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EX-99.2 - EX-99.2 - COLONY BANKCORP INCcban2q20investorpresenta.htm
8-K - 8-K - COLONY BANKCORP INCcban-20200722.htm

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For additional information, contact:
Tracie Youngblood
EVP & Chief Financial Officer
(229) 426-6000 (Ext 6003)


COLONY BANKCORP REPORTS SECOND QUARTER 2020 RESULTS

COMPANY DECLARES QUARTERLY CASH DIVIDEND OF $0.10 PER SHARE

FITZGERALD, GA. (July 22, 2020) – Colony Bankcorp, Inc. (Nasdaq: CBAN) (“Colony” or the “Company”) today reported net income of $2.2 million, or $0.23 per diluted share, for the second quarter of 2020, compared to $2.1 million, or $0.23 per diluted share, for the same period in 2019. Excluding payroll protection program and acquisition-related expenses, Colony reported operating net income of $2.4 million, or $0.25 adjusted earnings per diluted share, in the second quarter of 2020, compared to $3.6 million, or $0.40 adjusted earnings per diluted share, for the same period in 2019.

For the six months ended June 30, 2020, the Company reported net income of $3.8 million, or $0.40 per diluted share, compared to $4.9 million, or $0.56 per diluted share, for the same period in 2019. The Company reported operating net income of $4.9 million, or $0.52 adjusted earnings per diluted share, for the six months ended June 30, 2020, compared to $6.6 million, or $0.78 adjusted earnings per diluted share, for the same period in 2019.
The Company separately announced that on July 16, 2020, the Board of Directors declared a quarterly cash dividend of $0.10 per share, to be paid on its common stock on August 21, 2020, to shareholders of record as of the close of business on August 7, 2020.

Commenting on the announcement, Heath Fountain, President and Chief Executive Officer, said, “Despite operating in one of the most severe economic disruptions in our time, I am pleased to report that our diluted earnings per share increased 35% over the sequential quarter, and we were able to achieve similar earnings compared with the same period last year. The strong fundamentals underlying our business, diversification of revenue streams as seen by strong growth in mortgage banking income, and revenue contribution from our Small Business Specialty Lending Division give me confidence in our future.

“The COVID-19 pandemic continues to have severe economic disruptions across our operating markets. In these troubling times, we have continued to assist the liquidity needs of our customers, ensure the health and well-being of our employees and support the communities in which we operate. Under the Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”) enacted as part of the Coronavirus Aid, Relief and Economic Security Act, the Company originated approximately $137.8 million in gross PPP loans. Colony Bank brought on new customers under the program who did not previously have a relationship with us. Moreover, these customers executed new non-PPP loans, increased our deposits and will generate additional fee income. These types of multiple cross-selling opportunities of our diverse product offerings will allow us a unique opportunity to capture long-term customers.

“Our loan deferral balances related to the pandemic also decreased 38% from $182.0 million in the first quarter 2020 to $113.2 million at the end of this second quarter. The difference in the preceding amounts are now back to current principal and interest payments.


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“Growth in net interest income of 15% year over year was partially offset by acquisition-related expenses associated with our purchases of LBC Bancshares, Inc. and PFB Mortgage. Despite the growth in our interest earnings assets, our net interest margin decreased 16 basis points to 3.41% compared with the year-earlier period due to the addition of lower yielding PPP loans offset by lowering our borrowing costs during the quarter as well as lower interest on the level of deposits on our balance sheets.

“Noninterest income saw strong growth, increasing 21% in the second quarter 2020 over the same period last year as a result of our strategic efforts to diversify our revenue streams with mortgage fee income increasing to $1.3 million in the current quarter compared to $544,000 in the second quarter of 2019 due to the acquisition of PFB Mortgage, as well as customers refinancing due to the lower rate environment. This increase in noninterest income was partially offset by increases in noninterest expense, such as increases in salaries and employee benefits due to the additional headcount, as well as increases in occupancy and equipment.

“Despite our strong asset quality, we recorded a higher provision for loan and lease losses in the second quarter of 2020 of $2.2 million, a substantial increase from $179,000 in the second quarter of 2019 and up from $2.0 million in the sequential period, due to increases in our loan portfolio and the current impaired economic operating environment. Our allowance for loan and lease losses now represents 0.92% of total loans outstanding, an increase from 0.73% in the year-earlier quarter and 0.85% on a sequential-quarter basis. Total nonperforming assets in the second quarter of 2020 is 0.75% of total assets, compared to 0.76% in the year-earlier quarter and 0.91% on a sequential-quarter basis.

