EXHIBIT 99.1
NEWS RELEASE
FOR IMMEDIATE RELEASE
Date: | January 14, 2005 8:00 A.M. (ET) | |
Contact: | Terry L. Hester | |
Chief Financial Officer | ||
(229) 426-6002 |
Colony Bankcorp, Inc. Announces Fourth Quarter Results
FITZGERALD, GA., January 14, 2005 — Colony Bankcorp, Inc. (Nasdaq: CBAN), today reported record net income of $8,069,000 for calendar year 2004, up 18.4% from 2003 net income of $6,816,000. Diluted earnings per share for 2004 was $1.41 per share compared to $1.19 per share for the same year ago period or an increase of 18.5%. Annualized return on assets for 2004 was 0.86% and return on equity excluding FASB 115 accounting effect was 13.64%, compared to 0.83% and 12.79% for the same year ago period, respectively. Net interest margin improved to 3.81% for 2004 compared to 3.65% for the same year ago period.
Net income for the three months ended December 31, 2004 was $2,080,000 or $0.36 per share as compared to $1,787,000 or $0.31 per share for the same period a year ago. Diluted earnings per share reflect an increase of 16.13% from a year ago. Annualized return on assets for the three months ended December 31, 2004 was 0.84% and return on equity excluding FASB 115 accounting effect was 13.47%, compared to 0.84% and 12.92% for the three months ended December 31, 2003, respectively.
Asset growth continued to be good as Colony surpassed $997 million in total assets during the quarter. Total assets increased 14.81% to $997,286,000 on December 31, 2004 from $868,606,000 a year ago. Net loans increased 19.05% to $768,632,000 on December 31, 2004 from $645,661,000 a year ago. Total deposits increased 16.11% to $850,325,000 on December 31, 2004 from $732,318,000 a year ago. Shareholders’ equity on December 31, 2004 was $61,763,000 and equaled 6.19% of total assets.
The ratio of non-performing assets to loans and other real estate on December 31, 2004 was 1.27% as compared to 1.55% on December 31, 2003. During the quarter the company reduced other real estate by $2.013 million, primarily on the sale of a real estate development that the company had foreclosed on during third quarter 2003. Though the company realized a loss of approximately $372 thousand on the sale, due to current market conditions it was deemed prudent by company management to dispose of the property as this had been a non-performing asset for approximately three years. The fourth quarter provisions for loan losses were $760,000 compared to $1,133,000 for the same period in 2003, while year to date provisions for loan losses were $3,469,000 and $4,060,000 for 2004 and 2003, respectively. Net charge-offs for the quarter were 0.11% of average loans, up from 0.06% for the fourth quarter of 2003 and net charge-offs for 2004 were 0.27%, down from 0.47% for the same period a year ago. The loan loss reserve on December 31, 2004 was 1.29% of total loans, which provided coverage of 113.66% of non-performing loans and 100.76% of non-performing assets, compared to 113.99% and 83.53% on December 31, 2003, respectively.
During the quarter the board of directors increased the quarterly cash dividend to $0.0825 per share compared to $0.08 per share in the third quarter of 2004 and to the cash dividend of $0.0725 per share in the fourth quarter of 2003. The fourth quarter dividend payment represents an increase of 13.79% over the dividend payment in fourth quarter 2003.
Also during the quarter, the board of directors named Al D. Ross President and Chief Operating Officer. The position of Chief Operating Officer is a new position. Mr. Ross has been the Chief Credit Officer during the last three years and will retain that responsibility along with being President and CEO of Colony Bank Southeast and Chairman of Georgia First Mortgage Company.
