EXHIBIT 99.1
NEWS RELEASE
FOR IMMEDIATE RELEASE
Date: October 10, 2003 9:00 A.M. (ET)
Contact: Terry L. Hester
Chief Financial Officer
(229) 426-6002
Colony Bankcorp, Inc. Announces Third Quarter Results
FITZGERALD, GA., October 10, 2003—Colony Bankcorp, Inc. (Nasdaq: CBAN), today reported record quarterly net income of $1,719,000 for the third quarter of 2003, up 13.09% from third quarter 2002 net income of $1,520,000. On a per share split-adjusted basis, net income was $0.30, up 11.11% from third quarter 2002 net income per share of $0.27. Annualized return on assets for the quarter was 0.83% and return on equity excluding FASB 115 accounting effect was 12.75%, compared to 0.84% and 12.40% in the third quarter of 2002, respectively. A primary focus of our 2003 business plan is net interest margin improvement, which improved to 3.83% for third quarter 2003 compared to 3.81% for the same period a year ago and improved from the company’s low quarterly net interest margin of 3.54% in the fourth quarter of 2002.
Net income for the nine months ended September 30, 2003 was $5,029,000 or $0.88 per share as compared to $4,462,000 or $0.80 per share for the same period a year ago. Earnings per share reflect an increase of 10.00% from a year ago. Annualized return on assets for the nine months ended September 30, 2003 was 0.83% and return on equity excluding FASB 115 accounting effect was 12.75%, compared to 0.86% and 12.91% for the nine months ended September 30, 2002, respectively. Net interest margin was flat at 3.72% for both nine-month periods ended September 30, 2003 and 2002.
Asset growth continued to be good as Colony surpassed $830 million in total assets during the quarter. Total assets increased 11.60% to $830,950,000 on September 30, 2003 from $744,572,000 a year ago. Net loans increased 13.86% to $642,969,000 on September 30, 2003 from $564,726,000 a year ago. Total deposits increased 9.84% to $697,805,000 on September 30, 2003 from $635,318,000 a year ago. Shareholders’ equity on September 30, 2003 was $54,449,000 and equaled 6.55% of total assets.
The ratio of non-performing assets to loans and other real estate on September 30, 2003 was 1.63% as compared to 1.59% on September 30, 2002 and 1.61% on December 31, 2002. The third quarter and year-to-date 2003 provisions for loan losses were $1,455,000and $2,927,000, respectively, compared to $990,000 and $2,139,000, respectively, for the same periods in 2002. Net charge-offs for the quarter were 0.26% of average loans, up from 0.15% for the third quarter of 2002, while net charge-offs for the nine months ended September 30, 2003 were 0.41% of average loans, up from 0.28% for the same period a year ago. Net charge-offs increased significantly during third quarter 2003 primarily due to one commercial line being charged-off that accounted for approximately 48% of the total third quarter charge-offs. The loan loss reserve was 1.19% of total loans, which provided coverage of 96.12% of nonperforming loans and 72.68% of nonperforming assets, compared to 92.10% and 79.81% on September 30, 2002, respectively.
During the quarter the board of directors announced a five-for-four stock split to be effected as a 25% stock dividend effective September 1, 2003. James D. Minix, President and CEO said, “This stock split allows our shareholders to share in our continuing strong financial performance and will tend to enhance the liquidity of our stock by increasing from 4.6 million to 5.7 million the number of our outstanding shares.”
Also, with new tax regulations benefiting shareholders with reduced taxes on dividend income, the company increased its third quarter dividend to $.07 per share from $0.068 in second quarter 2003 and $0.056 in third quarter 2002.
