EXHIBIT 99.1
FOR IMMEDIATE RELEASE
Colony Bankcorp, Inc. and Quitman Bancorp, Inc. to Merge
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Colony Bankcorp, Inc. Announces Stock Repurchase Plan
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FITZGERALD, GA., October 23, 2001--- Colony Bankcorp, Inc. (Nasdaq: CBAN) in
Fitzgerald, Georgia and Quitman Bancorp, Inc. (OTC BB: QTMB.OB) in Quitman,
Georgia today announced that they have entered into a definitive agreement under
which Colony would acquire Quitman in a transaction valued at approximately $6.8
million in cash and stock.
Colony with $590 million in assets as of September 30, 2001, is a bank holding
company that conducts a full service banking business through its six bank
subsidiaries in twenty offices located in Ben Hill, Wilcox, Turner, Lee, Dodge,
Worth, Coffee, Tift, Crisp, Dougherty, Colquitt, Treutlen and Houston Counties,
Georgia.
Quitman Bancorp with $65 million in assets as of September 30, 2001, is a
unitary thrift holding company that operates one subsidiary, Quitman Federal
Savings Bank, through a single branch in Quitman.
The transaction has been approved by the directors of both companies subject to
approval of the Quitman shareholders and regulatory approval and is expected to
close by April 2002. Based on 507,262 Quitman shares outstanding, each share of
Quitman=s common stock will be entitled to receive .683 shares of Colony common
stock and $4.41 in cash at closing. Based on Colony=s closing price of $13.25
on Friday, October 19, 2001, the transaction is valued at approximately $13.46
per share. The transaction will be accounted for under the purchase method and
is intended to qualify as a tax-free reorganization under Section 368(a) of the
Internal Revenue Code.
After consummation of the transaction, it is anticipated that the current
management and board of directors of Quitman Federal Savings Bank will continue
in their current capacities to operate the bank.
Dan Minix, President and CEO of Colony Bankcorp stated, "We are excited to have
an institution such as Quitman Federal Savings Bank join our family of community
banks. The Brooks County market will extend the Colony footprint to the Florida
line and create opportunities in the surrounding area. Chairman Claude Butler
and CEO Melvin Plair have built a quality organization based on excellent
customer service from a staff who will play an important role in the future of
Colony Bankcorp, Inc."
Melvin Plair, President and CEO of Quitman Bancorp and Quitman Federal Savings
Bank stated, "Our board of directors is pleased to announce this merger by which
our customers will continue to conduct their business as usual, with the same
employees and at the same location. Our stockholders will receive not only cash
but, with their receipt of Colony Bankcorp, Inc. stock, the opportunity to share
in the growth of a larger, Georgia-based community bank. Our board of directors
feels this is a most positive move for Quitman Federal Savings Bank's customers
and the community."
In another action, Colony Bankcorp, Inc.'s board of directors authorized the
company to spend up to $3,500,000 to repurchase shares of its common stock.
These repurchases may take place from time-to-time in the open market or
privately negotiated transactions, depending on market conditions and subject to
compliance with all applicable securities laws and regulations. Any repurchased
shares may be available for use in connection with the acquisition of Quitman
and for other corporate purposes.
Colony Bankcorp, Inc. Common Stock is quoted on the Nasdaq National Market under
the symbol "CBAN".
Colony Bankcorp, Inc. will file a registration statement on Form S-4 with the
Securities and Exchange Commission in connection with the proposed merger.
Stockholders are urged to read the registration statement as it will contain
important information. The registration statement will include a
prospectus/joint proxy statement which will be sent to shareholders of Colony
Bankcorp, Inc. and Quitman Bancorp, Inc., seeking their approval of the proposed
merger.
When filed, the registration statement can be obtained, at no cost, at the
internet world wide web site maintained by the Securities and Exchange
Commission at "http://www.sec.gov." Stock holders of Colony Bankcorp, Inc. and
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Quitman Bancorp, Inc. will be able to obtain a free copy of the prospectus/joint
proxy statement from their respective companies.
This news release contains forward-looking statements, within the meaning of the
Private Securities Litigation Reform Act of 1995. As such, the statements
involve significant risks and uncertainties. Actual results may differ
materially from the statements due to such factors as: (1) The expected cost
savings from the merger not materializing within the expected time frame; (2)
revenues following the merger not meeting expectations; (3) failure to retain
the customer base of the two institutions following the merger; (4) competitive
pressures among financial institutions increasing significantly; (5) general
economic conditions being less favorable than anticipated; (6) legislative or
regulatory changes affecting the business in which the combined company will be
engaged; and (7) the time of the completion of the transactions. Additional
factors that would cause actual results to differ materially are discussed in
the companies= recent filings with the SEC, including but not limited to Annual
Reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form
8-K.
Contact: Terry L. Hester
Chief Financial Officer
Colony Bankcorp, Inc.
Fitzgerald, GA 31750
(229) 426-6002
Melvin E. Plair
President and Chief Executive Officer
Quitman Federal Savings Bank
Quitman, GA 31643
(229) 263-7538