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

Exhibit 99.1

NEWS RELEASE

FOR IMMEDIATE RELEASE

Date:	April 27, 2007 8:00 A.M. (ET)
Contact:	Terry L. Hester
	Chief Financial Officer
	(229) 426-6002

Colony Bankcorp, Inc. Announces First Quarter Results

FITZGERALD, GA., April 27, 2007 — Colony Bankcorp, Inc. (Nasdaq: CBAN), today reported quarterly net income of $2,474,000 for the first quarter of 2007, up 7.15 percent from first quarter 2006 net income of $2,309,000. Diluted earnings per share for the first quarter of 2007 were $0.34 per share compared to $0.32 per share for the same year ago period or an increase of 6.25 percent. Earnings per share were negatively impacted $0.02 per share during first quarter 2007 when the Company refinanced $9 million in trust preferred securities and had to expense unamortized loan placement fees on the original issuance. Though the Company incurred after-tax expense of approximately $121 thousand on the unamortized loan placement fees, the Company will realize annual interest savings on the thirty year instrument of approximately $115 thousand (after-tax). This will allow the Company to recoup the unamortized loan placement fees expense in twelve months while also realizing the annual interest savings over the remaining twenty-nine year term. Annualized return on assets for the quarter was 0.82 percent and return on equity was 12.76 percent, compared to 0.83 percent and 13.39 percent for the same year ago period, respectively. Due to the inverted yield curve and sluggish first quarter loan activity, net interest margin was 3.70 percent for first quarter 2007 compared to 3.80 percent for first quarter 2006.

Total assets increased 4.04 percent to $1,191,407,000 on March 31, 2007 from $1,145,186,000 a year ago. Net loans increased 4.09 percent to $917,984,000 on March 31, 2007 from $881,897,000 a year ago. Total deposits increased 5.13 percent to $1,024,632,000 on March 31, 2007 from $974,672,000 a year ago. Shareholders’ equity on March 31, 2007 was $78,553,000 and equaled 6.59 percent of total assets.

The company’s focus on credit quality resulted in significant improvement during first quarter 2007 as the ratio of non-performing assets to loans and other real estate on March 31, 2007 was 0.86 percent as compared to 1.22 percent on March 31, 2006 and 0.96 percent on December 31, 2006. Total nonperforming assets decreased $1,009,000 to $8,039,000 on March 31, 2007 from $9,048,000 on December 31, 2006, or a decrease of 11.15 percent. The first quarter 2007 provision for loan losses were $914,000 compared to $922,000 for the same period in 2006. Net charge-offs for the quarter were 0.08 percent of average loans, down from 0.11 percent for the first quarter of 2006. The loan loss reserve of $12,170,000 on March 31, 2007 was 1.31 percent of total loans, which provided coverage of 187.92 percent of non-performing loans and 151.39 percent of non-performing assets, compared to 122.08 percent and 98.31 percent on March 31, 2006, respectively.

During the quarter the board of directors increased the quarterly cash dividend to $0.0875 per share compared to $0.085 per share in the fourth quarter of 2006 and to the cash dividend of $0.0775 per share in the first quarter of 2006. The first quarter dividend payment represents an increase of 12.90 percent over the dividend payment in first quarter 2006.

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, Centerville, 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
	03/31/07		03/31/06		03/31/07		03/31/06
EARNINGS SUMMARY
Net Interest Income	$	10,451	$	9,933	$	10,451	$	9,933
Provision for Loan Losses		914		922		914		922
Non-interest Income		2,110		1,608		2,110		1,608
Non-interest Expense		7,909		7,087		7,909		7,087
Income Taxes		1,264		1,223		1,264		1,223
Net Income		2,474		2,309		2,474		2,309
Operating Income		2,353		2,309		2,353		2,309

COLONY BANKCORP, INC.

