Colony Bankcorp, Inc. · NYSE:CBAN
Colony Bankcorp — IPO Roadshow (February 2022)
47 slides from Colony Bankcorp's IPO roadshow presentation, Feb 7, 2022
Slide 1: Confidential Investor Presentation February 2022
C o n f i d e n t i a l I n v e s t o r P r e s e n t a t i o n F e b r u a r y 2 0 2 2
Slide 2: Disclaimer
2 This presentation is confidential and does not constitute or form part of any offer to sell, or a solicitation of an offer to purchase, any securities of Colony Bankcorp, Inc. (“Colony,” “CBAN” or the “Company”). The information in this confidential presentation may not be reproduced or redistribu
Slide 3: Use of Non-GAAP Financial Measures
3 This confidential presentation includes certain financial measures that are not measures recognized under U.S. generally accepted accounting principles (“GAAP”) and therefore are considered non-GAAP financial measures. The Company’s management uses these non-GAAP financial measures in their analys
Slide 4: Forward-Looking Statements
4 This presentation contains “forward-looking statements” within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). In addition, cert
Slide 5: Forward-Looking Statements (continued)
5 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
Slide 6: Equity Offering Term Sheet
6 Colony Bankcorp, Inc.Issuer Up to 15% Overallotment Option Base Offering Equity Offering Term Sheet Nasdaq Symbol CBAN Offering Type Follow-on public offering (100% primary shares) Security Common Stock $52.5 Million Use of Proceeds General corporate purposes to support our continued
Slide 7: Colony Bankcorp, Inc. Financial Highlights
7 Holding Company for Colony Bank was founded in 1975 Headquartered in Fitzgerald, Georgia $2.5 billion in assets at September 30, 2021 Completed the acquisition of SouthCrest Financial Group, Inc. on August 1, 2021, creating Georgia’s largest community bank and fourth largest bank headquart
Slide 8: Earnings Trends and Recent Acquisitions
8 Earnings Trends Completed acquisition of SouthCrest Financial Group, Inc. on August 1, 2021 o Stock and cash deal valued at $95.6 (3) million at completion o Acquired 9 branches in and around metro-Atlanta and other strategic Georgia markets Completed acquisition of Barnes Agency, a consumer p
Slide 9: Investment Considerations
9 Well-positioned for continued organic growth Potential for accelerated growth through accretive acquisitions Meaningfully enhanced earnings profile with the Company’s acquisition of SouthCrest Financial Group, Inc. Shareholder-friendly dividend policy Opportunities created by industry co
Slide 10: Investing in Technology
10 Investing in Technology Investing in the JAM Fintop Fund (one of the premier FinTech investment vehicles) Strategic long term investment return opportunity Ability to engage and partner with industry leading FinTech firms FinTech strategy based on these core tenets Better utilization of
Slide 11: Environmental, Social, Governance (ESG)
11 Environmental, Social, Governance (ESG) Environmental Increasing customer usage of electronic statements Reducing energy consumption by converting to LED lights Utilizing digital processes such as e-signature and digital board packages Banking renewable industries such as farming and ti
Slide 12: Management Team
12 Name / Position Age Background T. Heath Fountain President & Chief Executive Officer 46 Mr. Thomas Heath Fountain, CPA, has been President and Chief Executive Officer of the Company since July 2018. He previously served as Chief Executive Officer of Planters First Bank since July 2015. During his
Slide 13: Management Team
