EX-99.1 2 a1q2023cbaner.htm EX-99.1
For additional information, contact:
T. Heath Fountain
Chief Executive Officer and Acting Chief Financial Officer
229-426-6000, extension 6012
COLONY BANKCORP REPORTS FIRST QUARTER 2023 RESULTS
DECLARES QUARTERLY CASH DIVIDEND OF $0.11 PER SHARE
FITZGERALD, GA. (April 27, 2023) – Colony Bankcorp, Inc. (Nasdaq: CBAN) (“Colony” or the “Company”) today reported financial results for the first quarter of 2023. Financial highlights are shown below.
Financial Highlights:
•Net income decreased to $5.0 million, or $0.29 per diluted share, for the first quarter of 2023, compared to $5.6 million, or $0.31 per diluted share, for the fourth quarter of 2022, and $5.3 million, or $0.34 per diluted share, for the first quarter of 2022.
•Operating net income decreased to $5.5 million, or $0.31 of adjusted earnings per diluted share, for the first quarter of 2023, compared to $5.6 million, or $0.31 of adjusted earnings per diluted share, for the fourth quarter of 2022, and an increase from $5.4 million, or $0.37 of adjusted earnings per diluted share, for the first quarter of 2022. (See Reconciliation of Non-GAAP Measures).
•Strong liquidity with available sources of funding of approximately $1.3 billion at March 31, 2023. No overnight borrowings utilized or Federal Reserve Bank Term Funding program used as of March 31, 2023.
•Estimated uninsured deposits of $790.7 million, or 30.96% of total Bank deposits at March 31, 2023. Adjusted uninsured deposit estimate (excluding deposits collateralized by public funds or internal accounts) of $444.6 million, or 17.41% of total Bank deposits at March 31, 2023.
•Provision for credit losses of $900,000 was recorded in first quarter of 2023 and fourth quarter of 2022, and $50,000 in first quarter of 2022.
•Total loans were $1.80 billion at March 31, 2023, an increase of $62.7 million, or 3.61% from the prior quarter.
•Total deposits were $2.52 billion and $2.49 billion at March 31, 2023 and December 31, 2022, respectively, an increase of $25.1 million.
•Mortgage production was $62.0 million, and mortgage sales totaled $37.6 million in the first quarter of 2023 compared to $92.6 million and $38.1 million, respectively, for the fourth quarter of 2022.
•Small Business Specialty Lending (“SBSL”) closed $19.6 million in Small Business Administration (“SBA”) loans and sold $11.5 million in SBA loans in the first quarter of 2023 compared to $29.0 million and $18.0 million, respectively, for the fourth quarter of 2022.
The Company also announced that on April 27, 2023, the Board of Directors declared a quarterly cash dividend of $0.11 per share, to be paid on its common stock on May 24, 2023, to shareholders of record as of the close of business on May 10, 2023. The Company had 17,593,879 shares of its common stock outstanding as of April 26, 2023.
“Despite the recent stress in the banking industry, Colony continues to remain resilient and adapt to the changing landscape. We remain committed to delivering value to our shareholders, while also ensuring that we are meeting the needs of our customers and the communities we serve” said Heath Fountain, Chief Executive Officer and Acting Chief Financial Officer.
“Our long customer relationships and diversified core deposit base provide consistent funding for our operations, and our liquidity remains strong. Adjusted uninsured deposits represent a small percentage of our overall deposits, which increases the stability of our deposit base and lowers our overall funding risk.”
“The loan loss reserve methodology for Current Expected Credit Losses (CECL) was implemented on January 1, 2023, with an initial increase of $1.2 million only resulting from the newly required reserve on unfunded commitments. The provision for credit losses for the quarter of $900,000 was primarily related to the loan growth of
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$62.7 million, or 3.6%, from the prior quarter. Asset quality remains strong and well managed in the first quarter with a small increase in non performing loans, and criticized and classified loans remain stable.”
“Quarter over quarter non-interest expenses declined as growth slowed during the first quarter. By focusing on managing expenses in a lower growth environment, we can improve profitability and eliminate unnecessary costs. This disciplined approach to expense management will allow us to weather any economic challenges and position ourselves for long-term success.”
Balance Sheet
•Total assets were $3.00 billion at March 31, 2023, an increase of $60.4 million from December 31, 2022.
•Total loans, including loans held for sale, were at $1.81 billion at March 31, 2023, an increase of $58.6 million from the quarter ended December 31, 2022.
•Total deposits were $2.52 billion and $2.49 billion at March 31, 2023 and December 31, 2022, respectively, an increase of $25.1 million. Time deposits increased $128.2 million, which was offset by decreases in other interest bearing deposits and noninterest bearing deposits of $103.1 million from December 31, 2022 to March 31, 2023.
•Total borrowings at March 31, 2023 totaled $228.4 million, an increase of $25.0 million or, 12.3%, compared to December 31, 2022 related to additional Federal Home Loan Bank advances, offset by payback of borrowings from the Federal Reserve Bank.
Capital
•Colony continues to maintain a strong capital position, with ratios that exceed regulatory minimums required to be considered 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 8.90%, 12.14%, 14.80%, and 11.01%, respectively, at March 31, 2023.
