EXHIBIT 99.1
Colony Bankcorp, Inc. Announces First Quarter Results
FITZGERALD, Ga., April 23, 2010 (GLOBE NEWSWIRE) -- Colony Bankcorp, Inc. (Nasdaq:CBAN) today reported net income available to shareholders of $580,000, or $0.08 per diluted share for the first quarter of 2010, down from first quarter 2009 net income available to shareholders of $763,000 or $0.11 per diluted share. The continued downturn of the housing and real estate market and the economy in general has contributed to financial results well below our historic standard. "Credit issues and a challenging recessionary period have created an unprecedented operating environment for Colony and the entire banking industry. Though first quarter earnings are below our historic standards, our pre-tax, pre-provision core earnings continue to provide strong support for our loan loss provisions needed to cover the dec line in collateral values in the real estate dependent and income producing real estate loans of our loan portfolio. The pace of problem loan formation has slowed from prior periods and we are beginning to see some slight but positive signs of economic improvement. Although we are encouraged with the early signs of economic recovery, there is much work remaining to reduce our non-performing assets to an acceptable level. We remain committed to an aggressive posture in addressing our problem loans in a timely and prudent manner," said Al D. Ross, President and Chief Executive Officer.
Colony continues to maintain a favorable capital position to be categorized as "well-capitalized" by regulatory benchmarks. At March 31, 2010, the Company's tier one leverage ratio, tier one and total risk-based capital ratios were 8.48 percent, 12.91 percent and 14.19 percent, respectively, compared to 8.30 percent, 11.79 percent and 13.07 percent, respectively, at December 31, 2009. 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%, respectively. During first quarter 2010, the Company strengthened its capital position by accepting subscriptions of several accredited investors in a private placement stock offering. The offering was closed on March 30, 2010 with proceeds realized of $5.08 million.
During the first quarter of 2010, the Company reported net interest income of $9.68 million and a net interest margin of 3.17 percent, compared to $9.06 million and 3.06 percent, respectively, for first quarter 2009. The Company continues to work toward increased net interest income by improving deposit and loan pricing, while at the same time minimizing interest rate risk exposure by extending some liabilities to longer maturities in anticipation of higher interest rates in the future and maintaining higher levels of liquidity for balance sheet structuring. Extending liabilities and maintaining higher liquidity levels will pressure our net interest margin in the near term, but we feel prudent for interest rate risk management in the current low interest rate environment.
The Company continues to closely monitor our real estate dependent loans and focus on asset quality. Non-performing assets increased slightly from December 31, 2009 to $53.7 million, or 5.98 percent of total loans and other real estate owned as of March 31, 2010. This compares to $53.4 million, or 5.62 percent as of December 31, 2009 and $53.1 million, or 5.45 percent as of March 31, 2009. The level of non-performing assets ties directly to the elevated risk in our residential and land development loan portfolio and has resulted in higher than normal loan loss provisions in 2010, 2009 and 2008. The Company was able to reduce loan loss provisions from the same year ago period as the first quarter 2010 provision for loan losses was $3.25 million compared to $4.23 million for the same 2009 period. Unusually high levels of loan loss provision have been required as company management addresses asset quality deterioration associated with the housing and real estate downturn. Until we see stabi lization 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.
In the first quarter of 2010 net charge-offs were $4,955,000, or 0.55 percent of average loans as compared to net charge-offs of $2,245,000, or 0.23 percent of average loans in first quarter 2009. The loan loss reserve was $29.70 million on March 31, 2010, or 3.38 percent of total loans compared to $31.40 million on December 31, 2009, or 3.37 percent of total loans and compared to $19.00 million, or 1.97 percent on March 31, 2009. Management believes that the first quarter 2010 contributions to Allowance for Loan Losses address the level of non-performing assets and the related level of classified assets to be adequately reserved at March 31, 2010.
Other significant factors negatively impacting first quarter 2010 earnings were 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. First quarter 2010 FDIC insurance assessments total $527,000 compared to $404,000 for the same 2009 period. Also, the increased activity in non-performing assets resulted in foreclosure and repossession expense increasing to $343,000 for first quarter 2010 compared to $231,000 for the same 2009 period. In addition, write-downs on OREO property and the loss from sale of OREO property resulted in losses of $780,000 for first quarter 2010 compared to a gain of $9,000 for the same year ago period.
The Company had total assets of $1,294,617,000, gross loans of $879,497,000, total deposits of $1,056,010,000 and total equity of $95,011,000 at March 31, 2010. Total equity to total assets was 7.34 percent at March 31, 2010 compared to 8.54 percent at March 31, 2009.
