Colony Bankcorp (CBAN) CORRESP Correspondence with SEC

MARTIN SNOW, LLP ATTORNEYS AT LAW   240 THIRD STREET POST OFFICE BOX 1606 MACON, GEORGIA 31202-1606 TELEPHONE 478/749-1700 TELECOPIER 478/743-4204   WRITER’S DIRECT DIAL : 478/749-1709 E-MAIL: mnwhite@martinsnow.com   WENDELL L. BOWDEN EDWARD J. HARRELL JOHN C. EDWARDS J. KENNETH WALKER ROBERT R. GUNN, II JOHN T. McGOLDRICK, JR. CUBBEDGE SNOW, III WILLIAM H. LARSEN EDWARD L. LONG, JR. JOHN C. DANIEL, III T. BARON GIBSON, II CRAWFORD B. EDWARDS, JR. MICHAEL M. SMITH LISA M. EDWARDS BLAIR K. CLEVELAND THOMAS PETER ALLEN III AMBER K. DUFF   MICHAEL N. WHITE H. DAVID BULLARD RICHARD A. EPPS, JR. ROSS S. SCHELL JENNY MARTIN STANSFIELD MARTY K. SENN STUART E. WALKER   OF COUNSEL JEFFREY M. RUTLEDGE   EMERITUS T. BALDWIN MARTIN, JR. CUBBEDGE SNOW, JR. REMER C. DANIEL  

November 21, 2008

Mr. William Friar, Senior Financial Analyst

U.S. Securities & Exchange Commission

Washington, DC 20549

RE: Colony Bankcorp, Inc.

Schedule 14A

Filed October 30, 2008

File No. 000-12436

Dear Mr. Friar:

In response to your comment letter dated November 10, 2008, please see the following numbered responses containing the requested information and disclosure revisions for the Schedule 14A:

1. The Company filed its preliminary application with the appropriate federal banking regulatory agencies on November 10, 2008, which is now disclosed on pages 3 and 5 of the amended Schedule 14A filed herewith.

2. The Company has amended the Schedule 14A to disclose its intended use of the proceeds of the proposed sale of securities to Treasury on page 6.

3. On page 7, the seventh bullet point discloses the potential appointment of two new directors required by Treasury under the Capital Purchase Program (“CPP”).  Additional language has been added on page 4 and Appendix “A” to provide for the election of directors by the preferred shareholders, and no further shareholder approval would be necessary to comply because the current bylaws of the Company permit the bank to have up to 25 directors.  The Company’s participation in the CPP will not require restructuring of its executive compensation arrangements.  Please see amended disclosure on page 8.

Page Two

Mr. William Friar, Senior Financial Analyst

November 19, 2008

4. Please see the amended disclosures on page 6 explaining that the Treasury’s denial would have no material adverse effect on the Company’s liquidity capital resources or results of operation.

5. Please see the amended discussion on page 8 that the Company will not be required to modify any compensation plans or contracts to comply with Section 111 of the EESA.

6. Please see the amended disclosure on page 7 which states the current market price of the Company’s common stock.  The initial filing included the 20 day average market price disclosure.

In addition, pursuant to our conversations with Mr. Michael Clampitt, please see the additional pro forma information required by Item 13 of Schedule 14A on pages 8-16 and the specific reports incorporated by reference on page 21.

As requested in your letter, a Statement of Acknowledgment in connection with the Company’s response to the Commission’s comments is enclosed.  If you have any further questions or require any additional information or documentation, please contact me at 478-749-1709.

Yours very truly,

/s/ Michael N. White

MICHAEL N. WHITE

Attorney for Colony Bankcorp, Inc.

