Colony Bankcorp Reports Fourth Quarter 2024 Results

Colony Bankcorp Reports Fourth Quarter 2024 Results

Increases Quarterly Cash Dividend to $0.1150 Per Share

FITZGERALD, Ga.–(BUSINESS WIRE)–
Colony Bankcorp, Inc. (NYSE: CBAN) (“Colony” or the “Company”) today reported financial results for the fourth quarter of 2024. Financial highlights are shown below.

Financial Highlights:

• Net income increased to $7.4 million, or $0.42 per diluted share, for the fourth quarter of 2024, compared to $5.6 million, or $0.32 per diluted share, for the third quarter of 2024, and $5.6 million, or $0.32 per diluted share, for the fourth quarter of 2023.

• Operating net income increased to $7.8 million, or $0.44 of adjusted earnings per diluted share, for the fourth quarter of 2024, compared to $6.2 million, or $0.35 of adjusted earnings per diluted share, for the third quarter of 2024, and $5.4 million, or $0.31 of adjusted earnings per diluted share, for the fourth quarter of 2023. (See Reconciliation of Non-GAAP Measures).

• Provision for credit losses of $650,000 was recorded in fourth quarter of 2024 compared to $750,000 in third quarter of 2024, and $1.5 million in fourth quarter of 2023.

• Total loans, excluding loans held for sale, were $1.84 billion at December 31, 2024, a decrease of $43.1 million, or 2.28%, from the prior quarter.

• Total deposits were $2.57 billion and $2.52 billion at December 31, 2024 and September 30, 2024, respectively, an increase of $43.0 million.

• Mortgage production was $76.9 million, and mortgage sales totaled $51.4 million in the fourth quarter of 2024 compared to $66.6 million and $57.8 million, respectively, for the third quarter of 2024.

• Small Business Specialty Lending (“SBSL”) closed $22.2 million in Small Business Administration (“SBA”) loans and sold $30.0 million in SBA loans in the fourth quarter of 2024 compared to $30.1 million and $27.2 million, respectively, for the third quarter of 2024.

The Company also announced that on January 22, 2025, the Board of Directors declared a quarterly cash dividend of $0.1150 per share, to be paid on its common stock on February 19, 2025, to shareholders of record as of the close of business on February 5, 2025. The Company had 17,520,136 shares of its common stock outstanding as of January 20, 2025.

“We are pleased to report our operating results and improved performance in the fourth quarter of 2024. Strong deposit growth during the quarter, particularly in lower cost transactional deposit accounts, along with easing from the Federal Reserve contributed to a lower overall cost of funds which resulted in an increase in margin of 20 basis points compared to the prior quarter. Additionally, we are pleased with our increase in noninterest income led by a successful quarter for our Small Business Specialty Lending Division and continued progress in our other complementary lines of business,” said Heath Fountain, Chief Executive Officer.

“The change in our loan balances reflects several anticipated large payoffs during the quarter, which carried lower rates and had minimal impact on earning asset yields. While we anticipate loan growth to resume in 2025, we expect it to be stronger in the latter half of the year.”

“We were also excited to announce additions to the Executive Management team which include the promotions of Ed Canup, Daniel Rentz, and Laurie Senn. These additions enable us to prioritize profitable growth and scale the organization by emphasizing business development, innovation, and efficiency.”

Balance Sheet

• Total assets were $3.11 billion at December 31, 2024, an increase of $44.7 million from September 30, 2024.

• Total loans, including loans held for sale, were at $1.88 billion at December 31, 2024, a decrease of $31.0 million from the quarter ended September 30, 2024.

• Total deposits were $2.57 billion and $2.52 billion at December 31, 2024 and September 30, 2024, respectively, an increase of $43.0 million. Interest bearing demand deposits increased $44.7 million and savings and money market deposits increased $3.2 million, which were partially offset by a decrease in time deposits of $27.3 million, from September 30, 2024 to December 31, 2024.

• Total borrowings at December 31, 2024 totaled $248.0 million, an increase of $23,000 compared to September 30, 2024, related to a minimal increase in other borrowed money.

Capital

• Colony continues to maintain a strong capital position, with ratios that exceed regulatory minimums required to be considered as “well-capitalized.”

• Under the Company’s approved stock repurchase program, a total of 35,000 shares of Company common stock were repurchased during the fourth quarter of 2024 at an average price of $15.40 per share and a total value of $539,132 thousand.

• Preliminary tier one leverage ratio, tier one capital ratio, total risk-based capital ratio and common equity tier one capital ratio were 9.50%, 14.26%, 17.10%, and 13.08%, respectively, at December 31, 2024.

Fourth Quarter and December 31, 2024 Year to Date Results of Operations

• Net interest income, on a tax-equivalent basis, totaled $20.6 million for the fourth quarter ended December 31, 2024 compared to $19.1 million for the same period in 2023. Net interest income, on a tax-equivalent basis, for the twelve months ended December 31, 2024 totaled $76.8 million, compared to $79.0 million for the twelve months ended December 31, 2023. For both periods, increases can be seen in income on interest earning assets, which is more than offset by increases in expenses on interest bearing liabilities due to higher interest rates period over period. Income on interest earning assets increased $2.8 million, to $36.2 million for the fourth quarter of 2024 compared to the respective period in 2023. Expense on interest bearing liabilities increased $1.2 million, to $15.5 million for the fourth quarter of 2024 compared to the respective period in 2023. Income on interest earning assets increased $12.3 million to $137.9 million for the twelve month period ended December 31, 2024 compared to the respective period in 2023. Expense on interest bearing liabilities increased $14.5 million, to $61.2 million for the twelve month period ended December 31, 2024 compared to the respective period in 2023.

• Net interest margin for the fourth quarter of 2024 was 2.84% compared to 2.70% for the fourth quarter of 2023. This increase was primarily related to an increase in interest earning assets period over period as well as rate increases in interest earning assets outpacing the rate increases in interest bearing liabilities. Net interest margin was 2.72% for the twelve months ended December 31, 2024 compared to 2.83% for the twelve months ended December 31, 2023. The decrease is the result of rate increases in interest bearing liabilities outpacing the rate increases in interest earning assets.

