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

EXHIBIT 99.1

Colony Bankcorp, Inc. Announces Fourth Quarter Results

FITZGERALD, Ga., Jan. 19, 2017 (GLOBE NEWSWIRE) -- Colony Bankcorp, Inc. (Nasdaq:CBAN), today reported net income available to shareholders of $1,883,000, or $0.22 per diluted share for the fourth quarter of 2016 compared to $1,584,000, or $0.19 per diluted share for the comparable 2015 period, while net income available to shareholders for the twelve month period ended December 31, 2016 was $7,180,000, or $0.84 per diluted share compared to $5,998,000, or $0.71 per share for the comparable 2015 period.  This increase of 19.71 percent in net income for the comparable twelve month periods was primarily driven by an increase in net interest income and a reduction in preferred stock dividends.  “In addition to earnings improvement, we also redeemed $5,000,000 of preferred stock during the quarter that on an annual basis reduces our annual dividend payment by $450,000.  This reduces our current outstanding preferred stock to $9,360,000.  Also of significance during 2016 was the reduction in non-performing assets of $4.47 million.  Our current non-performing assets total $18.79 million at December 31, 2016, down 19.20 percent from a year ago,” said Ed Loomis, President and Chief Executive Officer.  “We are pleased to report our 2016 results that reflect continued earnings and asset quality improvement.  As we look to 2017, we believe we are positioned for continued  improvement, which in turn will enhance shareholder value.”

Capital

Colony continues to maintain a strong regulatory capital position to be categorized as “well-capitalized” by regulatory benchmarks.  At December 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 10.29 percent, 15.50 percent, 16.64 percent and 11.32 percent, respectively, compared to 10.69 percent, 15.51 percent, 16.6 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 fourth quarter of 2016, the Company reported net interest income of $9.57 million and a net interest margin of 3.48 percent compared to $9.76 million and 3.63 percent, respectively, for fourth quarter 2015, while net interest income for twelve months ended December 31, 2016 was $38.11 million and a net interest margin of 3.51 percent compared to $37.71 million and 3.52 percent, respectively, for the comparable 2015 period.  While we have been in a historical low interest rate environment for some time, recent Federal Reserve discussion suggests a  move toward a “tightening” interest rate policy that would enhance our net interest margin for 2017.

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 $33.23 million at December 31, 2016 compared to $41.49 million and $41.24 million, respectively, at September 30, 2016 and December 31, 2015.  Substandard assets adjusted for SBA guarantees to tier one capital plus loan loss reserve ratio was 25.67 percent, 31.34 percent and 31.36 percent, respectively, at December 31, 2016, September 30, 2016 and December 31, 2015.  Non-performing assets decreased from the previous quarter end to $18.79 million or 2.47 percent of total loans and other real estate owned as of December 31, 2016.  This compares to $23.80 million or 3.03 percent and $23.26 million or 3.03 percent, respectively, as of September 30, 2016 and December 31, 2015.

Other real estate (“OREO”) totaled $6.44 million at December 31, 2016 compared to $9.81 million and $8.84 million, respectively, at September 30, 2016 and December 31, 2015.  Though these levels remain at an elevated level, we continue to work diligently to dispose these properties at fair value.  We had significant reduction during fourth quarter to get to our lowest level of OREO in the past several years.

In the fourth quarter of 2016 net charge-offs were $280 thousand, or 0.04 percent of average loans as compared to net charge-offs of (77) thousand, or (0.01) percent of average loans in fourth quarter 2015, while 2016 net charge-offs  were $743 thousand, or 0.10 percent of average loans compared to $1.06 million, or 0.14 percent of average loans for the comparable 2015 period.  The loan loss reserve was $8.92 million or 1.18 percent of total loans on December 31, 2016 compared to $9.20 million or 1.19 percent and $8.60 million or 1.13 percent, respectively, at September 30, 2016 and December 31, 2015.  Loan loss reserve methodology resulted in three months ended December 31, 2016 provision for loan losses of $0 compared to $125 thousand for the comparable 2015 period, while the twelve months ended December 31, 2016 provision for loan losses was $1.06 million compared to $866 thousand for the comparable 2015 period.

