Exhibit 99.1
NEWS RELEASE
FOR IMMEDIATE RELEASE
| | |
| Date: | | July 21, 2006 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 21, 2006 — Colony Bankcorp, Inc. (Nasdaq: CBAN), today reported record quarterly net income of $2,610,000 for the second quarter of 2006, up 16.15 percent from second quarter 2005 net income of $2,247,000. Diluted earnings per share for the second quarter of 2006 was $0.36 per share compared to $0.31 per share for the same year ago period or an increase of 16.13 percent. Annualized return on assets for the quarter was 0.90 percent and return on equity excluding FASB 115 accounting effect was 14.37 percent, compared to 0.89 percent and 13.77 percent for the same year ago period, respectively. Net interest margin increased to 3.95 percent for second quarter 2006 compared to 3.88 percent for the same year ago period and 3.80 percent for first quarter 2006. Recovery of non-accrual interest on one large agricultural credit positively impacted second quarter 2006 net interest margin by six basis points.
Net income for the six months ended June 30, 2006 was $4,919,000 or $0.69 per share as compared to $4,421,000, or $0.62 per share for the same year ago period. Earnings per share reflect an increase of 11.29 percent from a year ago. Annualized return on assets for the six months ended June 30, 2006 was 0.87 percent and return on equity excluding FASB 115 accounting effect was 13.76 percent, compared to 0.88 percent and 13.77 percent for the six months ended June 30, 2005, respectively.
Total assets increased 14.84 percent to $1,169,161,000 on June 30, 2006 from $1,018,095,000 a year ago. Net loans increased 10.16 percent to $900,781,000 on June 30, 2006 from $817,687,000 a year ago. Total deposits increased 16.95 percent to $1,005,086,000 on June 30, 2006 from $859,390,000 a year ago. Shareholders’ equity on June 30, 2006 was $71,051,000 and equaled 6.08 percent of total assets.
The company’s focus on credit quality resulted in an outstanding quarter as the ratio of non-performing assets to loans and other real estate on June 30, 2006 was 1.00 percent as compared to 1.48 percent on June 30, 2005 and 1.25 percent on December 31, 2005. The second quarter 2006 provision for loan losses were $1,047,000 compared to $1,025,000 for the same period in 2005, while year to date 2006 provision for loan losses were $1,969,000 compared to $1,833,000 for the same year ago period. Net charge-offs for the quarter were 0.02 percent of average loans, down from 0.13 percent for the second quarter of 2005, while net charge-offs for the six months ended June 30, 2006 were 0.12 percent, down from 0.22 percent for the same year ago period. The loan loss reserve of $11,658,000 on June 30, 2006 was 1.28 percent of total loans, which provided coverage of 187.43 percent of non-performing loans and 127.34 percent of non-performing assets, compared to 106.76 percent and 82.44 percent on June 30, 2005, respectively.
During the quarter the board of directors increased the quarterly cash dividend to $0.08 per share compared to $0.0775 per share in the first quarter of 2006 and to the cash dividend of $0.07 per share in the second quarter of 2005. The second quarter dividend payment represents an increase of 14.29 percent over the dividend payment in second quarter 2005.
