EXHIBIT 99.1
Colony Bankcorp, Inc. Announces Third Quarter Results
FITZGERALD, Ga., Oct. 21, 2009 (GLOBE NEWSWIRE) -- Colony Bankcorp, Inc. (Nasdaq:CBAN), today reported net income available to shareholders of $18,000, or $0.00 per diluted share for the third quarter of 2009, down from third quarter 2008 net income available to shareholders of $194,000 or $0.03 per diluted share, while the net loss available to shareholders for nine months ended September 30, 2009 was $5,966,000, or $(0.83) per diluted share compared to net income available to shareholders for the comparable period in 2008 of $2,699,000, or $0.38 per share. The decrease in net income for both periods is attributable to increased loan loss provisions, credit related charges and an increase in FDIC insurance assessments. Improvement in the Company's net interest margin and continued strong capital position are eclipsed by continued challenges in the housing and real estate market that have impacted our credit quality and the Company's provision for loan losses.
Colony continues to maintain a strong capital position, which was strengthened by the completion of the sale on January 9, 2009 of $28 million in preferred stock and warrants to the U.S. Treasury through its Capital Purchase Program ("CPP"). At September 30, 2009, the Company's tier one and total risk-based capital ratios were approximately 13.17 percent and 14.43 percent, respectively, compared to 10.80 percent and 12.06 percent, respectively, at December 31, 2008. The Company's total risk-based capital is approximately 44 percent over the regulatory guidelines to be well-capitalized which demonstrates the Company's strong capital position. In addition to funds from CPP providing a strong capital base, the Company continues following the intent of CPP to extend credit as a mechanism to stimulate the economy. During third quarter 2009, new and renewed loan originations totaled approximately $156 million, of which $64 million represented new loan extensions either funded or committed.
During the third quarter of 2009, the Company reported net interest income of $10.3 million and a net interest margin of 3.38 percent, compared to $9.9 million and 3.28 percent and $9.5 million and 3.34 percent, respectively, for second quarter 2009 and third quarter 2008. The Company has worked diligently since the latter part of 2008 to improve deposit and loan pricing and the Company has now realized two consecutive quarters of net interest margin improvement. Our goal of maximizing pre-tax, pre-provision core earnings will be dependent upon continued disciplined pricing efforts that should result in continued margin improvement.
The Company continues to closely monitor our real estate dependent loans and focus on asset quality. Non-performing assets increased to $55.2 million, or 5.59 percent of total loans and other real estate owned as of September 30, 2009. This compares to $46.3 million, or 4.74 percent as of June 30, 2009 and $34.4 million, or 3.53 percent as of September 30, 2008. The level of non-performing assets ties directly to the elevated risk in our residential and land development loan portfolio and has resulted in increased loan loss provisions in 2009 compared to 2008; thus a significant negative impact on our 2009 net income. The third quarter 2009 provision for loan losses was $4.00 million compared to $3.37 million for the same 2008 period, while the provision for loan losses was $21.58 million for nine months ended September 30, 2009 compared to $8.51 million for the same 2008 period. Unusually high levels of loan loss provision have been required as company management addresses asset quality deterioration associ ated with the continued housing and real estate downturn. "Until we see stabilization in the economy and the housing and real estate market, we expect problem assets and charge-offs to be elevated above historical levels as we work through our problem assets, but our strong capital position enables us to absorb losses without impairing the company's financial soundness," said Al D. Ross, President and Chief Executive Officer.
In the third quarter of 2009 net charge-offs were $1,016,000, or 0.11 percent of average loans as compared to net charge-offs of $2,884,000, or 0.30 percent of average loans in third quarter 2008, while net charge-offs for nine months ended September 30, 2009 were $17,237,000, or 1.79 percent of average loans as compared to $6,073,000, or 0.64 percent of average loans for the same 2008 period. The loan loss reserve was $21.36 million on September 30, 2009, or 2.20 percent of total loans compared to $17.95 million or 1.85 percent on September 30, 2008. Management believes that recent contributions to Allowance for Loan Losses adequately address the level of non-performing assets and the related level of classified assets, however current regulatory posture for the banking industry regarding methodology in determining loan loss reserve adequacy tends to encourage banks to move toward a more aggressive approach that will likely lead to additional provisions in the future.
