EXHIBIT 99.1
FOR IMMEDIATE RELEASE
Date: April 10, 2003 10:00 A.M.
Contact: Terry L. Hester
Chief Financial Officer
(229) 426-6002
Colony Bankcorp, Inc. Announces First Quarter Results
FITZGERALD, GA., April 10, 2003 — Colony Bankcorp, Inc. (Nasdaq: CBAN), today reported that asset growth continued to be good as Colony reached a milestone during the quarter with total assets surpassing $800 million. Total assets increased 13.45% to $801,409,000 on March 31, 2003 from $706,371,000 a year ago. Net loans increased 14.98% to $594,897,000 on March 31, 2003 from $517,392,000 a year ago. Total deposits increased 12.20% to $675,671,000 on March 31, 2003 from $602,212,000 a year ago. Shareholders’ equity on March 31, 2003 was $52,484,000 and equaled 6.55% of total assets.
Net income for the first quarter of 2003 was $1,645,000, up 20.96% from first quarter 2002 net income of $1,360,000. Of the $285,000 increase, Colony Bank Quitman, FSB is attributable for $251,000 since their income was not included in first quarter 2002 due to their acquisition being consummated on March 29, 2002. On a per share basis, net income was $0.36, up 12.50% from first quarter 2002 net income per share of $0.32. Annualized return on assets for the quarter was 0.84% and return on equity excluding FASB 115 accounting effect was 12.85%, compared to 0.87% and 13.10% in the first quarter of 2002, respectively. A primary focus of our 2003 business plan is net interest margin improvement, which improved to 3.63% for first quarter 2003 compared to 3.54% for first quarter 2002.
Company management continues to focus on high credit quality and credit administration. The ratio of non-performing assets to loans and other real estate on March 31, 2003 was 1.74% as compared to 2.00% on March 31, 2002 and 1.61% on December 31, 2002. Net charge-offs for the quarter were 0.03% of average loans, down from 0.09% for the first quarter of 2002. The loan loss reserve was 1.30% of total loans, which provided coverage of 86.89% of nonperforming loans and 74.36% of nonperforming assets, compared to 72.11% and 61.56% on March 31, 2002, respectively.
The wholesale banking activities of Colony continue to make a significant contribution to net income. During the quarter, two new relationships were established bringing the total to 14 community banks having participation lines exceeding $83,000,000.
In other business, the Board of Directors approved management’s two year Business Plan setting out goals for improved earnings and expansion designed to assure continued enhancement of shareholder value. Paramount to this initiative is additional oversight of asset quality, consolidation pursuant to efficiency goals and extensive training programs across all levels of staff.
Colony Bankcorp, Inc. is a multi-bank holding company headquartered in Fitzgerald, Georgia that consists of the following subsidiaries: Colony Bank of Fitzgerald, Colony Bank Wilcox, Colony Bank Ashburn, Colony Bank of Dodge County, Colony Bank Worth, Colony Bank Southeast, Colony Bank Quitman, FSB, Georgia First Mortgage Company and Colony Management Services, Inc. The Company conducts a general full service commercial, consumer and mortgage banking business through twenty-two offices located in the South Georgia cities of Fitzgerald, Warner Robins, Ashburn, Leesburg, Cordele, Albany, Sylvester, Tifton, Moultrie, Douglas, Broxton, Eastman, Chester, Soperton, Rochelle, Pitts, Quitman and Valdosta, Georgia.
Colony Bankcorp, Inc. Common Stock is quoted on the Nasdaq National Market under the symbol “CBAN”.
The preceding release contains statements that constitute “forward-looking statements” within the meaning of Section 27 A of the Securities Act of 1933, as amended, and Section 21 E of the Securities Exchange Act of 1934, as amended. The words “believe,” “estimate,” “expect,” “intend,” “anticipate,” and similar expressions and variations thereof identify certain of such forward-looking statements, which speak only as of the dates which they were made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those indicated in the forward-looking statements as a result of various factors. 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 | 03/31/03 | 03/31/02* | 03/31/03 | 03/31/02* | ||||||||
Net Interest Income | $ | 6,638 | $ | 5,165 | $ | 6,638 | $ | 5,165 | ||||
