive Vice President and Chief Financial Officer




cbanbankcorplogonewcolors-.jpg
For additional information, contact:
Derek Shelnutt
EVP & Chief Financial Officer
229-426-6000, extension 6119

COLONY BANKCORP REPORTS THIRD QUARTER 2024 RESULTS
DECLARES QUARTERLY CASH DIVIDEND OF $0.1125 PER SHARE

FITZGERALD, GA. (October 23, 2024) – 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.”


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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.

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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
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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.

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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.
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Colony Bankcorp, Inc.
Reconciliation of Non-GAAP Measures

20242023
(dollars in thousands, except per share data)
Third QuarterSecond QuarterFirst QuarterFourth QuarterThird 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 securities454 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 costs265 — 23 — 220 
Gain on sale of bank premises— — — (236)— 
Writedown of bank premises— 197 — — — 
Loss on sales of securities454 425 555 — — 
Income tax benefit(143)(129)(121)52 (48)
Operating net income $6,205 $5,967 $5,790 $5,414 $5,976 
Weighted average diluted shares17,587,902 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 costs0.03 — — — 0.03 
Gain on sale of bank premises— — — (0.03)— 
Writedown of bank premises— 0.03 — — — 
Loss on sales of securities0.06 0.06 0.07 — — 
Tax effect of adjustment items(0.02)(0.02)(0.02)0.01 (0.01)
Operating return on average assets0.81 %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 costs0.39 — 0.04 — 0.36 
Gain on sale of bank premises— — — (0.39)— 
Writedown of bank premises— 0.30 — — — 
Loss on sales of securities0.67 0.66 0.87 — — 
Tax effect of adjustment items(0.21)(0.20)(0.19)0.09 (0.08)
Operating return on average equity9.18 %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 %
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Colony Bankcorp, Inc.
Reconciliation of Non-GAAP Measures

20242023
(dollars in thousands, except per share data)
Third QuarterSecond QuarterFirst QuarterFourth QuarterThird Quarter
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 assets1.41 %1.45 %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 assets1.32 %1.36 %1.38 %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 income10,082 9,497 9,487 9,305 9,718 
Total income28,623 27,906 28,141 28,179 29,339 
Noninterest expense20,835 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.
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Colony Bankcorp, Inc.
Selected Financial Information

20242023
(dollars in thousands, except per share data)Third QuarterSecond QuarterFirst QuarterFourth QuarterThird Quarter
EARNINGS SUMMARY
Net interest income$18,541 $18,409 $18,654 $18,874 $19,621 
Provision for credit losses750 650 1,000 1,500 1,000 
Noninterest income10,082 9,497 9,487 9,305 9,718 
Noninterest expense20,835 20,330 20,397 19,587 20,881 
Income taxes1,409 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 outstanding17,554,884 17,538,611 17,558,611 17,564,182 17,567,983 
Weighted average basic shares17,587,902 17,551,007 17,560,210 17,567,839 17,569,493 
Weighted average diluted shares17,587,902 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 share0.32 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 share0.1125 0.1125 0.1125 0.1100 0.1100 
Common book value per share15.73 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 assets0.74 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 equity8.33 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 assets1.41 1.45 1.45 1.35 1.45 
Operating net noninterest expense to average assets(b)
1.32 1.36 1.38 1.38 1.42 
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Colony Bankcorp, Inc.
Selected Financial Information

20242023
(dollars in thousands, except per share data)Third QuarterSecond QuarterFirst QuarterFourth QuarterThird Quarter
ASSET QUALITY
Nonperforming portfolio loans$6,273 $3,653 $3,674 $7,804 $5,625 
Nonperforming government guaranteed loans5,942 3,016 2,757 2,035 3,641 
Loans 90 days past due and still accruing44 41 — 370 9 
Total nonperforming loans (NPLs)12,259 6,710 6,431 10,209 9,275 
Other real estate owned227 582 562 448 812 
Repossessed assets9 13 — — — 
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 loans52,062 44,850 55,065 56,879 50,741 
Net loan charge-offs (recoveries)139 667 664 692 698 
Allowance for credit losses to total loans1.04 %1.01 %1.00 %0.98 %0.93 %
Allowance for credit losses to total NPLs160.40 280.27 290.11 179.95 187.26 
Allowance for credit losses to total NPAs157.37 257.44 266.80 172.38 172.18 
Net charge-offs (recoveries) to average loans, net0.03 0.14 0.14 0.15 0.15 
NPLs to total loans0.65 0.36 0.35 0.54 0.50 
NPAs to total assets0.41 0.24 0.23 0.35 0.33 
NPAs to total loans and foreclosed assets0.66 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, net1,862,9861,850,4511,853,0771,860,6521,854,367
Loans, held for sale34,53333,02424,61221,25129,444
Deposits2,504,1012,492,4792,543,2592,538,5002,565,026
Total stockholders’ equity268,769260,162255,927241,392239,571
(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.
9