13 Name / Position Age Background Edward "Lee" Bagwell Executive Vice President, Chief Risk Officer & General Counsel 54 Mr. Edward Lee Bagwell, III has been Executive Vice President, Chief Risk Officer and General Counsel of the Company and the Bank since May 2019. He served as Executive Vice Presi
Slide 14: Management Team
14 Name / Position Age Background David Andrew “Andy” Borrman Executive Vice President & Chief Strategy Officer 51 Mr. David Andrew Borrmann served as the Chief Financial Officer at SouthCrest Financial Group, Inc. before joining the Company in 2021. He is Executive Vice President and Chief Strategy
Slide 15: Management Team
15 Name / Position Age Background Max "Eddie" Hoyle Jr. Executive Vice President & Chief Banking Officer 64 Mr. M. Edward “Eddie” Hoyle, Jr. has been Executive Vice President of the Company since June 2011 and Chief Banking Officer since May 2019. He served as Regional Executive Officer from June 20
Slide 16: Driving High Performance: Achieve Strong Organic Growth
16 Driving High Performance Achieve Strong Organic Growth Each Year Proactive business development system Increased accountability for loan and deposit production Created incentive plans to motivate bankers Retail marketing plan to grow deposits Streamlined our consumer and commercial depo
Slide 17: Seize on Expansion Opportunities
17 Driving High Performance Achieve Strong Organic Growth Each Year Seize on Expansion Opportunities Completed the acquisition of SouthCrest Financial in August 2021; 98 days from announcement to close Acquisition provides entry into attractive Northern Georgia markets and increases access to hi
Slide 18: Increase Operating Efficiency
18 Driving High Performance Achieve Strong Organic Growth Each Year Seize on Expansion Opportunities Increase Operating Efficiency Realignment plan executed in 2020 with focus on operating expense savings of approximately $1.0 million annually Optimize our balance sheet for improved earnings I
Slide 19: Increase Non-interest Income
19 Driving High Performance Achieve Strong Organic Growth Each Year Seize on Expansion Opportunities Increase Operating Efficiency Acquisition of The Barnes Agency completed on August 1, 2021 – forming Colony Insurance to offer consumer insurance solutions Growing our deposit account customer ba
Slide 20: Create a Culture of High Performance
20 Driving High Performance Achieve Strong Organic Growth Each Year Seize on Expansion Opportunities Increase Operating Efficiency Increase Non-interest Income Instill behaviors and habits that lead to great results Coach team members to improve performance Increase incentive- and performance-
Slide 21: SouthCrest Financial Group Acquisition Highlights
21 SouthCrest Financial Group, Inc.: Acquisition Highlights Creates Georgia’s largest community bank and fourth largest bank headquartered in the State (1) Establishes a metro-Atlanta corporate banking footprint with 8 commercial lenders Enhanced scale, growth, profitability and performance
Slide 22: Mortgage Division: Key Takeaways
22 In May 2019, Colony Bank acquired PFB Mortgage, which had more than $100 million in annual mortgage production in 2019 Added to our team originators in Albany, Athens, Macon, Savannah, Statesboro and Warner Robins Added seasoned mortgage executives Expanded regional market footprint Inc
Slide 23: Small Business Specialty Lending Group
23 Small Business Specialty Lending Group In July 2019, we opened a Metro-Atlanta office for our SBSL Group focused on SBA lending and other government guaranteed loans 11 team members added, including three business development officers, led by two veteran bankers, Darren Davis, President, and
Slide 24: Value Proposition To Our Customers