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 futur e 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 | 03/31/10 | 03/31/09 | 03/31/10 | 03/31/09 |
| Net Interest Income | $9,678 | $9,060 | $9,678 | $9,060 |
| Provision for Loan Losses | 3,250 | 4,225 | 3,250 | 4,225 |
| Non-interest Income | 2,912 | 3,958 | 2,912 | 3,958 |
| Non-interest Expense | 8,313 | 7,357 | 8,313 | 7,357 |
| Income Taxes | 97 | 358 | 97 | 358 |
| Net Income | 930 | 1,078 | 930 | 1,078 |
| Preferred Stock Dividend | 350 | 315 | 350 | 315 |
| Net Income Available to Common Shareholders | 580 | 763 | 580 | 763 |
| | | | | |
| | | | | |
| | QUARTER ENDED | YEAR-TO-DATE |
| PER COMMON SHARE SUMMARY | 03/31/10 | 03/31/09 | 03/31/10 | 03/31/09 |
| Common Shares Outstanding | 8,445,208 | 7,231,163 | 8,445,208 | 7,231,163 |
| Weighted Average Basic Shares | 7,256,062 | 7,202,865 | 7,256,062 | 7,202,865 |
| Weighted Average Diluted Shares | 7,256,062 | 7,202,865 | 7,256,062 | 7,202,865 |
| Earnings Per Basic Share (b) | $0.08 | $0.11 | $0.08 | $0.11 |
| Earnings Per Diluted Share (b) | $0.08 | $0.11 | $0.08 | $0.11 |
| Dividends Declared Per Share | $0.00 | $0.0975 | $0.00 | $0.0975 |
| Common Book Value Per Share | $8.01 | $11.38 | $8.01 | $11.38 |
| Tangible Common Book Value Per Share | $7.97 | $11.00 | $7.97 | $11.00 |
| | | | | |
| | QUARTER ENDED | YEAR-TO-DATE |
| OPERATING RATIOS (1) | 03/31/10 | 03/31/09 | 03/31/10 | 03/31/09 |
| Net Interest Margin (a) | 3.17% | 3.06% | 3.17% | 3.06% |
| Return on Average Assets (b) | 0.18% | 0.24% | 0.18% | 0.24% |
| Return on Average Total Equity (b) | 2.57% | 3.63% | 2.57% | 3.63% |
| Efficiency (c) | 70.13% | 68.24% | 70.13% | 68.24% |
| | | | | |
(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 and goodwill impairment expenses. |
| |
| | QUARTER ENDED | | |
| ENDING BALANCES | 03/31/10 | 03/31/09 | | |
| Total Assets | $1,294,617 | $1,283,005 | | |
| Loans, Net of Reserves | 849,702 | 943,674 | | |
| Allowance for Loan Losses | 29,696 | 18,996 | | |
| Goodwill | -- | 2,412 | | |
| Intangible Assets | 322 | 358 | | |
| Deposits | 1,056,010 | 1,011,695 | | |
| Common Shareholders' Equity | 67,617 | 82,277 | | |
| Common Equity to Total Assets | 5.22% | 6.41% | | |
| Total Equity | 95,011 | 109,527 | | |
| Total Equity to Total Assets | 7.34% | 8.54% | | |
| | | | | |
| | QUARTER ENDED | YEAR-TO-DATE |
| AVERAGE BALANCES | 03/31/10 | 03/31/09 | 03/31/10 | 03/31/09 |
| Total Assets | $1,300,539 | $1,268,612 | $1,300,539 | $1,268,612 |
| Loans, Net of Reserves | 872,836 | 939,326 | 872,836 | 939,326 |
| Deposits | 1,057,087 | 999,172 | 1,057,087 | 999,172 |
| Common Shareholders' Equity | 62,963 | 84,118 | 62,963 | 84,118 |
| Total Equity | 90,335 | 108,318 | 90,335 | 108,318 |
| | | | | |
| | QUARTER ENDED | YEAR-TO-DATE |
| ASSET QUALITY | 03/31/10 | 03/31/09 | 03/31/10 | 03/31/09 |
| Nonperforming Loans | $34,745 | $40,166 | $34,745 | $40,166 |
| Nonperforming Assets | 53,723 | 53,130 | 53,723 | 53,130 |
| Net Loan Chg-offs (Recoveries) | 4,955 | 2,245 | 4,955 | 2,245 |
| Reserve for Loan Loss to Gross Loans | 3.38% | 1.97% | 3.38% | 1.97% |
| Reserve for Loan Loss to Non-performing Loans | 85.47% | 47.29% | 85.47% | 47.29% |