First Quarter Results of Operations
•Net interest income, on a tax-equivalent basis, for the first quarter of 2023 totaled $20.7 million , compared to $19.3 million for the first quarter of 2022. The increase during the first quarter of 2023 compared to the same period in 2022 is primarily attributable to increases in loan volume and purchases of investment securities, offset by increases in deposit rates and increases in borrowings to fund loan growth.
•Net interest margin for the first quarter of 2023 decreased five basis points from the first quarter of 2022. The decrease is the result of an increase in deposit rates along with an increase in borrowings, offset by higher yielding investment securities, an increase in rates paid on deposits with the Federal Reserve and an increase in loan rates.
•Noninterest income totaled $7.7 million for the first quarter ended March 31, 2023, a decrease of $1.5 million, or 16.3%, compared to the same period in 2022. The decrease was primarily attributable to decreases in mortgage fee income and SBSL loan sales.
•Noninterest expense totaled $21.2 million for the first quarter ended March 31, 2023, compared to $21.8 million for the same period in 2022. This was a result of overall decreases in the salaries and employee benefits related to lower commissions and bonus expenses, offset by severance and acquisition related vendor contract buyouts in the first quarter 2023 compared to the same period in 2022.
Asset Quality
•Nonperforming assets totaled $7.8 million and $6.4 million at March 31, 2023 and December 31, 2022, respectively, an increase of $1.5 million.
•Other real estate owned and repossessed assets remained stable at $651,000 for March 31, 2023 and December 31, 2022.
•Net loans charged-off were $237,000, or 0.05% of average loans for the first quarter of 2023, compared to net charge-offs of $154,000 or 0.04% for the fourth quarter of 2022.
•The credit loss reserve was $16.6 million, or 0.92% of total loans, at March 31, 2023, compared to $16.1 million, or 0.93% of total loans at December 31, 2022.
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Earnings call information
The Company will host an earnings conference call at 9:00 a.m. EST on Friday, April 28, 2023, to discuss the recent results and answer appropriate questions. The conference call can be accessed by dialing 1-833-470-1428 (or 1-929-526-1599 for international participants). The conference call access code is 759681. A replay of the call will be available until Friday, May 5, 2023. To listen to the replay, dial 1-866-813-9403 and enter the access code 139617.
About Colony Bankcorp
Colony Bankcorp, Inc. is the bank holding company for Colony Bank. Founded in 1975 and headquartered in Fitzgerald, Georgia, Colony operates 36 locations throughout Georgia and is now serving Alabama. 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 NASDAQ Global Market 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 “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 current and economic conditions, particularly those affecting the financial services industry, including the effects of declines in the real estate market, high unemployment rates, inflationary pressures, elevated interest rates and slowdowns in economic growth, as well as the financial stress on borrowers as a result of the foregoing; potential impacts of the recent 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; potential impact of the phase-out of the London Interbank
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Offered Rate (“LIBOR”) or other changes involving LIBOR; 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, or uncertainties surrounding the debt ceiling and the federal budget; 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; risks related to the Company’s recently completed acquisitions, including that the anticipated benefits from the recently completed acquisitions 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; the risks associated with the Company’s pursuit of future acquisitions; 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, 2022, 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, tangible equity to tangible assets, operating efficiency ratio 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 net income, diluted earnings per share, book value per common share, total equity to total assets, efficiency ratio, and net interest income before provision for credit losses, respectively. Operating net income and operating efficiency ratio both exclude acquisition-related expenses, severance costs and FHLB mark from called borrowings from net income and efficiency ratio, respectively. 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 net income, adjusted earnings per diluted share, tangible book value per common share, tangible equity to tangible assets, operating efficiency ratio, and pre-provision net revenue and the reconciliation of these measures to net income, diluted earnings per share, book value per common share, total equity to total assets, efficiency ratio, and net interest income before provision for credit losses are set forth in the table below.