• Noninterest income totaled $10.3 million for the fourth quarter ended December 31, 2024, an increase of $1.0 million, or 10.79%, compared to the same period in 2023. Noninterest income totaled $39.4 million for the twelve months ended December 31, 2024, an increase of $3.7 million, or 10.50%, compared to the same period in 2023. These increases were primarily related to increases in mortgage fee income, gains on sales of SBA loans and income on merchant and wealth advisory services which is included in other noninterest income, which were partially offset by decreases in service charges on deposit accounts and losses on the sales of investment securities.

• Noninterest expense totaled $21.3 million for the fourth quarter ended December 31, 2024, compared to $19.6 million for the same period in 2023. Noninterest expense totaled $82.8 million for the twelve months ended December 31, 2024, compared to $83.1 million for the same period in 2023. The increase for the fourth quarter ended December 31, 2024 was primarily related to increases in salaries and employee benefits and information technology expenses. The slight decrease for the twelve months ended December 31, 2024 was a result of decreases in occupancy and equipment expenses, professional fees and communications expense partially offset by increases in salaries and employee benefits and information technology expenses.

Asset Quality

• Nonperforming assets totaled $11.3 million and $12.5 million at December 31, 2024 and September 30, 2024, respectively, a decrease of $1.2 million.

• Other real estate owned and repossessed assets totaled $530,000 at December 31, 2024 and $236,000 at September 30, 2024.

• Net loans charged-off were $1.5 million, or 0.33% of average loans for the fourth quarter of 2024, compared to $139,000 or 0.03% for the third quarter of 2024.

• The credit loss reserve was $19.0 million, or 1.03% of total loans, at December 31, 2024, compared to $19.7 million, or 1.04% of total loans at September 30, 2024.

Earnings call information

The Company will host an earnings conference call at 9:00 a.m. ET on Thursday, January 23, 2025, to discuss the recent results and answer appropriate questions. The conference call can be accessed by dialing 1-800-549-8228 and using the Conference ID: 71885. A replay of the call will be available until Thursday, January 30, 2025. To listen to the replay, dial 1-888-660-6264 and entering the passcode 71885#.

About Colony Bankcorp

Colony Bankcorp, Inc. is the bank holding company for Colony Bank. Founded in Fitzgerald, Georgia in 1975, Colony operates locations throughout Georgia and has expanded to serve Birmingham, Alabama, as well as Tallahassee and the Florida Panhandle. At Colony Bank, we offer a range of banking solutions for personal and business customers. In addition to traditional banking services, Colony provides specialized solutions including mortgage, government guaranteed lending, consumer insurance, wealth management, and merchant services. Colony’s common stock is traded on the New York Stock Exchange (“NYSE”) under the symbol “CBAN.” For more information, please visit www.colony.bank. You can also follow the Company on social media.

Forward-Looking Statements

Certain statements contained in this press release that are not statements of historical fact constitute “forward-looking statements” within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. 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, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Examples of forward-looking statements include, but are not limited to: (i) projections and/or expectations 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; (iv) statements regarding growth strategy, capital management, liquidity and funding, and future profitability; and (v) statements of assumptions underlying such statements. Words such as “may”, “will”, “anticipate”, “assume”, “should”, “support”, “indicate”, “would”, “believe”, “contemplate”, “expect”, “estimate”, “continue”, “further”, “plan”, “point to”, “project”, “could”, “intend”, “target” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements.

Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties. Factors that might cause such differences include, but are not limited to: the impact of current and future economic conditions, particularly those affecting the financial services industry, including the effects of declines in the real estate market, high unemployment rates, inflationary pressures, changes in interest rates (including the impact of prolonged elevated interest rates on our financial projections and models) and slowdowns in economic growth, as well as the financial stress on borrowers as a result of the foregoing; the risk of reductions in benchmark interest rates and the resulting impacts on net interest income; potential impacts of adverse developments in the banking industry highlighted by high-profile bank failures, including impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto; risks arising from media coverage of the banking industry; risks arising from perceived instability in the banking sector; the risks of changes in interest rates and their effects on the level, cost, and composition of, and competition for, deposits, loan demand and timing of payments, the values of loan collateral, securities, and interest sensitive assets and liabilities; the ability to attract new or retain existing deposits, to retain or grow loans or additional interest and fee income, or to control noninterest expense; the effect of pricing pressures on the Company’s net interest margin; the failure of assumptions underlying the establishment of reserves for possible credit losses, fair value for loans and other real estate owned; changes in real estate values; the Company’s ability to implement its various strategic and growth initiatives; increased competition in the financial services industry, particularly from regional and national institutions, as well as from fintech companies; economic conditions, either nationally or locally, in areas in which the Company conducts operations being less favorable than expected; changes in the prices, values and sales volumes of residential and commercial real estate; developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance; legislation or regulatory changes which adversely affect the ability of the consolidated Company to conduct business combinations or new operations; adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions, including as a result of the Company’s participation in and execution of government programs; significant turbulence or a disruption in the capital or financial markets and the effect of a fall in the stock market prices on our investment securities; the effects of war or other conflicts including the impacts related to or resulting from Russia’s military action in Ukraine or the conflict in Israel and surrounding areas; general risks related to the Company’s merger and acquisition activity, including risks associated with the Company’s pursuit of future acquisitions; the impact of generative artificial intelligence; fraud or misconduct by internal or external actors, and system failures, cybersecurity threats or security breaches and the cost of defending against them; a deterioration of the credit rating for U.S. long-term sovereign debt, actions that the U.S. government may take to avoid exceeding the debt ceiling, and uncertainties surrounding debt ceiling and the federal budget; a potential U.S. federal government shutdown and the resulting impacts; and general competitive, economic, political and market conditions or other unexpected factors or events. These and other factors, risks and uncertainties could cause the actual results, performance or achievements of the Company to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. Many of these factors are beyond the Company’s ability to control or predict.