| Reserve for Loan Loss to Non-performing Assets | 55.28% | 35.75% | 55.28% | 35.75% |
| Net Loan Chg-offs (Recoveries) to Avg. Gross Loans | 0.55% | 0.23% | 0.55% | 0.23% |
| Nonperforming Loans to Gross Loans | 3.95% | 4.17% | 3.95% | 4.17% |
| Nonperforming Assets to Total Assets | 4.15% | 4.14% | 4.15% | 4.14% |
| Nonperforming Assets to Total Loans And Other Real Estate | 5.98% | 5.45% | 5.60% | 5.45% |
| |
| Quarterly Comparative Data (in thousands, except per share data) |
| |
| | 1Q2010 | 4Q2009 | 3Q2009 | 2Q2009 | 1Q2009 |
| | | | | | |
| Assets | $1,294,617 | $1,307,089 | $1,290,891 | $1,294,575 | $1,283,005 |
| Loans | 849,702 | 899,851 | 949,629 | 945,309 | 943,674 |
| Deposits | 1,056,010 | 1,057,585 | 1,015,414 | 1,016,539 | 1,011,695 |
| Common Shareholders' Equity | 67,617 | 61,918 | 76,746 | 76,409 | 82,277 |
| Total Equity | 95,011 | 89,275 | 104,067 | 103,694 | 109,527 |
| Net Income | 930 | (14,233) | 368 | (6,397) | 1,078 |
| Net Income Available to Common Shareholders | 580 | (14,583) | 18 | (6,747) | 763 |
| Net Income Per Share | 0.08 | (2.02) | 0.00 | (0.94) | 0.11 |
| Dividends Declared Per Share | 0.00 | 0.00 | 0.00 | 0.0488 | 0.0975 |
| | | | | | |
| Key Performance Ratios | 1Q2010 | 4Q2009 | 3Q2009 | 1Q2009 | 1Q2009 |
| Return on Assets (1) | 0.18% | (4.49)% | 0.01% | (2.10)% | 0.24% |
| Return on Equity (1) | 2.57% | (57.78)% | 0.07% | (32.81)% | 3.63% |
| Common Equity to Total Assets | 5.22% | 4.74% | 5.95% | 5.90% | 6.41% |
| Total Equity to Total Assets | 7.34% | 6.83% | 8.06% | 8.01% | 8.54% |
| Net Interest Margin | 3.17% | 3.36% | 3.38% | 3.28% | 3.06% |
| | | | | | |
| (1) Computed using net income available to shareholders |
| | | |
| Consolidated Balance Sheets Colony Bankcorp, Inc. | | |
| (in thousands) | | |
| | Mar. 31, 2010 | Mar. 31, 2009 |
| | (unaudited) | (unaudited) |
| ASSETS | | |
| Cash and Cash Equivalents | | |
| Cash and Due from Banks | $22,360 | $21,485 |
| Federal Funds Sold | 25,527 | -- |
| | 47,887 | 21,485 |
| Interest-Bearing Deposits | 30,847 | 373 |
| Investment Securities | | |
| Available for Sale, at Fair Value | 277,919 | 244,549 |
| Held for Maturity, at Cost (Fair Value of $57 and $64 as of Mar. 31, 2010 and Mar. 31, 2009, Respectively) | 55 | 62 |
| | 277,974 | 244,611 |
| Federal Home Loan Bank Stock, at Cost | 6,345 | 6,345 |
| Loans | 879,497 | 962,822 |
| Allowance for Loan Losses | (29,696) | (18,996) |
| Unearned Interest and Fees | (99) | (152) |
| | 849,702 | 943,674 |
| Premises and Equipment | 28,457 | 29,579 |
| Other Real Estate | 18,846 | 12,964 |
| Goodwill | -- | 2,412 |
| Other Intangible Assets | 322 | 358 |
| Other Assets | 34,237 | 21,204 |
| Total Assets | $1,294,617 | $1,283,005 |
| | | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | | |
| | | |
| Deposits | | |
| Noninterest-Bearing | $80,562 | $70,365 |
| Interest-Bearing | 975,448 | 941,330 |
| | 1,056,010 | 1,011,695 |
| | | |
| Borrowed Money | | |
| Federal Funds Purchased | -- | 1,178 |
| Securities Sold Under Agreements to Repurchase | 25,000 | 40,000 |
| Subordinated Debentures | 24,229 | 24,229 |
| Other Borrowed Money | 90,000 | 91,000 |