Other significant factors negatively impacting YTD 2009 earnings were the increase in FDIC insurance assessments and credit related expenses. While the banking industry has sustained significant bank failures during the past several quarters, the FDIC insurance fund has fallen to levels requiring increased insurance assessments in order to maintain an adequate FDIC insurance reserve level. As a result rates utilized for quarterly insurance assessments have increased along with a special "one-time" assessment imposed during second quarter 2009. YTD 2009 FDIC insurance assessments total $2,208,000 compared to $421,000 for the same 2008 period. Also, the increased activity in non-performing assets resulted in foreclosure and repossession expense increasing to $932,000 for nine months ended September 30, 2009 compared to $188,000 for the same 2008 period.
During 2008 the Company merged all of its operations into one sole operating subsidiary which allowed the Company to implement operational enhancements. For nine months ended September 30, 2009 noninterest expense was $23,776,000 or an increase of 2.11 percent from noninterest expense of $23,284,000 in the same year ago period. This slight increase was accomplished while at the same time Colony experienced the significant increase in FDIC insurance assessments and repossession/foreclosure expenses.
The Company had total assets of $1,290,891,000, gross loans of $971,132,000, total deposits of $1,015,414,000 and total equity of $104,067,000 at September 30, 2009. Total equity to total assets was 8.06 percent at September 30, 2009 compared to 6.81 percent at September 30, 2008.
As a result of diminished earnings primarily attributable to working through the current level of non-performing assets, the board of directors made the difficult decision of suspending the payment of a cash dividend this quarter. Though the capital position of the Company remains strong, the board deemed prudent to suspend dividends until we work through this challenging operating environment and earnings performance returns to a level to support paying dividends. Until stabilization occurs with the economy and real estate market, future earnings performance will likely be impacted as the Company deals with the current regulatory approach to be more aggressive in recognizing losses and ramping up loan loss reserves.
Colony Bankcorp, Inc. is a bank holding company headquartered in Fitzgerald, Georgia that consists of one operating subsidiary, Colony Bank. The Company conducts a general full service commercial, consumer and mortgage banking business through thirty offices located in the middle and south Georgia cities of Fitzgerald, Warner Robins, Centerville, Ashburn, Leesburg, Cordele, Albany, Thomaston, Columbus, Sylvester, Tifton, Moultrie, Douglas, Broxton, Savannah, Eastman, Chester, Soperton, Rochelle, Pitts, Quitman and Valdosta, 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 09/30/09 09/30/08 09/30/09 09/30/08
---------- ---------- ---------- ----------
Net Interest Income $ 10,304 $ 9,485 $ 29,303 $ 28,133
Provision for Loan
Losses 4,000 3,370 21,580 8,512
Non-interest Income 2,340 1,780 8,306 7,185
Non-interest Expense 8,112 7,813 23,776 23,284
Income Taxes 164 (112) (2,796) 823
Net Income 368 194 (4,951) 2,699
Preferred Stock
Dividend 350 -- 1,015 --
Net Income Available
to Common
Shareholders 18 194 (5,966) 2,699
QUARTER ENDED YEAR-TO-DATE
PER COMMON SHARE 09/30/09 09/30/08 09/30/09 09/30/08
SUMMARY ---------- ---------- ---------- ----------
Common
Shares
Outstanding 7,229,163 7,213,813 7,229,163 7,213,813
Weighted Average
Basic Shares 7,217,006 7,201,580 7,209,852 7,197,016
Weighted Average
Diluted Shares 7,217,006 7,201,580 7,209,852 7,197,016
Earnings Per Basic
Share (b) $0.00 $0.03 $(0.83) $0.38
Earnings Per Diluted
Share (b) $0.00 $0.03 $(0.83) $0.38
Dividends Declared
Per Share $0.00 $0.0975 $0.1463 $0.2925
Common Book Value
Per Share $10.62 $11.48 $10.62 $11.48
Tangible Common Book
Value Per Share $10.24 $11.09 $10.24 $11.09
QUARTER ENDED YEAR-TO-DATE
OPERATING RATIOS (1) 09/30/09 09/30/08 09/30/09 09/30/08
---------- ---------- ---------- ----------
Net Interest Margin(a) 3.38% 3.34% 3.24% 3.34%
Return on Average
Assets (b) 0.01% 0.06% (0.62)% 0.30%
Return on Average
Common Equity (b) 0.07% 0.93% (7.42)% 4.24%
Efficiency (c) 67.02% 68.86% 68.56% 67.71%
(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 any security gains/losses.