MNW:ps

Enclosures

cc:           Mr. Terry Hester

STATEMENT OF ACKNOWLEDGMENT

The undersigned, Colony Bankcorp, Inc. (the “Company”), hereby acknowledges to the United States Securities and Exchange Commission (the “Commission”) in connection with the Company’s responses to the comments of the Commission regarding the filing of its Schedule 14A filed on October 30, 2008, and all amendments thereto, the following:

1.            The Company is responsible for the adequacy and accuracy of the disclosure in the filing;

2.            Staff comments or changes to disclosure in response to staff comments do not foreclose the Commission from taking any action with respect to the filing; and

3.            The Company may not assert staff comments as a defense in any proceeding initiated by the Commission or by any person under the federal securities laws of the United States.

COLONY BANKCORP, INC.
BY:	/s/ Al D. Ross
	AL D. ROSS
	President and Chief Executive Officer
Date:	November 21, 2008

	December 31, 2007						September 30, 2008
			$9.6 million		$28.9 million				$9.6 million		$28.9 million
	Historical		1%		3%		Historical		1%		3%
Net interest income	$	42,458	$	42,938	$	43,903	$	28,133	$	28,439	$	29,054
Provision for losses on loans		5,931		5,931		5,931		8,512		8,512		8,512
Net interest income after provision for losses on loans		36,527		37,007		37,972		19,621		19,927		20,542
Noninterest income		7,817		7,817		7,817		7,185		7,185		7,185
Noninterest expense		31,579		31,579		31,579		23,284		23,284		23,284
Income from continuing operations before income taxes		12,765		13,245		14,210		3,522		3,828		4,443
Income tax expense		4,218		4,381		4,709		823		927		1,136
Income from continuing operations		8,547		8,864		9,501		2,699		2,901		3,307
Less: Preferred dividends				517		1,555				512		1,540
Income from continuing operations available to common stockholders	$	8,547	$	8,347	$	7,946	$	2,699	$	2,389	$	1,767
Basic earnings per share available to common stockholders	$	1.19	$	1.16	$	1.11	$	0.38	$	0.33	$	0.25
Diluted earnings per share available to common stockholders	$	1.19	$	1.15	$	1.07	$	0.38	$	0.33	$	0.24
Weighted Average Shares		7,188,696		7,188,696		7,188,696		7,197,016		7,197,016		7,197,016
Diluted Average Shares		7,197,331		7,277,131		7,436,730		7,197,016		7,234,939		7,310,785
Adjustments:
Net interest income				480		1,445				306		921
Income taxes				163		491				104		313
Preferred Dividends:
5% of Preferred Stock				480		1,445				480		1,445
Accretion of Discount				37		110				32		95
				517		1,555				512		1,540
			1%		3%
Risk Weighted Assets as of 9/30/08	$	962,938,272	$	9,629,383	$	28,888,148
Warrants at 15%			$	1,444,407	$	4,333,222
# of warrants based on average price of $9.25				156,152		468,456

Date	Open		High		Low		Close/Last		Volume
11/14/2008		8.57		8.57		8.57		8.57		564
11/13/2008		8.6		8.75		8.28		8.57		7,483
11/12/2008		9		9		8.6		8.99		13,096
11/11/2008		9.19		9.2		9.19		9.19		500
11/10/2008		9.1999		9.1999		9.1999		9.1999		100
11/7/2008		9.0501		9.085		9.05		9.0501		2,104
11/6/2008		9.03		9.03		9.01		9.01		1,491
11/5/2008		9.03		9.47		9		9.435		0
11/4/2008		9.03		9.47		9		9.435		0
11/3/2008		9.03		9.47		9		9.435		2,014
10/31/2008		8.75		8.75		8.75		8.75		2,577
10/30/2008		8.75		8.75		8.75		8.75		1,992
10/29/2008		9.2		9.2		8.54		8.75		3,149
10/28/2008		9.2		9.2		9.2		9.2		200
10/27/2008		9.27		9.31		9.25		9.25		2,132
10/24/2008		9.9		9.9		9.9		9.9		0
10/23/2008		9.9		9.9		9.9		9.9		0
10/22/2008		9.9		9.9		9.9		9.9		0
10/21/2008		9.9		9.9		9.9		9.9		0
10/20/2008		9.9		9.9		9.9		9.9		1,000
								9.25

Information obtained from nasdaq.com