Forward-looking statements speak only as of the date on which such statements are made. These forward-looking statements are based upon information presently known to the Company’s management and are inherently subjective, uncertain and subject to change due to any number of risks and uncertainties, including, without limitation, the risks and other factors set forth in the Company’s filings with the Securities and Exchange Commission, the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, under the captions “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors,” and in the Company’s quarterly reports on Form 10-Q and current reports on Form 8-K. 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.

Explanation of Certain Unaudited Non-GAAP Financial Measures

The measures entitled operating noninterest income, operating noninterest expense, operating net income, adjusted earnings per diluted share, operating return on average assets, operating return on average equity, tangible book value per common share, tangible equity to tangible assets, operating efficiency ratio, operating net noninterest expense to average assets and pre-provision net revenue are not measures recognized under U.S. generally accepted accounting principles (GAAP) and therefore are considered non-GAAP financial measures. The most comparable GAAP measures are noninterest income, noninterest expense, net income, diluted earnings per share, return on average assets, return on average equity, book value per common share, total equity to total assets, efficiency ratio, net noninterest expense to average assets and net interest income before provision for credit losses, respectively. Operating noninterest income excludes gain on sale of bank premises and loss on sales of securities. Operating noninterest expense excludes acquisition-related expenses and severance costs. Operating net income, operating return on average assets, operating return on average equity and operating efficiency ratio all exclude acquisition-related expenses, severance costs, gain on sale of bank premises and loss on sales of securities from net income, return on average assets, return on average equity and efficiency ratio, respectively. Operating net noninterest expense to average assets ratio excludes from net noninterest expense, severance costs, acquisition-related expenses, gain on sale of bank premises and loss on sales of securities. Acquisition-related expenses includes fees associated with acquisitions and vendor contract buyouts. Severance costs includes costs associated with termination and retirement of employees. Adjusted earnings per diluted share includes the adjustments to operating net income. Tangible book value per common share and tangible equity to tangible assets exclude goodwill and other intangibles from book value per common share and total equity to total assets, respectively. Pre-provision net revenue is calculated by adding noninterest income to net interest income before provision for credit losses, and subtracting noninterest expense.

Management uses these non-GAAP financial measures in its analysis of the Company’s performance and believes these presentations provide useful supplemental information, and a clearer understanding of the Company’s performance, and if not provided would be requested by the investor community. The Company believes the non-GAAP measures enhance investors’ understanding of the Company’s business and performance. These measures are also useful in understanding performance trends and facilitate comparisons with the performance of other financial institutions. The limitations associated with operating measures are the risk that persons might disagree as to the appropriateness of items comprising these measures and that different companies might calculate these measures differently.

These disclosures should not be considered an alternative to GAAP. The computations of operating noninterest income, operating noninterest expense, operating net income, adjusted earnings per diluted share, operating return on average assets, operating return on average equity, tangible book value per common share, tangible equity to tangible assets, operating efficiency ratio, operating net noninterest expense to average assets and pre-provision net revenue and the reconciliation of these measures to noninterest income, noninterest expense, net income, diluted earnings per share, return on average assets, return on average equity, book value per common share, total equity to total assets, efficiency ratio, net noninterest expense to average assets and net interest income before provision for credit losses are set forth in the table below.

Colony Bankcorp, Inc.
Reconciliation of Non-GAAP Measures
		2024																2023
(dollars in thousands, except per share data)		Fourth Quarter				Third Quarter				Second Quarter				First Quarter				Fourth Quarter
Operating noninterest income reconciliation
Noninterest income (GAAP)		$	10,309			$	10,082			$	9,497			$	9,487			$	9,305
Gain on sale of bank premises			—				—				—				—				(236	)
Writedown of bank premises			—				—				197				—				—
Loss on sales of securities			401				454				425				555				—
Operating noninterest income		$	10,710			$	10,536			$	10,119			$	10,042			$	9,069
Operating noninterest expense reconciliation
Noninterest expense (GAAP)		$	21,272			$	20,835			$	20,330			$	20,397			$	19,587
Severance costs			—				(265	)			—				(23	)			—
Operating noninterest expense		$	21,272			$	20,570			$	20,330			$	20,374			$	19,587
Operating net income reconciliation
Net income (GAAP)		$	7,432			$	5,629			$	5,474			$	5,333			$	5,598
Severance costs			—				265				—				23				—
Gain on sale of bank premises			—				—				—				—				(236	)
Writedown of bank premises			—				—				197				—				—
Loss on sales of securities			401				454				425				555				—
Income tax benefit			(77	)			(143	)			(129	)			(121	)			52
Operating net income		$	7,756			$	6,205			$	5,967			$	5,790			$	5,414
Weighted average diluted shares			17,531,808				17,587,902				17,551,007				17,560,210				17,567,839
Adjusted earnings per diluted share		$	0.44			$	0.35			$	0.34			$	0.33			$	0.31
Operating return on average assets reconciliation
Return on average assets (GAAP)			0.95	%			0.74	%			0.73	%			0.71	%			0.73	%
Severance costs			—				0.03				—				—				—
Gain on sale of bank premises			—				—				—				—				(0.03	)
Writedown of bank premises			—				—				0.03				—				—
Loss on sales of securities			0.05				0.06				0.06				0.07				—
Tax effect of adjustment items			(0.01	)			(0.02	)			(0.02	)			(0.02	)			0.01
Operating return on average assets			0.99	%			0.81	%			0.80	%			0.76	%			0.71	%
Operating return on average equity reconciliation
Return on average equity (GAAP)			10.71	%			8.33	%			8.46	%			8.38	%			9.20	%
Severance costs			—				0.39				—				0.04				—
Gain on sale of bank premises			—				—				—				—				(0.39	)
Writedown of bank premises			—				—				0.30				—				—
Loss on sales of securities			0.58				0.67				0.66				0.87				—
Tax effect of adjustment items			(0.11	)			(0.21	)			(0.20	)			(0.19	)			0.09
Operating return on average equity			11.18	%			9.18	%			9.22	%			9.10	%			8.90	%
Tangible book value per common share reconciliation
Book value per common share (GAAP)		$	15.91			$	15.73			$	15.09			$	14.80			$	14.51
Effect of goodwill and other intangibles			(2.96	)			(2.97	)			(2.99	)			(3.01	)			(3.02	)
Tangible book value per common share		$	12.95			$	12.76			$	12.10			$	11.79			$	11.49
Tangible equity to tangible assets reconciliation
Equity to assets (GAAP)			8.96	%			9.01	%			8.80	%			8.62	%			8.35	%
Effect of goodwill and other intangibles			(1.54	)			(1.58	)			(1.62	)			(1.63	)			(1.62	)
Tangible equity to tangible assets			7.42	%			7.43	%			7.18	%			6.99	%			6.73	%
Operating efficiency ratio calculation
Efficiency ratio (GAAP)			69.11	%			72.79	%			72.85	%			72.48	%			69.51	%
Severance costs			—				(0.93	)			—				(0.08	)			—
Gain on sale of bank premises			—				—				—				—				0.84
Writedown of bank premises			—				—				(0.71	)			—				—
Loss on sales of securities			(1.31	)			(1.59	)			(1.52	)			(1.97	)			—
Operating efficiency ratio			67.80	%			70.27	%			70.62	%			70.43	%			70.35	%
Operating net noninterest expense(1) to average assets calculation
Net noninterest expense to average assets			1.40	%			1.41	%			1.45	%			1.45	%			1.35	%
Severance costs			—				(0.03	)			—				—				—
Gain on sale of bank premises			—				—				—				—				0.03
Writedown of bank premises			—				—				(0.03	)			—				—
Loss on sales of securities			(0.05	)			(0.06	)			(0.06	)			(0.07	)			—
Operating net noninterest expense to average assets			1.35	%			1.32	%			1.36	%			1.38	%			1.38	%
Pre-provision net revenue
Net interest income before provision for credit losses		$	20,472			$	18,541			$	18,409			$	18,654			$	18,874
Noninterest income			10,309				10,082				9,497				9,487				9,305
Total income			30,781				28,623				27,906				28,141				28,179
Noninterest expense			21,272				20,835				20,330				20,397				19,587
Pre-provision net revenue		$	9,509			$	7,788			$	7,576			$	7,744			$	8,592
(1) Net noninterest expense is defined as noninterest expense less noninterest income.

