Exhibit 99.1
NEWS RELEASE
FOR IMMEDIATE RELEASE
Date: | January 20, 2006 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 20, 2006 — Colony Bankcorp, Inc. (Nasdaq: CBAN), today reported record quarterly net income of $2,305,000 for the fourth quarter of 2005, up 10.82 percent from fourth quarter 2004 net income of $2,080,000. Diluted earnings per share for the fourth quarter of 2005 was $0.32 per share compared to $0.29 per share for the same year ago period or an increase of 10.34 percent. Annualized return on assets for the quarter was 0.84 percent and return on equity excluding FASB 115 accounting effect was 13.40 percent, compared to 0.84 percent and 13.47 percent for the same year ago period, respectively. Net interest margin was up slightly from 3.79 percent for fourth quarter 2005 compared to 3.77 percent for fourth quarter 2004.
Net income of $8,977,000 for calendar year 2005 also resulted in record earnings, up 11.25 percent from 2004 net income of $8,069,000. Diluted earnings per share for 2005 was $1.25 per share compared to $1.13 per share for the same year ago period or an increase of 10.62 percent. Annualized return on assets for 2005 was 0.87 percent and return on equity excluding FASB 115 accounting effect was 13.59 percent, compared to 0.86 percent and 13.64 percent for the same year ago period, respectively. Net interest margin remained flat at 3.81 percent for both YTD periods.
Total assets increased 11.05 percent to $1,107,791,000 on December 31, 2005 from $997,591,000 a year ago. Net loans increased 10.33 percent to $848,053,000 on December 31, 2005 from $768,632,000 a year ago. Total deposits increased 11.06 percent to $944,364,000 on December 31, 2005 from $850,329,000 a year ago. Shareholders’ equity on December 31, 2005 was $68,128,000 and equaled 6.15 percent of total assets.
The ratio of non-performing assets to loans and other real estate on December 31, 2005 was 1.25 percent as compared to 1.27 percent on December 31, 2004. The fourth quarter 2005 provisions for loan losses were $742,000 compared to $760,000 for the same period in 2004, while year to date provisions for loan losses were $3,444,000 and $3,469,000 for 2005 and 2004, respectively. Net charge-offs for the quarter were 0.08 percent of average loans, down from 0.11 percent for the fourth quarter of 2004 and net charge-offs for 2005 were 0.33 percent, up from 0.27 percent for the same period a year ago. The loan loss reserve of $10,762,000 on December 31, 2005 was 1.25 percent of total loans, which provided coverage of 125.21 percent of non-performing loans and 99.97 percent of non-performing assets, compared to 113.66 percent and 100.76 percent on December 31, 2004, respectively.
During the quarter the board of directors increased the quarterly cash dividend to $0.075 per share compared to $0.072 per share in the third quarter of 2005 and to the cash dividend of $0.066 split-adjusted per share in the fourth quarter of 2004. The fourth quarter dividend payment represents an increase of 13.64 percent over the dividend payment in fourth quarter 2004.
In December, the company announced the election of Al D. Ross as President and Chief Executive Officer to replace retiring Chief Executive Officer James D. Minix. Mr. Ross joined the wholly owned subsidiary Colony Bank Southeast in 1998. He has served as CEO of Colony Bank Southeast, Chairman of Georgia
First Mortgage Company, Chief Credit Officer of Colony Bankcorp and was elected President and Chief Operating Officer of Colony Bankcorp in December 2004. The retirement of Mr. Minix caps a forty-five year banking career. During his tenure as CEO of Colony, total assets increased from $247 million in June of 1994 to $1.108 billion on December 31, 2005. The entire Board of Directors wishes Dan many quality years of well deserved retirement.
