FITZGERALD, Ga., April 25, 2008 (PRIME NEWSWIRE) -- Colony Bankcorp, Inc. (Nasdaq:CBAN), today reported quarterly net income of $2,213,000 for the first quarter of 2008, down 10.55 percent from first quarter 2007 net income of $2,474,000. The reduction in earnings was primarily the result of net interest income decreasing to $9,605,000 in first quarter 2008 from $10,451,000 in the same year ago period. This reduction ties directly to the aggressive posture taken by the Federal Reserve to combat the downturn in the real estate market and recessionary fears as they lowered interest rates 100 basis points during the last four months of 2007 and 200 basis points during first quarter 2008. The significant rate reduction along with sluggish loan activity resulted in Colony's net interest margin declining to 3.44 percent for first quarter 2008 compared to 3.70 percent for first quarter 2007. The reduction in net interest income was partially offset by an increase in non-interest income to $2.37 million for first quarter 2008 compared to $2.11 million for the same year ago period, a decrease in non-interest expense to $7.76 million for first quarter 2008 compared to $7.91 million for the same year ago period and a reduction in income tax expense to $0.94 million for first quarter 2008 compared to $1.26 million for the same year ago period. Diluted earnings per share for the quarter were $0.31 compared to $0.34 for the same year ago period or a decrease of 8.82 percent. Annualized return on assets for the quarter were 0.74 percent and return on equity was 10.38 percent, compared to 0.82 percent and 12.76 percent for the same year ago period, respectively.
"In response to market conditions, the Company continues to closely monitor our real estate dependent loans throughout the company and focus on asset quality during this economic downturn," said Al D. Ross, Chief Executive Officer of Colony Bankcorp. Non-performing assets increased to $18.2 million, or 1.92 percent of total loans and other real estate owned as of March 31, 2008. This compares to 16.35 million, or 1.73 percent as of December 31, 2007 and to $8.04 million or 0.86 percent of total loans and other real estate owned as of March 31, 2007. The loan loss reserve of $15.22 million on March 31, 2008 was 1.61 percent of total loans compared to $15.51 million or 1.64 percent on December 31, 2007 and 12.17 million or 1.31 percent on March 31, 2007. First quarter 2008 loan loss provisions were $1.07 million compared to $0.91 million for the same period in 2007. Net charge-offs for the quarter were 0.14 percent of average loans, up from 0.08 percent for the first quarter of 2007. Ross added, "Management believes that recent contributions to Allowance for Loan Losses adequately addresses the increase in non-performing assets and the related increase in classified assets. With our senior management's on-going involvement with problem loan resolution, overall strong capital position and increased loan loss provisions, we believe we are well positioned to manage through this difficult credit cycle."
The Company had total assets of $1,185,226,000, gross loans of $943,412,000, total deposits of $993,556,000 and total equity of $86,014,000 at March 31, 2008. Shareholder equity to total assets improved to 7.26 percent on March 31, 2008 compared to 6.59 percent on March 31, 2007 -- the strongest Company capital levels in recent years.
During the quarter the board of directors increased the quarterly cash dividend to $0.0975 per share compared to $0.095 per share in the fourth quarter of 2007 and to the cash dividend of $0.0875 per share in the first quarter of 2007. The first quarter dividend payment represents an increase of 11.43 percent over the dividend payment in first quarter 2007.