Colony Bankcorp, Inc.
Selected Financial Information
		2024																2023
(dollars in thousands, except per share data)		Fourth Quarter				Third Quarter				Second Quarter				First Quarter				Fourth Quarter
EARNINGS SUMMARY
Net interest income		$	20,472			$	18,541			$	18,409			$	18,654			$	18,874
Provision for credit losses			650				750				650				1,000				1,500
Noninterest income			10,309				10,082				9,497				9,487				9,305
Noninterest expense			21,272				20,835				20,330				20,397				19,587
Income taxes			1,427				1,409				1,452				1,411				1,494
Net income		$	7,432			$	5,629			$	5,474			$	5,333			$	5,598
PERFORMANCE MEASURES
Per common share:
Common shares outstanding			17,519,884				17,554,884				17,538,611				17,558,611				17,564,182
Weighted average basic shares			17,531,808				17,587,902				17,551,007				17,560,210				17,567,839
Weighted average diluted shares			17,531,808				17,587,902				17,551,007				17,560,210				17,567,839
Earnings per basic share		$	0.42			$	0.32			$	0.31			$	0.30			$	0.32
Earnings per diluted share			0.42				0.32				0.31				0.30				0.32
Adjusted earnings per diluted share(b)			0.44				0.35				0.34				0.33				0.31
Cash dividends declared per share			0.1125				0.1125				0.1125				0.1125				0.1100
Common book value per share			15.91				15.73				15.09				14.80				14.51
Tangible book value per common share(b)			12.95				12.76				12.10				11.79				11.49
Pre-provision net revenue(b)		$	9,509			$	7,788			$	7,576			$	7,744			$	8,592
Performance ratios:
Net interest margin (a)			2.84	%			2.64	%			2.68	%			2.69	%			2.70	%
Return on average assets			0.95				0.74				0.73				0.71				0.73
Operating return on average assets (b)			0.99				0.81				0.80				0.76				0.71
Return on average total equity			10.71				8.33				8.46				8.38				9.20
Operating return on average total equity (b)			11.18				9.18				9.22				9.10				8.90
Efficiency ratio			69.11				72.79				72.85				72.48				69.51
Operating efficiency ratio (b)			67.80				70.27				70.62				70.43				70.35
Net noninterest expense to average assets			1.40				1.41				1.45				1.45				1.35
Operating net noninterest expense to average assets(b)			1.35				1.32				1.36				1.38				1.38
ASSET QUALITY
Nonperforming portfolio loans		$	5,024			$	6,273			$	3,653			$	3,674			$	7,804
Nonperforming government guaranteed loans			5,636				5,942				3,016				2,757				2,035
Loans 90 days past due and still accruing			152				44				41				—				370
Total nonperforming loans (NPLs)			10,812				12,259				6,710				6,431				10,209
Other real estate owned			202				227				582				562				448
Repossessed assets			328				9				13				—				—
Total nonperforming assets (NPAs)			11,342				12,495				7,305				6,993				10,657
Classified loans			20,103				20,918				22,355				25,965				23,754
Criticized loans			49,387				52,062				44,850				55,065				56,879
Net loan charge-offs (recoveries)			1,534				139				667				664				692
Allowance for credit losses to total loans			1.03	%			1.04	%			1.01	%			1.00	%			0.98	%
Allowance for credit losses to total NPLs			175.55				160.40				280.27				290.11				179.95
Allowance for credit losses to total NPAs			167.34				157.37				257.44				266.80				172.38
Net charge-offs (recoveries) to average loans, net			0.33				0.03				0.14				0.14				0.15
NPLs to total loans			0.59				0.65				0.36				0.35				0.54
NPAs to total assets			0.36				0.41				0.24				0.23				0.35
NPAs to total loans and foreclosed assets			0.62				0.66				0.39				0.38				0.57
AVERAGE BALANCES
Total assets		$	3,108,762			$	3,038,947			$	3,010,486			$	3,036,093			$	3,027,812
Loans, net			1,832,564				1,862,986				1,850,451				1,853,077				1,860,652
Loans, held for sale			35,299				34,533				33,024				24,612				21,251
Deposits			2,568,824				2,504,101				2,492,479				2,543,259				2,538,500
Total stockholders’ equity			276,082				268,769				260,162				255,927				241,392
(a) Computed using fully taxable-equivalent net income.
(b) Non-GAAP measure – see “Explanation of Certain Unaudited Non-GAAP Financial Measures” for more information and reconciliation to GAAP.

