Colony Bankcorp Reports Fourth Quarter 2024 Results

FITZGERALD, Ga.--(BUSINESS WIRE)--Colony Bankcorp, Inc. (NYSE: CBAN) (“Colony” or the “Company”) today reported financial results for the fourth quarter of 2024. Financial highlights are shown below. Financial Highlights: Net income increased to $7.4 million, or $0.42 per diluted share, for the fourth quarter of 2024, compared to $5.6 million, or $0.32 per diluted share, for the third quarter of 2024, and $5.6 million, or $0.32 per diluted share, for the fourth quarter of 2023. Operating net income increased to $7.8 million, or $0.44 of adjusted earnings per diluted share, for the fourth quarter of 2024, compared to $6.2 million, or $0.35 of adjusted earnings per diluted share, for the third quarter of 2024, and $5.4 million, or $0.31 of adjusted earnings per diluted share, for the fourth quarter of 2023. (See Reconciliation of Non-GAAP Measures). Provision for credit losses of $650,000 was recorded in fourth quarter of 2024 compared to $750,000 in third quarter of 2024, and $1.5 million in fourth quarter of 2023. Total loans, excluding loans held for sale, were $1.84 billion at December 31, 2024, a decrease of $43.1 million, or 2.28%, from the prior quarter. Total deposits were $2.57 billion and $2.52 billion at December 31, 2024 and September 30, 2024, respectively, an increase of $43.0 million. Mortgage production was $76.9 million, and mortgage sales totaled $51.4 million in the fourth quarter of 2024 compared to $66.6 million and $57.8 million, respectively, for the third quarter of 2024. Small Business Specialty Lending (“SBSL”) closed $22.2 million in Small Business Administration (“SBA”) loans and sold $30.0 million in SBA loans in the fourth quarter of 2024 compared to $30.1 million and $27.2 million, respectively, for the third quarter of 2024. The Company also announced that on January 22, 2025, the Board of Directors declared a quarterly cash dividend of $0.1150 per share, to be paid on its common stock on February 19, 2025, to shareholders of record as of the close of business on February 5, 2025. The Company had 17,520,136 shares of its common stock outstanding as of January 20, 2025. “We are pleased to report our operating results and improved performance in the fourth quarter of 2024. Strong deposit growth during the quarter, particularly in lower cost transactional deposit accounts, along with easing from the Federal Reserve contributed to a lower overall cost of funds which resulted in an increase in margin of 20 basis points compared to the prior quarter. Additionally, we are pleased with our increase in noninterest income led by a successful quarter for our Small Business Specialty Lending Division and continued progress in our other complementary lines of business,” said Heath Fountain, Chief Executive Officer. “The change in our loan balances reflects several anticipated large payoffs during the quarter, which carried lower rates and had minimal impact on earning asset yields. While we anticipate loan growth to resume in 2025, we expect it to be stronger in the latter half of the year.” “We were also excited to announce additions to the Executive Management team which include the promotions of Ed Canup, Daniel Rentz, and Laurie Senn. These additions enable us to prioritize profitable growth and scale the organization by emphasizing business development, innovation, and efficiency.” Balance Sheet Total assets were $3.11 billion at December 31, 2024, an increase of $44.7 million from September 30, 2024. Total loans, including loans held for sale, were at $1.88 billion at December 31, 2024, a decrease of $31.0 million from the quarter ended September 30, 2024. Total deposits were $2.57 billion and $2.52 billion at December 31, 2024 and September 30, 2024, respectively, an increase of $43.0 million. Interest bearing demand deposits increased $44.7 million and savings and money market deposits increased $3.2 million, which were partially offset by a decrease in time deposits of $27.3 million, from September 30, 2024 to December 31, 2024. Total borrowings at December 31, 2024 totaled $248.0 million, an increase of $23,000 compared to September 30, 2024, related to a minimal increase in other borrowed money. Capital Colony continues to maintain a strong capital position, with ratios that exceed regulatory minimums required to be considered as “well-capitalized.” Under the Company’s approved stock repurchase program, a total of 35,000 shares of Company common stock were repurchased during the fourth quarter of 2024 at an average price of $15.40 per share and a total value of $539,132 thousand. Preliminary tier one leverage ratio, tier one capital ratio, total risk-based capital ratio and common equity tier one capital ratio were 9.50%, 14.26%, 17.10%, and 13.08%, respectively, at December 31, 2024. Fourth Quarter and December 31, 2024 Year to Date Results of Operations Net interest income, on a tax-equivalent basis, totaled $20.6 million for the fourth quarter ended December 31, 2024 compared to $19.1 million for the same period in 2023. Net interest income, on a tax-equivalent basis, for the twelve months ended December 31, 2024 totaled $76.8 million, compared to $79.0 million for the twelve months ended December 31, 2023. For both periods, increases can be seen in income on interest earning assets, which is more than offset by increases in expenses on interest bearing liabilities due to higher interest rates period over period. Income on interest earning assets increased $2.8 million, to $36.2 million for the fourth quarter of 2024 compared to the respective period in 2023. Expense on interest