EXHIBIT 99.1
NEWS RELEASE
FOR IMMEDIATE RELEASE
Date: | January 9, 2004 9:00 A.M. (ET) |
Contact: | Terry L. Hester |
Chief Financial Officer |
(229) 426-6002 |
Colony Bankcorp, Inc. Announces Fourth Quarter Results
FITZGERALD, GA., January 9, 2004 —- Colony Bankcorp, Inc. (Nasdaq: CBAN), today reported record quarterly net income of $1,787,000 for the fourth quarter of 2003, up 38.53% from fourth quarter 2002 net income of $1,290,000. On a per share split-adjusted basis, net income was $0.31, up 34.78% from fourth quarter 2002 net income per share of $0.23. Annualized return on assets for the quarter was 0.84% and return on equity excluding FASB 115 accounting effect was 12.92%, compared to 0.67% and 10.32% in the fourth quarter of 2002, respectively. A primary focus of our 2003 business plan was net interest margin improvement, which improved to 3.81% for fourth quarter 2003 compared to 3.54% for the same period a year ago.
Net income for calendar year 2003 was $6,816,000 compared to $5,752,000 for calendar year 2002 or an increase of 18.50%. Diluted earnings per share for 2003 was $1.19 per share compared to $1.03 per share for the same year ago period or an increase of 15.53%. Annualized return on assets for 2003 was 0.83% and return on equity excluding FASB 115 accounting effect was 12.79%, compared to 0.81% and 12.22% for the same year ago period, respectively. Net interest margin reflected a slight improvement to 3.74% for 2003 compared to 3.67% for the same year ago period.
Asset growth continued to be good as Colony surpassed $868 million in total assets during the quarter. Total assets increased 11.07% to $868,083,000 on December 31, 2003 from $781,535,000 a year ago. Net loans increased 14.39% to $645,660,000 on December 31, 2003 from $564,452,000 a year ago. Total deposits increased 10.19% to $732,317,000 on December 31, 2003 from $664,594,000 a year ago. Shareholders’ equity on December 31, 2003 was $55,976,000 and equaled 6.45% of total assets.
The ratio of non-performing assets to loans and other real estate on December 31, 2003 was 1.55% as compared to 1.61% on December 31, 2002. The fourth quarter and year-to-date 2003 provisions for loan losses were $1,133,000 and $4,060,000, respectively, compared to $681,000 and $2,820,000, respectively, for the same periods in 2002. Net charge-offs for the quarter were 0.06% of average loans, down from 0.10% for the fourth quarter of 2002, while net charge-offs for the twelve months ended December 31, 2003 were 0.47% of average loans, up from 0.39% for the same period a year ago. The loan loss reserve on December 31, 2003 was 1.30% of total loans, which provided coverage of 113.99% of nonperforming loans and 83.53% of nonperforming assets, compared to 93.59% and 79.83% on December 31, 2002, respectively.
During the quarter the board of directors increased the quarterly cash dividend to $0.0725 per share compared to $0.07 per share in the third quarter of 2003 and to the split-adjusted cash dividend of $0.06 per share in the fourth quarter of 2002. Split-adjusted cash dividends paid per share in 2003 total $0.2705 compared to split-adjusted dividends per share in 2002 of $0.22, or an increase of 22.95%.
Also announced during the quarter was the signing of a letter of intent between Colony Bankcorp and Flag Financial Corporation’s subsidiary, Flag Bank, for the purchase of Flag Bank’s Thomaston branch. Under the terms of the agreement, Colony Bankcorp will acquire all of the assets, including fixed assets, and assume the deposits of the branch facility. The Thomaston branch has approximately $37 million in deposits and $20 million in loans outstanding.
