Business Wire | Apr 22, 2021 04:30PM EDT

Colony Bankcorp Reports First Quarter 2021 Results

Apr. 22, 2021

FITZGERALD, Ga.--(BUSINESS WIRE)--Apr. 22, 2021--Colony Bankcorp, Inc. (Nasdaq: CBAN) ("Colony" or the "Company") today reported net income of $4.9 million, $0.52 per diluted share, for the quarter ended March 31, 2021, compared with $1.6 million, or $0.17 per diluted share, for the quarter ended March 31, 2020. The Company reported operating net income of $5.1 million, or $0.53 per diluted share, for the quarter ended March 31, 2021, compared with $1.8 million, or $0.19 per diluted share for the same period in 2020. Operating net income for March 31, 2021 and 2020 excludes after-tax acquisition related expenses, and the net income tax expense (benefit) for the adjustments.

First Quarter 2021 Financial Highlights:

* Net income remained stable at $4.9 million, or $0.52 per diluted share, compared to the fourth quarter of 2020. * Operating net income of $5.1 million, or $0.53 per diluted share, an increase of $845,000, or $0.09, compared to the fourth quarter of 2020 (see Non-GAAP reconciliation). * Growth in total assets of $35.1 million, or 1.99%, compared to the fourth quarter of 2020. * Increase in noninterest income from mortgage banking activity of $550,000 compared to the fourth quarter of 2020. * $500,000 provision for loan losses, a decrease of $796,000, or 61.4%, compared to the fourth quarter 2020. * Mortgage production of $101.7 million, with $40.0 million in refinances, $56.7 million in purchases, and $5.0 million in construction related loans. * Small Business Specialty Lending ("SBSL") closed $64.0 million in SBA loans ($46.9 million in PPP loans and $17.1 million in core SBA loans) and sold $11.8 million in SBA loans.

The Company also announced that on April 22, 2021, the Board of Directors declared a quarterly cash dividend of $0.1025 per share, to be paid on its common stock on May 17, 2021, to shareholders of record as of the close of business on May 3, 2021.

Commenting on the announcement, Heath Fountain, President and Chief Executive Officer, said, "While we continue to operate in a highly uncertain and difficult environment due to the ongoing pandemic, we remain optimistic based on our financial achievements and solid credit metrics. I am pleased to report strong earnings growth for the first quarter. Diluted earnings per share increased 205% over the same period last year to $0.52 per diluted share. First quarter saw continued strength in mortgage banking income as well as in our Small Business Specialty Lending Division, with significant increases in both on a year-over-year and sequential quarter basis. We also experienced growth in our balance sheet metrics for the period, including growth in total deposits and total assets, while organic loan growth increased 5%. We continue to actively participate in the latest round of the Small Business Administration ("SBA") Paycheck Protection Program ("PPP") enacted as part of the Coronavirus Aid, Relief and Economic Security Act.

"Net interest income increased 12.4% year-over-year despite lower yields on loans and deposits held at other banks, as well as lower interest expenses. Due to continued pressure on interest rates and low rates on PPP loans, our net interest margin decreased 13 basis points to 3.50% compared with the year-earlier period.

"Our continuing efforts to diversify our revenue streams produced multiple gains. Noninterest income saw very strong growth, increasing 90% year over year, with mortgage fee income increasing to $4.0 million in the current quarter compared to $1.3 million in the first quarter of 2020. This increase in noninterest income was offset by increases in noninterest expense, such as salaries and employee benefits due to the additional headcount, as well as increases in information technology to support our growth.

"We took a lower provision for loan loss of $500,000 this quarter, a substantial decrease from the $2.0 million in the first quarter of 2020, primarily due to performance of loans as well as increased clarity in the current operating environment. Our allowance for loan and lease losses now represents 1.19% of total loans outstanding, an increase from 0.85% in the year-earlier quarter and 1.14% on a sequential-quarter basis. Total nonperforming assets decreased to 0.62% of total assets from 0.91% in the year-earlier quarter, and slightly increased from 0.58% on a sequential-quarter basis.

"We ended the year with total interest earning assets of $1.7 billion, up $260.0 million, or 18%, while growing total assets to $1.8 billion, a record for the Company. Total loans, including acquisition activity and loans from the Small Business Administration Paycheck Protection Program ("PPP"), increased 10% year-over-year, while organic loan growth increased 5%

In closing, Fountain added, "We have strived to pursue a vision of community banking that we have advanced since our founding. Our solid quarter and credit metrics allows us to continue to execute our business model while staying true to our community banking heritage. Our Board remains confident in our strategic business model as evidenced by the continued dividend payment. We look forward to the coming year with excitement and optimism as we grow our Bank and reward our shareholders."

Balance Sheet

* Total assets totaled $1.8 billion at March 31, 2021, an increase of $289.0 million, or 19.1%, compared to the same period in 2020. * Interest-bearing deposits in banks and federal funds sold at March 31, 2021, totaled $165.4 million, an increase of $90.2 million, or 120.0% compared to the same period in 2020. The increase is primarily attributable to the funding of approximately 2,400 PPP loans beginning in second quarter 2020, which also generated growth in our interest-bearing deposits in banks as of March 31, 2021. * Total loans, including loans held for sale, totaled $1.09 billion at March 31, 2021, an increase of $91.2 million, or 9.1%, from the same period in 2020. Growth in core loans was primarily attributable to PPP loan originations, while mortgage demand substantially increased during 2020 into 2021 as a result of historically low interest rates. * Total deposits totaled $1.53 billion at March 31, 2021, an increase of $233.6 million, or 18.1%, compared to the same period in 2020. The increase in deposits was primarily in noninterest-bearing and interest bearing demand deposits as a result of the PPP loan activity during 2020 and 2021. * Total borrowings at March 31, 2021, totaled $120.6 million, an increase of $81.3 million or 94.8% compared to the same period in 2020. While the Company prepaid $24.5 million in FHLB advances, funding of PPP loans through the Paycheck Protection Program Liquidity Facility ("PPPLF") increased outstanding borrowings substantially during 2020. At March 31, 2021, the PPPLF totaled $60.6 million with comparison to prior year not applicable.