“As a final thought, against the backdrop of the pandemic and the ensuing disruptions, our team is focused on controlling what we can in order to protect our business. Our investments in strategic acquisitions to diversify our business model, our expenditures in technological enhancements to stay connected to our customers, and our efforts to aggressively protect our capital position and credit metrics allow us to continue to drive our business forward. We also continue to monitor all state and local news to protect our employees and customers. Based on our diversified loan portfolio, capitalization, conservative loan underwriting philosophy and continued growth in several revenue streams, I am confident that we will come out of the current crises stronger,” concluded Fountain.

Balance Sheet

Total assets were $1.78 billion at June 30, 2020, an increase of $262.3 million, or 17.31%, from $1.51 billion at December 31, 2019. The increase in total assets was a result of increased loan production associated with the funding of approximately 1,700 PPP loans which also generated much higher balances in our interest-bearing deposits with other banks as of June 30, 2020.

Total loans, including loans held for sale, were $1.13 billion at June 30, 2020, an increase of $151.6 million, or 15.49%, from $978.9 million at December 31, 2019. The growth in loans was primarily a result of PPP loan production during the second quarter 2020, which totaled $137.8 million in gross PPP loans at June 30, 2020.

Total deposits at June 30, 2020 were $1.42 billion, an increase of $128.0 million, or 9.90%, compared to total deposits of $1.29 billion at December 31, 2019. Noninterest-bearing deposits accounted for the majority of the increase in total deposits, with an increase of $96.2 million, or 41.36%, compared to December 31, 2019. The growth in noninterest-bearing deposits was attributable to PPP-related deposits. In addition, our participation in the PPP loan program resulted in an increase in borrowings, specifically through the Payroll Protection Program Liquidity Facility (“PPPLF”) which totaled $134.5 million at June 30, 2020.


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Capital

Colony continues to maintain a strong capital position, with ratios that exceed regulatory minimums required to be classified as “well-capitalized.” At June 30, 2020, the Company’s preliminary tier one leverage ratio, tier one capital ratio, total risk-based capital ratio and common equity tier one capital ratio were 7.77%, 12.39%, 13.32% and 10.26%, respectively. In comparison, at December 31, 2019, the Company reported tier one leverage ratio, tier one capital ratio, total risk-based capital ratio and common equity tier one capital ratio of 8.92%, 12.52%, 13.17% and 10.33%, respectively.

Net Interest Margin

Net interest income was $13.5 million for the second quarter of 2020, compared with $11.8 million for the same quarter in 2019. Net interest margin for the second quarter of 2020 was 3.41%, down twenty-two basis points on a sequential-quarter basis and twenty basis points compared with the year-earlier quarter. The decrease in net interest margin in the second quarter 2020, was primarily due to lower yielding PPP loans combined with an increase in lower yielding, highly liquid assets.

Asset Quality

Nonperforming assets totaled $13.2 million and $11.6 million at June 30, 2020 and 2019, respectively. OREO and repossessed assets totaled $1.8 million at June 30, 2020, an increase of $741,000 or 70.91%, compared to the same quarter in 2019. While nonperforming assets have increased year-over-year, primarily as a result of increased traditional loan production, asset quality remains strong with overall improvement as of the second quarter of 2020 compared to previous quarter and year-over-year comparisons.

In the second quarter of 2020, net loan charge-offs were $295,000 or 0.12% of average loans compared with net recovery of $21,000 in the second quarter of 2019. The loan loss reserve was $10.3 million or 0.92% of total loans on June 30, 2020, compared with $6.8 million or 0.73% of total loans at June 30, 2019. The loan and lease losses reserve methodology resulted in a $2.2 million provision for loan loss and lease loss expense for the quarter ended June 30, 2020, compared with $179,000 for the comparable 2019 period. The increase in the provision for loan and lease loss expense was directly impacted by the current economic disruptions resulting from the COVID-19 pandemic crisis.