Colony Bankcorp, Inc.
Average Balance Sheet and Net Interest Analysis
	Three Months Ended December 31,
	2024											2023
(dollars in thousands)	Average Balances				Income/ Expense				Yields/ Rates			Average Balances				Income/ Expense				Yields/ Rates
Assets
Interest-earning assets:
Loans, net of unearned income 1	$	1,886,927			$	28,539			6.02	%		$	1,899,413			$	27,069			5.65	%
Investment securities, taxable		704,677				4,759			2.69	%			743,308				5,221			2.79	%
Investment securities, tax-exempt 2		95,062				505			2.11	%			103,418				607			2.33	%
Deposits in banks and short term investments		202,059				2,361			4.65	%			51,874				489			3.74	%
Total interest-earning assets		2,888,725				36,164			4.98	%			2,798,013				33,386			4.73	%
Noninterest-earning assets		220,037											229,800
Total assets	$	3,108,762										$	3,027,813
Liabilities and stockholders’ equity
Interest-bearing liabilities:
Interest-bearing demand and savings	$	1,494,178			$	6,759			1.80	%		$	1,396,932			$	5,632			1.60	%
Other time		619,334				5,897			3.79	%			643,841				5,939			3.66	%
Total interest-bearing deposits		2,113,512				12,656			2.38	%			2,040,773				11,571			2.25	%
Federal funds purchased		—				—			—	%			53				1			6.28	%
Federal Home Loan Bank advances		185,000				1,905			4.10	%			158,913				1,624			4.06	%
Other borrowings		63,025				958			6.05	%			72,508				1,134			6.20	%
Total other interest-bearing liabilities		248,025				2,863			4.59	%			231,474				2,759			4.73	%
Total interest-bearing liabilities		2,361,537				15,519			2.61	%			2,272,247				14,330			2.50	%
Noninterest-bearing liabilities:
Demand deposits		455,312										$	497,727
Other liabilities		15,831											16,447
Stockholders’ equity		276,082											241,392
Total noninterest-bearing liabilities and stockholders’ equity		747,225											755,566
Total liabilities and stockholders’ equity	$	3,108,762										$	3,027,813
Interest rate spread									2.37	%										2.23	%
Net interest income					$	20,645										$	19,056
Net interest margin									2.84	%										2.70	%
______________________
1 The average balance of loans includes the average balance of nonaccrual loans. Income on such loans is recognized and recorded on the cash basis. Taxable-equivalent adjustments totaling $66,000 and $54,000 for the quarters ended December 31, 2024 and 2023, respectively, are calculated using the statutory federal tax rate and are included in income and fees on loans.  Accretion income of $12,000 and $5,000 for the quarters ended December 31, 2024 and 2023, respectively, are also included in income and fees on loans. 2 Taxable-equivalent adjustments totaling $106,000 and $127,000 for the quarters ended December 31, 2024 and 2023, respectively, are calculated using the statutory federal tax rate and are included in tax-exempt interest on investment securities.

Colony Bankcorp, Inc.
Average Balance Sheet and Net Interest Analysis
	Twelve Months Ended December 31,
	2024											2023
(dollars in thousands)	Average Balances				Income/ Expense				Yields/ Rates			Average Balances				Income/ Expense				Yields/ Rates
Assets
Interest-earning assets:
Loans, net of unearned income 3	$	1,900,386			$	111,904			5.89	%		$	1,850,043			$	99,472			5.38	%
Investment securities, taxable		720,986				19,270			2.67	%			770,707				21,388			2.78	%
Investment securities, tax-exempt 4		99,350				2,158			2.17	%			105,797				2,444			2.31	%
Deposits in banks and short term investments		106,381				4,592			4.32	%			63,806				2,341			3.67	%
Total interest-earning assets		2,827,103				137,924			4.88	%			2,790,353				125,645			4.50	%
Noninterest-earning assets		221,607											226,198
Total assets	$	3,048,710										$	3,016,551
Liabilities and stockholders’ equity
Interest-bearing liabilities:
Interest-bearing demand and savings	$	1,464,315			$	27,293			1.86	%		$	1,390,247			$	15,833			1.14	%
Other time		603,080				22,714			3.77	%			619,083				19,632			3.17	%
Total interest-bearing deposits		2,067,395				50,007			2.42	%			2,009,330				35,465			1.76	%
Federal funds purchased		4				—			5.94	%			2,783				147			5.29	%
Federal Home Loan Bank advances		176,421				7,211			4.09	%			160,548				6,763			4.21	%
Other borrowings		63,186				3,947			6.25	%			70,807				4,298			6.07	%
Total other interest-bearing liabilities		239,611				11,158			4.66	%			234,138				11,208			4.79	%
Total interest-bearing liabilities		2,307,006				61,165			2.65	%			2,243,468				46,673			2.08	%
Noninterest-bearing liabilities:
Demand deposits		459,822										$	519,225
Other liabilities		16,607											14,947
Stockholders’ equity		265,275											238,911
Total noninterest-bearing liabilities and stockholders’ equity		741,704											773,083
Total liabilities and stockholders’ equity	$	3,048,710										$	3,016,551
Interest rate spread									2.23	%										2.42	%
Net interest income					$	76,759										$	78,972
Net interest margin									2.72	%										2.83	%
______________________
3 The average balance of loans includes the average balance of nonaccrual loans.  Income on such loans is recognized and recorded on the cash basis.  Taxable-equivalent adjustments totaling $229,000 and $216,000 for the twelve months ended December 31, 2024 and 2023, respectively, are calculated using the statutory federal tax rate and are included in income and fees on loans.  Accretion income of $47,000 and $165,000 for the twelve months ended December 31, 2024 and 2023, respectively, are also included in income and fees on loans. 4  Taxable-equivalent adjustments totaling $453,000 and $513,000 for the twelve months ended December 31, 2024 and 2023, respectively, are included in tax-exempt interest on investment securities.

