SOURCE: Colony Bankcorp, Inc.

April 27, 2007 08:00 ET

Colony Bankcorp, Inc. Announces First Quarter Results

FITZGERALD, GA -- (MARKET WIRE) -- April 27, 2007 -- Colony Bankcorp, Inc. (NASDAQ: CBAN) today reported quarterly net income of $2,474,000 for the first quarter of 2007, up 7.15 percent from first quarter 2006 net income of $2,309,000. Diluted earnings per share for the first quarter of 2007 were $0.34 per share compared to $0.32 per share for the same year ago period or an increase of 6.25 percent. Earnings per share were negatively impacted $0.02 per share during first quarter 2007 when the Company refinanced $9 million in trust preferred securities and had to expense unamortized loan placement fees on the original issuance. Though the Company incurred after-tax expense of approximately $121 thousand on the unamortized loan placement fees, the Company will realize annual interest savings on the thirty year instrument of approximately $115 thousand (after-tax). This will allow the Company to recoup the unamortized loan placement fees expense in twelve months while also realizing the annual interest savings over the remaining twenty-nine year term. Annualized return on assets for the quarter was 0.82 percent and return on equity was 12.76 percent, compared to 0.83 percent and 13.39 percent for the same year ago period, respectively. Due to the inverted yield curve and sluggish first quarter loan activity, net interest margin was 3.70 percent for first quarter 2007 compared to 3.80 percent for first quarter 2006.

Total assets increased 4.04 percent to $1,191,407,000 on March 31, 2007 from $1,145,186,000 a year ago. Net loans increased 4.09 percent to $917,984,000 on March 31, 2007 from $881,897,000 a year ago. Total deposits increased 5.13 percent to $1,024,632,000 on March 31, 2007 from $974,672,000 a year ago. Shareholders' equity on March 31, 2007 was $78,553,000 and equaled 6.59 percent of total assets.

The company's focus on credit quality resulted in significant improvement during first quarter 2007 as the ratio of non-performing assets to loans and other real estate on March 31, 2007 was 0.86 percent as compared to 1.22 percent on March 31, 2006 and 0.96 percent on December 31, 2006. Total nonperforming assets decreased $1,009,000 to $8,039,000 on March 31, 2007 from $9,048,000 on December 31, 2006, or a decrease of 11.15 percent. The first quarter 2007 provision for loan losses were $914,000 compared to $922,000 for the same period in 2006. Net charge-offs for the quarter were 0.08 percent of average loans, down from 0.11 percent for the first quarter of 2006. The loan loss reserve of $12,170,000 on March 31, 2007 was 1.31 percent of total loans, which provided coverage of 187.92 percent of non-performing loans and 151.39 percent of non-performing assets, compared to 122.08 percent and 98.31 percent on March 31, 2006, respectively.

During the quarter the board of directors increased the quarterly cash dividend to $0.0875 per share compared to $0.085 per share in the fourth quarter of 2006 and to the cash dividend of $0.0775 per share in the first quarter of 2006. The first quarter dividend payment represents an increase of 12.90 percent over the dividend payment in first 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      03/31/07    03/31/06     03/31/07    03/31/06
                            --------    --------     --------    --------
Net Interest Income          $10,451      $9,933      $10,451      $9,933
Provision for Loan Losses        914         922          914         922
Non-interest Income            2,110       1,608        2,110       1,608
Non-interest Expense           7,909       7,087        7,909       7,087
Income Taxes                   1,264       1,223        1,264       1,223
Net Income                     2,474       2,309        2,474       2,309
Operating Income               2,353       2,309        2,353       2,309



                             COLONY BANKCORP, INC.
                       FINANCIAL HIGHLIGHTS (UNAUDITED)
                 DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA


                               QUARTER ENDED            YEAR-TO-DATE
     PER SHARE SUMMARY      03/31/07    03/31/06     03/31/07    03/31/06
                            --------    --------     --------    --------
Common Shares Outstanding  7,204,775   7,190,735    7,204,775   7,190,735
Weighted Average Diluted
 Shares                    7,194,741   7,172,669    7,194,741   7,172,669
Net Income Per Weighted
 Average Diluted Shares        $0.34       $0.32        $0.34       $0.32
Operating Income Per
 Weighted Average
 Diluted Shares                $0.33       $0.32        $0.33       $0.32
Dividends Declared
 Per Share                   $0.0875     $0.0775      $0.0875     $0.0775



                                 QUARTER ENDED            YEAR-TO-DATE
     OPERATING RATIOS (1)     03/31/07    03/31/06     03/31/07    03/31/06
                              --------    --------     --------    --------
Net Interest Margin (a)          3.70%       3.80%        3.70%       3.80%
Return on Average Assets
  Based on Net Income            0.82%       0.83%        0.82%       0.83%
Return on Average Assets
  Based on Operating Income      0.78%       0.83%        0.78%       0.83%
Return on Average Equity
  Based on Net Income           12.76%      13.39%       12.76%      13.39%
Return on Average Equity
  Based on Operating Income     12.13%      13.39%       12.13%      13.39%
Efficiency (b)                  62.57%      61.11%       62.57%      61.11%