FINANCIAL HIGHLIGHTS (UNAUDITED)

DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA

	QUARTER ENDED				YEAR-TO-DATE
	03/31/07		03/31/06		03/31/07		03/31/06
PER SHARE SUMMARY
Common Shares Outstanding		7,204,775		7,190,735		7,204,775		7,190,735
Weighted Average Diluted Shares		7,194,741		7,172,669		7,194,741		7,172,669
Net Income Per Weighted Average Diluted Shares	$	0.34	$	0.32	$	0.34	$	0.32
Operating Income Per Weighted Average Diluted Shares	$	0.33	$	0.32	$	0.33	$	0.32
Dividends Declared Per Share	$	0.0875	$	0.0775	$	0.0875	$	0.0775

	QUARTER ENDED				YEAR-TO-DATE
	03/31/07		03/31/06		03/31/07		03/31/06
OPERATING RATIOS (1)
Net Interest Margin (a)	3.70	%	3.80	%	3.70	%	3.80	%
Return on Average Assets Based on Net Income	0.82	%	0.83	%	0.82	%	0.83	%
Return on Average Assets Based on Operating Income	0.78	%	0.83	%	0.78	%	0.83	%
Return on Average Equity Based on Net Income	12.76	%	13.39	%	12.76	%	13.39	%
Return on Average Equity Based on Operating Income	12.13	%	13.39	%	12.13	%	13.39	%
Efficiency (b)	62.57	%	61.11	%	62.57	%	61.11	%

	QUARTER ENDED
	03/31/07			03/31/06
ENDING BALANCES
Total Assets	$	1,191,407		$	1,145,186
Loans Held for Sale		335			—
Loans, Net of Reserves		917,649			881,897
Allowance for Loan Losses		12,170			10,760
Goodwill		2,412			2,412
Intangible Assets		429			495
Deposits		1,024,632			974,672
Stockholders’ Equity		78,553			69,625
Book Value Per Share	$	10.90		$	9.68
Tangible Book Value Per Share	$	10.51		$	9.28
Shareholders’ Equity to Total Assets		6.59	%		6.08	%

(1) Annualized.

(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.

COLONY BANKCORP, INC

FINANCIAL HIGHLIGHTS (UNAUDITED)

DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA

	QUARTER ENDED				YEAR-TO-DATE
	03/31/07		03/31/06		03/31/07		03/31/06
AVERAGE BALANCES
Total Assets	$	1,204,804	$	1,111,827	$	1,204,804	$	1,111,827
Loans, Net of Reserves		915,712		862,415		915,712		862,415
Deposits		1,033,322		944,880		1,033,322		944,880
Stockholders’ Equity		77,562		68,960		77,562		68,960

	QUARTER ENDED						YEAR-TO-DATE
	03/31/07			03/31/06			03/31/07			03/31/06
ASSET QUALITY
Nonperforming Loans	$	6,476		$	8,814		$	6,476		$	8,814
Nonperforming Assets		8,039			10,945			8,039			10,945
Net Loan Chg-offs (Recoveries)		733			924			733			924
Reserve for Loan Loss to Gross Loans		1.31	%		1.21	%		1.31	%		1.21	%
Reserve for Loan Loss to Non- performing Loans		187.92	%		122.08	%		187.92	%		122.08	%
Reserve for Loan Loss to Non- performing Assets		151.39	%		98.31	%		151.39	%		98.31	%
Net Loan Chg-offs (Recoveries) to Avg. Gross Loans		0.08	%		0.11	%		0.08	%		0.11	%
Nonperforming Loans to Gross Loans		0.70	%		0.99	%		0.70	%		0.99	%
Nonperforming Assets to Total Assets		0.67	%		0.96	%		0.67	%		0.96	%
Nonperforming Assets to Loans and Other Real Estate		0.86	%		1.22	%		0.86	%		1.22	%

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

	1Q2007		4Q2006			3Q2006			2Q2006			1Q2006
Assets	$1,191,407		$	1,213,504		$	1,186,382		$	1,169,161		$	1,145,186
Loans	917,984			929,783			926,332			900,781			881,897
Deposits	1,024,632			1,042,446			1,016,327			1,005,086			974,672
Equity	78,553			76,611			74,352			71,051			69,625
Net Income	2,474			2,611			2,622			2,610			2,309
Net Income Per Share (1)	0.34			0.36			0.36			0.36			0.32
Dividends Declared Per Share (1)	0.0875			0.085			0.0825			0.08			0.0775
Key Performance Ratios	1Q2007		4Q2006			3Q2006			2Q2006			1Q2006
Return on Assets	0.82	%		0.87	%		0.90	%		0.90	%		0.83	%
Return on Equity	12.76	%		13.83	%		14.45	%		14.80	%		13.39	%
Equity/Assets	6.59	%		6.31	%		6.27	%		6.08	%		6.08	%
Net Interest Margin	3.70	%		3.70	%		3.93	%		3.95	%		3.80	%

Consolidated Balance Sheets Colony Bankcorp, Inc.

