Colony Bankcorp, Inc. Announces First Quarter Results

        Print
| Source: Colony Bankcorp, Inc.

FITZGERALD, Ga., April 19, 2013 (GLOBE NEWSWIRE) -- Colony Bankcorp, Inc. (Nasdaq:CBAN), today reported net income available to shareholders of $567,000, or $0.07 per diluted share for the first quarter of 2013 compared to net income available to shareholders of $189,000, or $0.02 per diluted share for the comparable 2012 period. This reflects an increase of 200 percent for the comparable periods and was primarily driven by an increase in net interest income and noninterest income - along with a reduction in provision for loan losses. "First quarter was another positive quarter and reflected solid results in building on the momentum carrying over from 2012. In addition to improved earnings, we achieved significant improvement in asset quality. Non-performing assets decreased to $39.58 million at March 31, 2013 from $46.16 million at December 31, 2012, or a decrease of 14.25 percent, while the substandard assets to tier one capital plus loan loss allowance ratio improved to 45.85 percent at March 31, 2013 from 55.60 percent at December 31, 2012. Though improvement was once again realized this quarter, we still have much work ahead to meet our goals of reducing our problem assets to an acceptable level and returning to acceptable earnings. Our board, management and staff remain committed to making incremental progress toward these goals during 2013," said Ed Loomis, President and Chief Executive Officer. "This will be an interesting and challenging year in the banking industry as we continue to address a less than robust economy and interest rates at historically low levels. Continued efforts to strengthen our balance sheet by reducing the level of problem assets along with loan growth, margin improvement and revenue enhancement initiatives will further position our company for sustained profitability and long-term success."

Capital

Colony continues to maintain a strong capital position to be categorized as "well-capitalized" by regulatory benchmarks. At March 31, 2013, the Company's tier one leverage ratio, tier one and total risk-based capital ratios were 10.18 percent, 15.60 percent and 16.86 percent, respectively, compared to the previous quarter end of 10.22 percent, 15.22 percent and 16.47 percent, respectively, at December 31, 2012 and to 9.38 percent, 15.73 percent and 16.99 percent, respectively, at March 31, 2012. Regulatory benchmarks to be categorized as "well-capitalized" for tier one leverage ratio, tier one and total risk-based capital ratios are 5.00 percent, 6.00 percent and 10.00 percent, respectively.

Net Interest Margin

During the first quarter of 2013, the Company reported net interest income of $9.05 million and a net interest margin of 3.45 percent, compared to $8.88 million and 3.23 percent, respectively, for first quarter 2012. The improvement is indicative of the Company's focus on maximizing its net interest margin through deposit and loan pricing guidance and balance sheet restructuring. Anticipated loan growth along with pricing discipline should result in stable to slight net interest margin improvement in 2013.

Asset Quality

The Company continues to closely monitor our substandard and non-performing assets and focus on problem asset resolution. Substandard assets that include non-performing assets totaled $61.91 million at March 31, 2013 compared to $74.57 million and $92.99 million, respectively, at December 31, 2012 and March 31, 2012. Substandard assets adjusted for SBA guarantees to tier one capital plus loan loss reserve ratio was 45.85%, 55.60% and 72.25%, respectively, at March 31, 2013, December 31, 2012 and March 31, 2012. Though much work remains to reduce substandard assets, improvement in these ratios reflects solid work in addressing and bringing resolution to substandard assets. Non-performing assets decreased from the previous quarter end to $39.58 million or 5.24 percent of total loans and other real estate owned as of March 31, 2013. This compares to $46.16 million or 6.05 percent and $60.72 million or 8.35 percent, respectively, as of December 31, 2012 and March 31, 2012. Loan loss reserve methodology resulted in three months ended March 31, 2013 provision for loan losses of $1.50 million compared to $1.94 million for the comparable 2012 period. As we begin to see stabilization in the economy and the housing and real estate market, we expect continued improvement in our substandard assets.

Other real estate ("OREO") totaled $18.77 million at March 31, 2013 compared to $15.94 million at December 31, 2012. During this period, $5.28 million has been added to OREO, thus a reduction from sales and/or write-downs of $2.45 million. One large loan approximating $3 million tied up in bankruptcy for a number of months finally worked through the court system and triggered the increase in OREO property in the first quarter. An auction conducted in late March will result in a reduction of approximately $1.3 million of the OREO balance upon consummation of the sales contracts. Colony has established a target of twelve months to liquidate improved properties due to the high carrying cost of taxes, insurance, maintenance and repairs associated with holding these properties on our books.