                                             QUARTER ENDED
     ENDING BALANCES                    03/31/07       03/31/06
                                        --------       --------
Total Assets                          $1,191,407     $1,145,186
Loans Held for Sale                          335              -
Loans, Net of Reserves                   917,649        881,897
Allowance for Loan Losses                 12,170         10,760
Goodwill                                   2,412          2,412
Intangible Assets                            429            495
Deposits                               1,024,632        974,672
Stockholders' Equity                      78,553         69,625
Book Value Per Share                      $10.90          $9.68
Tangible Book Value Per Share             $10.51          $9.28
Shareholders' Equity to Total Assets        6.59%          6.08%
(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 and excluding
    any security gains/losses.


                                COLONY BANKCORP, INC
                         FINANCIAL HIGHLIGHTS (UNAUDITED)
                   DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA

                               QUARTER ENDED            YEAR-TO-DATE
    AVERAGE BALANCES       03/31/07     03/31/06     03/31/07     03/31/06
                           --------     --------     --------     --------
Total Assets              $1,204,804   $1,111,827  $1,204,804   $1,111,827
Loans, Net of Reserves       915,712      862,415     915,712      862,415
Deposits                   1,033,322      944,880   1,033,322      944,880
Stockholders' Equity          77,562       68,960      77,562       68,960

                               QUARTER ENDED          YEAR-TO-DATE
    ASSET QUALITY          03/31/07   03/31/06     03/31/07   03/31/06
                           --------   --------     --------   --------
Nonperforming Loans        $  6,476   $  8,814     $  6,476   $  8,814
Nonperforming Assets          8,039     10,945        8,039     10,945
Net Loan Chg-offs
(Recoveries)                    733        924          733        924
Reserve for Loan Loss
 to Gross Loans                1.31%      1.21%        1.31%      1.21%
Reserve for Loan Loss
 to Non-performing Loans     187.92%    122.08%      187.92%    122.08%
Reserve for Loan Loss
 to Non-performing Assets    151.39%     98.31%      151.39%     98.31%
Net Loan Chg-offs
 (Recoveries) to Avg.
 Gross Loans                   0.08%      0.11%        0.08%      0.11%
Nonperforming Loans
 to Gross Loans                0.70%      0.99%        0.70%      0.99%
Nonperforming Assets
 to Total Assets               0.67%      0.96%        0.67%      0.96%
Nonperforming Assets to
 Loans and Other Real Estate   0.86%      1.22%        0.86%      1.22%



Quarterly Comparative Data (in thousands, except per share data)

                     1Q2007      4Q2006      3Q2006      2Q2006      1Q2006

Assets           $1,191,407  $1,213,504  $1,186,382  $1,169,161  $1,145,186
Loans               917,984     929,783     926,332     900,781     881,897
Deposits          1,024,632   1,042,446   1,016,327   1,005,086     974,672
Equity               78,553      76,611      74,352      71,051      69,625
Net Income            2,474       2,611       2,622       2,610       2,309
Net Income Per
 Share (1)             0.34        0.36        0.36        0.36        0.32
Dividends Declared
 Per Share (1)       0.0875       0.085      0.0825        0.08      0.0775

Key Performance
 Ratios            1Q2007      4Q2006      3Q2006      2Q2006      1Q2006

Return on Assets     0.82%       0.87%       0.90%       0.90%       0.83%
Return on Equity    12.76%      13.83%      14.45%      14.80%      13.39%
Equity/Assets        6.59%       6.31%       6.27%       6.08%       6.08%
Net Interest Margin  3.70%       3.70%       3.93%       3.95%       3.80%


Consolidated Balance Sheets Colony Bankcorp, Inc.
 (in thousands)
                                               Mar. 31, 2007  Mar. 31, 2006
                                                 ----------    ----------
                                                 (unaudited)   (unaudited)
ASSETS
Cash and Cash Equivalents
  Cash and Due from Banks                        $   21,583    $   24,785
  Federal Funds Sold                                 35,004        54,104
                                                 ----------    ----------
                                                     56,587        78,889
                                                 ----------    ----------
Interest-Bearing Deposits                             2,810         3,631
                                                 ----------    ----------
Investment Securities
  Available for Sale, at Fair Value                 156,028       124,221
  Held for Maturity, at Cost (Fair Value
   of $73 and $81 as of  Mar. 31, 2007 and
   Mar. 31, 2006, Respectively)                          73            81
                                                 ----------    ----------
                                                    156,101       124,302
                                                 ----------    ----------
Federal Home Loan Bank Stock, at Cost                 4,903         5,469
                                                 ----------    ----------
Loans Held for Sale                                     335             -
                                                 ----------    ----------
Loans                                               930,250       893,100
  Allowance for Loan Losses                         (12,170)      (10,760)
  Unearned Interest and Fees                           (431)         (443)
                                                 ----------    ----------
                                                    917,649       881,897
                                                 ----------    ----------

