Colony Bankcorp Reports Second Quarter 2022 Results

Rhea-AI Summary

Colony Bankcorp (CBAN) announced its second quarter 2022 results, reporting a net income decrease to $3.4 million ($0.19 per share), down from $5.3 million the previous quarter. Operating net income was $5.2 million ($0.30 per share). A provision for loan losses surged to $1.1 million due to increased loan growth. Loans reached $1.5 billion, up 7.3% from the prior quarter. The Board declared a cash dividend of $0.1075 per share, payable on August 20, 2022. Asset quality remained strong, with nonperforming assets reducing to $5.2 million.

Positive

• Total loans increased by $99 million, or 7.3%, to $1.5 billion.
• Noninterest income rose to $10.1 million, a 29.8% increase year-over-year.
• The company maintains a strong capital position exceeding regulatory capital requirements.

Negative

• Net income decreased to $3.4 million, a decline from $5.3 million in the previous quarter.
• A significant provision for loan losses of $1.1 million recorded, up from $50,000 in the previous quarter.
• Noninterest expense increased to $24.5 million, up from $17.5 million year-over-year.

Declares Quarterly Cash Dividend of $0.1075 Per Share

FITZGERALD, Ga.--(BUSINESS WIRE)-- Colony Bankcorp, Inc. (Nasdaq: CBAN) (“Colony” or the “Company”) today reported financial results for the second quarter of 2022. Financial highlights are shown below.

Financial Highlights:

• Net income decreased to $3.4 million, or $0.19 per diluted share, for the second quarter of 2022, compared to $5.3 million, or $0.34 per diluted share, for the first quarter of 2022, and $4.0 million, $0.42 per diluted share, for the second quarter of 2021.
• Operating net income of $5.2 million, or $0.30 per diluted share, for the second quarter of 2022 as compared to $5.4 million, or $0.37 per diluted share, for the first quarter of 2022, and $4.5 million, or $0.49 per diluted share, for the second quarter of 2021 (see Reconciliation of Non-GAAP Measures).
• The Company made significant progress in its hiring initiatives, including hiring several new commercial bankers and promoting a new Chief Financial Officer.
• $1.1 million in provision for loan losses was recorded in second quarter of 2022, compared to $50,000 recorded in first quarter of 2022, and no provision recorded in second quarter of 2021.
• Non-recurring charges of $1.35 million related to previously announced efficiency efforts were incurred during the second quarter of 2022.
• Due to the unusual interest rate environment, the company experienced accelerated amortization on purchased callable FHLB advances totaling $751,000 and a valuation decline of its SBSL servicing asset of $316,000.
• Total loans, excluding loans held for sale and loans that originated under the Paycheck Protection Program (the “PPP”), totaled $1.5 billion at June 30, 2022, an increase of $99.0 million, or 7.3% from the prior quarter.
• Mortgage production was $113.7 million, and mortgage sales totaled $82.3 million in the second quarter of 2022.
• Small Business Specialty Lending (“SBSL”) closed $21.0 million in Small Business Administration (“SBA”) loans and sold $18.4 million in SBA loans in the second quarter of 2022.

The Company also announced that on July 21, 2022, the Board of Directors declared a quarterly cash dividend of $0.1075 per share, to be paid on its common stock on August 20, 2022, to shareholders of record as of the close of business on August 6, 2022. The Company had 17,581,212 shares of its common stock outstanding as of July 20, 2022.

Commenting on the announcement, Heath Fountain, President and Chief Executive Officer, said, “While there were several moving parts during the quarter, we continue to position Colony for strong financial performance. In the quarter, we completed a $40 million subordinated debt offering, hired commercial bankers in the Atlanta, Birmingham and Huntsville markets, and grew loans, excluding loans held for sale, by almost $100 million, or nearly 30% annualized. Atypical expenses during the quarter totaled approximately $2.3 million, primarily for the previously announced charge for the efficiency project, and $751,000 of accelerated amortization of purchased FHLB borrowings called during the quarter. While asset quality metrics are strong and improving, we recorded higher provision expense than anticipated due to loan growth being meaningfully higher than projected.”