Capital

* Colony continues to maintain a strong capital position, with ratios that exceed regulatory minimums required to be classified as "well-capitalized." * Preliminary tier one leverage ratio, tier one capital ratio, total risk-based capital ratio and common equity tier one capital ratio were 8.70%, 12.49%, 13.57%, and 10.49%, respectively at March 31, 2021.

First Quarter Results of Operations

* Net interest income on a tax-equivalent basis for the first quarter 2021 totaled $14.3 million, compared to $12.7 million for the first quarter 2020. The increase during the quarter is primarily attributable to increases in accretion income on acquired loans and loan fee income recognized on PPP loans forgiven and a decrease in the cost of interest-bearing liabilities. * Net interest margin was down 13 basis points over the sequential quarter primarily driven by decreased accretion income on acquired loans, a decrease in deferred fee income recognized on PPP loans and reductions in loan rates driven by Federal Reserve interest rate decreases during 2020. During the quarter ended March 31, 2021, PPP loans totaling approximately $45.4 million were forgiven through the SBA, with an additional $46.9 million of PPP loans closed related to Round 2. * Noninterest income totaled $8.6 million for the first quarter ended March 31, 2021, an increase of $4.1 million, or 90.3%, compared to the same period in 2020. The increase was primarily attributable to growth in mortgage production income as a result of increased loan demand resulting from a historically low interest rate environment. * Noninterest expense totaled $15.8 million for the first quarter ended March 31, 2021, compared to $13.3 million for the same period in 2020. The increase in noninterest expense primarily resulted from a $2.5 million increase in salary expense largely related to the increase in mortgage and SBSL loan production.

Asset Quality

* Nonperforming assets totaled $11.2 million and $10.2 million at March 31, 2021 and December 31, 2020, respectively. * OREO and repossessed assets totaled $547,000 at March 31, 2021, a decrease of $489,000, or 47.2%, compared to December 31, 2020. * Net loan recoveries were $66,000, or (0.02%) of average loans for the first quarter of 2021, compared to net charge-offs of $189,000 in the fourth quarter of 2020. * The loan loss reserve was $12.7 million, or 1.19% of total loans, at March 31, 2021, compared to $12.1 million, or 1.14% of total loans, at December 31, 2020.

While nonperforming assets have increased year-over-year primarily as a result of increased traditional loan production, asset quality remains strong with overall improvement in asset quality ratios as of the first quarter 2021 on a year-over-year comparison.

About Colony Bankcorp

Colony Bankcorp, Inc. is the bank holding company for Colony Bank. Founded in 1975 and headquartered in Fitzgerald, Georgia, Colony operates 29 locations throughout Georgia. The Homebuilder Finance Division helps the local construction industry with building and construction loans, and the Small Business Specialty Lending Division assists small businesses with government guaranteed loans. The Bank also helps its customers achieve their goal of home ownership through Colony Bank Mortgage. Colony's common stock is traded on the NASDAQ Global Market under the symbol "CBAN." For more information, please visit www.colony.bank. You can also follow the Company on Facebook or on Twitter @colony_bank.

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; (v) statements regarding the potential effects of the COVID-19 pandemic on the Company's business and financial results and conditions; and (vi) 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.

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 the COVID-19 pandemic on the Company's assets, business, cash flows, financial condition, liquidity, prospects and results of operations; potential increases in the provision for loan losses resulting from the COVID-19 pandemic; the Company's ability to implement its various strategic and growth initiatives; competitive pressures among financial institutions increasing significantly; economic conditions, either nationally or locally, in areas in which the Company conducts operations being less favorable than expected; interest rate risk; legislation or regulatory changes which adversely affect the ability of the consolidated Company to conduct business combinations or new operations, including changes to statutes, regulations or regulatory policies or practices as a result of, or in response to COVID-19; 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 related to the COVID-19 pandemic; risks that the anticipated benefits from the acquisition and disposition transactions we have engaged in or may engage in the future are not realized in the time frame anticipated or at all as a result of changes in general economic 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, 2020, 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 net income; adjusted earnings per diluted share; tangible book value per common share and operating efficiency ratio 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 net income, diluted earnings per share, book value per common share and efficiency ratio, respectively.

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 net income; adjusted earnings per diluted share; tangible book value per common share and operating efficiency ratio and the reconciliation of these measures to net income, diluted earnings per share, book value per common share and efficiency ratio are set forth in the table below.

Colony Bankcorp, Inc.