Premises and Equipment                               27,268        26,280
                                                 ----------    ----------
Other Real Estate                                     1,563         2,131
                                                 ----------    ----------
Goodwill                                              2,412         2,412
                                                 ----------    ----------
Other Intangible Assets                                 429           495
                                                 ----------    ----------
Other Assets                                         21,350        19,680
                                                 ----------    ----------
Total Assets                                     $1,191,407    $1,145,186
                                                 ==========    ==========

LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits
  Noninterest-Bearing                            $   76,702    $   73,545
  Interest-Bearing                                  947,930       901,127
                                                 ----------    ----------
                                                  1,024,632       974,672
                                                 ----------    ----------

Borrowed Money
  Federal Funds Purchased                               480             -
  Subordinated Debentures                            24,229        19,074
  Other Borrowed Money                               55,000        74,672
                                                 ----------    ----------
                                                     79,709        93,746
                                                 ----------    ----------

Other Liabilities                                     8,513         7,143
                                                 ----------    ----------

Stockholders' Equity
  Common Stock, Par Value $1, Authorized
   20,000,000 Shares, Issued 7,204,775 and
   7,190,735 Shares as of Mar. 31, 2007
   and Mar. 31, 2006, Respectively                    7,205         7,191
  Paid in Capital                                    24,503        24,215
  Retained Earnings                                  48,013        40,353
  Restricted Stock- Unearned Compensation              (478)         (488)
  Accumulated Other Comprehensive Loss,
   Net of Tax                                          (690)       (1,646)
                                                 ----------    ----------
                                                     78,553        69,625
                                                 ----------    ----------
Total Liabilities and Stockholders' Equity       $1,191,407    $1,145,186
                                                 ==========    ==========



Consolidated Statements of Income Colony Bankcorp, Inc.
 (in thousands except per share data)
                                     Quarter              Year-to-Date
                                Three Months Ended     Three Months Ended
                               03/31/07    03/31/06    03/31/07   03/31/06
                             ----------  ----------  ----------  ----------
                             (unaudited) (unaudited) (unaudited)(unaudited)
Interest Income
  Loans, Including Fees         $19,768     $16,753     $19,768     $16,753
  Federal Funds Sold                631         479         631         479
  Deposits with Other Banks          41          18          41          18
  Investment Securities
    U.S. Government Agencies      1,544       1,164       1,544       1,164
    State, County and
     Municipal                      134          91         134          91
    Corporate Obligations            63          36          63          36
  Dividends on Other
   Investments                       76          59          76          59
                             ----------  ----------  ----------  ----------
                                 22,257      18,600      22,257      18,600
                             ----------  ----------  ----------  ----------
Interest Expense
  Deposits                       10,607       7,514      10,607       7,514
  Federal Funds Purchased             6           9           6           9
  Borrowed Money                  1,193       1,144       1,193       1,144
                             ----------  ----------  ----------  ----------
                                 11,806       8,667      11,806       8,667
                             ----------  ----------  ----------  ----------
Net Interest Income              10,451       9,933      10,451       9,933
  Provision for Loan Losses         914         922         914         922
                             ----------  ----------  ----------  ----------
Net Interest Income
 After Provision for
 Loan Losses                      9,537       9,011       9,537       9,011
                             ----------  ----------  ----------  ----------

Noninterest Income
  Service Charges on
   Deposits                       1,118       1,032       1,118       1,032
  Other Service Charges,
   Commissions and Fees             246         215         246         215
  Mortgage Fee Income               252         123         252         123
  Securities Gains                  184           -         184           -
  Other                             310         238         310         238
                             ----------  ----------  ----------  ----------
                                  2,110       1,608       2,110       1,608
                             ----------  ----------  ----------  ----------
Noninterest Expense
  Salaries and Employee
   Benefits                       4,542       4,079       4,542       4,079
  Occupancy and Equipment         1,001         985       1,001         985
  Other                           2,366       2,023       2,366       2,023
                             ----------  ----------  ----------  ----------
                                  7,909       7,087       7,909       7,087
                             ----------  ----------  ----------  ----------

Income Before Income Taxes        3,738       3,532       3,738       3,532
Income Taxes                      1,264       1,223       1,264       1,223
                             ----------  ----------  ----------  ----------
Net Income                       $2,474      $2,309      $2,474      $2,309
                             ==========  ==========  ==========  ==========
Net Income Per Share of
 Common Stock
  Basic                           $0.34       $0.32       $0.34       $0.32
                             ==========  ==========  ==========  ==========
  Diluted                         $0.34       $0.32       $0.34       $0.32
                             ==========  ==========  ==========  ==========
Weighted Average Basic
 Shares Outstanding           7,181,568   7,170,406   7,181,568   7,170,406
                             ==========  ==========  ==========  ==========
Weighted Average Diluted
 Shares Outstanding           7,194,741   7,172,669   7,194,741   7,172,669
                             ==========  ==========  ==========  ==========

Contact Information

  • Contact:
    Terry L. Hester
    Chief Financial Officer
    (229) 426-6002