“Finally, we do expect to show continued strong asset generation for the next few quarters. The current loan pipelines remain very strong, and we continue to recruit seasoned banking professionals throughout our footprint.”

Balance Sheet

• Total assets were $2.7 billion at June 30, 2022, a slight increase of $41.6 million from March 31, 2022.
• Total loans, including loans held for sale, were at $1.49 billion at June 30, 2022, an increase of $113.1 million from the quarter ended March 31, 2022.
• Total deposits were $2.3 billion and $2.4 billion at June 30, 2022 and March 31, 2022, respectively, with a slight decrease of $19.3 million.
• Total borrowings at June 30, 2022 totaled $152.1 million, an increase of $92.1 million or, 153.3%, compared to March 31, 2022 related to the subordinated debt issued in May 2022 and federal funds purchased outstanding at June 30, 2022.

Capital

• Colony continues to maintain a strong capital position, with ratios that exceed regulatory minimums required to be considered as “well-capitalized.”
• Preliminary tier one leverage ratio, tier one capital ratio, total risk-based capital ratio and common equity tier one capital ratio were 10.74%, 15.80%, 16.55%, and 12.39%, respectively, at June 30, 2022.

Second Quarter and June 30, 2022 Year to Date Results of Operations

• Net interest income, on a tax-equivalent basis, for the second quarter of 2022 totaled $19.3 million, compared to $15.2 million for the second quarter of 2021. Net interest income, on a tax-equivalent basis, for the six months ended June 30, 2022 totaled $38.6 million, compared to $29.6 million for the six months ended June 30, 2021. The increase during the quarter and six months ended June 30, 2022 compared to the same period in 2021 is primarily attributable to interest income related to loans acquired in the acquisition of SouthCrest Financial Group, Inc. (“SouthCrest”) in August of 2021.
• Net interest margin decreased 53 basis points from the second quarter of 2021, but increased two basis point from the first quarter of 2022. Net interest margin for the six months ended June 30, 2022 decreased 42 basis points from the six months ended June 30, 2021, but increased one point from the first quarter 2022. Two borrowings from the acquisition of SouthCrest were called and the remaining mark of approximately $750,000 was recognized in interest expense this quarter.
• Noninterest income totaled $10.1 million for the second quarter ended June 30, 2022, an increase of $2.3 million, or 29.8%, compared to the same period in 2021. The increase was primarily attributable to SBSL loan sales, SouthCrest and insurance company acquisitions, growth in interchange fee income and service charges on deposits offset by a decrease in mortgage fee income. Noninterest income totaled $19.2 million for the six months ended June 30, 2022, an increase of $2.9 million, or 17.45%, compared to the same period in 2021. The increase was primarily attributable to SBSL loan sales, SouthCrest and insurance company acquisitions, growth in interchange fee income and service charges on deposits offset by a decrease in mortgage fee income.
• Noninterest expense totaled $24.5 million for the second quarter ended June 30, 2022, compared to $17.5 million for the same period in 2021. Noninterest expense totaled $46.3 million for the six months ended June 30, 2022, compared to $33.2 million for the same period in 2021. The increases were primarily related to increase in salaries, information technology, and communications related to the acquisition of SouthCrest in August of 2021.

Asset Quality

• Nonperforming assets totaled $5.2 million and $6.5 million at June 30, 2022 and March 31, 2022, respectively, a decrease of $1.2 million.
• Other real estate owned and repossessed assets totaled approximately $293,000 at June 30, 2022, and March 31, 2022.
• Net loans charged-off were $58,000, or 0.02% of average loans for the second quarter of 2022, compared to net charge-offs of $41,000 or 0.01% for the first quarter of 2022.
• The loan loss reserve was $14.0 million, or 0.96% of total loans, at June 30, 2022, compared to $12.9 million, or 0.95% of total loans, at March 31, 2022.

As noted above and in the Selected Financial Information table, overall asset quality remains strong.

Earnings call information

The Company will host an earnings conference call at 5:00 p.m. EDT on Thursday, July 21, 2022, to discuss the recent results and answer appropriate questions. The conference call can be accessed by dialing 1-844-200-6205 (or 1-929-526-1599 for international participants). The conference call access code is 981866. A replay of the call will be available until Friday, July 29, 2022. To listen to the replay, dial 1-866-813-9403 and enter the access code 213634.

