Colony Bankcorp Reports First Quarter 2022 Results and New Cost Initiative
Colony Bankcorp Reports First Quarter 2022 Results and New Cost Initiative

FITZGERALD, Ga.–(BUSINESS WIRE)–Colony Bankcorp, Inc. (Nasdaq: CBAN) (“Colony” or the “Company”) today reported financial results for the first quarter of 2022. Financial highlights are shown below.

Financial Highlights:

  • Net income increased to $5.3 million, or $0.34 per diluted share, for the first quarter of 2022, compared to net income for the fourth quarter of 2021 of $4.2 million, or $0.30 per diluted share, and $4.9 million, or $0.52 per diluted share, for the first quarter of 2021.
  • Operating net income of $5.8 million, or $0.37 per diluted share, for the first quarter of 2022 as compared to $5.5 million, or $0.40 per diluted share, for the fourth quarter of 2021, and $5.0 million, or $0.53 per diluted share, for the first quarter of 2021 (see Reconciliation of Non-GAAP Measures).
  • $50,000 in provision for loan losses was recorded in first quarter of 2022.
  • Total loans, excluding loans held for sale and loans that originated under the Paycheck Protection Program (the “PPP”), totaled $1.4 billion at March 31, 2022, an increase of $24.2 million, or 1.8% from the prior quarter.
  • The Company announced a cost efficiency initiative that is expected to save $3.0 million per year starting in late third quarter 2022.
  • Mortgage production was $97.2 million, with $23.9 million in refinances, and $70.0 million in purchases in the first quarter of 2022.
  • Small Business Specialty Lending (“SBSL”) closed $5.8 million in Small Business Administration (“SBA”) loans and sold $13.5 million in SBA loans in the first quarter of 2022.
  • In February of 2022, the Company issued and sold approximately 3.85 million shares of its common stock in an underwritten public offering, with aggregate proceeds totaling approximately $63.5 million and net proceeds totaling approximately $59.3 million.

The Company also announced that on April 21, 2022, the Board of Directors declared a quarterly cash dividend of $0.1075 per share, to be paid on its common stock on May 20, 2022, to shareholders of record as of the close of business on May 6, 2022. The Company had 17,586,333 shares of its common stock outstanding as of April 20, 2022.

Commenting on the announcement, Heath Fountain, President and Chief Executive Officer, said, “We are happy to kick off 2022 with a successful first quarter, and we are also excited to partner with the new investors and existing shareholders that participated in our capital raise. The resulting increase in common equity continues to strengthen our ability to take advantage of the myriad of opportunities available to Colony.

“I am proud of the way our team handled the truly unprecedented changes in interest rates during the quarter. For Colony, the impacts of the volatility were primarily experienced in unrealized losses in securities driving a lower tangible book value per share and in lower mortgage revenues. Even during this volatility, our lending team was able to grow loan balances (excluding PPP forgiveness) at an over 7% annualized rate during the quarter. We remain comfortable with our expectations of 8-12% loan growth for 2022.

“Today, we are also announcing a new efficiency initiative. Our plan is to reduce our banking division workforce by 24 team members, or 6% of total workforce, which includes closing two branches (Soperton and Luthersville) subject to customary regulatory approvals. This effort will save approximately $3.0 million per year when completed (which is currently expected to be late in the third quarter of 2022), and we are projecting $2.0 million of expenses related to this initiative to be recognized in second quarter of 2022. We are targeting a bank level efficiency ratio of 60% over the next three years, and this will push us further down that road.

“We still have significant opportunities to grow earnings at Colony through merger activity, market dislocation due to other acquisitions, ancillary business line acquisition and additional production hires. We continue to optimize the existing platform to take advantage of these opportunities, and expect to continue our growth as Georgia’s pre-eminent community bank.

“We recently announced that our CFO, Tracie Youngblood is leaving the Company. I would like to personally thank Ms. Youngblood for her contributions to our success during her tenure. We could not have made the progress we have without her efforts. Further, I look forward to the contributions our new CFO, Andy Borrmann will make in his new role. During his brief tenure with us, he has demonstrated an ability to add significant value to the execution of our strategy. His significant experience and results focused mindset will benefit our team and our shareholders.”

Balance Sheet

  • Total assets were $2.7 billion at March 31, 2022, a slight decrease from December 31, 2021.
  • Total loans, including loans held for sale, were at $1.38 billion at March 31, 2022, a slight increase of $2.1 million for the quarter from quarter ended December 31, 2021.
  • Total deposits were $2.4 billion at March 31, 2022 and December 31, 2021.
  • Total borrowings at March 31, 2022 totaled $75.9 million, a decrease of $12.5 million or, 14.1%, compared to December 31, 2021.

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 9.47%, 14.65%, 15.40%, and 13.29%, respectively, at March 31, 2022.