In June, 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 thirteenth annual list, based on 2005 data, ranked Colony Bankcorp, Inc. 79th on the list and was the seventh 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-nine offices located in the middle 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 | | 06/30/06 | | 06/30/05 | | 06/30/06 | | 06/30/05 |
Net Interest Income | | $ | 10,680 | | $ | 9,245 | | $ | 20,613 | | $ | 18,097 |
Provision for Loan Losses | | | 1,047 | | | 1,025 | | | 1,969 | | | 1,833 |
Non-interest Income | | | 2,018 | | | 1,499 | | | 3,626 | | | 3,101 |
Non-interest Expense | | | 7,599 | | | 6,292 | | | 14,686 | | | 12,576 |
Income Taxes | | | 1,442 | | | 1,180 | | | 2,665 | | | 2,368 |
Net Income | | | 2,610 | | | 2,247 | | | 4,919 | | | 4,421 |
Operating Income | | | 2,610 | | | 2,247 | | | 4,919 | | | 4,421 |
COLONY BANKCORP, INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA
| | | | | | | | | | | | | | | | |
| | | QUARTER ENDED | | | YEAR-TO-DATE | |
PER SHARE SUMMARY (2) | | 06/30/06 | | | 06/30/05 | | | 06/30/06 | | | 06/30/05 | |
Common Shares Outstanding | | | 7,190,535 | | | | 7,181,882 | | | | 7,190,735 | | | | 7,181,882 | |
Weighted Average Diluted Shares | | | 7,177,367 | | | | 7,169,617 | | | | 7,175,018 | | | | 7,170,122 | |
Net Income Per Weighted Average Diluted Shares | | $ | 0.36 | | | $ | 0.31 | | | $ | 0.69 | | | $ | 0.62 | |
Operating Income Per Weighted Average Diluted Shares | | $ | 0.36 | | | $ | 0.31 | | | $ | 0.69 | | | $ | 0.62 | |
Dividends Declared Per Share | | $ | 0.08 | | | $ | 0.07 | | | $ | 0.1575 | | | $ | 0.138 | |
| | |
| | | QUARTER ENDED | | | YEAR-TO-DATE | |
OPERATING RATIOS (1) | | 06/30/06 | | | 06/30/05 | | | 06/30/06 | | | 06/30/05 | |
Net Interest Margin (a) | | | 3.95 | % | | | 3.88 | % | | | 3.87 | % | | | 3.83 | % |
Return on Average Assets Based on Net Income | | | 0.90 | % | | | 0.89 | % | | | 0.87 | % | | | 0.88 | % |
Return on Average Assets Based on Operating Income | | | 0.90 | % | | | 0.89 | % | | | 0.87 | % | | | 0.88 | % |
Return on Average Equity Based on Net Income(b) | | | 14.37 | % | | | 13.77 | % | | | 13.76 | % | | | 13.77 | % |
Return on Average Equity Based on Operating Income(b) | | | 14.37 | % | | | 13.77 | % | | | 13.76 | % | | | 13.77 | % |
Efficiency (c) | | | 59.58 | % | | | 58.25 | % | | | 60.31 | % | | | 59.02 | % |
| | | | | | | | |
| | | QUARTER ENDED | |
ENDING BALANCES (2) | | 06/30/06 | | | 06/30/05 | |
Total Assets | | $ | 1,169,161 | | | $ | 1,018,095 | |
Loans, Net of Reserves | | | 900,781 | | | | 817,687 | |
Allowance for Loan Losses | | | 11,658 | | | | 10,119 | |
Goodwill | | | 2,412 | | | | 2,412 | |
Intangible Assets | | | 469 | | | | 571 | |
Deposits | | | 1,005,086 | | | | 859,390 | |
Stockholders’ Equity | | | 71,051 | | | | 65,257 | |
Book Value Per Share | | $ | 9.88 | | | $ | 9.09 | |
Tangible Book Value Per Share | | $ | 9.48 | | | $ | 8.67 | |