QUARTER ENDED
ENDING BALANCES 09/30/09 09/30/08
---------- ----------
Total Assets $1,290,891 $1,215,330
Loans, Net of
Reserves 949,629 952,504
Allowance for Loan
Losses 21,359 17,952
Goodwill 2,412 2,412
Intangible Assets 340 375
Deposits 1,015,414 977,752
Common Shareholders'
Equity 76,746 82,806
Common Equity to
Total Assets 5.95% 6.81%
Total Equity 104,067 82,806
Total Equity to
Total Assets 8.06% 6.81%
QUARTER ENDED YEAR-TO-DATE
AVERAGE BALANCES 09/30/09 09/30/08 09/30/09 09/30/08
---------- ---------- ---------- ----------
Total Assets $1,295,833 $1,208,790 $1,282,396 $1,194,252
Loans, Net of
Reserves 947,400 947,500 944,979 937,558
Deposits 1,026,094 973,607 1,011,256 984,493
Common Shareholders'
Equity 76,500 83,834 80,702 84,967
Total Equity 103,802 83,834 107,249 84,967
QUARTER ENDED YEAR-TO-DATE
ASSET QUALITY 09/30/09 09/30/08 09/30/09 09/30/08
---------- ---------- ---------- ----------
Nonperforming Loans $ 38,733 $ 29,687 $ 38,733 $ 29,687
Nonperforming Assets 55,249 34,443 55,249 34,443
Net Loan Chg-offs
(Recoveries) 1,016 2,884 17,237 6,073
Reserve for Loan Loss
to Gross Loans 2.20% 1.85% 2.20% 1.85%
Reserve for Loan Loss
to Non-performing
Loans 55.14% 60.47% 55.14% 60.47%
Reserve for Loan Loss
to Non-performing
Assets 38.66% 52.12% 38.66% 52.12%
Net Loan Chg-offs
(Recoveries) to Avg
Gross Loans 0.11% 0.30% 1.79% 0.64%
Nonperforming Loans
to Gross Loans 3.99% 3.06% 3.99% 3.06%
Nonperforming Assets
to Total Assets 4.28% 2.83% 4.28% 2.83%
Nonperforming Assets
to Total Loans
And Other Real
Estate 5.59% 3.53% 5.59% 3.53%
Quarterly Comparative Data (in thousands, except per share data)
3Q2009 2Q2009 1Q2009 4Q2008 3Q2008
Assets $1,290,891 $1,294,575 $1,283,005 $1,252,782 $1,215,330
Loans 949,629 945,309 943,674 943,841 952,504
Deposits 1,015,414 1,016,539 1,011,695 1,006,992 977,752
Common
Share-
holders'
Equity 76,746 76,409 82,277 83,215 82,806
Total
Equity 104,067 103,694 109,527 83,215 82,806
Net Income 368 (6,397) 1,078 (670) 194
Net Income
Available
to Common
Share-
holders 18 (6,747) 763 (670) 194
Net Income
Per Share 0.00 (0.94) 0.11 (0.09) 0.03
Dividends
Declared
Per Share 0.00 0.0488 0.0975 0.0975 0.0975
Key
Perfor-
mance
Ratios 3Q2009 2Q2009 1Q2009 4Q2008 3Q2008
Return on
Assets(1) 0.01% (2.10)% 0.24% (0.22)% 0.06%
Return on
Equity (1) 0.07% (32.81)% 3.63% (3.25)% 0.93%
Common
Equity
to Total
Assets 5.95% 5.90% 6.41% 6.64% 6.81%
Total
Equity
to Total
Assets 8.06% 8.01% 8.54% 6.64% 6.81%
Net
Interest
Margin 3.38% 3.28% 3.06% 3.18% 3.34%
(1) Computed using net income available to shareholders
Consolidated Balance Sheets Colony Bankcorp, Inc.