Noninterest Income

Noninterest income totaled $4.8 million for the second quarter of 2020, an increase of $409,000 or 9.2%, on a sequential-quarter comparison. The increase during the second quarter 2020 is primarily a result of significant increases in mortgage loan production because of consumers continuing to refinance due to the lower rate environment.

Noninterest Expense

Noninterest expense totaled $13.4 million for the second quarter of 2020, an increase of $837,000 or 6.59%, on a sequential-quarter comparison. The increase in noninterest expense compared to the previous quarter primarily resulted from increases in salaries and employee benefits and other noninterest expenses. Other noninterest expense, which encompasses several categories of activity, increased primarily due to increases in regulatory assessments and software expenses.


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About Colony Bankcorp

Colony Bankcorp, Inc. is the bank holding company for Colony Bank. Founded in 1975 and headquartered in Fitzgerald, Georgia, Colony operates 33 locations throughout Georgia. The Homebuilder Finance Division helps the local construction industry with building and construction loans, and the Small Business Specialty Lending Division assists small businesses with government guaranteed loans. The Bank also helps its customers achieve their goal of home ownership through Colony Bank Mortgage. Colony’s common stock is traded on the NASDAQ Global Market under the symbol “CBAN.” For more information, please visit www.colony.bank. You can also follow the Company on Facebook or on Twitter @colony_bank.

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; (v) statements regarding the potential effects of the COVID-19 pandemic on the Company’s business and financial results and conditions; and (vi) 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.

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 the COVID-19 pandemic on the Company’s assets, business, cash flows, financial condition, liquidity, prospects and results of operations; potential increases in the provision for loan losses resulting from the COVID-19 pandemic; the Company’s ability to implement its various strategic and growth initiatives; competitive pressures among financial institutions increasing significantly; economic conditions, either nationally or locally, in areas in which the Company conducts operations being less favorable than expected; interest rate risk; legislation or regulatory changes which adversely affect the ability of the consolidated Company to conduct business combinations or new operations, including changes to statutes, regulations or regulatory policies or practices as a result of, or in response to COVID-19; 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 related to the COVID-19 pandemic; and risks that the anticipated benefits from the transactions with LBC Bancshares, Inc. and PFB Mortgage are not realized in the time frame anticipated or at all as a result of changes in general economic 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, 2019, 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.



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Explanation of Certain Unaudited Non-GAAP Financial Measures

The measures entitled operating noninterest expense; operating net income; adjusted earnings per diluted share; tangible book value per common share and operating efficiency ratio 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 expense, net income, diluted earnings per share, book value per common share and efficiency ratio, respectively.

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 expense; operating net income; adjusted earnings per diluted share; tangible book value per common share and operating efficiency ratio and the reconciliation of these measures to noninterest expense, net income, diluted earning per share, book value per common share and efficiency ratio are set forth in the table below.

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Colony Bankcorp, Inc.
Reconciliation of Non-GAAP Measures

20202019
(dollars in thousands, except per share data)
Second QuarterFirst QuarterFourth QuarterThird QuarterSecond Quarter
Operating noninterest expense reconciliation
Noninterest expense (GAAP)$13,375  $13,251  $13,496  $13,358  $13,014  
Acquisition-related expenses(220) (287) (861) (2,076) (1,928) 
Operating noninterest expense $13,155  $12,964  $12,635  $11,282  $11,086  
Operating net income reconciliation
Net income (GAAP)$2,214  $1,603  $2,756  $2,518  $2,101  
Acquisition-related expenses220  287  335  861  1,928  
Income tax benefit(46) (60) (70) (181) (404) 
Operating net income $2,388  $1,830  $3,021  $3,198  $3,625  
Weighted average diluted shares9,498,783  9,498,783  9,494,859  9,494,771  9,089,461  
Adjusted earnings per diluted share$0.25  $0.19  $0.32  $0.34  $0.40  
Tangible book value per common share reconciliation
Book value per common share (GAAP)$14.59  $14.35  $13.74  $13.65  $13.32  
Effect of goodwill and other intangibles(1.96) (2.06) (2.06) (2.04) (2.07) 
Tangible book value per common share
$12.63  $12.29  $11.68  $11.61  $11.25  
Operating efficiency ratio calculation
Efficiency ratio (GAAP)72.75 %77.32 %77.24 %79.94 %82.24 %
Acquisition-related expenses(1.20) (1.68) (1.92) (5.26) (12.18) 
Operating efficiency ratio 71.55 %75.64 %75.32 %74.68 %70.06 %
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Colony Bankcorp, Inc.
Selected Financial Information