Provision for Loan Losses |
| 649 |
| 286 |
| 649 |
| 286 | ||||
Non-interest Income |
| 1,376 |
| 1,095 |
| 1,376 |
| 1,095 | ||||
Non-interest Expense |
| 4,884 |
| 3,954 |
| 4,884 |
| 3,954 | ||||
Income Taxes |
| 836 |
| 660 |
| 836 |
| 660 | ||||
Net Income |
| 1,645 |
| 1,360 |
| 1,645 |
| 1,360 | ||||
Operating Income |
| 1,645 |
| 1,360 |
| 1,645 |
| 1,360 |
QUARTER ENDED | YEAR-TO-DATE | |||||||||||||
PER SHARE SUMMARY | 03/31/03 | 03/31/02 | 03/31/03 | 03/31/02 | ||||||||||
Common Shares Outstanding |
| 4,583,382 |
| 4,573,482 |
|
| 4,583,382 |
| 4,573,482 |
| ||||
Weighted Average Shares |
| 4,583,382 |
| 4,210,442 |
|
| 4,583,382 |
| 4,210,442 |
| ||||
Net Income Per Weighted | ||||||||||||||
Average Shares | $ | 0.36 | $ | 0.32 | * | $ | 0.36 | $ | 0.32 | * | ||||
Operating Income Per Weighted | ||||||||||||||
Average Shares | $ | 0.36 | $ | 0.32 | * | $ | 0.36 | $ | 0.32 | * | ||||
Dividends Declared Per Share | $ | 0.075 | $ | 0.06 |
| $ | 0.075 | $ | 0.06 |
|
QUARTER ENDED | YEAR-TO-DATE | |||||||||||
OPERATING RATIOS (1) | 03/31/03 | 03/31/02 | 03/31/03 | 03/31/02 | ||||||||
Net Interest Margin (a) | 3.63 | % | 3.54 | % | 3.63 | % | 3.54 | % | ||||
Return on Average Assets | ||||||||||||
Based on Net Income | 0.84 | % | 0.87 | % | 0.84 | % | 0.87 | % | ||||
Return on Average Assets | ||||||||||||
Based on Operating Income | 0.84 | % | 0.87 | % | 0.84 | % | 0.87 | % | ||||
Return on Average Equity | ||||||||||||
Based on Net Income | 12.85 | % | 13.10 | % | 12.85 | % | 13.10 | % | ||||
Return on Average Equity | ||||||||||||
Based on Operating Income | 12.85 | % | 13.10 | % | 12.85 | % | 13.10 | % | ||||
Efficiency (b) | 60.44 | % | 62.50 | % | 60.44 | % | 62.50 | % |
QUARTER ENDED | ||||||||
ENDING BALANCES | 03/31/03 | 03/31/02 | ||||||
Total Assets | $ | 801,409 |
| $ | 706,371 |
| ||
Loans Held for Sale |
| 5,855 |
|
| 2,260 |
| ||
Loans, Net of Reserves |
| 594,897 |
|
| 517,392 |
| ||
Allowance for Loan Losses |
| 7,820 |
|
| 6,481 |
| ||
Intangible Assets |
| 808 |
|
| 1,099 |
| ||
Deposits |
| 675,671 |
|
| 602,212 |
| ||
Stockholders’ Equity |
| 52,484 |
|
| 47,209 |
| ||
Book Value Per Share | $ | 11.45 |
| $ | 10.33 |
| ||
Tangible Book Value Per Share | $ | 11.27 |
| $ | 10.09 |
| ||
Shareholders’ Equity to Total Assets |
| 6.55 | % |
| 6.69 | % |
(1) | Annualized. |
(a) | Computed using fully taxable-equivalent net income. |
(b) | Computed by dividing non-interest expense by the sum of fully taxable-equivalent net interest income and non-interest income and excluding any security gains/losses. |
* | March 31, 2002 QTD and YTD earnings summary does not include Colony Bank Quitman, FSB as the acquisition was consummated on March 29, 2002. |
COLONY BANKCORP, INC
FINANCIAL HIGHLIGHTS (UNAUDITED)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
QUARTER ENDED | YEAR-TO-DATE | |||||||||||
AVERAGE BALANCES | 03/31/03 | 03/31/02 | 03/31/03 | 03/31/02 | ||||||||
Total Assets | $ | 780,208 | $ | 625,857 | $ | 780,208 | $ | 625,857 | ||||
Loans, Net of Reserves |
| 577,200 |
| 458,194 |
| 577,200 |
| 458,194 | ||||
Deposits |
| 664,245 |
| 532,892 |
| 664,245 |
| 532,892 | ||||
Stockholders’ Equity |
| 52,075 |
| 42,216 |
| 52,075 |
| 42,216 |
QUARTER ENDED | YEAR-TO-DATE | |||||||||||||||
ASSET QUALITY | 03/31/03 | 03/31/02 | 03/31/03 | 03/31/02 | ||||||||||||
Nonperforming Loans | $ | 9,000 |
| $ | 8,988 |
| $ | 9,000 |
| $ | 8,988 |
| ||||
Nonperforming Assets |
| 10,517 |
|
| 10,528 |
|
| 10,517 |
|
| 10,528 |
| ||||
Net Loan Chg-offs (Recoveries) |
| 193 |
|
| 415 |
|
| 193 |
|
| 415 |
| ||||
Reserve for Loan Loss to Gross Loans |
| 1.30 | % |
| 1.24 | % |
| 1.30 | % |
| 1.24 | % | ||||
Reserve for Loan Loss to Non-performing Loans |
| 86.89 | % |
| 72.11 | % |
| 86.89 | % |
| 72.11 | % | ||||
Reserve for Loan Loss to Non-performing Assets |
| 74.36 | % |
| 61.56 | % |
| 74.36 | % |
| 61.56 | % | ||||
Net Loan Chg-offs (Recoveries) to Avg. Gross Loans |
| 0.03 | % |
| 0.09 | % |
| 0.03 | % |
| 0.09 | % | ||||
Nonperforming Loans to Gross Loans |
| 1.49 | % |
| 1.72 | % |
| 1.49 | % |
| 1.72 | % | ||||
Nonperforming Assets to Total Assets |
| 1.31 | % |
| 1.49 | % |
| 1.31 | % |
| 1.49 | % | ||||
Nonperforming Assets to Loans and Other Real Estate |
| 1.74 | % |
| 2.00 | % |
| 1.74 | % |
| 2.00 | % |