bearing liabilities increased $1.2 million, to $15.5 million for the fourth quarter of 2024 compared to the respective period in 2023. Income on interest earning assets increased $12.3 million to $137.9 million for the twelve month period ended December 31, 2024 compared to the respective period in 2023. Expense on interest bearing liabilities increased $14.5 million, to $61.2 million for the twelve month period ended December 31, 2024 compared to the respective period in 2023. Net interest margin for the fourth quarter of 2024 was 2.84% compared to 2.70% for the fourth quarter of 2023. This increase was primarily related to an increase in interest earning assets period over period as well as rate increases in interest earning assets outpacing the rate increases in interest bearing liabilities. Net interest margin was 2.72% for the twelve months ended December 31, 2024 compared to 2.83% for the twelve months ended December 31, 2023. The decrease is the result of rate increases in interest bearing liabilities outpacing the rate increases in interest earning assets. Noninterest income totaled $10.3 million for the fourth quarter ended December 31, 2024, an increase of $1.0 million, or 10.79%, compared to the same period in 2023. Noninterest income totaled $39.4 million for the twelve months ended December 31, 2024, an increase of $3.7 million, or 10.50%, compared to the same period in 2023. These increases were primarily related to increases in mortgage fee income, gains on sales of SBA loans and income on merchant and wealth advisory services which is included in other noninterest income, which were partially offset by decreases in service charges on deposit accounts and losses on the sales of investment securities. Noninterest expense totaled $21.3 million for the fourth quarter ended December 31, 2024, compared to $19.6 million for the same period in 2023. Noninterest expense totaled $82.8 million for the twelve months ended December 31, 2024, compared to $83.1 million for the same period in 2023. The increase for the fourth quarter ended December 31, 2024 was primarily related to increases in salaries and employee benefits and information technology expenses. The slight decrease for the twelve months ended December 31, 2024 was a result of decreases in occupancy and equipment expenses, professional fees and communications expense partially offset by increases in salaries and employee benefits and information technology expenses. Asset Quality Nonperforming assets totaled $11.3 million and $12.5 million at December 31, 2024 and September 30, 2024, respectively, a decrease of $1.2 million. Other real estate owned and repossessed assets totaled $530,000 at December 31, 2024 and $236,000 at September 30, 2024. Net loans charged-off were $1.5 million, or 0.33% of average loans for the fourth quarter of 2024, compared to $139,000 or 0.03% for the third quarter of 2024. The credit loss reserve was $19.0 million, or 1.03% of total loans, at December 31, 2024, compared to $19.7 million, or 1.04% of total loans at September 30, 2024. Earnings call information The Company will host an earnings conference call at 9:00 a.m. ET on Thursday, January 23, 2025, to discuss the recent results and answer appropriate questions. The conference call can be accessed by dialing 1-800-549-8228 and using the Conference ID: 71885. A replay of the call will be available until Thursday, January 30, 2025. To listen to the replay, dial 1-888-660-6264 and entering the passcode 71885#. About Colony Bankcorp Colony Bankcorp, Inc. is the bank holding company for Colony Bank. Founded in Fitzgerald, Georgia in 1975, Colony operates locations throughout Georgia and has expanded to serve Birmingham, Alabama, as well as Tallahassee and the Florida Panhandle. At Colony Bank, we offer a range of banking solutions for personal and business customers. In addition to traditional banking services, Colony provides specialized solutions including mortgage, government guaranteed lending, consumer insurance, wealth management, and merchant services. Colony’s common stock is traded on the New York Stock Exchange (“NYSE”) under the symbol “CBAN.” For more information, please visit www.colony.bank. You can also follow the Company on social media. Forward-Looking Statements Certain statements contained in this press release that are not statements of historical fact constitute “forward-looking statements” within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. 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, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Examples of forward-looking statements include, but are not limited to: (i) projections and/or expectations 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; (iv) statements regarding growth strategy, capital management, liquidity and funding, and future profitability; and (v) statements of assumptions underlying such statements. Words such as “may”, “will”, “anticipate”, “assume”, “should”, “support”, “indicate”, “would”, “believe”, “contemplate”, “expect”, “estimate”, “continue”, “further”, “plan”, “point to”, “project”, “could”, “intend”, “target” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties. Factors that might cause such differences include, but are not limited to: the impact of current and future economic conditions, particularly those affecting the financial services industry, including the effects of declines in the real estate market, high unemployment rates, inflationary pressures, changes in interest rates (including the impact of prolonged elevated interest rates on our financial projections and models) and slowdowns in economic