FITZGERALD, Ga., Oct. 23, 2014 (GLOBE NEWSWIRE) -- Colony Bankcorp, Inc. (Nasdaq:CBAN), today reported net income available to shareholders of $1,384,000, or $0.16 per diluted share for the third quarter of 2014 compared to $701,000, or $0.08 per diluted share for the comparable 2013 period, while net income available to shareholders for nine months ended September 30, 2014 was $3,533,000, or $0.42 per diluted share compared to $1,879,000, or $0.22 per share for the comparable 2013 period. This increase of 88.03 percent in net income for the comparable nine month period was primarily driven by a reduction in provision for loan losses, an increase in net interest income and an increase in noninterest income. "While we are pleased to report solid earnings for the second consecutive quarter, of particular significance is continued progress with our non-performing assets. Total non-performing assets were $24.01 million at September 30, 2014 which is a 23.99 percent reduction from the previous quarter end of $31.59 million. Substandard assets to tier one capital plus loan loss reserve now stands at 30.23 percent – down from the peak level of 98.52 percent in 2011," said Ed Loomis, President and Chief Executive Officer. "With strong regulatory capital, improved earnings and asset quality improvement, Colony is poised for sustained profitability and long-term success."
Capital
Colony continues to maintain a strong regulatory capital position to be categorized as "well-capitalized" by regulatory benchmarks. At September 30, 2014, the Company's tier one leverage ratio, tier one and total risk-based capital ratios were 11.01 percent, 16.51 percent and 17.76 percent, respectively, compared to 10.57 percent, 15.81 percent and 17.06 percent, respectively, at December 31, 2013 and to 10.40 percent, 15.40 percent and 16.66 percent, respectively, at September 30, 2013. 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 third quarter of 2014, the Company reported net interest income of $9.74 million and a net interest margin of 3.73 percent compared to $9.49 million and 3.67 percent, respectively, for third quarter 2013, while net interest income for nine months ended September 30, 2014 was $28.46 million and a net interest margin of 3.60 percent compared to $28.00 million and 3.59 percent, respectively, for the comparable 2013 period. Though the low interest rate environment continues to be challenging for the banking industry, the company continues to focus on maximizing its net interest margin through deposit and loan pricing guidance and balance sheet restructuring.
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 $43.49 million at September 30, 2014 compared to $53.41 million and $55.39 million, respectively, at December 31, 2013 and September 30, 2013. Substandard assets adjusted for SBA guarantees to tier one capital plus loan loss reserve ratio was 30.23%, 38.18% and 40.94%, respectively, at September 30, 2014, December 31, 2013 and September 30, 2013. Non-performing assets decreased significantly from the previous quarter end to $24.01 million or 3.18 percent of total loans and other real estate owned as of September 30, 2014. This compares to $39.61 million or 5.17 percent and $40.64 million or 5.32 percent, respectively, as of December 31, 2013 and September 30, 2013. Loan loss reserve methodology resulted in three months ended September 30, 2014 provision for loan losses of $0.50 million compared to $1.50 million for the comparable 2013 period, while in nine months ended September 30, 2014 the provision for loan losses was $1.31 million compared to $4.2 million for the comparable 2013 period. With continued stabilization in the economy, we expect continued improvement in our substandard assets.
Other real estate ("OREO") totaled $10.83 million at September 30, 2014 compared to $15.50 million and $16.11 million, respectively, at December 31, 2013 and September 30, 2013. We continue to devote much time and effort in reducing our level of OREO properties and the current balance is at the lowest level in a number of quarters. 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 third quarter of 2014 net charge-offs were $1.18 million, or 0.16 percent of average loans as compared to net charge-offs of $1.51 million, or 0.20 percent of average loans in third quarter 2013, while net charge-offs for nine months ended September 30, 2014 were $3.33 million, or 0.45 percent of average loans as compared to net charge-offs of $3.99 million, or 0.54 percent of average loans for the comparable 2013 period. The loan loss reserve was $9.79 million on September 30, 2014, or 1.32 percent of total loans compared to $11.81 million, or 1.57 percent on December 31, 2013 and to $12.95 million, or 1.73 percent on September 30, 2013. Management believes that the 2014 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 September 30, 2014.
Noninterest Income
Total noninterest income increased in the comparable periods as noninterest income for nine months ended September 30, 2014 was $6.72 million compared to $6.36 million in the comparable 2013 period, or an increase of 5.65 percent. The significant increase was debit card interchange fees and ATM fees increasing $514 thousand, or 41.32 percent. Offsetting the increase was service charge fee income on deposit accounts decreasing $115 thousand, or 3.30 percent, mortgage fee income decreasing $66 thousand, or 17.51 percent and gains on the sale of SBA/USDA loans decreasing $352 thousand, or 100.00 percent.