Colony Bankcorp, Inc. is a multi-bank holding company headquartered in Fitzgerald, Georgia that consists of the following subsidiaries: Colony Bank of Fitzgerald, Colony Bank Wilcox, Colony Bank Ashburn, Colony Bank of Dodge County, Colony Bank Worth, Colony Bank Southeast, Colony Bank Quitman, FSB, Georgia First Mortgage Company and Colony Management Services, Inc. The Company conducts a general full service commercial, consumer and mortgage banking business through twenty-two offices located in the South Georgia cities of Fitzgerald, Warner Robins, Ashburn, Leesburg, Cordele, Albany, Sylvester, Tifton, Moultrie, Douglas, Broxton, Eastman, Chester, Soperton, Rochelle, Pitts, Quitman and Valdosta, Georgia.
Colony Bankcorp, Inc. Common Stock is quoted on the Nasdaq National Market under the symbol “CBAN”.
The preceding release contains statements that constitute “forward-looking statements” within the meaning of Section 27 A of the Securities Act of 1933, as amended, and Section 21 E of the Securities Exchange Act of 1934, as amended. The words “believe,” “estimate,” “expect,” “intend,” “anticipate,” and similar expressions and variations thereof identify certain of such forward-looking statements, which speak only as of the dates which they were made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those indicated in the forward-looking statements as a result of various factors. 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 | 09/30/03 | 09/30/02 | 09/30/03 | 09/30/02* | ||||||||||||
Net Interest Income | $ | 7,463 | $ | 6,491 | $ | 21,133 | $ | 17,911 | ||||||||
Provision for Loan Losses | 1,455 | 990 | 2,927 | 2,139 | ||||||||||||
Non-interest Income | 1,847 | (2) | 1,779 | (2) | 4,743 | (2) | 4,563 | (2) | ||||||||
Non-interest Expense | 5,293 | 4,972 | 15,377 | 13,612 | ||||||||||||
Income Taxes | 843 | 788 | 2,543 | 2,261 | ||||||||||||
Net Income | 1,719 | 1,520 | 5,029 | 4,462 | ||||||||||||
Operating Income | 1,475 | 1,198 | 4,785 | 3,805 | ||||||||||||
QUARTER ENDED | YEAR-TO-DATE | |||||||||||||||
PER SHARE SUMMARY | 09/30/03 | 09/30/02 | 09/30/03 | 09/30/02 | ||||||||||||
Common Shares Outstanding** | 5,727,968 | 5,716,853 | 5,727,968 | 5,716,853 | ||||||||||||
Weighted Average Diluted Shares** | 5,720,374 | 5,709,117 | 5,720,481 | 5,562,055 | ||||||||||||
Net Income Per Weighted | ||||||||||||||||
Average Shares** | $ | 0.30 | $ | 0.27 | $ | 0.88 | $ | 0.80 | ||||||||
Operating Income Per Weighted Average Shares ** | $ | 0.26 | $ | 0.21 | $ | 0.84 | $ | 0.68 | ||||||||
Dividends Declared Per Share** | $ | 0.07 | $ | 0.056 | $ | 0.198 | $ | 0.16 |
QUARTER ENDED | YEAR-TO-DATE | |||||||||||
OPERATING RATIOS (1) | 09/30/03 | 09/30/02 | 09/30/03 | 09/30/02 | ||||||||
Net Interest Margin (a) | 3.83 | % | 3.81 | % | 3.72 | % | 3.72 | % | ||||
Return on Average Assets | ||||||||||||
Based on Net Income | 0.83 | % | 0.84 | % | 0.83 | % | 0.86 | % | ||||
Return on Average Assets | ||||||||||||
Based on Operating Income | 0.71 | % | 0.66 | % | 0.79 | % | 0.74 | % | ||||
Return on Average Equity | ||||||||||||
Based on Net Income | 12.75 | % | 12.40 | % | 12.75 | % | 12.91 | % | ||||