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 03/31/08 03/31/07 03/31/08 03/31/07
-------- -------- -------- --------
Net Interest Income $9,605 $10,451 $9,605 $10,451
Provision for Loan Losses 1,071 914 1,071 914
Non-interest Income 2,371 2,110 2,371 2,110
Non-interest Expense 7,757 7,909 7,757 7,909
Income Taxes 935 1,264 935 1,264
Net Income 2,213 2,474 2,213 2,474
Operating Income 1,837 2,353 1,837 2,353
QUARTER ENDED YEAR-TO-DATE
PER SHARE SUMMARY 03/31/08 03/31/07 03/31/08 03/31/07
-------- -------- -------- --------
Common Shares Outstanding 7,216,113 7,204,775 7,216,113 7,204,775
Weighted Average Diluted
Shares 7,191,861 7,194,741 7,191,861 7,194,741
Net Income Per Weighted
Average Diluted Shares $0.31 $0.34 $0.31 $0.34
Operating Income Per
Weighted Average Diluted
Shares $0.25 $0.33 $0.25 $0.33
Dividends Declared Per
Share $0.0975 $0.0875 $0.0975 $0.0875
QUARTER ENDED YEAR-TO-DATE
OPERATING RATIOS (1) 03/31/08 03/31/07 03/31/08 03/31/07
-------- -------- -------- --------
Net Interest Margin (a) 3.44% 3.70% 3.44% 3.70%
Return on Average Assets
Based on Net Income 0.74% 0.82% 0.74% 0.82%
Return on Average Assets
Based on Operating Income 0.62% 0.78% 0.62% 0.78%
Return on Average Equity
Based on Net Income 10.38% 12.76% 10.38% 12.76%
Return on Average Equity
Based on Operating Income 8.62% 12.13% 8.62% 12.13%
Efficiency (b) 64.27% 62.57% 64.27% 62.57%
QUARTER ENDED
ENDING BALANCES 03/31/08 03/31/07
-------- --------
Total Assets $1,185,226 $1,191,407
Loans Held for Sale -- 335
Loans, Net of Reserves 927,958 917,649
Allowance for Loan Losses 15,220 12,170
Goodwill 2,412 2,412
Intangible Assets 393 429
Deposits 993,556 1,024,632
Stockholders' Equity 86,014 78,553
Book Value Per Share $11.92 $10.90
Tangible Book Value Per
Share $11.53 $10.51
Shareholders' Equity to
Total Assets 7.26% 6.59%
QUARTER ENDED YEAR-TO-DATE
AVERAGE BALANCES 03/31/08 03/31/07 03/31/08 03/31/07
-------- -------- -------- --------
Total Assets $1,190,063 $1,204,804 $1,190,163 $1,204,804
Loans, Net of Reserves 931,352 915,712 931,352 915,712
Deposits 998,685 1,033,322 998,685 1,033,322
Stockholders' Equity 85,260 77,562 85,260 77,562
QUARTER ENDED YEAR-TO-DATE
ASSET QUALITY 03/31/08 03/31/07 03/31/08 03/31/07
-------- -------- -------- --------
Nonperforming Loans $14,438 $6,476 $14,438 $6,476
Nonperforming Assets 18,196 8,039 18,196 8,039
Net Loan Chg-offs
(Recoveries) 1,364 733 1,364 733
Reserve for Loan Loss
to Gross Loans 1.61% 1.31% 1.61% 1.31%
Reserve for Loan Loss
to Non-performing Loans 105.42% 187.92% 105.42% 187.92%
Reserve for Loan Loss
to Non-performing Assets 83.64% 151.39% 83.64% 151.39%
Net Loan Chg-offs
(Recoveries) to Avg.
Gross Loans 0.14% 0.08% 0.14% 0.08%
Nonperforming Loans to
Gross Loans 1.53% 0.70% 1.53% 0.70%
Nonperforming Assets to
Total Assets 1.54% 0.67% 1.54% 0.67%
Nonperforming Assets to
Gross Loans And Other
Real Estate 1.92% 0.86% 1.92% 0.86%
(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.
Quarterly Comparative Data (in thousands, except per share data)
1Q2008 4Q2007 3Q2007 2Q2007 1Q2007
Assets $1,185,226 $1,208,776 $1,213,270 $1,203,777 $1,191,407
Loans 927,958 929,465 954,066 940,786 917,984
Deposits 993,556 1,018,602 1,018,755 1,021,743 1,024,632
Equity 86,014 83,743 82,921 79,858 78,553
Net Income 2,213 752 2,619 2,702 2,474
Net Income
Per Share 0.31 0.10 0.36 0.38 0.34
Dividends
Declared
Per Share 0.0975 0.095 0.0925 0.09 0.0875
Key Performance
Ratios 1Q2008 4Q2007 3Q2007 2Q2007 1Q2007
Return on
Assets 0.74% 0.25% 0.87% 0.91% 0.82%
Return on
Equity 10.38% 3.58% 12.87% 13.58% 12.76%
Equity/Assets 7.26% 6.94% 6.83% 6.63% 6.59%
Net Interest
Margin 3.44% 3.64% 3.81% 3.86% 3.70%
Consolidated Balance Sheets Colony Bankcorp, Inc.
