SOURCE: Colony Bankcorp, Inc.

July 15, 2005 08:00 ET

Colony Bankcorp, Inc. Announces Second Quarter Results

FITZGERALD, GA -- (MARKET WIRE) -- July 15, 2005 -- Colony Bankcorp, Inc. (NASDAQ: CBAN) today reported record quarterly net income of $2,247,000 for the second quarter of 2005, up 11.96 percent from second quarter 2004 net income of $2,007,000. Diluted earnings per share for the second quarter of 2005 was $0.31 per share compared to $0.28 per share for the same year ago period or an increase of 10.71 percent. Annualized return on assets for the quarter was 0.89 percent and return on equity excluding FASB 115 accounting effect was 13.77 percent, compared to 0.87 percent and 13.80 percent for the same year ago period, respectively. Net interest margin had a slight increase to 3.88 percent for second quarter 2005 compared to 3.82 percent for the same year ago period.

Net income for the six months ended June 30, 2005 was $4,421,000 or $0.62 per share as compared to $3,932,000 or $0.55 per share for the same period a year ago. Earnings per share reflect an increase of 12.73 percent from a year ago. Annualized return on assets for the six months ended June 30, 2005 was 0.88 percent and return on equity excluding FASB 115 accounting effect was 13.77 percent, compared to 0.87 percent and 13.71 percent for the six months ended June 30, 2004, respectively.

Colony reached a milestone during the second quarter as total assets surpassed one billion dollars. Total assets increased 8.66 percent to $1,018,095,000 on June 30, 2005 from $936,997,000 a year ago. Net loans increased 11.28 percent to $817,687,000 on June 30, 2005 from $734,799,000 a year ago. Total deposits increased 8.69 percent to $859,390,000 on June 30, 2005 from $790,682,000 a year ago. Shareholders' equity on June 30, 2005 was $65,257,000 and equaled 6.41 percent of total assets.

The ratio of non-performing assets to loans and other real estate on June 30, 2005 was 1.48 percent as compared to 1.43 percent on June 30, 2004 and 1.27 percent on December 31, 2004. The second quarter 2005 provisions for loan losses were $1,025,000 compared to $865,000 for the same period in 2004, while year to date 2005 provisions for loan losses were $1,833,000 compared to $1,845,000 for the same period in 2004. Net charge-offs for the quarter were 0.13 percent of average loans, up from 0.04 percent for the second quarter of 2004 and net charge-offs for the six months ended June 30, 2005 were 0.22 percent, up from 0.10 percent for the same period a year ago. The loan loss reserve of $10,119,000 on June 30, 2005 was 1.22 percent of total loans, which provided coverage of 106.76 percent of non-performing loans and 82.44 percent of non-performing assets, compared to 133.77 percent and 90.77 percent on June 30, 2004, respectively.

During the quarter the board of directors increased the quarterly cash dividend to $0.07 per share compared to $0.068 split-adjusted per share in the first quarter of 2005 and to the cash dividend of $0.062 split-adjusted per share in the second quarter of 2004. The second quarter dividend payment represents an increase of 12.90% over the dividend payment in second quarter 2004.

In June, the company was recognized as one of Georgia's top-performing companies when The Atlanta Journal-Constitution announced its annual ranking of public companies based in Georgia. The twelfth annual list, based on 2004 data, ranked Colony Bankcorp, Inc. 34th on the list and was the sixth consecutive year that Colony has been recognized.

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-eight offices located in the Central and South Georgia cities of Fitzgerald, Warner Robins, 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           06/30/05    06/30/04    06/30/05    06/30/04
                            ----------  ----------  ----------  ----------
Net Interest Income         $    9,245  $    8,295  $   18,097  $   16,203
Provision for Loan Losses        1,025         865       1,833       1,845
Non-interest Income              1,575       1,604       3,202       3,149
Non-interest Expense             6,368       5,981      12,677      11,509
Income Taxes                     1,180       1,046       2,368       2,066
Net Income                       2,247       2,007       4,421       3,932
Operating Income                 2,247       2,007       4,421       3,932



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

                                 QUARTER ENDED          YEAR-TO-DATE
PER SHARE SUMMARY (2)        06/30/05    06/30/04    06/30/05    06/30/04
                            ----------  ----------  ----------  ----------
Common Shares Outstanding    7,181,882   7,172,928   7,181,882   7,172,928
Weighted Average Diluted
 Shares                      7,169,617   7,156,278   7,170,122   7,149,439
Net Income Per Weighted
 Average Diluted Shares     $     0.31  $     0.28  $     0.62  $     0.55
Operating Income Per
 Weighted Average Diluted
 Shares                     $     0.31  $     0.28  $     0.62  $     0.55
Dividends Declared
 Per Share                  $     0.07  $    0.062  $    0.138  $    0.122