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Colony Bankcorp, Inc. |  |  |  |  |  |
Reconciliation of Non-GAAP Measures |  |  |  |  |  |
|  | 2023 |  | 2022 |  |
(dollars in thousands, except per share data) |  | First Quarter |  | Fourth Quarter |  | Third Quarter |  | Second Quarter |  | First Quarter |  |
Operating net income reconciliation |  |  |  |  |  |  |  |  |  |  |  |
Net income (GAAP) |  | $ | 5,043 |  |  | $ | 5,551 |  |  | $ | 5,252 |  |  | $ | 3,415 |  |  | $ | 5,324 |  |  |
FHLB mark from called borrowings |  | — |  |  | — |  |  | — |  |  | 751 |  |  | — |  |  |
Severance costs |  | 431 |  |  | — |  |  | — |  |  | 1,346 |  |  | — |  |  |
Acquisition-related expenses |  | 161 |  |  | — |  |  | 2 |  |  | 1 |  |  | 139 |  |  |
Income tax benefit |  | (107) |  |  | — |  |  | — |  |  | (272) |  |  | (26) |  |  |
Operating net income |  | $ | 5,528 |  |  | $ | 5,551 |  |  | $ | 5,254 |  |  | $ | 5,241 |  |  | $ | 5,437 |  |  |
Weighted average diluted shares |  | 17,595,688 |  |  | 17,630,971 |  |  | 17,645,119 |  |  | 17,586,276 |  |  | 15,877,695 |  |  |
Adjusted earnings per diluted share |  | $ | 0.31 |  |  | $ | 0.31 |  |  | $ | 0.30 |  |  | $ | 0.30 |  |  | $ | 0.37 |  |  |
Tangible book value per common share reconciliation |  |  |  |  |  |  |  |  |  |  |  |
Book value per common share (GAAP) |  | $ | 13.57 |  |  | $ | 13.08 |  |  | $ | 12.81 |  |  | $ | 13.34 |  |  | $ | 14.23 |  |  |
Effect of goodwill and other intangibles |  | (3.08) |  |  | (3.10) |  |  | (3.12) |  |  | (3.44) |  |  | (3.40) |  |  |
Tangible book value per common share |  | $ | 10.49 |  |  | $ | 9.98 |  |  | $ | 9.69 |  |  | $ | 9.90 |  |  | $ | 10.83 |  |  |
Tangible equity to tangible assets reconciliation |  |  |  |  |  |  |  |  |  |  |  |
Equity to assets (GAAP) |  | 7.97 | % |  | 7.84 | % |  | 8.06 | % |  | 8.60 | % |  | 9.32 | % |  |
Effect of goodwill and other intangibles |  | (1.70) | % |  | (1.74) | % |  | (1.84) | % |  | (2.08) | % |  | (2.07) | % |  |
Tangible equity to tangible assets |  | 6.27 | % |  | 6.10 | % |  | 6.22 | % |  | 6.52 | % |  | 7.25 | % |  |
Operating efficiency ratio calculation |  |  |  |  |  |  |  |  |  |  |  |
Efficiency ratio (GAAP) |  | 74.98 | % |  | 75.03 | % |  | 73.57 | % |  | 83.75 | % |  | 76.94 | % |  |
Severance costs |  | (1.53) |  |  | — |  |  | — |  |  | (4.61) |  |  | — |  |  |
Acquisition-related expenses |  | (0.57) |  |  | — |  |  | (0.01) |  |  | — |  |  | (2.20) |  |  |
FHLB mark from called borrowing |  | — |  |  | — |  |  | — |  |  | (0.65) |  |  | — |  |  |
Operating efficiency ratio |  | 72.88 | % |  | 75.03 | % |  | 73.56 | % |  | 78.49 | % |  | 74.74 | % |  |
Pre-provision net revenue |  |  |  |  |  |  |  |  |  |  |  |
Net interest income before provision for credit losses |  | $ | 20,568 |  |  | $ | 21,400 |  |  | $ | 20,865 |  |  | $ | 19,167 |  |  | $ | 19,188 |  |  |
Noninterest income |  | 7,659 |  |  | 7,688 |  |  | 8,179 |  |  | 10,058 |  |  | 9,152 |  |  |
Total income |  | 28,227 |  |  | 29,088 |  |  | 29,044 |  |  | 29,225 |  |  | 28,340 |  |  |
Noninterest expense |  | 21,165 |  |  | 21,826 |  |  | 21,367 |  |  | 24,476 |  |  | 21,805 |  |  |
Pre-provision net revenue |  | $ | 7,063 |  |  | $ | 7,262 |  |  | $ | 7,677 |  |  | $ | 4,749 |  |  | $ | 6,535 |  |  |

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Colony Bankcorp, Inc.
Selected Financial Information
|  | 2023 |  | 2022 |  |
(dollars in thousands, except per share data) |  | First Quarter |  | Fourth Quarter |  | Third Quarter |  | Second Quarter |  | First Quarter |  |
EARNINGS SUMMARY |  |  |  |  |  |  |  |  |  |  |  |
Net interest income |  | $ | 20,568 |  |  | $ | 21,400 |  |  | $ | 20,865 |  |  | $ | 19,167 |  |  | $ | 19,188 |  |  |
Provision for credit losses |  | 900 |  |  | 900 |  |  | 1,320 |  |  | 1,100 |  |  | 50 |  |  |
Noninterest income |  | 7,659 |  |  | 7,688 |  |  | 8,179 |  |  | 10,058 |  |  | 9,152 |  |  |
Noninterest expense |  | 21,165 |  |  | 21,826 |  |  | 21,367 |  |  | 24,476 |  |  | 21,805 |  |  |
Income taxes |  | 1,119 |  |  | 811 |  |  | 1,105 |  |  | 234 |  |  | 1,161 |  |  |
Net income |  | 5,043 |  |  | 5,551 |  |  | 5,252 |  |  | 3,415 |  |  | 5,324 |  |  |
