FITZGERALD, Ga., Jan. 16, 2008 (PRIME NEWSWIRE) -- Colony Bankcorp, Inc. (Nasdaq:CBAN), today reported quarterly net income of $752,000 for the fourth quarter of 2007, down 71.20 percent from fourth quarter 2006 net income of $2,611,000. The reduction in earnings was the direct result of additional loan loss provisions due to the elevated risk of residential real estate and land development loans given the downturn in the real estate market during the past six months. Fourth quarter 2007 provision for loan losses were $3,253,000 compared to $997,000 for the same period in 2006 and to $850,000 for third quarter 2007. The increased provision is directly tied to higher risk in the residential and land development real estate loan portfolio and non-performing assets increasing to $16.35 million, or 1.73% of total loans and other real estate owned as of December 31, 2007. This compares to $9.05 million, or 0.96 percent as of December 31, 2006 and to $7.36 million, or 0.76% of total loans and other real estate as of September 30, 2007.
"In response to market conditions, management has extensively reviewed our loan portfolio with a particular emphasis on our residential and land development real estate exposure," said Al D. Ross, Chief Executive Officer of Colony Bankcorp. "We have spent the past ninety days evaluating the credit strength of our borrowers, assessing underlying collateral value and discussing the current status of projects with our customers. Senior management with experience in problem loan workouts have been identified and assigned responsibility to oversee the workout and resolution of problem loans. We will continue to closely monitor our real estate dependent loans throughout the company and focus on asset quality during this economic downturn."
During the fourth quarter internal loan review, higher risk characteristics were identified, primarily with the residential and land development real estate loan portfolio. Many of the loans are not currently past due but are now properly graded so that proper risk is assigned. This review necessitated increased provisions in order for management to believe that the level of the allowance for loan losses was adequate as of December 31, 2007. The loan loss reserve of $15,513,000 on December 31, 2007 was 1.64 percent of total loans compared to $11,989,000 or 1.27 percent on December 31, 2006 and $13,821,000 or 1.43 percent on September 30, 2007. Net charge-offs for the quarter were 0.16 percent of average loans, up from 0.14 percent for the fourth quarter of 2006, while net charge-offs for the calendar year 2007 were 0.25 percent, down from 0.30 percent for calendar year 2006.
The increase in non-performing assets are primarily attributable to one land development loan totaling $5.4 million in the Alabama gulf coast market, one residential real estate line totaling $882,000 in the Warner Robins market, and three residential and land development lines in the Georgia/South Carolina coastal market totaling $3.2 million. Management believes with the increase in non-performing assets and the movement of grades to properly identify risk in certain real estate loans that adequate provisions and allowance for loan losses have been recorded to address our real estate dependent loan exposure.
Ross added, "Although we are disappointed to report these credit issues, I am pleased with the progress we have made during the quarter in assessing the current credit risk, re-focusing management's activities and maintaining adequate reserve levels. As a result of the extensive loan review, ongoing senior management involvement with the resolution of problem loans and our strong capital and allowance for loan loss levels, we believe we are well positioned to manage through this difficult credit cycle."
Net income for 2007 was $8,547,000 compared to $10,152,000 for 2006 or a decrease of 15.81 percent. The decrease was primarily attributable to provision for loan losses increasing to $5,931,000 for 2007 compared to $3,987,000 for 2006, or an increase of 48.76 percent. Diluted earnings per share for 2007 were $1.19 compared to $1.41 per share for 2006 or a decrease of 15.60 percent. Return on assets for 2007 were 0.71 percent and return on equity was 10.60 percent, compared to 0.87 percent and 14.10 percent for 2006, respectively. With sluggish loan activity and reversal of interest for loans placed on non-accrual, net interest margin decreased to 3.75 percent for 2007 compared to 3.84 percent for 2006. The Company had total assets of $1,207,238,000, gross loans of $945,279,000 and total equity of $83,743,000 at December 31, 2007. Shareholder equity to total assets improved to 6.94 percent on December 31, 2007 compared to 6.31 percent on December 31, 2006 -- the strongest Company capital levels in recent years.