About Colony Bankcorp

Colony Bankcorp, Inc. is the bank holding company for Colony Bank. Founded in 1975 and headquartered in Fitzgerald, Georgia, Colony operates 41 locations throughout Georgia. At Colony Bank, we offer a wide range of banking services including personal banking, business banking, mortgage solutions, government guaranteed lending solutions, and more. We have expanded our services to also include consumer insurance products, such as automotive, homeowners, and other insurance needs for our community. 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 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; (v) statements regarding the effects of the COVID-19 pandemic and related variants 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 continued impact of the COVID-19 pandemic and related variants on the Company’s assets, business, cash flows, financial condition, liquidity, prospects and results of operations; 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; changes in the prices, values and sales volumes of residential and commercial real estate; interest rate risk; 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 related to the COVID-19 pandemic and related variants; higher inflation and its impacts; the effects of war or other conflicts including the impacts related to or resulting from Russia’s military action in Ukraine; risks related to the Company’s recently completed acquisitions, including that the anticipated benefits from the recently completed acquisitions 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; the risks associated with the Company’s pursuit of future acquisitions; 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, 2021, 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 net income, adjusted earnings per diluted share, tangible book value per common share, tangible equity to tangible assets, operating efficiency ratio 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 net income, diluted earnings per share, book value per common share, total equity to total assets, and efficiency ratio, respectively. Operating net income and operating efficiency ratio both exclude acquisition-related expenses. Acquisition-related expenses include fees associated with current period acquisitions and ongoing amortization of intangibles related to prior acquisitions. 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.

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

Colony Bankcorp, Inc.
Reconciliation of Non-GAAP Measures
		2022								2021
(dollars in thousands, except per share data)		Second Quarter				First Quarter				Fourth Quarter				Third Quarter				Second Quarter
Operating net income reconciliation
Net income (GAAP)		$	3,416			$	5,324			$	4,160			$	5,583			$	3,997
FHLB mark from called borrowings			751				—				—				—				—
Severance costs			1,346				—				—				—				—
Acquisition-related expenses			1				139				1,261				1,794				698
Writedown of bank premises			—				—				90				—				—
Income tax benefit			(272	)			(26	)			(284	)			(466	)			(181	)
Operating net income		$	5,242			$	5,437			$	5,227			$	6,911			$	4,514
Weighted average diluted shares			17,586,298				15,877,695				13,673,998				12,344,926				9,498,783
Adjusted earnings per diluted share		$	0.30			$	0.37			$	0.40			$	0.57			$	0.49
Tangible book value per common share reconciliation
Book value per common share (GAAP)		$	13.34			$	14.23			$	15.92			$	15.88			$	15.46
Effect of goodwill and other intangibles			(3.44	)			(3.40	)			(4.51	)			(4.46	)			(1.89	)
Tangible book value per common share		$	9.90			$	10.83			$	11.41			$	11.42			$	13.57
Tangible equity to tangible assets reconciliation
Equity to assets (GAAP)			9.32	%			9.32	%			8.09	%			8.64	%			8.37	%
Effect of goodwill and other intangibles			(2.79	) %			(2.07	) %			(2.15	) %			(2.27	) %			(0.99	) %
Tangible equity to tangible assets			6.52	%			7.25	%			5.93	%			6.37	%			7.38	%
Operating efficiency ratio calculation
Efficiency ratio (GAAP)			83.75	%			76.94	%			82.15	%			77.68	%			76.53	%
Severance costs			(4.61	)			—				—				—				—
Acquisition-related expenses			—				(2.20	)			(5.33	)			(7.30	)			(3.79	)
Writedown of bank premises			—				—				(0.30	)			—				—
Operating efficiency ratio			79.14	%			74.74	%			76.52	%			70.38	%			72.74	%
Pre-provision net revenue
Net interest income before provision (credit) for credit losses		$	19,167			$	19,188			$	19,022			$	17,868			$	15,069
Noninterest income			10,057				9,152				10,815				9,438				7,751
		$	29,224			$	28,340			$	29,837			$	27,306			$	22,820
Noninterest expense			24,475				21,805				24,512				21,211				17,465
Pre-provision net revenue		$	4,749			$	6,535			$	5,325			$	6,095			$	5,355