growth, as well as the financial stress on borrowers as a result of the foregoing; the risk of reductions in benchmark interest rates and the resulting impacts on net interest income; potential impacts of adverse developments in the banking industry highlighted by high-profile bank failures, including impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto; risks arising from media coverage of the banking industry; risks arising from perceived instability in the banking sector; the risks of changes in interest rates and their effects on the level, cost, and composition of, and competition for, deposits, loan demand and timing of payments, the values of loan collateral, securities, and interest sensitive assets and liabilities; the ability to attract new or retain existing deposits, to retain or grow loans or additional interest and fee income, or to control noninterest expense; the effect of pricing pressures on the Company’s net interest margin; the failure of assumptions underlying the establishment of reserves for possible credit losses, fair value for loans and other real estate owned; changes in real estate values; the Company’s ability to implement its various strategic and growth initiatives; increased competition in the financial services industry, particularly from regional and national institutions, as well as from fintech companies; economic conditions, either nationally or locally, in areas in which the Company conducts operations being less favorable than expected; changes in the prices, values and sales volumes of residential and commercial real estate; developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance; legislation or regulatory changes which adversely affect the ability of the consolidated Company to conduct business combinations or new operations; adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions, including as a result of the Company’s participation in and execution of government programs; significant turbulence or a disruption in the capital or financial markets and the effect of a fall in the stock market prices on our investment securities; the effects of war or other conflicts including the impacts related to or resulting from Russia’s military action in Ukraine or the conflict in Israel and surrounding areas; general risks related to the Company’s merger and acquisition activity, including risks associated with the Company’s pursuit of future acquisitions; the impact of generative artificial intelligence; fraud or misconduct by internal or external actors, and system failures, cybersecurity threats or security breaches and the cost of defending against them; a deterioration of the credit rating for U.S. long-term sovereign debt, actions that the U.S. government may take to avoid exceeding the debt ceiling, and uncertainties surrounding debt ceiling and the federal budget; a potential U.S. federal government shutdown and the resulting impacts; and general competitive, economic, political and market conditions or other unexpected factors or events. These and other factors, risks and uncertainties could cause the actual results, performance or achievements of the Company to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. Many of these factors are beyond the Company’s ability to control or predict. Forward-looking statements speak only as of the date on which such statements are made. These forward-looking statements are based upon information presently known to the Company’s management and are inherently subjective, uncertain and subject to change due to any number of risks and uncertainties, including, without limitation, the risks and other factors set forth in the Company’s filings with the Securities and Exchange Commission, the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, under the captions “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors,” and in the Company’s quarterly reports on Form 10-Q and current reports on Form 8-K. 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. Explanation of Certain Unaudited Non-GAAP Financial Measures The measures entitled operating noninterest income, operating noninterest expense, operating net income, adjusted earnings per diluted share, operating return on average assets, operating return on average equity, tangible book value per common share, tangible equity to tangible assets, operating efficiency ratio, operating net noninterest expense to average assets and pre-provision net revenue are not measures recognized under U.S. generally accepted accounting principles (GAAP) and therefore are considered non-GAAP financial measures. The most comparable GAAP measures are noninterest income, noninterest expense, net income, diluted earnings per share, return on average assets, return on average equity, book value per common share, total equity to total assets, efficiency ratio, net noninterest expense to average assets and net interest income before provision for credit losses, respectively. Operating noninterest income excludes gain on sale of bank premises and loss on sales of securities. Operating noninterest expense excludes acquisition-related expenses and severance costs. Operating net income, operating return on average assets, operating return on average equity and operating efficiency ratio all exclude acquisition-related expenses, severance costs, gain on sale of bank premises and loss on sales of securities from net income, return on average assets, return on average equity and efficiency ratio, respectively. Operating net noninterest expense to average assets ratio excludes from net noninterest expense, severance costs, acquisition-related