                                 QUARTER ENDED          YEAR-TO-DATE
OPERATING RATIOS (1)         06/30/05    06/30/04    06/30/05    06/30/04
                            ----------  ----------  ----------  ----------
Net Interest Margin (a)           3.88%       3.82%       3.83%       3.82%
Return on Average Assets
 Based on Net Income              0.89%       0.87%       0.88%       0.87%
Return on Average Assets
 Based on Operating Income        0.89%       0.87%       0.88%       0.87%
Return on Average Equity
 Based on Net Income (b)         13.77%      13.80%      13.77%      13.71%
Return on Average Equity
 Based on Operating Income (b)   13.77%      13.80%      13.77%      13.71%
Efficiency (c)                   58.54%      60.02%      59.21%      59.05%


                                 QUARTER ENDED
ENDING BALANCES (2)          06/30/05    06/30/04
                            ----------  ----------
Total Assets                $1,018,095  $  936,997
Loans Held for Sale                911       2,469
Loans, Net of Reserves         817,687     734,799
Allowance for Loan Losses       10,119       9,677
Intangible Assets                2,983       3,123
Deposits                       859,390     790,682
Stockholders' Equity            65,257      58,015
Book Value Per Share        $     9.09  $     8.09
Tangible Book Value
 Per Share                  $     8.67  $     7.66
Shareholders' Equity to
 Total Assets                     6.41%       6.19%

(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) Excludes FASB 115 accounting effect
(c) 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            06/30/05    06/30/04    06/30/05    06/30/04
                            ----------  ----------  ----------  ----------
Total Assets                $1,010,365  $  925,320  $1,003,924  $  903,191
Loans, Net of Reserves         800,971     712,616     787,526     686,512
Deposits                       854,676     786,873     852,366     764,099
Stockholders' Equity            64,299      58,124      63,386      57,571


                                 QUARTER ENDED          YEAR-TO-DATE
 ASSET QUALITY               06/30/05    06/30/04    06/30/05    06/30/04
                            ----------  ----------  ----------  ----------
Nonperforming Loans         $    9,478  $    7,234  $    9,478  $    7,234
Nonperforming Assets            12,275      10,661      12,275      10,661
Net Loan Chg-offs
 (Recoveries)                    1,077         269       1,726         683
Reserve for Loan Loss to
 Gross Loans                      1.22%       1.30%       1.22%       1.30%
Reserve for Loan Loss to
 Non-performing Loans           106.76%     133.77%     106.76%     133.77%
Reserve for Loan Loss to
 Non-performing Assets           82.44%      90.77%      82.44%      90.77%
Net Loan Chg-offs
 (Recoveries) to Avg. Gross
 Loans                            0.13%       0.04%      0.22%        0.10%
Nonperforming Loans to Gross
 Loans                            1.14%       0.97%      1.14%        0.97%
Nonperforming Assets to
 Total Assets                     1.21%       1.14%      1.21%        1.14%
Nonperforming Assets to
 Loans and Other Real
 Estate                           1.48%       1.43%      1.48%        1.43%


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

                  2Q2005      1Q2005      4Q2004      3Q2004      2Q2004

Assets          $1,018,095  $  995,826  $  997,286  $  971,278  $  936,997
Loans              817,687     788,232     768,632     767,214     734,799
Deposits           859,390     845,753     850,325     824,509     790,682
Equity              65,257      62,784      61,763      60,528      58,015
Net Income           2,247       2,174       2,080       2,057       2,007
Net Income Per
 Share (2)            0.31        0.30        0.29        0.29        0.28
Dividends
 Declared Per
 Share (2)            0.07       0.068       0.066       0.064       0.062


Key Performance
 Ratios           2Q2005      1Q2005      4Q2004      3Q2004      2Q2004

Return on Assets      0.89%       0.87%       0.84%       0.86%       0.87%
Return on Equity*    13.77%      13.76%      13.47%      13.71%      13.80%
Equity/Assets         6.41%       6.30%       6.19%       6.23%       6.19%
Net Interest
 Margin               3.88%       3.77%       3.77%       3.82%       3.82%

*Excludes FASB 115 Accounting Effect
(2) 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)
                               June 30, 2005         June 30, 2004
                               -------------         -------------
                                 (unaudited)           (unaudited)
ASSETS
Cash and Cash Equivalents
     Cash and Due from Banks    $    18,973            $   18,537
     Federal Funds Sold              17,813                18,306
                                -----------            ----------
                                     36,786                36,843
                                -----------            ----------
Interest-Bearing Deposits             2,744                 4,846
Investment Securities
     Available for Sale,
      at Fair Value                 109,111               110,545
     Held for Maturity, at Cost
      (Fair Value of $86 and
       $87, Respectively)                86                    87
                                -----------            ----------
                                    109,197               110,632
                                -----------            ----------
Federal Home Loan Bank Stock,
 at Cost                              5,012                 3,330
Loans Held for Sale                     911                 2,469
Loans                               827,839               744,513
     Allowance for Loan Losses      (10,119)               (9,677)
     Unearned Interest and Fees         (33)                  (37)
                                -----------            ----------
                                    817,687               734,799
                                -----------            ----------

