EXHIBIT 99.1
Colony Bankcorp, Inc. Announces Second Quarter Results
FITZGERALD, Ga., July 23, 2015 (GLOBE NEWSWIRE) -- Colony Bankcorp, Inc. (Nasdaq:CBAN), today reported net income available to shareholders of $1,555,000, or $0.18 per diluted share for the second quarter of 2015 compared to $1,335,000, or $0.16 per diluted share for the comparable 2014 period, while net income available to shareholders for six month period ended June 30, 2015 was $2,808,000, or $0.33 per diluted share compared to $2,149,000, or $0.25 per share for the comparable 2014 period. This increase of 30.67 percent in net income for the comparable six month period was primarily driven by a reduction in provision for loan losses, an increase in noninterest income and a reduction in noninterest expense. "While we had solid improvement in earnings, we also are pleased to report asset quality improvement. Total non-performing assets were $26.16 million at June 30, 2015 which is a reduction of 2.27 percent from the prior quarter end and 17.18 percent from the year ago period. Substandard assets to tier one capital plus loan loss reserve now stands at 28.74 percent – down from the prior year end level of 32.39 percent," said Ed Loomis, President and Chief Executive Officer. "Noteworthy during the quarter was continued positive trends with loan activity as total loans increased to $759.69 million at June 30, 2015 compared to $753.24 million at March 31, 2015. The quarter culminated with the inclusion of Colony in the Russell Microcap Index. The Index is completely reconstituted annually to ensure new and growing equities are reflected and companies continue to reflect appropriate capitalization and value characteristics. This is indicative of the marked progress the company has made over the past several quarters."
Capital
Colony continues to maintain a strong regulatory capital position to be categorized as "well-capitalized" by regulatory benchmarks. At June 30, 2015, the Company's tier one leverage ratio, tier one and total risk-based capital ratios were 11.28 percent, 16.42 percent and 17.49 percent, respectively, compared to 11.18 percent, 16.78 percent and 17.95 percent, respectively, at December 31, 2014 and to 10.80 percent, 16.44 percent and 17.69 percent, respectively, at June 30, 2014. Effective January 1, 2015, new regulatory regulations (commonly referred to as Basel III capital regulation) required new risk-weighting of certain assets and an additional capital ratio to be calculated. The common equity tier one capital ratio at June 30, 2015 of 9.92 percent exceeded the minimum requirement of 4.50 percent. The Company's capital ratios were all in excess of regulatory minimums required to be classified as "well-capitalized".
Net Interest Margin
During the second quarter of 2015, the Company reported net interest income of $9.25 million and a net interest margin of 3.44 percent compared to $9.53 million and 3.61 percent, respectively, for second quarter 2014, while net interest income for first half 2015 was $18.45 million and a net interest margin of 3.44 percent compared to $18.72 million and 3.54 percent, respectively, for first half 2014. The low interest rate environment continues to be challenging for the banking industry. While the company continues to focus on maximizing its net interest margin through deposit and loan pricing and balance sheet restructuring, we await Federal Reserve action to modestly begin the process of increasing interest rates from their record lows.
Asset Quality
The Company continues to monitor our substandard and non-performing assets and focus on problem asset resolution. Substandard assets that include non-performing assets totaled $39.65 million at June 30, 2015 compared to $43.29 million and $47.12 million, respectively, at December 31, 2014 and June 30, 2014. Substandard assets adjusted for SBA guarantees to tier one capital plus loan loss reserve ratio was 28.74%, 32.39% and 32.54%, respectively, at June 30, 2015, December 31, 2014 and June 30, 2014. Non-performing assets decreased from the previous quarter end to $26.16 million or 3.39 percent of total loans and other real estate owned as of June 30, 2015. This compares to $28.74 million or 3.80 percent and $31.59 million or 4.22 percent, respectively, as of December 31, 2014 and June 30, 2014. With continued economic recovery and stabilization, we anticipate further reduction in our substandard assets.