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-seven offices located in the Central, South, West and Coastal Georgia cities of Fitzgerald, Warner Robins, Ashburn, Leesburg, Cordele, Albany, Thomaston, Columbus, 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
QUARTER ENDED | YEAR-TO-DATE | |||||||||||||
12/31/04 | 12/31/03 | 12/31/04 | 12/31/03 | |||||||||||
EARNINGS SUMMARY | ||||||||||||||
Net Interest Income | $ | 8,779 | $ | 7,562 | $ | 33,547 | $ | 28,036 | ||||||
Provision for Loan Losses | 760 | 1,133 | 3,469 | 4,060 | ||||||||||
Non-interest Income | 1,644 | 1,623 | 6,393 | (2) | 7,096 | (2) | ||||||||
Non-interest Expense | 6,506 | 5,416 | 24,240 | 20,864 | ||||||||||
Income Taxes | 1,077 | 849 | 4,162 | 3,392 | ||||||||||
Net Income | 2,080 | 1,787 | 8,069 | 6,816 | ||||||||||
Operating Income | 2,080 | 1,787 | 8,089 | 6,572 |
QUARTER ENDED | YEAR-TO-DATE | |||||||||||||||
12/31/04 | 12/31/03 | 12/31/04 | 12/31/03 | |||||||||||||
PER SHARE SUMMARY | ||||||||||||||||
Common Shares Outstanding | 5,738,343 | 5,727,968 | 5,738,343 | 5,727,968 | ||||||||||||
Weighted Average Diluted Shares | 5,731,335 | 5,731,600 | 5,726,106 | 5,721,070 | ||||||||||||
Net Income Per Weighted Average Diluted Shares | $ | 0.36 | $ | 0.31 | $ | 1.41 | $ | 1.19 | ||||||||
Operating Income Per Weighted Average Diluted Shares | $ | 0.36 | $ | 0.31 | $ | 1.41 | $ | 1.15 | ||||||||
Dividends Declared Per Share | $ | 0.0825 | $ | 0.0725 | $ | 0.315 | $ | 0.2705 | ||||||||
QUARTER ENDED | YEAR-TO-DATE | |||||||||||||||
12/31/04 | 12/31/03 | 12/31/04 | 12/31/03 | |||||||||||||
OPERATING RATIOS (1) | ||||||||||||||||
Net Interest Margin (a) | 3.77 | % | 3.76 | % | 3.81 | % | 3.65 | % | ||||||||
Return on Average Assets Based on Net Income | 0.84 | % | 0.84 | % | 0.86 | % | 0.83 | % | ||||||||
Return on Average Assets Based on Operating Income | 0.84 | % | 0.84 | % | 0.86 | % | 0.80 | % | ||||||||
Return on Average Equity Based on Net Income(b) | 13.47 | % | 12.92 | % | 13.64 | % | 12.79 | % | ||||||||
Return on Average Equity Based on Operating Income(b) | 13.47 | % | 12.92 | % | 13.68 | % | 12.33 | % | ||||||||
Efficiency (c) | 62.08 | % | 58.56 | % | 60.25 | % | 59.57 | % |
QUARTER ENDED | ||||||||
12/31/04 | 12/31/03 | |||||||
ENDING BALANCES | ||||||||
Total Assets | $ | 997,286 | $ | 868,606 | ||||
Loans Held for Sale | 1,191 | 1,677 | ||||||
Loans, Net of Reserves | 768,632 | 645,661 | ||||||
Allowance for Loan Losses | 10,012 | 8,516 | ||||||
Intangible Assets | 3,047 | 691 | ||||||
Deposits | 850,325 | 732,318 | ||||||
Stockholders’ Equity | 61,763 | 55,976 | ||||||
Book Value Per Share | $ | 10.76 | $ | 9.77 | ||||
Tangible Book Value Per Share | $ | 10.23 | $ | 9.65 | ||||
Shareholders’ Equity to Total Assets | 6.19 | % | 6.44 | % |
(1) | Annualized. |
(2) | Includes gain(loss) on sale of securities of ($31) for YTD 2004 and $369 for YTD 2003. |
(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. |
COLONY BANKCORP, INC
FINANCIAL HIGHLIGHTS (UNAUDITED)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
QUARTER ENDED | YEAR-TO-DATE | |||||||||||||||
12/31/04 | 12/31/03 | 12/31/04 | 12/31/03 | |||||||||||||
AVERAGE BALANCES | ||||||||||||||||
Total Assets | $ | 990,246 | $ | 851,796 | $ | 938,283 | $ | 816,666 | ||||||||
Loans, Net of Reserves | 768,862 | 645,752 | 723,182 | 622,223 | ||||||||||||
Deposits | 842,643 | 717,717 | 795,505 | 688,624 | ||||||||||||
Stockholders’ Equity | 61,447 | 55,310 | 59,038 | 53,843 | ||||||||||||
QUARTER ENDED | YEAR-TO-DATE | |||||||||||||||
12/31/04 | 12/31/03 | 12/31/04 | 12/31/03 | |||||||||||||
ASSET QUALITY | ||||||||||||||||
Nonperforming Loans | $ | 8,809 | $ | 7,471 | $ | 8,809 | $ | 7,471 | ||||||||
Nonperforming Assets | 9,936 | 10,195 | 9,936 | 10,195 | ||||||||||||
Net Loan Chg-offs (Recoveries) | 862 | 366 | 1,973 | 2,908 | ||||||||||||
Reserve for Loan Loss to Gross Loans | 1.29 | % | 1.30 | % | 1.29 | % | 1.30 | % | ||||||||