expenses, gain on sale of bank premises and loss on sales of securities. Acquisition-related expenses includes fees associated with acquisitions and vendor contract buyouts. Severance costs includes costs associated with termination and retirement of employees. Adjusted earnings per diluted share includes the adjustments to operating net income. Tangible book value per common share and tangible equity to tangible assets exclude goodwill and other intangibles from book value per common share and total equity to total assets, respectively. Pre-provision net revenue is calculated by adding noninterest income to net interest income before provision for credit losses, and subtracting noninterest expense. Management uses these non-GAAP financial measures in its analysis of the Company's performance and believes these presentations provide useful supplemental information, and a clearer understanding of the Company's performance, and if not provided would be requested by the investor community. The Company believes the non-GAAP measures enhance investors' understanding of the Company's business and performance. These measures are also useful in understanding performance trends and facilitate comparisons with the performance of other financial institutions. The limitations associated with operating measures are the risk that persons might disagree as to the appropriateness of items comprising these measures and that different companies might calculate these measures differently. These disclosures should not be considered an alternative to GAAP. The computations of operating noninterest income, operating noninterest expense, operating net income, adjusted earnings per diluted share, operating return on average assets, operating return on average equity, tangible book value per common share, tangible equity to tangible assets, operating efficiency ratio, operating net noninterest expense to average assets and pre-provision net revenue and the reconciliation of these measures to noninterest income, noninterest expense, net income, diluted earnings per share, return on average assets, return on average equity, book value per common share, total equity to total assets, efficiency ratio, net noninterest expense to average assets and net interest income before provision for credit losses are set forth in the table below. Colony Bankcorp, Inc. Reconciliation of Non-GAAP Measures 2024 2023 (dollars in thousands, except per share data) Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter Operating noninterest income reconciliation Noninterest income (GAAP) $ 10,309 $ 10,082 $ 9,497 $ 9,487 $ 9,305 Gain on sale of bank premises — — — — (236 ) Writedown of bank premises — — 197 — — Loss on sales of securities 401 454 425 555 — Operating noninterest income $ 10,710 $ 10,536 $ 10,119 $ 10,042 $ 9,069 Operating noninterest expense reconciliation Noninterest expense (GAAP) $ 21,272 $ 20,835 $ 20,330 $ 20,397 $ 19,587 Severance costs — (265 ) — (23 ) — Operating noninterest expense $ 21,272 $ 20,570 $ 20,330 $ 20,374 $ 19,587 Operating net income reconciliation Net income (GAAP) $ 7,432 $ 5,629 $ 5,474 $ 5,333 $ 5,598 Severance costs — 265 — 23 — Gain on sale of bank premises — — — — (236 ) Writedown of bank premises — — 197 — — Loss on sales of securities 401 454 425 555 — Income tax benefit (77 ) (143 ) (129 ) (121 ) 52 Operating net income $ 7,756 $ 6,205 $ 5,967 $ 5,790 $ 5,414 Weighted average diluted shares 17,531,808 17,587,902 17,551,007 17,560,210 17,567,839 Adjusted earnings per diluted share $ 0.44 $ 0.35 $ 0.34 $ 0.33 $ 0.31 Operating return on average assets reconciliation Return on average assets (GAAP) 0.95 % 0.74 % 0.73 % 0.71 % 0.73 % Severance costs — 0.03 — — — Gain on sale of bank premises — — — — (0.03 ) Writedown of bank premises — — 0.03 — — Loss on sales of securities 0.05 0.06 0.06 0.07 — Tax effect of adjustment items (0.01 ) (0.02 ) (0.02 ) (0.02 ) 0.01 Operating return on average assets 0.99 % 0.81 % 0.80 % 0.76 % 0.71 % Operating return on average equity reconciliation Return on average equity (GAAP) 10.71 % 8.33 % 8.46 % 8.38 % 9.20 % Severance costs — 0.39 — 0.04 — Gain on sale of bank premises — — — — (0.39 ) Writedown of bank premises — — 0.30 — — Loss on sales of securities 0.58 0.67 0.66 0.87 — Tax effect of adjustment items (0.11 ) (0.21 ) (0.20 ) (0.19 ) 0.09 Operating return on average equity 11.18 % 9.18 % 9.22 % 9.10 % 8.90 % Tangible book value per common share reconciliation Book value per common share (GAAP) $ 15.91 $ 15.73 $ 15.09 $ 14.80 $ 14.51 Effect of goodwill and other intangibles (2.96 ) (2.97 ) (2.99 ) (3.01 ) (3.02 ) Tangible book value per common share $ 12.95 $ 12.76 $ 12.10 $ 11.79 $ 11.49 Tangible equity to tangible assets reconciliation Equity to assets (GAAP) 8.96 % 9.01 % 8.80 % 8.62 % 8.35 % Effect of goodwill and other intangibles (1.54 ) (1.58 ) (1.62 ) (1.63 ) (1.62 ) Tangible equity to tangible assets 7.42 % 7.43 % 7.18 % 6.99 % 6.73 % Operating efficiency ratio calculation Efficiency ratio (GAAP) 69.11 % 72.79 % 72.85 % 72.48 % 69.51 % Severance costs — (0.93 ) — (0.08 ) — Gain on sale of bank premises — — — — 0.84 Writedown of bank premises — — (0.71 ) — — Loss on sales of securities (1.31 ) (1.59 ) (1.52 ) (1.97 ) — Operating efficiency ratio 67.80 % 70.27 % 70.62 % 70.43 % 70.35 % Operating net noninterest expense(1) to average assets calculation Net noninterest expense to average assets 1.40 % 1.41 % 1.45 % 1.45 % 1.35 % Severance costs — (0.03 ) — — — Gain on sale of bank premises — — — — 0.03 Writedown of bank premises — — (0.03 ) — — Loss on sales of securities (0.05 ) (0.06 ) (0.06 ) (0.07 ) — Operating net noninterest