First Quarter Results of Operations

  • Net interest income, on a tax-equivalent basis, for the first quarter of 2022 totaled $19.3 million, compared to $14.4 million for the first quarter 2021. The increase during the quarter is primarily attributable to interest income related to loans acquired in the acquisition of SouthCrest Financial Group, Inc. (“SouthCrest”) in August of 2021.
  • Net interest margin decreased 37 basis points from first quarter 2021, but only decreased three basis points from fourth quarter 2021.
  • Noninterest income totaled $9.2 million for the first quarter ended March 31, 2022, an increase of $576,000, or 6.7%, compared to the same period in 2021. The increase was primarily attributable to SBSL loan sales, SouthCrest and insurance company acquisitions, growth in interchange fee income and service charges on deposits offset by decrease in mortgage fee income.
  • Noninterest expense totaled $21.8 million for the first quarter ended March 31, 2022, compared to $15.8 million for the same period in 2021. The increase in noninterest expense primarily resulted from a $3.3 million increase in salaries and benefits expense, $1.1 million in information technology expenses and professional fees, as well as $448,000 increase in acquisition related expenses primarily due to the amortization of intangibles related to prior acquisitions.

Asset Quality

  • Nonperforming assets totaled $6.5 million and $5.8 million at March 31, 2022 and December 31, 2021, respectively, an increase of $686,000.
  • OREO and repossessed assets totaled $294,000 at March 31, 2022, a decrease of $36,000, or 11% compared to the previous quarter.
  • Net loans charged-off were $41,000, or 0.01% of average loans for the first quarter of 2022, compared to net recoveries of $17,000 or (0.01)% for the fourth quarter of 2021.
  • The loan loss reserve was $12.9 million, or 0.95% of total loans, at March 31, 2022, compared to $12.9 million, or 0.96% of total loans, at December 31 2021.

As noted above and in the table on page 7, overall asset quality remains strong.

Earnings call information

The Company will host a teleconference at 9:00 a.m. EDT on Friday, April 22, 2022, to discuss the recent results and answer appropriate questions. The conference call can be accessed by dialing 1-844-200-6205 (or 1-929-526-1599 for international participants). The conference call access code is 583813. A replay of the call will be available until Friday, April 29, 2022. To listen to the replay, dial 1-866-813-9403 and enter the access code 904958.

About Colony Bankcorp

Colony Bankcorp, Inc. is the bank holding company for Colony Bank. Founded in 1975 and headquartered in Fitzgerald, Georgia, Colony operates 41 locations throughout Georgia. At Colony Bank, we offer a wide range of banking services including personal banking, business banking, mortgage solutions, government guaranteed lending solutions, and more. We have expanded our services to also include consumer insurance products, such as automotive, homeowners, and other insurance needs for our community. 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; (v) statements regarding the effects of the COVID-19 pandemic and related variants on the Company’s business and financial results and conditions; and (vi) statements of assumptions underlying such statements. Words such as “believes,” “anticipates,” “expects,” “intends,” “targeted” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements.

Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties. Factors that might cause such differences include, but are not limited to: the continued impact of the COVID-19 pandemic and related variants on the Company’s assets, business, cash flows, financial condition, liquidity, prospects and results of operations; the Company’s ability to implement its various strategic and growth initiatives; competitive pressures among financial institutions increasing significantly; economic conditions, either nationally or locally, in areas in which the Company conducts operations being less favorable than expected; interest rate risk; 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 related to the COVID-19 pandemic and related variants; higher inflation and its impacts; the effects of war or other conflicts including the impacts related to or resulting from Russia’s military action in Ukraine; 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; 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, 2021, 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 net income, adjusted earnings per diluted share, tangible book value per common share, tangible equity to tangible assets, and operating efficiency ratio 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 net income, diluted earnings per share, book value per common share, total equity to total assets, and efficiency ratio, respectively. Operating net income and operating efficiency ratio both exclude acquisition-related expenses. Acquisition-related expenses include fees associated with current period acquisitions and ongoing amortization of intangibles related to prior acquisitions. 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.

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 net income, adjusted earnings per diluted share, tangible book value per common share, tangible equity to tangible assets, and operating efficiency ratio and the reconciliation of these measures to net income, diluted earnings per share, book value per common share, total equity to total assets, and efficiency ratio, are set forth in the table below.

 

Colony Bankcorp, Inc.