Colony Bankcorp, Inc.
Average Balance Sheet and Net Interest Analysis
Three Months Ended September 30,
20242023
(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, taxable719,669 4,852 2.68 %761,540 5,288 2.75 %
Investment securities, tax-exempt 295,464 501 2.09 %106,136 610 2.28 %
Deposits in banks and short term investments88,563 855 3.84 %78,295 787 3.99 %
Total interest-earning assets2,820,071 34,768 4.90 %2,829,782 32,760 4.59 %
Noninterest-earning assets218,876 228,703 
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 time603,391 5,812 3.83 %672,442 5,883 3.47 %
Total interest-bearing deposits2,063,402 13,154 2.54 %2,055,080 10,338 2.00 %
Federal funds purchased2 — 5.92 %764 11 5.93 %
Federal Home Loan Bank advances185,000 1,913 4.11 %155,652 1,569 4.00 %
Other borrowings63,001 996 6.29 %66,342 1,041 6.22 %
Total other interest-bearing liabilities248,003 2,909 4.67 %222,758 2,621 4.67 %
Total interest-bearing liabilities2,311,405 16,063 2.76 %2,277,838 12,959 2.26 %
Noninterest-bearing liabilities:
Demand deposits440,699 $509,946 
Other liabilities18,074 31,130 
Stockholders' equity268,769 239,571 
Total noninterest-bearing liabilities and stockholders' equity727,542 780,647 
Total liabilities and stockholders' equity$3,038,947 $3,058,485 
Interest rate spread2.14 %2.33 %
Net interest income$18,705 $19,801 
Net interest margin2.64 %2.78 %
3
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 $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.
2Taxable-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.
3
10


Colony Bankcorp, Inc.
Average Balance Sheet and Net Interest Analysis
Nine Months Ended September 30,
20242023
(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, taxable726,462 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 investments74,255 2,231 4.01 %67,828 1,853 3.65 %
Total interest-earning assets2,806,412 101,760 4.84 %2,787,772 92,260 4.42 %
Noninterest-earning assets222,134 224,985 
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 time597,623 16,817 3.76 %611,032 13,692 3.00 %
Total interest-bearing deposits2,051,910 37,351 2.43 %1,999,280 23,893 1.60 %
Federal funds purchased5 — 5.94 %3,703 146 5.29 %
Federal Home Loan Bank advances173,540 5,306 4.08 %161,099 5,140 4.27 %
Other borrowings63,241 2,989 6.31 %70,234 3,164 6.02 %
Total other interest-bearing liabilities236,786 8,295 4.68 %235,036 8,450 4.81 %
Total interest-bearing liabilities2,288,696 45,646 2.66 %2,234,316 32,343 1.94 %
Noninterest-bearing liabilities:
Demand deposits461,336 $526,469 
Other liabilities16,869 13,897 
Stockholders' equity261,646 238,075 
Total noninterest-bearing liabilities and stockholders' equity739,851 778,441 
Total liabilities and stockholders' equity$3,028,547 $3,012,757 
Interest rate spread2.18 %2.48 %
Net interest income$56,114 $59,917 
Net interest margin2.67 %2.87 %


4

34The 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.
4 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.



11

Colony Bankcorp, Inc.
Segment Reporting

20242023
(dollars in thousands)
Third QuarterSecond QuarterFirst QuarterFourth QuarterThird Quarter
Banking Division
Net interest income$17,152 $17,217 $17,552 $17,986 $18,778 
Provision for credit losses698 96 455 979 286 
Noninterest income5,494 5,086 5,680 5,992 6,233 
Noninterest expenses17,075 17,135 17,129 16,619 16,653 
Income taxes1,017 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$67 $50 $40 $23 $52 
Provision for credit losses— — — — — 
Noninterest income1,812 1,456 1,165 1,206 1,725 
Noninterest expenses1,533 1,326 1,218 1,203 2,040 
Income taxes71 42 1 8 (53)
Segment income$275 $138 $(14)$18 $(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 expense528 519 615 606 795 
Full time employees44 42 43 42 45 
Small Business Specialty Lending Division
Net interest income$1,322 $1,142 $1,062 $865 $791 
Provision for credit losses52 554 545 521 714 
Noninterest income2,776 2,955 2,642 2,107 1,760 
Noninterest expenses2,227 1,869 2,050 1,765 2,188 
Income taxes321 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 employees33 33 31 33 33 
Total Consolidated
Net interest income$18,541 $18,409 $18,654 $18,874 $19,621 
Provision for credit losses750 650 1,000 1,500 1,000 
Noninterest income10,082 9,497 9,487 9,305 9,718 
Noninterest expenses20,835 20,330 20,397 19,587 20,881 
Income taxes1,409 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 employees452 460 451 453 460 
(1) Variable noninterest expense includes commission based salary expenses and volume based loan related fees.
12

