Colony Bankcorp Reports First Quarter 2024 Results
Declares Quarterly Cash Dividend of $0.1125 Per Share
FITZGERALD, Ga., Apr. 24 /BusinessWire/ --
Colony Bankcorp, Inc. (NASDAQ:CBAN) ("Colony" or the "Company") today reported financial results for the first quarter of 2024. Financial highlights are shown below.
Financial Highlights:
Net income decreased to $5.3 million, or $0.30 per diluted share, for the first quarter of 2024, compared to $5.6 million, or $0.32 per diluted share, for the fourth quarter of 2023, but increased from the first quarter of 2023 net income of $5.0 million, or $0.29 per diluted share.
Operating net income increased to $5.8 million, or $0.33 of adjusted earnings per diluted share, for the first quarter of 2024, compared to $5.4 million, or $0.31 of adjusted earnings per diluted share, for the fourth quarter of 2023, and $5.5 million, or $0.31 of adjusted earnings per diluted share, for the first quarter of 2023. (See Reconciliation of Non-GAAP Measures).
Strong liquidity with available sources of funding of approximately $1.3 billion at March 31, 2024. No overnight borrowings utilized as of March 31, 2024.
Estimated uninsured deposits of $785.6 million, or 30.82% of total Bank deposits at March 31, 2024. Adjusted uninsured deposit estimate (excluding deposits collateralized by public funds or internal accounts) of $459.9 million, or 18.04% of total Bank deposits at March 31, 2024.
Provision for credit losses of $1.0 million was recorded in first quarter of 2024 compared to $1.5 million in fourth quarter of 2023, and $900,000 in first quarter of 2023.
Total loans were $1.86 billion at March 31, 2024, a decrease of $24.5 million, or 1.30%, from the prior quarter.
Total deposits were $2.52 billion and $2.54 billion at March 31, 2024 and December 31, 2023, respectively, a decrease of $22.0 million.
Mortgage production was $50.1 million, and mortgage sales totaled $36.6 million in the first quarter of 2024 compared to $45.3 million and $40.1 million, respectively, for the fourth quarter of 2023.
Small Business Specialty Lending ("SBSL") closed $35.6 million in Small Business Administration ("SBA") loans and sold $24.0 million in SBA loans in the first quarter of 2024 compared to $24.0 million and $18.0 million, respectively, for the fourth quarter of 2023.
The Company also announced that on April 24, 2024, the Board of Directors declared a quarterly cash dividend of $0.1125 per share, to be paid on its common stock on May 22, 2024, to shareholders of record as of the close of business on May 8, 2024. The Company had 17,558,611 shares of its common stock outstanding as of April 23, 2024.
"We are pleased with the announcement of our improved operating results for the first quarter, including the continued improvement in our complementary lines of business which have contributed to our increased noninterest income. Although margin declined slightly during the first quarter, the decline was less than anticipated as we begin to see some stability in our increasing funding costs," said Heath Fountain, Chief Executive Officer.
"Total loans declined in the first quarter, largely due to the sale of portfolio mortgages for a gain and credit related payoffs of a limited number of loans, along with the general slowdown in loan production we've seen over the past few quarters. Looking ahead, based on our current pipeline projections we do expect to see modest loan growth for the rest of the year.
"While our total deposits experienced a decline due to wholesale deposit payoffs in the first quarter, we are pleased to report that customer deposits increased by $12.5 million and is a result of our commitment to growing customer relationships. Also during the quarter, we strategically sold underperforming securities for a loss which enables us to reinvest those proceeds into higher performing assets and improve our overall earnings.
"We saw an improvement in nonperforming loans and maintain confidence in overall credit quality. Following a period of historically low charge-offs, the few charge-offs observed in recent quarters have not raised any concerns regarding the quality of our portfolio.
"We are proud of the effort and progress our team has made towards achieving our performance objectives and we expect that we will see continued improvement as we move forward."
Balance Sheet
Total assets were $3.02 billion at March 31, 2024, a decrease of $37.9 million from December 31, 2023.
Total loans, including loans held for sale, were at $1.89 billion at March 31, 2024, a decrease of $21.3 million from the quarter ended December 31, 2023.
Total deposits were $2.52 billion and $2.54 billion at March 31, 2024 and December 31, 2023, respectively, a decrease of $22.0 million. Interest bearing demand deposits increased $43.3 million which was offset by decreases in savings and money market deposits of $10.1 million and time deposits of $32.6 million from December 31, 2023 to March 31, 2024.