Reconciliation of Non-GAAP Measures

 

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

2021

(dollars in thousands, except per share data)

 

First

Quarter

 

Fourth

Quarter

 

Third

Quarter

 

Second

Quarter

 

First

Quarter

Operating net income reconciliation

 

 

 

 

 

 

 

 

 

 

Net income (GAAP)

 

$

5,324

 

 

$

4,160

 

 

$

5,583

 

 

$

3,997

 

 

$

4,919

 

Acquisition-related expenses

 

 

624

 

 

 

1,592

 

 

 

1,994

 

 

 

865

 

 

 

176

 

Writedown of bank premises

 

 

 

 

 

90

 

 

 

 

 

 

 

 

 

 

Income tax expense (benefit)

 

 

(119

)

 

 

(353

)

 

 

(518

)

 

 

(225

)

 

 

(46

)

Operating net income

 

$

5,830

 

 

$

5,489

 

 

$

7,059

 

 

$

4,637

 

 

$

5,049

 

Weighted average diluted shares

 

 

15,877,695

 

 

 

13,673,998

 

 

 

12,344,926

 

 

 

9,498,783

 

 

 

9,498,783

 

Adjusted earnings per diluted share

 

$

0.37

 

 

$

0.40

 

 

$

0.57

 

 

$

0.49

 

 

$

0.53

 

 

 

 

 

 

 

 

 

 

 

 

Tangible book value per common share reconciliation

 

 

 

 

 

 

 

 

 

 

Book value per common share (GAAP)

 

$

14.23

 

 

$

15.92

 

 

$

15.88

 

 

$

15.46

 

 

$

15.11

 

Effect of goodwill and other intangibles

 

 

(3.40

)

 

 

(4.51

)

 

 

(4.46

)

 

 

(1.89

)

 

 

(1.97

)

Tangible book value per common share

 

$

10.83

 

 

$

11.41

 

 

$

11.42

 

 

$

13.57

 

 

$

13.14

 

 

 

 

 

 

 

 

 

 

 

 

Tangible equity to tangible assets reconciliation

 

 

 

 

 

 

 

 

 

 

Equity to assets (GAAP)

 

 

9.32

%

 

 

8.09

%

 

 

8.64

%

 

 

8.37

%

 

 

7.98

%

Effect of goodwill and other intangibles

 

 

(2.07

) %

 

 

(2.15

) %

 

 

(2.27

) %

 

 

(0.99

) %

 

 

(0.97

) %

Tangible equity to tangible assets

 

 

7.25

%

 

 

5.93

%

 

 

6.37

%

 

 

7.38

%

 

 

7.01

%

 

 

 

 

 

 

 

 

 

 

 

Operating efficiency ratio calculation

 

 

 

 

 

 

 

 

 

 

Efficiency ratio (GAAP)

 

 

76.94

%

 

 

82.15

%

 

 

77.68

%

 

 

76.53

%

 

 

69.04

%

Acquisition-related expenses

 

 

(2.20

)

 

 

(5.33

)

 

 

(7.30

)

 

 

(3.79

)

 

 

(0.77

)

Writedown of bank premises

 

 

 

 

 

(0.30

)

 

 

 

 

 

 

 

 

 

Operating efficiency ratio

 

 

74.74

%

 

 

76.52

%

 

 

70.38

%

 

 

72.74

%

 

 

68.27

%

 
Colony Bankcorp, Inc.

Selected Financial Information

 

 

 

 

 

 

 

 

 

 

 

 

 

2022

 

2021

(dollars in thousands, except per share data)

 

First

Quarter

 

Fourth

Quarter

 

Third

Quarter

 

Second

Quarter

 

First

Quarter

EARNINGS SUMMARY

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

19,188

 

 

$

19,022

 

 

$

17,868

 

 

$

15,069

 

 

$

14,283

 

Provision for loan losses

 

 

50

 

 

 

50

 

 

 

150

 

 

 

 

 

 

500

 

Non-interest income

 

 

9,152

 

 

 

10,815

 

 

 

9,438

 

 

 

7,751

 

 

 

8,576

 

Non-interest expense

 

 

21,805

 

 

 

24,512

 

 

 

21,211

 

 

 

17,465

 

 

 

15,782

 

Income taxes

 

 

1,161

 

 

 

1,116

 

 

 

362

 

 

 

1,358

 

 

 

1,658

 

Net income

 

 

5,324

 

 

 

4,159

 

 

 

5,583

 

 

 

3,997

 

 

 

4,919

 

PERFORMANCE MEASURES

 

 

 

 

 

 

 

 

 

 

Per common share:

 

 

 

 

 

 

 

 

 

 

Common shares outstanding

 

 

17,586,333

 

 

 

13,673,898

 

 

 

13,674,198

 

 

 

9,498,783

 

 

 

9,498,783

 

Weighted average basic shares

 

 

15,877,695

 

 

 

13,673,998

 

 

 

12,344,926

 

 

 

9,498,783

 

 

 

9,498,783

 

Weighted average diluted shares

 

 

15,877,695

 

 

 

13,673,998

 

 

 

12,344,926

 

 

 

9,498,783

 

 

 

9,498,783

 