Premises and Equipment               23,718                21,655
Other Real Estate                     2,797                 3,427
Goodwill                              2,412                 2,412
Intangible Assets                       571                   711
Other Assets                         16,260                15,873
                                -----------            ----------
Total Assets                    $ 1,018,095            $  936,997
                                ===========            ==========

LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits
     Noninterest-Bearing        $    65,856            $   60,668
     Interest-Bearing               793,534               730,014
                                -----------            ----------
                                    859,390               790,682
                                -----------            ----------

Borrowed Money
     Subordinated Debentures         19,074                19,074
     Federal Funds Purchased              0                   610
     Other Borrowed Money            69,337                64,565
                                -----------            ----------
                                     88,411                84,249
                                -----------            ----------

Other Liabilities                     5,037                 4,051

Stockholders' Equity
     Common Stock, Par Value $1,
      Authorized 20,000,000
      Shares, Issued 7,181,882
      and 5,738,343 Shares as of
      June 30, 2005, and June 30,
      2004, Respectively              7,182                 5,738
     Paid in Capital                 24,011                23,713
     Retained Earnings               35,101                29,915
     Restricted Stock -
      Unearned Compensation            (423)                 (288)
     Accumulated Other
      Comprehensive Income,
      Net of Taxes                     (614)               (1,063)
                                -----------            ----------
                                     65,257                58,015
                                -----------            ----------
Total Liabilities and
 Stockholders' Equity           $ 1,018,095            $  936,997
                                ===========            ==========


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

                                   Quarter               Year-to-Date
                             Three Months Ended        Six Months Ended
                             06/30/05    06/30/04    06/30/05    06/30/04
                            ----------  ----------  ----------  ----------
                            (unaudited) (unaudited) (unaudited)  (audited)
Interest Income
  Loans, including fees     $   14,140  $   11,537  $   27,114  $   22,507
  Federal Funds Sold               193          54         428         138
  Deposits with Other Banks         17          20          34          46
  Investment Securities
    U.S. Treasury & Federal
     Agencies                      770         805       1,638       1,649
    State, County and
     Municipal                      64          80         118         166
    Corporate Obligations           36          84          66         168
  Dividends on Other
   Investments                      47          26          81          60
                            ----------  ----------  ----------  ----------
                                15,267      12,606      29,479      24,734
Interest Expense
  Deposits                       5,063       3,537       9,547       6,969
  Federal Funds Purchased            7           3           7           3
  Borrowed Money                   582         599       1,178       1,218
  Subordinated Debentures          370         172         650         341
                                 6,022       4,311      11,382       8,531
                            ----------  ----------  ----------  ----------
Net Interest Income              9,245       8,295      18,097      16,203
  Provision for Loan Losses      1,025         865       1,833       1,845
                            ----------  ----------  ----------  ----------
Net Interest Income After
 Provisions for Loan Losses      8,220       7,430      16,264      14,358
                            ----------  ----------  ----------  ----------

Noninterest Income
  Service Charges on
   Deposits                      1,050       1,077       1,980       2,070
  Mortgage Banking Income          202         258         334         542
  Security Gains (Losses),
   net                               0           0           0           0
  Other Income                     323         269         888         537
                            ----------  ----------  ----------  ----------
                                 1,575       1,604       3,202       3,149
                            ----------  ----------  ----------  ----------

Noninterest Expense
  Salaries and Employee
   Benefits                      3,552       3,225       6,874       6,244
  Occupancy and Equipment          925         869       1,825       1,666
  Other Operating Expenses       1,891       1,887       3,978       3,599
                            ----------  ----------  ----------  ----------
                                 6,368       5,981      12,677      11,509
                            ----------  ----------  ----------  ----------

Income Before Income Taxes       3,427       3,053       6,789       5,998
Income Taxes                     1,180       1,046       2,368       2,066
                            ----------  ----------  ----------  ----------
Net Income                  $    2,247  $    2,007  $    4,421  $    3,932
                            ==========  ==========  ==========  ==========
Net Income Per Share of
 Common Stock
  Basic                     $     0.31  $     0.28  $     0.62  $     0.55
                            ==========  ==========  ==========  ==========
  Diluted                   $     0.31  $     0.28  $     0.62  $     0.55
                            ==========  ==========  ==========  ==========
Weighted Average Basic
 Shares Outstanding          7,143,741   7,134,804   7,143,741   7,127,231
                            ==========  ==========  ==========  ==========
Weighted Average Diluted
 Shares Outstanding          7,169,617   7,156,278   7,170,122   7,149,439
                            ==========  ==========  ==========  ==========

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