Noninterest Income

Total noninterest income increased in the comparable periods as noninterest income for twelve months ended December 31, 2016 was $9.55 million compared to $9.05 million in the comparable 2015 period, or an increase of 5.62 percent.  Gain on sale of securities totaled $385 thousand compared to ($11) thousand in the comparable 2015 period to primarily account for the increase.  Our initiative to increase secondary market mortgage fee income has resulted in an increase of $155 thousand, or 29.41 percent over the comparable 2015 period.

Noninterest Expense

Total noninterest expense increased in the comparable periods as noninterest expense for twelve months ended December 31, 2016 was $34.07 million compared to $33.73 million for the comparable 2015 period, or an increase of 1.03 percent.  Salaries and employee benefit expenses increased 5.08 percent, occupancy expense decreased 0.48 percent and other noninterest expense decreased 4.33 percent for the comparable periods.  The efficiency ratio improved to 71.81 percent for twelve months ended December 31, 2016 compared to 71.92 percent for the comparable 2015 period, or a decrease of 0.15 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-seven 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, Statesboro, 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)
	December 31, 2016			December 31, 2015			December 31, 2014
	(unaudited)			(audited)			(audited)
ASSETS
Cash and Cash Equivalents
Cash and Due from Banks	$	28,822		$	22,257		$	24,473
Federal Funds Sold		-			-			20,132
		28,822			22,257			44,605
Interest-Bearing Deposits		46,345			38,615			21,206
Investment Securities
Available for Sale, at Fair Value		323,658			296,149			274,594
Held for Maturity, at Cost (Fair Value
of $28 as of December 31, 2014)		-			-			30
		323,658			296,149			274,624
Federal Home Loan Bank Stock, at Cost		3,010			2,731			2,831
Loans		754,283			758,636			746,094
Allowance for Loan Losses		(8,923	)		(8,604	)		(8,802	)
Unearned Interest and Fees		(361	)		(357	)		(362	)
		744,999			749,675			736,930
Premises and Equipment		27,969			26,454			24,960
Other Real Estate		6,439			8,839			10,402
Other Intangible Assets		81			116			152
Other Assets		29,119			29,313			31,188
Total Assets	$	1,210,442		$	1,174,149		$	1,146,898
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
Noninterest-Bearing	$	159,059		$	133,886		$	128,340
Interest-Bearing		885,298			877,668			850,963
		1,044,357			1,011,554			979,303
Borrowed Money
Subordinated Debentures		24,229			24,229			24,229
Other Borrowed Money		46,000			40,000			40,000
		70,229			64,229			64,229
Other Liabilities		2,468			2,909			4,339
Stockholders' Equity
Preferred Stock, Stated Value $1,000 a Share;
Authorized 10,000,000 Shares, Issued 9,360 Shares
as of Dec. 31, 2016, 18,021 as of Dec. 31, 2015 and
28,000 as of Dec. 31, 2014, Respectively		9,360			18,021			28,000
Common Stock, Par Value $1 a share; Authorized
20,000,000 Shares, Issued 8,439,258 Shares as of
Dec. 31, 2016, Dec. 31, 2015 and Dec. 31, 2014,
Respectively		8,439			8,439			8,439
Paid in Capital		29,145			29,145			29,145
Retained Earnings		51,466			44,286			38,288
Accumulated Other Comprehensive Loss, Net of Tax		(5,022	)		(4,434	)		(4,845	)
		93,388			95,457			99,027
Total Liabilities and Stockholders' Equity	$	1,210,442		$	1,174,149		$	1,146,898