Reserve for Loan Loss to Non-performing Loans | 113.66 | % | 113.99 | % | 113.66 | % | 113.99 | % | ||||||||
Reserve for Loan Loss to Non-performing Assets | 100.76 | % | 83.53 | % | 100.76 | % | 83.53 | % | ||||||||
Net Loan Chg-offs (Recoveries) to Avg. Gross Loans | 0.11 | % | 0.06 | % | 0.27 | % | 0.47 | % | ||||||||
Nonperforming Loans to Gross Loans | 1.13 | % | 1.14 | % | 1.13 | % | 1.14 | % | ||||||||
Nonperforming Assets to Total Assets | 1.00 | % | 1.17 | % | 1.00 | % | 1.17 | % | ||||||||
Nonperforming Assets to Loans and Other Real Estate | 1.27 | % | 1.55 | % | 1.27 | % | 1.55 | % |
Quarterly Comparative Data (in thousands, except per share data)
4Q2004 | 3Q2004 | 2Q2004 | 1Q2004 | 4Q2003 | ||||||||||||||||
Assets | $ | 997,286 | $ | 971,278 | $ | 936,997 | $ | 922,908 | $ | 868,606 | ||||||||||
Loans | 768,632 | 767,214 | 734,799 | 688,793 | 645,661 | |||||||||||||||
Deposits | 850,325 | 824,509 | 790,682 | 786,351 | 732,318 | |||||||||||||||
Equity | 61,763 | 60,528 | 58,015 | 57,983 | 55,976 | |||||||||||||||
Net Income | 2,080 | 2,057 | 2,007 | 1,925 | 1,787 | |||||||||||||||
Net Income Per Share | 0.36 | 0.36 | 0.35 | 0.34 | 0.31 | |||||||||||||||
Dividends Declared Per Share | 0.0825 | 0.08 | 0.0775 | 0.075 | 0.0725 | |||||||||||||||
4Q2004 | 3Q2004 | 2Q2004 | 1Q2004 | 4Q2003 | ||||||||||||||||
Key Performance Ratios | ||||||||||||||||||||
Return on Assets | 0.84 | % | 0.86 | % | 0.87 | % | 0.87 | % | 0.84 | % | ||||||||||
Return on Equity* | 13.47 | % | 13.71 | % | 13.80 | % | 13.61 | % | 12.92 | % | ||||||||||
Equity/Assets | 6.19 | % | 6.23 | % | 6.19 | % | 6.28 | % | 6.44 | % | ||||||||||
Net Interest Margin | 3.77 | % | 3.82 | % | 3.82 | % | 3.82 | % | 3.76 | % |
* | Excludes FASB 115 Accounting Effect |
Consolidated Balance Sheets Colony Bankcorp, Inc.
(in thousands)
December 31, 2004 | December 31, 2003 | |||||||
(unaudited) | (audited) | |||||||
ASSETS | ||||||||
Cash and Balances Due from Depository Institutions | $ | 20,952 | $ | 22,356 | ||||
Interest-Bearing Deposits | 3,229 | 11,615 | ||||||
Federal Funds Sold | 43,995 | 37,368 | ||||||
Investment Securities | ||||||||
Available for Sale, at Fair Value | 112,512 | 110,328 | ||||||
Held for Maturity, at Cost (Fair Value of $89 and $88, Respectively) | 81 | 80 | ||||||
112,593 | 110,408 | |||||||
Federal Home Loan Bank Stock, at Cost | 4,479 | 3,000 | ||||||
Loans Held for Sale | 1,191 | 1,677 | ||||||
Loans | 778,681 | 654,210 | ||||||
Allowance for Loan Losses | (10,012 | ) | (8,516 | ) | ||||
Unearned Interest and Fees | (37 | ) | (33 | ) | ||||
768,632 | 645,661 | |||||||
Premises and Equipment | 21,824 | 17,571 | ||||||
Other Real Estate | 1,126 | 2,724 | ||||||
Goodwill | 2,412 | 448 | ||||||
Intangible Assets | 635 | 243 | ||||||
Other Assets | 16,218 | 15,535 | ||||||
Total Assets | $ | 997,286 | $ | 868,606 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Deposits | ||||||||
Noninterest-Bearing | $ | 68,168 | $ | 64,043 | ||||
Interest-Bearing | 782,157 | 668,275 | ||||||
850,325 | 732,318 | |||||||
Borrowed Money | ||||||||
Subordinated Debentures | 19,074 | 14,434 | ||||||
Federal Funds Purchased | 0 | 0 | ||||||
Other Borrowed Money | 61,450 | 61,184 | ||||||
80,524 | 75,618 | |||||||
Other Liabilities | 4,674 | 4,694 | ||||||
Stockholders’ Equity | ||||||||
Common Stock, Par Value $1, Authorized 20,000,000 Shares, Issued 5,738,343 and 5,727,968 Shares as of December 31, 2004 and December 31, 2003, Respectively | 5,738 | 5,728 | ||||||
Paid in Capital | 23,713 | 23,499 | ||||||
Retained Earnings | 33,119 | 26,857 | ||||||
Restricted Stock- Unearned Compensation | (210 | ) | (130 | ) | ||||
Accumulated Other Comprehensive Income, Net of Taxes | (597 | ) | 22 | |||||
61,763 | 55,976 | |||||||
Total Liabilities and Stockholders’ Equity | $ | 997,286 | $ | 868,606 | ||||
Consolidated Statements of Income Colony Bankcorp, Inc.