Total borrowings at March 31, 2024 totaled $218.0 million, a decrease of $20.5 million or, 8.6%, compared to December 31, 2023, 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."
Preliminary tier one leverage ratio, tier one capital ratio, total risk-based capital ratio and common equity tier one capital ratio were 9.19%, 13.04%, 15.79%, and 11.90%, respectively, at March 31, 2024.
First Quarter and March 31, 2024 Year to Date Results of Operations
Net interest income, on a tax-equivalent basis, totaled $18.8 million for the first quarter ended March 31, 2024 compared to $20.7 million for the same period in 2023. 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 $5.0 million, to $33.5 million for the first quarter of 2024 compared to the respective period in 2023. Expense on interest bearing liabilities increased $6.9 million, to $14.7 million for the first quarter of 2024 compared to the respective period in 2023.
Net interest margin for the first quarter of 2024 was 2.69% compared to 3.08% for the first quarter of 2023. The decrease is the result of rate increases in interest bearing liabilities outpacing the rate increases in interest earning assets.
Noninterest income totaled $9.5 million for the first quarter ended March 31, 2024, an increase of $1.8 million, or 23.87%, compared to the same period in 2023. This increase was primarily related to increases in service charges on deposit accounts, mortgage fee income, gains on sales of SBA loans and income on 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 $20.4 million for the first quarter ended March 31, 2024, compared to $21.2 million for the same period in 2023. This decrease was a result of overall decreases in salaries and employee benefits primarily related to the expense initiative in 2023 which lowered total number of employees period over period as well as a decrease in data processing expense as a result of cost savings upon renewal of the core processing contract in second quarter of 2023.
Asset Quality
Nonperforming assets totaled $7.0 million and $10.7 million at March 31, 2024 and December 31, 2023, respectively, a decrease of $3.7 million.
Other real estate owned and repossessed assets totaled $562,000 at March 31, 2024 and $448,000 at December 31, 2023.
Net loans charged-off were $664,000, or 0.14% of average loans for the first quarter of 2024, compared to $692,000 or 0.15% for the fourth quarter of 2023.
The credit loss reserve was $18.7 million, or 1.00% of total loans, at March 31, 2024, compared to $18.4 million, or 0.98% of total loans at December 31, 2023.
Earnings call information
The Company will host an earnings conference call at 9:00 a.m. ET on Thursday, April 25, 2024, to discuss the recent results and answer appropriate questions. The conference call can be accessed by dialing 800-274-8461 and using the Conference ID: COLONY1Q. A replay of the call will be available until Thursday, May 2, 2024. To listen to the replay, dial 800-757-4761.
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 and slowdowns in economic growth, as well as the financial stress on borrowers as a result of the foregoing; the risk of potential 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; risks related to the Company's recently completed acquisitions, including that the anticipated benefits from the recently completed acquisitions are not realized in the time frame anticipated or at all as a result of changes in general economic and market conditions or other unexpected factors or events; the risks associated with the Company's pursuit of future acquisitions; the impact of generative artificial intelligence; fraud or misconduct by internal or external actors, and system failures, cybersecurity threats or security breaches and the cost of defending against them; 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)
First
Quarter
Fourth
Quarter
Third
Quarter
Second
Quarter
First
Quarter
Operating noninterest income reconciliation
Noninterest income (GAAP)
$
9,487
$
9,305
$
9,721
$
8,952
$
7,656
Gain on sale of bank premises
-
(236
)
-
(125
)
-
Loss on sales of securities
555
-
-
-
-
Operating noninterest income
$
10,042
$
9,069
$
9,721
$
8,827
$
7,656