In the first quarter of 2013 net charge-offs were $1.31 million, or 0.18 percent of average loans as compared to net charge-offs of $1.68 million, or 0.24 percent of average loans in first quarter 2012. The loan loss reserve was $12.93 million on March 31, 2013, or 1.76 percent of total loans compared to $12.74 million, or 1.70 percent on December 31, 2012 and to $15.91 million, or 2.25 percent on March 31, 2012. Management believes that the 2013 contributions to Allowance for Loan Losses address the level of non-performing assets and the related level of substandard assets to be adequately reserved at March 31, 2013.

Noninterest Income

Total noninterest income increased in the comparable periods as noninterest income for three months ended March 31, 2013 was $2.22 million compared to $1.81 million in the comparable 2012 period, or an increase of 22.27 percent. Service charge fee income on deposit accounts increased $305 thousand, or 38.32 percent. Mortgage fee income increased $38 thousand, or 46.91 percent and gains on the sale of SBA/USDA loans increased $247 thousand, or 235.24 percent. The company continues to explore revenue enhancement products and services to improve fee income.

Noninterest Expense

Total noninterest expense increased to $8.40 million in three months ended March 31, 2013 compared to $7.98 million in the comparable 2012 period, or an increase of 5.26 percent. Credit-related expenses continue to be a strain on earnings as write down and losses on OREO property and repossessed assets along with repossession and foreclosure expenses totaled $700 thousand in three months ended March 31, 2013 compared to $763 thousand in the comparable 2012 period. Salaries and employee benefit expenses increased to $4.17 million in three months ended March 31, 2013 compared to $3.82 million in the comparable 2012 period, or an increase of 9.14 percent. This increase is primarily attributable to an increase in headcount related to additional "back-office" regulatory compliance demands along with merit pay increases. Occupancy expenses remained flat in the comparable periods. Other noninterest expense increased to $3.29 million compared to $3.23 million, or an increase of 2.02 percent.

Colony Bankcorp, Inc. is a bank holding company headquartered in Fitzgerald, Georgia that consists of one operating subsidiary, Colony Bank. The Company conducts a general full service commercial, consumer and mortgage banking business through twenty eight offices located in the central, southern and coastal Georgia cities of Albany, Ashburn, Broxton, Centerville, Chester, Columbus, Cordele, Douglas, Eastman, Fitzgerald, Leesburg, Moultrie, Pitts, Quitman, Rochelle, Savannah, Soperton, Sylvester, Thomaston, Tifton, Valdosta and Warner Robins, Georgia.

Colony Bankcorp, Inc. Common Stock is quoted on the NASDAQ Global 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   03/31/13 03/31/12  03/31/13 03/31/12
Net Interest Income  $9,046 $8,884 $9,046 $8,884
Provision for Loan Losses  1,500 1,942 1,500 1,942
Non-interest Income  2,218 1,814 2,218 1,814
Non-interest Expense  8,400 7,983 8,400 7,983
Income Taxes  427 232 427 232
Net Income  937 541 937 541
Preferred Stock Dividend  370 352 370 352
Net Income Available to Common Shareholders  567 189 567 189
         
  QUARTER ENDED  YEAR-TO-DATE
 PER COMMON SHARE SUMMARY  03/31/13 03/31/12  03/31/13 03/31/12
Common Shares Outstanding  8,439,258 8,439,258 8,439,258 8,439,258
Weighted Average Basic Shares  8,439,258 8,439,258 8,439,258 8,439,258
Weighted Average Diluted Shares  8,439,258 8,439,258 8,439,258 8,439,258
Earnings Per Basic Share (b)  $0.07 $0.02 $0.07 $0.02
Earnings Per Diluted Share (b)  $0.07 $0.02 $0.07 $0.02
Common Book Value Per Share  $8.01 $8.23 $8.01 $8.23
Tangible Common Book Value Per Share $7.98 $8.20 $7.98 $8.20
         
  QUARTER ENDED  YEAR-TO-DATE 
 OPERATING RATIOS (1)   03/31/13  03/31/12  03/31/13 03/31/12
Net Interest Margin (a)  3.45% 3.23% 3.45% 3.23%
Return on Average Assets (b)  0.20% 0.06% 0.20% 0.06%
Return on Average Total Equity (b)  2.37% 0.78% 2.37% 0.78%
Efficiency (c)  74.24% 75.35% 74.24% 75.35%
         
(1)  Annualized
(a) Computed using fully taxable-equivalent net income
(b) Computed using net income available to shareholders
(c ) Computed by dividing non-interest expense by the sum of fully taxable-equivalent net interest income and non-interest income and excluding security gains/losses. 
         