Colony Bankcorp, Inc.
Consolidated Balance Sheets

September 30, 2024December 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 sold121,605 57,983 
Cash and cash equivalents144,853 83,322 
Investment securities available for sale, at fair value370,008 407,382 
Investment securities held to maturity, at amortized cost440,706 449,031 
Other investments17,712 16,868 
Loans held for sale27,760 27,958 
Loans, net of unearned income1,886,037 1,883,470 
Allowance for credit losses(19,663)(18,371)
Loans, net 1,866,374 1,865,099 
Premises and equipment37,983 39,870 
Other real estate227 448 
Goodwill48,923 48,923 
Other intangible assets3,249 4,192 
Bank owned life insurance57,556 56,925 
Deferred income taxes, net21,166 25,405 
Other assets28,586 27,999 
Total assets$3,065,103 $3,053,422 

LIABILITIES AND STOCKHOLDERS’ EQUITY

Liabilities:

Deposits:
Noninterest-bearing$439,892 $498,992 
Interest-bearing2,085,078 2,045,798 
Total deposits
2,524,970 2,544,790 
Federal Home Loan Bank advances185,000 175,000 
Other borrowed money63,016 63,445 
Accrued expenses and other liabilities16,065 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 capital168,599 168,614 
Retained earnings134,910 124,400 
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 
13

Colony Bankcorp, Inc.
Consolidated Statements of Income (unaudited)

Three months ended September 30,Nine months ended September 30,
2024202320242023
(dollars in thousands, except per share data)
Interest income:


Loans, including fees$28,501 $26,022 $83,202 $72,242 
Investment securities5,248 5,770 15,816 17,619 
Deposits in banks and short term investments855 787 2,232 1,852 
Total interest income34,604 32,579 101,250 91,713 
Interest expense:
Deposits13,154 10,338 37,351 23,893 
Federal funds purchased— 11 — 146 
Federal Home Loan Bank advances1,913 1,568 5,306 5,140 
Other borrowings996 1,041 2,989 3,164 
Total interest expense16,063 12,958 45,646 32,343 
Net interest income
18,541 19,621 55,604 59,370 
Provision for credit losses750 1,000 2,400 2,100 
Net interest income after provision for credit losses17,791 18,621 53,204 57,270 
Noninterest income:
Service charges on deposits2,401 2,200 7,062 6,140 
Mortgage fee income1,812 1,730 4,503 4,928 
Gain on sales of SBA loans2,227 1,268 6,620 3,429 
Loss on sales of securities(454)— (1,434)— 
Interchange fees2,163 2,202 6,269 6,401 
BOLI income383 335 1,314 1,024 
Insurance commissions433 509 1,318 1,421 
Other1,117 1,474 3,414 2,986 
Total noninterest income
10,082 9,718 29,066 26,329 
Noninterest expense:
Salaries and employee benefits12,594 11,973 36,889 37,929 
Occupancy and equipment1,523 1,620 4,505 4,740 
Information technology expenses2,150 2,064 6,487 6,406 
Professional fees748 752 2,286 2,348 
Advertising and public relations965 766 2,892 2,432 
Communications210 224 652 710 
Other2,645 3,482 7,851 8,913 
Total noninterest expense
20,835 20,881 61,562 63,478 
Income before income taxes7,038 7,458 20,708 20,121 
Income taxes1,409 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 
Diluted0.32 0.33 0.94 0.92 
Dividends declared per share0.1125 0.1100 0.3375 0.3300 
Weighted average common shares outstanding:
Basic17,587,902 17,569,493 17,566,452 17,581,817 
Diluted17,587,902 17,569,493 17,566,452 17,581,817 
14

Colony Bankcorp, Inc.
Quarterly Consolidated Statements of Income

20242023
Third QuarterSecond QuarterFirst QuarterFourth QuarterThird Quarter
(dollars in thousands, except per share data)
(unaudited)(unaudited)(unaudited)(audited)(unaudited)
Interest income:


