Colony Bankcorp Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Colony Bankcorp Inc. has filed its Q1 2024 10-Q report detailing financial performance and position.</b>

AI Summary

COLONY BANKCORP INC (CBAN) filed a Quarterly Report (10-Q) with the SEC on May 9, 2024. Colony Bankcorp Inc. filed its quarterly report (10-Q) for the period ending March 31, 2024. The filing covers the first quarter of fiscal year 2024. The company's principal business is commercial banking. The filing includes financial data for the periods ending March 31, 2024, December 31, 2023, and March 31, 2023. Key financial statement components like Common Stock, Additional Paid-In Capital, Retained Earnings, and Accumulated Other Comprehensive Income are detailed for various periods.

Why It Matters

For investors and stakeholders tracking COLONY BANKCORP INC, this filing contains several important signals. This 10-Q filing provides investors with the latest financial snapshot of Colony Bankcorp Inc., crucial for assessing its current performance and stability. Understanding the details within this report allows stakeholders to evaluate the bank's financial health, asset composition, and equity structure as of Q1 2024.

Risk Assessment

Risk Level: medium — COLONY BANKCORP INC shows moderate risk based on this filing. The company operates in the commercial banking sector, which is subject to significant regulatory oversight and economic fluctuations, as indicated by the nature of its business and the standard reporting requirements for a 10-Q filing.

Analyst Insight

Investors should review the detailed financial statements and risk factors within the 10-Q to understand Colony Bankcorp's current financial standing and potential risks.

Key Numbers

• 2024-03-31 — Period End Date (CONFORMED PERIOD OF REPORT)
• 2024-05-09 — Filing Date (FILED AS OF DATE)
• 2024-01-01 — Quarter Start Date (Q1 2024)
• 2023-12-31 — Prior Year End Date (Financial Data Reference)
• 2023-03-31 — Prior Year Quarter End Date (Financial Data Reference)

Key Players & Entities

• COLONY BANKCORP INC (company) — FILER
• CBAN (company) — Ticker Symbol
• 2024-03-31 (date) — CONFORMED PERIOD OF REPORT
• 2024-05-09 (date) — FILED AS OF DATE
• GA (location) — STATE OF INCORPORATION
• FITZGERALD (location) — CITY
• 6022 (industry) — STANDARD INDUSTRIAL CLASSIFICATION
• 115 SOUTH GRANT STREET (address) — BUSINESS ADDRESS

FAQ

Risk Factors

• Regulatory Environment [medium — regulatory]: The company operates under the stringent regulatory framework applicable to commercial banks, which can impact operations and profitability.
• Economic Conditions [medium — market]: Changes in economic conditions, interest rates, and credit markets can affect the bank's lending activities, investment portfolio, and overall financial performance.
• Operational Risks [medium — operational]: The bank faces operational risks inherent in financial services, including cybersecurity threats, system failures, and the need for effective internal controls.
• Credit Risk [high — financial]: The primary financial risk involves the potential for borrowers to default on loans, impacting the bank's asset quality and profitability.

Key Dates

• 2024-03-31: Quarter End — End of the reporting period for the 10-Q filing.

Key Financial Figures

• $1.00 — ich registered Common Stock, Par Value $1.00 per share CBAN The NASDAQ Stock Market

Filing Documents

• cban-20240331.htm (10-Q) — 2273KB
• exhibit31110-qxq12024.htm (EX-31.1) — 16KB
• exhibit31210-qxq12024.htm (EX-31.2) — 16KB
• exhibit32110-qxq12024.htm (EX-32.1) — 7KB
• 0000711669-24-000061.txt (&nbsp;) — 12263KB
• cban-20240331.xsd (EX-101.SCH) — 43KB
• cban-20240331_cal.xml (EX-101.CAL) — 117KB
• cban-20240331_def.xml (EX-101.DEF) — 309KB
• cban-20240331_lab.xml (EX-101.LAB) — 738KB
• cban-20240331_pre.xml (EX-101.PRE) — 538KB
• cban-20240331_htm.xml (XML) — 2860KB

– Financial Information

PART I – Financial Information Item 1.