Operating noninterest expense reconciliation
Noninterest expense (GAAP)
$
20,397
$
19,587
$
20,881
$
21,432
$
21,165
Severance costs
(23
)
-
(220
)
(635
)
(431
)
Acquisition-related expenses
-
-
-
-
(161
)
Operating noninterest expense
$
20,374
$
19,587
$
20,661
$
20,797
$
20,573
Operating net income reconciliation
Net income (GAAP)
$
5,333
$
5,598
$
5,804
$
5,302
$
5,043
Severance costs
23
-
220
635
431
Acquisition-related expenses
-
-
-
-
161
Gain on sale of bank premises
-
(236
)
-
(125
)
-
Loss on sales of securities
555
-
-
-
-
Income tax benefit
(121
)
52
(48
)
(93
)
(107
)
Operating net income
$
5,790
$
5,414
$
5,976
$
5,719
$
5,528
Weighted average diluted shares
17,560,210
17,567,839
17,569,493
17,580,557
17,595,688
Adjusted earnings per diluted share
$
0.33
$
0.31
$
0.34
$
0.33
$
0.31
Operating return on average assets reconciliation
Return on average assets (GAAP)
0.71
%
0.73
%
0.75
%
0.70
%
0.69
%
Severance costs
-
-
0.03
0.08
0.06
Acquisition-related expenses
-
-
-
-
0.02
Gain on sale of bank premises
-
(0.03
)
-
(0.02
)
-
Loss on sales of securities
0.07
-
-
-
-
Tax effect of adjustment items
(0.02
)
0.01
(0.01
)
(0.01
)
(0.01
)
Operating return on average assets
0.76
%
0.71
%
0.77
%
0.75
%
0.76
%
Operating return on average equity reconciliation
Return on average equity (GAAP)
8.38
%
9.20
%
9.61
%
8.88
%
8.73
%
Severance costs
0.04
-
0.36
1.06
0.75
Acquisition-related expenses
-
-
-
-
0.28
Gain on sale of bank premises
-
(0.39
)
-
(0.21
)
-
Loss on sales of securities
0.87
-
-
-
-
Tax effect of adjustment items
(0.19
)
0.09
(0.08
)
(0.16
)
(0.19
)
Operating return on average equity
9.10
%
8.90
%
9.89
%
9.57
%
9.57
%
Tangible book value per common share reconciliation
Book value per common share (GAAP)
$
14.80
$
14.51
$
13.59
$
13.65
$
13.57
Effect of goodwill and other intangibles
(3.01
)
(3.02
)
(3.04
)
(3.07
)
(3.08
)
Tangible book value per common share
$
11.79
$
11.49
$
10.55
$
10.58
$
10.49
Tangible equity to tangible assets reconciliation
Equity to assets (GAAP)
8.62
%
8.35
%
7.72
%
7.72
%
7.97
%
Effect of goodwill and other intangibles
(1.63
)
(1.62
)
(1.63
)
(1.63
)
(1.70
)
Tangible equity to tangible assets
6.99
%
6.73
%
6.09
%
6.09
%
6.27
%
Operating efficiency ratio calculation
Efficiency ratio (GAAP)
72.48
%
69.51
%
71.17
%
76.18
%
74.98
%
Severance costs
(0.08
)
-
(0.75
)
(2.26
)
(1.53
)
Acquisition-related expenses
-
-
-
-
(0.57
)
Gain on sale of bank premises
-
0.84
-
0.44
-
Loss on sales of securities
(1.97
)
-
-
-
-
Operating efficiency ratio
70.43
%
70.35
%
70.42
%
74.36
%
72.88
%
Operating net noninterest expense(1) to average assets calculation
Net noninterest expense to average assets
1.45
%
1.35
%
1.45
%
1.65
%
1.86
%
Severance costs
-
-
(0.03
)
(0.09
)
(0.06
)
Acquisition-related expenses
-
-
-
-
(0.02
)
Gain on sale of bank premises
-
0.03
-
0.02
-
Loss on sales of securities
(0.07
)
-
-
-
-
Operating net noninterest expense to average assets
1.38
%
1.38
%
1.42
%
1.58
%
1.78
%
Pre-provision net revenue
Net interest income before provision for credit losses
$
18,654
$
18,874
$
19,621
$
19,181
$
20,568
Noninterest income
9,487
9,305
9,718
8,952
7,659
Total income
28,141
28,179
29,339
28,133
28,227
Noninterest expense
20,397
19,587
20,881
21,432
21,165
Pre-provision net revenue
$
7,744
$
8,592
$
8,458
$
6,701
$
7,062
(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)
First
Quarter
Fourth
Quarter
Third
Quarter
Second
Quarter
First
Quarter
EARNINGS SUMMARY
Net interest income
$
18,654
$
18,874
$
19,621
$
19,181
$
20,568
Provision for credit losses
1,000
1,500
1,000
200
900
Noninterest income
9,487
9,305
9,718
8,952
7,659
Noninterest expense
20,397
19,587
20,881
21,432
21,165
Income taxes
1,411
1,494
1,654
1,199
1,119
Net income
$
5,333
$
5,598
$
5,804
$
5,302
$
5,043
PERFORMANCE MEASURES
Per common share:
Common shares outstanding
17,558,611
17,564,182
17,567,983
17,541,661
17,593,879
Weighted average basic shares
17,560,210
17,567,839
17,569,493
17,580,557
17,595,688
Weighted average diluted shares
17,560,210
17,567,839
17,569,493
17,580,557
17,595,688
Earnings per basic share
$
0.30
$
0.32
$
0.33
$
0.30
$
0.29
Earnings per diluted share
0.30
0.32
0.33
0.30
0.29
Adjusted earnings per diluted share(b)