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 | 12/31/03 | 12/31/02 | 12/31/03 | 12/31/02* | ||||||||||
Net Interest Income | $ | 7,640 | $ | 6,378 | $ | 28,757 | $ | 24,281 | ||||||
Provision for Loan Losses | 1,133 | 681 | 4,060 | 2,820 | ||||||||||
Non-interest Income | 1,521 | 1,292 | 6,280 | (2) | 5,863 | (2) | ||||||||
Non-interest Expense | 5,392 | 5,119 | 20,769 | 18,731 | ||||||||||
Income Taxes | 849 | 580 | 3,392 | 2,841 | ||||||||||
Net Income | 1,787 | 1,290 | 6,816 | 5,752 | ||||||||||
Operating Income | 1,787 | 1,290 | 6,572 | 5,095 | ||||||||||
QUARTER ENDED | YEAR-TO-DATE | |||||||||||||
PER SHARE SUMMARY | 12/31/03 | 12/31/02 | 12/31/03 | 12/31/02 | ||||||||||
Common Shares Outstanding** | 5,727,968 | 5,716,540 | 5,727,968 | 5,716,540 | ||||||||||
Weighted Average Diluted Shares** | 5,731,600 | 5,710,137 | 5,721,070 | 5,609,884 | ||||||||||
Net Income Per Weighted Average Diluted Shares** | $ | 0.31 | $ | 0.23 | $ | 1.19 | $ | 1.03 | ||||||
Operating Income Per Weighted Average Diluted Shares ** | $ | 0.31 | $ | 0.23 | $ | 1.15 | $ | 0.91 | ||||||
Dividends Declared Per Share** | $ | 0.0725 | $ | 0.06 | $ | 0.2705 | $ | 0.22 |
QUARTER ENDED | YEAR-TO-DATE | |||||||||||||
OPERATING RATIOS (1) | 12/31/03 | 12/31/02 | 12/31/03 | 12/31/02 | ||||||||||
Net Interest Margin (a) | 3.81 | % | 3.54 | % | 3.74 | % | 3.67 | % | ||||||
Return on Average Assets Based on Net Income | 0.84 | % | 0.67 | % | 0.83 | % | 0.81 | % | ||||||
Return on Average Assets Based on Operating Income | 0.84 | % | 0.67 | % | 0.80 | % | 0.72 | % | ||||||
Return on Average Equity Based on Net Income | 12.92 | % | 10.32 | % | 12.79 | % | 12.22 | % | ||||||
Return on Average Equity Based on Operating Income | 12.92 | % | 10.32 | % | 12.33 | % | 10.82 | % | ||||||
Efficiency (b) | 58.42 | % | 66.09 | % | 59.46 | % | 63.61 | % | ||||||
QUARTER ENDED | ||||||||||||||
ENDING BALANCES | 12/31/03 | 12/31/02 | ||||||||||||
Total Assets | $ | 868,083 | $ | 781,535 | ||||||||||
Loans Held for Sale | 1,677 | 6,910 | ||||||||||||
Loans, Net of Reserves | 645,660 | 564,452 | ||||||||||||
Allowance for Loan Losses | 8,516 | 7,364 | ||||||||||||
Intangible Assets | 691 | 847 | ||||||||||||
Deposits | 732,317 | 664,594 | ||||||||||||
Stockholders’ Equity | 55,976 | 51,428 | ||||||||||||
Book Value Per Share** | $ | 9.77 | $ | 9.00 | ||||||||||
Tangible Book Value Per Share** | $ | 9.65 | $ | 8.85 | ||||||||||
Shareholders’ Equity to Total Assets | 6.45 | % | 6.58 | % |
(1) | Annualized. |
(2) | Includes gain on sale of securities of $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. |
* | December 31, 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 | 12/31/03 | 12/31/02 | 12/31/03 | 12/31/02 | ||||||||
Total Assets | $ | 851,796 | $ | 766,674 | $ | 816,666 | $ | 707,631 | ||||
Loans, Net of Reserves | 645,752 | 564,253 | 622,223 | 520,648 | ||||||||
Deposits | 717,717 | 656,257 | 688,624 | 603,783 | ||||||||
Stockholders’ Equity | 55,310 | 50,784 | 53,843 | 47,910 |
QUARTER ENDED | YEAR-TO-DATE | |||||||||||||||
ASSET QUALITY | 12/31/03 | 12/31/02 | 12/31/03 | 12/31/02 | ||||||||||||
Nonperforming Loans | $ | 7,471 | $ | 7,868 | $ | 7,471 | $ | 7,868 | ||||||||
Nonperforming Assets | 10,195 | 9,225 | 10,195 | 9,225 | ||||||||||||
Net Loan Chg-offs (Recoveries) | 366 | 594 | 2,908 | 2,067 | ||||||||||||
Reserve for Loan Loss to Gross Loans | 1.30 | % | 1.29 | % | 1.30 | % | 1.29 | % | ||||||||
Reserve for Loan Loss to Non-performing Loans | 113.99 | % | 93.59 | % | 113.99 | % | 93.59 | % | ||||||||