Loans, including fees$28,501 $27,604 $27,097 $27,014 $26,022 
Investment securities5,248 5,048 5,520 5,700 5,770 
Deposits in banks and short term investments855 684 693 489 787 
Total interest income34,604 33,336 33,310 33,203 32,579 
Interest expense:
Deposits13,154 12,106 12,091 11,571 10,338 
Federal funds purchased— — — 1 11 
Federal Home Loan Bank advances1,913 1,821 1,572 1,623 1,568 
Other borrowings996 1,000 993 1,134 1,041 
Total interest expense16,063 14,927 14,656 14,329 12,958 
Net interest income
18,541 18,409 18,654 18,874 19,621 
Provision for credit losses750 650 1,000 1,500 1,000 
Net interest income after provision for credit losses17,791 17,759 17,654 17,374 18,621 
Noninterest income:
Service charges on deposits2,401 2,288 2,373 2,595 2,200 
Mortgage fee income1,812 1,442 1,249 1,203 1,730 
Gain on sales of SBA loans2,227 2,347 2,046 1,634 1,268 
Loss on sales of securities(454)(425)(555)— — 
Interchange fees2,163 2,078 2,028 2,059 2,202 
BOLI income383 398 533 372 335 
Insurance commissions433 420 465 452 509 
Other1,117 949 1,348 990 1,474 
Total noninterest income
10,082 9,497 9,487 9,305 9,718 
Noninterest expense:
Salaries and employee benefits12,594 12,277 12,018 11,304 11,973 
Occupancy and equipment1,523 1,475 1,507 1,543 1,620 
Information technology expenses2,150 2,227 2,110 2,147 2,064 
Professional fees748 704 834 749 752 
Advertising and public relations965 967 960 1,054 766 
Communications210 216 226 237 224 
Other2,645 2,464 2,742 2,553 3,482 
Total noninterest expense
20,835 20,330 20,397 19,587 20,881 
Income before income taxes7,038 6,926 6,744 7,092 7,458 
Income taxes1,409 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 
Diluted0.32 0.31 0.30 0.32 0.33 
Dividends declared per share0.1125 0.1125 0.1125 0.1100 0.1100 
Weighted average common shares outstanding:
Basic17,587,902 17,551,007 17,560,210 17,567,839 17,569,493 
Diluted17,587,902 17,551,007 17,560,210 17,567,839 17,569,493 
15


Colony Bankcorp, Inc.
Quarterly Comparison
20242023
(dollars in thousands, except per share data)
Third QuarterSecond QuarterFirst QuarterFourth QuarterThird Quarter
Assets$3,065,103 $3,007,907 $3,015,509 $3,053,422 $3,093,823 
Loans, net1,866,374 1,846,768 1,840,361 1,865,099 1,847,603 
Deposits2,524,970 2,460,225 2,522,748 2,544,790 2,591,332 
Total equity276,052 264,743 259,914 254,935 238,692 
Net income5,629 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 assets0.74 %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 equity8.33 %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 assets9.01 %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 margin2.64 %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
20242023
(dollars in thousands)Third QuarterSecond QuarterFirst QuarterFourth QuarterThird Quarter
Noninterest-bearing demand$439,892 $437,623 $476,413 $498,992 $494,221 
Interest-bearing demand769,123 788,674 802,596 759,299 740,672 
Savings684,371 670,848 650,188 660,311 681,229 
Time, $250,000 and over198,942 168,856 173,386 167,680 187,218 
Other time432,642 394,224 420,165 458,508 487,992 
Total$2,524,970 $2,460,225 $2,522,748 $2,544,790 $2,591,332 


Colony Bankcorp, Inc.
Quarterly Deposits by Location Comparison
20242023
(dollars in thousands)Third QuarterSecond QuarterFirst QuarterFourth QuarterThird Quarter
Coastal Georgia$142,580 $144,021 $138,103 $137,398 $133,888 
Middle Georgia269,144 275,758 286,697 265,788 262,352 
Atlanta and North Georgia321,808 336,338 333,856 334,003 345,179 
South Georgia1,165,529 1,110,049 1,132,701 1,134,662 1,132,545 
West Georgia357,450 365,380 378,764 384,750 389,269 
Brokered deposits70,999 39,240 59,019 93,561 148,707 
Reciprocal deposits197,460 189,439 193,608 194,628 179,392 
Total$2,524,970 $2,460,225 $2,522,748 $2,544,790 $2,591,332 

16



Colony Bankcorp, Inc.
Quarterly Loan Comparison
20242023
(dollars in thousands)Third QuarterSecond QuarterFirst QuarterFourth QuarterThird Quarter
Core$1,759,600 $1,732,843 $1,718,284 $1,729,866 $1,698,219 
Purchased126,437 132,731 140,734 153,604 166,752 
Total$1,886,037 $1,865,574 $1,859,018 $1,883,470 $1,864,971 