expense to average assets 1.35 % 1.32 % 1.36 % 1.38 % 1.38 % Pre-provision net revenue Net interest income before provision for credit losses $ 20,472 $ 18,541 $ 18,409 $ 18,654 $ 18,874 Noninterest income 10,309 10,082 9,497 9,487 9,305 Total income 30,781 28,623 27,906 28,141 28,179 Noninterest expense 21,272 20,835 20,330 20,397 19,587 Pre-provision net revenue $ 9,509 $ 7,788 $ 7,576 $ 7,744 $ 8,592 (1) Net noninterest expense is defined as noninterest expense less noninterest income. Colony Bankcorp, Inc. Selected Financial Information 2024 2023 (dollars in thousands, except per share data) Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter EARNINGS SUMMARY Net interest income $ 20,472 $ 18,541 $ 18,409 $ 18,654 $ 18,874 Provision for credit losses 650 750 650 1,000 1,500 Noninterest income 10,309 10,082 9,497 9,487 9,305 Noninterest expense 21,272 20,835 20,330 20,397 19,587 Income taxes 1,427 1,409 1,452 1,411 1,494 Net income $ 7,432 $ 5,629 $ 5,474 $ 5,333 $ 5,598 PERFORMANCE MEASURES Per common share: Common shares outstanding 17,519,884 17,554,884 17,538,611 17,558,611 17,564,182 Weighted average basic shares 17,531,808 17,587,902 17,551,007 17,560,210 17,567,839 Weighted average diluted shares 17,531,808 17,587,902 17,551,007 17,560,210 17,567,839 Earnings per basic share $ 0.42 $ 0.32 $ 0.31 $ 0.30 $ 0.32 Earnings per diluted share 0.42 0.32 0.31 0.30 0.32 Adjusted earnings per diluted share(b) 0.44 0.35 0.34 0.33 0.31 Cash dividends declared per share 0.1125 0.1125 0.1125 0.1125 0.1100 Common book value per share 15.91 15.73 15.09 14.80 14.51 Tangible book value per common share(b) 12.95 12.76 12.10 11.79 11.49 Pre-provision net revenue(b) $ 9,509 $ 7,788 $ 7,576 $ 7,744 $ 8,592 Performance ratios: Net interest margin (a) 2.84 % 2.64 % 2.68 % 2.69 % 2.70 % Return on average assets 0.95 0.74 0.73 0.71 0.73 Operating return on average assets (b) 0.99 0.81 0.80 0.76 0.71 Return on average total equity 10.71 8.33 8.46 8.38 9.20 Operating return on average total equity (b) 11.18 9.18 9.22 9.10 8.90 Efficiency ratio 69.11 72.79 72.85 72.48 69.51 Operating efficiency ratio (b) 67.80 70.27 70.62 70.43 70.35 Net noninterest expense to average assets 1.40 1.41 1.45 1.45 1.35 Operating net noninterest expense to average assets(b) 1.35 1.32 1.36 1.38 1.38 ASSET QUALITY Nonperforming portfolio loans $ 5,024 $ 6,273 $ 3,653 $ 3,674 $ 7,804 Nonperforming government guaranteed loans 5,636 5,942 3,016 2,757 2,035 Loans 90 days past due and still accruing 152 44 41 — 370 Total nonperforming loans (NPLs) 10,812 12,259 6,710 6,431 10,209 Other real estate owned 202 227 582 562 448 Repossessed assets 328 9 13 — — Total nonperforming assets (NPAs) 11,342 12,495 7,305 6,993 10,657 Classified loans 20,103 20,918 22,355 25,965 23,754 Criticized loans 49,387 52,062 44,850 55,065 56,879 Net loan charge-offs (recoveries) 1,534 139 667 664 692 Allowance for credit losses to total loans 1.03 % 1.04 % 1.01 % 1.00 % 0.98 % Allowance for credit losses to total NPLs 175.55 160.40 280.27 290.11 179.95 Allowance for credit losses to total NPAs 167.34 157.37 257.44 266.80 172.38 Net charge-offs (recoveries) to average loans, net 0.33 0.03 0.14 0.14 0.15 NPLs to total loans 0.59 0.65 0.36 0.35 0.54 NPAs to total assets 0.36 0.41 0.24 0.23 0.35 NPAs to total loans and foreclosed assets 0.62 0.66 0.39 0.38 0.57 AVERAGE BALANCES Total assets $ 3,108,762 $ 3,038,947 $ 3,010,486 $ 3,036,093 $ 3,027,812 Loans, net 1,832,564 1,862,986 1,850,451 1,853,077 1,860,652 Loans, held for sale 35,299 34,533 33,024 24,612 21,251 Deposits 2,568,824 2,504,101 2,492,479 2,543,259 2,538,500 Total stockholders’ equity 276,082 268,769 260,162 255,927 241,392 (a) Computed using fully taxable-equivalent net income. (b) Non-GAAP measure - see “Explanation of Certain Unaudited Non-GAAP Financial Measures” for more information and reconciliation to GAAP. Colony Bankcorp, Inc. Average Balance Sheet and Net Interest Analysis Three Months Ended December 31, 2024 2023 (dollars in thousands) Average Balances Income/ Expense Yields/ Rates Average Balances Income/ Expense Yields/ Rates Assets Interest-earning assets: Loans, net of unearned income 1 $ 1,886,927 $ 28,539 6.02 % $ 1,899,413 $ 27,069 5.65 % Investment securities, taxable 704,677 4,759 2.69 % 743,308 5,221 2.79 % Investment securities, tax-exempt 2 95,062 505 2.11 % 103,418 607 2.33 % Deposits in banks and short term investments 202,059 2,361 4.65 % 51,874 489 3.74 % Total interest-earning assets 2,888,725 36,164 4.98 % 2,798,013 33,386 4.73 % Noninterest-earning assets 220,037 229,800 Total assets $ 3,108,762 $ 3,027,813 Liabilities and stockholders' equity Interest-bearing liabilities: Interest-bearing demand and savings $ 1,494,178 $ 6,759 1.80 % $ 1,396,932 $ 5,632 1.60 % Other time 619,334 5,897 3.79 % 643,841 5,939 3.66 % Total interest-bearing deposits 2,113,512 12,656 2.38 % 2,040,773 11,571 2.25 % Federal funds purchased — — — % 53 1 6.28 % Federal Home Loan Bank advances 185,000 1,905 4.10 % 158,913 1,624 4.06 % Other borrowings 63,025 958 6.05 % 72,508 1,134 6.20 % Total other interest-bearing liabilities 248,025 2,863 4.59 % 231,474 2,759 4.73 % Total interest-bearing liabilities 2,361,537 15,519 2.61 % 2,272,247 14,330 2.50 % Noninterest-bearing liabilities: Demand deposits 455,312 $ 497,727 Other liabilities 15,831 16,447 Stockholders' equity 276,082 241,392 Total noninterest-bearing liabilities and stockholders' equity 747,225 755,566 Total liabilities and stockholders' equity $ 3,108,762 $ 3,027,813 Interest rate spread 2.37 % 2.23 % Net interest income $ 20,645 $ 19,056 Net interest margin 2.84 % 2.70 % ______________________ 1 The average balance of loans includes the average balance of nonaccrual loans. Income on such loans is recognized and recorded on the cash basis. Taxable-equivalent adjustments totaling $66,000 and $54,000 for the quarters ended December 31, 2024 and 2023, respectively, are calculated using the statutory federal tax rate and are included in income and fees on loans. Accretion income of $12,000 and $5,000 for the quarters ended December 31, 2024 and 2023, respectively, are also included in income and fees on loans. 