PERFORMANCE MEASURES |  |  |  |  |  |  |  |  |  |  |  |
Per common share: |  |  |  |  |  |  |  |  |  |  |  |
Common shares outstanding |  | 17,593,879 |  |  | 17,598,123 |  |  | 17,641,123 |  |  | 17,581,212 |  |  | 17,586,333 |  |  |
Weighted average basic shares |  | 17,595,688 |  |  | 17,630,971 |  |  | 17,645,119 |  |  | 17,586,276 |  |  | 15,877,695 |  |  |
Weighted average diluted shares |  | 17,595,688 |  |  | 17,630,971 |  |  | 17,645,119 |  |  | 17,586,276 |  |  | 15,877,695 |  |  |
Earnings per basic share |  | $ | 0.29 |  |  | $ | 0.31 |  |  | $ | 0.30 |  |  | $ | 0.19 |  |  | $ | 0.34 |  |  |
Earnings per diluted share |  | 0.29 |  |  | 0.31 |  |  | 0.30 |  |  | 0.19 |  |  | 0.34 |  |  |
Adjusted earnings per diluted share(b) |  | 0.31 |  |  | 0.31 |  |  | 0.30 |  |  | 0.30 |  |  | 0.37 |  |  |
Cash dividends declared per share |  | 0.1100 |  |  | 0.1075 |  |  | 0.1075 |  |  | 0.1075 |  |  | 0.1075 |  |  |
Common book value per share |  | 13.57 |  |  | 13.08 |  |  | 12.81 |  |  | 13.34 |  |  | 14.23 |  |  |
Tangible book value per common share(b) |  | 10.49 |  |  | 9.98 |  |  | 9.69 |  |  | 9.90 |  |  | 10.83 |  |  |
Pre-provision net revenue(b) |  | $ | 7,063 |  |  | $ | 7,262 |  |  | $ | 7,677 |  |  | $ | 4,749 |  |  | $ | 6,535 |  |  |
Performance ratios: |  |  |  |  |  |  |  |  |  |  |  |
Net interest margin (a) |  | 3.08 | % |  | 3.23 | % |  | 3.25 | % |  | 3.15 | % |  | 3.13 | % |  |
Return on average assets |  | 0.69 |  |  | 0.77 |  |  | 0.75 |  |  | 0.51 |  |  | 0.81 |  |  |
Return on average total equity |  | 8.73 |  |  | 9.76 |  |  | 8.85 |  |  | 5.68 |  |  | 8.88 |  |  |
Efficiency ratio |  | 74.98 |  |  | 75.03 |  |  | 73.57 |  |  | 83.75 |  |  | 76.94 |  |  |
Operating efficiency ratio (b) |  | 72.88 |  |  | 75.03 |  |  | 73.56 |  |  | 78.49 |  |  | 74.74 |  |  |

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Colony Bankcorp, Inc.
Selected Financial Information
|  | 2023 |  | 2022 |  |
(dollars in thousands, except per share data) |  | First Quarter |  | Fourth Quarter |  | Third Quarter |  | Second Quarter |  | First Quarter |  |
ASSET QUALITY |  |  |  |  |  |  |  |  |  |  |  |
Nonperforming loans (NPLs) |  | $ | 7,165 |  |  | $ | 5,710 |  |  | $ | 5,302 |  |  | $ | 4,948 |  |  | $ | 6,171 |  |  |
Other real estate owned |  | 651 |  |  | 651 |  |  | 246 |  |  | 246 |  |  | 246 |  |  |
Repossessed assets |  | — |  |  | — |  |  | — |  |  | 47 |  |  | 48 |  |  |
Total nonperforming assets (NPAs) |  | 7,816 |  |  | 6,361 |  |  | 5,548 |  |  | 5,241 |  |  | 6,465 |  |  |
Classified loans |  | 14,538 |  |  | 14,414 |  |  | 17,755 |  |  | 19,247 |  |  | 18,306 |  |  |
Criticized loans |  | 38,111 |  |  | 39,760 |  |  | 43,377 |  |  | 49,204 |  |  | 52,859 |  |  |
Net loan (recoveries)/charge-offs |  | 237 |  |  | 154 |  |  | 198 |  |  | 58 |  |  | 41 |  |  |
Allowance for credit losses to total loans |  | 0.92 | % |  | 0.93 | % |  | 0.96 | % |  | 0.96 | % |  | 0.95 | % |  |
Allowance for credit losses to total NPLs |  | 231.67 |  |  | 282.45 |  |  | 286.34 |  |  | 282.19 |  |  | 209.35 |  |  |
Allowance for credit losses to total NPAs |  | 212.37 |  |  | 253.55 |  |  | 273.65 |  |  | 266.42 |  |  | 199.83 |  |  |
Net (recoveries)/charge-offs to average loans |  | 0.05 |  |  | 0.04 |  |  | 0.05 |  |  | 0.02 |  |  | 0.01 |  |  |
NPLs to total loans |  | 0.40 |  |  | 0.33 |  |  | 0.33 |  |  | 0.34 |  |  | 0.46 |  |  |
NPAs to total assets |  | 0.26 |  |  | 0.22 |  |  | 0.20 |  |  | 0.19 |  |  | 0.24 |  |  |
NPAs to total loans and foreclosed assets |  | 0.43 |  |  | 0.37 |  |  | 0.35 |  |  | 0.36 |  |  | 0.48 |  |  |
AVERAGE BALANCES |  |  |  |  |  |  |  |  |  |  |  |
Total assets |  | 2,949,986 |  |  | 2,863,046 |  |  | 2,777,390 |  |  | 2,676,612 |  |  | 2,679,242 |  |  |
Loans, net |  | 1,765,845 |  |  | 1,637,034 |  |  | 1,509,202 |  |  | 1,384,795 |  |  | 1,333,784 |  |  |
Loans, held for sale |  | 14,007 |  |  | 22,644 |  |  | 30,238 |  |  | 29,843 |  |  | 28,650 |  |  |
Deposits |  | 2,473,464 |  |  | 2,460,664 |  |  | 2,366,710 |  |  | 2,325,756 |  |  | 2,341,357 |  |  |
Total stockholders’ equity |  | 234,147 |  |  | 225,639 |  |  | 235,557 |  |  | 241,281 |  |  | 243,120 |  |  |
(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.