Colony Bankcorp, Inc.
Selected Financial Information
		2022								2021
(dollars in thousands, except per share data)		Second Quarter				First Quarter				Fourth Quarter				Third Quarter				Second Quarter
EARNINGS SUMMARY
Net interest income		$	19,167			$	19,188			$	19,022			$	17,868			$	15,069
Provision for loan losses			1,100				50				50				150				—
Non-interest income			10,057				9,152				10,815				9,438				7,751
Non-interest expense			24,475				21,805				24,512				21,211				17,465
Income taxes			233				1,161				1,116				362				1,358
Net income			3,416				5,324				4,159				5,583				3,997
PERFORMANCE MEASURES
Per common share:
Common shares outstanding			17,581,212				17,586,333				13,673,898				13,674,198				9,498,783
Weighted average basic shares			17,586,298				15,877,695				13,673,998				12,344,926				9,498,783
Weighted average diluted shares			17,586,298				15,877,695				13,673,998				12,344,926				9,498,783
Earnings per basic share		$	0.19			$	0.34			$	0.30			$	0.45			$	0.42
Earnings per diluted share			0.19				0.34				0.30				0.45				0.42
Adjusted earnings per diluted share(b)			0.30				0.37				0.40				0.57				0.49
Cash dividends declared per share			0.1075				0.1075				0.1025				0.1025				0.1025
Common book value per share			13.34				14.23				15.92				15.88				15.46
Tangible book value per common share(b)			9.90				10.83				11.41				11.42				13.50
Pre-provision net revenue		$	4,749			$	6,535			$	5,325			$	6,095			$	5,355
Performance ratios:
Net interest margin (a)			3.15	%			3.13	%			3.16	%			3.48	%			3.68	%
Return on average assets			0.51				0.81				0.64				1.00				0.91
Return on average total equity			5.68				8.88				7.65				11.49				11.14
Efficiency ratio			83.75				76.94				82.15				77.68				76.53
Operating efficiency ratio (b)			79.14				74.74				76.52				70.38				72.74
ASSET QUALITY
Nonperforming loans (NPLs)		$	4,948			$	6,171			$	5,449			$	12,246			$	9,205
Other real estate owned			246				246				281				807				270
Repossessed assets			47				48				49				3				29
Total nonperforming assets (NPAs)			5,241				6,465				5,779				13,056				9,504
Classified loans			19,247				18,306				19,016				30,300				30,852
Criticized loans			49,204				52,859				58,938				61,857				64,818
Net loan (recoveries)/charge-offs			58				41				(17	)			144				(178	)
Allowance for loan losses to total loans			0.96	%			0.95	%			0.96	%			0.98	%			1.26	%
Allowance for loan losses to total NPLs			282.19				209.35				236.92				105.15				140.15
Allowance for loan losses to total NPAs			266.42				199.83				223.40				98.63				135.73
Net (recoveries)/charge-offs to average loans			0.02				0.01				(0.01	)			0.05				(0.09	)
NPLs to total loans			0.34				0.46				0.41				0.93				0.90
NPAs to total assets			0.19				0.24				0.21				0.52				0.54
NPAs to total loans and foreclosed assets			0.36				0.48				0.43				1.00				0.93
AVERAGE BALANCES
Total assets			2,676,612				2,679,242				2,589,908				2,272,904				1,777,559
Loans, net			1,384,795				1,333,784				1,306,796				1,218,102				1,052,645
Loans, held for sale			29,843				28,650				38,543				24,964				24,139
Deposits			2,325,756				2,341,357				2,274,910				1,975,418				1,547,139
Total stockholders’ equity			241,281				243,120				215,783				197,109				144,761
(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
		Six Months Ended June 30,
		2022									2021
(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		$	1,395,179		$	32,339		4.68	%		$	1,077,859		$	27,805		5.20	%
Investment securities, taxable			842,491			8,084		1.94	%			394,431			3,401		1.74	%
Investment securities, tax-exempt 2			112,843			1,022		1.83	%			32,887			314		1.93	%
Deposits in banks and short term investments			117,177			159		1.84	%			164,882			97		0.12	%
Total interest-earning assets			2,467,689			41,605		3.40	%			1,670,059			31,617		3.82	%
Noninterest-earning assets			210,625									105,746
Total assets		$	2,678,314								$	1,775,805
Liabilities and stockholders' equity
Interest-bearing liabilities:
Interest-earning demand and savings		$	1,437,325		$	568		0.08	%		$	880,838		$	311		0.07	%
Other time			335,744			657		0.39	%			257,173			912		0.72	%
Total interest-bearing deposits			1,773,069			1,225		0.14	%			1,138,011			1,223		0.22	%
Federal funds purchased			3,978			27		1.35	%			—			—		—	%
Federal Home Loan Bank advances3			49,100			1,195		4.91	%			22,500			230		2.06	%
Paycheck Protection Program Liquidity Facility			—			—		—	%			51,516			93		0.36	%
Other borrowings			38,492			608		3.18	%			37,715			514		2.75	%
Total other interest-bearing liabilities			91,570			1,830		4.03	%			111,731			837		1.51	%
Total interest-bearing liabilities			1,864,639			3,055		0.33	%			1,249,742			2,060		0.33	%
Noninterest-bearing liabilities:
Demand deposits		$	560,444								$	373,728
Other liabilities			15,013									6,791
Stockholders' equity			242,196									145,544
Total noninterest-bearing liabilities and stockholders' equity			817,653									526,063
Total liabilities and stockholders' equity		$	2,682,292								$	1,775,805
Interest rate spread								3.07	%								3.49	%
Net interest income					$	38,550								$	29,557
Net interest margin								3.15	%								3.57	%