20202019
(dollars in thousands, except per share data)Second QuarterFirst QuarterFourth QuarterThird QuarterSecond Quarter
EARNINGS SUMMARY
Net interest income$13,541  $12,704  $12,992  $12,648  $11,825  
Provision for loan losses2,200  1,956  581  214  179  
Non-interest income4,843  4,434  4,412  4,039  4,000  
Non-interest expense13,375  13,251  13,496  13,358  13,014  
Income taxes595  328  571  597  531  
Net income2,214  1,603  2,756  2,518  2,101  
PERFORMANCE MEASURES
Per common share:
Common shares outstanding9,498,783  9,498,783  9,498,783  9,498,783  9,498,937  
Weighted average basic shares9,498,783  9,498,783  9,494,859  9,494,771  9,089,461  
Weighted average diluted shares9,498,783  9,498,783  9,494,859  9,494,771  9,089,461  
Earnings per basic share$0.23  $0.17  $0.29  $0.27  $0.23  
Earnings per diluted share0.23  0.17  0.29  0.27  0.23  
Adjusted earnings per diluted share0.25  0.19  0.32  0.34  0.40  
Cash dividends declared per share0.10  0.10  0.075  0.075  0.075  
Common book value per share14.59  14.35  13.74  13.65  13.32  
Tangible common book value per share12.63  12.29  11.68  11.61  11.25  

Performance ratios:
Net interest margin (a)
3.41 %3.63 %3.72 %3.64 %3.61 %
Return on average assets0.52  0.42  0.73  0.67  0.60  
Return on average total equity6.47  4.79  8.47  7.86  7.43  
Efficiency ratio
72.75  77.32  77.24  79.94  82.24  
Operating efficiency ratio (b)
71.55  75.64  75.32  74.68  70.06  
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ASSET QUALITY
Nonperforming loans (NPLs)$11,459  $10,130  $9,179  $9,572  $10,383  
Other real estate owned1,769  847  1,320  775  987  
Repossessed assets17  19  13   58  
Total nonperforming assets (NPAs)13,245  10,996  10,512  10,355  11,428  
Classified loans 20,619  23,093  21,084  20,103  23,656  
Criticized loans52,200  46,600  51,182  42,765  42,336  
Net loan charge-offs 295  435  317  403  (21) 
Allowance for loan losses to total loans0.92 %0.85 %0.71 %0.69 %0.73 %
Allowance for loan losses to total NPLs89.79  64.81  74.77  68.95  65.38  
Allowance for loan losses to total NPAs77.68  60.83  65.29  63.73  59.41  
Net charge-offs to average loans0.12  0.18  0.13  0.17  —  
NPLs to total loans1.03  1.13  0.95  1.00  1.11  
NPAs to total assets0.75  0.91  0.69  0.70  0.76  
NPAs to total loans and other real estate owned1.19  1.39  1.08  1.08  1.18  
AVERAGE BALANCES
Total assets $1,702,902  $1,516,191  $1,503,521  $1,492,852  $1,409,265  
Loans, net1,016,787  974,614  961,756  942,356  866,841  
Deposits1,384,739  1,293,784  1,278,987  1,272,561  1,219,274  
Total stockholders’ equity137,213  134,304  130,217  128,172  113,161  
(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
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Colony Bankcorp, Inc.
Average Balance Sheet and Net Interest Analysis
(dollars in thousands)
Six Months Ended June 30,
20202019
Average
Balances
Income/
Expense
Yields/
Rates
Average
Balances
Income/
Expense
Yields/
Rates
Assets
Interest-earning assets:
Loans, net of unearned income 1$1,037,242  $26,989  5.22 %$828,234  $22,783  5.52 %
Investment securities, taxable335,836  $3,746  2.24 %376,161  $4,596  2.45 %
Investment securities, tax-exempt 24,941  $42  1.70 %2,103  $28  2.67 %
Deposits in banks and short term investments122,885  $332  0.54 %61,429  $704  2.30 %
Total interest-earning assets1,500,904  31,109  4.16 %1,267,927  28,111  4.45 %
Noninterest-earning assets106,932  66,888  
Total assets$1,607,836  $1,334,815  
Liabilities and stockholders' equity
Interest-bearing liabilities:
Interest-earning demand and savings$747,273  $1,342  0.36 %$596,212  $1,974  0.66 %
Other time323,073  2,279  1.41 %355,731  2,780  1.57 %
Total interest-bearing deposits1,070,346  3,621  0.68 %951,943  4,754  1.00 %
Federal Home Loan Bank advances41,038  468  2.29 %46,218  506  2.20 %
Paycheck Protection Program Liquidity Facility49,561  87  0.35 %—  —  — %
Other borrowings38,745  688  3.56 %24,229  669  5.54 %
Total other interest-bearing liabilities129,344  1,243  1.93 %70,447  1,175  3.35 %
Total interest-bearing liabilities1,199,690  4,864  0.81 %1,022,390  5,929  1.16 %
Noninterest-bearing liabilities:
Demand deposits$266,163  $204,012  
Other liabilities6,223  3,571  
Stockholders' equity135,760  104,842  
Total noninterest-bearing liabilities and stockholders' equity408,146  312,425  
Total liabilities and stockholders' equity$1,607,836  $1,334,815  
Interest rate spread3.34 %3.28 %
Net interest income$26,245  $22,182  
Net interest margin3.51 %3.51 %
1The average balance of loans includes the average balance of nonaccrual loans. Income on such loans is recognized and recorded on the cash basis.
2 Taxable-equivalent adjustments totaling $37,000 and $43,000 six months period ended June 30, 2020 and 2019, respectively, are included in tax-exempt interest on investment securities. The adjustments are based on federal tax rate of 21% with appropriate reductions for the effect of disallowed interest expense incurred in carrying tax-exempt obligations.