Earnings per basic share

 

$

0.34

 

 

$

0.30

 

 

$

0.45

 

 

$

0.42

 

 

$

0.52

 

Earnings per diluted share

 

 

0.34

 

 

 

0.30

 

 

 

0.45

 

 

 

0.42

 

 

 

0.52

 

Adjusted earnings per diluted share(b)

 

 

0.37

 

 

 

0.40

 

 

 

0.57

 

 

 

0.49

 

 

 

0.53

 

Cash dividends declared per share

 

 

0.1075

 

 

 

0.1025

 

 

 

0.1025

 

 

 

0.1025

 

 

 

0.1025

 

Common book value per share

 

 

14.23

 

 

 

15.92

 

 

 

15.88

 

 

 

15.46

 

 

 

15.11

 

Tangible book value per common share(b)

 

 

10.83

 

 

 

11.41

 

 

 

11.42

 

 

 

13.50

 

 

 

13.14

 

 

 

 

 

 

 

 

 

 

 

 

Performance ratios:

 

 

 

 

 

 

 

 

 

 

Net interest margin (a)

 

 

3.13

%

 

 

3.16

%

 

 

3.48

%

 

 

3.68

%

 

 

3.50

%

Return on average assets

 

 

0.81

 

 

 

0.64

 

 

 

1.00

 

 

 

0.91

 

 

 

1.12

 

Return on average total equity

 

 

8.88

 

 

 

7.65

 

 

 

11.49

 

 

 

11.14

 

 

 

13.71

 

Efficiency ratio

 

 

76.94

 

 

 

82.15

 

 

 

77.68

 

 

 

76.53

 

 

 

69.04

 

Operating efficiency ratio (b)

 

 

74.74

 

 

 

76.52

 

 

 

70.38

 

 

 

72.74

 

 

 

68.27

 

ASSET QUALITY

 

 

 

 

 

 

 

 

 

 

Nonperforming loans (NPLs)

 

$

6,171

 

 

$

5,449

 

 

$

12,246

 

 

$

9,205

 

 

$

10,676

 

Other real estate owned

 

 

246

 

 

 

281

 

 

 

807

 

 

 

270

 

 

 

518

 

Repossessed assets

 

 

48

 

 

 

49

 

 

 

3

 

 

 

29

 

 

 

29

 

Total nonperforming assets (NPAs)

 

 

6,465

 

 

 

5,779

 

 

 

13,056

 

 

 

9,504

 

 

 

11,223

 

Classified loans

 

 

18,306

 

 

 

19,016

 

 

 

30,300

 

 

 

30,852

 

 

 

35,182

 

Criticized loans

 

 

52,859

 

 

 

58,938

 

 

 

61,857

 

 

 

64,818

 

 

 

80,288

 

Net loan (recoveries)/charge-offs

 

 

41

 

 

 

(17

)

 

 

144

 

 

 

(178

)

 

 

(66

)

Allowance for loan losses to total loans

 

 

0.95

%

 

 

0.96

%

 

 

0.98

%

 

 

1.26

%

 

 

1.19

%

Allowance for loan losses to total NPLs

 

 

209.35

 

 

 

236.92

 

 

 

105.15

 

 

 

140.15

 

 

 

118.89

 

Allowance for loan losses to total NPAs

 

 

199.83

 

 

 

223.40

 

 

 

98.63

 

 

 

135.73

 

 

 

113.10

 

Net (recoveries)/charge-offs to average loans

 

 

0.01

 

 

 

(0.01

)

 

 

0.05

 

 

 

(0.09

)

 

 

(0.02

)

NPLs to total loans

 

 

0.46

 

 

 

0.41

 

 

 

0.93

 

 

 

0.90

 

 

 

1.00

 

NPAs to total assets

 

 

0.24

 

 

 

0.21

 

 

 

0.52

 

 

 

0.54

 

 

 

0.62

 

NPAs to total loans and other real estate owned

 

 

0.48

 

 

 

0.43

 

 

 

1.00

 

 

 

0.93

 

 

 

1.06

 

 

 

 

 

 

 

 

 

 

 

 

AVERAGE BALANCES

 

 

 

 

 

 

 

 

 

 

Total assets

 

 

2,679,242

 

 

 

2,589,908

 

 

 

2,272,904

 

 

 

1,777,559

 

 

 

1,774,123

 

Loans, net

 

 

1,333,784

 

 

 

1,306,796

 

 

 

1,218,102

 

 

 

1,052,645

 

 

 

1,051,179

 

Loans, held for sale

 

 

28,650

 

 

 

38,543

 

 

 

24,964

 

 

 

24,139

 

 

 

27,828

 

Deposits

 

 

2,341,357

 

 

 

2,274,910

 

 

 

1,975,418

 

 

 

1,547,139

 