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 $62,000 and $124,000 for the six months ended June 30, 2022 and 2021, respectively, are included in income and fees on loans. Accretion income of $429,000 and $313,000 for the six months ended June 30, 2022 and 2021 are also included in income and fees on loans.
2		Taxable-equivalent adjustments totaling $133,000 and $84,000 for the six months ended June 30, 2022 and 2021, respectively, are included in tax-exempt interest on investment securities.
3		Federal Home Loan Bank advances interest expense includes $751,000 for the six months ended June 30, 2022 and is the recognized mark on two advances that were acquired in the SouthCrest acquisition that were called early.

Colony Bankcorp, Inc.
Average Balance Sheet and Net Interest Analysis
		Three Months Ended June 30,
		2022									2021
(dollars in thousands)		Average Balances			Income/ Expense			Yields/ Rates			Average Balances			Income/ Expense			Yields/ Rates
Assets
Interest-earning assets:
Loans, net of unearned income 4		$	1,427,563		$	16,317		4.58	%		$	1,076,784		$	14,165		5.34	%
Investment securities, taxable			842,481			4,332		2.06	%			417,343			1,794		1.74	%
Investment securities, tax-exempt 5			114,658			542		1.89	%			33,156			160		1.96	%
Deposits in banks and short term investments			73,190			103		0.68	%			146,591			45		0.12	%
Total interest-earning assets			2,457,891			21,294		3.47	%			1,673,874			16,164		3.92	%
Noninterest-earning assets			218,721									103,685
Total assets		$	2,676,612								$	1,777,559
Liabilities and stockholders' equity
Interest-bearing liabilities:
Interest-earning demand and savings		$	1,429,331		$	307		0.09	%		$	901,978		$	146		0.07	%
Other time			328,355			319		0.39	%			253,944			423		0.68	%
Total interest-bearing deposits			1,757,686			626		0.14	%			1,155,922			569		0.20	%
Federal funds purchased			7,916			27		1.35	%			—			—		—	%
Federal Home Loan Bank advances6			46,550			943		8.12	%			22,500			115		2.09	%
Paycheck Protection Program Liquidity Facility			—			—		—	%			19,031			25		0.53	%
Other borrowings			44,729			409		2.28	%			37,536			258		2.78	%
Total other interest-bearing liabilities			99,195			1,379		5.58	%			79,067			398		2.04	%
Total interest-bearing liabilities			1,856,881			2,005		0.43	%			1,234,989			967		0.32	%
Noninterest-bearing liabilities:
Demand deposits		$	568,070								$	391,217
Other liabilities			10,380									6,592
Stockholders' equity			241,281									144,761
Total noninterest-bearing liabilities and stockholders' equity			819,731									542,570
Total liabilities and stockholders' equity		$	2,676,612								$	1,777,559
Interest rate spread								3.04	%								3.60	%
Net interest income					$	19,289								$	15,197
Net interest margin								3.15	%								3.68	%

