Colony Bankcorp (CBAN) 8-K Colony Bankcorp, Inc. Announces First Quarter Results

EXHIBIT 99.1

Colony Bankcorp, Inc. Announces First Quarter Results

FITZGERALD, Ga., April 21, 2016 (GLOBE NEWSWIRE) -- Colony Bankcorp, Inc. (Nasdaq:CBAN), today reported net income available to shareholders of $1,656,000, or $0.20 per diluted share for the first quarter of 2016 compared to $1,253,000, or $0.15 per diluted share for the comparable 2015 period.  This increase of 32.16 percent in net income for the comparable three month period was primarily driven by an increase in net interest income and a reduction in preferred stock dividends.  “In addition to marked improvement in earnings, we also had asset quality improvement as non-performing assets decreased to $21.73 million at March 31, 2016 which is a reduction of 18.83 percent from the comparable year ago period and 6.57 percent from the prior quarter end,” said Ed Loomis, President and Chief Executive Officer.  “The past year our focus was to improve profitability and credit quality while deleveraging the company.  We are committed to the same strategy in 2016; however given the improved financial condition of the company, we are also considering product and market expansion.  To that end, during the quarter we completed construction of a new banking facility in Tifton while beginning construction of new facilities in Statesboro and Savannah.  The new Tifton location resulted in closure of two leased offices in that market while two branch offices in Pitts and Chester were closed to improve operating efficiencies. We will again look for earnings improvement during 2016 with the redemption of additional shares of preferred stock.”   

Capital

Colony continues to maintain a strong regulatory capital position to be categorized as “well-capitalized” by regulatory benchmarks.  At March 31, 2016, the Company’s tier one leverage ratio, tier one ratio, total risk-based capital ratio and common equity tier one capital ratio were 10.70 percent, 15.92 percent, 17.13 percent and 10.63 percent, respectively, compared to 10.69 percent, 15.51 percent, 16.60 percent  and 10.29 percent, respectively, at December 31, 2015.  The Company’s capital ratios were all in excess of regulatory minimums required to be classified as “well-capitalized.”

Net Interest Margin 

During the first quarter of 2016, the Company reported net interest income of $9.46 million and a net interest margin of 3.47 percent compared to $9.20 million and 3.43 percent, respectively, for first quarter 2015.  Net interest margin improvement resulted in the Company posting an increase in net interest income of approximately $ 254 thousand in the comparable periods.   The low interest rate environment continues to be challenging for the banking industry; however recent Federal Reserve action suggests a move toward a “tightening policy” that would increase interest rates and offer some relief to the banking industry.  The global and U.S. economy will dictate the ability and timing of the Federal Reserve to accomplish their goal of an interest rate “tightening policy.”  

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 $46.44 million at March 31, 2016 compared to $41.24 million and $40.52 million, respectively, at December 31, 2015 and March 31, 2015.  Substandard assets adjusted for SBA guarantees to tier one capital plus loan loss reserve ratio was 34.60%, 31.36% and 29.93%, respectively, at March 31, 2016, December 31, 2015 and March 31, 2015.  Non-performing assets decreased from the previous quarter end to $21.73 million or 2.85 percent of total loans and other real estate owned as of March 31, 2016.  This compares to $23.26 million or 3.03 percent and $26.77 million or 3.50 percent, respectively, as of December 31, 2015 and March 31, 2015.      

Other real estate (“OREO”) totaled $9.62 million at March 31, 2016 compared to $8.84 million and $11.98 million, respectively, at December 31, 2015 and March 31, 2015.   Though these levels remain at an elevated level, we continue to work diligently to dispose these properties at fair value. 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 first quarter of 2016 net charge-offs (recoveries) were ($591) thousand, or (0.08) percent of average loans as compared to net charge-offs of $788 thousand, or 0.11 percent of average loans in first quarter 2015.  The loan loss reserve was $9.55 million or 1.27 percent of total loans on March 31, 2016 compared to $8.60 million or 1.13 percent and $8.38 million or 1.11 percent, respectively, at December 31, 2015 and March 31, 2015.  Loan loss reserve methodology resulted in three months ended March 31, 2016 provision for loan losses of $354 thousand compared to $362 thousand for the comparable 2015 period.