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Colony Bankcorp, Inc.
Average Balance Sheet and Net Interest Analysis
| Three Months Ended March 31,
| 2023 |  | 2022
(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 | $ | 1,779,852 |  |  | $ | 22,199 |  |  | 5.06 | % |  | $ | 1,362,434 |  |  | $ | 16,060 |  |  | 4.78 | %
Investment securities, taxable | 786,900 |  |  | 5,374 |  |  | 2.77 | % |  | 866,445 |  |  | 3,753 |  |  | 1.76 | %
Investment securities, tax-exempt 2 | 114,346 |  |  | 594 |  |  | 2.11 | % |  | 111,007 |  |  | 516 |  |  | 1.89 | %
Deposits in banks and short term investments | 50,898 |  |  | 357 |  |  | 2.85 | % |  | 161,653 |  |  | 56 |  |  | 0.14 | %
Total interest-earning assets | 2,731,996 |  |  | 28,524 |  |  | 4.23 | % |  | 2,501,539 |  |  | 20,385 |  |  | 3.30 | %
Noninterest-earning assets | 217,990 |  |  |  |  |  |  | 177,703 |  |  |  |  |
Total assets | $ | 2,949,986 |  |  |  |  |  |  | $ | 2,679,242 |  |  |  |  |
Liabilities and stockholders' equity |  |  |  |  |  |  |  |  |  |  |
Interest-bearing liabilities: |  |  |  |  |  |  |  |  |  |  |
Interest-earning demand and savings | $ | 1,409,834 |  |  | $ | 2,324 |  |  | 0.67 | % |  | $ | 1,445,408 |  |  | $ | 261 |  |  | 0.07 | %
Other time | 507,415 |  |  | 2,675 |  |  | 2.14 | % |  | 343,215 |  |  | 338 |  |  | 0.40 | %
Total interest-bearing deposits | 1,917,249 |  |  | 4,999 |  |  | 1.06 | % |  | 1,788,623 |  |  | 599 |  |  | 0.14 | %
Federal funds purchased | 7,012 |  |  | 88 |  |  | 5.09 | % |  | — |  |  | — |  |  | — | %
Federal Home Loan Bank advances | 149,444 |  |  | 1,626 |  |  | 4.41 | % |  | 51,678 |  |  | 249 |  |  | 1.95 | %
Other borrowings | 76,083 |  |  | 1,089 |  |  | 5.80 | % |  | 32,181 |  |  | 201 |  |  | 2.53 | %
Total other interest-bearing liabilities | 232,539 |  |  | 2,803 |  |  | 4.89 | % |  | 83,859 |  |  | 450 |  |  | 2.18 | %
Total interest-bearing liabilities | 2,149,788 |  |  | 7,802 |  |  | 1.47 | % |  | 1,872,482 |  |  | 1,049 |  |  | 0.23 | %
Noninterest-bearing liabilities: |  |  |  |  |  |  |  |  |  |  |
Demand deposits | 556,216 |  |  |  |  |  |  | $ | 552,734 |  |  |  |  |
Other liabilities | 9,835 |  |  |  |  |  |  | 10,906 |  |  |  |  |
Stockholders' equity | 234,147 |  |  |  |  |  |  | 243,120 |  |  |  |  |
Total noninterest-bearing liabilities and stockholders' equity | 800,198 |  |  |  |  |  |  | 806,760 |  |  |  |  |
Total liabilities and stockholders' equity | $ | 2,949,986 |  |  |  |  |  |  | $ | 2,679,242 |  |  |  |  |
Interest rate spread |  |  |  |  | 2.76 | % |  |  |  |  |  | 3.08 | %
Net interest income |  |  | $ | 20,722 |  |  |  |  |  |  | $ | 19,336 |  |  |
Net interest margin |  |  |  |  | 3.08 | % |  |  |  |  |  | 3.13 | %

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 $45,000 and $50,000 for the quarters ended March 31, 2023 and 2022, respectively, are included in income and fees on loans. Accretion income of $71,000 and $269,000 for the quarters ended March 31, 2023 and 2022 are also included in income and fees on loans.
2 Taxable-equivalent adjustments totaling $108,000 and $98,000 for the quarters ended March 31, 2023 and 2022, respectively, are included in tax-exempt interest on investment securities.