Three Months Ended June 30,
20202019
Average
Balances
Income/
Expense
Yields/
Rates
Average
Balances
Income/
Expense
Yields/
Rates
Assets
Interest-earning assets:
Loans, net of unearned income 3$1,094,299  $13,699  5.02 %$866,841  $12,313  5.70 %
Investment securities, taxable331,378  1,757  2.13 %385,374  2,399  2.50 %
Investment securities, tax-exempt 48,959  37  1.66 %2,228  17  3.06 %
Deposits in banks and short term investments159,902  48  0.12 %59,894  369  2.47 %
Total interest-earning assets1,594,538  15,541  3.91 %1,314,337  15,098  4.61 %
Noninterest-earning assets108,364  94,928  
Total assets$1,702,902  $1,409,265  
Liabilities and stockholders' equity
Interest-bearing liabilities:
Interest-earning demand and savings$766,692  $407  0.21 %$624,196  $1,136  0.73 %
Other time311,334  996  1.28 %368,116  1,496  1.63 %
Total interest-bearing deposits1,078,026  1,403  0.52 %992,312  2,632  1.06 %
Federal Home Loan Bank advances36,500  211  2.32 %49,070  374  3.06 %
Paycheck Protection Program Liquidity Facility99,124  87  0.35 %—  —  — %
Other borrowings38,694  299  3.10 %24,229  267  4.42 %
Total other interest-bearing liabilities174,318  597  1.37 %73,299  641  3.51 %
Total interest-bearing liabilities1,252,344  2,000  0.64 %1,065,611  3,273  1.23 %
Noninterest-bearing liabilities:
Demand deposits$306,713  $226,862  
Other liabilities6,632  3,631  
Stockholders' equity137,213  113,161  
Total noninterest-bearing liabilities and stockholders' equity450,558  343,654  
Total liabilities and stockholders' equity$1,702,902  $1,409,265  
Interest rate spread3.27 %3.38 %
Net interest income$13,541  $11,825  
Net interest margin3.41 %3.61 %
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.
4 Taxable-equivalent adjustments totaling $6,000 and $9,000 for the three months period ended June 30, 2020 and 2019, respectively, are included in tax-exempt interest on investment securities. The adjustments are based on federal tax rate of 21% with appropriate reductions for the effect of disallowed interest expense incurred in carrying tax-exempt obligations.