Noninterest Expense
Total noninterest expense remained relatively flat as noninterest expense for nine months ended September 30, 2014 was $25.69 million compared to $25.62 million for the comparable 2013 period, or an increase of 0.28 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 $1.82 million in nine months ended September 30, 2014 compared to $2.60 million in the comparable 2013 period, or a decrease of 30.00 percent. Salaries and employee benefit expenses increased to $13.15 million in nine months ended September 30, 2014 compared to $12.50 million in the comparable 2013 period, or an increase of 5.23 percent. Occupancy expenses increased to $3.07 million in the nine month period ended September 30, 2014 compared to $2.84 million in the comparable 2013 period, or an increase of 7.99 percent. Other noninterest expense decreased to $9.47 million compared to $10.28 million, or a decrease of 7.86 percent. A significant reduction in noninterest expense is FDIC insurance assessment which has decreased to $731 thousand in 2014 from $1.10 million from the comparable 2013 period, or 33.36 percent.
Colony Bankcorp, Inc. is a bank holding company headquartered in Fitzgerald, Georgia that consists of one operating subsidiary, Colony Bank. Colony Bank conducts a general full service commercial, consumer and mortgage banking business through twenty-nine 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 | 09/30/14 | 09/30/13 | 09/30/14 | 09/30/13 |
| Net Interest Income | $9,738 | $9,494 | $28,460 | 27,995 |
| Provision for Loan Losses | 500 | 1,500 | 1,308 | 4,200 |
| Non-interest Income | 2,410 | 2,109 | 6,718 | 6,359 |
| Non-interest Expense | 8,534 | 8,488 | 25,691 | 25,619 |
| Income Taxes | 1,033 | 535 | 2,625 | 1,532 |
| Net Income | 2,081 | 1,080 | 5,554 | 3,003 |
| Preferred Stock Dividend | 697 | 379 | 2,021 | 1,124 |
| Net Income Available to | ||||
| Common Shareholders | 1,384 | 701 | 3,533 | 1,879 |
| QUARTER ENDED | YEAR-TO-DATE | |||
| PER COMMON SHARE SUMMARY | 09/30/14 | 09/30/13 | 09/30/14 | 09/30/13 |
| 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) | $0.16 | $0.08 | $0.42 | $0.22 |
| Earnings Per Diluted Share (b) | $0.16 | $0.08 | $0.42 | $0.22 |
| Common Book Value Per Share | $8.09 | $7.45 | $8.09 | $7.45 |
| Tangible Common Book Value Per Share | $8.07 | $7.43 | $8.07 | $7.43 |
| QUARTER ENDED | YEAR-TO-DATE | |||
| OPERATING RATIOS (1) | 09/30/14 | 09/30/13 | 09/30/14 | 09/30/13 |
| Net Interest Margin (a) | 3.73% | 3.67% | 3.60% | 3.59% |
| Return on Average Assets (b) | 0.49% | 0.25% | 0.42% | 0.22% |
| Return on Average Total Equity (b) | 5.78% | 3.09% | 5.02% | 2.67% |
| Efficiency (c) | 70.08% | 72.88% | 72.85% | 74.30% |
| (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 | 09/30/14 | 09/30/13 | ||
| Total Assets | $1,114,414 | $1,113,141 | ||
| Loans, Net of Reserves | 733,139 | 734,792 | ||
| Allowance for Loan Losses | 9,788 | 12,951 | ||
| Intangible Assets | 161 | 197 | ||
| Deposits | 941,200 | 949,463 | ||
| Common Shareholders' Equity | 68,272 | 62,859 | ||
| Common Equity to Total Assets | 6.13% | 5.65% | ||
| Total Equity | 96,272 | 90,815 | ||
| Total Equity to Total Assets | 8.64% | 8.16% | ||
| QUARTER ENDED | YEAR-TO-DATE | |||
| AVERAGE BALANCES | 09/30/14 | 09/30/13 | 09/30/14 | 09/30/13 |
| Total Assets | $1,118,848 | $1,106,631 | $1,126,625 | $1,113,632 |
| Loans, Net of Reserves | 728,146 | 733,479 | 728,570 | 728,160 |