         
  QUARTER ENDED     
 ENDING BALANCES   03/31/13  03/31/12    
Total Assets  $1,118,865 $1,176,644    
Loans, Net of Reserves  723,651 690,533    
Allowance for Loan Losses  12,930 15,910    
Intangible Assets  215 250    
Deposits  953,575 994,014    
Common Shareholders' Equity 67,567 69,422    
Common Equity to Total Assets 6.04% 5.90%    
Total Equity  95,437 97,125    
Total Equity to Total Assets  8.53% 8.25%    
         
  QUARTER ENDED  YEAR-TO-DATE 
 AVERAGE BALANCES   03/31/13  03/31/12  03/31/13  03/31/12
Total Assets  $1,124,406 $1,181,582 $1,124,406 $1,181,582
Loans, Net of Reserves  723,605 692,439 723,605 692,439
Deposits  964,807 992,606 964,807 992,606
Common Shareholders' Equity 67,734 68,848 67,734 68,848
Total Equity  95,580 96,528 95,580 96,528
         
  QUARTER ENDED  YEAR-TO-DATE 
 ASSET QUALITY   03/31/13 03/31/12  03/31/13 03/31/12
Nonperforming Loans  $20,439 $39,367 $20,439 $39,367
Nonperforming Assets  39,577 60,722 39,577 60,722
Substandard Assets  61,912 92,993 61,912 92,993
Net Loan Chg-offs (Recoveries)  1,307 1,682 1,307 1,682
Reserve for Loan Loss to Total Loans  1.76% 2.25% 1.76% 2.25%
Reserve for Loan Loss to Non-performing Loans  63.26% 40.41% 63.26% 40.41%
Reserve for Loan Loss to Non-performing Assets  32.67% 26.30% 32.67% 26.30%
Net Loan Chg-offs (Recoveries) to Avg. Total Loans  0.18% 0.24% 0.18% 0.24%
Nonperforming Loans to Total Loans  2.77% 5.57% 2.77% 5.57%
Nonperforming Assets to Total Assets  3.54% 5.16% 3.54% 5.16%
Nonperforming Assets to Total Loans And Other Real Estate  5.24% 8.35% 5.24% 8.35%
Substandard Assets to Tier One Capital and Allowance for Loan Losses  45.85% 72.25% 45.85% 72.25%
           
           
Quarterly Comparative Data (in thousands, except per share data)
  1Q2013 4Q2012 3Q2012 2Q2012 1Q2012
Assets  $1,118,865 $1,139,397 $1,097,437 $1,133,170 $1,176,644
Loans  723,651 734,079 711,971 700,917 690,533
Deposits  953,575 979,685 941,204 972,135 994,014
Common Shareholders' Equity  67,567 67,932 68,584 69,265 69,422
Total Equity  95,437 95,759 96,369 97,009 97,125
Net Income  937 568 772 760 541
Net Income Available to Common Shareholders  567 203 411 403 189
 Net Income Per Share  0.07 0.02 0.05 0.05 0.02
           
Key Performance Ratios   1Q2013   4Q2012   3Q2012   2Q2012   1Q2012 
           
Return on Average Assets (1)  0.20% 0.07% 0.15% 0.14% 0.06%
Return on Average Total Equity (1)  2.37% 0.85% 1.69% 1.66% 0.78%
Common Equity to Total Assets  6.04% 5.96% 6.25% 6.11% 5.90%
Total Equity to Total Assets  8.53% 8.40% 8.78% 8.56% 8.25%
Net Interest Margin  3.45% 3.49% 3.56% 3.39% 3.23%
(1) Computed using net income available to shareholders 
       
       
Consolidated Balance Sheets Colony Bankcorp, Inc.
 (in thousands)      
       
