SOURCE: Colony Bankcorp, Inc.

January 19, 2007 08:00 ET

Colony Bankcorp, Inc. Announces Fourth Quarter Results

FITZGERALD, GA -- (MARKET WIRE) -- January 19, 2007 -- Colony Bankcorp, Inc. (NASDAQ: CBAN) reached a milestone surpassing $10 million in earnings with net income of $10,152,000 for 2006, up 13.09 percent from 2005 net income of $8,977,000. Diluted earnings per share for 2006 were $1.41 per share compared to $1.25 per share for 2005 or an increase of 12.80 percent. Return on assets for 2006 was 0.87 percent and return on equity was 14.10 percent, compared to 0.87 percent and 13.78 percent for 2005, respectively. Net interest margin had a slight increase to 3.84 percent for 2006 compared to 3.81 percent for 2005.

Net income for the three months ended December 31, 2006 was $2,611,000 or $0.36 per share as compared to $2,305,000, or $0.32 per share for the same year ago period. Earnings per share reflect an increase of 12.50 percent from a year ago. Annualized return on assets for the three months ended December 31, 2006 was 0.87 percent and return on equity was 13.83 percent, compared to 0.84 percent and 13.63 percent for the three months ended December 31, 2005, respectively. Net interest margin decreased to 3.70 percent for the three months ended December 31, 2006 compared to 3.79 percent for the same year ago period.

Total assets increased 9.49 percent to $1,213,504,000 on December 31, 2006 from $1,108,338,000 a year ago. Net loans increased 9.64 percent to $929,783,000 on December 31, 2006 from $848,053,000 a year ago. Total deposits increased 10.39 percent to $1,042,446,000 on December 31, 2006 from $944,365,000 a year ago. Shareholders' equity on December 31, 2006 was $76,611,000 and equaled 6.31 percent of total assets.

The company's focus on credit quality resulted in continued improvement during 2006 as the ratio of non-performing assets to loans and other real estate on December 31, 2006 was 0.96 percent as compared to 1.25 percent on December 31, 2005. Total nonperforming assets decreased $1,717,000 to $9,048,000 on December 31, 2006 from $10,765,000 on December 31, 2005, or a decrease of 15.95 percent. Total 2006 provision for loan losses were $3,987,000 compared to $3,444,000 for 2005. Net charge-offs for 2006 were 0.30 percent of average loans, while net charge-offs for 2005 were 0.33 percent. During fourth quarter 2006, net charge-offs were 0.14 percent of average loans as the company recognized losses primarily in commercial real estate and commercial business loans. The loan loss reserve of $11,989,000 on December 31, 2006 was 1.27 percent of total loans, which provided coverage of 148.42 percent of non-performing loans and 132.50 percent of non-performing assets, compared to 125.21 percent and 99.97 percent on December 31, 2005, respectively.

During the quarter the board of directors increased the quarterly cash dividend to $0.085 per share compared to $0.0825 per share in the third quarter of 2006 and to the cash dividend of $0.075 per share in the fourth quarter of 2005. The fourth quarter dividend payment represents an increase of 13.33 percent over the dividend payment in fourth quarter 2005. Total dividends for 2006 were $0.325 per share compared to $0.285 for 2005, or an increase of 14.04 percent.

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             12/31/06   12/31/05    12/31/06   12/31/05
                              ---------- ----------  ---------- ----------
Net Interest Income           $   10,481 $    9,791  $   41,888 $   37,154
Provision for Loan Losses            997        742       3,987      3,444
Non-interest Income                1,788      1,518       7,312      6,152
Non-interest Expense               7,478      7,009      29,844     26,076
Income Taxes                       1,183      1,253       5,217      4,809
Net Income                         2,611      2,305      10,152      8,977
Operating Income                   2,611      2,305      10,152      8,977


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


                                  QUARTER ENDED          YEAR-TO-DATE
   PER SHARE SUMMARY (2)      12/31/06    12/31/05    12/31/06   12/31/05
                             ----------  ----------  ---------- ----------
Common Shares Outstanding     7,189,937   7,181,320   7,189,937  7,181,320
Weighted Average Diluted
 Shares                       7,179,017   7,169,269   7,177,737  7,171,100
Net Income Per Weighted
 Average Diluted Shares      $     0.36  $     0.32  $     1.41 $     1.25
Operating Income Per Weighted
 Average Diluted Shares      $     0.36  $     0.32  $     1.41 $     1.25
Dividends Declared Per Share $    0.085  $    0.075  $    0.325 $    0.285



                                  QUARTER ENDED          YEAR-TO-DATE
   OPERATING RATIOS (1)       12/31/06    12/31/05    12/31/06   12/31/05
                             ----------  ----------  ---------- ----------
Net Interest Margin (a)            3.70%       3.79%       3.84%      3.81%
Return on Average Assets
 Based on Net Income               0.87%       0.84%       0.87%      0.87%
Return on Average Assets
 Based on Operating Income         0.87%       0.84%       0.87%      0.87%
Return on Average Equity
 Based on Net Income              13.83%      13.63%      14.10%     13.78%
Return on Average Equity
 Based on Operating Income        13.83%      13.63%      14.10%     13.78%
Efficiency (b)                    60.53%      61.67%      60.33%     59.90%