 

 

1,475,944

 

Total stockholders’ equity

 

 

243,120

 

 

 

215,783

 

 

 

197,109

 

 

 

144,761

 

 

 

145,515

 

(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,

 

2022

 

2021

(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

$

1,362,434

 

$

16,060

 

4.78

%

 

$

1,079,007

 

$

13,638

 

5.13

%

Investment securities, taxable

 

866,445

 

 

3,753

 

1.76

%

 

 

371,265

 

 

1,628

 

1.78

%

Investment securities, tax-exempt 2

 

111,007

 

 

516

 

1.89

%

 

 

32,616

 

 

155

 

1.93

%

Deposits in banks and short term investments

 

161,653

 

 

56

 

0.14

%

 

 

183,376

 

 

53

 

0.12

%

Total interest-earning assets

 

2,501,539

 

 

20,385

 

3.30

%

 

 

1,666,264

 

 

15,474

 

3.77

%

Noninterest-earning assets

 

177,703

 

 

 

 

 

 

107,859

 

 

 

 

Total assets

$

2,679,242

 

 

 

 

 

$

1,774,123

 

 

 

 

Liabilities and stockholders’ equity

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

Interest-earning demand and savings

$

1,445,408

 

$

261

 

0.07

%

 

$

859,462

 

$

165

 

0.08

%

Other time

 

343,215

 

 

338

 

0.40

%

 

 

260,438

 

 

488

 

0.76

%

Total interest-bearing deposits

 

1,788,623

 

 

599

 

0.14

%

 

 

1,119,900

 

 

653

 

0.24

%

Federal Home Loan Bank advances

 

51,678

 

 

249

 

1.95

%

 

 

22,500

 

 

113

 

2.05

%

Paycheck Protection Program Liquidity Facility

 

 

 

 

%

 

 

60,602

 

 

68

 

0.46

%

Other borrowings

 

32,181

 

 

201

 

2.53

%

 

 

61,654

 

 

257

 

1.68

%

Total other interest-bearing liabilities

 

83,859

 

 

450

 

2.18

%

 

 

144,756

 

 

438

 

1.23

%

Total interest-bearing liabilities

 

1,872,482

 

 

1,049

 

0.23

%

 

 

1,264,656

 

 

1,091

 

0.35

%

Noninterest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

$

552,734

 

 

 

 

 

$

356,044

 

 

 

 

Other liabilities

 

10,906

 

 

 

 

 

 

7,908

 

 

 

 

Stockholders’ equity

 

243,120

 

 

 

 

 

 

145,515

 

 

 

 

Total noninterest-bearing liabilities and stockholders’ equity

 

806,760

 

 

 

 

 

 

509,467

 

 

 

 

Total liabilities and stockholders’ equity

$

2,679,242

 

 

 

 

 

$

1,774,123

 

 

 

 

Interest rate spread

 

 

 

 

3.08

%

 

 

 

 

 

3.42

%

Net interest income

 

 

$

19,336

 

 

 

 

 

$

14,383

 

 

Net interest margin

 

 

 

 

3.13

%

 

 

 

 

 

3.50

%

 

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 $50,000 and $66,000 for the quarters ended March 31, 2022 and 2021, respectively, are included in income and fees on loans. Accretion income of $269,000 and $209,000 for the quarter ended March 31, 2022 and 2021 are also included in income and fees on loans.

2Taxable-equivalent adjustments totaling $98,000 and $33,000 for the quarters ended March 31, 2022 and 2021, respectively, are included in tax-exempt interest on investment securities.

 
Colony Bankcorp, Inc.

Segment Reporting

 

 

2022

 

2021

(dollars in thousands)

 

First Quarter

 

Fourth Quarter

 

Third Quarter

 

Second Quarter

 

First Quarter

Banking Division

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

18,824

 

$

18,316

 

$

17,181

 

 

$

14,864

 

$

13,985

Provision for loan losses

 

 

50

 

 

50

 

 

150

 

 

 

 

 

500

Noninterest income

 

 

4,300

 

 

4,480

 

 

4,340

 

 

 

3,354

 

 

3,005

Noninterest expenses

 

 

17,701

 

 

19,280

 

 

16,941

 

 

 

13,366

 

 

11,960

Income taxes

 

 

900

 

 

475

 

 

434

 

 

 

1,241

 

 

1,160

Segment income

 

$

4,473

 

$

2,991

 

$

3,996

 

 

$

3,611

 

$

3,370

 

 

 

 

 

 

 

 

 

 

 

Total segment assets

 

$

2,627,450

 

$

2,620,501

 

$

2,499,223

 

 

$

1,710,345

 

$

1,755,667

 

 

 

 

 

 

 

 

 

 

 

Full time employees

 

 

404

 

 

400

 

 

417

 

