Colony Bankcorp Reports Third Quarter 2021 Results

Rhea-AI Summary

Colony Bankcorp (CBAN) reported a net income of $5.6 million, or $0.45 per diluted share, for Q3 2021, up from $3.1 million, or $0.33 per diluted share, in Q3 2020. Operating net income rose to $7.1 million, or $0.57 per diluted share. For the nine months ended Sept 30, 2021, net income reached $14.5 million, compared to $6.9 million in the same period last year. The bank declared a quarterly cash dividend of $0.1025, payable on Nov 17, 2021. Total assets increased to $2.5 billion, up 42.8% year-over-year, largely from the SouthCrest acquisition, with loans growing 20.3%. Noninterest income rose 25%.

Positive

• Net income increased 80.6% year-over-year in Q3 2021.
• Operating net income up 91.9% year-over-year for the same quarter.
• Total assets rose 42.8% to $2.5 billion due to acquisition.
• Loans increased 20.3% year-over-year.
• Noninterest income grew by 25% year-over-year.

Negative

• Noninterest expenses increased to $21.2 million, up from $16.3 million in 2020, largely due to higher salaries and acquisition costs.
• Net interest margin decreased 20 basis points sequentially.
• Nonperforming assets rose to $13.1 million as of Sept 30, 2021.

Declares Quarterly Cash Dividend of $0.1025 Per Share

FITZGERALD, Ga.--(BUSINESS WIRE)-- Colony Bankcorp, Inc. (Nasdaq: CBAN) (“Colony” or the “Company”) today reported net income of $5.6 million, or $0.45 per diluted share, for the quarter ended September 30, 2021, compared with $3.1 million, or $0.33 per diluted share, for the quarter ended September 30, 2020. The Company reported operating net income of $7.1 million, or $0.57 per diluted share, for the quarter ended September 30, 2021, compared with $3.7 million, or $0.39 per diluted share, for the same period in 2020. Operating net income for quarter ended September 30, 2021 and 2020 excludes pre-tax acquisition related expenses, and the net income tax benefit for these adjustments (See Reconciliation of Non-GAAP Measures).

For the nine months ended September 30, 2021, the Company reported net income of $14.5 million, or $1.39 per diluted share, compared to $6.9 million, or $0.73 per diluted share, for the same period in 2020. The Company reported operating net income of $16.7 million, or $1.60 adjusted earnings per diluted share, for the nine months ended September 30, 2021, compared to $7.9 million, or $0.84 adjusted earnings per diluted share, for the same period in 2020 (See Reconciliation of Non-GAAP Measures).

Third Quarter 2021 Financial Highlights:

• Net income was $5.6 million, or $0.45 per diluted share, compared to $3.1 million, or $0.33 per diluted share, for the third quarter of 2020.
• Operating net income of $7.1 million, or $0.57 per diluted share (see Reconciliation of Non-GAAP Measures).
• $150,000 in provision for loan losses was recorded in third quarter of 2021, a decrease of $956,000, or 86%, compared to the third quarter of 2020.
• Mortgage production was $89.4 million, with $21.2 million in refinances, and $68.1 million in purchases.
• Small Business Specialty Lending (“SBSL”) closed $26.1 million in Small Business Administration (“SBA”) loans and sold $12.9 million in SBA loans.
• Total borrowings at September 30, 2021 totaled $88.9 million, a decrease of $120.4 million, or 57.5%, compared to the same period in 2020.

The Company also announced that on October 21, 2021, the Board of Directors declared a quarterly cash dividend of $0.1025 per share, to be paid on its common stock on November 17, 2021, to shareholders of record as of the close of business on November 3, 2021. Outstanding shares as of October 20, 2021 were 13,674,198.

Commenting on the announcement, Heath Fountain, President and Chief Executive Officer, said, “As the economy continues to open, Colony’s results remain strong and demonstrate solid growth despite the dampening effect of the Delta variant and supply chain disruptions. I am pleased to report solid earnings growth for the third quarter of 2021 compared to the same period last year. Diluted earnings per share increased 36% for the third quarter to $0.45 per diluted share, despite significantly higher acquisition related expenses associated with successfully completing the acquisition of SouthCrest Financial Group, Inc (SouthCrest”). Our continued efforts to diversify our revenue streams resulted in non-interest income growth of 25% year-over-year with mortgage fee income increasing 19% as a result of continued low interest rates, consumer demand and the dedication and hard work of our associates. Diluted earnings per share increased on a sequential quarter basis as well. Additionally, adjusted earnings increased for the year-over- year period to $0.57 from $0.39, and increased 16% from the prior quarter.