8

Colony Bankcorp, Inc. |  |
Segment Reporting |  |
|  | 2023 |  | 2022
(dollars in thousands) |  | First Quarter |  | Fourth Quarter |  | Third Quarter |  | Second Quarter |  | First Quarter
Banking Division |  |  |  |  |  |  |  |  |  |
Net interest income |  | $ | 20,138 |  |  | $ | 21,037 |  |  | $ | 20,508 |  |  | $ | 18,819 |  |  | $ | 18,824 |
Provision for credit losses |  | 900 |  |  | 900 |  |  | 1,320 |  |  | 1,100 |  |  | 50 |
Noninterest income |  | 4,918 |  |  | 4,312 |  |  | 4,288 |  |  | 5,187 |  |  | 4,300 |
Noninterest expenses |  | 17,812 |  |  | 18,038 |  |  | 17,537 |  |  | 19,504 |  |  | 17,701 |
Income taxes |  | 1,155 |  |  | 837 |  |  | 1,047 |  |  | 227 |  |  | 900 |
Segment income |  | $ | 5,189 |  |  | $ | 5,574 |  |  | $ | 4,892 |  |  | $ | 3,175 |  |  | $ | 4,473 |
Total segment assets |  | $ | 2,930,421 |  |  | $ | 2,857,893 |  |  | $ | 2,738,082 |  |  | $ | 2,664,966 |  |  | $ | 2,627,450 |
Full time employees |  | 407 |  |  | 427 |  |  | 396 |  |  | 396 |  |  | 404 |
Mortgage Banking Division |  |  |  |  |  |  |  |  |  |
Net interest income |  | $ | 3 |  |  | $ | (43) |  |  | $ | 17 |  |  | $ | 57 |  |  | $ | 71 |
Provision for credit losses |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Noninterest income |  | 1,277 |  |  | 1,637 |  |  | 2,345 |  |  | 2,736 |  |  | 2,912 |
Noninterest expenses |  | 1,712 |  |  | 1,936 |  |  | 2,289 |  |  | 2,799 |  |  | 2,711 |
Income taxes |  | (86) |  |  | (6) |  |  | 10 |  |  | (7) |  |  | 101 |
Segment income |  | $ | (346) |  |  | $ | (336) |  |  | $ | 63 |  |  | $ | 1 |  |  | $ | 171 |
Total segment assets |  | $ | 7,895 |  |  | $ | 18,221 |  |  | $ | 16,905 |  |  | $ | 20,183 |  |  | $ | 19,417 |
Full time employees |  | 59 |  |  | 65 |  |  | 61 |  |  | 59 |  |  | 62 |
Small Business Specialty Lending Division |  |  |  |  |  |
Net interest income |  | $ | 427 |  |  | $ | 406 |  |  | $ | 340 |  |  | $ | 291 |  |  | $ | 293 |
Provision for credit losses |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Noninterest income |  | 1,464 |  |  | 1,739 |  |  | 1,546 |  |  | 2,135 |  |  | 1,940 |
Noninterest expenses |  | 1,641 |  |  | 1,852 |  |  | 1,541 |  |  | 2,173 |  |  | 1,393 |
Income taxes |  | 50 |  |  | (20) |  |  | 48 |  |  | 14 |  |  | 160 |
Segment income |  | $ | 200 |  |  | $ | 313 |  |  | $ | 297 |  |  | $ | 239 |  |  | $ | 680 |
Total segment assets |  | $ | 58,625 |  |  | $ | 60,456 |  |  | $ | 50,925 |  |  | $ | 43,553 |  |  | $ | 39,921 |
Full time employees |  | 30 |  |  | 30 |  |  | 29 |  |  | 28 |  |  | 28 |
Total Consolidated |  |  |  |  |  |  |  |  |  |
Net interest income |  | $ | 20,568 |  |  | $ | 21,400 |  |  | $ | 20,865 |  |  | $ | 19,167 |  |  | $ | 19,188 |
Provision for credit losses |  | 900 |  |  | 900 |  |  | 1,320 |  |  | 1,100 |  |  | 50 |
Noninterest income |  | 7,659 |  |  | 7,688 |  |  | 8,179 |  |  | 10,058 |  |  | 9,152 |
Noninterest expenses |  | 21,165 |  |  | 21,826 |  |  | 21,367 |  |  | 24,476 |  |  | 21,805 |
Income taxes |  | 1,119 |  |  | 811 |  |  | 1,105 |  |  | 234 |  |  | 1,161 |
Segment income |  | $ | 5,043 |  |  | $ | 5,551 |  |  | $ | 5,252 |  |  | $ | 3,415 |  |  | $ | 5,324 |
Total segment assets |  | $ | 2,996,941 |  |  | $ | 2,936,570 |  |  | $ | 2,805,912 |  |  | $ | 2,728,702 |  |  | $ | 2,686,788 |
Full time employees |  | 496 |  |  | 522 |  |  | 486 |  |  | 483 |  |  | 494 |

9

Colony Bankcorp, Inc.