During the quarter the board of directors increased the quarterly cash dividend to $0.095 per share compared to $0.0925 per share in the third quarter of 2007 and to the cash dividend of $0.085 per share in the fourth quarter of 2006. The fourth quarter dividend payment represents an increase of 11.76 percent over the dividend payment in fourth quarter 2006.
Colony Bankcorp, Inc. is a multi-bank holding company headquartered in Fitzgerald, Georgia that consists of the following subsidiaries: Colony Bank of Fitzgerald, Colony Bank Wilcox, Colony Bank Ashburn, Colony Bank of Dodge County, Colony Bank Worth, Colony Bank Southeast, Colony Bank Quitman, FSB, Georgia First Mortgage Company and Colony Management Services, Inc. The Company conducts a general full service commercial, consumer and mortgage banking business through twenty-nine offices located in the middle and south Georgia cities of Fitzgerald, Warner Robins, Centerville, Ashburn, Leesburg, Cordele, Albany, Thomaston, Columbus, Sylvester, Tifton, Moultrie, Douglas, Broxton, Savannah, Eastman, Chester, Soperton, Rochelle, Pitts, Quitman and Valdosta, Georgia.
Colony Bankcorp, Inc. Common Stock is quoted on the Nasdaq National Market under the symbol "CBAN".
Certain statements contained in the preceding release that are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"), notwithstanding that such statements are not specifically identified. 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 the Act. Examples of forward-looking statements include, but are not limited to: (i) projections 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; and (iv) 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.
Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those in such statements. Forward-looking statements speak only as of the date on which such statements are made. 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.
COLONY BANKCORP, INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
QUARTER ENDED YEAR-TO-DATE
EARNINGS SUMMARY 12/31/07 12/31/06 12/31/07 12/31/06
--------- --------- --------- ---------
Net Interest Income $ 10,390 $ 10,481 $ 42,459 $ 41,888
Provision for Loan Losses 3,253 997 5,931 3,987
Non-interest Income 1,805 1,788 7,817 7,312
Non-interest Expense 7,950 7,478 31,580 29,844
Income Taxes 240 1,183 4,218 5,217
Net Income 752 2,611 8,547 10,152
Operating Income 752 2,611 8,426 10,152
QUARTER ENDED YEAR-TO-DATE
PER SHARE SUMMARY 12/31/07 12/31/06 12/31/07 12/31/06
--------- --------- --------- ---------
Common Shares Outstanding 7,200,913 7,189,937 7,200,913 7,189,937
Weighted Average
Diluted Shares 7,194,514 7,179,017 7,197,331 7,177,737
Net Income Per Weighted
Average Diluted Shares $ 0.10 $ 0.36 $ 1.19 $ 1.41
Operating Income Per
Weighted Average Diluted
Shares $ 0.10 $ 0.36 $ 1.17 $ 1.41
Dividends Declared
Per Share $ 0.095 $ 0.085 $ 0.365 $ 0.325
QUARTER ENDED YEAR-TO-DATE
OPERATING RATIOS (1) 12/31/07 12/31/06 12/31/07 12/31/06
--------- --------- --------- ---------
Net Interest Margin (a) 3.64% 3.70% 3.75% 3.84%
Return on Average Assets
Based on Net Income 0.25% 0.87% 0.71% 0.87%
Return on Average Assets
Based on Operating Income 0.25% 0.87% 0.69% 0.87%
Return on Average Equity
Based on Net Income 3.58% 13.83% 10.60% 14.10%
Return on Average Equity
Based on Operating Income 3.58% 13.83% 10.45% 14.10%
Efficiency (b) 64.68% 60.53% 62.37% 60.33%
(1) Annualized.
(a) Computed using fully taxable-equivalent net income.
(b) Computed by dividing non-interest expense by the sum of fully
taxable-equivalent net interest income and non-interest income.