Financial Statements

Financial Statements Consolidated Balance Sheets – March 3 1 , 202 4 (unaudited) and December 31, 202 3 (audited) 3 Consolidated Statements of Income – For the Three Months Ended March 3 1 , 202 4 and 202 3 (unaudited) 4 Consolidated Statements of Comprehensive Income – For the Three Months Ended March 3 1 , 202 4 and 202 3 (unaudited) 5 Consolidated Statements of Changes in Stockholder's Equity – For the Three Months Ended March 3 1 , 202 4 and 202 3 (unaudited) 6 Consolidated Statements of Cash Flows – For the Three Months Ended March 3 1 , 202 4 and 202 3 (unaudited) 7

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 9 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 37 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 54 Item 4.

Controls and Procedures

Controls and Procedures 54

– Other Information

PART II – Other Information Item 1.

Legal Proceedings

Legal Proceedings 55 Item 1A.

Risk Factors

Risk Factors 55 Item 2. Unregistered Sale of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities 55 Item 3. Defaults Upon Senior Securities 55 Item 4. Mine Safety Disclosures 55 Item 5. Other Information 55 Item 6. Exhibits 56

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements COLONY BANKCORP, INC. AND SUBSIDIARIES Consolidated Balance Sheets March 31, 2024 December 31, 2023 (dollars in thousands, except per share data) (Unaudited) (Audited) ASSETS Cash and due from banks $ 22,914 $ 25,339 Federal funds sold and interest-bearing deposits in banks 71,755 57,983 Cash and cash equivalents 94,669 83,322 Investment securities available for sale, at fair value (amortized cost $ 431,138 and $ 455,294 , respectively) 382,953 407,382 Investment securities held to maturity, at amortized cost (fair value $ 398,852 and $ 405,576 , respectively) 447,157 449,031 Other investments 16,034 16,868 Loans held for sale 31,102 27,958 Loans, net of unearned income 1,859,018 1,883,470 Allowance for credit losses ( 18,657 ) ( 18,371 ) Loans, net 1,840,361 1,865,099 Premises and equipment 39,381 39,870 Other real estate owned 562 448 Goodwill 48,923 48,923 Other intangible assets 3,855 4,192 Bank-owned life insurance 56,765 56,925 Deferred income taxes, net 24,587 25,405 Other assets 29,160 27,999 Total assets $ 3,015,509 $ 3,053,422 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Deposits Noninterest-bearing $ 476,413 $ 498,992 Interest-bearing 2,046,335 2,045,798 Total deposits 2,522,748 2,544,790 Federal Home Loan Bank advances 155,000 175,000 Other borrowings 62,969 63,445 Other liabilities 14,878 15,252 Total liabilities $ 2,755,595 $ 2,798,487 Stockholders' equity: Preferred stock, stated value $ 1,000 ; 10,000,000 shares authorized, none issued or outstanding as of March 31, 2024 and December 31, 2023, respectively — — Common stock, par value $ 1.00 per share; 50,000,000 shares authorized, 17,558,611 and 17,564,182 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively $ 17,559 $ 17,564 Paid in capital 168,951 168,614 Retained earnings 127,758 124,400 Accumulated other comprehensive loss, net of tax ( 54,354 ) ( 55,643 ) Total stockho