Colony Bankcorp, Inc.
Segment Reporting
		2024																2023
(dollars in thousands)		Fourth Quarter				Third Quarter				Second Quarter				First Quarter				Fourth Quarter
Banking Division
Net interest income		$	19,191			$	17,152			$	17,217			$	17,552			$	17,986
Provision for credit losses			309				698				96				455				979
Noninterest income			5,452				5,494				5,086				5,680				5,992
Noninterest expenses			17,616				17,075				17,135				17,129				16,619
Income taxes			927				1,017				1,060				1,166				1,365
Segment income		$	5,791			$	3,856			$	4,012			$	4,482			$	5,015
Total segment assets		$	2,985,856			$	2,955,145			$	2,889,013			$	2,910,102			$	2,956,121
Full time employees			376				375				385				377				378
Mortgage Banking Division
Net interest income		$	53			$	67			$	50			$	40			$	23
Provision for credit losses			—				—				—				—				—
Noninterest income			1,545				1,812				1,456				1,165				1,206
Noninterest expenses			1,699				1,533				1,326				1,218				1,203
Income taxes			(12	)			71				42				1				8
Segment income		$	(89	)		$	275			$	138			$	(14	)		$	18
Total segment assets		$	17,970			$	9,300			$	19,004			$	8,011			$	7,890
Variable noninterest expense(1)		$	764			$	1,005			$	807			$	603			$	597
Fixed noninterest expense			935				528				519				615				606
Full time employees			45				44				42				43				42
Small Business Specialty Lending Division
Net interest income		$	1,228			$	1,322			$	1,142			$	1,062			$	865
Provision for credit losses			341				52				554				545				521
Noninterest income			3,312				2,776				2,955				2,642				2,107
Noninterest expenses			1,957				2,227				1,869				2,050				1,765
Income taxes			512				321				350				244				121
Segment income		$	1,730			$	1,498			$	1,324			$	865			$	565
Total segment assets		$	105,956			$	100,658			$	99,890			$	97,396			$	89,411
Full time employees			34				33				33				31				33
Total Consolidated
Net interest income		$	20,472			$	18,541			$	18,409			$	18,654			$	18,874
Provision for credit losses			650				750				650				1,000				1,500
Noninterest income			10,309				10,082				9,497				9,487				9,305
Noninterest expenses			21,272				20,835				20,330				20,397				19,587
Income taxes			1,427				1,409				1,452				1,411				1,494
Segment income		$	7,432			$	5,629			$	5,474			$	5,333			$	5,598
Total segment assets		$	3,109,782			$	3,065,103			$	3,007,907			$	3,015,509			$	3,053,422
Full time employees			455				452				460				451				453
(1) Variable noninterest expense includes commission based salary expenses and volume based loan related fees.

Colony Bankcorp, Inc.
Consolidated Balance Sheets
		December 31, 2024				December 31, 2023
(dollars in thousands)		(unaudited)				(audited)
ASSETS
Cash and due from banks		$	26,045			$	25,339
Interest-bearing deposits in banks and federal funds sold			204,989				57,983
Cash and cash equivalents			231,034				83,322
Investment securities available for sale, at fair value			366,049				407,382
Investment securities held to maturity, at amortized cost			430,077				449,031
Other investments			17,694				16,868
Loans held for sale			39,786				27,958
Loans, net of unearned income			1,842,980				1,883,470
Allowance for credit losses			(18,980	)			(18,371	)
Loans, net			1,824,000				1,865,099
Premises and equipment			37,831				39,870
Other real estate			202				448
Goodwill			48,923				48,923
Other intangible assets			2,975				4,192
Bank owned life insurance			57,970				56,925
Deferred income taxes, net			21,891				25,405
Other assets			31,350				27,999
Total assets		$	3,109,782			$	3,053,422
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Deposits:
Noninterest-bearing		$	462,283			$	498,992
Interest-bearing			2,105,660				2,045,798
Total deposits			2,567,943				2,544,790
Federal Home Loan Bank advances			185,000				175,000
Other borrowed money			63,039				63,445
Accrued expenses and other liabilities			15,125				15,252
Total liabilities		$	2,831,107			$	2,798,487
Stockholders’ equity
Common stock, $1 par value; 50,000,000 shares authorized, 17,519,884 and 17,564,182 issued and outstanding, respectively		$	17,520			$	17,564
Paid in capital			168,353				168,614
Retained earnings			140,369				124,400
Accumulated other comprehensive loss, net of tax			(47,567	)			(55,643	)
Total stockholders’ equity			278,675				254,935
Total liabilities and stockholders’ equity		$	3,109,782			$	3,053,422