Other real estate ("OREO") totaled $12.03 million at June 30, 2015 compared to $10.40 million and $12.21 million, respectively, at December 31, 2014 and June 30, 2014. Much of the increase during 2015 comes from non-performing loans or loans in bankruptcy that we were able to gain control of the collateral and are now able to resolve through liquidation of the real estate. 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 2015 net charge-offs were $25 thousand, or 0.00 percent of average loans as compared to net charge-offs of $1.72 million, or 0.23 percent of average loans in second quarter 2014, while first half 2015 net charge-offs were $813,000, or 0.11 percent of average loans as compared to net charge-offs of $2.14 million, or 0.29 percent of average loans for first half 2014. The loan loss reserve was $8.48 million on June 30, 2015, or 1.12 percent of total loans compared to $8.80 million, or 1.18 percent on December 31, 2014 and to $10.47 million, or 1.42 percent on June 30, 2014. Loan loss reserve methodology resulted in three months ended June 30, 2015 provision for loan losses of $129 thousand compared to $481 thousand for the comparable 2014 period, while first half 2015 provision for loan losses was $491 thousand compared to $808 thousand for the comparable 2014 period.
Noninterest Income
Total noninterest income increased in the comparable periods as noninterest income for six months ended June 30, 2015 was $4.57 million compared to $4.31 million in the comparable 2014 period, or an increase of 6.08 percent. The significant increase was debit card interchange fees and ATM fees increasing $135 thousand, or 12.11 percent. Also, mortgage fee income increased $66 thousand, or 36.46 percent and gain from the sale of other real estate and repossessions was $53 thousand compared to $4 thousand gain in the year ago period. Offsetting the increases was service charge fee income on deposit accounts decreasing $132 thousand, or 6.05 percent.
Noninterest Expense
Total noninterest expense decreased in the comparable periods as noninterest expense for six months ended June 30, 2015 was $16.61 million compared to $17.16 million for the comparable 2014 period, or a decrease of 3.21 percent. Though credit-related expenses remain high, the company realized significant improvement from a year ago as repossession and foreclosure expenses totaled $349 thousand in the six month period ended June 30, 2015 compared to $1.31 million in the comparable 2014 period, or a decrease of 73.30 percent. Salaries and employee benefit expenses remained relatively flat with an increase of 1.81 percent. Occupancy expenses decreased to $2.01 million in the six month period ended June 30, 2015 compared to $2.02 million in the comparable 2014 period, or a decrease of 0.50 percent. Other noninterest expense decreased to $5.72 million compared to $6.42 million, or a decrease of 10.89 percent. While much of this reduction relates to the credit-related expense noted above, the Company continues to reap benefits from recent initiatives that include implementation of VOIP telephone system to reduce telephone expense and promotion of e-statements versus mailing out statements to reduce postage expense. The efficiency ratio improved to 71.99 percent for six months ended June 30, 2015 compared to 74.32 percent for the comparable 2014 period, or a decrease of 3.14 percent. The company continues to explore opportunities to further improve its' operating efficiency.