(in thousands)
Sept. 30, 2009 Sept. 30, 2008
-------------- --------------
(unaudited) (unaudited)
ASSETS
Cash and Cash Equivalents
Cash and Due from Banks $16,559 $22,929
Federal Funds Sold -- 199
-- ---
16,559 23,128
------- ------
Interest-Bearing Deposits 162 435
--- ---
Investment Securities
Available for Sale, at Fair Value 247,014 171,863
Held for Maturity, at Cost
(Fair Value of $62 and $67 as of
Sept. 30, 2009 and Sept. 30,
2008, Respectively) 60 65
-- --
247,074 171,928
-------- -------
Federal Home Loan Bank Stock,
at Cost 6,345 6,317
----- -----
Loans 971,132 970,682
Allowance for Loan Losses (21,359) (17,952)
Unearned Interest and Fees (144) (226)
--- ---
949,629 952,504
------- -------
Premises and Equipment 29,022 29,399
------ ------
Other Real Estate 16,516 4,756
------ -----
Goodwill 2,412 2,412
----- -----
Other Intangible Assets 340 375
--- ---
Other Assets 22,832 24,076
------ ------
Total Assets $1,290,891 $1,215,330
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
Noninterest-Bearing $70,345 $69,038
Interest-Bearing 945,069 908,714
------- -------
1,015,414 977,752
--------- -------
Borrowed Money
Federal Funds Purchased 5,697 12,664
Securities Sold Under Agreements
to Repurchase 45,232 20,000
Subordinated Debentures 24,229 24,229
Other Borrowed Money 91,000 91,000
------- ------
166,158 147,893
------- -------
Other Liabilities 5,252 6,879
----- -----
Stockholders' Equity
Preferred Stock, Par Value
$1,000; Authorized 10,000,000
Shares, Issued 28,000 Shares 27,321 --
Common Stock, Par Value $1;
Authorized 20,000,000
Shares, Issued 7,229,163 and
7,213,813 Shares 7,229 7,214
Paid in Capital 25,393 24,561
Retained Earnings 44,173 52,675
Restricted Stock- Unearned
Compensation (206) (275)
Accumulated Other Comprehensive
Loss, Net of Tax 157 (1,369)
--- -----
104,067 82,806
------- ------
Total Liabilities and Stockholders'
Equity $1,290,891 $1,215,330
========== ==========
Consolidated Statements of Income Colony Bankcorp, Inc.
(in thousands except per share data)
Quarter Year-to-Date
Three Months Ended Six Months Ended
09/30/09 09/30/08 09/30/09 09/30/08
--------- --------- --------- ---------
(unaudited) (unaudited) (unaudited) (unaudited)
Interest Income
Loans, Including
Fees $14,569 $16,295 $43,342 $51,386
Federal Funds Sold 3 25 14 264
Deposits with Other
Banks -- 7 -- 27
Investment
Securities
U.S. Government
Agencies 1,932 1,809 5,886 5,076
State, County and
Municipal 59 92 207 322
Corporate
Obligations/
Asset-Backed Sec. 74 113 287 292
Dividends on Other
Investments 13 87 13 253
-- -- -- ---
16,650 18,428 49,749 57,620
------ ------ ------ ------
Interest Expense
Deposits 5,202 7,599 16,928 25,746
Federal Funds
Purchased and
Repurchase
Agreements 222 241 658 293
Borrowed Money 922 1,103 2,860 3,448
--- ----- ----- -----
6,346 8,943 20,446 29,487
----- ----- ------ ------
Net Interest Income 10,304 9,485 29,303 28,133
Provision for Loan
Losses 4,000 3,370 21,580 8,512
----- ----- ------ -----
Net Interest Income
After Provision for
Loan Losses 6,304 6,115 7,723 19,621
----- ----- ----- ------
Noninterest Income
Service Charges on
Deposits 1,125 1,233 3,155 3,571
Other Service
Charges,
Commissions and
Fees 259 240 747 735
Mortgage Fee Income 137 168 368 511
Securities Gains 609 11 3,147 1,195
Other 210 128 889 1,173
--- --- --- -----
2,340 1,780 8,306 7,185
----- ----- ----- -----
Noninterest Expense
Salaries and
Employee Benefits 3,556 4,051 10,946 12,483
Occupancy and
Equipment 1,132 1,098 3,182 3,166
Other 3,424 2,664 9,648 7,635
----- ----- ----- -----
8,112 7,813 23,776 23,284
----- ----- ------ ------
Income Before Income
Taxes 532 82 (7,747) 3,522
Income Taxes 164 (112) (2,796) 823
--- --- ----- ---
Net Income 368 194 (4,951) 2,699
--- --- ----- -----
Preferred Stock
Dividends 350 -- 1,015 --
Net Income Available
to Common
Shareholders $18 $194 $(5,966) $2,699
=== ==== ======= ======
Net Income Per Share
of Common Stock
Basic $0.00 $0.03 $(0.83) $0.38
==== ==== ====== =====
Diluted $0.00 $0.03 $(0.83) $0.38
===== ===== ====== =====
Weighted Average
Basic Shares
Outstanding 7,217,006 7,201,580 7,209,852 7,197,016
========= ========= ========= =========
Weighted Average
Diluted Shares
Outstanding 7,217,006 7,201,580 7,209,852 7,197,016
========= ========= ========= =========
CONTACT: Colony Bankcorp, Inc.
Terry L. Hester, Chief Financial Officer
(229) 426-6002