Shareholders’ Equity to Total Assets | | | 6.08 | % | | | 6.41 | % |
| (2) | All Per Share Data has been adjusted to reflect 5-for-4 stock split effective May 16, 2005. |
| (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 | | 06/30/06 | | | 06/30/05 | | | 06/30/06 | | | 06/30/05 | |
Total Assets | | $ | 1,154,272 | | | $ | 1,010,365 | | | $ | 1,133,050 | | | $ | 1,003,924 | |
Loans, Net of Reserves | | | 896,880 | | | | 800,971 | | | | 879,648 | | | | 787,526 | |
Deposits | | | 981,730 | | | | 854,676 | | | | 963,305 | | | | 852,366 | |
Stockholders’ Equity | | | 70,543 | | | | 64,299 | | | | 69,751 | | | | 63,386 | |
| | |
| | | QUARTER ENDED | | | YEAR-TO-DATE | |
ASSET QUALITY | | 06/30/06 | | | 06/30/05 | | | 06/30/06 | | | 06/30/05 | |
Nonperforming Loans | | $ | 6,220 | | | $ | 9,478 | | | $ | 6,220 | | | $ | 9,478 | |
Nonperforming Assets | | | 9,155 | | | | 12,275 | | | | 9,155 | | | | 12,275 | |
Net Loan Chg-offs (Recoveries) | | | 149 | | | | 1,077 | | | | 1,073 | | | | 1,726 | |
Reserve for Loan Loss to Gross Loans | | | 1.28 | % | | | 1.22 | % | | | 1.28 | % | | | 1.22 | % |
Reserve for Loan Loss to Non-performing Loans | | | 187.43 | % | | | 106.76 | % | | | 187.43 | % | | | 106.76 | % |
Reserve for Loan Loss to Non-performing Assets | | | 127.34 | % | | | 82.44 | % | | | 127.34 | % | | | 82.44 | % |
Net Loan Chg-offs (Recoveries) to Avg. Gross Loans | | | 0.02 | % | | | 0.13 | % | | | 0.12 | % | | | 0.22 | % |
Nonperforming Loans to Gross Loans | | | 0.68 | % | | | 1.14 | % | | | 0.68 | % | | | 1.14 | % |
Nonperforming Assets to Total Assets | | | 0.78 | % | | | 1.21 | % | | | 0.78 | % | | | 1.21 | % |
Nonperforming Assets to Loans and Other Real Estate | | | 1.00 | % | | | 1.48 | % | | | 1.00 | % | | | 1.48 | % |
Quarterly Comparative Data (in thousands, except per share data)
| | | | | | | | | | | | | | | | | | | | |
| | | 2Q2006 | | | 1Q2006 | | | 4Q2005 | | | 3Q2005 | | | 2Q2005 | |
Assets | | $ | 1,169,161 | | | $ | 1,145,186 | | | $ | 1,108,338 | | | $ | 1,063,211 | | | $ | 1,018,095 | |
Loans | | | 900,781 | | | | 881,897 | | | | 848,053 | | | | 831,493 | | | | 817,687 | |
Deposits | | | 1,005,086 | | | | 974,672 | | | | 974,672 | | | | 944,365 | | | | 900,731 | |
Equity | | | 71,051 | | | | 69,625 | | | | 68,128 | | | | 66,893 | | | | 65,257 | |
Net Income | | | 2,610 | | | | 2,309 | | | | 2,305 | | | | 2,251 | | | | 2,247 | |
Net Income Per Share (2) | | | 0.36 | | | | 0.32 | | | | 0.32 | | | | 0.31 | | | | 0.31 | |
Dividends Declared Per Share (2) | | | 0.08 | | | | 0.0775 | | | | 0.075 | | | | 0.072 | | | | 0.07 | |
| | | | | |
Key Performance Ratios | | 2Q2006 | | | 1Q2006 | | | 4Q2005 | | | 3Q2005 | | | 2Q2005 | |
Return on Assets | | | 0.90 | % | | | 0.83 | % | | | 0.84 | % | | | 0.87 | % | | | 0.89 | % |
Return on Equity* | | | 14.37 | % | | | 13.12 | % | | | 13.40 | % | | | 13.43 | % | | | 13.77 | % |