Reconciliation of Non-GAAP Measures



2021 2020

(dollars in Fourth Secondthousands, except First Quarter Quarter Third Quarter Quarter First Quarterper share data)

Operating netincome reconciliation

Net income (GAAP) $ 4,919 $ 4,900 $ 3,098 $ 2,214 $ 1,603

Acquisition-related 105 148 207 220 287 expenses

Thomaston building - - 582 - - write down

Gain on sale of - (1,026 ) - - - Thomaston branch

Income tax expense 27 184 (166 ) (46 ) (60 )(benefit)

Operating net $ 5,051 $ 4,206 $ 3,721 $ 2,388 $ 1,830 income

Weighted average 9,498,783 9,498,783 9,498,783 9,498,783 9,498,783 diluted shares

Adjusted earnings $ 0.53 $ 0.44 $ 0.39 $ 0.25 $ 0.19 per diluted share



Tangible book valueper common share reconciliation

Book value per $ 15.11 $ 15.21 $ 14.78 $ 14.59 $ 14.35 common share (GAAP)

Effect of goodwilland other (1.97 ) (1.95 ) (1.96 ) (1.96 ) (2.06 )intangibles

Tangible book value $ 13.14 $ 13.26 $ 12.82 $ 12.63 $ 12.29 per common share



Operatingefficiency ratio calculation

Efficiency ratio 69.04 % 68.93 % 76.22 % 72.75 % 77.32 %(GAAP)

Acquisition-related (0.46 ) (0.64 ) (0.97 ) (1.20 ) (1.68 )expenses

Gain on sale of - % 3.19 % - % - % - %Thomaston branch

Thomaston building - % - % (2.72 ) - % - %write down %

Operating 68.58 % 71.49 % 72.53 % 71.55 % 75.64 %efficiency ratio

Colony Bankcorp, Inc.Selected Financial Information

2021

2020

(dollars in thousands, except per share data)

First Quarter

Fourth Quarter

Third Quarter

Second Quarter

First Quarter

EARNINGS SUMMARY

Net interest income

$

14,283

$

15,151

$

13,848

$

13,541

$

12,704

Provision for loan losses

500

1,296

1,106

2,200

1,956

Non-interest income

8,576

8,039

6,930

4,843

4,526

Non-interest expense

15,782

15,986

15,690

13,375

13,343

Income taxes

1,658

1,008

884

595

328

Net income

4,919

4,900

3,098

2,214

1,603

PERFORMANCE MEASURES

Per common share:

Common shares outstanding

9,498,783

9,498,783

9,498,783

9,498,783

9,498,783

Weighted average basic shares

9,498,783

9,498,783

9,498,783

9,498,783

9,498,783

Weighted average diluted shares

9,498,783

9,498,783

9,498,783

9,498,783

9,498,783

Earnings per basic share

$

0.52

$

0.52

$

0.33

$

0.23

$

0.17

Earnings per diluted share

0.52

0.52

0.33

0.23

0.17

Adjusted earnings per diluted share

0.53

0.44

0.39

0.25

0.34

Cash dividends declared per share

0.10

0.10

0.10

0.10

0.10

Common book value per share

15.11

15.21

14.78

14.59

14.35

Tangible common book value per share

13.14

13.26

12.82

12.63

12.29

Performance ratios:

Net interest margin (a)

3.50

%

3.58

%

3.34

%

3.41

%

3.63

%

Return on average assets

1.12

1.08

0.70

0.52

0.42

Return on average total equity

13.71

13.73

8.80

6.47

4.79

Efficiency ratio

69.04

68.93

76.22

72.75

77.32

Operating efficiency ratio (b)

68.58

71.49

72.53

71.55

75.64

ASSET QUALITY

Nonperforming loans (NPLs)

$

10,676

$

9,128

$

9,926

$

11,459

$

10,130

Other real estate owned

518

1,006

1,875

1,769

847

Repossessed assets

29

30

11

17

19

Total nonperforming assets (NPAs)

11,223

10,164

11,812

13,245

10,996

Classified loans

35,182

30,404

21,388

20,619

23,093

Criticized loans

80,288

75,633

72,076

52,200

46,600

Net loan (recoveries)/charge-offs

(66

)

189

375

295

435

Allowance for loan losses to total loans

1.19

%

1.14

%

1.00

%

0.92

%

0.85

%

Allowance for loan losses to total NPLs

118.89

132.85

111.02

89.79

64.81

Allowance for loan losses to total NPAs

113.10

119.31

93.29

77.68

60.83

Net (recoveries)/charge-offs to average loans

(0.02

)

0.07

0.13

0.12

0.18

NPLs to total loans

1.00

0.86

0.90

1.03

1.13

NPAs to total assets

0.62

0.58

0.67

0.75

0.91

NPAs to total loans and other real estate owned

1.06

0.96

1.07

1.19

1.39

AVERAGE BALANCES

Total assets

$

1,774,123

$

1,797,749

$

1,766,717

$

1,702,902

$

1,516,191

Loans, net

1,079,007

1,151,872

1,130,231

1,094,299

974,614

Deposits

1,475,944

1,456,287

1,140,487

1,384,739

1,293,784

Total stockholders' equity

145,515

141,570

139,721

137,213

134,304

(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.Selected Financial Information



2021 2020

(dollars inthousands, First Quarter Fourth Third Quarter Second First Quarterexcept per Quarter Quartershare data)

EARNINGS SUMMARY

Net interest $ 14,283 $ 15,151 $ 13,848 $ 13,541 $ 12,704 income

Provision for 500 1,296 1,106 2,200 1,956 loan losses

Non-interest 8,576 8,039 6,930 4,843 4,526 income

Non-interest 15,782 15,986 15,690 13,375 13,343 expense

Income taxes 1,658 1,008 884 595 328

Net income 4,919 4,900 3,098 2,214 1,603

PERFORMANCE MEASURES

Per common share:

Common shares 9,498,783 9,498,783 9,498,783 9,498,783 9,498,783 outstanding

Weightedaverage basic 9,498,783 9,498,783 9,498,783 9,498,783 9,498,783 shares

Weightedaverage 9,498,783 9,498,783 9,498,783 9,498,783 9,498,783 dilutedshares

Earnings per $ 0.52 $ 0.52 $ 0.33 $ 0.23 $ 0.17 basic share

Earnings per 0.52 0.52 0.33 0.23 0.17 diluted share

Adjustedearnings per 0.53 0.44 0.39 0.25 0.34 diluted share

Cashdividends 0.10 0.10 0.10 0.10 0.10 declared pershare

Common bookvalue per 15.11 15.21 14.78 14.59 14.35 share

Tangiblecommon book 13.14 13.26 12.82 12.63 12.29 value pershare



Performance ratios:

Net interest 3.50 % 3.58 % 3.34 % 3.41 % 3.63 %margin^ (a)

Return onaverage 1.12 1.08 0.70 0.52 0.42 assets

Return onaverage total 13.71 13.73 8.80 6.47 4.79 equity

Efficiency 69.04 68.93 76.22 72.75 77.32 ratio

Operatingefficiency 68.58 71.49 72.53 71.55 75.64 ratio ^(b)



ASSET QUALITY

Nonperforming $ 10,676 $ 9,128 $ 9,926 $ 11,459 $ 10,130 loans (NPLs)

Other real 518 1,006 1,875 1,769 847 estate owned

Repossessed 29 30 11 17 19 assets

Totalnonperforming 11,223 10,164 11,812 13,245 10,996 assets (NPAs)

Classified 35,182 30,404 21,388 20,619 23,093 loans

Criticized 80,288 75,633 72,076 52,200 46,600 loans

Net loan(recoveries)/ (66 ) 189 375 295 435 charge-offs

Allowance forloan losses 1.19 % 1.14 % 1.00 % 0.92 % 0.85 %to totalloans

Allowance forloan losses 118.89 132.85 111.02 89.79 64.81 to total NPLs

Allowance forloan losses 113.10 119.31 93.29 77.68 60.83 to total NPAs

Net(recoveries)/charge-offs (0.02 ) 0.07 0.13 0.12 0.18 to averageloans

NPLs to total 1.00 0.86 0.90 1.03 1.13 loans

NPAs to total 0.62 0.58 0.67 0.75 0.91 assets

NPAs to totalloans and 1.06 0.96 1.07 1.19 1.39 other realestate owned



AVERAGE BALANCES

Total assets $ 1,774,123 $ 1,797,749 $ 1,766,717 $ 1,702,902 $ 1,516,191

Loans, net 1,079,007 1,151,872 1,130,231 1,094,299 974,614

Deposits 1,475,944 1,456,287 1,140,487 1,384,739 1,293,784

Totalstockholders' 145,515 141,570 139,721 137,213 134,304 equity

(a) Computed using fully taxable-equivalent net income.

(b) Non-GAAP measure - see "Explanation of Certain Unaudited Non-GAAP FinancialMeasures" for more information and reconciliation to GAAP

Colony Bankcorp, Inc.

Average Balance Sheet and Net Interest Analysis

(dollars in thousands)

Three Months Ended March 31,

2021

2020

Average

Balances

Income/

Expense

Yields/

Rates

Average

Balances

Income/

Expense

Yields/

Rates

Assets

Interest-earning assets:

Loans, net of unearned income 1

$

1,079,007

$

13,638

5.13

%

$

980,185

$

13,352

5.52

%

Investment securities, taxable

371,265

1,628

1.78

%

339,565

1,988

2.37

%

Investment securities, tax-exempt 2

32,616

155

1.93

%

923

7

3.08

%

Deposits in banks and short term investments

183,376

53

0.12

%

85,869

284

1.34

%

Total interest-earning assets

1,666,264

15,474

3.77

%

1,406,542

15,631

4.51

%

Noninterest-earning assets

107,859

103,381

Total assets

$

1,774,123

$

1,509,923

Liabilities and stockholders' equity

Interest-bearing liabilities:

Interest-earning demand and savings

$

859,462

$

165

0.08

%

$

734,102

$

936

0.52

%

Other time

260,438

488

0.76

%

334,811

1,282

1.55

%

Total interest-bearing deposits

1,119,900

653

0.24

%

1,068,913

2,218

0.84

%

Federal Home Loan Bank advances

22,500

113

2.05

%

45,577

257

2.29

%

Paycheck Protection Program Liquidity Facility

60,602

68

0.46

%

-

-

-

%

Other borrowings

61,654

257

1.68

%

38,792

389

4.07

%

Total other interest-bearing liabilities

144,756

438

1.23

%

84,369

646

3.11

%

Total interest-bearing liabilities

1,264,656

1,091

0.35

%

1,153,282

2,864

1.01

%

Noninterest-bearing liabilities:

Demand deposits

$

356,044

$

220,356

Other liabilities

7,908

6,068

Stockholders' equity

145,515

130,217

Total noninterest-bearing liabilities and stockholders' equity

509,467

356,641

Total liabilities and stockholders' equity

$

1,774,123

$

1,509,923

Interest rate spread

3.42

%

3.50

%

Net interest income

$

14,383

$

12,767

Net interest margin

3.50

%

3.68

%

Colony Bankcorp, Inc.