Colony Bankcorp, Inc.
Quarterly Loans by Composition Comparison
20242023
(dollars in thousands)Third QuarterSecond QuarterFirst QuarterFourth QuarterThird Quarter
Construction, land & land development$196,390 $199,916 $234,000 $247,146 $245,268 
Other commercial real estate1,012,466 985,102 971,205 974,649 969,168 
   Total commercial real estate1,208,856 1,185,018 1,205,205 1,221,795 1,214,436 
Residential real estate349,777 360,847 347,277 355,973 339,501 
Commercial, financial & agricultural242,389 242,205 239,837 242,743 252,725 
Consumer and other85,015 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
20242023
(dollars in thousands)Third QuarterSecond QuarterFirst QuarterFourth QuarterThird Quarter
Alabama$46,630 $44,575 $44,806 $45,594 $45,135 
Florida12,280 2,753 1,579 40 — 
Augusta59,557 64,465 71,483 65,284 55,508 
Coastal Georgia220,452 228,844 232,557 243,492 239,281 
Middle Georgia120,843 124,268 121,131 118,806 116,776 
Atlanta and North Georgia432,377 427,568 425,753 426,724 431,632 
South Georgia427,887 413,098 409,681 436,728 446,221 
West Georgia184,634 184,365 183,679 187,751 188,208 
Small Business Specialty Lending79,967 75,182 71,196 68,637 65,187 
Consumer Portfolio Mortgages253,481 257,772 261,204 255,771 245,057 
Marine/RV Lending45,785 41,922 35,017 33,191 31,009 
Other2,144 762 932 1,452 957 
Total$1,886,037 $1,865,574 $1,859,018 $1,883,470 $1,864,971 



17

Colony Bankcorp, Inc.
Classified Loans
20242023
(dollars in thousands)
Third QuarterSecond QuarterFirst QuarterFourth QuarterThird Quarter
$#$#$#$#$#
Construction, land & land development$——$543$57211$1,06314$1,18013
Other commercial real estate13,3383613,9903413,9184610,219397,72641
Residential real estate1,554852,1681045,8961837,1031876,633184
Commercial, financial & agricultural6,005616,075545,487705,284585,10256
Consumer and other21236824926785766373
TOTAL$20,918205$22,355219$25,965377$23,754374$20,704367
Classified loans to total loans1.11 %1.20 %1.40 %1.26 %1.11 %
Colony Bankcorp, Inc.
Criticized Loans
20242023
(dollars in thousands)
Third QuarterSecond QuarterFirst QuarterFourth QuarterThird Quarter
$#$#$#$#$#
Construction, land & land development$4,4189$6266$1,54318$2,19221$1,23817
Other commercial real estate32,7906431,5445931,4984627,4457720,35670
Residential real estate5,389905,43110713,05024914,27525313,212245
Commercial, financial & agricultural9,444687,181598,60911412,68610615,70189
Consumer and other21236824365852819223492
TOTAL$52,062254$44,850255$55,065512$56,879549$50,741513
Criticized loans to total loans2.76 %2.40 %2.96 %3.02 %2.72 %
18
INVESTOR PRESENTATION THIRD QUARTER 2024

 
2 CAUTIONARY STATEMENTS This presentation contains "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 Colony Bankcorp, Inc's (the "Company") future filings with the Securities and Exchange Commission (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 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.

 
3 (1) Community bank defined as having less than $10.0 billion in total assets and providing a full suite of consumer and commercial products. Source: FDIC (Federal Deposit Insurance Corporation) COMPANY PROFILE • Georgia’s largest community bank, headquartered outside of Atlanta(1) • $3.1 billion in assets as of September 30, 2024 • 34 locations in Georgia, 1 in Alabama and 1 in Florida • Diversification of revenue streams • Track record of solid organic growth • Increase in deposit franchise

 

 

 
6 Name Position Years In Banking Years With Colony Edward "Lee" Bagwell EVP, Chief Risk Officer and General Counsel 21 21 Leonard H. "Lenny" Bateman EVP, Chief Credit Officer 28 5 R. Dallis "D" Copeland, Jr. President 32 3 Kimberly Dockery EVP, Chief of Staff 18 6 T. Heath Fountain Chief Executive Officer 24 6 Derek Shelnutt EVP, Chief Financial Officer 10 3 EXECUTIVE LEADERSHIP TEAM

 
7 OBJECTIVES AND FOCUS • Achieve performance objectives in complementary lines of business • Maintain noninterest expense discipline to align with growth expectations • Achieve return on assets target of 1.00% • Focus on growing core deposits and customer relationships • Growing wallet share and revenue per customer using data advancements Short-Term Objectives Long-Term Objectives • 5 complementary lines of business > $1 million in net income • Improve efficiency through economies of scale • Return on assets in top quartile of peers • Continue to benefit from industry consolidation • Grow our customer base by 8 - 12% per year