“We have continued to be very busy at Colony and have made important investments during the quarter, including strategic and add-on acquisitions that will drive our Company’s future prospects and position it to grow and prosper. During the quarter, we successfully closed the acquisitions of SouthCrest and formed Colony Insurance in conjunction with acquiring The Barnes Agency and related tuck-in acquisitions. Management and our Board of Directors continue to analyze utilizing our balance sheet for synergistic opportunities and becoming a more efficient organization. Increasing non-interest income has been of paramount importance to us and we believe will continue to grow with the addition of new customers and cross-selling of our range of product lines.

“Credit metrics in our balance sheet continued to be strong. We took a $150,000 provision for loan and lease losses, a substantial decrease from $1.1 million in the same period last year. Core loan growth increased 7% with total loans increasing 19% versus the same period last year, and deposits increased 52% to $2.2 billion over the same period, primarily due to the acquisition of SouthCrest. Average interest earning assets increased $442.8 million, or 25% from the quarter ended September 30, 2020, while total assets increased to $2.5 billion. Average interest-bearing deposits increased $400.8 million year-over-year with most of the increase in lower-yielding demand and savings accounts.

“Net interest income increased 29% year over year as a result of increases in average interest earning assets and lower costs of interest bearing liabilities. Demand and savings deposits rate was down six basis points to 0.11% and total average deposits cost this quarter decreased 23 basis points to 0.19% from the same period last year. Despite operating in a highly competitive market, I am pleased to report our net interest margin increased to 3.48% from 3.34% year over year.

“Noninterest income saw very strong growth, increasing 25% year over year, with mortgage fee income increasing to $3.1 million in the current quarter compared to $2.6 million in the third quarter of 2020. The increase in noninterest income was offset by increases in noninterest expense, such as salaries and employee benefits, information technology expenses as well as elevated acquisition related expenses and professional fees.

“Our allowance for loan and lease losses now represents 0.98% of total loans outstanding, a decrease from 1.00% in the year-earlier quarter and 1.26% on a sequential-quarter basis. Total nonperforming assets decreased to 0.52% of total assets from 0.67% in the year-earlier quarter and from 0.54% on a sequential-quarter basis.”

In closing, Fountain added, “This is a very exciting time for all of us at Colony. As the largest community bank in Georgia and the continued execution of our strategic priorities, we see substantial opportunities to leverage our best-in-class products and services, and deliver enhanced shareholder value for years to come. The team has done a remarkable job, and I couldn't be prouder of how they stepped up to support our clients and new customers to deliver another quarter of outstanding results.”

Balance Sheet

• Total assets were $2.5 billion at September 30, 2021, an increase of $753.1 million, or 42.8%, compared to the same period in 2020. The increase was primarily related to acquisition of SouthCrest.
• Total loans, including loans held for sale, totaled $1.34 billion at September 30, 2021, an increase of $235.0 million, or 20.3% from the same period in 2020. Legacy loan growth was up $60.4 million or 6.9% compared to the same period in 2020. The increase in loans was a primarily a result of the acquisition of SouthCrest offset by the forgiveness of loans under the Paycheck Protection Program.
• Deposits totaled $2.20 billion at September 30, 2021, an increase of $778.7 million, or 55.0%, compared to the same period in 2020. The increase was in all types of deposits and was primarily the result of the acquisition of SouthCrest.
• Total borrowings at September 30, 2021 totaled $88.6 million, a decrease of $120.6 million, or 57.6%, compared to the same period in 2020.

Capital

• Colony continues to maintain a strong capital position, with ratios that exceed regulatory minimums required to be classified 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 8.45%, 12.09%, 12.91%, and 10.60%, respectively at September 30, 2021.