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 | 06/30/15 | 06/30/14 | 06/30/15 | 06/30/14 |
| Net Interest Income | $9,247 | $9,528 | $18,449 | $18,722 |
| Provision for Loan Losses | 129 | 481 | 491 | 808 |
| Non-interest Income | 2,358 | 2,246 | 4,570 | 4,308 |
| Non-interest Expense | 8,320 | 8,291 | 16,606 | 17,157 |
| Income Taxes | 971 | 986 | 1,854 | 1,592 |
| Net Income | 2,185 | 2,016 | 4,068 | 3,473 |
| Preferred Stock Dividend | 630 | 681 | 1,260 | 1,324 |
| Net Income Available to Common Shareholders | 1,555 | 1,335 | 2,808 | 2,149 |
| | | | | |
| | QUARTER ENDED | YEAR-TO-DATE |
| PER COMMON SHARE SUMMARY | 06/30/15 | 06/30/14 | 06/30/15 | 06/30/14 |
| 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 | 8,441,628 | 8,439,258 | 8,440,443 | 8,439,258 |
| Earnings Per Basic Share (b) | $0.18 | $0.16 | $0.33 | $0.25 |
| Earnings Per Diluted Share (b) | $0.18 | $0.16 | $0.33 | $0.25 |
| Common Book Value Per Share | $8.85 | $7.96 | $8.85 | $7.96 |
| Tangible Common Book Value Per Share | $8.83 | $7.94 | $8.83 | $7.94 |
| | | | | |
| | QUARTER ENDED | YEAR-TO-DATE |
| OPERATING RATIOS (1) | 06/30/15 | 06/30/14 | 06/30/15 | 06/30/14 |
| Net Interest Margin (a) | 3.44% | 3.61% | 3.44% | 3.54% |
| Return on Average Assets (b) | 0.54% | 0.47% | 0.49% | 0.38% |
| Return on Average Total Equity (b) | 6.05% | 5.69% | 5.52% | 4.63% |
| Efficiency (c) | 71.54% | 70.26% | 71.99% | 74.32% |
| | | | | |
| (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 | 06/30/15 | 06/30/14 | | |
| Total Assets | $1,139,050 | $1,118,382 | | |
| Loans, Net of Reserves | 751,210 | 724,939 | | |
| Allowance for Loan Losses | 8,480 | 10,470 | | |
| Intangible Assets | 134 | 170 | | |
| Deposits | 968,634 | 948,269 | | |
| Common Shareholders' Equity | 74,658 | 67,210 | | |
| Common Equity to Total Assets | 6.55% | 6.01% | | |
| Total Equity | 102,658 | 95,210 | | |
| Total Equity to Total Assets | 9.01% | 8.51% | | |
| | | | | |
| | QUARTER ENDED | YEAR-TO-DATE |
| AVERAGE BALANCES | 06/30/15 | 06/30/14 | 06/30/15 | 06/30/14 |
| Total Assets | $1,150,811 | $1,127,707 | $1,150,725 | $1,130,582 |
| Loans, Net of Reserves | 757,167 | 728,928 | 750,350 | 728,785 |
| Deposits | 979,628 | 959,247 | 979,477 | 969,688 |
| Common Shareholders' Equity | 74,760 | 65,808 | 73,700 | 64,740 |
| Total Equity | 102,760 | 93,808 | 101,700 | 92,740 |
| | | | | |
| | QUARTER ENDED | YEAR-TO-DATE |
| ASSET QUALITY | 06/30/15 | 06/30/14 | 6/30/2015 | 06/30/14 |
| Nonperforming Loans | $14,128 | $19,378 | $14,128 | $19,378 |
| Nonperforming Assets | 26,159 | 31,585 | 26,159 | 31,585 |
| Substandard Assets | 39,650 | 47,120 | 39,650 | 47,120 |
| Net Loan Chg-offs (Recoveries) | 25 | 1,721 | 813 | 2,144 |
| Reserve for Loan Loss to Total Loans | 1.12% | 1.42% | 1.12% | 1.42% |
| Reserve for Loan Loss to Non- performing Loans | 60.02% | 54.03% | 60.02% | 54.03% |
| Reserve for Loan Loss to Non-performing Assets | 32.42% | 33.15% | 32.42% | 33.15% |
| Net Loan Chg-offs (Recoveries) to Avg. Total Loans | 0.00% | 0.23% | 0.11% | 0.29% |