Average Balance Sheet and Net Interest Analysis

(dollars in thousands)

Three Months Ended March 31,

2021 2020

Average Income/ Yields Average Income/ Yields / / Balances Expense Balances Expense Rates Rates

Assets

Interest-earning assets:

Loans, net of $ 1,079,007 $ 13,638 5.13 % $ 980,185 $ 13,352 5.52 %unearned income ^1

Investment 371,265 1,628 1.78 % 339,565 1,988 2.37 %securities, taxable

Investmentsecurities, 32,616 155 1.93 % 923 7 3.08 %tax-exempt ^2

Deposits in banksand short term 183,376 53 0.12 % 85,869 284 1.34 %investments

Totalinterest-earning 1,666,264 15,474 3.77 % 1,406,542 15,631 4.51 %assets

Noninterest-earning 107,859 103,381 assets

Total assets $ 1,774,123 $ 1,509,923

Liabilities andstockholders' equity

Interest-bearing liabilities:

Interest-earning $ 859,462 $ 165 0.08 % $ 734,102 $ 936 0.52 %demand and savings

Other time 260,438 488 0.76 % 334,811 1,282 1.55 %

Totalinterest-bearing 1,119,900 653 0.24 % 1,068,913 2,218 0.84 %deposits

Federal Home Loan 22,500 113 2.05 % 45,577 257 2.29 %Bank advances

Paycheck ProtectionProgram Liquidity 60,602 68 0.46 % - - - %Facility

Other borrowings 61,654 257 1.68 % 38,792 389 4.07 %

Total otherinterest-bearing 144,756 438 1.23 % 84,369 646 3.11 %liabilities

Totalinterest-bearing 1,264,656 1,091 0.35 % 1,153,282 2,864 1.01 %liabilities

Noninterest-bearing liabilities:

Demand deposits $ 356,044 $ 220,356

Other liabilities 7,908 6,068

Stockholders' 145,515 130,217 equity

Totalnoninterest-bearingliabilities and 509,467 356,641 stockholders'equity

Total liabilitiesand stockholders' $ 1,774,123 $ 1,509,923 equity

Interest rate 3.42 % 3.50 %spread

Net interest income $ 14,383 $ 12,767

Net interest margin 3.50 % 3.68 %

_________________________________________1The 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 $55,000 for the quarter ended March 31, 2021 and 2020, respectively, are included in income and fees on loans. Accretion income of $209,000 and $182,000 for the quarter ended March 31, 2021 and 2020 are also included in income and fees on loans.

2Taxable-equivalent adjustments totaling $33,000 and $2,000 quarter ended March 31, 2021 and 2020, respectively, are included in tax-exempt interest on investment securities. The adjustments are based on federal tax rate of 21% and a Georgia state tax rate of 5.75% with appropriate reductions for the effect of disallowed interest expense incurred in carrying tax-exempt obligations.

_________________________________________^1The average balance of loans includes the average balance of nonaccrualloans. Income on such loans is recognized and recorded on the cash basis.Taxable-equivalent adjustments totaling $66,000 and $55,000 for the quarterended March 31, 2021 and 2020, respectively, are included in income and fees onloans. Accretion income of $209,000 and $182,000 for the quarter ended March31, 2021 and 2020 are also included in income and fees on loans.

^2Taxable-equivalent adjustments totaling $33,000 and $2,000 quarter endedMarch 31, 2021 and 2020, respectively, are included in tax-exempt interest oninvestment securities. The adjustments are based on federal tax rate of 21% anda Georgia state tax rate of 5.75% with appropriate reductions for the effect ofdisallowed interest expense incurred in carrying tax-exempt obligations.

Colony Bankcorp, Inc.

Segment Reporting

2021

2020

(dollars in thousands)

First Quarter

Fourth Quarter

Third Quarter

Second Quarter

First Quarter

Banking Division

Net interest income

$

13,985

$

14,752

$

13,631

$

13,440

$

12,656

Provision for loan losses

500

1,296

1,106

2,200

1,956

Noninterest income

3,005

3,952

4,139

2,901

3,049

Noninterest expenses

11,960

11,656

12,415

10,158

11,667

Income taxes

1,160

973

2,967

842

368

Segment income

$

3,370

$

4,779

$

1,282

$

3,141

$

1,714

Total segment assets

$

1,755,667

$

1,709,696

$

1,666,742

$

1,726,219

$

1,497,788

Full time employees

291

305

312

321

319

Mortgage Banking Division

Net interest income

$

168

$

299

$

188

$

82

$

34

Provision for loan losses

-

-

-

-

-

Noninterest income

3,986

3,420

2,612

1,821

1,253

Noninterest expenses

2,793

2,835

2,410

1,697

1,195

Income taxes

354

188

820

43

11

Segment income

$

1,007

$

696

$

(430)

$

163

$

81

Total segment assets

$

27,478

$

50,266

$

50,265

$

17,578

$

11,082

Full time employees

51

43

41

40

34

Small Business Specialty Lending Division

Net interest income

$

130

$

100

$

1,483

$

19

$

14

Provision for loan losses

-

-

-

-

-

Noninterest income

1,585

667

1,183

121

259

Noninterest expenses

1,029

1,495

924

1,520

516

Income taxes

144

(153)

198

(290)

(51)

Segment income

$

542

$

(575)

$

1,544

$

(1,090)

$

(192)

Total segment assets

$

107,623

$

405

$

107,623

$

405

$

1,178

Full time employees

23

21

15

13

12

Total Consolidated

Net interest income

$

14,283

$

15,151

$

15,302

$

13,541

$

12,704

Provision for loan losses

500

1,296

1,106

2,200

1,956

Noninterest income

8,576

8,039

7,934

4,843

4,561

Noninterest expenses

15,782

15,986

15,749

13,375

13,378

Income taxes

1,658

1,008

3,985

595

328

Segment income

$

4,919

$

4,900

$

2,396

$

2,214

$

1,603

Total segment assets

$

1,890,768

$

1,763,974

$

1,824,630

$

1,744,202

$

1,510,048

Full time employees

365

369

368

374

365

Colony Bankcorp, Inc.