Third Quarter Results of Operations

• Net interest income, on a tax-equivalent basis, for the third quarter of 2021 totaled $18.0 million, compared to $13.9 million for the third quarter 2020. The increase during the quarter is primarily attributable to loan fee income recognized on Paycheck Protection Program (“PPP”) loans forgiven and a decrease in the cost of interest-bearing liabilities.
• Net interest margin decreased 20 basis points over the sequential quarter primarily driven by a decrease in deferred fee income recognized on PPP loans. During the quarter ended September 30, 2021, PPP loans totaling approximately $44.6 million were forgiven through the SBA.
• Noninterest income totaled $9.4 million for the third quarter ended September 30, 2021, an increase of $1.9 million, or 24.9%, compared to the same period in 2020. The increase was primarily attributable to growth in mortgage production income as a result of increased loan demand resulting from a historically low interest rate environment along with SBSL loan sales.
• Noninterest expense totaled $21.2 million for the third quarter ended September 30, 2021, compared to $16.3 million for the same period in 2020. The increase in noninterest expense primarily resulted from a $2.7 million increase in salary expense and $1.8 million in acquisition expenses related to the acquisitions of SouthCrest and The Barnes Agency (“Barnes”).
• Tax expense totaled $362,000 for the third quarter ended September 30, 2021, a decrease of $522,000, or 59.0%, compared the same period in 2020. This decrease is primarily due to repricing of deferred taxes, recognition of state tax credits, and the integration of SouthCrest. The effective tax rate for the fourth quarter of 2021 is expected to be approximately 22.0%.

Asset Quality

• Nonperforming assets totaled $13.1 million and $9.5 million at September 30, 2021 and June 30, 2021, respectively.
• OREO and repossessed assets totaled $810,000 at September 30, 2021, an increase of $511,000, or 63% compared to June 30, 2021, primarily related to the acquisition of SouthCrest.
• Net loan charge-offs were $144,000, or 0.05% of average loans for the third quarter of 2021, compared to net recoveries of $178,000 or (0.09)% in the second quarter of 2021.
• The loan loss reserve was $12.9 million, or 0.98% of total loans, at September 30, 2021, compared to $12.9 million, or 1.26% of total loans, at June 30, 2021.

Asset quality remains strong as indicated by the overall improvement in asset quality ratios as of the third quarter 2021 on a year-over-year comparison along with a decrease in nonperforming assets.

About Colony Bankcorp

Colony Bankcorp, Inc. is the bank holding company for Colony Bank. Founded in 1975 and headquartered in Fitzgerald, Georgia, Colony operates 39 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; (vi) statements relating to the timing, benefits, costs, and synergies of the recently completed acquisitions of SouthCrest (the “Merger”) and Barnes; and (vii) 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 and related variants 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 and related variants; 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 and related variants; 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; the risk that the cost savings and any revenue synergies from the Merger and the acquisition of Barnes may not be realized or take longer than anticipated; the risk of successful integration of SouthCrest’s and Barnes’ businesses into the Company; the reaction of each of the Company’s, SouthCrest’s and Barnes’ customers, suppliers, employees or other business partners to the Merger and the Barnes acquisition; the risk that the integration of SouthCrest’s operations into the operations of the Company will be materially delayed or will be more costly or difficult than expected; the timing and achievement of expected cost reductions following the Merger; the timing and achievement of the recovery of the reduction of tangible book value resulting from the Merger; 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, 2020, 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; 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 net income, diluted earnings per share, book value per common share, and efficiency ratio, respectively. Operating net income and operating efficiency ratio both exclude acquisition-related expenses. Adjusted earnings per diluted share includes the adjustments to operating net income. Tangible book value per common share excludes 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; and operating efficiency ratio and the reconciliation of these measures to net income, diluted earnings per share, book value per common share, efficiency ratio, are set forth in the table below.