 
8 COMPLEMENTARY LINES OF BUSINESS 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 (Dollars in thousands) Pre-tax Profit/ Loss Pre-tax Profit/ Loss Pre-tax Profit/ Loss Pre-tax Profit/ Loss Pre-tax Profit/ Loss Mortgage $ (263) $ 26 $ (13) $ 180 $ 346 SBSL (351) 686 1,109 1,674 1,819 Marine/RV Lending 100 16 (71) (58) 22 Merchant Services (35) (28) (37) 7 — Wealth Advisors 43 20 36 36 41 Insurance 123 56 56 4 33 TOTAL $ (383) $ 776 $ 1,080 $ 1,843 $ 2,261

 
9 SMALL BUSINESS SPECIALTY LENDING GROUP (Dollars in millions) Production and Sales Volume $34.5 $24.0 $35.6 $25.8 $30.1 $14.6 $18.0 $24.0 $27.0 $27.2 Production Sales 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 • SBSL hit its highest mark in production in the first quarter of 2024 • Consistent increase quarter over quarter in sales Loan Portfolio Breakdown - $98.4 million Construction 3% Commercial RE 55.1% Residential RE 10% Commercial, financial & agriculture 32.1%

 
10 MORTGAGE DIVISION (Dollars in millions) • Stable mortgage production relative to the continued market rate increases • Remain focused on secondary market products and gain on sale of mortgage loans • Continue to adjust staffing levels, delivery models and product set to maintain profitability $78.4 $45.3 $50.1 $65.1 $66.6 $53.3 $40.1 $36.6 $45.2 $57.8 Production Sales 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 Production and Sales Volume

 
11 INNOVATION AND DATA STRATEGY • Successful digital banking implementation offering customers an elevated, seamless and convenient banking experience • Research and develop all potential technology-based opportunities • Increase customer wallet share through data gathering and analytics • Full implementation of Salesforce to influence a more complete customer relationship through targeted marketing • Implemented nCino to allow an upgrade of the customer loan experience and reduce operational friction, leading to increased production capacity and efficiency • Renewed core contract resulting in cost savings and enhanced flexibility for applying API-based technology and Fintech partnerships • Implement data warehouse to allow improved data usage across all lines of business

 
12 The current indicated annual rate is $0.45 per share, equating to a yield of 3.0%.(2) SHAREHOLDER FOCUSED DIVIDEND POLICY (1) The Board of Directors declared a dividend 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. (2) Yield is based on closing stock price on October 21, 2024 of $15.19. Quarterly Dividend Payment $0.10 $0.1025 $0.1075 $0.11 $0.1125 2020 2021 2022 2023 2024(¹)

 
13 CAPITAL RATIOS 8.9% 9.2% 9.2% 9.4% 9.5% 12.5% 12.7% 13.0% 13.4% 13.7% 15.1% 15.4% 15.8% 16.2% 16.5% 11.4% 11.6% 11.9% 12.3% 12.5% Tier One Leverage Ratio Tier One Ratio Total Risk-based Capital Ratio Common Equity Tier One Capital Ratio 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024

 
14 STRENGTH IN OUR LIQUIDITY POSITION Significant liquidity sources (dollars in millions) FRB Reserves $ 117.1 Other Cash and Due from Banks 26.3 Unencumbered Securities 435.1 FHLB Borrowing Capacity 564.3 Fed Fund Lines 64.5 FRB Discount Window 118.8 Total Liquidity Sources $ 1,326.1 $24.2 $24.2 $24.2 $24.2 $24.2 $39.2 $39.2 $38.7 $38.8 $38.8 $185.0 $175.0 $155.0 $205.0 $185.0 Trust Preferred Securities Subordinated Debentures FRB Discount Window FHLB Borrowings 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 Debt Funding* (dollars in millions) *Reported as of last day of each period As of September 30, 2024

 
15 23% 30% 35% 30% 31% Service Charges & Fees Mortgage Loans & Related Fees SBA & Related Fees Insurance Division Merchant Services Wealth Management Interchange Income Other Total Non Int. Income/Total Income 2019 2020 2021 2022 2023 0% 20% 40% 60% 80% 100% ANNUAL NONINTEREST INCOME MIX *Wealth Management services commenced in 3rd quarter 2022 and is less than 1%

 
16 33% 33% 34% 34% 35% Service Charges & Fees Mortgage Loans & Related Fees SBA & Related Fees Insurance Division Merchant Services Wealth Management Interchange Income Other Total Non Int. Income/Total Income 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 0% 25% 50% 75% 100% QUARTERLY NONINTEREST INCOME MIX

