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Colony Bankcorp, Inc. Announces Second Quarter Results

By GlobeNewswire,  July 17, 2014, 08:00:00 AM EDT


FITZGERALD, Ga., July 17, 2014 (GLOBE NEWSWIRE) -- Colony Bankcorp, Inc. (Nasdaq:CBAN), today reported net income available to shareholders of $1,335,000, or $0.16 per diluted share for the second quarter of 2014 compared to $611,000, or $0.07 per diluted share for the comparable 2013 period, while net income available to shareholders for six months ended June 30, 2014 was $2,149,000, or 0.25 per diluted share compared to $1,178,000, or $0.14 per share for the comparable 2013 period. This increase of 82.43 percent in net income for the comparable six month period was primarily driven by a reduction in provision for loan losses, an increase in net interest income and an increase in noninterest income. "While the financial results reflect marked improvement, also noteworthy was the significant reduction in our non-performing assets to $31.59 million at June 30, 2014. This reflects a 19.35 percent reduction from the previous quarter end and marks the lowest level of non-performing assets since 2008," said Ed Loomis, President and Chief Executive Officer. "Our strong regulatory capital base combined with sustained earnings and credit quality improvement has positioned Colony for future market and operational opportunities."

Capital

Colony continues to maintain a strong regulatory capital position to be categorized as "well-capitalized" by regulatory benchmarks. At June 30, 2014, the Company's tier one leverage ratio, tier one and total risk-based capital ratios were 10.80 percent, 16.44 percent and 17.69 percent, respectively, compared to 10.57 percent, 15.81 percent and 17.06 percent, respectively, at December 31, 2013 and to 10.36 percent, 15.63 percent and 16.89 percent, respectively, at June 30, 2013. Regulatory benchmarks to be categorized as "well-capitalized" for tier one leverage ratio, tier one and total risk-based capital ratios are 5.00 percent, 6.00 percent and 10.00 percent, respectively.

Net Interest Margin

During the second quarter of 2014, the Company reported net interest income of $9.53 million and a net interest margin of 3.61 percent compared to $9.46 million and 3.64 percent, respectively, for second quarter 2013, while net interest income for first half 2014 was $18.72 million and a net interest margin of 3.54 percent compared to $18.50 million and 3.55 percent, respectively, for first half 2013. Though the low interest rate environment continues to be challenging for the banking industry, the company continues to focus on maximizing its net interest margin through deposit and loan pricing guidance and balance sheet restructuring.

Asset Quality

The Company continues to closely monitor our substandard and non-performing assets and focus on problem asset resolution. Substandard assets that include non-performing assets totaled $47.12 million at June 30, 2014 compared to $53.41 million and $58.15 million, respectively, at December 31, 2013 and June 30, 2013. Substandard assets adjusted for SBA guarantees to tier one capital plus loan loss reserve ratio was 32.54%, 38.18% and 43.00%, respectively, at June 30, 2014, December 31, 2013 and June 30, 2013. Non-performing assets decreased significantly from the previous quarter end to $31.59 million or 4.22 percent of total loans and other real estate owned as of June 30, 2014. This compares to $39.61 million or 5.17 percent and $41.18 million or 5.42 percent, respectively, as of December 31, 2013 and June 30, 2013. Loan loss reserve methodology resulted in three months ended June 30, 2014 provision for loan losses of $0.48 million compared to $1.20 million for the comparable 2013 period, while in six months ended June 30, 2014 the provision for loan losses was $0.81 million compared to $2.7 million for the comparable 2013 period. With continued stabilization in the economy, we expect continued improvement in our substandard assets.    

Other real estate ("OREO") totaled $12.21 million at June 30, 2014 compared to $15.50 million and $16.13 million, respectively, at December 31, 2013 and June 30, 2013. We continue to devote much time and effort in reducing our level of OREO properties and the current balance is at the lowest level in a number of quarters. Colony has established a target of twelve months to liquidate improved properties due to the high carrying cost of taxes, insurance, maintenance and repairs associated with holding these properties on our books. 

In the second quarter of 2014 net charge-offs were $1.72 million, or 0.23 percent of average loans as compared to net charge-offs of $1.17 million, or 0.16 percent of average loans in second quarter 2013, while first half 2014 net charge-offs were $2.14 million, or 0.29 percent of average loans as compared to net charge-offs of $2.48 million, or 0.34 percent of average loans in first half 2013. The loan loss reserve was $10.47 million on June 30, 2014, or 1.42 percent of total loans compared to $11.81 million, or 1.57 percent on December 31, 2013 and to $12.96 million, or 1.74 percent on June 30, 2013. Management believes that the 2014 contributions to Allowance for Loan Losses address the level of non-performing assets and the related level of substandard assets to be adequately reserved at June 30, 2014.