Noninterest Income

Total noninterest income declined modestly in the comparable periods as noninterest income for three months ended March 31, 2016 was $2.17 million compared to $2.21 million in the comparable 2015 period, or a decrease of 1.81 percent.  Service charge income on deposits increased $15 thousand or 1.52 percent while all other noninterest income categories decreased $55 thousand or 4.49 percent.       

Noninterest Expense

Total noninterest expense decreased in the comparable periods as noninterest expense for three months ended March 31, 2016 was $8.24 million compared to $8.29 million for the comparable 2015 period, or a decrease of 0.62 percent.  Salaries and employee benefit expenses remained flat for the comparable periods.  Occupancy expense decreased 2.92 percent.  The efficiency ratio improved to 70.65 percent for three months ended March 31, 2016 compared to 72.45 percent for the comparable 2015 period, or a decrease of 2.48 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-six offices located in the central, southern and coastal Georgia cities of Albany, Ashburn, Broxton, Centerville, Columbus, Cordele, Douglas, Eastman, Fitzgerald, Leesburg, Moultrie, 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.

Consolidated Balance Sheets Colony Bankcorp, Inc.
(in thousands)
		Mar. 31, 2016		Dec. 31, 2015			Mar. 31, 2015
		(unaudited)			(audited)			(unaudited)
ASSETS
Cash and Cash Equivalents
Cash and Due from Banks	$	16,070		$	22,257		$	20,407
Interest-Bearing Deposits		32,842			38,615			42,312
Investment Securities
Available for Sale, at Fair Value		308,840			296,149			279,139
Held for Maturity, at Cost( Fair Value
of $31 as of Mar. 31, 2015)		-			-			31
		308,840			296,149			279,170
Federal Home Loan Bank Stock, at Cost		2,755			2,731			2,731
Loans		754,261			758,636			753,634
Allowance for Loan Losses		(9,549	)		(8,604	)		(8,377	)
Unearned Interest and Fees		(356	)		(357	)		(391	)
		744,356			749,675			744,866
Premises and Equipment		27,019			26,454			24,745
Other Real Estate		9,618			8,839			11,979
Other Intangible Assets		107			116			143
Other Assets		26,782			29,313			30,358
Total Assets	$	1,168,389		$	1,174,149		$	1,156,711
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
Noninterest-Bearing	$	135,351		$	133,886		$	128,584
Interest-Bearing		864,692			877,668			857,272
		1,000,043			1,011,554			985,856
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		3,574			2,909			4,263
Stockholders' Equity
Preferred Stock, Stated Value $1,000 a Share;
Authorized 10,000,000 Shares, Issued 18,021 Shares
as of Mar. 31, 2016 and Dec. 31, 2015 and
28,000 as of Mar. 31, 2015, Respectively		18,021			18,021			28,000
Common Stock, Par Value $1 a share; Authorized
20,000,000 Shares, Issued 8,439,258 Shares as of
Mar. 31, 2016, Dec. 31, 2015 and Mar. 31, 2015,
Respectively		8,439			8,439			8,439
Paid in Capital		29,145			29,145			29,145
Retained Earnings		45,941			44,286			39,542
Accumulated Other Comprehensive Loss, Net of Tax		(1,003	)		(4,434	)		(2,763	)
		100,543			95,457			102,363
Total Liabilities and Stockholders' Equity	$	1,168,389		$	1,174,149		$	1,156,711
Consolidated Statements of Income Colony Bankcorp, Inc.
(in thousands except per share data)
	Quarter						Year-to-Date
	Three Months Ended						Three Months Ended
		3/31/2016			3/31/2015			3/31/2016			3/31/2015
		(unaudited)			(unaudited)			(unaudited)			(unaudited)
Interest Income
Loans, Including Fees	$	9,632		$	9,709		$	9,632		$	9,709
Fedral Funds Sold		-			15			-			15
Deposits with Other Banks		38			17			38			17
Investment Securities
U. S. Government Agencies		1,353			1,070			1,353			1,070
State, County and Municipal		34			25			34			25
Dividends on Other Investments		32			30			32			30
		11,089			10,866			11,089			10,866
Interest Expense
Deposits		1,204			1,219			1,204			1,219
Borrowed Money		429			445			429			445
		1,633			1,664			1,633			1,664
Net Interest Income		9,456			9,202			9,456			9,202
Provision for Loan Losses		354			362			354			362
Net Interest Income After Provision for Loan Losses		9,102			8,840			9,102			8,840
Noninterest Income
Service Charges on Deposits		1,002			987			1,002			987