24 Value Proposition To Our Customers Since our founding in 1975, our mission has been to provide alternatives to traditional banking Focus on relationships that are beneficial to the customer and the Bank as one- sided relationships and transactions do not create value Strive to be trusted ad
Slide 25: Branch Footprint and Deposit History
25 Footprint Branch Footprint and Deposit History Note: Based on FDIC data as of June 30, 2021 per Bank-level Call Reports Source: S&P Global Market Intelligence Deposit History Branch City, State 2017 ($000) 2018 ($000) 2019 ($000) 2020 ($000) 2021 ($000) Fitzgerald, GA 222,239 231,078 253,439 279,
Slide 26: Attractive Markets
26 Note: Includes top eleven CBAN MSAs (total of 17 MSAs); Branch-level financial detail based on FDIC data as of June 30, 2021; Demographic data is estimated as of January 1, 2022 and based on 2021 U.S. Census data and annual surveys performed by Nielsen Source: S&P Global Market Intelligence CBAN
Slide 27: Deposit Market Share Rankings
27 Rk. Institution (State) Branch Count Market Deposits ($000) Market Share (%) Rk. Institution (State) Branch Count Market Deposits ($000) Market Share (%) 1 Colony Bankcorp Inc. (GA) 31 2,166,410 4.67% 1 Synovus Financia l Corp. (GA) 108 23,269,490$ 25.8% 2 United Bank Corp. (GA) 18 1,895,109 4.09
Slide 28: Loan Portfolio Composition
28 As of ($ in thousands) 2016 % 2017 % 2018 % 2019 % 2020 % 9/30/2021 % Construction & Land Development 42,168$ 6% 53,762$ 7% 60,310$ 8% 96,097$ 10% 121,093$ 11% 152,991$ 12% Other Commerical real estate 415,768 55% 418,669 55% 435,961 56% 540,239 56% 520,391 49% 752,633 57% Total Commerical Estate
Slide 29: Solid Core Deposit Franchise
29 Solid Core Deposit Franchise Note: Financial data as of September 30, 2021 (1) Core deposits defined as total deposits less jumbo time deposits Source: S&P Global Market Intelligence As of September 30, 2021, the Company had $2.2 billion in deposits Total deposits have increased by $750.1 mil
Slide 30: Strong Balance Sheet Growth
30 $765 $101 72% 61% 66% 2017Y 2018Y 2019Y 2020Y YTD 2021 $1,112 $1,337 $2,513 $1,233 $1,786 2017Y 2018Y 2019Y 2020Y YTD 2021 $2,195 $1,068 $1,564 2017Y 2018Y 2019Y 2020Y YTD 2021 $17 $1,029 Strong Balance Sheet Growth Note: Financial data as of September 30, 2021 (1) Total loans includes loans held
Slide 31: Delivering Shareholder Value
31 Delivering Shareholder Value (1) See Reconciliation of Non-GAAP Measures on pages 44 - 46 (2) Excludes the consideration of preferred stock dividends (3) Diluted Earnings Per Share shown for FY 2017 has been adjusted to exclude the impact of the Company’s $2.0 million nonrecurring deferred tax ex
Slide 32: Shareholder-Focused Dividend Policy
32 $0.025 $0.05 $0.075 $0.10 $0.1025 2017 2018 2019 2020 2021 Historical Quarterly Dividend Payment The Current Indicated Annual Rate is $0.41 Per Share, Equating to a Dividend Yield of 2.35% (1) and Payout Ratio of 22.1% Shareholder-Focused Dividend Policy (1) Based on market data as of January 26,
Slide 33: Yield, Cost and NIM Profitability Profile
33 Yield, Cost and NIM Profitability Profile Acquisition of SouthCrest Financial Group, Inc. Note: Dollar values in thousands; Financial data as of September 30, 2021; Net interest income and noninterest income for YTD 2021 have been annualized (1) Noninterest income excludes realized gains or losse
Slide 34: Asset Quality
34 Asset Quality Acquisition of SouthCrest Financial Group, Inc. Note: Financial data as of September 30, 2021 (1) Nonperforming assets excluding restructured loans, defined as the sum of nonaccrual loans, loans past due 90 days or more and foreclosed real estate; (2) Net Charge-Offs defined as loan