Noninterest Income

Total noninterest income increased in the comparable periods as noninterest income for six months ended June 30, 2014 was $4.31 million compared to $4.25 million in the comparable 2013 period, or an increase of 1.36 percent. The significant increase was debit card interchange fees and ATM fees increasing $340 thousand, or 41.44 percent. Offsetting the increase were service charge fee income on deposit accounts decreasing $110 thousand, or 4.89 percent, mortgage fee income decreasing $79 thousand, or 30.38 percent and gains on the sale of SBA/USDA loans decreasing $352 thousand, or 100.00 percent.       

Noninterest Expense

Total noninterest expense remained relatively flat as noninterest expense for six months ended June 30, 2014 was $17.16 million compared to $17.13 million for the comparable 2013 period, or an increase of 0.15 percent. Credit-related expenses continue to be a strain on earnings as write down and losses on OREO property and repossessed assets along with repossession and foreclosure expenses totaled $1.31 million in six months ended June 30, 2014 compared to $1.94 million in the comparable 2013 period, or a decrease of 32.47 percent. Salaries and employee benefit expenses increased to $8.72 million in six months ended June 30, 2014 compared to $8.32 million in the comparable 2013 period, or an increase of 4.80 percent. Occupancy expenses increased to $2.02 million in the six month period ended June 30, 2014 compared to $1.87 million in the comparable 2013 period, or an increase of 8.14 percent. Other noninterest expense decreased to $6.42 million compared to $6.95 million, or a decrease of 7.56 percent.

Colony Bankcorp, Inc. is a bank holding company headquartered in Fitzgerald, Georgia that consists of one operating subsidiary, Colony Bank. Colony Bank conducts a general full service commercial, consumer and mortgage banking business through twenty-nine offices located in the central, southern and coastal Georgia cities of Albany, Ashburn, Broxton, Centerville, Chester, Columbus, Cordele, Douglas, Eastman, Fitzgerald, Leesburg, Moultrie, Pitts, Quitman, Rochelle, Savannah, Soperton, Sylvester, Thomaston, Tifton, Valdosta and Warner Robins, Georgia. 

Colony Bankcorp, Inc. Common Stock is quoted on the Nasdaq Global Market under the symbol "CBAN".

Certain statements contained in the preceding release that are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"), notwithstanding that such statements are not specifically identified. In addition, certain statements may be contained in the Company's future filings with the SEC, in press releases, and in oral and written statements made by or with the approval of the Company that are not statements of historical fact and constitute forward-looking statements within the meaning of the Act. Examples of forward-looking statements include, but are not limited to: (i) projections of revenues, income or loss, earnings or loss per share, the payment or nonpayment of dividends, capital structure and other financial items; (ii) statement of plans and objectives of Colony Bankcorp, Inc. or its management or Board of Directors, including those relating to products or services; (iii) statements of future economic performance; and (iv) statements of assumptions underlying such statements. Words such as "believes," "anticipates," "expects," "intends," "targeted" and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements.

Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those in such statements. Forward-looking statements speak only as of the date on which such statements are made. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events. Readers are cautioned not to place undue reliance on these forward-looking statements.

COLONY BANKCORP, INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
         
  QUARTER ENDED YEAR-TO-DATE
EARNINGS SUMMARY 6/30/14 6/30/13 6/30/14 6/30/13
Net Interest Income $9,528 $9,455 $18,722 $18,501
Provision for Loan Losses 481 1,200 808 2,700
Non-interest Income 2,246 2,040 4,308 4,250
Non-interest Expense 8,291 8,739 17,157 17,131
Income Taxes 986 570 1,592 997
Net Income 2,016 986 3,473 1,923
Preferred Stock Dividend 681 375 1,324 745
Net Income Available to Common Shareholders 1,335 611 2,149  1,178
         
         
  QUARTER ENDED YEAR-TO-DATE
PER COMMON SHARE SUMMARY 6/30/14 6/30/13 6/30/14 6/30/13
Common Shares Outstanding 8,439,258 8,439,258 8,439,258 8,439,258
Weighted Average Basic Shares 8,439,258 8,439,258 8,439,258 8,439,258
Weighted Average Diluted Shares 8,439,258 8,439,258 8,439,258 8,439,258
Earnings Per Basic Share (b) $0.16 $0.07 $0.25 $0.14
Earnings Per Diluted Share (b) $0.16 $0.07 $0.25 $0.14
Common Book Value Per Share $7.96 $7.56 $7.96 $7.56
Tangible Common Book Value Per Share $7.94 $7.54 $7.94 $7.54
         
  QUARTER ENDED YEAR-TO-DATE
OPERATING RATIOS (1) 6/30/14 6/30/13 6/30/14 6/30/13
Net Interest Margin (a) 3.61% 3.64% 3.54% 3.55%
Return on Average Assets (b) 0.47% 0.22% 0.38% 0.21%
Return on Average Total Equity (b) 5.69% 2.56% 4.63% 2.47%
Efficiency (c) 70.26% 75.80% 74.32% 75.03%
 
(1)  Annualized
(a) Computed using fully taxable-equivalent net income
(b) Computed using net income available to shareholders
(c ) Computed by dividing non-interest expense by the sum of fully taxable-equivalent net interest income and non-interest income and excluding security gains/losses. 
   