0.33
0.31
0.34
0.33
0.31
Cash dividends declared per share
0.1125
0.1100
0.1100
0.1100
0.1100
Common book value per share
14.80
14.51
13.59
13.65
13.57
Tangible book value per common share(b)
11.79
11.49
10.55
10.58
10.49
Pre-provision net revenue(b)
$
7,744
$
8,592
$
8,458
$
6,701
$
7,062
Performance ratios:
Net interest margin (a)
2.69
%
2.70
%
2.78
%
2.77
%
3.08
%
Return on average assets
0.71
0.73
0.75
0.70
0.69
Operating return on average assets (b)
0.76
0.71
0.77
0.75
0.76
Return on average total equity
8.38
9.20
9.61
8.88
8.73
Operating return on average total equity (b)
9.10
8.90
9.89
9.57
9.57
Efficiency ratio
72.48
69.51
71.17
76.18
74.98
Operating efficiency ratio (b)
70.43
70.35
70.42
74.36
72.88
Net noninterest expense to average assets
1.45
1.35
1.45
1.65
1.86
Operating net noninterest expense to average assets(b)
1.38
1.38
1.42
1.58
1.78
ASSET QUALITY
Nonperforming portfolio loans
$
3,674
$
7,804
$
5,625
$
6,716
$
5,636
Nonperforming government guaranteed loans
2,757
2,035
3,641
4,369
1,529
Loans 90 days past due and still accruing
-
370
9
-
-
Total nonperforming loans (NPLs)
6,431
10,209
9,275
11,085
7,165
Other real estate owned
562
448
812
792
651
Total nonperforming assets (NPAs)
6,993
10,657
10,087
11,877
7,816
Classified loans
25,965
23,754
20,704
19,267
18,747
Criticized loans
55,065
56,879
50,741
48,074
43,281
Net loan charge-offs (recoveries)
664
692
698
(37
)
237
Allowance for credit losses to total loans
1.00
%
0.98
%
0.93
%
0.93
%
0.92
%
Allowance for credit losses to total NPLs
290.11
179.95
187.26
153.96
231.67
Allowance for credit losses to total NPAs
266.80
172.38
172.18
143.69
212.37
Net charge-offs (recoveries) to average loans, net
0.14
0.15
0.15
(0.01
)
0.05
NPLs to total loans
0.35
0.54
0.50
0.60
0.40
NPAs to total assets
0.23
0.35
0.33
0.38
0.26
NPAs to total loans and foreclosed assets
0.38
0.57
0.54
0.65
0.43
AVERAGE BALANCES
Total assets
$
3,036,093
$
3,027,812
$
3,058,485
$
3,030,044
$
2,949,986
Loans, net
1,853,077
1,860,652
1,854,367
1,814,172
1,765,845
Loans, held for sale
24,612
21,251
29,444
21,237
14,007
Deposits
2,543,259
2,538,500
2,565,026
2,524,949
2,473,464
Total stockholders' equity
255,927
241,392
239,571
239,579
234,147
(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 March 31,
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
$
1,896,014
$
27,145
5.76
%
$
1,779,852
$
22,199
5.06
%
Investment securities, taxable
737,257
5,042
2.75
%
786,900
5,374
2.77
%
Investment securities, tax-exempt 2
106,819
605
2.28
%
114,346
594
2.11
%
Deposits in banks and short term investments
71,431
693
3.90
%
50,898
357
2.85
%
Total interest-earning assets
2,811,521
33,485
4.79
%
2,731,996
28,524
4.23
%
Noninterest-earning assets
224,572
217,990
Total assets
$
3,036,093
$
2,949,986
Liabilities and stockholders' equity
Interest-bearing liabilities:
Interest-bearing demand and savings
$
1,451,490
$
6,408
1.78
%
$
1,409,834
$
2,324
0.67
%
Other time
612,241
5,683
3.73
%
507,415
2,675
2.14
%
Total interest-bearing deposits
2,063,731
12,091
2.36
%
1,917,249
4,999
1.06
%
Federal funds purchased
13
-
5.72
%
7,012
88
5.09
%
Federal Home Loan Bank advances
156,978
1,572
4.03
%
149,444
1,626
4.41
%
Other borrowings
63,086
993
6.33
%
76,083
1,089
5.80
%
Total other interest-bearing liabilities
220,077
2,565
4.69
%
232,539
2,803
4.89
%
Total interest-bearing liabilities
2,283,808
14,656
2.58
%
2,149,788
7,802
1.47
%
Noninterest-bearing liabilities:
Demand deposits
479,528
$
556,216
Other liabilities
16,830
9,835
Stockholders' equity
255,927
234,147
Total noninterest-bearing liabilities and stockholders' equity
752,285
800,198
Total liabilities and stockholders' equity
$
3,036,093
$
2,949,986
Interest rate spread
2.21
%
2.76
%
Net interest income
$
18,829
$
20,722
Net interest margin
2.69
%
3.08
%
____________________________________
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 $48,000 and $45,000 for the quarters ended March 31, 2024 and 2023, respectively, are calculated using the statutory federal tax rate and are included in income and fees on loans. Accretion expense of $5,000 and income of $71,000 for the quarters ended March 31, 2024 and 2023 are also included in income and fees on loans.