Colony Bankcorp, Inc.
Selected Financial Information
		2021												2020
(dollars in thousands, except per share data)		Third Quarter				Second Quarter				First Quarter				Fourth Quarter				Third Quarter
EARNINGS SUMMARY
Net interest income		$	17,868			$	15,069			$	14,283			$	15,151			$	13,848
Provision for loan losses			150				—				500				1,296				1,106
Non-interest income			9,438				7,751				8,576				8,039				7,554
Non-interest expense			21,211				17,465				15,782				15,986				16,313
Income taxes			362				1,358				1,658				1,008				884
Net income			5,583				3,997				4,919				4,900				3,099
PERFORMANCE MEASURES
Per common share:
Common shares outstanding			13,674,198				9,498,783				9,498,783				9,498,783				9,498,783
Weighted average basic shares			12,344,926				9,498,783				9,498,783				9,498,783				9,498,783
Weighted average diluted shares			12,344,926				9,498,783				9,498,783				9,498,783				9,498,783
Earnings per basic share		$	0.45			$	0.42			$	0.52			$	0.52			$	0.33
Earnings per diluted share			0.45				0.42				0.52				0.52				0.33
Adjusted earnings per diluted share(b)			0.57				0.49				0.53				0.44				0.39
Cash dividends declared per share			0.1025				0.1025				0.1025				0.1000				0.1000
Common book value per share			17.59				15.46				15.11				15.21				14.78
Tangible book value per common share(b)			12.65				13.50				13.14				13.26				12.82
Performance ratios:
Net interest margin (a)			3.48	%			3.68	%			3.50	%			3.58	%			3.34	%
Return on average assets			1.00				0.91				1.12				1.08				0.70
Return on average total equity			11.49				11.14				13.71				13.73				8.80
Efficiency ratio			77.68				76.53				69.04				68.93				76.22
Operating efficiency ratio (b)			74.91				73.10				68.58				71.49				72.53
ASSET QUALITY
Nonperforming loans (NPLs)		$	12,246			$	9,205			$	10,676			$	9,128			$	9,926
Other real estate owned			807				270				518				1,006				1,875
Repossessed assets			3				29				29				30				11
Total nonperforming assets (NPAs)			13,056				9,504				11,223				10,164				11,812
Classified loans			30,300				30,852				35,182				30,404				21,388
Criticized loans			61,857				64,818				80,288				75,633				72,076
Net loan (recoveries)/charge-offs			144				(178	)			(66	)			189				375
Allowance for loan losses to total loans			0.98	%			1.26	%			1.19	%			1.14	%			1.00	%
Allowance for loan losses to total NPLs			105.15				140.15				118.89				132.85				111.02
Allowance for loan losses to total NPAs			98.63				135.73				113.10				119.31				93.29
Net (recoveries)/charge-offs to average loans			0.05				(0.09	)			(0.02	)			0.07				0.13
NPLs to total loans			0.93				0.90				1.00				0.86				0.90
NPAs to total assets			0.52				0.54				0.62				0.58				0.67
NPAs to total loans and other real estate owned			1.00				0.93				1.06				0.96				1.07
AVERAGE BALANCES
Total assets		$	2,272,904			$	1,777,559			$	1,774,123			$	1,797,749			$	1,766,717
Loans, net			1,243,066				1,076,784				1,079,007				1,151,872				1,140,486
Deposits			1,975,418				1,547,139				1,475,944				1,456,287				1,417,724
Total stockholders’ equity			197,109				144,761				145,515				141,570				139,721
(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.
Reconciliation of Non-GAAP Measures
		2021												2020
(dollars in thousands, except per share data)		Third Quarter				Second Quarter				First Quarter				Fourth Quarter				Third Quarter
Operating net income reconciliation
Net income (GAAP)		$	5,583			$	3,997			$	4,919			$	4,900			$	3,099
Acquisition-related expenses			1,994				865				176				148				207
Thomaston building write down			—				—				—				—				582
Gain on sale of Thomaston branch			—				—				—				(1,026	)			—
Income tax expense (benefit)			(518	)			(225	)			(46	)			184				(166	)
Operating net income		$	7,059			$	4,637			$	5,049			$	4,206			$	3,722
Weighted average diluted shares			12,344,926				9,498,783				9,498,783				9,498,783				9,498,783
Adjusted earnings per diluted share		$	0.57			$	0.49			$	0.53			$	0.44			$	0.39
Tangible book value per common share reconciliation
Book value per common share (GAAP)		$	17.59			$	15.46			$	15.11			$	15.21			$	14.78
Effect of goodwill and other intangibles			(4.94	)			(1.89	)			(1.97	)			(1.95	)			(1.96	)
Tangible book value per common share		$	12.65			$	13.57			$	13.14			$	13.26			$	12.82
Operating efficiency ratio calculation
Efficiency ratio (GAAP)			77.68	%			76.53	%			69.04	%			68.93	%			76.22	%
Acquisition-related expenses			(2.77	)			(3.44	)			(0.46	)			(0.64	)			(0.97	)
Gain on sale of Thomaston branch			—	%			—	%			—	%			3.19	%			—	%
Thomaston building write down			—	%			—	%			—	%			—	%			(2.72	)%
Operating efficiency ratio			74.91	%			73.10	%			68.58	%			71.49	%			72.53	%