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-eight offices located in the Central and South 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 | ||||||||||||
EARNINGS SUMMARY | 12/31/05 | 12/31/04 | 12/31/05 | 12/31/04 | |||||||||
Net Interest Income | $ | 9,791 | $ | 8,771 | $ | 37,154 | $ | 33,547 | |||||
Provision for Loan Losses | 742 | 760 | 3,444 | 3,469 | |||||||||
Non-interest Income | 1,577 | 1,653 | 6,385 | 6,424 | |||||||||
Non-interest Expense | 7,068 | 6,507 | 26,309 | 24,271 | (3) | ||||||||
Income Taxes | 1,253 | 1,077 | 4,809 | 4,162 | |||||||||
Net Income | 2,305 | 2,080 | 8,977 | 8,069 | |||||||||
Operating Income | 2,305 | 2,080 | 8,977 | 8,089 |
COLONY BANKCORP, INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
QUARTER ENDED | YEAR-TO-DATE | |||||||||||||||
PER SHARE SUMMARY (2) | 12/31/05 | 12/31/04 | 12/31/05 | 12/31/04 | ||||||||||||
Common Shares Outstanding | 7,181,320 | 7,172,928 | 7,181,320 | 7,172,928 | ||||||||||||
Weighted Average Diluted Shares | 7,169,269 | 7,164,169 | 7,171,688 | 7,157,633 | ||||||||||||
Net Income Per Weighted Average Diluted Shares | $ | 0.32 | $ | 0.29 | $ | 1.25 | $ | 1.13 | ||||||||
Operating Income Per Weighted Average Diluted Shares | $ | 0.32 | $ | 0.29 | $ | 1.25 | $ | 1.13 | ||||||||
Dividends Declared Per Share | $ | 0.075 | $ | 0.066 | $ | 0.285 | $ | 0.252 | ||||||||
QUARTER ENDED | YEAR-TO-DATE | |||||||||||||||
OPERATING RATIOS (1) | 12/31/05 | 12/31/04 | 12/31/05 | 12/31/04 | ||||||||||||
Net Interest Margin (a) | 3.79 | % | 3.77 | % | 3.81 | % | 3.81 | % | ||||||||
Return on Average Assets Based on Net Income | 0.84 | % | 0.84 | % | 0.87 | % | 0.86 | % | ||||||||
Return on Average Assets Based on Operating Income | 0.84 | % | 0.84 | % | 0.87 | % | 0.86 | % | ||||||||
Return on Average Equity Based on Net Income(b) | 13.40 | % | 13.47 | % | 13.59 | % | 13.64 | % | ||||||||
Return on Average Equity Based on Operating Income(b) | 13.40 | % | 13.47 | % | 13.59 | % | 13.68 | % | ||||||||
Efficiency (c) | 61.86 | % | 62.08 | % | 60.11 | % | 60.25 | % |
QUARTER ENDED | ||||||||
ENDING BALANCES (2) | 12/31/05 | 12/31/04 | ||||||
Total Assets | $ | 1,107,791 | $ | 997,591 | ||||
Loans Held for Sale | 0 | 1,190 | ||||||
Loans, Net of Reserves | 848,053 | 768,632 | ||||||
Allowance for Loan Losses | 10,762 | 10,012 | ||||||
Intangible Assets | 2,932 | 3,047 | ||||||
Deposits | 944,364 | 850,329 | ||||||
Stockholders’ Equity | 68,128 | 61,763 | ||||||
Book Value Per Share | $ | 9.49 | $ | 8.61 | ||||
Tangible Book Value Per Share | $ | 9.08 | $ | 8.19 | ||||
Shareholders’ Equity to Total Assets | 6.15 | % | 6.19 | % |
(1) | Annualized. |
(2) | All Per Share Data has been adjusted to reflect 5-for-4 stock split effective May 16, 2005. |
(3) | Includes loss on sale of securities of ($31) YTD 2004. |
(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 | |||||||||||||||
AVERAGE BALANCES | 12/31/05 | 12/31/04 | 12/31/05 | 12/31/04 | ||||||||||||
Total Assets | $ | 1,097,134 | $ | 990,246 | $ | 1,034,777 | $ | 938,283 | ||||||||
Loans, Net of Reserves | 841,488 | 768,862 | 809,166 | 723,182 | ||||||||||||
Deposits | 934,709 | 842,643 | 878,109 | 795,505 | ||||||||||||
Stockholders’ Equity | 67,590 | 61,447 | 65,146 | 59,038 | ||||||||||||
QUARTER ENDED | YEAR-TO-DATE | |||||||||||||||
ASSET QUALITY | 12/31/05 | 12/31/04 | 12/31/05 | 12/31/04 | ||||||||||||
Nonperforming Loans | $ | 8,595 | $ | 8,809 | $ | 8,595 | $ | 8,809 | ||||||||
Nonperforming Assets | 10,765 | 9,936 | 10,765 | 9,936 | ||||||||||||
Net Loan Chg-offs (Recoveries) | 643 | 862 | 2,694 | 1,973 | ||||||||||||
Reserve for Loan Loss to Gross Loans | 1.25 | % | 1.29 | % | 1.25 | % | 1.29 | % | ||||||||
Reserve for Loan Loss to Non-performing Loans | 125.21 | % | 113.66 | % | 125.21 | % | 113.66 | % | ||||||||