| Nonperforming Loans to Total Loans | 1.86% | 2.63% | 1.88% | 2.63% |
| Nonperforming Assets to Total Assets | 2.30% | 2.82% | 2.30% | 2.82% |
| Nonperforming Assets to Total Loans And Other Real Estate | 3.39% | 4.22% | 3.43% | 4.22% |
| Substandard Assets to Tier One Capital and Allowance for Loan Losses | 28.74% | 32.54% | 28.74% | 32.54% |
| | | | | | |
| Quarterly Comparative Data (in thousands, except per share data) |
| | 2Q2015 | 1Q2015 | 4Q2014 | 3Q2014 | 2Q2014 |
| | | | | | |
| Assets | $1,139,050 | $1,156,711 | $1,146,898 | $1,114,414 | $1,118,382 |
| Loans | 751,210 | 744,866 | 736,930 | 733,139 | 724,939 |
| Deposits | 968,634 | 985,856 | 979,304 | 941,200 | 948,269 |
| Common Shareholders' Equity | 74,658 | 74,363 | 71,027 | 68,272 | 67,210 |
| Total Equity | 102,658 | 102,363 | 99,027 | 96,272 | 95,210 |
| Net Income | 2,185 | 1,883 | 1,978 | 2,081 | 2,016 |
| Net Income Available to Common Shareholders | 1,555 | 1,253 | 1,310 | 1,384 | 1,335 |
| Net Income Per Share | 0.18 | 0.15 | 0.16 | 0.16 | 0.16 |
| | | | | | |
| Key Performance Ratios | 2Q2015 | 1Q2015 | 4Q2014 | 3Q2014 | 2Q2014 |
| Return on Average Assets (1) | 0.54% | 0.44% | 0.46% | 0.49% | 0.47% |
| Return on Average Total Equity (1) | 6.05% | 4.98% | 5.37% | 5.78% | 5.69% |
| Common Equity to Total Assets | 6.55% | 6.43% | 6.18% | 6.13% | 6.01% |
| Total Equity to Total Assets | 9.01% | 8.85% | 8.62% | 8.64% | 8.51% |
| Net Interest Margin | 3.44% | 3.43% | 3.59% | 3.73% | 3.61% |
| (1) Computed using net income available to shareholders |
| | | | |
| | | | |
| Consolidated Balance Sheets Colony Bankcorp, Inc. | | | |
| (in thousands) | | | |
| | June 30, 2015 | Dec. 31, 2014 | June 30, 2014 |
| | (unaudited) | (audited) | (unaudited) |
| ASSETS | | | |
| Cash and Cash Equivalents | | | |
| Cash and Due from Banks | $19,550 | $24,473 | $21,867 |
| Federal Funds Sold | -- | 20,132 | 11,081 |
| | 19,550 | 44,605 | 32,948 |
| Interest-Bearing Deposits | 24,323 | 21,206 | 11,372 |
| Investment Securities | | | |
| Available for Sale, at Fair Value | 273,878 | 274,594 | 276,062 |
| Held for Maturity, at Cost (Fair Value of $27, $30 and $32 as of June 30, 2015, Dec. 31, 2014, and June 30, 2014, Respectively) | 27 | 30 | 32 |
| | 273,905 | 274,624 | 276,094 |
| Federal Home Loan Bank Stock, at Cost | 2,731 | 2,831 | 2,831 |
| Loans | 760,078 | 746,094 | 735,763 |
| Allowance for Loan Losses | (8,480) | (8,802) | (10,470) |
| Unearned Interest and Fees | (388) | (362) | (354) |
| | 751,210 | 736,930 | 724,939 |
| Premises and Equipment | 24,465 | 24,960 | 24,951 |
| Other Real Estate | 12,031 | 10,402 | 12,208 |
| Other Intangible Assets | 134 | 152 | 170 |
| Other Assets | 30,701 | 31,188 | 32,869 |
| Total Assets | $1,139,050 | $1,146,898 | $1,118,382 |
| | | | |
| LIABILITIES AND STOCKHOLDERS' EQUITY | | | |
| | | | |
| Deposits | | | |
| Noninterest-Bearing | $125,541 | $128,340 | $114,757 |
| Interest-Bearing | 843,093 | 850,963 | 833,512 |
| | 968,634 | 979,303 | 948,269 |
| 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 | 3,528 | 4,339 | 10,674 |