2Taxable-equivalent adjustments totaling $127,000 and $108,000 for the quarters ended March 31, 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.
Segment Reporting
2024
2023
(dollars in thousands)
First
Quarter
Fourth
Quarter
Third
Quarter
Second
Quarter
First
Quarter
Banking Division
Net interest income
$
17,552
$
17,986
$
18,778
$
18,562
$
20,138
Provision for credit losses
455
979
286
60
900
Noninterest income
5,680
5,992
6,233
5,433
4,918
Noninterest expenses
17,129
16,619
16,653
17,650
17,812
Income taxes
1,166
1,365
1,777
1,157
1,155
Segment income
$
4,482
$
5,015
$
6,295
$
5,128
$
5,189
Total segment assets
$
2,910,102
$
2,956,121
$
2,999,071
$
3,013,689
$
2,930,421
Full time employees
377
378
382
383
407
Mortgage Banking Division
Net interest income
$
40
$
23
$
52
$
31
$
3
Provision for credit losses
-
-
-
-
-
Noninterest income
1,165
1,206
1,725
2,015
1,277
Noninterest expenses
1,218
1,203
2,040
1,971
1,712
Income taxes
1
8
(53
)
14
(86
)
Segment income
$
(14
)
$
18
$
(210
)
$
61
$
(346
)
Total segment assets
$
8,011
$
7,890
$
9,991
$
15,984
$
7,895
Variable noninterest expense(1)
$
603
$
597
$
1,245
$
1,149
$
890
Fixed noninterest expense
615
606
795
822
822
Full time employees
43
42
45
51
59
Small Business Specialty Lending Division
Net interest income
$
1,062
$
865
$
791
$
588
$
427
Provision for credit losses
545
521
714
140
-
Noninterest income
2,642
2,107
1,760
1,504
1,464
Noninterest expenses
2,050
1,765
2,188
1,811
1,641
Income taxes
244
121
(70
)
28
50
Segment income
$
865
$
565
$
(281
)
$
113
$
200
Total segment assets
$
97,396
$
89,411
$
84,761
$
71,398
$
58,625
Full time employees
31
33
33
32
30
Total Consolidated
Net interest income
$
18,654
$
18,874
$
19,621
$
19,181
$
20,568
Provision for credit losses
1,000
1,500
1,000
200
900
Noninterest income
9,487
9,305
9,718
8,952
7,659
Noninterest expenses
20,397
19,587
20,881
21,432
21,165
Income taxes
1,411
1,494
1,654
1,199
1,119
Segment income
$
5,333
$
5,598
$
5,804
$
5,302
$
5,043
Total segment assets
$
3,015,509
$
3,053,422
$
3,093,823
$
3,101,071
$
2,996,941
Full time employees
451
453
460
466
496
(1) Variable noninterest expense includes commission based salary expenses and volume based loan related fees.
Colony Bankcorp, Inc.