QUARTER ENDED
ENDING BALANCES 12/31/07 12/31/06
----------- -----------
Total Assets $ 1,207,238 $ 1,213,504
Loans, Net of Reserves 929,465 929,783
Allowance for Loan Losses 15,513 11,989
Goodwill 2,412 2,412
Intangible Assets 402 439
Deposits 1,018,297 1,042,446
Stockholders' Equity 83,743 76,611
Book Value Per Share $ 11.63 $ 10.66
Tangible Book Value
Per Share $ 11.24 $ 10.26
Shareholders' Equity to
Total Assets 6.94% 6.31%
COLONY BANKCORP, INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
QUARTER ENDED YEAR-TO-DATE
AVERAGE BALANCES 12/31/07 12/31/06 12/31/07 12/31/06
---------- ---------- ---------- ----------
Total Assets $1,214,481 $1,205,025 $1,204,165 $1,160,718
Loans, Net of Reserves 945,891 930,665 934,083 900,711
Deposits 1,018,526 1,033,741 1,021,537 990,968
Stockholders' Equity 83,999 75,524 80,638 71,993
QUARTER ENDED YEAR-TO-DATE
ASSET QUALITY 12/31/07 12/31/06 12/31/07 12/31/06
---------- ---------- ---------- ----------
Nonperforming Loans $ 15,016 $ 8,078 $ 15,016 $ 8,078
Nonperforming Assets 16,348 9,048 16,348 9,048
Net Loan Chg-offs
(Recoveries) 1,561 1,316 2,407 2,760
Reserve for Loan Loss
to Gross Loans 1.64% 1.27% 1.64% 1.27%
Reserve for Loan Loss
to Non-performing Loans 103.31% 148.42% 103.31% 148.42%
Reserve for Loan Loss
to Non-performing Assets 94.89% 132.50% 94.89% 132.50%
Net Loan Chg-offs
(Recoveries) to Avg.
Gross Loans 0.16% 0.14% 0.25% 0.30%
Nonperforming Loans
to Gross Loans 1.59% 0.86% 1.59% 0.86%
Nonperforming Assets
to Total Assets 1.35% 0.75% 1.35% 0.75%
Nonperforming Assets
to Gross Loans And
Other Real Estate 1.73% 0.96% 1.73% 0.96%
Quarterly Comparative Data (in thousands, except per share data)
4Q2007 3Q2007 2Q2007 1Q2007 4Q2006
Assets $1,207,238 $1,213,270 $1,203,777 $1,191,407 $1,213,504
Loans 929,465 954,066 940,786 917,984 929,783
Deposits 1,018,297 1,018,755 1,021,743 1,024,632 1,042,446
Equity 83,743 82,921 79,858 78,553 76,611
Net Income 752 2,619 2,702 2,474 2,611
Net Income
Per Share 0.10 0.36 0.38 0.34 0.36
Dividends
Declared
Per Share 0.095 0.0925 0.09 0.0875 0.085
Key Performance
Ratios 4Q2007 3Q2007 2Q2007 1Q2007 4Q2006
Return on Assets 0.25% 0.87% 0.91% 0.82% 0.87%
Return on Equity 3.58% 12.87% 13.58% 12.76% 13.83%
Equity/Assets 6.94% 6.83% 6.63% 6.59% 6.31%
Net Interest
Margin 3.64% 3.81% 3.86% 3.70% 3.70%
Consolidated Balance Sheets Colony Bankcorp, Inc.
