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

EXHIBIT 99.1

NEWS RELEASE

FOR IMMEDIATE RELEASE

Date:	July 9, 2004	8:00 A.M. (ET)
Contact:	Terry L. Hester
	Chief Financial Officer
	(229) 426-6002

Colony Bankcorp, Inc. Announces Second Quarter Results

FITZGERALD, GA., July 9, 2004 — Colony Bankcorp, Inc. (Nasdaq: CBAN), today reported record quarterly net income of $2,007,000 for the second quarter of 2004, up 20.54% from second quarter 2003 net income of $1,665,000. On a per share split-adjusted basis, net income was $0.35, up 20.69% from second quarter 2003 net income per share of $0.29. Annualized return on assets for the quarter was 0.87% and return on equity excluding FASB 115 accounting effect was 13.80%, compared to 0.83% and 12.65% for the same year ago period, respectively. Net interest margin reflected an improvement to 3.82% for second quarter 2004 compared to 3.59% for the same year ago period.

Net income for the six months ended June 30, 2004 was $3,932,000 or $0.69 per share as compared to $3,310,000 or $0.58 per share for the same period a year ago. Earnings per share reflect an increase of 18.97% from a year ago. Annualized return on assets for the six months ended June 30, 2004 was 0.87% and return on equity excluding FASB 115 accounting effect was 13.71%, compared to 0.84% and 12.75% for the six months ended June 30, 2003, respectively.

Asset growth continued to be good as Colony surpassed $936 million in total assets during the quarter. Total assets increased 14.30% to $936,997,000 on June 30, 2004 from $819,757,000 a year ago. Net loans increased 17.88% to $734,799,000 on June 30, 2004 from $623,356,000 a year ago. Total deposits increased 14.82% to $790,682,000 on June 30, 2004 from $688,641,000 a year ago. Shareholders’ equity on June 30, 2004 was $58,015,000 and equaled 6.19% of total assets.

The ratio of non-performing assets to loans and other real estate on June 30, 2004 was 1.43% as compared to 1.48% on June 30, 2003 and 1.55% on December 31, 2003. The second quarter provisions for loan losses were $865,000 compared to $823,000 for the same period in 2003, while year to date provisions for loan losses were $1,845,000 and $1,472,000 for 2004 and 2003, respectively. Net charge-offs for the quarter were 0.04% of average loans, down from 0.11% for the second quarter of 2003 and net charge-offs for the six months ended June 30, 2004 were 0.10%, down from 0.14% for the same period a year ago. The loan loss reserve on June 30, 2004 was 1.30% of total loans, which provided coverage of 133.77% of nonperforming loans and 90.77% of nonperforming assets, compared to 103.66% and 84.84% on June 30, 2003, respectively.

During the quarter the board of directors increased the quarterly cash dividend to $0.0775 per share compared to $0.075 per share in the first quarter of 2004 and to the split-adjusted cash dividend of $0.068 per share in the second quarter of 2003. The second quarter dividend payment represents an increase of 13.97% over the dividend payment in second quarter 2003.

In May, the company was recognized as one of Georgia’s top-performing companies when The Atlanta Journal-Constitution announced its annual ranking of public companies based in Georgia. The eleventh annual list, based on fiscal 2003 data, ranked Colony Bankcorp, Inc. 35^th on the list and was the fifth consecutive year that Colony has been recognized.

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-five offices located in the Central, South and Coastal Georgia cities of Fitzgerald, Warner Robins, Ashburn, Leesburg, Cordele, Albany, Thomaston, Sylvester, Tifton, Moultrie, Douglas, Broxton, Savannah, 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”.

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

EARNINGS SUMMARY	QUARTER ENDED				YEAR-TO-DATE
	06/30/04		06/30/03		06/30/04		06/30/03
Net Interest Income	$	8,295	$	6,775	$	16,195	$	13,233
Provision for Loan Losses		865		823		1,845		1,472
Non-interest Income		1,572		1,763		3,093		3,333
Non-interest Expense		5,949		5,186		11,445		10,084
Income Taxes		1,046		864		2,066		1,700
Net Income		2,007		1,665		3,932		3,310
Operating Income		2,007		1,665		3,932		3,310