  QUARTER ENDED
ENDING BALANCES 6/30/14 6/30/13
Total Assets $1,118,382 $1,106,454
Loans, Net of Reserves 724,939 730,920
Allowance for Loan Losses 10,470 12,957
Intangible Assets 170 206
Deposits 948,269 943,337
Common Shareholders' Equity 67,210 63,828
Common Equity to Total Assets 6.01% 5.77%
Total Equity 95,210 91,740
Total Equity to Total Assets 8.51% 8.29%
     
  QUARTER ENDED YEAR-TO-DATE
AVERAGE BALANCES 6/30/14 6/30/13 6/30/14 6/30/13
Total Assets $1,127,707 $1,110,107 $1,130,582 $1,117,201
Loans, Net of Reserves 728,928 727,288 728,785 725,456
Deposits 959,247 940,447 964,688 952,560
Common Shareholders' Equity 65,808 67,667 64,740 67,700
Total Equity 93,808 95,558 92,740 95,569
         
  QUARTER ENDED YEAR-TO-DATE
ASSET QUALITY 6/30/14 6/30/13 6/30/14 6/30/13
Nonperforming Loans $19,378 $24,685 $19,378 $24,685
Nonperforming Assets 31,585 41,180 31,585 41,180
Substandard Assets 47,120 58,152 47,120 58,152
Net Loan Chg-offs (Recoveries) 1,721 1,173 2,144 2,480
Reserve for Loan Loss to Total Loans 1.42% 1.74% 1.42% 1.74%
Reserve for Loan Loss to Non-performing Loans 54.03% 52.49% 54.03% 52.49%
Reserve for Loan Loss to Non-performing Assets 33.15% 31.46% 33.15% 31.46%
Net Loan Chg-offs (Recoveries) to Avg. Total Loans 0.23% 0.16% 0.29% 0.34%
Nonperforming Loans to Total Loans 2.63% 3.32% 2.63% 3.32%
Nonperforming Assets to Total Assets 2.82% 3.72% 2.82% 3.72%
Nonperforming Assets to Total Loans And Other Real Estate 4.22% 5.42% 4.22% 5.42%
Substandard Assets to Tier One Capital and Allowance for Loan Losses 32.54% 43.00% 32.54% 43.00%
 
Quarterly Comparative Data (in thousands, except per share data)
  2Q2014 1Q2014 4Q2013 3Q2013 2Q2013
           
Assets $1,118,382 $1,141,836 $1,148,551 $1,113,141 $1,106,454
Loans 724,939 726,125 739,052 734,792 730,920
Deposits 948,269 976,854 987,529 949,463 943,337
Common Shareholders' Equity 67,210 64,348 61,954 62,859 63,828
Total Equity 95,210 92,348 89,954 90,815 91,740
Net Income 2,016 1,457 1,626 1,080 986
Net Income Available to Common Shareholders 1,335 814 1,241 701 611
Net Income Per Share 0.16 0.10 0.15 0.08 0.07
           
Key Performance Ratios 2Q2014 1Q2014 4Q2013 3Q2013 2Q2013
Return on Average Assets (1) 0.47% 0.29% 0.44% 0.25% 0.22%
Return on Average Total Equity (1) 5.69% 3.55% 5.43% 3.09% 2.56%
Common Equity to Total Assets 6.01% 5.64% 5.38% 5.65% 5.77%
Total Equity to Total Assets 8.51% 8.09% 7.81% 8.16% 8.29%
Net Interest Margin 3.61% 3.47% 3.68% 3.67% 3.64%
(1) Computed using net income available to shareholders
       
Consolidated Balance Sheets Colony Bankcorp, Inc.      
(in thousands)      
       