Equity/Assets | | | 6.08 | % | | | 6.08 | % | | | 6.15 | % | | | 6.29 | % | | | 6.41 | % |
Net Interest Margin | | | 3.95 | % | | | 3.80 | % | | | 3.79 | % | | | 3.82 | % | | | 3.88 | % |
| * | 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)
| | | | | | | | |
| | | Jun 30, 2006 | | | Jun 30, 2005 | |
| | | (unaudited) | | | (unaudited) | |
ASSETS | | | | | | | | |
Cash and Cash Equivalents | | | | | | | | |
Cash and Due from Banks | | $ | 22,554 | | | $ | 18,973 | |
Federal Funds Sold | | | 51,830 | | | | 17,813 | |
| | | | | | | | |
| | | 74,384 | | | | 36,786 | |
| | | | | | | | |
Interest-Bearing Deposits | | | 2,914 | | | | 2,744 | |
| | | | | | | | |
Investment Securities | | | | | | | | |
Available for Sale, at Fair Value | | | 130,155 | | | | 109,111 | |
Held for Maturity, at Cost (Fair Value of $75 and $86 as of June 30, 2006 and June 30, 2005, Respectively) | | | 75 | | | | 86 | |
| | | | | | | | |
| | | 130,230 | | | | 109,197 | |
| | | | | | | | |
Federal Home Loan Bank Stock, at Cost | | | 5,109 | | | | 5,012 | |
| | | | | | | | |
Loans | | | 912,913 | | | | 827,839 | |
Allowance for Loan Losses | | | (11,658 | ) | | | (10,119 | ) |
Unearned Interest and Fees | | | (474 | ) | | | (33 | ) |
| | | | | | | | |
| | | 900,781 | | | | 817,687 | |
| | | | | | | | |
Premises and Equipment | | | 27,651 | | | | 23,718 | |
| | | | | | | | |
Other Real Estate | | | 2,935 | | | | 2,797 | |
| | | | | | | | |
Goodwill | | | 2,412 | | | | 2,412 | |
| | | | | | | | |
Other Intangible Assets | | | 469 | | | | 571 | |
| | | | | | | | |
Other Assets | | | 22,276 | | | | 16,260 | |
| | | | | | | | |
Total Assets | | $ | 1,169,161 | | | $ | 1,018,095 | |
| | | | | | | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | | |
Deposits | | | | | | | | |
Noninterest-Bearing | | $ | 73,624 | | | $ | 65,856 | |
Interest-Bearing | | | 931,462 | | | | 793,534 | |
| | | | | | | | |
| | | 1,005,086 | | | | 859,390 | |
| | | | | | | | |
Borrowed Money | | | | | | | | |
Subordinated Debentures | | | 24,229 | | | | 19,074 | |
Other Borrowed Money | | | 62,117 | | | | 69,337 | |
| | | | | | | | |
| | | 86,346 | | | | 88,411 | |
| | | | | | | | |
Other Liabilities | | | 6,678 | | | | 5,037 | |
| | | | | | | | |
Stockholders’ Equity | | | | | | | | |
Common Stock, Par Value $1, Authorized 20,000,000 Shares, Issued 7,190,535 and 7,181,882 Shares as of June 30, 2006 and June 30, 2005, Respectively | | | 7,191 | | | | 7,182 | |
Paid in Capital | | | 24,210 | | | | 24,011 | |
Retained Earnings | | | 42,388 | | | | 35,101 | |
Restricted Stock- Unearned Compensation | | | (418 | ) | | | (423 | ) |
Accumulated Other Comprehensive Loss, Net of Tax | | | (2,320 | ) | | | (614 | ) |
| | | | | | | | |
| | | 71,051 | | | | 65,257 | |
| | | | | | | | |
Total Liabilities and Stockholders’ Equity | | $ | 1,169,161 | | | $ | 1,018,095 | |
| | | | | | | | |
Consolidated Statements of Income Colony Bankcorp, Inc.