| Deposits | 946,255 | 941,698 | 958,728 | 948,882 |
| Common Shareholders' Equity | 67,806 | 62,918 | 65,773 | 66,092 |
| Total Equity | 95,806 | 90,852 | 93,773 | 93,983 |
| QUARTER ENDED | YEAR-TO-DATE | |||
| ASSET QUALITY | 09/30/14 | 09/30/13 | 09/30/14 | 09/30/13 |
| Nonperforming Loans | $13,178 | $24,165 | $13,178 | $24,165 |
| Nonperforming Assets | 24,011 | 40,638 | 24,011 | 40,638 |
| Substandard Assets | 43,494 | 55,391 | 43,494 | 55,391 |
| Net Loan Chg-offs (Recoveries) | 1,182 | 1,506 | 3,326 | 3,986 |
| Reserve for Loan Loss to Total Loans | 1.32% | 1.73% | 1.32% | 1.73% |
| Reserve for Loan Loss to Non- performing Loans | 74.28% | 53.59% | 74.28% | 53.59% |
| Reserve for Loan Loss to Non-performing Assets | 40.76% | 31.87% | 40.76% | 31.87% |
| Net Loan Chg-offs (Recoveries) to Avg. Total Loans | 0.16% | 0.20% | 0.45% | 0.54% |
| Nonperforming Loans to Total Loans | 1.77% | 3.23% | 1.77% | 3.23% |
| Nonperforming Assets to Total Assets | 2.15% | 3.65% | 2.15% | 3.65% |
| Nonperforming Assets to Total Loans And Other Real Estate | 3.18% | 5.32% | 3.18% | 5.32% |
| Substandard Assets to Tier One Capital and Allowance for Loan Losses | 30.23% | 40.94% | 30.23% | 40.94% |
| Quarterly Comparative Data (in thousands, except per share data) | |||||
| 3Q2014 | 2Q2014 | 1Q2014 | 4Q2013 | 3Q2013 | |
| Assets | $1,114,414 | $1,118,382 | $1,141,836 | $1,148,551 | $1,113,141 |
| Loans | 733,139 | 724,939 | 726,125 | 739,052 | 734,792 |
| Deposits | 941,200 | 948,269 | 976,854 | 987,529 | 949,463 |
| Common Shareholders' Equity | 68,272 | 67,210 | 64,348 | 61,954 | 62,859 |
| Total Equity | 96,272 | 95,210 | 92,348 | 89,954 | 90,815 |
| Net Income | 2,081 | 2,016 | 1,457 | 1,626 | 1,080 |
| Net Income Available to Common Shareholders | 1,384 | 1,335 | 814 | 1,241 | 701 |
| Net Income Per Share | 0.16 | 0.16 | 0.10 | 0.15 | 0.08 |
| Key Performance Ratios | 3Q2014 | 2Q2014 | 1Q2014 | 4Q2013 | 3Q2013 |
| Return on Average Assets (1) | 0.49% | 0.47% | 0.29% | 0.44% | 0.25% |
| Return on Average Total Equity (1) | 5.78% | 5.69% | 3.55% | 5.43% | 3.09% |
| Common Equity to Total Assets | 6.13% | 6.01% | 5.64% | 5.38% | 5.65% |
| Total Equity to Total Assets | 8.64% | 8.51% | 8.09% | 7.81% | 8.16% |
| Net Interest Margin | 3.73% | 3.61% | 3.47% | 3.68% | 3.67% |
| (1) Computed using net income available to shareholders | |||||
| Consolidated Balance Sheets Colony Bankcorp, Inc. | |||
| (in thousands) | |||
| Sept. 30, 2014 | Dec. 31, 2013 | Sept. 30, 2013 | |
| (unaudited) | (audited) | (unaudited) | |
| ASSETS | |||
| Cash and Cash Equivalents | |||
| Cash and Due from Banks | $17,120 | $25,692 | $19,033 |
| Federal Funds Sold | 6,712 | 20,495 | 18,526 |
| 23,832 | 46,187 | 37,559 | |
| Interest-Bearing Deposits | 10,682 | 21,960 | 4,117 |
| Investment Securities | |||
| Available for Sale, at Fair Value | 273,547 | 263,258 | 257,354 |
| Held for Maturity, at Cost (Fair Value of $33, $37 and $38 as of Sept. 30, 2014, Dec. 31, 2013, and Sept. 30, 2013, Respectively) | 33 | 37 | 39 |
| 273,580 | 263,295 | 257,393 | |
| Federal Home Loan Bank Stock, at Cost | 2,831 | 3,164 | 3,164 |
| Loans | 743,281 | 751,218 | 748,044 |
| Allowance for Loan Losses | (9,788) | (11,806) | (12,951) |
| Unearned Interest and Fees | (354) | (360) | (301) |
| 733,139 | 739,052 | 734,792 | |
| Premises and Equipment | 24,976 | 24,876 | 24,833 |
| Other Real Estate | 10,833 | 15,502 | 16,106 |
