Colony Bankcorp Inc. Files Q2 2024 10-Q

TL;DR

Colony Bankcorp's Q2 2024 10-Q is in. Check financials.

AI Summary

Colony Bankcorp Inc. reported its financial results for the quarter ended June 30, 2024. The company's filing details its financial position and performance, including various asset and liability categories. Specific financial figures and operational details are provided within the document.

Why It Matters

This filing provides investors and analysts with the latest financial performance data for Colony Bankcorp Inc., crucial for evaluating the company's health and future prospects.

Risk Assessment

Risk Level: medium — As a financial institution, Colony Bankcorp is subject to various market and regulatory risks inherent in the banking sector.

Key Numbers

• 20240630 — Period End Date (Indicates the end of the reporting period for the 10-Q filing.)
• 20240808 — Filing Date (The date the 10-Q report was officially submitted to the SEC.)

Key Players & Entities

• COLONY BANKCORP INC (company) — Filer
• 20240630 (date) — Period of Report
• 20240808 (date) — Filing Date
• FITZGERALD (location) — City
• GA (location) — State

FAQ

Key Financial Figures

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

Filing Documents

• cban-20240630.htm (10-Q) — 2795KB
• exhibit31110-qxq22024.htm (EX-31.1) — 16KB
• exhibit31210-qxq22024.htm (EX-31.2) — 16KB
• exhibit32110-qxq22024.htm (EX-32.1) — 7KB
• 0000711669-24-000108.txt ( ) — 13914KB
• cban-20240630.xsd (EX-101.SCH) — 44KB
• cban-20240630_cal.xml (EX-101.CAL) — 121KB
• cban-20240630_def.xml (EX-101.DEF) — 319KB
• cban-20240630_lab.xml (EX-101.LAB) — 767KB
• cban-20240630_pre.xml (EX-101.PRE) — 561KB
• cban-20240630_htm.xml (XML) — 3329KB

– Financial Information

PART I – Financial Information Item 1.

Financial Statements

Financial Statements Consolidated Balance Sheets – June 3 0 , 2024 (unaudited) and December 31, 2023 (audited) 3 Consolidated Statements of Income – For the Three and Six Months Ended June 3 0 , 2024 and 2023 (unaudited) 4 Consolidated Statements of Comprehensive Income – For the Three and Six Months Ended June 3 0 , 2024 and 2023 (unaudited) 5 Consolidated Statements of Changes in Stockholder's Equity – For the Three and Six Months Ended June 3 0 , 2024 and 2023 (unaudited) 6 Consolidated Statements of Cash Flows – For the Six Months Ended June 3 0 , 2024 and 2023 (unaudited) 8

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 10 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 42 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 61 Item 4.

Controls and Procedures

Controls and Procedures 61

– Other Information

PART II – Other Information Item 1.

Legal Proceedings

Legal Proceedings 62 Item 1A.

Risk Factors

Risk Factors 62 Item 2. Unregistered Sale of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities 62 Item 3. Defaults Upon Senior Securities 62 Item 4. Mine Safety Disclosures 62 Item 5. Other Information 63 Item 6. Exhibits 63

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements COLONY BANKCORP, INC. AND SUBSIDIARIES Consolidated Balance Sheets June 30, 2024 December 31, 2023 (dollars in thousands, except per share data) (Unaudited) (Audited) ASSETS Cash and due from banks $ 22,404 $ 25,339 Federal funds sold and interest-bearing deposits in banks 59,598 57,983 Cash and cash equivalents 82,002 83,322 Investment securities available-for-sale, at fair value (amortized cost $ 424,685 and $ 455,294 , respectively) 376,580 407,382 Investment securities held-to-maturity, at amortized cost (fair value $ 393,359 and $ 405,576 , respectively) 442,945 449,031 Other investments 18,491 16,868 Loans held for sale 40,132 27,958 Loans, net of unearned income 1,865,574 1,883,470 Allowance for credit losses ( 18,806 ) ( 18,371 ) Loans, net 1,846,768 1,865,099 Premises and equipment 38,343 39,870 Other real estate owned 582 448 Goodwill 48,923 48,923 Other intangible assets 3,535 4,192 Bank-owned life insurance 57,173 56,925 Deferred income taxes, net 24,164 25,405 Other assets 28,269 27,999 Total assets $ 3,007,907 $ 3,053,422 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Deposits Noninterest-bearing $ 437,623 $ 498,992 Interest-bearing 2,022,602 2,045,798 Total deposits 2,460,225 2,544,790 Federal Home Loan Bank advances 205,000 175,000 Other borrowings 62,992 63,445 Other liabilities 14,947 15,252 Total liabilities 2,743,164 2,798,487 Stockholders' equity: Preferred stock, stated value $ 1,000 ; 10,000,000 shares authorized, none issued or outstanding as of June 30, 2024 and December 31, 2023, respectively — — Common stock, par value $ 1.00 per share; 50,000,000 shares authorized, 17,538,611 and 17,564,182 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively 17,539 17,564 Paid in capital 169,132 168,614 Retained earnings 131,256 124,400 Accumulated other comprehensive loss, net of tax ( 53,184 ) ( 55,643 ) Total stockholders' equi

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 and six months ended June 30, 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 Tallaha

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 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 of expected credit losses is based on relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amounts. Historical loss experience is generally the starting point for estimating expected credit losses. The Company then considers whether the historical loss experience should be adjusted for asset-specific risk characteristics or current conditions at the reporting date that did not exist over the historical period used. The Company also

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 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 calculated for the funded portion of loans at the portfolio level applied to the amount of commitments expected to fund. Allowance for Credit Losses – Held-to-Maturity ("HTM") Securities Management measures current expected credit losses on HTM debt securities on a collective basis by major security type. The estimate of current expected credit losses considers historical credit loss information that is a

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) Derivatives The Company records cas

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