Colony Bankcorp, Inc.
Average Balance Sheet and Net Interest Analysis
		Three Months Ended September 30,
		2021									2020
(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		$	1,243,066		$	16,085		5.25	%		$	1,140,486		$	13,809		4.80	%
Investment securities, taxable			614,404			2,668		1.76	%			339,094			1,644		1.92	%
Investment securities, tax-exempt 2			77,255			362		1.90	%			26,916			130		1.92	%
Deposits in banks and short term investments			166,064			57		0.14	%			151,508			52		0.14	%
Total interest-earning assets			2,100,789			19,172		3.70	%			1,658,004			15,635		3.74	%
Noninterest-earning assets			172,115									108,712
Total assets		$	2,272,904								$	1,766,716
Liabilities and stockholders' equity
Interest-bearing liabilities:
Interest-earning demand and savings		$	1,169,693		$	319		0.11	%		$	793,831		$	324		0.16	%
Other time			320,484			380		0.48	%			295,559			820		1.10	%
Total interest-bearing deposits			1,490,177			699		0.19	%			1,089,390			1,144		0.42	%
Federal Home Loan Bank advances			42,391			170		1.64	%			28,587			159		2.21	%
Paycheck Protection Program Liquidity Facility			—			—		—	%			134,500			118		0.35	%
Other borrowings			37,289			290		3.14	%			38,289			273		2.83	%
Total other interest-bearing liabilities			79,680			460		2.34	%			201,376			550		1.08	%
Total interest-bearing liabilities			1,569,857			1,159		0.30	%			1,290,766			1,694		0.52	%
Noninterest-bearing liabilities:
Demand deposits		$	485,241								$	328,334
Other liabilities			20,697									7,895
Stockholders' equity			197,109									139,721
Total noninterest-bearing liabilities and stockholders' equity			703,047									475,950
Total liabilities and stockholders' equity		$	2,272,904								$	1,766,716
Interest rate spread								3.40	%								3.22	%
Net interest income					$	18,013								$	13,941
Net interest margin								3.48	%								3.34	%
_______________________

¹The 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 $73,000 and $66,000 for the quarter ended September 30, 2021 and 2020, respectively, are included in income and fees on loans. Accretion income of $104,000 and $82,000 for the quarter ended September 30, 2021 and 2020 are also included in income and fees on loans.

²Taxable-equivalent adjustments totaling $72,000 and $27,000 for the quarter ended September 30, 2021 and 2020, respectively, are included in tax-exempt interest on investment securities.

Colony Bankcorp, Inc.
Average Balance Sheet and Net Interest Analysis
		Nine Months Ended September 30,
		2021									2020
(dollars in thousands)		Average Balances			Income/ Expense			Yields/ Rates			Average Balances			Income/ Expense			Yields/ Rates
Assets
Interest-earning assets:
Loans, net of unearned income3		$	1,133,533		$	43,890		5.18	%		$	1,071,908		$	40,923		5.09	%
Investment securities, taxable			468,561			6,011		1.72	%			336,446			5,390		2.13	%
Investment securities, tax-exempt4			47,839			677		1.89	%			12,319			184		1.99	%
Deposits in banks and short term investments			165,280			155		0.13	%			132,496			384		0.39	%
Total interest-earning assets			1,815,213			50,733		3.74	%			1,553,169			46,881		4.02	%
Noninterest-earning assets			121,417									107,013
Total assets		$	1,936,630								$	1,660,182
Liabilities and stockholders' equity
Interest-bearing liabilities:
Interest-earning demand and savings		$	978,181		$	630		0.09	%		$	762,906		$	1,667		0.29	%
Other time			278,508			1,291		0.62	%			313,834			3,099		1.32	%
Total interest-bearing deposits			1,256,689			1,921		0.20	%			1,076,740			4,766		0.59	%
Federal Home Loan Bank advances			29,203			401		1.84	%			36,858			626		2.27	%
Paycheck Protection Program Liquidity Facility			34,155			93		0.36	%			78,081			205		0.35	%
Other borrowings			37,536			896		3.19	%			38,591			962		3.32	%
Total other interest-bearing liabilities			100,894			1,390		1.84	%			153,530			1,793		1.56	%
Total interest-bearing liabilities			1,357,583			3,311		0.33	%			1,230,270			6,559		0.71	%
Noninterest-bearing liabilities:
Demand deposits		$	411,307								$	287,038
Other liabilities			11,412									6,134
Stockholders' equity			162,650									136,740
Total noninterest-bearing liabilities and stockholders' equity			585,369									429,912
Total liabilities and stockholders' equity		$	1,942,952								$	1,660,182
Interest rate spread								3.41	%								3.31	%
Net interest income					$	47,422								$	40,322
Net interest margin								3.49	%								3.46	%
_______________________