| Other Intangible Assets | 161 | 188 | 197 |
| Other Assets | 34,380 | 34,327 | 34,980 |
| Total Assets | $1,114,414 | $1,148,551 | $1,113,141 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||
| Deposits | |||
| Noninterest-Bearing | $116,131 | $115,261 | $110,870 |
| Interest-Bearing | 825,069 | 872,269 | 838,593 |
| 941,200 | 987,530 | 949,463 | |
| Borrowed Money | |||
| Subordinated Debentures | 24,229 | 24,229 | 24,229 |
| Other Borrowed Money | 40,000 | 40,000 | 40,000 |
| 64,229 | 64,229 | 64,229 | |
| Other Liabilities | 12,713 | 6,838 | 8,634 |
| Stockholders' Equity | |||
| Preferred Stock, Stated Value $1,000 a Share; Authorized 10,000,000 Shares, Issued 28,000 Shares | 28,000 | 28,000 | 27,956 |
| Common Stock, Par Value $1 a share; Authorized 20,000,000 Shares, Issued 8,439,258 Shares as of Sept. 30, 2014, Dec. 31, 2013 and Sept. 30, 2013, Respectively | 8,439 | 8,439 | 8,439 |
| Paid in Capital | 29,145 | 29,145 | 29,145 |
| Retained Earnings | 36,978 | 33,445 | 32,248 |
| Accumulated Other Comprehensive Loss, Net of Tax | (6,290) | (9,075) | (6,973) |
| 96,272 | 89,954 | 90,815 | |
| Total Liabilities and Stockholders' Equity | $1,114,414 | $1,148,551 | $1,113,141 |
| Consolidated Statements of Income Colony Bankcorp, Inc. | ||||
| (in thousands except per share data) | ||||
| Quarter | Year-to-Date | |||
| Three Months Ended | Nine Months Ended | |||
| 09/30/14 | 09/30/13 | 09/30/14 | 09/30/13 | |
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |
| Interest Income | ||||
| Loans, Including Fees | $10,170 | $10,303 | $29,815 | $31,023 |
| Federal Funds Sold | 6 | 7 | 23 | 27 |
| Deposits with Other Banks | 9 | 5 | 32 | 21 |
| Investment Securities | ||||
| U. S. Government Agencies | 1,165 | 880 | 3,574 | 2,454 |
| State, County and Municipal | 24 | 30 | 75 | 94 |
| Corporate Obligations/Asset-Backed Sec. | -- | 14 | -- | 42 |
| Dividends on Other Investments | 26 | 21 | 85 | 59 |
| 11,400 | 11,260 | 33,604 | 33,720 | |
| Interest Expense | ||||
| Deposits | 1,260 | 1,361 | 3,869 | 4,452 |
| Borrowed Money | 402 | 405 | 1,275 | 1,273 |
| 1,662 | 1,766 | 5,144 | 5,725 | |
| Net Interest Income | 9,738 | 9,494 | 28,460 | 27,995 |
| Provision for Loan Losses | 500 | 1,500 | 1,308 | 4,200 |
| Net Interest Income After Provision for Loan Losses | 9,238 | 7,994 | 27,152 | 23,795 |
| Noninterest Income | ||||
| Service Charges on Deposits | 1,231 | 1,236 | 3,369 | 3,484 |
| Other Service Charges, Commissions and Fees | 622 | 442 | 1,842 | 1,289 |
| Mortgage Fee Income | 130 | 117 | 311 | 377 |
| Securities Gains (Losses) | -- | -- | 1 | (2) |
| Other | 427 | 314 | 1,195 | 1,211 |
| 2,410 | 2,109 | 6,718 | 6,359 | |
| Noninterest Expense | ||||
| Salaries and Employee Benefits | 4,432 | 4,178 | 13,149 | 12,496 |
| Occupancy and Equipment | 1,049 | 974 | 3,069 | 2,842 |
| Other | 3,053 | 3,336 | 9,473 | 10,281 |
| 8,534 | 8,488 | 25,691 | 25,619 | |
| Income Before Income Taxes | 3,114 | 1,615 | 8,179 | 4,535 |
| Income Taxes | 1,033 | 535 | 2,625 | 1,532 |
| Net Income | 2,081 | 1,080 | 5,554 | 3,003 |
| Preferred Stock Dividends | 697 | 379 | 2,021 | 1,124 |
| Net Income Available to Common Shareholders | $1,384 | $701 | $3,533 | $1,879 |
| Net Income Per Share of Common Stock | ||||
| Basic | $0.16 | $0.08 | $0.42 | $0.22 |
| Diluted | $0.16 | $0.08 | $0.42 | $0.22 |
| 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 |