Consolidated Statements of Income Colony Bankcorp, Inc.
(in thousands except per share data)
	Quarter					Year-to-Date
	Three Months Ended					Twelve Months Ended
	12/31/2016		12/31/2015			12/31/2016		12/31/2015
	(unaudited)		(audited)			(unaudited)		(audited)
Interest Income
Loans, Including Fees	$	9,808	$	10,153		$	38,943	$	39,716
Federal Funds Sold		-		-			-		15
Deposits with Other Banks		45		22			124		80
Investment Securities
U. S. Government Agencies		1,286		1,127			5,264		4,235
State, County and Municipal		30		30			127		108
Dividends on Other Investments		34		31			131		122
		11,203		11,363			44,589		44,276
Interest Expense
Deposits		1,201		1,209			4,781		4,857
Federal Funds Purchased		1		-			1		-
Borrowed Money		432		393			1,701		1,712
		1,634		1,602			6,483		6,569
Net Interest Income		9,569		9,761			38,106		37,707
Provision for Loan Losses		-		125			1,062		866
Net Interest Income After Provision for Loan Losses		9,569		9,636			37,044		36,841
Noninterest Income
Service Charges on Deposits		1,122		1,084			4,307		4,268
Other Service Charges, Commissions and Fees		698		664			2,802		2,627
Mortgage Fee Income		175		142			682		527
Securities Gains (Losses)		-		(23	)		385		(11	)
Other		397		375			1,377		1,634
		2,392		2,242			9,553		9,045
Noninterest Expense
Salaries and Employee Benefits		4,658		4,320			18,483		17,590
Occupancy and Equipment		1,003		953			3,970		3,989
Other		3,169		3,511			11,620		12,146
		8,830		8,784			34,073		33,725
Income Before Income Taxes		3,131		3,094			12,524		12,161
Income Taxes		944		989			3,851		3,788
Net Income		2,187		2,105			8,673		8,373
Preferred Stock Dividends		304		521			1,493		2,375
Net Income Available to Common Shareholders	$	1,883	$	1,584		$	7,180	$	5,998
Net Income Per Share of Common Stock
Basic	$	0.22	$	0.19		$	0.85	$	0.71
Diluted	$	0.22	$	0.19		$	0.84	$	0.71
Weighted Average Basic Shares Outstanding		8,439,258		8,439,258			8,439,258		8,439,258
Weighted Average Diluted Shares Outstanding		8,553,937		8,486,672			8,513,295		8,458,461