Return on Average Equity | ||||||||||||
Based on Operating Income | 10.94 | % | 9.78 | % | 12.13 | % | 11.01 | % | ||||
Efficiency (b) | 58.77 | % | 63.27 | % | 60.45 | % | 62.73 | % |
QUARTER ENDED | ||||||||
ENDING BALANCES | 09/30/03 | 09/30/02 | ||||||
Total Assets | $ | 830,950 | $ | 744,572 | ||||
Loans Held for Sale | 3,315 | 5,280 | ||||||
Loans, Net of Reserves | 642,969 | 564,726 | ||||||
Allowance for Loan Losses | 7,748 | 7,276 | ||||||
Intangible Assets | 730 | 880 | ||||||
Deposits | 697,805 | 635,318 | ||||||
Stockholders’ Equity | 54,449 | 50,397 | ||||||
Book Value Per Share** | $ | 9.51 | $ | 8.82 | ||||
Tangible Book Value Per Share** | $ | 9.38 | $ | 8.66 | ||||
Shareholders’ Equity to Total Assets | 6.55 | % | 6.77 | % |
(1) | Annualized. |
(2) | Includes gain on sale of securities of $369 for third quarter 2003 and $488 for third quarter 2002 and $369 for YTD 2003 and $995 for YTD 2002. |
(a) | Computed using fully taxable-equivalent net income. |
(b) | 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. |
* | September 30, 2002 YTD earnings summary does not include first quarter 2002 results of Colony Bank Quitman, FSB as the acquisition was consummated on March 29, 2002. |
** | All per share data has been adjusted to reflect 5-for-4 stock split effected as a 25% stock dividend as of September 1, 2003. |
COLONY BANKCORP, INC
FINANCIAL HIGHLIGHTS (UNAUDITED)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
QUARTER ENDED | YEAR-TO-DATE | |||||||||||
AVERAGE BALANCES | 09/30/03 | 09/30/02 | 09/30/03 | 09/30/02 | ||||||||
Total Assets | $ | 826,760 | $ | 727,928 | $ | 804,701 | $ | 687,950 | ||||
Loans, Net of Reserves | 635,063 | 547,842 | 608,070 | 511,748 | ||||||||
Deposits | 693,453 | 621,294 | 678,733 | 586,292 | ||||||||
Stockholders’ Equity | 54,388 | 50,182 | 53,316 | 46,952 |
QUARTER ENDED | YEAR-TO-DATE | |||||||||||||||
ASSET QUALITY | 09/30/03 | 09/30/02 | 09/30/03 | 09/30/02 | ||||||||||||
Nonperforming Loans | $ | 8,061 | $ | 7,900 | $ | 8,061 | $ | 7,900 | ||||||||
Nonperforming Assets | 10,661 | 9,117 | 10,661 | 9,117 | ||||||||||||
Net Loan Chg-offs (Recoveries) | 1,669 | 815 | 2,542 | 1,473 | ||||||||||||
Reserve for Loan Loss to Gross Loans | 1.19 | % | 1.27 | % | 1.19 | % | 1.27 | % | ||||||||
Reserve for Loan Loss to Non-performing Loans | 96.12 | % | 92.10 | % | 96.12 | % | 92.10 | % | ||||||||
Reserve for Loan Loss to Non-performing Assets | 72.68 | % | 79.81 | % | 72.68 | % | 79.81 | % | ||||||||
Net Loan Chg-offs (Recoveries) to Avg. Gross Loans | 0.26 | % | 0.15 | % | 0.41 | % | 0.28 | % | ||||||||
Nonperforming Loans to Gross Loans | 1.24 | % | 1.38 | % | 1.24 | % | 1.38 | % | ||||||||
Nonperforming Assets to Total Assets | 1.28 | % | 1.22 | % | 1.28 | % | 1.22 | % | ||||||||
Nonperforming Assets to Loans and Other Real Estate | 1.63 | % | 1.59 | % | 1.63 | % | 1.59 | % |
Quarterly Comparative Data (in thousands, except per share data)
3Q2003 | 2Q2003 | 1Q2003 | 4Q2002 | 3Q2002 | |||||||||||
Assets | $ | 830,950 | $ | 819,323 | $ | 801,409 | $ | 780,589 | $ | 744,572 | |||||