Colony Bankcorp, Inc.
Payroll Protection Program Analytics
Three Months EndedSix Month Ended
June 30, 2020June 30, 2020
Net interest margin3.41 %3.51 %
Paycheck protection program(0.04)%(0.02)%
Adjusted net interest margin3.37 %3.49 %
Net interest spread3.27 %3.34 %
Paycheck protection program(0.06)%(0.03)%
Adjusted net interest spread3.21 %3.31 %
Allowance for loan loss to total loans0.92 %0.92 %
Paycheck protection program0.13 %0.13 %
Adjusted allowance for loan loss to total loans1.05 %1.05 %
NPLs to total loans1.07 %1.07 %
Paycheck protection program0.14 %0.14 %
Adjusted NPLs to total loans1.21 %1.21 %
NPA to total assets0.77 %0.77 %
Paycheck protection program0.06 %0.06 %
Adjusted NPA to total assets0.83 %0.83 %
NPAs to total loans and other real estate1.22 %1.22 %
Paycheck protection program0.17 %0.17 %
Adjusted NPAs to total loans and other real estate1.39 %1.39 %



Colony Bankcorp, Inc.
Segment Reporting

Three Months Ended June 30,Six Months Ended June 30,
(dollars in thousands)
2020201920202019
Banking Division
Net interest income$12,730  $11,806  $25,386  $22,163  
Provision for loan losses2,200  179  4,156  310  
Noninterest income2,901  3,148  5,950  5,482  
Noninterest expenses11,045  12,168  22,712  21,194  
Income taxes320  525  688  1,224  
Segment profit $2,066  $2,082  $3,780  $4,917  

Total segment assets
$1,622,608  $1,502,974  $1,622,608  $1,502,974  

Mortgage Banking Division
Net interest income$82  $19  $116  $19  
Provision for loan losses—  —  —  —  
Noninterest income1,821  852  3,074  852  
Noninterest expenses1,697  846  2,892  846  
Income taxes43   54   
Segment profit $163  $19  $244  $19  

Total segment assets
$17,578  $3,998  $17,578  $3,998  
Small Business Specialty Lending Division
Net interest income$729  $—  $743  $—  
Provision for loan losses—  —  —  —  
Noninterest income121  —  380  —  
Noninterest expenses633  —  1,149  —  
Income taxes232  —  181  —  
Segment loss$(15) $—  $(207) $—  
Total segment assets
$137,382  $—  $137,382  $—  
Total Consolidated
Net interest income$13,541  $11,825  $26,245  $22,182  
Provision for loan losses2,200  179  4,156  310  
Noninterest income4,843  4,000  9,404  6,334  
Noninterest expenses13,375  13,014  26,753  22,040  
Income taxes595  531  923  1,230  
Segment profit $2,214  $2,101  $3,817  $4,936  
Total segment assets
$1,777,568  $1,506,972  $1,777,568  $1,506,972  



Colony Bankcorp, Inc.
Consolidated Balance Sheets

June 30, 2020December 31, 2019
(dollars in thousands)
(unaudited)(audited)
ASSETS


Cash and due from banks$17,313  $15,570  
Interest-bearing deposits in banks and federal funds sold173,733  88,522  
Cash and cash equivalents191,046  104,092  
Investment securities available for sale, at fair value373,610  347,332  
Other investments, at cost3,954  4,288  
Loans held for sale16,537  10,076  
Loans, net of unearned income1,113,977  968,814  
Allowance for loan losses(10,289) (6,863) 
Loans, net 1,103,688  961,951  
Premises and equipment33,276  32,482  
Other real estate1,769  1,320  
Goodwill and other intangible assets18,670  19,533  
Other assets35,018  34,239  
Total assets$1,777,568  $1,515,313  

LIABILITIES AND STOCKHOLDERS’ EQUITY

Liabilities:

Deposits:
Noninterest-bearing$328,850  $232,635  
Interest-bearing1,092,908  1,061,107  
Total deposits
1,421,758  1,293,742  
Federal Home Loan Bank advances36,500  47,000  
Paycheck Protection Program Liquidity Facility134,500  —  
Other borrowed money38,292  38,792  
Accrued expenses and other liabilities7,924  5,273  
Total liabilities1,638,974  1,384,807  
Stockholders’ equity
Common stock, $1 par value; 20,000,000 shares authorized, 9,498,783 issued and outstanding, respectively9,499  9,499  
Paid in capital43,199  43,667  
Retained earnings78,895  76,978  
Accumulated other comprehensive income, net of tax7,001  362  
Total stockholders’ equity