(in thousands)
Dec. 31, 2007 Dec. 31, 2006
------------ ------------
(unaudited) (unaudited)
ASSETS
Cash and Cash Equivalents
Cash and Due from Banks $ 28,369 $ 27,231
Federal Funds Sold 21,737 45,149
------------ ------------
50,106 72,380
------------ ------------
Interest-Bearing Deposits 1,467 3,076
------------ ------------
Investment Securities
Available for Sale, at Fair Value 167,123 149,236
Held for Maturity, at Cost (Fair Value
of $72 and $71 as of Dec. 31, 2007
and Dec. 31, 2006, Respectively) 68 71
------------ ------------
167,191 149,307
------------ ------------
Federal Home Loan Bank Stock, at Cost 5,533 5,087
------------ ------------
Loans 945,279 942,273
Allowance for Loan Losses (15,513) (11,989)
Unearned Interest and Fees (301) (501)
------------ ------------
929,465 929,783
------------ ------------
Premises and Equipment 27,504 27,453
------------ ------------
Other Real Estate 1,332 970
------------ ------------
Goodwill 2,412 2,412
------------ ------------
Other Intangible Assets 402 439
------------ ------------
Other Assets 21,826 22,597
------------ ------------
Total Assets $ 1,207,238 $ 1,213,504
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
Noninterest-Bearing $ 85,807 $ 77,336
Interest-Bearing 932,490 965,110
------------ ------------
1,018,297 1,042,446
------------ ------------
Borrowed Money
Federal Funds Purchased 1,346 1,070
Subordinated Debentures 24,229 24,229
Other Borrowed Money 73,600 61,500
------------ ------------
99,175 86,799
------------ ------------
Other Liabilities 6,023 7,648
------------ ------------
Stockholders' Equity
Common Stock, Par Value $1, Authorized
20,000,000 Shares, Issued 7,200,913
and 7,189,937 Shares as of Dec. 31,
2007 and Dec. 31, 2006, Respectively 7,201 7,190
Paid in Capital 24,420 24,257
Retained Earnings 52,087 46,417
Restricted Stock - Unearned Compensation (237) (278)
Accumulated Other Comprehensive Loss,
Net of Tax 272 (975)
------------ ------------
83,743 76,611
------------ ------------
Total Liabilities and Stockholders'
Equity $ 1,207,238 $ 1,213,504
============ ============
Consolidated Statements of Income Colony Bankcorp, Inc.
(in thousands except per share data)
Quarter Year-to-Date
Three Months Ended Twelve Months Ended
12/31/07 12/31/06 12/31/07 12/31/06
--------- --------- --------- ---------
(unaudited)(unaudited)(unaudited)(unaudited)
Interest Income
Loans, Including Fees $ 20,051 $ 20,017 $ 80,974 $ 75,087
Federal Funds Sold 274 577 1,478 2,035
Deposits with Other Banks 32 41 143 133
Investment Securities
U.S. Government Agencies 1,689 1,483 6,438 5,199
State, County and
Municipal 168 107 549 381
Corporate Obligations/
Asset-Backed Sec. 64 46 269 162
Dividends on Other
Investments 84 80 309 283
--------- --------- --------- ---------
22,336 22,351 90,160 83,280
--------- --------- --------- ---------
Interest Expense
Deposits 10,598 10,672 42,731 36,610
Federal Funds Purchased 9 1 59 29
Borrowed Money 1,339 1,197 4,911 4,753
--------- --------- --------- ---------
11,946 11,870 47,701 41,392
--------- --------- --------- ---------
Net Interest Income 10,390 10,481 42,459 41,888
Provision for Loan
Losses 3,253 997 5,931 3,987
--------- --------- --------- ---------
Net Interest Income After
Provision for Loan
Losses 7,137 9,484 36,528 37,901
--------- --------- --------- ---------
Noninterest Income
Service Charges on
Deposits 1,215 1,200 4,771 4,580
Other Service Charges,
Commissions and Fees 218 206 921 708
Mortgage Fee Income 204 252 967 768
Securities Gains -- -- 184 --
Other 168 130 974 1,133
--------- --------- --------- ---------
1,805 1,788 7,817 7,312
--------- --------- --------- ---------
Noninterest Expense
Salaries and Employee
Benefits 4,173 4,194 17,866 16,870
Occupancy and Equipment 1,004 1,000 4,040 4,035
Other 2,773 2,284 9,674 8,939
--------- --------- --------- ---------
7,950 7,478 31,580 29,844
--------- --------- --------- ---------
Income Before Income Taxes 992 3,794 12,765 15,369
Income Taxes 240 1,183 4,218 5,217
--------- --------- --------- ---------
Net Income $ 752 $ 2,611 $ 8,547 $ 10,152
========= ========= ========= =========
Net Income Per Share of
Common Stock
Basic $ 0.10 $ 0.36 $ 1.19 $ 1.41
========= ========= ========= =========
Diluted $ 0.10 $ 0.36 $ 1.19 $ 1.41
========= ========= ========= =========
Weighted Average Basic
Shares Outstanding 7,192,026 7,179,017 7,188,696 7,176,894
========= ========= ========= =========
Weighted Average Diluted
Shares Outstanding 7,194,514 7,179,017 7,197,331 7,177,737
========= ========= ========= =========