Consolidated Balance Sheets
|  | March 31, 2023 |  | December 31, 2022 |
(dollars in thousands) |  | (unaudited) |  | (audited) |
ASSETS |  |  |  |  |
Cash and due from banks |  | $ | 25,283 |  |  | $ | 20,584 |  |
Interest-bearing deposits in banks and federal funds sold |  | 56,683 |  |  | 60,094 |  |
Cash and cash equivalents |  | 81,966 |  |  | 80,678 |  |
Investment securities available for sale, at fair value |  | 434,705 |  |  | 432,553 |  |
Investment securities held to maturity, at amortized cost |  | 463,946 |  |  | 465,858 |  |
Other investments, at cost |  | 14,999 |  |  | 13,793 |  |
Loans held for sale |  | 13,623 |  |  | 17,743 |  |
Loans, net of unearned income |  | 1,799,853 |  |  | 1,737,106 |  |
Allowance for credit losses |  | (16,599) |  |  | (16,128) |  |
Loans, net |  | 1,783,254 |  |  | 1,720,978 |  |
Premises and equipment |  | 41,867 |  |  | 41,606 |  |
Other real estate |  | 651 |  |  | 651 |  |
Goodwill |  | 48,923 |  |  | 48,923 |  |
Other intangible assets |  | 5,262 |  |  | 5,664 |  |
Bank owned life insurance |  | 55,848 |  |  | 55,504 |  |
Deferred income taxes, net |  | 26,254 |  |  | 28,199 |  |
Other assets |  | 25,643 |  |  | 24,420 |  |
Total assets |  | $ | 2,996,941 |  |  | $ | 2,936,570 |  |
LIABILITIES AND STOCKHOLDERS’ EQUITY |  |  |  |  |
Liabilities: |  |  |  |  |
Deposits: |  |  |  |  |
Noninterest-bearing |  | $ | 537,928 |  |  | $ | 569,170 |  |
Interest-bearing |  | 1,978,201 |  |  | 1,921,827 |  |
Total deposits |  | 2,516,129 |  |  | 2,490,997 |  |
Federal Home Loan Bank advances |  | 165,000 |  |  | 125,000 |  |
Other borrowed money |  | 63,375 |  |  | 78,352 |  |
Accrued expenses and other liabilities |  | 13,660 |  |  | 11,953 |  |
Total liabilities |  | $ | 2,758,164 |  |  | $ | 2,706,302 |  |
Stockholders’ equity |  |  |  |  |
Common stock, $1 par value; 50,000,000 shares authorized, 17,593,879 and 17,598,123 issued and outstanding, respectively |  | $ | 17,594 |  |  | $ | 17,598 |  |
Paid in capital |  | 167,922 |  |  | 167,537 |  |
Retained earnings |  | 113,485 |  |  | 111,573 |  |
Accumulated other comprehensive loss, net of tax |  | (60,224) |  |  | (66,440) |  |
Total stockholders’ equity |  | 238,777 |  |  | 230,268 |  |
Total liabilities and stockholders’ equity |  | $ | 2,996,941 |  |  | $ | 2,936,570 |  |

10

Colony Bankcorp, Inc. |  |  |  |
Consolidated Statements of Income (unaudited) |  |  |  |
|  | Three months ended March 31,
|  | 2023 |  | 2022
(dollars in thousands, except per share data) |  |
Interest income: |  |  |  |
Loans, including fees |  | $ | 22,153 |  |  | 16,010 |
Investment securities |  | 5,860 |  |  | 4,171 |
Deposits in banks and short term investments |  | 357 |  |  | 56 |
Total interest income |  | 28,370 |  |  | 20,237 |
Interest expense: |  |  |  |
Deposits |  | 4,999 |  |  | 599 |
Federal funds purchased |  | 88 |  |  | — |
Federal Home Loan Bank advances |  | 1,626 |  |  | 249 |
Other borrowings |  | 1,089 |  |  | 201 |
Total interest expense |  | 7,802 |  |  | 1,049 |
Net interest income |  | 20,568 |  |  | 19,188 |
Provision for credit losses |  | 900 |  |  | 50 |
Net interest income after provision for credit losses |  | 19,668 |  |  | 19,138 |
Noninterest income: |  |  |  |
Service charges on deposits |  | 1,914 |  |  | 1,825 |
Mortgage fee income |  | 1,183 |  |  | 2,912 |
Gain on sales of SBA loans |  | 1,057 |  |  | 1,726 |
(Loss)/Gain on sales of securities |  | — |  |  | 24 |
Interchange fees |  | 2,068 |  |  | 2,000 |
BOLI income |  | 331 |  |  | 312 |
Other |  | 1,106 |  |  | 353 |
Total noninterest income |  | 7,659 |  |  | 9,152 |
Noninterest expense: |  |  |  |
Salaries and employee benefits |  | 12,609 |  |  | 13,272 |
Occupancy and equipment |  | 1,622 |  |  | 1,619 |
Acquisition related |  | — |  |  | 139 |
Information technology expenses |  | 2,341 |  |  | 2,354 |
Professional fees |  | 715 |  |  | 869 |
Advertising and public relations |  | 993 |  |  | 766 |
Communications |  | 294 |  |  | 437 |
Other |  | 2,591 |  |  | 2,349 |
Total noninterest expense |  | 21,165 |  |  | 21,805 |
Income before income taxes |  | 6,162 |  |  | 6,485 |
Income taxes |  | 1,119 |  |  | 1,161 |
Net income |  | $ | 5,043 |  |  | $ | 5,324 |
Earnings per common share: |  |  |  |
Basic |  | $ | 0.29 |  |  | $ | 0.34 |
Diluted |  | 0.29 |  |  | 0.34 |
Dividends declared per share |  | 0.11 |  |  | 0.1075 |
Weighted average common shares outstanding: |  |  |  |
Basic |  | 17,595,688 |  |  | 15,877,695 |
Diluted |  | 17,595,688 |  |  | 15,877,695 |

11

Colony Bankcorp, Inc.