 
17 1.00% 0.51% 0.19% 0.32% 1.76% Noninterest-bearing Interest-bearing Savings/money market Time Cost of interest-bearing deposits 2019 2020 2021 2022 2023 ANNUAL DEPOSIT MIX AND PRICING

 
18 2.00% 2.25% 2.36% 2.40% 2.54% Noninterest-bearing Interest-bearing Savings/money market Time Cost of interest-bearing deposits 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 QUARTERLY DEPOSIT MIX AND PRICING

 
19 AVERAGE DEPOSIT BALANCE PER ACCOUNT $14.1 $14.8 $14.0 $12.8 $13.0 $17.4 $18.8 $19.6 $19.6 $19.3 $32.9 $33.7 $35.0 $36.5 $37.5 $47.7 $46.6 $47.9 $48.4 $51.6 Noninterest-bearing Interest-bearing Savings/money market Time 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 DEPOSIT BALANCE DATA • Commercial/business is 13.4% of accounts and represents 43.3% of total deposits balance • Consumer is 86.6% of accounts and represents 56.7% of total deposits balance (excludes brokered and reciprocal deposits) as of September 30, 2024 (Dollars in thousands)

 
20 DIVERSITY OF BUSINESS DEPOSIT BASE As of September 30, 2024 Public Administration 20.7% Construction 13.6% Educational Services 5.8% Real Estate and Rental and Leasing 13.3% Other Services(except Public Administration) 6.3% Health Care and Social Assistance 2.8% Agriculture, Forestry, Fishing and Hunting, 2.3% Finance and Insurance, 16.5% Management of Companies and Enterprises, 0.3% Retail Trade, 3.2% Manufacturing, 3.9% Professional, Scientific, and Technical Services 3.9% Accommodation and Food Services 1.4% Wholesale Trade, 2.1% Transportation and Warehousing 1.5% All other, 2.4% As determined by customer provided NAICS Codes

 
21 Uninsured Deposits Estimate Adjusted Uninsured Deposits Estimate * Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% UNINSURED DEPOSITS *Adjusted uninsured deposit estimate excludes deposits collateralized by public funds or internal accounts. All deposits are held at Colony Bank and include the Company's own funds.

 
22 LOAN PORTFOLIO BREAKDOWN As of September 30, 2024 $1,886.0 million Real Estate 82.7% Consumer and Other 4.5% Commercial 11.5% Agriculture 1.3% $1,558.6 million Multifamily real estate 4.8% Residential real estate 22.5% Construction 12.6% Farmland 4.5% Nonowner occupied real estate 33.9% Owner occupied real estate 21.7%

 
23 LOAN PORTFOLIO (Dollars in millions) Organic Loan Growth $1,865 $1,883 $1,859 $1,866 $1,886 Organic Purchased Loans 3Q2023 4Q2023 1Q2024 2Q2024 3Q2024 Residential Construction Loan Originations by Quarter $20.9 $4.1 $6.2 $4.7 $8.5 $47.5 $33.3 $43.2 $40.7 $47.3 Consumer Commercial 3Q2023 4Q2023 1Q2024 2Q2024 3Q2024 Weighted Average Loan to Values 70.6% 69.8% 72.4% 72.2% 72.9% 45.4% 45.0% 45.5% 47.7% 46.2% Residential Construction Non Owner Occupied Commercial Real Estate 3Q2023 4Q2023 1Q2024 2Q2024 3Q2024 $68.4 $37.4 $49.4 $45.4 $55.8 $9.9 $4.7 $18.6 $14.5 $28.5 $2.1 $2.6 $1.6 $1.1 $6.1 Permanent NOO CRE Commercial, Construction and Development Residential Construction 3Q2023 4Q2023 1Q2024 2Q2024 3Q2024 Commercial Real Estate Production

 
24 COMMERCIAL REAL ESTATE BY TYPE Retail 29% Multifamily 12% Office 11% Industrial & Warehouse 11% Hotel/Motel 9% Convenience Store 2% Daycare, 4% Civic/Event Center 4% Mini-warehouse, 8% Government Guaranteed:SBSL, 3% Specialty and Other, 7% Type Outstanding Balance Average Deal Size Retail $ 176,998 $ 1,351 Multifamily 74,880 1,144 Office 64,487 686 Industrial & Warehouse 67,699 1,058 Hotel/Motel 52,466 2,096 Convenience Store 10,260 645 Daycare 22,683 1,260 Civic/Event Center 26,663 2,222 Mini-warehouse 47,866 1,640 Government Guaranteed:SBSL 17,931 1,793 Specialty and Other 48,233 3,533 (Dollars in thousands) As of September 30, 2024