(in thousands)
Mar. 31, 2008 Mar. 31, 2007
------------- -------------
(unaudited) (unaudited)
ASSETS
Cash and Cash Equivalents
Cash and Due from Banks $24,457 $21,583
Federal Funds Sold 12,697 35,004
---------- ----------
37,154 56,587
---------- ----------
Interest-Bearing Deposits 1,279 2,810
---------- ----------
Investment Securities
Available for Sale, at Fair Value 156,004 156,028
Held for Maturity, at Cost
(Fair Value of $73 and $73 as of
Mar. 31, 2008 and Mar. 31, 2007,
Respectively) 68 73
---------- ----------
156,072 156,101
---------- ----------
Federal Home Loan Bank Stock,
at Cost 5,395 4,903
---------- ----------
Loans Held for Sale -- 335
---------- ----------
Loans 943,412 930,250
Allowance for Loan Losses (15,220) (12,170)
Unearned Interest and Fees (234) (431)
---------- ----------
927,958 917,649
---------- ----------
Premises and Equipment 28,527 27,268
---------- ----------
Other Real Estate 3,758 1,563
---------- ----------
Goodwill 2,412 2,412
---------- ----------
Other Intangible Assets 393 429
---------- ----------
Other Assets 22,278 21,350
---------- ----------
Total Assets $1,185,226 $1,191,407
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
Noninterest-Bearing $76,600 $76,702
Interest-Bearing 916,956 947,930
---------- ----------
993,556 1,024,632
---------- ----------
Borrowed Money
Federal Funds Purchased 2,917 480
Subordinated Debentures 24,229 24,229
Other Borrowed Money 70,900 55,000
---------- ----------
98,046 79,709
---------- ----------
Other Liabilities 7,610 8,513
---------- ----------
Stockholders' Equity
Common Stock, Par Value $1,
Authorized 20,000,000 Shares,
Issued 7,216,113 and 7,204,775
Shares as of Mar. 31, 2008
and Mar. 31, 2007, Respectively 7,216 7,205
Paid in Capital 24,601 24,503
Retained Earnings 53,596 48,013
Restricted Stock- Unearned
Compensation (410) (478)
Accumulated Other Comprehensive
Loss, Net of Tax 1,011 (690)
---------- ----------
86,014 78,553
---------- ----------
Total Liabilities and Stockholders'
Equity $1,185,226 $1,191,407
========== ==========
Consolidated Statements of Income Colony Bankcorp, Inc.
(in thousands except per share data)
Quarter Year-to-Date
Three Months Ended Twelve Months Ended
03/31/08 03/31/07 03/31/08 03/31/07
--------- --------- --------- ---------
(unaudited)(unaudited)(unaudited)(unaudited)
Interest Income
Loans, Including Fees $18,351 $19,768 $18,351 $19,768
Federal Funds Sold 155 631 155 631
Deposits with Other Banks 11 41 11 41
Investment Securities
U.S. Government Agencies 1,679 1,544 1,679 1,544
State, County and
Municipal 138 134 138 134
Corporate Obligations/
Asset-Backed Sec. 94 63 94 63
Dividends on Other
Investments 84 76 84 76
--------- --------- --------- ---------
20,512 22,257 20,512 22,257
--------- --------- --------- ---------
Interest Expense
Deposits 9,672 10,607 9,672 10,607
Federal Funds Purchased 27 6 27 6
Borrowed Money 1,208 1,193 1,208 1,193
--------- --------- --------- ---------
10,907 11,806 10,907 11,806
--------- --------- --------- ---------
Net Interest Income 9,605 10,451 9,605 10,451
Provision for Loan Losses 1,071 914 1,071 914
--------- --------- --------- ---------
Net Interest Income After
Provision for Loan Losses 8,534 9,537 8,534 9,537
--------- --------- --------- ---------
Noninterest Income
Service Charges on Deposits 1,165 1,118 1,165 1,118
Other Service Charges,
Commissions and Fees 254 246 254 246
Mortgage Fee Income 169 252 169 252
Securities Gains 570 184 570 184
Other 213 310 213 310
--------- --------- --------- ---------
2,371 2,110 2,371 2,110
--------- --------- --------- ---------
Noninterest Expense
Salaries and Employee
Benefits 4,403 4,542 4,403 4,542
Occupancy and Equipment 1,007 1,001 1,007 1,001
Other 2,347 2,366 2,347 2,366
--------- --------- --------- ---------
7,757 7,909 7,757 7,909
--------- --------- --------- ---------
Income Before Income Taxes 3,148 3,738 3,148 3,738
Income Taxes 935 1,264 935 1,264
--------- --------- --------- ---------
Net Income $2,213 $2,474 $2,213 $2,474
========= ========= ========= =========
Net Income Per Share of
Common Stock
Basic $0.31 $0.34 $0.31 $0.34
========= ========= ========= =========
Diluted $0.31 $0.34 $0.31 $0.34
========= ========= ========= =========
Weighted Average Basic
Shares Outstanding 7,191,861 7,181,568 7,191,861 7,181,568
========= ========= ========= =========
Weighted Average Diluted
Shares Outstanding 7,191,861 7,194,741 7,191,861 7,194,741
========= ========= ========= =========