Reserve for Loan Loss to Non-performing Assets | 99.97 | % | 100.76 | % | 99.97 | % | 100.76 | % | ||||||||
Net Loan Chg-offs (Recoveries) to Avg. Gross Loans | 0.08 | % | 0.11 | % | 0.33 | % | 0.27 | % | ||||||||
Nonperforming Loans to Gross Loans | 1.00 | % | 1.13 | % | 1.00 | % | 1.13 | % | ||||||||
Nonperforming Assets to Total Assets | 0.97 | % | 1.00 | % | 0.97 | % | 1.00 | % | ||||||||
Nonperforming Assets to Loans and Other Real Estate | 1.25 | % | 1.27 | % | 1.25 | % | 1.27 | % |
Quarterly Comparative Data (in thousands, except per share data)
4Q2005 | 3Q2005 | 2Q2005 | 1Q2005 | 4Q2004 | ||||||||||||||||
Assets | $ | 1,107,791 | $ | 1,063,211 | $ | 1,018,095 | $ | 995,826 | $ | 997,591 | ||||||||||
Loans | 848,053 | 831,493 | 817,687 | 788,232 | 768,632 | |||||||||||||||
Deposits | 944,364 | 900,731 | 859,390 | 845,753 | 850,329 | |||||||||||||||
Equity | 68,128 | 66,893 | 65,257 | 62,784 | 61,763 | |||||||||||||||
Net Income | 2,305 | 2,251 | 2,247 | 2,174 | 2,080 | |||||||||||||||
Net Income Per Share (2) | 0.32 | 0.31 | 0.31 | 0.30 | 0.29 | |||||||||||||||
Dividends Declared Per Share (2) | 0.075 | 0.072 | 0.07 | 0.068 | 0.066 | |||||||||||||||
Key Performance Ratios | 4Q2005 | 3Q2005 | 2Q2005 | 1Q2005 | 4Q2004 | |||||||||||||||
Return on Assets | 0.84 | % | 0.87 | % | 0.89 | % | 0.87 | % | 0.84 | % | ||||||||||
Return on Equity* | 13.40 | % | 13.43 | % | 13.77 | % | 13.76 | % | 13.47 | % | ||||||||||
Equity/Assets | 6.15 | % | 6.29 | % | 6.41 | % | 6.30 | % | 6.19 | % | ||||||||||
Net Interest Margin | 3.79 | % | 3.82 | % | 3.88 | % | 3.77 | % | 3.77 | % |
* | Excludes FASB 115 Accounting Effect |
(2) | All per share data has been adjusted to reflect 5-for-4 stock split effective May 16, 2005. |
Consolidated Balance Sheets Colony Bankcorp, Inc.
(in thousands)
Dec. 31, 2005 | Dec. 31, 2004 | |||||||
(unaudited) | (audited) | |||||||
ASSETS | ||||||||
Cash and Cash Equivalents | ||||||||
Cash and Due from Banks | $ | 21,606 | $ | 20,950 | ||||
Federal Funds Sold | 57,456 | 43,997 | ||||||
79,062 | 64,947 | |||||||
Interest-Bearing Deposits | 1,635 | 3,229 | ||||||
Investment Securities | ||||||||
Available for Sale, at Fair Value | 124,246 | 112,512 | ||||||
Held for Maturity, at Cost (Fair Value of $79 and $81, Respectively) | 79 | 81 | ||||||
124,325 | 112,593 | |||||||
Federal Home Loan Bank Stock, at Cost | 5,034 | 4,479 | ||||||
Loans Held for Sale | 0 | 1,190 | ||||||
Loans | 859,117 | 778,680 | ||||||
Allowance for Loan Losses | (10,762 | ) | (10,012 | ) | ||||
Unearned Interest and Fees | (302 | ) | (36 | ) | ||||
848,053 | 768,632 | |||||||
Premises and Equipment | 25,676 | 21,824 | ||||||
Other Real Estate | 2,170 | 1,127 | ||||||
Goodwill | 2,412 | 2,412 | ||||||
Intangible Assets | 520 | 635 | ||||||
Other Assets | 18,904 | 16,523 | ||||||
Total Assets | $ | 1,107,791 | $ | 997,591 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Deposits | ||||||||
Noninterest-Bearing | $ | 78,778 | $ | 68,169 | ||||
Interest-Bearing | 865,586 | 782,160 | ||||||
944,364 | 850,329 | |||||||
Borrowed Money | ||||||||
Subordinated Debentures | 19,074 | 19,074 | ||||||
Other Borrowed Money | 70,226 | 61,450 | ||||||
89,300 | 80,524 | |||||||
Other Liabilities | 5,999 | 4,975 | ||||||
Stockholders’ Equity | ||||||||
Common Stock, Par Value $1, Authorized 20,000,000 Shares, Issued 7,181,320 and 5,738,343 Shares as of December 31, 2005 and December 31, 2004, Respectively | 7,181 | 5,738 | ||||||
Paid in Capital | 24,000 | 23,713 | ||||||
Retained Earnings | 38,602 | 33,119 | ||||||
Restricted Stock- Unearned Compensation | (302 | ) | (210 | ) | ||||
Accumulated Other Comprehensive Income, Net of Taxes | (1,353 | ) | (597 | ) | ||||
68,128 | 61,763 | |||||||
Total Liabilities and Stockholders’ Equity | $ | 1,107,791 | $ | 997,591 | ||||
Consolidated Statements of Income Colony Bankcorp, Inc.