                                   QUARTER ENDED
   ENDING BALANCES (2)         12/31/06    12/31/05
                              ----------  ----------
Total Assets                  $1,213,504  $1,108,338
Loans, Net of Reserves           929,783     848,053
Allowance for Loan Losses         11,989      10,762
Goodwill                           2,412       2,412
Intangible Assets                    439         520
Deposits                       1,042,446     944,365
Stockholders’ Equity              76,611      68,128
Book Value Per Share          $    10.66  $     9.49
Tangible Book Value Per Share $    10.26  $     9.08
Shareholders’ Equity to Total
 Assets                             6.31%       6.15%
(1) Annualized.
(2) All Per Share Data has been adjusted to reflect 5-for-4 stock split
    effective May 16, 2005.
(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           12/31/06    12/31/05    12/31/06   12/31/05
                             ----------  ----------  ---------- ----------
Total Assets                 $1,205,025  $1,097,134  $1,160,718 $1,034,777
Loans, Net of Reserves          930,665     841,488     900,711    809,166
Deposits                      1,033,741     934,709     990,968    878,109
Stockholders’ Equity             75,524      67,590      71,993     65,146

                                  QUARTER ENDED          YEAR-TO-DATE
    ASSET QUALITY             12/31/06    12/31/05    12/31/06   12/31/05
                             ----------  ----------  ---------- ----------
Nonperforming Loans          $    8,078  $    8,595  $    8,078 $    8,595
Nonperforming Assets              9,048      10,765       9,048     10,765
Net Loan Chg-offs (Recoveries)    1,316         643       2,760      2,694
Reserve for Loan Loss to Gross
 Loans                             1.27%       1.25%       1.27%      1.25%
Reserve for Loan Loss to Non-
 performing Loans                148.42%     125.21%     148.42%    125.21%
Reserve for Loan Loss to Non-
 performing Assets               132.50%      99.97%     132.50%     99.97%
Net Loan Chg-offs (Recoveries)
 to Avg. Gross Loans               0.14%       0.08%       0.30%      0.33%
Nonperforming Loans to Gross
 Loans                             0.86%       1.00%       0.86%      1.00%
Nonperforming Assets to Total
 Assets                            0.75%       0.97%       0.75%      0.97%
Nonperforming Assets to Loans
 and Other Real Estate             0.96%       1.25%       0.96%      1.25%


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

                      4Q2006     3Q2006     2Q2006     1Q2006     4Q2005

Assets              $1,213,504 $1,186,382 $1,169,161 $1,145,186 $1,108,338
Loans                  929,783    926,332    900,781    881,897    848,053
Deposits             1,042,446  1,016,327  1,005,086    974,672    944,365
Equity                  76,611     74,352     71,051     69,625     68,128
Net Income               2,611      2,622      2,610      2,309      2,305
Net Income Per
 Share (1)                0.36       0.36       0.36       0.32       0.32
Dividends Declared Per
 Share (1)               0.085     0.0825       0.08     0.0775      0.075

Key Performance
 Ratios               4Q2006      3Q2006    2Q2006     1Q2006     4Q2005

Return on Assets          0.87%      0.90%      0.90%      0.83%      0.84%
Return on Equity         13.83%     14.45%     14.80%     13.39%     13.64%
Equity/Assets             6.31%      6.27%      6.08%      6.08%      6.15%
Net Interest Margin       3.70%      3.93%      3.95%      3.80%      3.79%


(1) All per share data has been adjusted to reflect 5-for-4 stock split
    effective May 16, 2005.




Consolidated Balance Sheets Colony Bankcorp, Inc.
 (in thousands)
                                              Dec. 31, 2006   Dec. 31, 2005
                                              -------------   -------------
                                               (unaudited)       (audited)
ASSETS
Cash and Cash Equivalents
     Cash and Due from Banks                   $    27,231     $    21,606
     Federal Funds Sold                             45,149          57,456
                                               -----------     -----------
                                                    72,380          79,062
                                               -----------     -----------
Interest-Bearing Deposits                            3,076           1,635
                                               -----------     -----------
Investment Securities
     Available for Sale, at Fair Value             149,236         124,246
     Held for Maturity, at Cost (Fair Value
      of $71 and $80 as of  Dec. 31, 2006
      and Dec. 31, 2005, Respectively)                  71              80
                                               -----------     -----------
                                                   149,307         124,326
                                               -----------     -----------
Federal Home Loan Bank Stock, at Cost                5,087           5,034
                                               -----------     -----------
Loans                                              942,273         859,117
     Allowance for Loan Losses                     (11,989)        (10,762)
     Unearned Interest and Fees                       (501)           (302)
                                               -----------     -----------
                                                   929,783         848,053
                                               -----------     -----------