Loans | 642,969 | 623,356 | 594,230 | 564,257 | 564,726 | ||||||||||
Deposits | 697,805 | 688,641 | 675,671 | 664,470 | 635,318 | ||||||||||
Equity | 54,449 | 54,055 | 52,484 | 51,428 | 50,397 | ||||||||||
Net Income | 1,719 | 1,665 | 1,645 | 1,290 | 1,520 | ||||||||||
Net Income Per Share* | 0.30 | 0.29 | 0.29 | 0.22 | 0.27 | ||||||||||
Dividends Declared Per Share* | 0.07 | 0.068 | 0.06 | 0.06 | 0.056 |
*All | per share data has been adjusted to reflect 5-for-4 stock split effected as a 25% stock dividend on September 1, 2003. |
Key Performance Ratios | 3Q2003 | 2Q2003 | 1Q2003 | 4Q2002 | 3Q2002 | ||||||||||
Return on Assets | 0.83 | % | 0.83 | % | 0.84 | % | 0.67 | % | 0.84 | % | |||||
Return on Equity* | 12.75 | % | 12.65 | % | 12.85 | % | 10.32 | % | 12.40 | % | |||||
Equity/Assets | 6.55 | % | 6.60 | % | 6.55 | % | 6.59 | % | 6.77 | % | |||||
Net Interest Margin | 3.83 | % | 3.71 | % | 3.63 | % | 3.54 | % | 3.81 | % |
*Excludes FASB 115 Accounting Effect
Consolidated Balance Sheets Colony Bankcorp, Inc.
(in thousands)
September 30, 2003 | September 30, 2002 | |||||||
(unaudited) | (unaudited) | |||||||
ASSETS | ||||||||
Cash and Balances Due from Depository Institutions | $ | 33,328 | $ | 25,177 | ||||
Federal Funds Sold | 21,408 | 32,392 | ||||||
Investment Securities | ||||||||
Available for Sale, at Fair Value | 92,175 | 83,367 | ||||||
Held for Maturity, at Cost (Fair Value of $88 and $121, Respectively) | 88 | 115 | ||||||
92,263 | 83,482 | |||||||
Federal Home Loan Bank Stock, at Cost | 2,975 | 2,837 | ||||||
Loans Held for Sale | 3,315 | 5,280 | ||||||
Loans | 650,755 | 572,065 | ||||||
Allowance for Loan Losses | (7,748 | ) | (7,276 | ) | ||||
Unearned Interest and Fees | (38 | ) | (63 | ) | ||||
642,969 | 564,726 | |||||||
Premises and Equipment | 17,600 | 17,023 | ||||||
Other Real Estate | 2,600 | 1,217 | ||||||
Goodwill | 448 | 448 | ||||||
Intangible Assets | 282 | 432 | ||||||
Other Assets | 13,762 | 11,558 | ||||||
Total Assets | $ | 830,950 | $ | 744,572 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Deposits | ||||||||
Noninterest-Bearing | $ | 52,695 | $ | 45,990 | ||||
Interest-Bearing | 645,110 | 589,328 | ||||||
697,805 | 635,318 | |||||||
Borrowed Money | ||||||||
Federal Funds Purchased | 0 | 0 | ||||||
Borrowed Money | 60,413 | 45,671 | ||||||
60,413 | 45,671 | |||||||
Guaranteed Mandatorily Redeemable Trust | ||||||||
Preferred Securities of Subsidiary Trusts | 14,000 | 9,000 | ||||||
Other Liabilities | 4,283 | 4,186 | ||||||
Stockholders’ Equity | ||||||||
Common Stock, Par Value $1, Authorized 20,000,000 Shares, Issued 5,727,968 and 4,573,482 Shares as of September 30, 2003 and September 30, 2002, Respectively | 5,728 | 4,574 | ||||||
Paid in Capital | 23,499 | 23,361 | ||||||
Retained Earnings | 25,486 | 21,795 | ||||||
Restricted Stock-Unearned Compensation | (154 | ) | (97 | ) | ||||
Accumulated Other Comprehensive Income, Net of Taxes | (110 | ) | 764 | |||||
54,449 | 50,397 | |||||||
Total Liabilities and Stockholders’ Equity | $ | 830,950 | $ | 744,572 | ||||
Consolidated Statements of Income Colony Bankcorp, Inc.