Other Service Charges, Commissions and Fees		629			662			629			662
Mortgage Fee Income		100			113			100			113
Securities Gains (Losses)		2			3			2			3
Other		439			447			439			447
		2,172			2,212			2,172			2,212
Noninterest Expense
Salaries and Employee Benefits		4,474			4,468			4,474			4,468
Occupancy and Equipment		964			993			964			993
Other		2,797			2,825			2,797			2,825
		8,235			8,286			8,235			8,286
Income Before Income Taxes		3,039			2,766			3,039			2,766
Income Taxes		978			883			978			883
Net Income		2,061			1,883			2,061			1,883
Preferred Stock Dividends		405			630			405			630
Net Income Available to Common Shareholders	$	1,656		$	1,253		$	1,656		$	1,253
Net Income Per Share of Common Stock
Basic	$	0.20		$	0.15		$	0.20		$	0.15
Diluted	$	0.20		$	0.15		$	0.20		$	0.15
Weighted Average Basic Shares Outstanding		8,439,258			8,439,258			8,439,258			8,439,258
Weighted Average Diluted Shares Outstanding		8,483,727			8,439,258			8,483,727			8,439,258
COLONY BANKCORP, INC
FINANCIAL HIGHLIGHTS (UNAUDITED)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
	QUARTER ENDED						YEAR-TO-DATE
EARNINGS SUMMARY		3/31/2016			3/31/2015			3/31/2016			3/31/2015
Net interest income	$	9,456		$	9,202		$	9,456		$	9,202
Provision for Loan Losses		354			362			354			362
Non-interest Income		2,172			2,212			2,172			2,212
Non-interest Expense		8,235			8,286			8,235			8,286
Income Taxes		978			883			978			883
Net Income		2,061			1,883			2,061			1,883
Preferred Stock Dividend		405			630			405			630
Net Income Available to
Common Shareholders		1,656			1,253			1,656			1,253
	QUARTER ENDED						YEAR-TO-DATE
PER COMMON SHARE SUMMARY		3/31/2016			3/31/2015			3/31/2016			3/31/2015
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 Dilited Shares		8,483,727			8,439,258			8,483,727			8,439,258
Earnings Per Basic Share (b)	$	0.20		$	0.15		$	0.20		$	0.15
Earnings Per Dilited Share (b)	$	0.20		$	0.15		$	0.20		$	0.15
Common Book Value Per Share	$	9.78		$	8.81		$	9.78		$	8.81
Tangible Common Book Value Per Share	$	9.77		$	8.79		$	9.77		$	8.79
	QUARTER ENDED						YEAR-TO-DATE
OPERATING RATIOS (1)		3/31/2016			3/31/2015			3/31/2016			3/31/2015
Net Interest Margin (a)		3.47	%		3.43	%		3.47	%		3.43	%
Return on Average Assets (b)		0.57	%		0.44	%		0.57	%		0.44	%
Return on Average Total Equity (b)		6.75	%		4.98	%		6.75	%		4.98	%
Efficiency (c)		70.65	%		72.45	%		70.65	%		72.45	%
(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		3/31/2016		3/31/2015
Total Assets	$	1,168,389		$	1,156,711
Loans, Net of Reserves		744,356			744,866
Allowance for Loan Losses		9,549			8,377
Intangible Assets		107			143
Deposits		1,000,043			985,856
Common Shareholders' Equity		82,522			74,363
Common Equity to Total Assets		7.06	%		6.43	%
Total Equity		100,543			102,363
Total Equity to Total Assets		8.61	%		8.85	%
	QUARTER ENDED						YEAR-TO-DATE
AVERAGE BALANCES		3/31/2016		3/31/2015			3/31/2016			3/31/2015
Total Assets	$	1,165,286		$	1,150,662		$	1,165,286		$	1,150,662
Loans, Net of Reserves		743,237			743,457			743,237			743,457
Deposits		999,335			979,141			999,335			979,141
Common Shareholders' Equity		80,175			72,627			80,175			72,627
Total Equity		98,196			100,627			98,196			100,627
	QUARTER ENDED						YEAR-TO-DATE
ASSET QUALITY		3/31/2016		3/31/2015			3/31/2016			3/31/2015
Nonperforming Loans	$	12,109		$	14,787		$	12,109		$	14,787
Nonperforming Assets		21,728			26,766			21,728			26,766
Substandard Assets		46,444			40,524			46,444			40,524
Net Loan Chg-offs (Recoveries)		(591	)		788			(591	)		788
Reserve for Loan Loss to Total Loans		1.27	%		1.11	%		1.27	%		1.11	%
Reserve for Loan Loss to Non- performing Loans		78.86	%		56.65	%		78.86	%		56.65	%
Reserve for Loan Loss to Non-performing Assets		43.95	%		31.30	%		43.95	%		31.30	%
Net Loan Chg-offs (Recoveries)
to Avg. Total Loans		(0.08	)%		0.11	%		(0.08	)%		0.11	%
Nonperforming Loans to Total Loans		1.61	%		1.96	%		1.61	%		1.96	%
Nonperforming Assets to Total Assets		1.86	%		2.31	%		1.86	%		2.31	%
Nonperforming Assets to Total Loans
And Other Real Estate		2.85	%		3.50	%		2.85	%		3.50	%
Substandard Assets to Tier One Capital
and Allowance for Loan Losses		34.60	%		29.93	%		34.60	%		29.93	%