Segment Reporting

2021 2020

(dollars in First Quarter Fourth Third Quarter Second First Quarterthousands) Quarter Quarter

Banking Division

Net interest $ 13,985 $ 14,752 $ 13,631 $ 13,440 $ 12,656 income

Provisionfor loan 500 1,296 1,106 2,200 1,956 losses

Noninterest 3,005 3,952 4,139 2,901 3,049 income

Noninterest 11,960 11,656 12,415 10,158 11,667 expenses

Income taxes 1,160 973 2,967 842 368

Segment $ 3,370 $ 4,779 $ 1,282 $ 3,141 $ 1,714 income



Totalsegment $ 1,755,667 $ 1,709,696 $ 1,666,742 $ 1,726,219 $ 1,497,788 assets



Full time 291 305 312 321 319 employees



MortgageBanking Division

Net interest $ 168 $ 299 $ 188 $ 82 $ 34 income

Provisionfor loan - - - - - losses

Noninterest 3,986 3,420 2,612 1,821 1,253 income

Noninterest 2,793 2,835 2,410 1,697 1,195 expenses

Income taxes 354 188 820 43 11

Segment $ 1,007 $ 696 $ (430) $ 163 $ 81 income



Totalsegment $ 27,478 $ 50,266 $ 50,265 $ 17,578 $ 11,082 assets



Full time 51 43 41 40 34 employees



SmallBusinessSpecialty LendingDivision

Net interest $ 130 $ 100 $ 1,483 $ 19 $ 14 income

Provisionfor loan - - - - - losses

Noninterest 1,585 667 1,183 121 259 income

Noninterest 1,029 1,495 924 1,520 516 expenses

Income taxes 144 (153) 198 (290) (51)

Segment $ 542 $ (575) $ 1,544 $ (1,090) $ (192) income



Totalsegment $ 107,623 $ 405 $ 107,623 $ 405 $ 1,178 assets



Full time 23 21 15 13 12 employees



Total Consolidated

Net interest $ 14,283 $ 15,151 $ 15,302 $ 13,541 $ 12,704 income

Provisionfor loan 500 1,296 1,106 2,200 1,956 losses

Noninterest 8,576 8,039 7,934 4,843 4,561 income

Noninterest 15,782 15,986 15,749 13,375 13,378 expenses

Income taxes 1,658 1,008 3,985 595 328

Segment $ 4,919 $ 4,900 $ 2,396 $ 2,214 $ 1,603 income



Totalsegment $ 1,890,768 $ 1,763,974 $ 1,824,630 $ 1,744,202 $ 1,510,048 assets



Full time 365 369 368 374 365 employees

Colony Bankcorp, Inc.

Consolidated Balance Sheets

March 31, 2021

December 31, 2020

(dollars in thousands)

(unaudited)

(audited)

ASSETS

Cash and due from banks

$

16,150

$

17,218

Interest-bearing deposits in banks and federal funds sold

165,438

166,288

Cash and cash equivalents

181,588

183,506

Investment securities available for sale, at fair value

433,729

380,814

Other investments, at cost

2,703

3,296

Loans held for sale

28,429

52,386

Loans, net of unearned income

1,062,775

1,059,503

Allowance for loan losses

(12,693

)

(12,127

)

Loans, net

1,050,082

1,047,376

Premises and equipment

32,790

32,057

Other real estate

518

1,006

Goodwill and other intangible assets

18,673

18,558

Bank owned life insurance

31,581

31,547

Other assets

18,953

13,428

Total assets

$

1,799,046

$

1,763,974

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:

Deposits:

Noninterest-bearing

$

384,830

$

326,999

Interest-bearing

1,141,054

1,118,028

Total deposits

1,525,884

1,445,027

Federal Home Loan Bank advances

22,500

22,500

Paycheck Protection Program Liquidity Facility

60,602

106,789

Other borrowed money

37,542

37,792

Accrued expenses and other liabilities

9,031

7,378

Total liabilities

1,655,559

1,619,486

Stockholders' equity

Common stock, $1 par value; 20,000,000 shares authorized, 9,498,783 issued and outstanding, respectively

9,499

9,499

Paid in capital

43,224

43,215

Retained earnings

88,939

84,993

Accumulated other comprehensive income, net of tax

1,825

6,781

Total stockholders' equity

143,487

144,488

Total liabilities and stockholders' equity

$

1,799,046

$

1,763,974

Colony Bankcorp, Inc.