2 Taxable-equivalent adjustments totaling $106,000 and $127,000 for the quarters ended December 31, 2024 and 2023, respectively, are calculated using the statutory federal tax rate and are included in tax-exempt interest on investment securities. Colony Bankcorp, Inc. Average Balance Sheet and Net Interest Analysis Twelve Months Ended December 31, 2024 2023 (dollars in thousands) Average Balances Income/ Expense Yields/ Rates Average Balances Income/ Expense Yields/ Rates Assets Interest-earning assets: Loans, net of unearned income 3 $ 1,900,386 $ 111,904 5.89 % $ 1,850,043 $ 99,472 5.38 % Investment securities, taxable 720,986 19,270 2.67 % 770,707 21,388 2.78 % Investment securities, tax-exempt 4 99,350 2,158 2.17 % 105,797 2,444 2.31 % Deposits in banks and short term investments 106,381 4,592 4.32 % 63,806 2,341 3.67 % Total interest-earning assets 2,827,103 137,924 4.88 % 2,790,353 125,645 4.50 % Noninterest-earning assets 221,607 226,198 Total assets $ 3,048,710 $ 3,016,551 Liabilities and stockholders' equity Interest-bearing liabilities: Interest-bearing demand and savings $ 1,464,315 $ 27,293 1.86 % $ 1,390,247 $ 15,833 1.14 % Other time 603,080 22,714 3.77 % 619,083 19,632 3.17 % Total interest-bearing deposits 2,067,395 50,007 2.42 % 2,009,330 35,465 1.76 % Federal funds purchased 4 — 5.94 % 2,783 147 5.29 % Federal Home Loan Bank advances 176,421 7,211 4.09 % 160,548 6,763 4.21 % Other borrowings 63,186 3,947 6.25 % 70,807 4,298 6.07 % Total other interest-bearing liabilities 239,611 11,158 4.66 % 234,138 11,208 4.79 % Total interest-bearing liabilities 2,307,006 61,165 2.65 % 2,243,468 46,673 2.08 % Noninterest-bearing liabilities: Demand deposits 459,822 $ 519,225 Other liabilities 16,607 14,947 Stockholders' equity 265,275 238,911 Total noninterest-bearing liabilities and stockholders' equity 741,704 773,083 Total liabilities and stockholders' equity $ 3,048,710 $ 3,016,551 Interest rate spread 2.23 % 2.42 % Net interest income $ 76,759 $ 78,972 Net interest margin 2.72 % 2.83 % ______________________ 3 The average balance of loans includes the average balance of nonaccrual loans. Income on such loans is recognized and recorded on the cash basis. Taxable-equivalent adjustments totaling $229,000 and $216,000 for the twelve months ended December 31, 2024 and 2023, respectively, are calculated using the statutory federal tax rate and are included in income and fees on loans. Accretion income of $47,000 and $165,000 for the twelve months ended December 31, 2024 and 2023, respectively, are also included in income and fees on loans. 4 Taxable-equivalent adjustments totaling $453,000 and $513,000 for the twelve months ended December 31, 2024 and 2023, respectively, are included in tax-exempt interest on investment securities. Colony Bankcorp, Inc. Segment Reporting 2024 2023 (dollars in thousands) Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter Banking Division Net interest income $ 19,191 $ 17,152 $ 17,217 $ 17,552 $ 17,986 Provision for credit losses 309 698 96 455 979 Noninterest income 5,452 5,494 5,086 5,680 5,992 Noninterest expenses 17,616 17,075 17,135 17,129 16,619 Income taxes 927 1,017 1,060 1,166 1,365 Segment income $ 5,791 $ 3,856 $ 4,012 $ 4,482 $ 5,015 Total segment assets $ 2,985,856 $ 2,955,145 $ 2,889,013 $ 2,910,102 $ 2,956,121 Full time employees 376 375 385 377 378 Mortgage Banking Division Net interest income $ 53 $ 67 $ 50 $ 40 $ 23 Provision for credit losses — — — — — Noninterest income 1,545 1,812 1,456 1,165 1,206 Noninterest expenses 1,699 1,533 1,326 1,218 1,203 Income taxes (12 ) 71 42 1 8 Segment income $ (89 ) $ 275 $ 138 $ (14 ) $ 18 Total segment assets $ 17,970 $ 9,300 $ 19,004 $ 8,011 $ 7,890 Variable noninterest expense(1) $ 764 $ 1,005 $ 807 $ 603 $ 597 Fixed noninterest expense 935 528 519 615 606 Full time employees 45 44 42 43 42 Small Business Specialty Lending Division Net interest income $ 1,228 $ 1,322 $ 1,142 $ 1,062 $ 865 Provision for credit losses 341 52 554 545 521 Noninterest income 3,312 2,776 2,955 2,642 2,107 Noninterest expenses 1,957 2,227 1,869 2,050 1,765 Income taxes 512 321 350 244 121 Segment income $ 1,730 $ 1,498 $ 1,324 $ 865 $ 565 Total segment assets $ 105,956 $ 100,658 $ 99,890 $ 97,396 $ 89,411 Full time employees 34 33 33 31 33 Total Consolidated Net interest income $ 20,472 $ 18,541 $ 18,409 $ 18,654 $ 18,874 Provision for credit losses 650 750 650 1,000 1,500 Noninterest income 10,309 10,082 9,497 9,487 9,305 Noninterest expenses 21,272 20,835 20,330 20,397 19,587 Income taxes 1,427 1,409 1,452 1,411 1,494 Segment income $ 7,432 $ 5,629 $ 5,474 $ 5,333 $ 5,598 Total segment assets $ 3,109,782 $ 3,065,103 $ 3,007,907 $ 3,015,509 $ 3,053,422 Full time employees 455 452 460 451 453 (1) Variable noninterest expense includes commission based salary expenses and volume based loan related fees. Colony Bankcorp, Inc. Consolidated Balance Sheets December 31, 2024 December 31, 2023 (dollars in thousands) (unaudited) (audited) ASSETS Cash and due from banks $ 26,045 $ 25,339 Interest-bearing deposits in banks and federal funds sold 204,989 57,983 Cash and cash equivalents 231,034 83,322 