Consolidated Balance Sheets
March 31, 2024
December 31, 2023
(dollars in thousands)
(unaudited)
(audited)
ASSETS
Cash and due from banks
$
22,914
$
25,339
Interest-bearing deposits in banks and federal funds sold
71,755
57,983
Cash and cash equivalents
94,669
83,322
Investment securities available for sale, at fair value
382,953
407,382
Investment securities held to maturity, at amortized cost
447,157
449,031
Other investments
16,034
16,868
Loans held for sale
31,102
27,958
Loans, net of unearned income
1,859,018
1,883,470
Allowance for credit losses
(18,657
)
(18,371
)
Loans, net
1,840,361
1,865,099
Premises and equipment
39,381
39,870
Other real estate
562
448
Goodwill
48,923
48,923
Other intangible assets
3,855
4,192
Bank owned life insurance
56,765
56,925
Deferred income taxes, net
24,587
25,405
Other assets
29,160
27,999
Total assets
$
3,015,509
$
3,053,422
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
Noninterest-bearing
$
476,413
$
498,992
Interest-bearing
2,046,335
2,045,798
Total deposits
2,522,748
2,544,790
Federal Home Loan Bank advances
155,000
175,000
Other borrowed money
62,969
63,445
Accrued expenses and other liabilities
14,878
15,252
Total liabilities
$
2,755,595
$
2,798,487
Stockholders' equity
Common stock, $1 par value; 50,000,000 shares authorized, 17,558,611 and 17,564,182 issued and outstanding, respectively
$
17,559
$
17,564
Paid in capital
168,951
168,614
Retained earnings
127,758
124,400
Accumulated other comprehensive loss, net of tax
(54,354
)
(55,643
)
Total stockholders' equity
259,914
254,935
Total liabilities and stockholders' equity
$
3,015,509
$
3,053,422
Colony Bankcorp, Inc.
Consolidated Statements of Income (unaudited)
Three months ended March 31,
2024
2023
(dollars in thousands, except per share data)
Interest income:
Loans, including fees
$
27,097
$
22,153
Investment securities
5,520
5,860
Deposits in banks and short term investments
693
357
Total interest income
33,310
28,370
Interest expense:
Deposits
12,091
4,999
Federal funds purchased
-
88
Federal Home Loan Bank advances
1,572
1,626
Other borrowings
993
1,089
Total interest expense
14,656
7,802
Net interest income
18,654
20,568
Provision for credit losses
1,000
900
Net interest income after provision for credit losses
17,654
19,668
Noninterest income:
Service charges on deposits
2,373
1,914
Mortgage fee income
1,249
1,183
Gain on sales of SBA loans
2,046
1,057
Loss on sales of securities
(555
)
-
Interchange fees
2,028
2,068
BOLI income
533
331
Insurance commissions
465
460
Other
1,348
646
Total noninterest income
9,487
7,659
Noninterest expense:
Salaries and employee benefits
12,018
12,609
Occupancy and equipment
1,507
1,622
Information technology expenses
2,110
2,341
Professional fees
834
715
Advertising and public relations
960
993
Communications
226
294
Other
2,742
2,591
Total noninterest expense
20,397
21,165
Income before income taxes
6,744
6,162
Income taxes
1,411
1,119
Net income
$
5,333
$
5,043
Earnings per common share:
Basic
$
0.30
$
0.29
Diluted
0.30
0.29
Dividends declared per share
0.1125
0.1100
Weighted average common shares outstanding:
Basic
17,560,210
17,595,688
Diluted
17,560,210
17,595,688
Colony Bankcorp, Inc.
Quarterly Comparison
2024
2023
(dollars in thousands, except per share data)
First
Quarter
Fourth
Quarter
Third
Quarter
Second
Quarter
First
Quarter
Assets
$
3,015,509
$
3,053,422
$
3,093,823
$
3,101,071
$
2,996,941
Loans, net
1,840,361
1,865,099
1,847,603
1,821,776
1,783,254
Deposits
2,522,748
2,544,790
2,591,332
2,627,211
2,516,129
Total equity
259,914
254,935
238,692
239,455
238,777
Net income
5,333
5,598
5,804
5,302
5,043
Earnings per basic share
$
0.30
$
0.32
$
0.33
$
0.30
$
0.29
Key Performance Ratios:
Return on average assets
0.71
%
0.73
%
0.75
%
0.70
%
0.69
%
Operating return on average assets (a)
0.76
%
0.71
%
0.77
%
0.75
%
0.76
%
Return on average total equity
8.38
%
9.20
%
9.61
%
8.88
%
8.73
%
Operating return on average total equity (a)
9.10
%
8.90
%
9.89
%
9.57
%
9.57
%
Total equity to total assets
8.62
%
8.35
%
7.72
%
7.72
%
7.97
%
Tangible equity to tangible assets (a)
6.99
%
6.73
%
6.09
%
6.09
%
6.27
%
Net interest margin
2.69
%
2.70
%
2.78
%
2.77
%
3.08
%
(a) Non-GAAP measure - see "Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and reconciliation to GAAP.