COLONY BANKCORP, INC
FINANCIAL HIGHLIGHTS (UNAUDITED)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
	QUARTER ENDED						YEAR-TO-DATE
EARNINGS SUMMARY	12/31/2016			12/31/2015			12/31/2016			12/31/2015
Net Interest Income	$	9,569		$	9,761		$	38,106		$	37,707
Provision for Loan Losses		-			125			1,062			866
Non-interest Income		2,392			2,242			9,553			9,045
Non-interest Expense		8,830			8,784			34,073			33,725
Income Taxes		944			989			3,851			3,788
Net Income		2,187			2,105			8,673			8,373
Preferred Stock Dividend		304			521			1,493			2,375
Net Income Available to
Common Shareholders		1,883			1,584			7,180			5,998
	QUARTER ENDED						YEAR-TO-DATE
PER COMMON SHARE SUMMARY	12/31/2016			12/31/2015			12/31/2016			12/31/2015
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 Diluted Shares		8,553,937			8,486,672			8,513,295			8,458,461
Earnings Per Basic Share (b)	$	0.22		$	0.19		$	0.85		$	0.71
Earnings Per Diluted Share (b)	$	0.22		$	0.19		$	0.84		$	0.71
Common Book Value Per Share	$	9.96		$	9.18		$	9.96		$	9.18
Tangible Common Book Value Per Share	$	9.95		$	9.16		$	9.95		$	9.16
	QUARTER ENDED						YEAR-TO-DATE
OPERATING RATIOS (1)	12/31/2016			12/31/2015			12/31/2016			12/31/2015
Net Interest Margin (a)		3.48	%		3.63	%		3.51	%		3.52	%
Return on Average Assets (b)		0.64	%		0.55	%		0.62	%		0.52	%
Return on Average Total Equity (b)		7.60	%		6.26	%		7.17	%		5.90	%
Efficiency (c)		73.57	%		72.81	%		71.81	%		71.92	%
(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	12/31/2016			12/31/2015
Total Assets	$	1,210,442		$	1,174,149
Loans, Net of Reserves		744,999			749,675
Allowance for Loan Losses		8,923			8,604
Intangible Assets		81			116
Deposits		1,044,357			1,011,554
Common Shareholders' Equity		84,028			77,436
Common Equity to Total Assets		6.94	%		6.60	%
Total Equity		93,388			95,457
Total Equity to Total Assets		7.71	%		8.13	%
	QUARTER ENDED						YEAR-TO-DATE
AVERAGE BALANCES	12/31/2016			12/31/2015			12/31/2016			12/31/2015
Total Assets	$	1,182,003		$	1,150,797		$	1,163,863		$	1,146,984
Loans, Net of Reserves		760,170			756,549			751,778			748,367
Deposits		1,009,258			981,299			993,705			976,352
Common Shareholders' Equity		85,787			78,080			83,579			75,380
Total Equity		99,169			101,135			100,114			101,710
	QUARTER ENDED						YEAR-TO-DATE
ASSET QUALITY	12/31/2016			12/31/2015			12/31/2016			12/31/2015
Nonperforming Loans	$	12,350		$	14,416		$	12,350		$	14,416
Nonperforming Assets		18,789			23,255			18,789			23,255
Substandard Assets		33,227			41,236			33,227			41,236
Net Loan Chg-offs (Recoveries)		280			(77	)		743			1,064
Reserve for Loan Loss to Total Loans		1.18	%		1.13	%		1.18	%		1.13	%
Reserve for Loan Loss to Non- performing Loans		72.25	%		59.69	%		72.25	%		59.69	%
Reserve for Loan Loss to Non-performing Assets		47.49	%		37.00	%		47.49	%		37.00	%
Net Loan Chg-offs (Recoveries)
to Avg. Total Loans		0.04	%		(0.01	)%		0.10	%		0.14	%
Nonperforming Loans to Total Loans		1.64	%		1.90	%		1.64	%		1.90	%
Nonperforming Assets to Total Assets		1.55	%		1.98	%		1.55	%		1.98	%
Nonperforming Assets to Total Loans
And Other Real Estate		2.47	%		3.03	%		2.47	%		3.03	%
Substandard Assets to Tier One Capital
and Allowance for Loan Losses		25.67	%		31.36	%		25.67	%		31.36	%

Quarterly Comparative Data (in thousands, except per share data)
	4Q2016			3Q2016			2Q2016		��	1Q2016			4Q2015
Assets	$	1,210,442		$	1,152,817		$	1,147,027		$	1,168,389		$	1,174,149
Loans		744,999			766,532			754,437			744,356			749,675
Deposits		1,044,357			978,590			976,567			1,000,043			1,011,554
Common Shareholders’ Equity		84,028			86,375			85,444			82,522			77,436
Total Equity		93,388			100,735			103,465			100,543			95,457
Net Income		2,187			2,258			2,167			2,061			2,105
Net Income Available to
Common Shareholders		1,883			1,880			1,761			1,656			1,584
Net Income Per Share		0.22			0.22			0.21			0.20			0.19
Key Performance Ratios	4Q2016			3Q2016			2Q2016			1Q2016			4Q2015
Return on Average Assets (1)		0.64	%		0.65	%		0.61	%		0.57	%		0.55	%
Return on Average Total Equity (1)		7.60	%		7.35	%		6.99	%		6.75	%		6.26	%
Common Equity to Total Assets		6.94	%		7.49	%		7.45	%		7.06	%		6.60	%
Total Equity to Total Assets		7.71	%		8.74	%		9.02	%		8.61	%		8.13	%
Net Interest Margin		3.48	%		3.56	%		3.53	%		3.47	%		3.63	%
(1) Computed using net income available to shareholders

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