4		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 $31,000 and $67,000 for the quarters ended June 30, 2022 and 2021, respectively, are included in income and fees on loans. Accretion income of $269,000 and $104,000 for the quarter ended June 30, 2022 and 2021 are also included in income and fees on loans.
5		Taxable-equivalent adjustments totaling $70,000 and $43,000 for the quarters ended June 30, 2022 and 2021, respectively, are included in tax-exempt interest on investment securities.
6		Federal Home Loan Bank advances interest expense includes $751,000 for the quarters ended June 30, 2022 is the recognized mark on two advances that were acquired in the SouthCrest acquisition that were called early.

Colony Bankcorp, Inc.
Segment Reporting
		2022							2021
(dollars in thousands)		Second Quarter				First Quarter			Fourth Quarter			Third Quarter				Second Quarter
Banking Division
Net interest income		$	18,819			$	18,824		$	18,316		$	17,181			$	14,864
Provision for loan losses			1,100				50			50			150				—
Noninterest income			5,186				4,300			4,480			4,340				3,354
Noninterest expenses			19,503				17,701			19,280			16,941				13,366
Income taxes			226				900			475			434				1,241
Segment income		$	3,176			$	4,473		$	2,991		$	3,996			$	3,611
Total segment assets		$	2,664,657			$	2,627,450		$	2,620,501		$	2,499,223			$	1,710,345
Full time employees			396				404			400			417				294
Mortgage Banking Division
Net interest income		$	57			$	71		$	114		$	138			$	123
Provision for loan losses			—				—			—			—				—
Noninterest income			2,736				2,912			3,102			3,104				2,997
Noninterest expenses			2,799				2,711			2,869			2,765				2,887
Income taxes			(7	)			101			334			(290	)			60
Segment income		$	1			$	171		$	13		$	767			$	173
Total segment assets		$	20,183			$	19,417		$	25,149		$	21,184			$	25,149
Full time employees			59				62			55			53				53
Small Business Specialty Lending Division
Net interest income		$	291			$	293		$	592		$	549			$	82
Provision for loan losses			—				—			—			—				—
Noninterest income			2,135				1,940			3,233			1,994				1,400
Noninterest expenses			2,173				1,393			2,363			1,505				1,212
Income taxes			14				160			307			218				57
Segment income		$	239			$	680		$	1,155		$	820			$	213
Total segment assets		$	43,553			$	39,921		$	46,065		$	23,291			$	20,024
Full time employees			28				28			26			24				24
Total Consolidated
Net interest income		$	19,167			$	19,188		$	19,022		$	17,868			$	15,069
Provision for loan losses			1,100				50			50			150				—
Noninterest income			10,057				9,152			10,815			9,438				7,751
Noninterest expenses			24,475				21,805			24,512			21,211				17,465
Income taxes			233				1,161			1,116			362				1,358
Segment income		$	3,416			$	5,324		$	4,159		$	5,583			$	3,997
Total segment assets		$	2,728,393			$	2,686,788		$	2,691,715		$	2,543,698			$	1,755,518
Full time employees			483				494			481			494				371