Reserve for Loan Loss to Non-performing Assets | 83.53 | % | 79.83 | % | 83.53 | % | 79.83 | % | ||||||||
Net Loan Chg-offs (Recoveries) to Avg. Gross Loans | 0.06 | % | 0.10 | % | 0.47 | % | 0.39 | % | ||||||||
Nonperforming Loans to Gross Loans | 1.14 | % | 1.38 | % | 1.14 | % | 1.38 | % | ||||||||
Nonperforming Assets to Total Assets | 1.17 | % | 1.18 | % | 1.17 | % | 1.18 | % | ||||||||
Nonperforming Assets to Loans and Other Real Estate | 1.55 | % | 1.61 | % | 1.55 | % | 1.61 | % |
Quarterly Comparative Data (in thousands, except per share data)
4Q2003 | 3Q2003 | 2Q2003 | 1Q2003 | 4Q2002 | |||||||||||
Assets | $ | 868,083 | $ | 831,384 | $ | 819,757 | $ | 801,843 | $ | 781,535 | |||||
Loans | 645,660 | 642,969 | 623,356 | 594,230 | 564,452 | ||||||||||
Deposits | 732,317 | 697,805 | 688,641 | 673,671 | 664,594 | ||||||||||
Equity | 55,976 | 54,449 | 54,055 | 52,484 | 51,428 | ||||||||||
Net Income | 1,787 | 1,719 | 1,665 | 1,645 | 1,290 | ||||||||||
Net Income Per Share* | 0.31 | 0.30 | 0.29 | 0.29 | 0.23 | ||||||||||
Dividends Declared Per Share* | 0.0725 | 0.07 | 0.068 | 0.06 | 0.06 |
*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 | 4Q2003 | 3Q2003 | 2Q2003 | 1Q2003 | 4Q2002 | |||||
Return on Assets | 0.84% | 0.83% | 0.83% | 0.84% | 0.67% | |||||
Return on Equity* | 12.92% | 12.75% | 12.65% | 12.85% | 10.32% | |||||
Equity/Assets | 6.45% | 6.55% | 6.60% | 6.55% | 6.59% | |||||
Net Interest Margin | 3.81% | 3.83% | 3.71% | 3.63% | 3.54% |
*Excludes FASB 115 Accounting Effect
Consolidated Balance Sheets Colony Bankcorp, Inc.
(in thousands)
December 31, 2003 | December 31, 2002 | |||||||
(unaudited) | (audited) | |||||||
ASSETS | ||||||||
Cash and Balances Due from Depository Institutions | $ | 33,970 | $ | 35,883 | ||||
Federal Funds Sold | 37,368 | 47,993 | ||||||
Investment Securities | ||||||||
Available for Sale, at Fair Value | 110,328 | 90,289 | ||||||
Held for Maturity, at Cost (Fair Value of $80 and $118, Respectively) | 80 | 118 | ||||||
110,408 | 90,407 | |||||||
Federal Home Loan Bank Stock, at Cost | 3,000 | 2,837 | ||||||
Loans Held for Sale | 1,677 | 6,910 | ||||||
Loans | 654,209 | 571,817 | ||||||
Allowance for Loan Losses | (8,516 | ) | (7,364 | ) | ||||
Unearned Interest and Fees | (33 | ) | (1 | ) | ||||
645,660 | 564,452 | |||||||
Premises and Equipment | 17,571 | 17,329 | ||||||
Other Real Estate | 2,724 | 1,357 | ||||||
Goodwill | 448 | 448 | ||||||
Intangible Assets | 243 | 399 | ||||||
Other Assets | 15,014 | 13,520 | ||||||
Total Assets | $ | 868,083 | $ | 781,535 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Deposits | ||||||||
Noninterest-Bearing | $ | 64,048 | $ | 51,534 | ||||
Interest-Bearing | 668,269 | 613,060 | ||||||
732,317 | 664,594 | |||||||
Borrowed Money | 61,184 | 46,427 | ||||||
Subordinated Debentures | 14,434 | 14,434 | ||||||
Other Liabilities | 4,172 | 4,652 | ||||||
Stockholders’ Equity | ||||||||
Common Stock, Par Value $1, Authorized 20,000,000 Shares, Issued 5,727,968 and 4,573,232 Shares as of December 31, 2003 and December 31, 2002, Respectively | 5,728 | 4,573 | ||||||
Paid in Capital | 23,499 | 23,358 | ||||||
Retained Earnings | 26,857 | 22,742 | ||||||
Restricted Stock— Unearned Compensation | (130 | ) | (78 | ) | ||||
Accumulated Other Comprehensive Income, Net of Taxes | 22 | 833 | ||||||
55,976 | 51,428 | |||||||
Total Liabilities and Stockholders’ Equity | $ | 868,083 | $ | 781,535 | ||||
Consolidated Statements of Income Colony Bankcorp, Inc.