(in thousands except per share data)
| | | | | | | | | | | | |
| | | Quarter Three Months Ended | | Year-to-Date Three Months Ended |
| | | 06/30/06 | | 06/30/05 | | 06/30/06 | | 06/30/05 |
| | | (unaudited) | | (unaudited) | | (unaudited) | | (unaudited) |
Interest Income | | | | | | | | | | | | |
Loans, Including Fees | | $ | 18,652 | | $ | 14,140 | | $ | 35,405 | | $ | 27,114 |
Federal Funds Sold | | | 517 | | | 193 | | | 996 | | | 428 |
Deposits with Other Banks | | | 36 | | | 17 | | | 54 | | | 34 |
Investment Securities | | | | | | | | | | | | |
U. S. Government Agencies | | | 1,182 | | | 770 | | | 2,346 | | | 1,638 |
State, County and Municipal | | | 88 | | | 64 | | | 179 | | | 118 |
Corporate Obligations | | | 37 | | | 36 | | | 73 | | | 66 |
Dividends on Other Investments | | | 59 | | | 34 | | | 59 | | | 34 |
| | | | | | | | | | | | |
| | | 20,581 | | | 15,267 | | | 39,181 | | | 29,479 |
| | | | | | | | | | | | |
Interest Expense | | | | | | | | | | | | |
Deposits | | | 8,662 | | | 5,063 | | | 16,176 | | | 9,547 |
Federal Funds Purchased | | | 7 | | | 7 | | | 16 | | | 7 |
Borrowed Money | | | 1,232 | | | 952 | | | 2,376 | | | 1,828 |
| | | | | | | | | | | | |
| | | 9,901 | | | 6,022 | | | 18,568 | | | 11,382 |
| | | | | | | | | | | | |
Net Interest Income | | | 10,680 | | | 9,245 | | | 20,613 | | | 18,097 |
Provision for Loan Losses | | | 1,047 | | | 1,025 | | | 1,969 | | | 1,833 |
| | | | | | | | | | | | |
Net Interest Income After Provision for Loan Losses | | | 9,633 | | | 8,220 | | | 18,644 | | | 16,264 |
| | | | | | | | | | | | |
Noninterest Income | | | | | | | | | | | | |
Service Charges on Deposits | | | 1,155 | | | 1,050 | | | 2,187 | | | 1,980 |
Other Service Charges, Commissions and Fees | | | 203 | | | 169 | | | 418 | | | 353 |
Mortgage Fee Income | | | 213 | | | 126 | | | 336 | | | 233 |
Other | | | 447 | | | 154 | | | 685 | | | 535 |
| | | | | | | | | | | | |
| | | 2,018 | | | 1,499 | | | 3,626 | | | 3,101 |
| | | | | | | | | | | | |
Noninterest Expense | | | | | | | | | | | | |
Salaries and Employee Benefits | | | 4,247 | | | 3,552 | | | 8,326 | | | 6,874 |
Occupancy and Equipment | | | 1,003 | | | 925 | | | 1,988 | | | 1,825 |
Other | | | 2,349 | | | 1,815 | | | 4,372 | | | 3,877 |
| | | | | | | | | | | | |
| | | 7,599 | | | 6,292 | | | 14,686 | | | 12,576 |
| | | | | | | | | | | | |
Income Before Income Taxes | | | 4,052 | | | 3,427 | | | 7,584 | | | 6,789 |
Income Taxes | | | 1,442 | | | 1,180 | | | 2,665 | | | 2,368 |
| | | | | | | | | | | | |
Net Income | | $ | 2,610 | | $ | 2,247 | | $ | 4,919 | | $ | 4,421 |
| | | | | | | | | | | | |
Net Income Per Share of Common Stock | | | | | | | | | | | | |
Basic | | $ | 0.36 | | $ | 0.31 | | $ | 0.69 | | $ | 0.62 |
| | | | | | | | | | | | |
Diluted | | $ | 0.36 | | $ | 0.31 | | $ | 0.69 | | $ | 0.62 |
| | | | | | | | | | | | |
Weighted Average Basic Shares Outstanding | | | 7,176,258 | | | 7,143,741 | | | 7,173,332 | | | 7,143,741 |
| | | | | | | | | | | | |
Weighted Average Diluted Shares Outstanding | | | 7,177,367 | | | 7,169,617 | | | 7,175,018 | | | 7,170,122 |
| | | | | | | | | | | | |
Per Share Data has been adjusted to reflect 5-for-4 stock split effective May 16, 2005.