(in thousands except per share data)
Three Months Ended | Nine Months Ended | |||||||||||
09/30/03 | 09/30/02 | 09/30/03 | 09/30/02 | |||||||||
(unaudited) | (unaudited) | |||||||||||
Interest Income | ||||||||||||
Loans, including fees | $ | 11,037 | $ | 10,669 | $ | 32,665 | $ | 30,358 | ||||
Federal Funds Sold | 53 | 102 | 274 | 311 | ||||||||
Deposits with Other Banks | 40 | 37 | 120 | 117 | ||||||||
Investment Securities | ||||||||||||
U.S. Treasury & Federal Agencies | 536 | 792 | 1,543 | 2,470 | ||||||||
State, County and Municipal | 77 | 104 | 240 | 263 | ||||||||
Other Investments | 104 | 187 | 340 | 796 | ||||||||
Dividends on Other Investments | 31 | 35 | 98 | 107 | ||||||||
Other Interest Income | 7 | 10 | 25 | 25 | ||||||||
11,885 | 11,936 | 35,305 | 34,447 | |||||||||
Interest Expense | ||||||||||||
Deposits | 3,673 | 4,867 | 11,995 | 14,760 | ||||||||
Federal Funds Purchased | 0 | 1 | 1 | 3 | ||||||||
Borrowed Money | 589 | 446 | 1,677 | 1,505 | ||||||||
Trust Preferred Securities | 160 | 131 | 499 | 268 | ||||||||
4,422 | 5,445 | 14,172 | 16,536 | |||||||||
Net Interest Income | 7,463 | 6,491 | 21,133 | 17,911 | ||||||||
Provision for Loan Losses | 1,455 | 990 | 2,927 | 2,139 | ||||||||
Net Interest Income After Provisions for Loan Losses | 6,008 | 5,501 | 18,206 | 15,772 | ||||||||
Noninterest Income | ||||||||||||
Service Charges on Deposits | 1,011 | 890 | 2,778 | 2,497 | ||||||||
Other Service Charges, Commissions & Fees | 294 | 218 | 800 | 591 | ||||||||
Security Gains, net | 369 | 488 | 369 | 995 | ||||||||
Other Income | 173 | 183 | 796 | 480 | ||||||||
1,847 | 1,779 | 4,743 | 4,563 | |||||||||
Noninterest Expense | ||||||||||||
Salaries and Employee Benefits | 2,839 | 2,697 | 8,414 | 7,442 | ||||||||
Occupancy and Equipment | 848 | 690 | 2,401 | 2,172 | ||||||||
Other Operating Expenses | 1,606 | 1,585 | 4,562 | 3,998 | ||||||||
5,293 | 4,972 | 15,377 | 13,612 | |||||||||
Income Before Income Taxes | 2,562 | 2,308 | 7,572 | 6,723 | ||||||||
Income Taxes | 843 | 788 | 2,543 | 2,261 | ||||||||
Net Income | $ | 1,719 | $ | 1,520 | $ | 5,029 | $ | 4,462 | ||||
Net Income Per Share of Common Stock | ||||||||||||
Basic | $ | 0.30 | $ | 0.27 | $ | 0.88 | $ | 0.80 | ||||
Diluted | $ | 0.30 | $ | 0.27 | $ | 0.88 | $ | 0.80 | ||||
Weighted Average Basic Shares Outstanding | 5,694,978 | 5,694,978 | 5,694,978 | 5,548,031 | ||||||||
Weighted Average Diluted Shares Outstanding | 5,720,374 | 5,709,117 | 5,720,481 | 5,562,055 | ||||||||
All per share data has been adjusted to reflect a 5-for-4 stock split effected as a 25% stock dividend on September 1, 2003.