Consolidated Balance Sheets

March 31, December 31, 2021 2020

(dollars in thousands) (unaudited) (audited)

ASSETS

Cash and due from banks $ 16,150 $ 17,218

Interest-bearing deposits in banks and federal 165,438 166,288 funds sold

Cash and cash equivalents 181,588 183,506

Investment securities available for sale, at 433,729 380,814 fair value

Other investments, at cost 2,703 3,296

Loans held for sale 28,429 52,386

Loans, net of unearned income 1,062,775 1,059,503

Allowance for loan losses (12,693 ) (12,127 )

Loans, net 1,050,082 1,047,376

Premises and equipment 32,790 32,057

Other real estate 518 1,006

Goodwill and other intangible assets 18,673 18,558

Bank owned life insurance 31,581 31,547

Other assets 18,953 13,428

Total assets $ 1,799,046 $ 1,763,974



LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities:

Deposits:

Noninterest-bearing $ 384,830 $ 326,999

Interest-bearing 1,141,054 1,118,028

Total deposits 1,525,884 1,445,027

Federal Home Loan Bank advances 22,500 22,500

Paycheck Protection Program Liquidity Facility 60,602 106,789

Other borrowed money 37,542 37,792

Accrued expenses and other liabilities 9,031 7,378

Total liabilities 1,655,559 1,619,486



Stockholders' equity

Common stock, $1 par value; 20,000,000 sharesauthorized, 9,498,783 issued and outstanding, 9,499 9,499 respectively

Paid in capital 43,224 43,215

Retained earnings 88,939 84,993

Accumulated other comprehensive income, net of 1,825 6,781 tax

Total stockholders' equity 143,487 144,488

Total liabilities and stockholders' equity $ 1,799,046 $ 1,763,974

Colony Bankcorp, Inc.

Consolidated Statements of Income (unaudited)

Three months ended March 31,

2021

2020

(dollars in thousands, except per share data)

Interest income:

Loans, including fees

$

13,572

13,290

Investment securities, including tax exempt of $122 and $6, respectively

1,750

1,994

Deposits in banks and short term investments

53

284

Total interest income

15,375

15,568

Interest expense:

Deposits

654

2,218

Federal Home Loan Bank advances

113

257

Paycheck Protection Program Liquidity Facility

68

-

Other borrowings

257

389

Total interest expense

1,092

2,864

Net interest income

14,283

12,704

Provision for loan losses

500

1,956

Net interest income after provision for loan losses

13,783

10,748

Noninterest income:

Service charges on deposits

1,222

1,499

Mortgage fee income

3,995

1,262

Gain on sale of SBA loans

1,471

210

(Loss)/Gain on sale of securities

(4)

293

Gain on sale of assets

-

-

Interchange fees

1,530

1,033

BOLI Income

208

151

Other

154

78

Total noninterest income

8,576

4,526

Noninterest expense:

Salaries and employee benefits

9,955

7,498

Occupancy and equipment

1,326

1,318

Acquisition related

176

287

Information technology expenses

1,592

1,316

Professional fees

486

347

Advertising and public relations

580

634

Communications

218

191

FHLB prepayment penalty

-

276

Other

1,449

1,476

Total noninterest expense

15,782

13,343

Income before income taxes

6,577

1,931

Income taxes

1,658

328

Net income

$

4,919

$

1,603

Earnings per common share:

Basic

$

0.52

$

0.17

Diluted

0.52

0.17

Dividends declared per share

0.10

0.10

Weighted average common shares outstanding:

Basic

9,498,783

9,498,783

Diluted

9,498,783

9,498,783

Colony Bankcorp, Inc.

Consolidated Statements of Income (unaudited)

Three months ended March 31,

2021 2020

(dollars in thousands, except per share data)

Interest income:

Loans, including fees $ 13,572 13,290

Investment securities, including tax exempt of $122 1,750 1,994 and $6, respectively

Deposits in banks and short term investments 53 284

Total interest income 15,375 15,568



Interest expense:

Deposits 654 2,218

Federal Home Loan Bank advances 113 257

Paycheck Protection Program Liquidity Facility 68 -

Other borrowings 257 389

Total interest expense 1,092 2,864

Net interest income 14,283 12,704

Provision for loan losses 500 1,956

Net interest income after provision for loan losses 13,783 10,748



Noninterest income:

Service charges on deposits 1,222 1,499

Mortgage fee income 3,995 1,262

Gain on sale of SBA loans 1,471 210

(Loss)/Gain on sale of securities (4) 293

Gain on sale of assets - -

Interchange fees 1,530 1,033

BOLI Income 208 151

Other 154 78

Total noninterest income 8,576 4,526



Noninterest expense:

Salaries and employee benefits 9,955 7,498

Occupancy and equipment 1,326 1,318

Acquisition related 176 287

Information technology expenses 1,592 1,316

Professional fees 486 347

Advertising and public relations 580 634

Communications 218 191

FHLB prepayment penalty - 276

Other 1,449 1,476

Total noninterest expense 15,782 13,343

Income before income taxes 6,577 1,931

Income taxes 1,658 328

Net income $ 4,919 $ 1,603

Earnings per common share:

Basic $ 0.52 $ 0.17

Diluted 0.52 0.17

Dividends declared per share 0.10 0.10

Weighted average common shares outstanding:

Basic 9,498,783 9,498,783

Diluted 9,498,783 9,498,783

Colony Bankcorp, Inc.

Quarterly Comparison

2021

2020

(dollars in thousands)

First Quarter

Fourth Quarter

Third Quarter

Second Quarter

First Quarter

Assets

$

1,799,047

$

1,763,974

$

1,759,446

$

1,777,568

$

1,510,048

Loans, net

1,050,082

1,047,376

1,090,586

1,103,688

980,642

Deposits

1,525,884

1,445,027

1,416,401

1,421,758

1,293,076

Total equity

143,487

144,488

140,346

138,594

136,072

Net income

4,919

4,900

3,099

2,214

1,603

Earnings per basic share

$

0.52

$

0.52

$

0.33

$

0.23

$

0.17

Key Performance Ratios:

Return on average assets

1.12

%

1.08

%

0.70

%

0.52

%

0.42

%

Return on average total equity

13.71

%

13.73

%

8.80

%

6.47

%

4.79

%

Total equity to total assets

7.98

%

8.19

%

7.98

%

7.80

%

9.01

%

Tangible equity to tangible assets

7.01

%

7.21

%

7.00

%

6.82

%

7.83

%

Net interest margin

3.50

%

3.58

%

3.34

%

3.41

%

3.63

%

Colony Bankcorp, Inc.