(in thousands)

	Mar. 31, 2007			Mar. 31, 2006
	(unaudited)			(unaudited)
ASSETS
Cash and Cash Equivalents
Cash and Due from Banks	$	21,583		$	24,785
Federal Funds Sold		35,004			54,104
		56,587			78,889
Interest-Bearing Deposits		2,810			3,631
Investment Securities
Available for Sale, at Fair Value		156,028			124,221
Held for Maturity, at Cost (Fair Value of $73 and $81 as of Mar. 31, 2007 and Mar. 31, 2006, Respectively)		73			81
		156,101			124,302
Federal Home Loan Bank Stock, at Cost		4,903			5,469
Loans Held for Sale		335			—
Loans		930,250			893,100
Allowance for Loan Losses		(12,170	)		(10,760	)
Unearned Interest and Fees		(431	)		(443	)
		917,649			881,897
Premises and Equipment		27,268			26,280
Other Real Estate		1,563			2,131
Goodwill		2,412			2,412
Other Intangible Assets		429			495
Other Assets		21,350			19,680
Total Assets	$	1,191,407		$	1,145,186
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits
Noninterest-Bearing	$	76,702		$	73,545
Interest-Bearing		947,930			901,127
		1,024,632			974,672
Borrowed Money
Federal Funds Purchased		480			—
Subordinated Debentures		24,229			19,074
Other Borrowed Money		55,000			74,672
		79,709			93,746
Other Liabilities		8,513			7,143
Stockholders’ Equity
Common Stock, Par Value $1, Authorized 20,000,000 Shares, Issued 7,204,775 and 7,190,735 Shares as of Mar. 31, 2007 and Mar. 31, 2006, Respectively		7,205			7,191
Paid in Capital		24,503			24,215
Retained Earnings		48,013			40,353
Restricted Stock- Unearned Compensation		(478	)		(488	)
Accumulated Other Comprehensive Loss, Net of Tax		(690	)		(1,646	)
		78,553			69,625
Total Liabilities and Stockholders’ Equity	$	1,191,407		$	1,145,186

Consolidated Statements of Income Colony Bankcorp, Inc.

(in thousands except per share data)

	Quarter Three Months Ended				Year-to-Date Three Months Ended
	03/31/07		03/31/06		03/31/07		03/31/06
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Interest Income
Loans, Including Fees	$	19,768	$	16,753	$	19,768	$	16,753
Federal Funds Sold		631		479		631		479
Deposits with Other Banks		41		18		41		18
Investment Securities
U. S. Government Agencies		1,544		1,164		1,544		1,164
State, County and Municipal		134		91		134		91
Corporate Obligations		63		36		63		36
Dividends on Other Investments		76		59		76		59
		22,257		18,600		22,257		18,600
Interest Expense
Deposits		10,607		7,514		10,607		7,514
Federal Funds Purchased		6		9		6		9
Borrowed Money		1,193		1,144		1,193		1,144
		11,806		8,667		11,806		8,667
Net Interest Income		10,451		9,933		10,451		9,933
Provision for Loan Losses		914		922		914		922
Net Interest Income After Provision for Loan Losses		9,537		9,011		9,537		9,011
Noninterest Income
Service Charges on Deposits		1,118		1,032		1,118		1,032
Other Service Charges, Commissions and Fees		246		215		246		215
Mortgage Fee Income		252		123		252		123
Securities Gains		184		—		184		—
Other		310		238		310		238
		2,110		1,608		2,110		1,608
Noninterest Expense
Salaries and Employee Benefits		4,542		4,079		4,542		4,079
Occupancy and Equipment		1,001		985		1,001		985
Other		2,366		2,023		2,366		2,023
		7,909		7,087		7,909		7,087
Income Before Income Taxes		3,738		3,532		3,738		3,532
Income Taxes		1,264		1,223		1,264		1,223
Net Income	$	2,474	$	2,309	$	2,474	$	2,309
Net Income Per Share of Common Stock
Basic	$	0.34	$	0.32	$	0.34	$	0.32
Diluted	$	0.34	$	0.32	$	0.34	$	0.32
Weighted Average Basic Shares Outstanding		7,181,568		7,170,406		7,181,568		7,170,406
Weighted Average Diluted Shares Outstanding		7,194,741		7,172,669		7,194,741		7,172,669