| | 139,229 | 156,407 |
| | | |
| Other Liabilities | 4,367 | 5,376 |
| | | |
| Stockholders' Equity | | |
| Preferred Stock, Par Value $1,000; Authorized 10,000,000 Shares, Issued 28,000 Shares | 27,394 | 27,250 |
| Common Stock, Par Value $1; Authorized 20,000,000 Shares, Issued 8,445,208 and 7,231,163 Shares | 8,445 | 7,231 |
| Paid in Capital | 29,117 | 25,407 |
| Retained Earnings | 30,097 | 51,326 |
| Restricted Stock- Unearned Compensation | (128) | (314) |
| Accumulated Other Comprehensive Loss, Net of Tax | 86 | (1,373) |
| | 95,011 | 109,527 |
| Total Liabilities and Stockholders' Equity | $1,294,617 | $1,283,005 |
| |
| Consolidated Statements of Income Colony Bankcorp, Inc. |
| (in thousands except per share data) |
| | Quarter | Year-to-Date |
| | Three Months Ended | Three Months Ended |
| | 03/31/10 | 03/31/09 | 03/31/10 | 03/31/09 |
| | (unaudited) | (unaudited) | (unaudited) | (unaudited) |
| Interest Income | | | | |
| Loans, Including Fees | $13,432 | $14,197 | $13,432 | $14,197 |
| Federal Funds Sold | 26 | 5 | 26 | 5 |
| Deposits with Other Banks | 3 | -- | 3 | -- |
| Investment Securities | | | | |
| U. S. Government Agencies | 1,676 | 2,047 | 1,676 | 2,047 |
| State, County and Municipal | 25 | 88 | 25 | 88 |
| Corporate Obligations/Asset-Backed Sec. | 56 | 123 | 56 | 123 |
| Dividends on Other Investments | 4 | -- | 4 | -- |
| | 15,222 | 16,460 | 15,222 | 16,460 |
| Interest Expense | | | | |
| Deposits | 4,440 | 6,173 | 4,440 | 6,173 |
| Federal Funds Purchased and Repurchase Agreements | 186 | 232 | 186 | 232 |
| Borrowed Money | 918 | 995 | 918 | 995 |
| | 5,544 | 7,400 | 5,544 | 7,400 |
| Net Interest Income | 9,678 | 9,060 | 9,678 | 9,060 |
| Provision for Loan Losses | 3,250 | 4,225 | 3,250 | 4,225 |
| Net Interest Income After Provision for Loan Losses | 6,428 | 4,835 | 6,428 | 4,835 |
| | | | | |
| Noninterest Income | | | | |
| Service Charges on Deposits | 907 | 988 | 907 | 988 |
| Other Service Charges, Commissions and Fees | 270 | 236 | 270 | 236 |
| Mortgage Fee Income | 61 | 98 | 61 | 98 |
| Securities Gains | 781 | 2,317 | 781 | 2,317 |
| Other | 893 | 319 | 893 | 319 |
| | 2,912 | 3,958 | 2,912 | 3,958 |
| Noninterest Expense | | | | |
| Salaries and Employee Benefits | 3,554 | 3,807 | 3,554 | 3,807 |
| Occupancy and Equipment | 1,108 | 1,009 | 1,108 | 1,009 |
| Other | 3,651 | 2,541 | 3,651 | 2,541 |
| | 8,313 | 7,357 | 8,313 | 7,357 |
| | | | | |
| Income Before Income Taxes | 1,027 | 1,436 | 1,027 | 1,436 |
| Income Taxes | 97 | 358 | 97 | 358 |
| Net Income | 930 | 1,078 | 930 | 1,078 |
| | | | | |
| Preferred Stock Dividends | 350 | 315 | 350 | 315 |
| | | | | |
| Net Income Available to Common Shareholders | $580 | $763 | $580 | $763 |
| | | | | |
| Net Income Per Share of Common Stock | | | | |
| Basic | $0.08 | $0.11 | $0.08 | $0.11 |
| Diluted | $0.08 | $0.11 | $0.08 | $0.11 |
| Weighted Average Basic Shares Outstanding | 7,256,062 | 7,202,865 | 7,256,062 | 7,202,865 |
| Weighted Average Diluted Shares Outstanding | 7,256,062 | 7,202,865 | 7,256,062 | 7,202,865 |
CONTACT: Colony Bankcorp, Inc.
Terry L. Hester, Chief Financial Officer
(229) 426-6002