Quarterly Comparison
|  | 2023 |  | 2022 |  |  |  |
(dollars in thousands, except per share data) |  | First Quarter |  | Fourth Quarter |  | Third Quarter |  | Second Quarter |  | First Quarter |  |  |  |
Assets |  | $ | 2,996,941 |  |  | $ | 2,936,570 |  |  | $ | 2,805,912 |  |  | $ | 2,728,702 |  |  | $ | 2,686,788 |  |  |  |  |
Loans, net |  | 1,783,254 |  |  | 1,720,978 |  |  | 1,571,431 |  |  | 1,438,842 |  |  | 1,341,113 |  |  |  |  |
Deposits |  | 2,516,129 |  |  | 2,490,997 |  |  | 2,409,662 |  |  | 2,331,511 |  |  | 2,350,786 |  |  |  |  |
Total equity |  | 238,777 |  |  | 230,268 |  |  | 226,067 |  |  | 234,595 |  |  | 250,277 |  |  |  |  |
Net income |  | 5,043 |  |  | 5,551 |  |  | 5,252 |  |  | 3,415 |  |  | 5,324 |  |  |  |  |
Earnings per basic share |  | $ | 0.29 |  |  | $ | 0.31 |  |  | $ | 0.30 |  |  | $ | 0.19 |  |  | $ | 0.34 |  |  |  |  |
Key Performance Ratios: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Return on average assets |  | 0.69 | % |  | 0.77 | % |  | 0.75 | % |  | 0.51 | % |  | 0.81 | % |  |  |  |
Return on average total equity |  | 8.73 | % |  | 9.76 | % |  | 8.85 | % |  | 5.68 | % |  | 8.88 | % |  |  |  |
Total equity to total assets |  | 7.97 | % |  | 7.84 | % |  | 8.06 | % |  | 8.60 | % |  | 9.32 | % |  |  |  |
Tangible equity to tangible assets (a) |  | 6.27 | % |  | 6.10 | % |  | 6.22 | % |  | 6.52 | % |  | 7.25 | % |  |  |  |
Net interest margin |  | 3.08 | % |  | 3.23 | % |  | 3.25 | % |  | 3.15 | % |  | 3.13 | % |  |  |  |
(a) Non-GAAP measure - see “Explanation of Certain Unaudited Non-GAAP Financial Measures” for more information and reconciliation to GAAP. |  |  |  |

Colony Bankcorp, Inc.
Quarterly Loan Comparison
|  | 2023 |  | 2022 |  |  |  |
(dollars in thousands) |  | First Quarter |  | Fourth Quarter |  | Third Quarter |  | Second Quarter |  | First Quarter |  |  |  |
Core |  | $ | 1,614,216 |  |  | $ | 1,540,561 |  |  | $ | 1,372,257 |  |  | $ | 1,217,626 |  |  | $ | 1,093,513 |  |  |  |  |
Purchased |  | 185,637 |  |  | 196,545 |  |  | 214,356 |  |  | 235,179 |  |  | 260,519 |  |  |  |  |
Total |  | $ | 1,799,853 |  |  | $ | 1,737,106 |  |  | $ | 1,586,613 |  |  | $ | 1,452,805 |  |  | $ | 1,354,032 |  |  |  |  |

Colony Bankcorp, Inc. |  |  |  |  |  |  |  |  |  |
Quarterly Loans by Location Comparison |  |  |  |  |  |  |  |
|  | 2023 |  | 2022
(dollars in thousands) |  | First Quarter |  | Fourth Quarter |  | Third Quarter |  | Second Quarter |  | First Quarter
Alabama |  | $ | 41,118 |  |  | $ | 21,122 |  |  | $ | 7,291 |  |  | $ | 2,255 |  |  | $ | — |
Augusta |  | 53,415 |  |  | 52,226 |  |  | 42,079 |  |  | 31,576 |  |  | 32,270 |
Coastal Georgia |  | 248,253 |  |  | 259,730 |  |  | 252,083 |  |  | 246,187 |  |  | 229,976 |
Middle Georgia |  | 119,720 |  |  | 115,504 |  |  | 114,630 |  |  | 99,827 |  |  | 81,607 |
Atlanta and North Georgia |  | 419,480 |  |  | 375,106 |  |  | 356,421 |  |  | 299,901 |  |  | 264,355 |
South Georgia |  | 448,558 |  |  | 457,283 |  |  | 449,684 |  |  | 445,309 |  |  | 430,687 |
West Georgia |  | 204,664 |  |  | 210,676 |  |  | 177,431 |  |  | 170,847 |  |  | 157,050 |
Small Business Specialty Lending |  | 50,513 |  |  | 45,944 |  |  | 35,267 |  |  | 23,539 |  |  | 40,321 |
Consumer Portfolio Mortgages |  | 211,225 |  |  | 197,672 |  |  | 149,945 |  |  | 131,550 |  |  | 113,681 |
Marine/RV Lending |  | 2,060 |  |  | — |  |  | — |  |  | — |  |  | — |
Other |  | 847 |  |  | 1,843 |  |  | 1,782 |  |  | 1,814 |  |  | 4,085 |
Total |  | $ | 1,799,853 |  |  | $ | 1,737,106 |  |  | $ | 1,586,613 |  |  | $ | 1,452,805 |  |  | $ | 1,354,032 |

12