 
25 OFFICE PORTFOLIO BREAKDOWN • Total loans secured by office buildings - $168.2 million • Owner-occupied (OO) - 53.5% • Non owner-occupied (NOO) - 46.5% • Non-Recourse loans - $0 • Past dues 0.0% of total portfolio and 0.0% of office portfolio Offices by Number of Floors One Story Offices $98.1 Two Story Offices $52.3 Three Story+ Offices $17.8 —% 47.0% 50.9% 49.0% NOO Non-Recourse NOO Full Recourse OO Full Recourse Total Office September 30, 2024(dollars in millions) Weighted Average Loan to Value of Offices

 
26 INVESTMENT SECURITIES Description Book Value Percentage U.S. Agency MBS/CMO $ 326,004 37 % Municipal 258,148 30 % Private Label MBS 92,170 11 % U.S. Treasuries 98,131 11 % Corporates 53,330 6 % SBA and Asset-Backed Securities 23,022 3 % U.S. Government Agencies 17,368 2 % (Dollars in thousands) Portfolio Composition September 30, 2024 Municipal Securities September 30, 2024 With a rating of at least: Number of Securities Book Value Market Value (HTM and AFS) Unrealized Loss AAA/Aaa 45 $ 65,965 $ 55,961 $ (10,004) AA+/Aa1 50 65,037 57,608 (7,429) AA/Aa2 49 95,039 82,810 (12,229) AA-/Aa3 18 31,431 27,568 (3,863) A+/A1 1 669 604 (65) Unrated 1 6 5 (1) TOTAL 164 $ 258,147 $ 224,556 $ (33,591)

 
27 INVESTMENT SECURITIES (Dollars in thousands) Rating: Number of Securities Book Value Market Value Unrealized Loss AAA 23 $ 74,034 $ 66,436 $ (7,598) Aa3 1 3,082 2,894 (188) NR 9 15,054 14,892 (162) TOTAL 33 $ 92,170 $ 84,222 $ (7,948) Private Label MBS September 30, 2024 Type Book Value Market Value Unrealized Loss Bank Sub-Debt/TPS $ 38,177 $ 33,961 $ (4,216) Other Corporates 15,153 13,740 (1,413) Total $ 53,330 $ 47,701 $ (5,629) Corporate Securities September 30, 2024

 
28 INVESTMENT SECURITIES As of: Average Life Effective Duration Book Yield 9/30/2023 7.67 5.43 2.61% 12/31/2023 7.41 5.23 2.57% 3/31/2024 7.37 5.20 2.52% 6/30/2024 6.96 4.89 2.50% 9/30/2024 6.62 4.86 2.37% Other Portfolio Metrics Unrealized Losses on Securities (in millions) AFS/HTM Available for Sale HTM 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 —% 25% 50% 75% 100% $64.3 $48.0 $48.3 $48.3 $37.2 $66.0 $43.8 $48.5 $49.6 $34.7 AFS HTM 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 Current base case assumptions and modeling suggest principal and interest cash flow from the investment portfolio estimated to be between $26 million and $30 million per quarter for the next 4 quarters

 
29 Q3 2024 INVESTMENT SECURITIES SALES •Sold securities with a fair value of $7.9 million •Transaction resulted in a loss on sale of $454 thousand •Combined book yield of 2.61% on sold securities •Conservative earnback estimates are approximately 2 years or less •Purpose of transaction was to restructure underperforming assets and reinvest at higher yields

 
30 INVESTMENT CONSIDERATIONS •Premier Southeast community bank located in growing markets •Core deposit funded with minimal reliance on wholesale funding •Diversified sources of revenue • Improving earnings outlook as new business lines and markets mature •Upside to tangible book value as unrealized losses improve •Deep leadership bench with a proven track record •Ability to manage expenses in an uncertain economy • Investing in technology and leveraging data for revenue growth

 
NASDAQ: CBAN

 
v3.24.3
Cover
Oct. 23, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Oct. 23, 2024
Entity Registrant Name COLONY BANKCORP, INC
Entity Incorporation, State or Country Code GA
Entity File Number 000-12436
Entity Tax Identification Number 58-1492391
Entity Address, Address Line One 115 South Grant Street
Entity Address, City or Town Fitzgerald
Entity Address, State or Province GA
Entity Address, Postal Zip Code 31750
City Area Code 229
Local Phone Number 426-6000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common stock, par value $1.00 per share
Trading Symbol CBAN
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Entity Central Index Key 0000711669
Amendment Flag false
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