Premises and Equipment                              27,453          25,676
                                               -----------     -----------
Other Real Estate                                      970           2,170
                                               -----------     -----------
Goodwill                                             2,412           2,412
                                               -----------     -----------
Other Intangible Assets                                439             520
                                               -----------     -----------
Other Assets                                        22,597          19,450
                                               -----------     -----------
Total Assets                                   $ 1,213,504     $ 1,108,338
                                               ===========     ===========

LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits
     Noninterest-Bearing                       $    77,336     $    78,778
     Interest-Bearing                              965,110         865,587
                                               -----------     -----------
                                                 1,042,446         944,365
                                               -----------     -----------

Borrowed Money
     Federal Funds Purchased                         1,070               -
     Subordinated Debentures                        24,229          19,074
     Other Borrowed Money                           61,500          70,226
                                               -----------     -----------
                                                    86,799          89,300
                                               -----------     -----------

Other Liabilities                                    7,648           6,545
                                               -----------     -----------

Stockholders' Equity
     Common Stock, Par Value $1, Authorized
      20,000,000 Shares, Issued 7,189,937
      and 7,181,320 Shares as of Dec. 31,
      2006 and Dec. 31, 2005, Respectively           7,190           7,181
     Paid in Capital                                24,257          24,000
     Retained Earnings                              46,417          38,602
     Restricted Stock - Unearned Compensation         (278)           (302)
     Accumulated Other Comprehensive Loss,
      Net of Tax                                      (975)         (1,353)
                                               -----------     -----------
                                                    76,611          68,128
                                               -----------     -----------
Total Liabilities and Stockholders' Equity     $ 1,213,504     $ 1,108,338
                                               ===========     ===========



Consolidated Statements of Income Colony Bankcorp, Inc.
 (in thousands except per share data)

                                     Quarter             Year-to-Date
                                Three Months Ended    Twelve Months Ended
                                12/31/06   12/31/05   12/31/06   12/31/05
                               ---------- ---------- ---------- ----------
                               (unaudited)(unaudited)(unaudited) (audited)

Interest Income
  Loans, Including Fees        $   20,017 $   16,130 $   75,087 $   58,309
  Federal Funds Sold                  577        597      2,035      1,266
  Deposits with Other Banks            41         29        133         86
  Investment Securities
    U. S. Government Agencies       1,483        993      5,199      3,413
    State, County and
     Municipal                        107         63        381        241
    Corporate Obligations              46         37        162        139
  Dividends on Other
   Investments                         80         44        283        180
                               ---------- ---------- ---------- ----------
                                   22,351     17,893     83,280     63,634
                               ---------- ---------- ---------- ----------
Interest Expense
  Deposits                         10,672      7,059     36,610     22,590
  Federal Funds Purchased               1          1         29         16
  Borrowed Money                    1,197      1,042      4,753      3,874
                               ---------- ---------- ---------- ----------
                                   11,870      8,102     41,392     26,480
                               ---------- ---------- ---------- ----------
Net Interest Income                10,481      9,791     41,888     37,154
  Provision for Loan Losses           997        742      3,987      3,444
                               ---------- ---------- ---------- ----------
Net Interest Income After
 Provision for Loan Losses          9,484      9,049     37,901     33,710
                               ---------- ---------- ---------- ----------

Noninterest Income
  Service Charges on Deposits       1,200      1,071      4,580      4,128
  Other Service Charges,
   Commissions and Fees               206        169        831        708
  Mortgage Fee Income                 252        115        768        494
  Other                               130        163      1,133        822
                               ---------- ---------- ---------- ----------
                                    1,788      1,518      7,312      6,152
                               ---------- ---------- ---------- ----------
Noninterest Expense
  Salaries and Employee
   Benefits                         4,194      3,674     16,870     14,128
  Occupancy and Equipment           1,000        959      4,035      3,778
  Other                             2,284      2,376      8,939      8,170
                               ---------- ---------- ---------- ----------
                                    7,478      7,009     29,844     26,076
                               ---------- ---------- ---------- ----------

Income Before Income Taxes          3,794      3,558     15,369     13,786
Income Taxes                        1,183      1,253      5,217      4,809
                               ---------- ---------- ---------- ----------
Net Income                     $    2,611 $    2,305 $   10,152 $    8,977
                               ========== ========== ========== ==========
Net Income Per Share of
 Common Stock
  Basic                        $     0.36 $     0.32 $     1.41 $     1.25
                               ========== ========== ========== ==========
  Diluted                      $     0.36 $     0.32 $     1.41 $     1.25
                               ========== ========== ========== ==========
Weighted Average Basic
 Shares Outstanding             7,179,017  7,143,741  7,176,894  7,168,406
                               ========== ========== ========== ==========
Weighted Average Diluted
 Shares Outstanding             7,179,017  7,169,269  7,177,737  7,171,100
                               ========== ========== ========== ==========

Per Share Data has been adjusted to reflect 5-for-4 stock split
 effective May 16, 2005.

Contact Information

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