Investment securities available for sale, at fair value 366,049 407,382 Investment securities held to maturity, at amortized cost 430,077 449,031 Other investments 17,694 16,868 Loans held for sale 39,786 27,958 Loans, net of unearned income 1,842,980 1,883,470 Allowance for credit losses (18,980 ) (18,371 ) Loans, net 1,824,000 1,865,099 Premises and equipment 37,831 39,870 Other real estate 202 448 Goodwill 48,923 48,923 Other intangible assets 2,975 4,192 Bank owned life insurance 57,970 56,925 Deferred income taxes, net 21,891 25,405 Other assets 31,350 27,999 Total assets $ 3,109,782 $ 3,053,422 LIABILITIES AND STOCKHOLDERS’ EQUITY Liabilities: Deposits: Noninterest-bearing $ 462,283 $ 498,992 Interest-bearing 2,105,660 2,045,798 Total deposits 2,567,943 2,544,790 Federal Home Loan Bank advances 185,000 175,000 Other borrowed money 63,039 63,445 Accrued expenses and other liabilities 15,125 15,252 Total liabilities $ 2,831,107 $ 2,798,487 Stockholders’ equity Common stock, $1 par value; 50,000,000 shares authorized, 17,519,884 and 17,564,182 issued and outstanding, respectively $ 17,520 $ 17,564 Paid in capital 168,353 168,614 Retained earnings 140,369 124,400 Accumulated other comprehensive loss, net of tax (47,567 ) (55,643 ) Total stockholders’ equity 278,675 254,935 Total liabilities and stockholders’ equity $ 3,109,782 $ 3,053,422 Colony Bankcorp, Inc. Consolidated Statements of Income (unaudited) Three months ended December 31, Twelve months ended December 31, 2024 2023 2024 2023 (dollars in thousands, except per share data) Interest income: Loans, including fees $ 28,473 $ 27,014 $ 111,675 $ 99,256 Investment securities 5,158 5,700 20,974 23,319 Deposits in banks and short term investments 2,360 489 4,592 2,341 Total interest income 35,991 33,203 137,241 124,916 Interest expense: Deposits 12,656 11,571 50,007 35,464 Federal funds purchased — 1 — 147 Federal Home Loan Bank advances 1,905 1,623 7,211 6,763 Other borrowings 958 1,134 3,947 4,298 Total interest expense 15,519 14,329 61,165 46,672 Net interest income 20,472 18,874 76,076 78,244 Provision for credit losses 650 1,500 3,050 3,600 Net interest income after provision for credit losses 19,822 17,374 73,026 74,644 Noninterest income: Service charges on deposits 2,302 2,595 9,365 8,735 Mortgage fee income 1,545 1,203 6,048 6,131 Gain on sales of SBA loans 2,622 1,634 9,242 5,063 Loss on sales of securities (401 ) — (1,835 ) — Interchange fees 2,030 2,059 8,299 8,460 BOLI income 412 372 1,725 1,396 Insurance commissions 471 452 1,789 1,873 Other 1,328 990 4,742 3,976 Total noninterest income 10,309 9,305 39,375 35,634 Noninterest expense: Salaries and employee benefits 12,877 11,304 49,767 49,233 Occupancy and equipment 1,645 1,543 6,149 6,283 Information technology expenses 2,491 2,147 8,978 8,553 Professional fees 539 749 2,825 3,097 Advertising and public relations 1,118 1,054 4,009 3,486 Communications 213 237 865 947 Other 2,389 2,553 10,241 11,466 Total noninterest expense 21,272 19,587 82,834 83,065 Income before income taxes 8,859 7,092 29,567 27,213 Income taxes 1,427 1,494 5,699 5,466 Net income $ 7,432 $ 5,598 $ 23,868 $ 21,747 Earnings per common share: Basic $ 0.42 $ 0.32 $ 1.36 $ 1.24 Diluted 0.42 0.32 1.36 1.24 Dividends declared per share 0.1125 0.1100 0.4500 0.4400 Weighted average common shares outstanding: Basic 17,531,808 17,567,839 17,557,743 17,578,294 Diluted 17,531,808 17,567,839 17,557,743 17,578,294 Colony Bankcorp, Inc. Quarterly Consolidated Statements of Income 2024 2023 Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter (dollars in thousands, except per share data) (unaudited) (unaudited) (unaudited) (unaudited) (audited) Interest income: Loans, including fees $ 28,473 $ 28,501 $ 27,604 $ 27,097 $ 27,014 Investment securities 5,158 5,248 5,048 5,520 5,700 Deposits in banks and short term investments 2,360 855 684 693 489 Total interest income 35,991 34,604 33,336 33,310 33,203 Interest expense: Deposits 12,656 13,154 12,106 12,091 11,571 Federal funds purchased — — — — 1 Federal Home Loan Bank advances 1,905 1,913 1,821 1,572 1,623 Other borrowings 958 996 1,000 993 1,134 Total interest expense 15,519 16,063 14,927 14,656 14,329 Net interest income 20,472 18,541 18,409 18,654 18,874 Provision for credit losses 650 750 650 1,000 1,500 Net interest income after provision for credit losses 19,822 17,791 17,759 17,654 17,374 Noninterest income: Service charges on deposits 2,302 2,401 2,288 2,373 2,595 Mortgage fee income 1,545 1,812 1,442 1,249 1,203 Gain on sales of SBA loans 2,622 2,227 2,347 2,046 1,634 Loss on sales of securities (401 ) (454 ) (425 ) (555 ) — Interchange fees 2,030 2,163 2,078 2,028 2,059 BOLI income 412 383 398 533 372 Insurance commissions 471 433 420 465 452 Other 1,328 1,117 949 1,348 990 Total noninterest income 10,309 10,082 9,497 9,487 9,305 Noninterest expense: Salaries and employee benefits 12,877 12,594 12,277 12,018 11,304 Occupancy and equipment 1,645 1,523 1,475 1,507 1,543 Information technology expenses 2,491 2,150 2,227 2,110 2,147 Professional fees 539 748 704 834 749 Advertising and public relations 1,118 965 967 960 1,054 Communications 213 210 216 226 237 Other 2,389 2,645 2,464 2,742 2,553 Total noninterest expense 21,272 20,835 20,330 20,397 19,587 Income before income taxes 8,859 7,038 6,926 6,744 7,092 Income taxes 1,427 1,409 1,452 1,411 1,494 Net income $ 7,432 $ 5,629 $ 5,474 $ 5,333 $ 5,598 Earnings per common share: Basic $ 0.42 $ 0.32 $ 0.31 $ 0.30 $ 0.32 Diluted 0.42 0.32 0.31 0.30 0.32 Dividends declared per share 0.1125 0.1125 0.1125 0.1125 0.1100 Weighted average common shares outstanding: Basic 17,531,808 