³The 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 $206,000 and $190,000 for the nine months ended September 30, 2021 and 2020, respectively, are included in income and fees on loans. Accretion income of $375,000 and $198,000 for the nine months ended September 30, 2021 and 2020 are also included in income and fees on loans.

⁴Taxable-equivalent adjustments totaling $135,000 and $38,000 for the nine months ended September 30, 2021 and 2020, respectively, are included in tax-exempt interest on investment securities.

Colony Bankcorp, Inc.
Segment Reporting
		2021							2020
(dollars in thousands)		Third Quarter				Second Quarter			First Quarter			Fourth Quarter				Third Quarter
Banking Division
Net interest income		$	17,181			$	14,864		$	13,985		$	14,752			$	13,631
Provision for loan losses			150				—			500			1,296				1,106
Noninterest income			4,340				3,354			3,005			3,952				4,139
Noninterest expenses			16,941				13,366			11,960			11,656				12,415
Income taxes			434				1,241			1,160			973				940
Segment income		$	3,996			$	3,611		$	3,370		$	4,779			$	3,308
Total segment assets		$	2,499,223			$	1,710,345		$	1,755,667		$	1,709,696			$	1,666,742
Full time employees			417				294			291			305				312
Mortgage Banking Division
Net interest income		$	138			$	123		$	168		$	299			$	188
Provision for loan losses			—				—			—			—				—
Noninterest income			3,104				2,997			3,986			3,420				2,612
Noninterest expenses			2,765				2,887			2,793			2,835				2,410
Income taxes			(290	)			60			354			188				82
Segment income		$	767			$	173		$	1,007		$	696			$	308
Total segment assets		$	21,184			$	25,149		$	27,478		$	50,266			$	50,265
Full time employees			53				53			51			43				41
Small Business Specialty Lending Division
Net interest income		$	549			$	82		$	130		$	100			$	29
Provision for loan losses			—				—			—			—				—
Noninterest income			1,994				1,400			1,585			667				803
Noninterest expenses			1,505				1,212			1,029			1,495				1,488
Income taxes			218				57			144			(153	)			(138	)
Segment income		$	820			$	213		$	542		$	(575	)		$	(518	)
Total segment assets		$	23,291			$	20,024		$	15,901		$	4,012			$	42,439
Full time employees			24				24			23			21				15
Total Consolidated
Net interest income		$	17,868			$	15,069		$	14,283		$	15,151			$	13,848
Provision for loan losses			150				—			500			1,296				1,106
Noninterest income			9,438				7,751			8,576			8,039				7,554
Noninterest expenses			21,211				17,465			15,782			15,986				16,313
Income taxes			362				1,358			1,658			1,008				884
Segment income		$	5,583			$	3,997		$	4,919			4,900			$	3,099
Total segment assets		$	2,543,698			$	1,755,518		$	1,799,046		$	1,763,974			$	1,759,446
Full time employees			494				371			365			369				368