Colony Bankcorp, Inc.
Consolidated Statements of Income (unaudited)
		Three months ended December 31,								Twelve months ended December 31,
		2024				2023				2024				2023
(dollars in thousands, except per share data)
Interest income:
Loans, including fees		$	28,473			$	27,014			$	111,675			$	99,256
Investment securities			5,158				5,700				20,974				23,319
Deposits in banks and short term investments			2,360				489				4,592				2,341
Total interest income			35,991				33,203				137,241				124,916
Interest expense:
Deposits			12,656				11,571				50,007				35,464
Federal funds purchased			—				1				—				147
Federal Home Loan Bank advances			1,905				1,623				7,211				6,763
Other borrowings			958				1,134				3,947				4,298
Total interest expense			15,519				14,329				61,165				46,672
Net interest income			20,472				18,874				76,076				78,244
Provision for credit losses			650				1,500				3,050				3,600
Net interest income after provision for credit losses			19,822				17,374				73,026				74,644
Noninterest income:
Service charges on deposits			2,302				2,595				9,365				8,735
Mortgage fee income			1,545				1,203				6,048				6,131
Gain on sales of SBA loans			2,622				1,634				9,242				5,063
Loss on sales of securities			(401	)			—				(1,835	)			—
Interchange fees			2,030				2,059				8,299				8,460
BOLI income			412				372				1,725				1,396
Insurance commissions			471				452				1,789				1,873
Other			1,328				990				4,742				3,976
Total noninterest income			10,309				9,305				39,375				35,634
Noninterest expense:
Salaries and employee benefits			12,877				11,304				49,767				49,233
Occupancy and equipment			1,645				1,543				6,149				6,283
Information technology expenses			2,491				2,147				8,978				8,553
Professional fees			539				749				2,825				3,097
Advertising and public relations			1,118				1,054				4,009				3,486
Communications			213				237				865				947
Other			2,389				2,553				10,241				11,466
Total noninterest expense			21,272				19,587				82,834				83,065
Income before income taxes			8,859				7,092				29,567				27,213
Income taxes			1,427				1,494				5,699				5,466
Net income		$	7,432			$	5,598			$	23,868			$	21,747
Earnings per common share:
Basic		$	0.42			$	0.32			$	1.36			$	1.24
Diluted			0.42				0.32				1.36				1.24
Dividends declared per share			0.1125				0.1100				0.4500				0.4400
Weighted average common shares outstanding:
Basic			17,531,808				17,567,839				17,557,743				17,578,294
Diluted			17,531,808				17,567,839				17,557,743				17,578,294

Colony Bankcorp, Inc.
Quarterly Consolidated Statements of Income
		2024																2023
		Fourth Quarter				Third Quarter				Second Quarter				First Quarter				Fourth Quarter
(dollars in thousands, except per share data)		(unaudited)				(unaudited)				(unaudited)				(unaudited)				(audited)
Interest income:
Loans, including fees		$	28,473			$	28,501			$	27,604			$	27,097			$	27,014
Investment securities			5,158				5,248				5,048				5,520				5,700
Deposits in banks and short term investments			2,360				855				684				693				489
Total interest income			35,991				34,604				33,336				33,310				33,203
Interest expense:
Deposits			12,656				13,154				12,106				12,091				11,571
Federal funds purchased			—				—				—				—				1
Federal Home Loan Bank advances			1,905				1,913				1,821				1,572				1,623
Other borrowings			958				996				1,000				993				1,134
Total interest expense			15,519				16,063				14,927				14,656				14,329
Net interest income			20,472				18,541				18,409				18,654				18,874
Provision for credit losses			650				750				650				1,000				1,500
Net interest income after provision for credit losses			19,822				17,791				17,759				17,654				17,374
Noninterest income:
Service charges on deposits			2,302				2,401				2,288				2,373				2,595
Mortgage fee income			1,545				1,812				1,442				1,249				1,203
Gain on sales of SBA loans			2,622				2,227				2,347				2,046				1,634
Loss on sales of securities			(401	)			(454	)			(425	)			(555	)			—
Interchange fees			2,030				2,163				2,078				2,028				2,059
BOLI income			412				383				398				533				372
Insurance commissions			471				433				420				465				452
Other			1,328				1,117				949				1,348				990
Total noninterest income			10,309				10,082				9,497				9,487				9,305
Noninterest expense:
Salaries and employee benefits			12,877				12,594				12,277				12,018				11,304
Occupancy and equipment			1,645				1,523				1,475				1,507				1,543
Information technology expenses			2,491				2,150				2,227				2,110				2,147
Professional fees			539				748				704				834				749
Advertising and public relations			1,118				965				967				960				1,054
Communications			213				210				216				226				237
Other			2,389				2,645				2,464				2,742				2,553
Total noninterest expense			21,272				20,835				20,330				20,397				19,587
Income before income taxes			8,859				7,038				6,926				6,744				7,092
Income taxes			1,427				1,409				1,452				1,411				1,494
Net income		$	7,432			$	5,629			$	5,474			$	5,333			$	5,598
Earnings per common share:
Basic		$	0.42			$	0.32			$	0.31			$	0.30			$	0.32
Diluted			0.42				0.32				0.31				0.30				0.32
Dividends declared per share			0.1125				0.1125				0.1125				0.1125				0.1100
Weighted average common shares outstanding:
Basic			17,531,808				17,587,902				17,551,007				17,560,210				17,567,839
Diluted			17,531,808				17,587,902				17,551,007				17,560,210				17,567,839

Colony Bankcorp, Inc.
Quarterly Comparison
		2024																2023
(dollars in thousands, except per share data)		Fourth Quarter				Third Quarter				Second Quarter				First Quarter				Fourth Quarter
Assets		$	3,109,782			$	3,065,103			$	3,007,907			$	3,015,509			$	3,053,422
Loans, net			1,824,000				1,866,374				1,846,768				1,840,361				1,865,099
Deposits			2,567,943				2,524,970				2,460,225				2,522,748				2,544,790
Total equity			278,675				276,052				264,743				259,914				254,935
Net income			7,432				5,629				5,474				5,333				5,598
Earnings per basic share		$	0.42			$	0.32			$	0.31			$	0.30			$	0.32
Key Performance Ratios:
Return on average assets			0.95	%			0.74	%			0.73	%			0.71	%			0.73	%
Operating return on average assets (a)			0.99	%			0.81	%			0.80	%			0.76	%			0.71	%
Return on average total equity			10.71	%			8.33	%			8.46	%			8.38	%			9.20	%
Operating return on average total equity (a)			11.18	%			9.18	%			9.22	%			9.10	%			8.90	%
Total equity to total assets			8.96	%			9.01	%			8.80	%			8.62	%			8.35	%
Tangible equity to tangible assets (a)			7.42	%			7.43	%			7.18	%			6.99	%			6.73	%
Net interest margin			2.84	%			2.64	%			2.68	%			2.69	%			2.70	%
(a) Non-GAAP measure – see “Explanation of Certain Unaudited Non-GAAP Financial Measures” for more information and reconciliation to GAAP.