PER SHARE SUMMARY	QUARTER ENDED				YEAR-TO-DATE
	06/30/04		06/30/03		06/30/04		06/30/03
Common Shares Outstanding**		5,738,343		5,728,852		5,738,343		5,728,852
Weighted Average Diluted Shares**		5,725,022		5,716,409		5,719,551		5,715,937
Net Income Per Weighted
Average Diluted Shares**	$	0.35	$	0.29	$	0.69	$	0.58
Operating Income Per Weighted
Average Diluted Shares **	$	0.35	$	0.29	$	0.69	$	0.58
Dividends Declared Per Share**	$	0.0775	$	0.068	$	0.1525	$	0.128

OPERATING RATIOS (1)	QUARTER ENDED				YEAR-TO-DATE
	06/30/04		06/30/03		06/30/04		06/30/03
Net Interest Margin (a)	3.82	%	3.59	%	3.82	%	3.56	%
Return on Average Assets
Based on Net Income	0.87	%	0.83	%	0.87	%	0.84	%
Return on Average Assets
Based on Operating Income	0.87	%	0.83	%	0.87	%	0.84	%
Return on Average Equity
Based on Net Income(b)	13.80	%	12.65	%	13.71	%	12.75	%
Return on Average Equity
Based on Operating Income(b)	13.80	%	12.65	%	13.71	%	12.75	%
Efficiency (c)	59.89	%	60.26	%	58.91	%	60.38	%

ENDING BALANCES	QUARTER ENDED
	06/30/04			06/30/03
Total Assets	$	936,997		$	819,757
Loans Held for Sale		2,469			7,618
Loans, Net of Reserves		734,799			623,356
Allowance for Loan Losses		9,677			7,963
Intangible Assets		3,123			769
Deposits		790,682			688,641
Stockholders’ Equity		58,015			54,055
Book Value Per Share**	$	10.11		$	9.44
Tangible Book Value Per Share**	$	9.57		$	9.30
Shareholders’ Equity to Total Assets		6.19	%		6.59	%

(1) Annualized.

(a) Computed using fully taxable-equivalent net income.

(b) Excludes FASB 115 accounting effect

(c) 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.

** 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

AVERAGE BALANCES	QUARTER ENDED				YEAR-TO-DATE
	06/30/04		06/30/03		06/30/04		06/30/03
Total Assets	$	925,320	$	806,640	$	903,191	$	793,519
Loans, Net of Reserves		712,616		611,329		686,512		594,377
Deposits		786,873		678,013		764,099		671,149
Stockholders’ Equity		58,124		53,462		57,571		52,773

ASSET QUALITY	QUARTER ENDED						YEAR-TO-DATE
	06/30/04			06/30/03			06/30/04			06/30/03
Nonperforming Loans	$	7,234		$	7,682		$	7,234		$	7,682
Nonperforming Assets		10,661			9,386			10,661			9,386
Net Loan Chg-offs (Recoveries)		269			680			683			873
Reserve for Loan Loss to Gross Loans		1.30	%		1.26	%		1.30	%		1.26	%
Reserve for Loan Loss to Non- performing Loans		133.77	%		103.66	%		133.77	%		103.66	%
Reserve for Loan Loss to Non- performing Assets		90.77	%		84.84	%		90.77	%		84.84	%
Net Loan Chg-offs (Recoveries) to Avg. Gross Loans		0.04	%		0.11	%		0.10	%		0.14	%
Nonperforming Loans to Gross Loans		0.97	%		1.22	%		0.97	%		1.22	%
Nonperforming Assets to Total Assets		1.14	%		1.15	%		1.14	%		1.15	%
Nonperforming Assets to Loans and Other Real Estate		1.43	%		1.48	%		1.43	%		1.48	%

Quarterly Comparative Data (in thousands, except per share data)

	2Q2004		1Q2004		4Q2003		3Q2003		2Q2003
Assets	$	936,997	$	922,908	$	868,606	$	831,384	$	819,757
Loans		734,799		688,793		645,661		642,969		623,356
Deposits		790,682		786,351		732,318		697,805		688,641
Equity		58,015		57,983		55,976		54,449		54,055
Net Income		2,007		1,925		1,787		1,719		1,665
Net Income Per Share*		0.35		0.34		0.31		0.30		0.29
Dividends Declared Per Share*		0.0775		0.075		0.0725		0.07		0.068

* 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	2Q2004		1Q2004		4Q2003		3Q2003		2Q2003
Return on Assets	0.87	%	0.87	%	0.84	%	0.83	%	0.83	%
Return on Equity*	13.80	%	13.61	%	12.92	%	12.75	%	12.65	%
Equity/Assets	6.19	%	6.28	%	6.45	%	6.55	%	6.60	%
Net Interest Margin	3.82	%	3.82	%	3.76	%	3.70	%	3.59	%

* Excludes FASB 115 Accounting Effect

Consolidated Balance Sheets Colony Bankcorp, Inc.