 

 

294

 

 

291

 

 

 

 

 

 

 

 

 

 

 

Mortgage Banking Division

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

71

 

$

114

 

$

138

 

 

$

123

 

$

168

Provision for loan losses

 

 

 

 

 

 

 

 

 

 

 

Noninterest income

 

 

2,912

 

 

3,102

 

 

3,104

 

 

 

2,997

 

 

3,986

Noninterest expenses

 

 

2,711

 

 

2,869

 

 

2,765

 

 

 

2,887

 

 

2,793

Income taxes

 

 

101

 

 

334

 

 

(290

)

 

 

60

 

 

354

Segment income

 

$

171

 

$

13

 

$

767

 

 

$

173

 

$

1,007

 

 

 

 

 

 

 

 

 

 

 

Total segment assets

 

$

19,417

 

$

25,149

 

$

21,184

 

 

$

25,149

 

$

27,478

 

 

 

 

 

 

 

 

 

 

 

Full time employees

 

 

62

 

 

55

 

 

53

 

 

 

53

 

 

51

 

 

 

 

 

 

 

 

 

 

 

Small Business Specialty Lending Division

 

 

 

 

 

 

Net interest income

 

$

293

 

$

592

 

$

549

 

 

$

82

 

$

130

Provision for loan losses

 

 

 

 

 

 

 

 

 

 

 

Noninterest income

 

 

1,940

 

 

3,233

 

 

1,994

 

 

 

1,400

 

 

1,585

Noninterest expenses

 

 

1,393

 

 

2,363

 

 

1,505

 

 

 

1,212

 

 

1,029

Income taxes

 

 

160

 

 

307

 

 

218

 

 

 

57

 

 

144

Segment income

 

$

680

 

$

1,155

 

$

820

 

 

$

213

 

$

542

 

 

 

 

 

 

 

 

 

 

 

Total segment assets

 

$

39,921

 

$

46,065

 

$

23,291

 

 

$

20,024

 

$

15,901

 

 

 

 

 

 

 

 

 

 

 

Full time employees

 

 

28

 

 

26

 

 

24

 

 

 

24

 

 

23

 

 

 

 

 

 

 

 

 

 

 

Total Consolidated

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

19,188

 

$

19,022

 

$

17,868

 

 

$

15,069

 

$

14,283

Provision for loan losses

 

 

50

 

 

50

 

 

150

 

 

 

 

 

500

Noninterest income

 

 

9,152

 

 

10,815

 

 

9,438

 

 

 

7,751

 

 

8,576

Noninterest expenses

 

 

21,805

 

 

24,512

 

 

21,211

 

 

 

17,465

 

 

15,782

Income taxes

 

 

1,161

 

 

1,116

 

 

362

 

 

 

1,358

 

 

1,658

Segment income

 

$

5,324

 

$

4,159

 

$

5,583

 

 

$

3,997

 

$

4,919

 

 

 

 

 

 

 

 

 

 

 

Total segment assets

 

$

2,686,788

 

$

2,691,715

 

$

2,543,698

 

 

$

1,755,518

 

$

1,799,046

 

 

 

 

 

 

 

 

 

 

 

Full time employees

 

 

494

 

 

481

 

 

494

 

 

 

371

 

 

365

 

Colony Bankcorp, Inc.

Consolidated Balance Sheets

 

 

March 31, 2022

 

December 31, 2021

(dollars in thousands)

 

(unaudited)

 

(audited)

ASSETS

 

 

 

 

Cash and due from banks

 

$

23,594

 

 

$

18,975

 

Interest-bearing deposits in banks and federal funds sold

 

 

132,823

 

 

 

178,257

 

Cash and cash equivalents

 

 

156,417

 

 

 

197,232

 

Investment securities available for sale, at fair value

 

 

653,292

 

 

 

938,164

 

Investment securities held to maturity, at amortized cost

 

 

307,009

 

 

 

 

Other investments, at cost

 

 

13,827

 

 

 

14,012

 

Loans held for sale

 

 

24,228

 

 

 

38,150

 

Loans, net of unearned income

 

 

1,354,032

 

 

 

1,337,977

 

Allowance for loan losses

 

 

(12,919

)

 

 

(12,910

)

Loans, net

 

 

1,341,113

 

 

 

1,325,067

 

Premises and equipment

 

 

43,010

 

 

 

43,033

 

Other real estate

 

 

246

 

 

 

281

 

Goodwill

 

 

52,902

 

 

 

52,906

 

Other intangible assets

 

 

6,924

 

 

 

7,389

 

Bank owned life insurance

 

 

55,488

 

 

 

55,159

 

Deferred income taxes, net

 

 

14,546

 

 

 

3,644

 

Other assets

 

 

17,786

 

 

 

16,678

 

Total assets

 