(in thousands except per share data)
Quarter Three Months Ended | Year-to-Date Twelve Months Ended | |||||||||||
12/31/05 | 12/31/04 | 12/31/05 | 12/31/04 | |||||||||
(unaudited) | (unaudited) | (unaudited) | (audited) | |||||||||
Interest Income | ||||||||||||
Loans, including fees | $ | 16,130 | $ | 12,740 | $ | 58,309 | $ | 47,503 | ||||
Federal Funds Sold | 597 | 192 | 1,266 | 419 | ||||||||
Deposits with Other Banks | 29 | 16 | 86 | 75 | ||||||||
Investment Securities | ||||||||||||
U.S. Treasury & Federal Agencies | 993 | 847 | 3,413 | 3,288 | ||||||||
State, County and Municipal | 63 | 55 | 241 | 284 | ||||||||
Corporate Obligations/ Other Investments | 40 | 30 | 142 | 252 | ||||||||
Dividends on Other Investments | 41 | 22 | 177 | 109 | ||||||||
17,893 | 13,902 | 63,634 | 51,930 | |||||||||
Interest Expense | ||||||||||||
Deposits | 7,059 | 4,301 | 22,590 | 15,174 | ||||||||
Federal Funds Purchased | 1 | 1 | 16 | 5 | ||||||||
Borrowed Money | 691 | 573 | 2,605 | 2,366 | ||||||||
Subordinated Debentures | 351 | 256 | 1,269 | 838 | ||||||||
8,102 | 5,131 | 26,480 | 18,383 | |||||||||
Net Interest Income | 9,791 | 8,771 | 37,154 | 33,547 | ||||||||
Provision for Loan Losses | 742 | 760 | 3,444 | 3,469 | ||||||||
Net Interest Income After Provisions for Loan Losses | 9,049 | 8,011 | 33,710 | 30,078 | ||||||||
Noninterest Income | ||||||||||||
Service Charges on Deposits | 1,071 | 1,063 | 4,128 | 4,233 | ||||||||
Other Service Charges, Commissions, Fees | 169 | 135 | 708 | 548 | ||||||||
Mortgage Banking Income | 174 | 161 | 727 | 984 | ||||||||
Other Income | 163 | 294 | 822 | 659 | ||||||||
1,577 | 1,653 | 6,385 | 6,424 | |||||||||
Noninterest Expense | ||||||||||||
Salaries and Employee Benefits | 3,674 | 3,161 | 14,128 | 12,594 | ||||||||
Occupancy and Equipment | 959 | 925 | 3,778 | 3,531 | ||||||||
Security Losses, net | 0 | 0 | 0 | 31 | ||||||||
Other Operating Expenses | 2,435 | 2,421 | 8,403 | 8,115 | ||||||||
7,068 | 6,507 | 26,309 | 24,271 | |||||||||
Income Before Income Taxes | 3,558 | 3,157 | 13,786 | 12,231 | ||||||||
Income Taxes | 1,253 | 1,077 | 4,809 | 4,162 | ||||||||
Net Income | $ | 2,305 | $ | 2,080 | $ | 8,977 | $ | 8,069 | ||||
Net Income Per Share of Common Stock | ||||||||||||
Basic | $ | 0.32 | $ | 0.29 | $ | 1.26 | $ | 1.13 | ||||
Diluted | $ | 0.32 | $ | 0.29 | $ | 1.25 | $ | 1.13 | ||||
Weighted Average Basic Shares Outstanding | 7,143,741 | 7,134,804 | 7,143,741 | 7,131,028 | ||||||||
Weighted Average Diluted Shares Outstanding | 7,169,269 | 7,164,169 | 7,171,688 | 7,157,633 | ||||||||
Per Share Data has been adjusted to reflect 5-for-4 stock split effective May 16, 2005.