Colony Bankcorp, Inc.
Quarterly Deposits Composition Comparison
		2024																2023
(dollars in thousands)		Fourth Quarter				Third Quarter				Second Quarter				First Quarter				Fourth Quarter
Noninterest-bearing demand		$	462,283			$	439,892			$	437,623			$	476,413			$	498,992
Interest-bearing demand			813,783				769,123				788,674				802,596				759,299
Savings			687,603				684,371				670,848				650,188				660,311
Time, $250,000 and over			185,176				198,942				168,856				173,386				167,680
Other time			419,098				432,642				394,224				420,165				458,508
Total		$	2,567,943			$	2,524,970			$	2,460,225			$	2,522,748			$	2,544,790

Colony Bankcorp, Inc.
Quarterly Deposits by Location Comparison
		2024																2023
(dollars in thousands)		Fourth Quarter				Third Quarter				Second Quarter				First Quarter				Fourth Quarter
Coastal Georgia		$	145,828			$	142,580			$	144,021			$	138,103			$	137,398
Middle Georgia			279,360				269,144				275,758				286,697				265,788
Atlanta and North Georgia			318,927				321,808				336,338				333,856				334,003
South Georgia			1,217,433				1,165,529				1,110,049				1,132,701				1,134,662
West Georgia			337,818				357,450				365,380				378,764				384,750
Brokered deposits			59,499				70,999				39,240				59,019				93,561
Reciprocal deposits			209,078				197,460				189,439				193,608				194,628
Total		$	2,567,943			$	2,524,970			$	2,460,225			$	2,522,748			$	2,544,790

Colony Bankcorp, Inc.
Quarterly Loan Comparison
		2024																2023
(dollars in thousands)		Fourth Quarter				Third Quarter				Second Quarter				First Quarter				Fourth Quarter
Core		$	1,720,444			$	1,759,600			$	1,732,843			$	1,718,284			$	1,729,866
Purchased			122,536				126,437				132,731				140,734				153,604
Total		$	1,842,980			$	1,886,037			$	1,865,574			$	1,859,018			$	1,883,470

Colony Bankcorp, Inc.
Quarterly Loans by Composition Comparison
		2024																2023
(dollars in thousands)		Fourth Quarter				Third Quarter				Second Quarter				First Quarter				Fourth Quarter
Construction, land & land development		$	205,046			$	196,390			$	199,916			$	234,000			$	247,146
Other commercial real estate			990,648				1,012,466				985,102				971,205				974,649
Total commercial real estate			1,195,694				1,208,856				1,185,018				1,205,205				1,221,795
Residential real estate			344,167				349,777				360,847				347,277				355,973
Commercial, financial & agricultural			213,910				242,389				242,205				239,837				242,743
Consumer and other			89,209				85,015				77,504				66,699				62,959
Total		$	1,842,980			$	1,886,037			$	1,865,574			$	1,859,018			$	1,883,470

Colony Bankcorp, Inc.
Quarterly Loans by Location Comparison
		2024																2023
(dollars in thousands)		Fourth Quarter				Third Quarter				Second Quarter				First Quarter				Fourth Quarter
Alabama		$	45,365			$	46,630			$	44,575			$	44,806			$	45,594
Florida			13,135				12,280				2,753				1,579				40
Augusta			76,492				59,557				64,465				71,483				65,284
Coastal Georgia			224,609				220,452				228,844				232,557				243,492
Middle Georgia			121,059				120,843				124,268				121,131				118,806
Atlanta and North Georgia			427,046				432,377				427,568				425,753				426,724
South Georgia			384,907				427,887				413,098				409,681				436,728
West Georgia			169,699				184,634				184,365				183,679				187,751
Small Business Specialty Lending			81,636				79,967				75,182				71,196				68,637
Consumer Portfolio Mortgages			250,555				253,481				257,772				261,204				255,771
Marine/RV Lending			46,941				45,785				41,922				35,017				33,191
Other			1,536				2,144				762				932				1,452
Total		$	1,842,980			$	1,886,037			$	1,865,574			$	1,859,018			$	1,883,470

Colony Bankcorp, Inc.
Classified Loans
		2024																	2023
(dollars in thousands)		Fourth Quarter				Third Quarter				Second Quarter				First Quarter					Fourth Quarter
		$			#	$			#	$			#	$			#		$			#
Construction, land & land development		$	—		—	$	—		—	$	54		3	$	572		11		$	1,063		14
Other commercial real estate			13,367		38		13,338		36		13,990		34		13,918		46			10,219		39
Residential real estate			1,265		83		1,554		85		2,168		104		5,896		183			7,103		187
Commercial, financial & agricultural			5,407		70		6,005		61		6,075		54		5,487		70			5,284		58
Consumer and other			64		22		21		23		68		24		92		67			85		76
TOTAL		$	20,103		213	$	20,918		205	$	22,355		219	$	25,965		377		$	23,754		374
Classified loans to total loans			1.09	%			1.11	%			1.20	%			1.40	%				1.26	%
Colony Bankcorp, Inc.
Criticized Loans
		2024																	2023
(dollars in thousands)		Fourth Quarter				Third Quarter				Second Quarter				First Quarter					Fourth Quarter
		$			#	$			#	$			#	$			#		$			#
Construction, land & land development		$	2,865		9	$	4,418		9	$	626		6	$	1,543		18		$	2,192		21
Other commercial real estate			32,077		65		32,790		64		31,544		59		31,498		46			27,445		77
Residential real estate			5,504		89		5,389		90		5,431		107		13,050		249			14,275		253
Commercial, financial & agricultural			8,877		76		9,444		68		7,181		59		8,609		114			12,686		106
Consumer and other			64		22		21		23		68		24		365		85			281		92
TOTAL		$	49,387		261	$	52,062		254	$	44,850		255	$	55,065		512		$	56,879		549
Criticized loans to total loans			2.68	%			2.76	%			2.40	%			2.96	%				3.02	%

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250122978159/en/

Derek Shelnutt

EVP & Chief Financial Officer

229-426-6000, extension 6119

KEYWORDS: Georgia United States North America

INDUSTRY KEYWORDS: Banking Professional Services Finance

MEDIA:

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