$

2,686,788

 

 

$

2,691,715

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

Liabilities:

 

 

 

 

Deposits:

 

 

 

 

Noninterest-bearing

 

$

557,985

 

 

$

552,576

 

Interest-bearing

 

 

1,792,801

 

 

 

1,822,032

 

Total deposits

 

 

2,350,786

 

 

 

2,374,608

 

Federal Home Loan Bank advances

 

 

51,712

 

 

 

51,656

 

Other borrowed money

 

 

24,229

 

 

 

36,792

 

Accrued expenses and other liabilities

 

 

9,784

 

 

 

10,952

 

Total liabilities

 

$

2,436,511

 

 

$

2,474,008

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

Common stock, $1 par value; 20,000,000 shares authorized, 17,586,333 and 13,673,898 issued and outstanding, respectively

 

$

17,586

 

 

$

13,674

 

Paid in capital

 

 

166,859

 

 

 

111,021

 

Retained earnings

 

 

103,036

 

 

 

99,189

 

Accumulated other comprehensive loss, net of tax

 

 

(37,204

)

 

 

(6,177

)

Total stockholders’ equity

 

 

250,277

 

 

 

217,707

 

Total liabilities and stockholders’ equity

 

$

2,686,788

 

 

$

2,691,715

 

 
 

Colony Bankcorp, Inc.

Consolidated Statements of Income (unaudited)

 

 

Three months ended March 31,

 

 

2022

 

2021

(dollars in thousands, except per share data)

 

 

Interest income:

 

 

 

 

Loans, including fees

 

$

16,010

 

 

13,573

 

Investment securities

 

 

4,171

 

 

1,750

 

Deposits in banks and short term investments

 

 

56

 

 

53

 

Total interest income

 

 

20,237

 

 

15,376

 

 

 

 

 

 

Interest expense:

 

 

 

 

Deposits

 

 

599

 

 

654

 

Federal Home Loan Bank advances

 

 

249

 

 

114

 

Paycheck Protection Program Liquidity Facility

 

 

 

 

68

 

Other borrowings

 

 

201

 

 

257

 

Total interest expense

 

 

1,049

 

 

1,093

 

Net interest income

 

 

19,188

 

 

14,283

 

Provision for loan losses

 

 

50

 

 

500

 

Net interest income after provision for loan losses

 

 

19,138

 

 

13,783

 

 

 

 

 

 

Noninterest income:

 

 

 

 

Service charges on deposits

 

 

1,825

 

 

1,222

 

Mortgage fee income

 

 

2,912

 

 

3,995

 

Gain on sale of SBA loans

 

 

1,726

 

 

1,471

 

(Loss)/Gain on sale of securities

 

 

24

 

 

(4

)

Interchange fees

 

 

2,000

 

 

1,530

 

BOLI Income

 

 

312

 

 

208

 

Other

 

 

353

 

 

154

 

Total noninterest income

 

 

9,152

 

 

8,576

 

 

 

 

 

 

Noninterest expense:

 

 

 

 

Salaries and employee benefits

 

 

13,272

 

 

9,955

 

Occupancy and equipment

 

 

1,619

 

 

1,326

 

Acquisition related

 

 

624

 

 

176

 

Information technology expenses

 

 

2,354

 

 

1,592

 

Professional fees

 

 

869

 

 

486

 

Advertising and public relations

 

 

766

 

 

580

 

Communications

 

 

437

 

 

218

 

Other

 

 

1,864

 

 

1,449

 

Total noninterest expense

 

 

21,805

 

 

15,782

 

Income before income taxes

 

 

6,485

 

 

6,577

 

Income taxes

 

 

1,161

 

 

1,658

 

Net income

 

$

5,324

 

$

4,919

 

Earnings per common share:

 

 

 

 

Basic

 

$

0.34

 

$

0.52

 

Diluted

 

 

0.34

 

 

0.52

 

Dividends declared per share

 

 

0.1075

 

 

0.1000

 

Weighted average common shares outstanding:

 

 

 

 

Basic

 

 

15,877,695

 

 

9,498,783

 

Diluted

 

 

15,877,695

 

 

9,498,783

 

 

Colony Bankcorp, Inc.