| | | | |
| Stockholders' Equity | | | |
| Preferred Stock, Stated Value $1,000 a Share; Authorized 10,000,000 Shares, Issued 28,000 Shares | 28,000 | 28,000 | 28,000 |
| Common Stock, Par Value $1 a share; Authorized 20,000,000 Shares, Issued 8,439,258 Shares as of June 30, 2015, Dec. 31, 2014 and June 30, 2014, Respectively | 8,439 | 8,439 | 8,439 |
| Paid in Capital | 29,145 | 29,145 | 29,145 |
| Retained Earnings | 41,097 | 38,288 | 35,594 |
| Accumulated Other Comprehensive Loss, Net of Tax | (4,022) | (4,845) | (5,968) |
| | 102,658 | 99,027 | 95,210 |
| Total Liabilities and Stockholders' Equity | $1,139,050 | $1,146,898 | $1,118,382 |
| | | | | |
| | | | | |
| Consolidated Statements of Income Colony Bankcorp, Inc. | | | |
| (in thousands except per share data) |
| | | | | |
| | Quarter | Year-to-Date |
| | Three Months Ended | Six Months Ended |
| | 06/30/15 | 06/30/14 | 06/30/15 | 06/30/14 |
| | (unaudited) | (unaudited) | (unaudited) | (unaudited) |
| Interest Income | | | | |
| Loans, Including Fees | $9,873 | $9,956 | $19,582 | $19,645 |
| Federal Funds Sold | -- | 8 | 15 | 17 |
| Deposits with Other Banks | 24 | 10 | 41 | 23 |
| Investment Securities | | | | |
| U. S. Government Agencies | 979 | 1,225 | 2,048 | 2,409 |
| State, County and Municipal | 25 | 23 | 50 | 51 |
| Dividends on Other Investments | 30 | 29 | 60 | 59 |
| | 10,931 | 11,251 | 21,796 | 22,204 |
| Interest Expense | | | | |
| Deposits | 1,220 | 1,288 | 2,438 | 2,609 |
| Borrowed Money | 464 | 435 | 909 | 873 |
| | 1,684 | 1,723 | 3,347 | 3,482 |
| Net Interest Income | 9,247 | 9,528 | 18,449 | 18,722 |
| Provision for Loan Losses | 129 | 481 | 491 | 808 |
| Net Interest Income After Provision for Loan Losses | 9,118 | 9,047 | 17,958 | 17,914 |
| | | | | |
| Noninterest Income | | | | |
| Service Charges on Deposits | 1,040 | 1,087 | 2,051 | 2,183 |
| Other Service Charges, Commissions and Fees | 664 | 623 | 1,302 | 1,175 |
| Mortgage Fee Income | 134 | 114 | 247 | 181 |
| Securities Gains (Losses) | -- | 1 | 3 | 1 |
| Other | 520 | 421 | 967 | 768 |
| | 2,358 | 2,246 | 4,570 | 4,308 |
| Noninterest Expense | | | | |
| Salaries and Employee Benefits | 4,407 | 4,305 | 8,875 | 8,717 |
| Occupancy and Equipment | 1,017 | 1,000 | 2,010 | 2,020 |
| Other | 2,896 | 2,986 | 5,721 | 6,420 |
| | 8,320 | 8,291 | 16,606 | 17,157 |
| | | | | |
| Income Before Income Taxes | 3,156 | 3,002 | 5,922 | 5,065 |
| Income Taxes | 971 | 986 | 1,854 | 1,592 |
| Net Income | 2,185 | 2,016 | 4,068 | 3,473 |
| | | | | |
| Preferred Stock Dividends | 630 | 681 | 1,260 | 1,324 |
| | | | | |
| Net Income Available to Common Shareholders | $1,555 | $1,335 | $2,808 | $2,149 |
| Net Income Per Share of Common Stock | | | | |
| Basic | $0.18 | $0.16 | $0.33 | $0.25 |
| Diluted | $0.18 | $0.16 | $0.33 | $0.25 |
| Weighted Average Basic Shares Outstanding | 8,439,258 | 8,439,258 | 8,439,258 | 8,439,258 |
| Weighted Average Diluted Shares Outstanding | 8,441,628 | 8,439,258 | 8,440,443 | 8,439,258 |
CONTACT: Terry L. Hester
Chief Financial Officer
(229) 426-6000 (Ext 6002)