Colony Bankcorp, Inc.
Consolidated Balance Sheets
		September 30, 2021				December 31, 2020
(dollars in thousands)		(unaudited)				(audited)
ASSETS
Cash and due from banks		$	24,170			$	17,218
Interest-bearing deposits in banks and federal funds sold			152,827				166,288
Cash and cash equivalents			176,997				183,506
Investment securities available for sale, at fair value			830,418				380,814
Other investments, at cost			4,184				3,296
Loans held for sale			26,697				52,386
Loans, net of unearned income			1,309,860				1,059,503
Allowance for loan losses			(12,877	)			(12,127	)
Loans, net			1,296,983				1,047,376
Premises and equipment			41,762				32,057
Other real estate			807				1,006
Goodwill and other intangible assets			60,959				18,558
Bank owned life insurance			54,822				31,547
Other assets			18,952				13,428
Total assets		$	2,512,581			$	1,763,974
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Deposits:
Noninterest-bearing		$	539,251			$	326,999
Interest-bearing			1,655,871				1,118,028
Total deposits			2,195,122				1,445,027
Federal Home Loan Bank advances			51,601				22,500
Paycheck Protection Program Liquidity Facility			—				106,789
Other borrowed money			37,042				37,792
Accrued expenses and other liabilities			11,686				7,378
Total liabilities		$	2,295,451			$	1,619,486
Stockholders’ equity
Common stock, $1 par value; 20,000,000 shares authorized, 13,674,198 and 9,498,783 issued and outstanding, respectively		$	13,674			$	9,499
Paid in capital			110,722				43,215
Retained earnings			96,145				84,993
Accumulated other comprehensive income, net of tax			(3,411	)			6,781
Total stockholders’ equity			217,130				144,488
Total liabilities and stockholders’ equity		$	2,512,581			$	1,763,974

Colony Bankcorp, Inc.
Consolidated Statements of Income (unaudited)
		Three months ended September 30,						Nine months ended September 30,
		2021			2020			2021			2020
(dollars in thousands, except per share data)
Interest income:
Loans, including fees		$	16,013			13,743		$	43,684			40,733
Investment securities			2,954			1,747			6,546			5,536
Deposits in banks and short term investments			58			52			154			384
Total interest income			19,025			15,542			50,384			46,653
Interest expense:
Deposits			698			1,144			1,921			4,766
Federal Home Loan Bank advances			170			159			401			626
Paycheck Protection Program Liquidity Facility			—			118			93			205
Other borrowings			289			273			802			962
Total interest expense			1,157			1,694			3,217			6,559
Net interest income			17,868			13,848			47,167			40,094
Provision for loan losses			150			1,106			650			5,262
Net interest income after provision for loan losses			17,718			12,742			46,517			34,832
Noninterest income:
Service charges on deposits			1,792			1,316			4,278			3,906
Mortgage fee income			3,107			2,616			10,107			5,706
Gain on sale of SBA loans			1,813			748			4,548			1,004
(Loss)/Gain on sale of securities			—			716			137			1,009
Interchange fees			1,745			1,342			4,941			3,624
BOLI Income			280			237			710			548
Other			701			579			754			1,032
Total noninterest income			9,438			7,554			25,475			16,829
Noninterest expense:
Salaries and employee benefits			11,826			9,103			31,907			24,331
Occupancy and equipment			1,599			1,338			4,169			3,972
Acquisition related			1,994			207			3,031			714
Information technology expenses			2,045			1,440			5,493			4,135
Professional fees			804			481			1,975			1,343
Advertising and public relations			674			459			1,817			1,478
Communications			310			212			837			631
Writedown of building			—			582			—			582
FHLB prepayment penalty			—			925			—			925
Other			1,959			1,566			4,884			4,827
Total noninterest expense			21,211			16,313			54,113			42,938
Income before income taxes			5,945			3,983			17,879			8,723
Income taxes			362			884			3,379			1,807
Net income		$	5,583		$	3,099		$	14,500		$	6,916
Earnings per common share:
Basic		$	0.45		$	0.33		$	1.39		$	0.73
Diluted			0.45			0.33			1.39			0.73
Dividends declared per share			0.1025			0.1000			0.3075			0.3000
Weighted average common shares outstanding:
Basic			12,344,926			9,498,783			10,447,496			9,498,783
Diluted			12,344,926			9,498,783			10,447,496			9,498,783