Quarterly Comparison

 

 

2022

 

2021

(dollars in thousands, except per share data)

 

First

Quarter

 

Fourth

Quarter

 

Third

Quarter

 

Second

Quarter

 

First

Quarter

Assets

 

$

2,686,788

 

 

$

2,691,715

 

 

$

2,512,581

 

 

$

1,755,518

 

 

$

1,799,047

 

Loans, net

 

 

1,341,113

 

 

 

1,325,067

 

 

 

1,296,983

 

 

 

1,009,747

 

 

 

1,050,082

 

Deposits

 

 

2,350,786

 

 

 

2,374,608

 

 

 

2,195,122

 

 

 

1,542,214

 

 

 

1,525,884

 

Total equity

 

 

250,277

 

 

 

217,707

 

 

 

217,130

 

 

 

146,894

 

 

 

143,487

 

Net income

 

 

5,324

 

 

 

4,160

 

 

 

5,583

 

 

 

3,997

 

 

 

4,919

 

Earnings per basic share

 

$

0.34

 

 

$

0.30

 

 

$

0.45

 

 

$

0.42

 

 

$

0.52

 

 

 

 

 

 

 

 

 

 

 

 

Key Performance Ratios:

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

0.81

%

 

 

0.64

%

 

 

1.00

%

 

 

0.91

%

 

 

1.12

%

Return on average total equity

 

 

8.88

%

 

 

7.65

%

 

 

11.49

%

 

 

11.14

%

 

 

13.71

%

Total equity to total assets

 

 

9.32

%

 

 

8.09

%

 

 

8.64

%

 

 

8.37

%

 

 

7.98

%

Tangible equity to tangible assets (a)

 

 

7.25

%

 

 

5.93

%

 

 

6.37

%

 

 

7.38

%

 

 

7.01

%

Net interest margin

 

 

3.13

%

 

 

3.16

%

 

 

3.48

%

 

 

3.68

%

 

 

3.50

%

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

 
Colony Bankcorp, Inc.

Quarterly Loan Comparison

 

 

2022

 

2021

(dollars in thousands)

 

First

Quarter

 

Fourth

Quarter

 

Third

Quarter

 

Second

Quarter

 

First

Quarter

Core

 

$

1,093,126

 

$

990,063

 

$

931,793

 

$

905,850

 

$

888,800

PPP

 

 

387

 

 

8,486

 

 

16,999

 

 

58,769

 

 

102,633

Purchased

 

 

260,519

 

 

339,428

 

 

361,068

 

 

57,999

 

 

71,342

Total

 

$

1,354,032

 

$

1,337,977

 

$

1,309,860

 

$

1,022,618

 

$

1,062,775

 
 

Colony Bankcorp, Inc.

Quarterly Loans by Location Comparison

 

 

2022

 

2021

(dollars in thousands)

 

First

Quarter

 

Fourth

Quarter

 

Third

Quarter

 

Second

Quarter

 

First

Quarter

Atlanta

 

$

246,629

 

 

$

281,040

 

 

$

278,473

 

 

$

436

 

 

$

492

 

Augusta

 

 

38,462

 

 

 

36,268

 

 

 

28,064

 

 

 

30,521

 

 

 

23,982

 

Middle Georgia

 

 

117,336

 

 

 

117,788

 

 

 

100,804

 

 

 

73,458

 

 

 

73,543

 

Northwest Georgia

 

 

38,430

 

 

 

27,167

 

 

 

24,334

 

 

 

2,703

 

 

 

1,698

 

Coastal Georgia

 

 

237,621

 

 

 

235,799

 

 

 

233,648

 

 

 

236,985

 

 

 

235,094

 

South Central Georgia

 

 

345,421

 

 

 

336,849

 

 

 

352,057

 

 

 

361,821

 

 

 

371,227

 

Southwest Georgia

 

 

118,263

 

 

 

105,937

 

 

 

99,385

 

 

 

95,870

 

 

 

97,575

 

West Georgia

 

 

168,071

 

 

 

161,678

 

 

 

160,663

 

 

 

148,271

 

 

 

148,457

 

Small Business Specialty Lending

 

 

39,934

 

 

 

23,101

 

 

 

8,850

 

 

 

14,923

 

 

 

7,906

 

Paycheck Protection Program

 

 

387

 

 

 

8,486

 

 

 

16,999

 

 

 

55,425

 

 

 

102,633

 

Purchase Accounting

 

 

(697

)

 

 

(948

)

 

 

(1,025

)

 

 

(565

)

 

 

(668

)

Other

 

 

4,175

 

 

 

4,812

 

 

 

7,608

 

 

 

2,770

 

 

 

836

 

Total

 

$

1,354,032

 

 

$

1,337,977

 

 

$

1,309,860

 

 

$

1,022,618

 

 

$

1,062,775

 

 

Colony Bankcorp, Inc.

Quarterly PPP Fees Comparison

 

 

2022

 

2021

(dollars in thousands)

 

First

Quarter

 

Fourth

Quarter

 

Third

Quarter

 

Second

Quarter

 

First

Quarter

PPP loan fee income

 

$

505

 

$

502

 

$

1,556

 

$

1,581

 

$

1,212

Unearned income on PPP loans

 

 

12

 

 

517

 

 

1,019

 

 

2,573

 

 

3,077

 

LEAVE A REPLY

Please enter your comment!
Please enter your name here