Quarterly Comparative Data (in thousands, except per share data)
		1Q2016			4Q2015			3Q2015			2Q2015			1Q2015
Assets	$	1,168,389		$	1,174,149		$	1,127,320		$	1,139,050		$	1,156,711
Loans		744,356			749,675			755,447			751,210			744,866
Deposits		1,000,043			1,011,554			958,034			968,634			985,856
Common Shareholders’ Equity		82,522			77,436			77,907			74,658			74,363
Total Equity		100,543			95,457			101,074			102,658			102,363
Net Income		2,061			2,105			2,200			2,185			1,883
Net Income Available to
Common Shareholders		1,656			1,584			1,606			1,555			1,253
Net Income Per Share		0.20			0.19			0.19			0.18			0.15
Return on Average Assets (1)		0.57	%		0.55	%		0.57	%		0.54	%		0.44	%
Return on Average Total Equity (1)		6.75	%		6.26	%		6.28	%		6.05	%		4.98	%
Common Equity to Total Assets		7.06	%		6.60	%		6.91	%		6.55	%		6.43	%
Total Equity to Total Assets		8.61	%		8.13	%		8.97	%		9.01	%		8.85	%
Net Interest Margin		3.47	%		3.63	%		3.58	%		3.44	%		3.43	%
(1) Computed using net income available to shareholders

Contact:
Terry L. Hester
Chief Financial Officer                                                   
(229) 426-6000 (Ext 6002)