(in thousands except per share data)
Quarter Three Months Ended | Year-to-Date Twelve Months Ended | ||||||||||||
12/31/04 | 12/31/03 | 12/31/04 | 12/31/03 | ||||||||||
(unaudited) | (unaudited) | (unaudited) | (audited) | ||||||||||
Interest Income | |||||||||||||
Loans, including fees | $ | 12,740 | $ | 10,748 | $ | 47,503 | $ | 42,794 | |||||
Federal Funds Sold | 192 | 85 | 419 | 359 | |||||||||
Deposits with Other Banks | 16 | 32 | 75 | 152 | |||||||||
Investment Securities | |||||||||||||
U.S. Treasury & Federal Agencies | 847 | 720 | 3,288 | 2,263 | |||||||||
State, County and Municipal | 55 | 65 | 284 | 305 | |||||||||
Other Investments | 30 | 115 | 252 | 455 | |||||||||
Dividends on Other Investments | 30 | 24 | 109 | 123 | |||||||||
13,910 | 11,789 | 51,930 | 46,451 | ||||||||||
Interest Expense | |||||||||||||
Deposits | 4,301 | 3,470 | 15,174 | 15,465 | |||||||||
Federal Funds Purchased | 1 | 0 | 5 | 1 | |||||||||
Borrowed Money | 573 | 586 | 2,366 | 2,263 | |||||||||
Subordinated Debentures | 256 | 171 | 838 | 686 | |||||||||
5,131 | 4,227 | 18,383 | 18,415 | ||||||||||
Net Interest Income | 8,779 | 7,562 | 33,547 | 28,036 | |||||||||
Provision for Loan Losses | 760 | 1,133 | 3,469 | 4,060 | |||||||||
Net Interest Income After Provisions for Loan Losses | 8,019 | 6,429 | 30,078 | 23,976 | |||||||||
Noninterest Income | |||||||||||||
Service Charges on Deposits | 1,063 | 1,043 | 4,233 | 3,821 | |||||||||
Mortgage Banking Income | 161 | 295 | 984 | 1,998 | |||||||||
Security Gains (Losses), net | 0 | 0 | (31 | ) | 369 | ||||||||
Other Income | 420 | 285 | 1,207 | 908 | |||||||||
1,644 | 1,623 | 6,393 | 7,096 | ||||||||||
Noninterest Expense | |||||||||||||
Salaries and Employee Benefits | 3,161 | 2,772 | 12,594 | 11,186 | |||||||||
Occupancy and Equipment | 925 | 788 | 3,531 | 3,189 | |||||||||
Other Operating Expenses | 2,420 | 1,856 | 8,115 | 6,489 | |||||||||
6,506 | 5,416 | 24,240 | 20,864 | ||||||||||
Income Before Income Taxes | 3,157 | 2,636 | 12,231 | 10,208 | |||||||||
Income Taxes | 1,077 | 849 | 4,162 | 3,392 | |||||||||
Net Income | $ | 2,080 | $ | 1,787 | $ | 8,069 | $ | 6,816 | |||||
Net Income Per Share of Common Stock | |||||||||||||
Basic | $ | 0.36 | $ | 0.31 | $ | 1.41 | $ | 1.20 | |||||
Diluted | $ | 0.36 | $ | 0.31 | $ | 1.41 | $ | 1.19 | |||||
Weighted Average Basic Shares Outstanding | 5,707,843 | 5,701,540 | 5,704,822 | 5,701,540 | |||||||||
Weighted Average Diluted Shares Outstanding | 5,731,335 | 5,731,600 | 5,726,106 | 5,721,070 | |||||||||