Colony Bankcorp, Inc.
Consolidated Balance Sheets
		June 30, 2022				December 31, 2021
(dollars in thousands)		(unaudited)				(audited)
ASSETS
Cash and due from banks		$	23,133			$	18,975
Interest-bearing deposits in banks and federal funds sold			53,349				178,257
Cash and cash equivalents			76,482				197,232
Investment securities available for sale, at fair value			657,546				938,164
Investment securities held to maturity, at amortized cost			304,014				—
Other investments, at cost			12,968				14,012
Loans held for sale			38,526				38,150
Loans, net of unearned income			1,452,805				1,337,977
Allowance for loan losses			(13,963	)			(12,910	)
Loans, net			1,438,842				1,325,067
Premises and equipment			41,322				43,033
Other real estate			246				281
Goodwill			54,078				52,906
Other intangible assets			6,478				7,389
Bank owned life insurance			54,845				55,159
Deferred income taxes, net			21,178				3,644
Other assets			21,868				16,678
Total assets		$	2,728,393			$	2,691,715
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Deposits:
Noninterest-bearing		$	572,978			$	552,576
Interest-bearing			1,758,533				1,822,032
Total deposits			2,331,511				2,374,608
Federal funds purchased			23,766				—
Federal Home Loan Bank advances			65,000				51,656
Other borrowed money			63,342				36,792
Accrued expenses and other liabilities			10,179				10,952
Total liabilities		$	2,493,798			$	2,474,008
Stockholders’ equity
Common stock, $1 par value; 20,000,000 shares authorized, 17,581,212 and 13,673,898 issued and outstanding, respectively		$	17,581			$	13,674
Paid in capital			167,376				111,021
Retained earnings			104,561				99,189
Accumulated other comprehensive loss, net of tax			(54,923	)			(6,177	)
Total stockholders’ equity			234,595				217,707
Total liabilities and stockholders’ equity		$	2,728,393			$	2,691,715

Colony Bankcorp, Inc.
Consolidated Statements of Income (unaudited)
		Three months ended June 30,						Six months ended June 30,
		2022			2021			2022			2021
(dollars in thousands, except per share data)
Interest income:
Loans, including fees		$	16,266			14,099		$	32,281			27,672
Investment securities			4,803			1,893			8,974			3,591
Deposits in banks and short term investments			103			44			159			98
Total interest income			21,172			16,036			41,414			31,361
Interest expense:
Deposits			626			569			1,225			1,223
Federal funds purchased			27			—			27			—
Federal Home Loan Bank advances			1,098			115			1,464			230
Paycheck Protection Program Liquidity Facility			—			25			—			93
Other borrowings			254			258			339			515
Total interest expense			2,005			967			3,055			2,061
Net interest income			19,167			15,069			38,359			29,300
Provision for loan losses			1,100			—			1,150			500
Net interest income after provision for loan losses			18,067			15,069			37,209			28,800
Noninterest income:
Service charges on deposits			1,895			1,264			3,720			2,486
Mortgage fee income			2,736			3,005			5,648			7,000
Gain on sale of SBA loans			1,863			1,263			3,589			2,735
(Loss)/Gain on sale of securities			—			141			24			137
Interchange fees			2,159			1,667			4,159			3,197
BOLI income			353			222			665			430
Other			1,052			189			1,400			367
Total noninterest income			10,057			7,751			19,205			16,352
Noninterest expense:
Salaries and employee benefits			15,072			10,126			28,344			20,081
Occupancy and equipment			1,608			1,245			3,227			2,571
Acquisition related			1			699			125			698
Information technology expenses			2,549			1,856			4,904			3,448
Professional fees			695			690			1,517			1,177
Advertising and public relations			417			566			854			1,146
Communications			1,073			308			1,892			527
Other			3,061			1,975			5,419			3,571
Total noninterest expense			24,475			17,465			46,282			33,219
Income before income taxes			3,649			5,355			10,132			11,933
Income taxes			233			1,358			1,395			3,016
Net income		$	3,416		$	3,997		$	8,737		$	8,917
Earnings per common share:
Basic		$	0.19		$	0.42		$	0.52		$	0.94
Diluted			0.19			0.42			0.52			0.94
Dividends declared per share			0.1075			0.1025			0.2150			0.2050
Weighted average common shares outstanding:
Basic			17,586,298			9,498,783			16,731,997			9,498,783
Diluted			17,586,298			9,498,783			16,731,997			9,498,783