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) (1) Summary of Significant Accounting Policies Presentation Colony Bankcorp, Inc. (the "Company") is a bank holding company located in Fitzgerald, Georgia. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Colony Bank, Fitzgerald, Georgia (the "Bank"). The "Company" or "our," as used herein, includes Colony Bank, except where the context requires otherwise. All adjustments consisting of normal recurring accruals which are, in the opinion of management, necessary for fair presentation of the interim consolidated financial statements, have been included and fairly and accurately present the financial position, results of operations and cash flows of the Company. All significant intercompany accounts have been eliminated in consolidation. The accounting and reporting policies of the Company conform to U.S. generally accepted accounting principles ("GAAP") utilized in the commercial banking industry for interim financial information and Regulation S-X. Accordingly, the accompanying unaudited interim consolidated financial statements do not include all of the information or notes required for complete financial statements. The results of operations for the three months ended March 31, 2024 are not necessarily indicative of the results which may be expected for the year ending December 31, 2024. These statements should be read in conjunction with the consolidated financial statements and notes thereto in the Company's Annual Report on Form 10-K for the year ended December 31, 2023 ("2023 Form 10-K"). Nature of Operations The Bank provides a full range of retail, commercial and mortgage banking services as well as government guaranteed lending, consumer insurance, wealth management and merchant services for consumers and small- to medium-size businesses located primarily in north, central, south and coastal Georgia, Birmingham, Alabama and Tallahassee an

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) Concentrations of Credit Risk Concentrations of credit risk can exist in relation to individual borrowers or groups of borrowers, certain types of collateral, certain types of industries, or certain geographic regions. The Company has a concentration in real estate loans as well as a geographic concentration that could pose an adverse credit risk. At March 31, 2024, approximately 84 % of the Company's loan portfolio was concentrated in loans secured by real estate. A substantial portion of borrowers' ability to honor their contractual obligations is dependent upon the viability of the real estate economic sector. Management continues to monitor these concentrations and has considered these concentrations in its allowance for credit loss analysis. The success of the Company is dependent, to a certain extent, upon the economic conditions in the geographic markets it serves. Adverse changes in the economic conditions in these geographic markets would likely have a material adverse effect on the Company's results of operations and financial condition. The operating results of the Company depend primarily on its net interest income. Accordingly, operations are subject to risks and uncertainties surrounding the exposure to changes in the interest rate environment. At times, the Company may have cash and cash equivalents at financial institutions in excess of federal deposit insurance limits. The Company places its cash and cash equivalents with high credit quality financial institutions whose credit ratings are monitored by management to minimize credit risk. Allowance for Credit Losses ("ACL") – Loans The current expected credit loss ("CECL") approach requires an estimate of the credit losses expected over the life of an exposure (or pool of exposures). It replaced the incurred loss approach's threshold that delayed the recognition of a credit loss until it was probable a loss event was incurred. The estimate

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) Commercial, financial & agricultural - Risks to this loan category include the inability to monitor the condition of the collateral, which often consists of inventory, accounts receivable and other non-real estate assets. Equipment and inventory obsolescence can also pose a risk. Declines in general economic conditions and other events can cause cash flows to fall to levels insufficient to service debt. Consumer and other - Risks common to consumer direct loans include unemployment and changes in local economic conditions as well as the inability to monitor collateral consisting of personal property. When management determines that foreclosure is probable or when the borrower is experiencing financial difficulty at the reporting date and repayment is expected to be provided substantially through the operation or sale of the collateral, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. Allowance for Credit Losses – Off-Balance Sheet Credit Exposures Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and standby letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. Management estimates expected credit losses on commitments to extend credit over the contractual period during which the Company is exposed to credit risk on the underlying commitments. The ACL on off-balance sheet credit exposures is adjusted as a provision for credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. The ACL is calculated using the same aggregate reserve rates ca

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) Changes in the ACL are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the ACL when management believes the uncollectibility of an AFS security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Derivatives The Company records cash flow hedges at the inception of a derivative contract based on management's intentions and belief as to the likely effectiveness of the hedge. Cash flow hedges represent a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability. For a cash flow hedge, the gain or loss on the derivative is recorded in other comprehensive income ("OCI") and is reclassified into earnings in the same period during which the hedged transaction affects earnings. The changes in the fair value of a derivative that is not highly effective in hedging the expected cash flows of the hedged item are recognized immediately as interest expense in the consolidated statements of income. Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in noninterest income or noninterest expense. Cash flows from hedges are classified in the consolidated statements of cash flows in the same manner as the items being hedged. The Company formally documents the relationship between derivatives and hedged items, as well as the risk management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. The Company also formally assesses, both at the hedge's inception and

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