(in thousands except per share data)
Three Months Ended | Twelve Months Ended | |||||||||||
12/31/03 | 12/31/02 | 12/31/03 | 12/31/02 | |||||||||
(unaudited) | (audited) | (unaudited) | (audited) | |||||||||
Interest Income | ||||||||||||
Loans, including fees | $ | 10,850 | $ | 10,696 | $ | 43,515 | $ | 41,054 | ||||
Federal Funds Sold | 85 | 172 | 359 | 483 | ||||||||
Deposits with Other Banks | 32 | 47 | 152 | 164 | ||||||||
Investment Securities | ||||||||||||
U.S. Treasury & Federal Agencies | 720 | 660 | 2,263 | 3,130 | ||||||||
State, County and Municipal | 65 | 81 | 305 | 344 | ||||||||
Other Investments | 83 | 148 | 423 | 944 | ||||||||
Dividends on Other Investments | 24 | 32 | 122 | 139 | ||||||||
Other Interest Income | 8 | 7 | 33 | 32 | ||||||||
11,867 | 11,843 | 47,172 | 46,290 | |||||||||
Interest Expense | ||||||||||||
Deposits | 3,470 | 4,822 | 15,465 | 19,582 | ||||||||
Federal Funds Purchased | 0 | 0 | 1 | 3 | ||||||||
Borrowed Money | 586 | 522 | 2,263 | 2,027 | ||||||||
Subordinated Debentures | 171 | 121 | 686 | 397 | ||||||||
4,227 | 5,465 | 18,415 | 22,009 | |||||||||
Net Interest Income | 7,640 | 6,378 | 28,757 | 24,281 | ||||||||
Provision for Loan Losses | 1,133 | 681 | 4,060 | 2,820 | ||||||||
Net Interest Income After Provisions for Loan Losses | 6,507 | 5,697 | 24,697 | 21,461 | ||||||||
Noninterest Income | ||||||||||||
Service Charges on Deposits | 1,043 | 827 | 3,821 | 3,324 | ||||||||
Other Service Charges, Commissions & Fees | 225 | 99 | 1,025 | 690 | ||||||||
Security Gains, net | 0 | 0 | 369 | 995 | ||||||||
Other Income | 253 | 366 | 1,065 | 854 | ||||||||
1,521 | 1,292 | 6,280 | 5,863 | |||||||||
Noninterest Expense | ||||||||||||
Salaries and Employee Benefits | 2,772 | 2,758 | 11,186 | 10,200 | ||||||||
Occupancy and Equipment | 788 | 906 | 3,189 | 3,078 | ||||||||
Other Operating Expenses | 1,832 | 1,455 | 6,394 | 5,453 | ||||||||
5,392 | 5,119 | 20,769 | 18,731 | |||||||||
Income Before Income Taxes | 2,636 | 1,870 | 10,208 | 8,593 | ||||||||
Income Taxes | 849 | 580 | 3,392 | 2,841 | ||||||||
Net Income | $ | 1,787 | $ | 1,290 | $ | 6,816 | $ | 5,752 | ||||
Net Income Per Share of Common Stock | ||||||||||||
Basic | $ | 0.31 | $ | 0.23 | $ | 1.20 | $ | 1.03 | ||||
Diluted | $ | 0.31 | $ | 0.23 | $ | 1.19 | $ | 1.03 | ||||
Weighted Average Basic Shares Outstanding | 5,701,540 | 5,694,978 | 5,701,540 | 5,594,562 | ||||||||
Weighted Average Diluted Shares Outstanding | 5,731,600 | 5,710,137 | 5,721,070 | 5,609,884 | ||||||||
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.