  June 30, 2014 Dec. 31, 2013 June 30, 2013
  (unaudited) (audited) (unaudited)
ASSETS      
Cash and Cash Equivalents      
Cash and Due from Banks $21,867 $25,692 $17,051
Federal Funds Sold 11,081 20,495 9,918
  32,948 46,187 26,969
Interest-Bearing Deposits 11,372 21,960 13,408
Investment Securities      
Available for Sale, at Fair Value 276,062 263,258 267,131
Held for Maturity, at Cost (Fair Value of $32, $37 and $38 as of June 30, 2014, Dec. 31, 2013, and June 30, 2013, Respectively) 32 37 38
  276,094 263,295 267,169
Federal Home Loan Bank Stock, at Cost 2,831 3,164 3,164
Loans 735,763 751,218 744,143
Allowance for Loan Losses (10,470) (11,806) (12,957)
Unearned Interest and Fees (354) (360) (266)
  724,939 739,052 730,920
Premises and Equipment 24,951 24,876 25,035
Other Real Estate 12,208 15,502 16,128
Other Intangible Assets 170 188 206
Other Assets 32,869 34,327 23,455
Total Assets $1,118,382 $1,148,551 $1,106,454
       
LIABILITIES AND STOCKHOLDERS' EQUITY      
       
Deposits      
Noninterest-Bearing $114,757 $115,261 $111,478
Interest-Bearing 833,512 872,269 831,859
  948,269 987,530 943,337
Borrowed Money      
Subordinated Debentures 24,229 24,229 24,229
Other Borrowed Money 40,000 40,000 40,000
  64,229 64,229 64,229
       
Other Liabilities 10,674 6,838 7,148
       
Stockholders' Equity      
Preferred Stock, Stated Value $1,000 a Share; Authorized 10,000,000 Shares, Issued 28,000 Shares 28,000 28,000 27,912
Common Stock, Par Value $1 a share; Authorized 20,000,000 Shares, Issued 8,439,258 Shares as of June 30, 2014, Dec. 31, 2013 and June 30, 2013, Respectively 8,439 8,439 8,439
Paid in Capital 29,145 29,145 29,145
Retained Earnings 35,594 33,445 31,590
Accumulated Other Comprehensive Loss, Net of Tax (5,968) (9,075) (5,346)
  95,210 89,954 91,740
Total Liabilities and Stockholders' Equity $1,118,382 $1,148,551 $1,106,454
 
Consolidated Statements of Income Colony Bankcorp, Inc.
(in thousands except per share data)
         
  Quarter Year-to-Date
  Three Months Ended Six Months Ended
  6/30/14 6/30/13 6/30/14 6/30/13
  (unaudited) (unaudited) (unaudited) (unaudited)
Interest Income        
Loans, Including Fees $9,956 $10,359 $19,645 $20,720
Federal Funds Sold 8 6 17 20
Deposits with Other Banks 10 5 23 16
Investment Securities        
U. S. Government Agencies 1,225 862 2,409 1,574
State, County and Municipal 23 31 51 64
Corporate Obligations/Asset-Backed Sec. -- 14 -- 28
Dividends on Other Investments 29 19 59 38
  11,251 11,296 22,204 22,460
Interest Expense        
Deposits 1,288 1,405 2,609 3,091
Borrowed Money 435 436 873 868
  1,723 1,841 3,482 3,959
Net Interest Income 9,528 9,455 18,722 18,501
Provision for Loan Losses 481 1,200 808 2,700
Net Interest Income After Provision for Loan Losses 9,047 8,255 17,914 15,801
         
Noninterest Income        
Service Charges on Deposits 1,071 1,147 2,138 2,248
Other Service Charges, Commissions and Fees 639 443 1,220 847
Mortgage Fee Income 114 141 181 260
Securities Gains (Losses) 1 6 1 (2)
Other 421 303 768 897
  2,246 2,040 4,308 4,250
Noninterest Expense        
Salaries and Employee Benefits 4,305 4,149 8,717 8,318
Occupancy and Equipment 1,000 935 2,020 1,868
Other 2,986 3,655 6,420 6,945
  8,291 8,739 17,157 17,131
         
Income Before Income Taxes 3,002 1,556 5,065 2,920
Income Taxes 986 570 1,592 997
Net Income 2,016 986 3,473 1,923
         
Preferred Stock Dividends 681 375 1,324 745
         
Net Income Available to Common Shareholders $1,335 $611 $2,149 $1,178
Net Income Per Share of Common Stock        
Basic $0.16 $0.07 $0.25 $0.14
Diluted $0.16 $0.07 $0.25 $0.14
Weighted Average Basic Shares Outstanding 8,439,258 8,439,258 8,439,258 8,439,258
Weighted Average Diluted Shares Outstanding 8,439,258 8,439,258 8,439,258 8,439,258
CONTACT: Terry L. Hester
         Chief Financial Officer
         (229) 426-6000 (Ext 6002)
Source: Colony Bankcorp, Inc.

This article appears in: News Headlines

Referenced Stocks: CBAN


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