(in thousands)

	June 30, 2004			June 30, 2003
	(unaudited)			(unaudited)
ASSETS
Cash and Balances Due from Depository Institutions	$	18,537		$	21,480
Interest-Bearing Deposits		4,846			15,437
Federal Funds Sold		18,306			23,811
Investment Securities
Available for Sale, at Fair Value		110,545			92,281
Held for Maturity, at Cost (Fair Value of $87 and $87, Respectively)		87			87
		110,632			92,368
Federal Home Loan Bank Stock, at Cost		3,330			2,925
Loans Held for Sale		2,469			7,618
Loans		744,513			631,360
Allowance for Loan Losses		(9,677	)		(7,963	)
Unearned Interest and Fees		(37	)		(41	)
		734,799			623,356
Premises and Equipment		21,655			17,501
Other Real Estate		3,427			1,704
Goodwill		2,412			448
Intangible Assets		711			321
Other Assets		15,873			12,788
Total Assets	$	936,997		$	819,757
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits
Noninterest-Bearing	$	60,668		$	51,924
Interest-Bearing		730,014			636,717
		790,682			688,641
Borrowed Money
Subordinated Debentures		19,074			14,434
Federal Funds Purchased		610			0
Other Borrowed Money		64,565			58,308
		84,249			72,742
Other Liabilities		4,051			4,319
Stockholders’ Equity
Common Stock, Par Value $1, Authorized 20,000,000 Shares, Issued 5,738,343 and 4,583,082 Shares as of June 30, 2004 and June 30, 2003, Respectively		5,738			4,583
Paid in Capital		23,713			23,506
Retained Earnings		29,915			25,319
Restricted Stock- Unearned Compensation		(288	)		(185	)
Accumulated Other Comprehensive Income, Net of Taxes		(1,063	)		832
		58,015			54,055
Total Liabilities and Stockholders’ Equity	$	936,997		$	819,757

Consolidated Statements of Income Colony Bankcorp, Inc.

(in thousands except per share data)

	Quarter Three Months Ended				Year-to-Date Three Months Ended
	06/30/04		06/30/03		06/30/04		06/30/03
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Interest Income
Loans, including fees	$	11,537	$	10,765	$	22,507	$	21,220
Federal Funds Sold		54		98		138		221
Deposits with Other Banks		20		46		46		80
Investment Securities
U.S. Treasury & Federal Agencies		805		432		1,649		1,007
State, County and Municipal		80		80		166		163
Other Investments		84		119		168		236
Dividends on Other Investments		26		31		52		67
		12,606		11,571		24,726		22,994
Interest Expense
Deposits		3,537		4,043		6,969		8,322
Federal Funds Purchased		3		1		3		1
Borrowed Money		599		578		1,218		1,088
Subordinated Debentures		172		174		341		350
		4,311		4,796		8,531		9,761
Net Interest Income		8,295		6,775		16,195		13,233
Provision for Loan Losses		865		823		1,845		1,472
Net Interest Income After Provisions for Loan Losses		7,430		5,952		14,350		11,761
Noninterest Income
Service Charges on Deposits		1,077		911		2,070		1,767
Other Service Charges, Commissions & Fees		234		229		508		506
Security Gains, net		0		0		0		0
Other Income		261		623		515		1,060
		1,572		1,763		3,093		3,333
Noninterest Expense
Salaries and Employee Benefits		3,225		2,830		6,244		5,575
Occupancy and Equipment		869		791		1,666		1,553
Other Operating Expenses		1,855		1,565		3,535		2,956
		5,949		5,186		11,445		10,084
Income Before Income Taxes		3,053		2,529		5,998		5,010
Income Taxes		1,046		864		2,066		1,700
Net Income	$	2,007	$	1,665	$	3,932	$	3,310
Net Income Per Share of Common Stock
Basic	$	0.35	$	0.29	$	0.69	$	0.58
Diluted	$	0.35	$	0.29	$	0.69	$	0.58
Weighted Average Basic Shares Outstanding		5,707,843		5,701,552		5,701,785		5,701,652
Weighted Average Diluted Shares Outstanding		5,725,022		5,716,409		5,719,551		5,715,937

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.