Quarterly Comparison

2021 2020

(dollars in First Quarter Fourth Third Quarter Second First Quarterthousands) Quarter Quarter

Assets $ 1,799,047 $ 1,763,974 $ 1,759,446 $ 1,777,568 $ 1,510,048

Loans, net 1,050,082 1,047,376 1,090,586 1,103,688 980,642

Deposits 1,525,884 1,445,027 1,416,401 1,421,758 1,293,076

Total 143,487 144,488 140,346 138,594 136,072 equity

Net income 4,919 4,900 3,099 2,214 1,603

Earningsper basic $ 0.52 $ 0.52 $ 0.33 $ 0.23 $ 0.17 share



KeyPerformance Ratios:

Return onaverage 1.12 % 1.08 % 0.70 % 0.52 % 0.42 %assets

Return onaverage 13.71 % 13.73 % 8.80 % 6.47 % 4.79 %totalequity

Totalequity to 7.98 % 8.19 % 7.98 % 7.80 % 9.01 %totalassets

Tangibleequity to 7.01 % 7.21 % 7.00 % 6.82 % 7.83 %tangibleassets

Netinterest 3.50 % 3.58 % 3.34 % 3.41 % 3.63 %margin



Colony Bankcorp, Inc.

Quarterly Loan Comparison

2021

2020

(dollars in thousands)

First Quarter

Fourth Quarter

Third Quarter

Second Quarter

First Quarter

Core

$

888,800

$

873,426

$

871,416

$

855,556

$

847,100

PPP

102,633

101,147

133,756

133,158

-

Purchased

71,342

84,930

96,434

125,263

121,714

Total

$

1,062,775

$

1,059,503

$

1,101,606

$

1,113,977

$

968,814

Colony Bankcorp, Inc.

Quarterly Loan Comparison

2021 2020

(dollars Fourth Second Firstin First Quarter Quarter Third Quarter Quarter Quarterthousands)

Core $ 888,800 $ 873,426 $ 871,416 $ 855,556 $ 847,100

PPP 102,633 101,147 133,756 133,158 -

Purchased 71,342 84,930 96,434 125,263 121,714

Total $ 1,062,775 $ 1,059,503 $ 1,101,606 $ 1,113,977 $ 968,814

Colony Bankcorp, Inc.

Quarterly Loans by Location Comparison

2021

2020

(dollars in thousands)

First Quarter

Fourth Quarter

Third Quarter

Second Quarter

First Quarter

Atlanta

$

492

$

562

$

7,025

$

7,425

$

7,527

Augusta

23,982

20,432

22,931

25,140

29,504

Middle Georgia

73,543

68,838

60,275

56,209

52,858

Northwest Georgia

1,698

-

-

-

-

Coastal Georgia

235,094

230,184

224,604

223,746

226,747

South Central Georgia

371,227

372,947

391,702

398,107

394,167

Southwest Georgia

97,575

104,132

101,247

108,070

110,605

West Georgia

148,457

154,819

152,159

154,979

162,225

Small Business Specialty Lending

7,906

4,537

9,281

1,903

676

Paycheck Protection Program

102,633

101,147

133,756

133,158

-

Purchase Accounting

(668)

(877)

(1,262)

(1,196)

(1,278)

Other

836

2,781

5,948

6,436

5,995

Total

$

1,062,775

$

1,059,502

$

1,107,666

$

1,113,977

$

989,026

ColonyBankcorp, Inc.

Quarterly Loans by Location Comparison

2021 2020

(dollars Fourth Second Firstin First Quarter Quarter Third Quarter Quarter Quarterthousands)

Atlanta $ 492 $ 562 $ 7,025 $ 7,425 $ 7,527

Augusta 23,982 20,432 22,931 25,140 29,504

Middle 73,543 68,838 60,275 56,209 52,858 Georgia

Northwest 1,698 - - - - Georgia

Coastal 235,094 230,184 224,604 223,746 226,747 Georgia

SouthCentral 371,227 372,947 391,702 398,107 394,167 Georgia

Southwest 97,575 104,132 101,247 108,070 110,605 Georgia

West 148,457 154,819 152,159 154,979 162,225 Georgia

SmallBusiness 7,906 4,537 9,281 1,903 676 SpecialtyLending

PaycheckProtection 102,633 101,147 133,756 133,158 - Program

Purchase (668) (877) (1,262) (1,196) (1,278) Accounting

Other 836 2,781 5,948 6,436 5,995

Total $ 1,062,775 $ 1,059,502 $ 1,107,666 $ 1,113,977 $ 989,026

Colony Bankcorp, Inc.

Quarterly PPP Fees Comparison

2021

2020

(dollars in thousands)

First Quarter

Fourth Quarter

Third Quarter

Second Quarter

First Quarter

PPP loan fee income

$

1,212

$

1,324

$

508

$

576

$

-

Unearned income on PPP loans

3,077

2,072

3,396

3,904

-

View source version on businesswire.com: https://www.businesswire.com/news/home/20210422006044/en/

CONTACT: Tracie Youngblood EVP & Chief Financial Officer (229) 426-6000 (Ext 6003)