Colony Bankcorp, Inc.
Quarterly Comparison
		2022								2021
(dollars in thousands, except per share data)		Second Quarter				First Quarter				Fourth Quarter				Third Quarter				Second Quarter
Assets		$	2,728,393			$	2,686,788			$	2,691,715			$	2,512,581			$	1,755,518
Loans, net			1,438,842				1,341,113				1,325,067				1,296,983				1,009,747
Deposits			2,331,511				2,350,786				2,374,608				2,195,122				1,542,214
Total equity			234,595				250,277				217,707				217,130				146,894
Net income			3,416				5,324				4,160				5,583				3,997
Earnings per basic share		$	0.19			$	0.34			$	0.30			$	0.45			$	0.42
Key Performance Ratios:
Return on average assets			0.51	%			0.81	%			0.64	%			1.00	%			0.91	%
Return on average total equity			5.68	%			8.88	%			7.65	%			11.49	%			11.14	%
Total equity to total assets			9.32	%			9.32	%			8.09	%			8.64	%			8.37	%
Tangible equity to tangible assets (a)			6.52	%			7.25	%			5.93	%			6.37	%			7.38	%
Net interest margin			3.15	%			3.13	%			3.16	%			3.48	%			3.68	%
(a) Non-GAAP measure - see “Explanation of Certain Unaudited Non-GAAP Financial Measures” for more information and reconciliation to GAAP.

Colony Bankcorp, Inc.
Quarterly Loan Comparison
		2022						2021
(dollars in thousands)		Second Quarter			First Quarter			Fourth Quarter			Third Quarter			Second Quarter
Core		$	1,217,498		$	1,093,126		$	990,063		$	931,793		$	905,850
PPP			128			387			8,486			16,999			58,769
Purchased			235,179			260,519			339,428			361,068			57,999
Total		$	1,452,805		$	1,354,032		$	1,337,977		$	1,309,860		$	1,022,618

Colony Bankcorp, Inc.
Quarterly Loans by Location Comparison
		2022								2021
(dollars in thousands)		Second Quarter				First Quarter				First Quarter				Fourth Quarter				Third Quarter
Atlanta		$	287,460			$	246,629			$	281,040			$	278,473			$	436
Augusta			36,545				38,462				36,268				28,064				30,521
Birmingham			2,255				—				—				—				—
Middle Georgia			146,159				117,336				117,788				100,804				73,458
Northwest Georgia			38,520				38,430				27,167				24,334				2,703
Coastal Georgia			259,248				237,621				235,799				233,648				236,985
South Central Georgia			348,273				345,421				336,849				352,057				361,821
Southwest Georgia			127,783				118,263				105,937				99,385				95,870
West Georgia			181,791				168,071				161,678				160,663				148,271
Small Business Specialty Lending			23,411				39,934				23,101				8,850				14,923
Paycheck Protection Program			128				387				8,486				16,999				55,425
Purchase Accounting			(614	)			(697	)			(948	)			(1,025	)			(565	)
Other			1,846				4,175				4,812				7,608				2,770
Total		$	1,452,805			$	1,354,032			$	1,337,977			$	1,309,860			$	1,022,618

Colony Bankcorp, Inc.
Quarterly PPP Fees Comparison
		2022						2021
(dollars in thousands)		Second Quarter			First Quarter			Fourth Quarter			Third Quarter			Second Quarter
PPP loan fee income		$	6		$	505		$	502		$	1,556		$	1,581
Unearned income on PPP loans			6			12			517			1,019			2,573

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220721005865/en/

Andy Borrmann

EVP & Chief Financial Officer

678.734.3505

Source: Colony Bankcorp, Inc.

FAQ

What are the Q2 2022 financial results for Colony Bankcorp (CBAN)?

For Q2 2022, Colony Bankcorp reported a net income of $3.4 million and total loans of $1.5 billion, reflecting a 7.3% increase.

When will the cash dividend for CBAN be paid?

The cash dividend of $0.1075 per share will be paid on August 20, 2022, to shareholders of record as of August 6, 2022.

How did asset quality change for Colony Bankcorp (CBAN) in Q2 2022?

Asset quality improved with nonperforming assets decreasing to $5.2 million, down from $6.5 million in the previous quarter.

What was the provision for loan losses in Q2 2022 for CBAN?

Colony Bankcorp recorded a provision for loan losses of $1.1 million in Q2 2022, a significant increase from $50,000 in Q1 2022.

What was the total noninterest income for Colony Bankcorp (CBAN) in Q2 2022?

Total noninterest income for Q2 2022 was $10.1 million, showing a 29.8% increase compared to Q2 2021.