Colony Bankcorp, Inc.
Quarterly Comparison
		2021												2020
(dollars in thousands, except per share data)		Third Quarter				Second Quarter				First Quarter				Fourth Quarter				Third Quarter
Assets		$	2,512,581			$	1,755,518			$	1,799,047			$	1,763,974			$	1,759,446
Loans, net			1,296,983				1,009,747				1,050,082				1,047,376				1,090,586
Deposits			2,195,122				1,542,214				1,525,884				1,445,027				1,416,401
Total equity			217,130				146,894				143,487				144,488				140,346
Net income			5,583				3,997				4,919				4,900				3,099
Earnings per basic share		$	0.45			$	0.42			$	0.52			$	0.52			$	0.33
Key Performance Ratios:
Return on average assets			1.00	%			0.91	%			1.12	%			1.08	%			0.70	%
Return on average total equity			11.49	%			11.14	%			13.71	%			13.73	%			8.80	%
Total equity to total assets			8.64	%			8.37	%			7.98	%			8.19	%			7.98	%
Tangible equity to tangible assets			6.37	%			7.38	%			7.01	%			7.21	%			7.00	%
Net interest margin			3.48	%			3.68	%			3.50	%			3.58	%			3.34	%

Colony Bankcorp, Inc.
Quarterly Loan Comparison
		2021									2020
(dollars in thousands)		Third Quarter			Second Quarter			First Quarter			Fourth Quarter			Third Quarter
Core		$	931,793		$	905,850		$	888,800		$	873,426		$	871,416
PPP			16,999			58,769			102,633			101,147			133,756
Purchased			361,068			57,999			71,342			84,930			96,434
Total		$	1,309,860		$	1,022,618		$	1,062,775		$	1,059,503		$	1,101,606

Colony Bankcorp, Inc.
Quarterly Loans by Location Comparison
		2021												2020
(dollars in thousands)		Third Quarter				Second Quarter				First Quarter				Fourth Quarter				Third Quarter
Atlanta		$	278,473			$	436			$	492			$	562			$	7,025
Augusta			28,064				30,521				23,982				20,432				22,931
Middle Georgia			100,804				73,458				73,543				68,838				60,275
Northwest Georgia			24,334				2,703				1,698				—				—
Coastal Georgia			233,648				236,985				235,094				230,184				224,604
South Central Georgia			352,057				361,821				371,227				372,947				391,702
Southwest Georgia			99,385				95,870				97,575				104,132				101,247
West Georgia			160,663				148,271				148,457				154,819				152,159
Small Business Specialty Lending			8,850				14,923				7,906				4,537				9,281
Paycheck Protection Program			16,999				55,425				102,633				101,147				133,756
Purchase Accounting			(1,025	)			(565	)			(668	)			(876	)			(1,262	)
Other			7,608				2,770				836				2,781				5,948
Total		$	1,309,860			$	1,022,618			$	1,062,775			$	1,059,503			$	1,107,666

Colony Bankcorp, Inc.
Quarterly PPP Fees Comparison
		2021									2020
(dollars in thousands)		Third Quarter			Second Quarter			First Quarter			Fourth Quarter			Third Quarter
PPP loan fee income		$	1,556		$	1,581		$	1,212		$	1,324		$	508
Unearned income on PPP loans			1,019			2,573			3,077			2,072			3,396

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20211021006007/en/

Tracie Youngblood

EVP & Chief Financial Officer

(229) 426-6000 (Ext 6003)

Source: Colony Bankcorp, Inc.

FAQ

What were Colony Bankcorp's Q3 2021 earnings?

Colony Bankcorp (CBAN) reported Q3 2021 net income of $5.6 million, or $0.45 per diluted share.

How much was Colony Bankcorp's quarterly cash dividend?

The quarterly cash dividend declared by Colony Bankcorp is $0.1025 per share.

What is Colony Bankcorp's total asset value as of September 2021?

Colony Bankcorp's total assets reached $2.5 billion as of September 30, 2021.

How did Colony Bankcorp perform financially compared to last year?

Colony Bankcorp's net income increased 80.6% in Q3 2021 compared to Q3 2020.

What drove the increase in Colony Bankcorp's total loans?

The increase in total loans was primarily due to the SouthCrest acquisition.