  Mar. 31, 2013  Dec. 31, 2012 Mar. 31, 2012
   (unaudited)   (audited)   (unaudited)
ASSETS      
Cash and Cash Equivalents       
Cash and Due from Banks  $18,608 $29,244 $18,055
Federal Funds Sold  10,966 20,002 29,770
  29,574 49,246 47,825
Interest-Bearing Deposits  8,706 21,795 28,051
Investment Securities      
Available for Sale, at Fair Value  288,249 268,301 333,608
Held for Maturity, at Cost (Fair Value of $43, $42 and $48 as of Mar. 31, 2013, Dec. 31, 2012 and Mar. 31, 2012, Respectively)  43 41 47
  288,292 268,342 333,655
Federal Home Loan Bank Stock, at Cost  3,164 3,364 5,398
Loans  736,820 747,050 706,513
Allowance for Loan Losses  (12,930) (12,737) (15,910)
Unearned Interest and Fees  (239) (234) (70)
  723,651 734,079 690,533
Premises and Equipment  25,071 24,916 25,772
Other Real Estate  18,771 15,941 20,989
Other Intangible Assets  215 224 250
Other Assets  21,421 21,490 24,171
Total Assets  $1,118,865 $1,139,397 $1,176,644
       
LIABILITIES AND STOCKHOLDERS' EQUITY      
       
Deposits      
Noninterest-Bearing  $121,921 $123,967 $105,473
Interest-Bearing  831,654 855,718 888,541
  953,575 979,685 994,014
Borrowed Money       
Subordinated Debentures  24,229 24,229 24,229
Other Borrowed Money  40,000 35,000 57,500
  64,229 59,229 81,729
       
Other Liabilities  5,624 4,724 3,776
       
Stockholders' Equity      
Preferred Stock, Stated Value $1,000 a Share; Authorized 10,000,000 Shares, Issued 28,000 Shares 27,870 27,827 27,703
Common Stock, Par Value $1 a share; Authorized 20,000,000 Shares, Issued 8,439,258 Shares as of Mar. 31, 2013, Dec. 31, 2012 and Mar. 31, 2012, Respectively  8,439 8,439 8,439
Paid in Capital  29,145 29,145 29,145
Retained Earnings  31,022 30,498 29,604
Accumulated Other Comprehensive Loss, Net of Tax (1,039) (150) 2,234
  95,437 95,759 97,125
Total Liabilities and Stockholders' Equity  $1,118,865 $1,139,397 $1,176,644
         
         
Consolidated Statements of Income Colony Bankcorp, Inc.
 (in thousands except per share data) 
         
  Quarter Year-to-Date 
  Three Months Ended  Three Months Ended
   03/31/13   03/31/12   03/31/13   03/31/12
  (unaudited)   (unaudited)   (unaudited)  (unaudited)
Interest Income        
 Loans, Including Fees  $10,361 $10,420 $10,361 $10,420
 Federal Funds Sold  14 26 14 26
Deposits with Other Banks  11 20 11 20
Investment Securities         
 U. S. Government Agencies  712 1,618 712 1,618
 State, County and Municipal  33 66 33 66
 Corporate Obligations/Asset-Backed Sec.  14 24 14 24
Dividends on Other Investments  19 17 19 17
  11,164 12,191 11,164 12,191
Interest Expense       
 Deposits  1,686 2,470 1,686 2,470
 Borrowed Money  432 837 432 837
  2,118 3,307 2,118 3,307
Net Interest Income  9,046 8,884 9,046 8,884
 Provision for Loan Losses  1,500 1,942 1,500 1,942
Net Interest Income After Provision for Loan Losses  7,546 6,942 7,546 6,942
         
Noninterest Income        
 Service Charges on Deposits  1,101 796 1,101 796
 Other Service Charges, Commissions and Fees  404 419 404 419
 Mortgage Fee Income  119 81 119 81
 Securities Gains   --  137  --  137
 Other  594 381 594 381
  2,218 1,814 2,218 1,814
Noninterest Expense        
 Salaries and Employee Benefits  4,169 3,820 4,169 3,820
 Occupancy and Equipment  933 938 933 938
 Securities Losses  8  --  8  --
 Other  3,290 3,225 3,290 3,225
  8,400 7,983 8,400 7,983
         
Income Before Income Taxes  1,364 773 1,364 773
Income Taxes  427 232 427 232
Net Income  937 541 937 541
         
Preferred Stock Dividends  370 352 370 352
         
Net Income Available to Common Shareholders  $567 $189 $567 $189
Net Income Per Share of Common Stock        
 Basic  $0.07 $0.02 $0.07 $0.02
 Diluted  $0.07 $0.02 $0.07 $0.02
Weighted Average Basic Shares Outstanding  8,439,258 8,439,258 8,439,258 8,439,258
Weighted Average Diluted Shares Outstanding  8,439,258 8,439,258 8,439,258 8,439,258
Terry L. Hester
Chief Financial Officer
(229) 426-6002