17,587,902 17,551,007 17,560,210 17,567,839 Diluted 17,531,808 17,587,902 17,551,007 17,560,210 17,567,839 Colony Bankcorp, Inc. Quarterly Comparison 2024 2023 (dollars in thousands, except per share data) Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter Assets $ 3,109,782 $ 3,065,103 $ 3,007,907 $ 3,015,509 $ 3,053,422 Loans, net 1,824,000 1,866,374 1,846,768 1,840,361 1,865,099 Deposits 2,567,943 2,524,970 2,460,225 2,522,748 2,544,790 Total equity 278,675 276,052 264,743 259,914 254,935 Net income 7,432 5,629 5,474 5,333 5,598 Earnings per basic share $ 0.42 $ 0.32 $ 0.31 $ 0.30 $ 0.32 Key Performance Ratios: Return on average assets 0.95 % 0.74 % 0.73 % 0.71 % 0.73 % Operating return on average assets (a) 0.99 % 0.81 % 0.80 % 0.76 % 0.71 % Return on average total equity 10.71 % 8.33 % 8.46 % 8.38 % 9.20 % Operating return on average total equity (a) 11.18 % 9.18 % 9.22 % 9.10 % 8.90 % Total equity to total assets 8.96 % 9.01 % 8.80 % 8.62 % 8.35 % Tangible equity to tangible assets (a) 7.42 % 7.43 % 7.18 % 6.99 % 6.73 % Net interest margin 2.84 % 2.64 % 2.68 % 2.69 % 2.70 % (a) Non-GAAP measure - see “Explanation of Certain Unaudited Non-GAAP Financial Measures” for more information and reconciliation to GAAP. Colony Bankcorp, Inc. Quarterly Deposits Composition Comparison 2024 2023 (dollars in thousands) Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter Noninterest-bearing demand $ 462,283 $ 439,892 $ 437,623 $ 476,413 $ 498,992 Interest-bearing demand 813,783 769,123 788,674 802,596 759,299 Savings 687,603 684,371 670,848 650,188 660,311 Time, $250,000 and over 185,176 198,942 168,856 173,386 167,680 Other time 419,098 432,642 394,224 420,165 458,508 Total $ 2,567,943 $ 2,524,970 $ 2,460,225 $ 2,522,748 $ 2,544,790 Colony Bankcorp, Inc. Quarterly Deposits by Location Comparison 2024 2023 (dollars in thousands) Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter Coastal Georgia $ 145,828 $ 142,580 $ 144,021 $ 138,103 $ 137,398 Middle Georgia 279,360 269,144 275,758 286,697 265,788 Atlanta and North Georgia 318,927 321,808 336,338 333,856 334,003 South Georgia 1,217,433 1,165,529 1,110,049 1,132,701 1,134,662 West Georgia 337,818 357,450 365,380 378,764 384,750 Brokered deposits 59,499 70,999 39,240 59,019 93,561 Reciprocal deposits 209,078 197,460 189,439 193,608 194,628 Total $ 2,567,943 $ 2,524,970 $ 2,460,225 $ 2,522,748 $ 2,544,790 Colony Bankcorp, Inc. Quarterly Loan Comparison 2024 2023 (dollars in thousands) Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter Core $ 1,720,444 $ 1,759,600 $ 1,732,843 $ 1,718,284 $ 1,729,866 Purchased 122,536 126,437 132,731 140,734 153,604 Total $ 1,842,980 $ 1,886,037 $ 1,865,574 $ 1,859,018 $ 1,883,470 Colony Bankcorp, Inc. Quarterly Loans by Composition Comparison 2024 2023 (dollars in thousands) Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter Construction, land & land development $ 205,046 $ 196,390 $ 199,916 $ 234,000 $ 247,146 Other commercial real estate 990,648 1,012,466 985,102 971,205 974,649 Total commercial real estate 1,195,694 1,208,856 1,185,018 1,205,205 1,221,795 Residential real estate 344,167 349,777 360,847 347,277 355,973 Commercial, financial & agricultural 213,910 242,389 242,205 239,837 242,743 Consumer and other 89,209 85,015 77,504 66,699 62,959 Total $ 1,842,980 $ 1,886,037 $ 1,865,574 $ 1,859,018 $ 1,883,470 Colony Bankcorp, Inc. Quarterly Loans by Location Comparison 2024 2023 (dollars in thousands) Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter Alabama $ 45,365 $ 46,630 $ 44,575 $ 44,806 $ 45,594 Florida 13,135 12,280 2,753 1,579 40 Augusta 76,492 59,557 64,465 71,483 65,284 Coastal Georgia 224,609 220,452 228,844 232,557 243,492 Middle Georgia 121,059 120,843 124,268 121,131 118,806 Atlanta and North Georgia 427,046 432,377 427,568 425,753 426,724 South Georgia 384,907 427,887 413,098 409,681 436,728 West Georgia 169,699 184,634 184,365 183,679 187,751 Small Business Specialty Lending 81,636 79,967 75,182 71,196 68,637 Consumer Portfolio Mortgages 250,555 253,481 257,772 261,204 255,771 Marine/RV Lending 46,941 45,785 41,922 35,017 33,191 Other 1,536 2,144 762 932 1,452 Total $ 1,842,980 $ 1,886,037 $ 1,865,574 $ 1,859,018 $ 1,883,470 Colony Bankcorp, Inc. Classified Loans 2024 2023 (dollars in thousands) Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter $ # $ # $ # $ # $ # Construction, land & land development $ — — $ — — $ 54 3 $ 572 11 $ 1,063 14 Other commercial real estate 13,367 38 13,338 36 13,990 34 13,918 46 10,219 39 Residential real estate 1,265 83 1,554 85 2,168 104 5,896 183 7,103 187 Commercial, financial & agricultural 5,407 70 6,005 61 6,075 54 5,487 70 5,284 58 Consumer and other 64 22 21 23 68 24 92 67 85 76 TOTAL $ 20,103 213 $ 20,918 205 $ 22,355 219 $ 25,965 377 $ 23,754 374 Classified loans to total loans 1.09 % 1.11 % 1.20 % 1.40 % 1.26 % Colony Bankcorp, Inc. Criticized Loans 2024 2023 (dollars in thousands) Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter $ # $ # $ # $ # $ # Construction, land & land development $ 2,865 9 $ 4,418 9 $ 626 6 $ 1,543 18 $ 2,192 21 Other commercial real estate 32,077 65 32,790 64 31,544 59 31,498 46 27,445 77 Residential real estate 5,504 89 5,389 90 5,431 107 13,050 249 14,275 253 Commercial, financial & agricultural 8,877 76 9,444 68 7,181 59 8,609 114 12,686 106 Consumer and other 64 22 21 23 68 24 365 85 281 92 TOTAL $ 49,387 261 $ 52,062 254 $ 44,850 255 $ 55,065 512 $ 56,879 549 Criticized loans to total loans 2.68 % 2.76 % 2.40 % 2.96 % 3.02 %

Colony Bankcorp Reports Fourth Quarter 2024 Results

FAQ

Why Bullish?

How important is it?

Why Short Term?

Related Companies

Related News