Slide 35: Capital Adequacy: Standalone vs. Pro Forma
35 8.4% 10.5% 12.0% 12.8% 6.4% 10.6% 14.0% 15.5% 16.3% 8.5% Leverage Ratio CET1 Capital Ratio Tier 1 Capital Ratio Total RBC Ratio TCE / TA Standalone Pro Forma Capital Adequacy Note: Financial data as of September 30, 2021; Pro Forma values adjusted for a hypothetical issuance of $52.5 million in c
Slide 36: Use of Proceeds
36 The Company expects to benefit from additional capital in several ways, including: Enabling Company to reaccelerate expansion by adding banking teams in current and new markets Expanding capacity for potential strategic acquisition opportunities that would complement the business while impr
Slide 37: Historical Stock Price Performance
37 ONE YEAR PRICE PERFORMANCE (%) 24.4 38.7 29.0 13.0 32.5 (10.0) 5.0 20.0 35.0 50.0 65.0 CBAN S&P U.S. BMI Banks - Southeast Region S&P U.S. BMI Banks S&P 500 KBW Nasdaq Bank Index 27.1 89.4 44.3 40.1 (40.0) (10.0) 20.0 50.0 80.0 110.0 CBAN S&P 500 KBW Nasdaq Bank Index S&P U.S. BMI Banks FIVE YEAR
Slide 38: Investment Highlights
38 DISCIPLINED ACQUIRER SUPERIOR FINANCIAL PERFORMANCE EXPERIENCED LEADERSHIP TEAM STRONG DEPOSIT FRANCHISE FRANCHISE WITH SCARCITY VALUE GROWTH OPPORTUNITIES Investment Highlights
Slide 39: Appendix
39 Appendix
Slide 40: Balance Sheet and Capital Ratios
40 Balance Sheet FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 YTD 2021 Total Assets $1,174,149 $1,210,442 $1,232,755 $1,251,878 $1,515,313 $1,763,974 $2,512,581 Gross Loans $758,279 $753,923 $764,788 $781,526 $968,814 $1,059,503 $1,309,860 Total Deposits $1,011,554 $1,044,357 $1,067,985 $1,085,12
Slide 41: Q4 2021 Balance Sheet and Core Performance
41 Total Gross Loans ended the quarter at $1,338.0 million (up $278.5 million or 26.3% as compared to Q4 2020) Total Deposits ended the quarter at $2,374.6 million (up $929.6 million or 64.3% as compared to Q4 2020) Balance Sheet Core Performance Net Income: - $4.2 million or $0.30 per diluted
Slide 42: Credit Quality and Capital Ratios
42 Non-performing assets (1): totaled $5.8 million in Q4 2021, compared with $10.1 million in Q4 2020 OREO: $0.3 million in Q4 2021 (down 72.1% from $1.0 million for Q4 2020) Net Loan Charge-Offs/(Recoveries): - $(17) thousand or (0.01)% of average loans for Q4 2021 (compared with $189 thousan
Slide 43: Potential Acquisition Targets
43 Potential Acq. Targets: $100M - $2.0B Assets Given the Company’s footprint and general market forces, there should be attractive acquisition opportunities in the future due to liquidity constraints, efficiency issues, sub-scale platforms, succession planning, etc. * Potential Acquisition Target
Slide 44: Reconciliation of Non-GAAP Measures
44 As of 2015 2016 2017 2018 2019 2020 9/30/2021 Total Stockholders ' Equity 95,457$ 93,388$ 90,323$ 95,692$ 130,506$ 144,488$ 217,130$ Preferred Stock (18,021) (9,360) - - - - - Common Equity 77,436 84,028 90,323 95,692 130,506 144,488 217,130 Goodwi l l - - - (202) (16,477) (15,992) (52,706) Other
Slide 45: Reconciliation of Non-GAAP Measures
45 3 Mos. Ended 9 Mos. Ended 2015 2016 2017 2018 2019 2020 9/30/2021 9/30/2021 Net Income Avai lable to Common 5,998$ 7,180$ 7,540$ 11,917$ 10,211$ 11,815$ 5,583$ 14,500$ Amort. Of Intangibles / Adj. to Goodwi l l 36 36 36 48 600 1,270 357 699 Statutory Tax Rate 35.0% 35.0% 35.0% 21.0% 21.0% 21.0% 2
Slide 46: Reconciliation of Non-GAAP Measures
46 3 Mos. Ended 9 Mos. Ended 2015 2016 2017 2018 2019 2020 9/30/2021 9/30/2021 Net Income Available to Common 5,998$ 7,180$ 7,540$ 11,917$ 10,211$ 11,815$ 5,583$ 14,500$ Preferred Dividends 2,375$ 1,493$ 211$ -$ -$ -$ -$ -$ Net Income Before Extra 8,373$ 8,673$ 7,751$ 11,917$ 10,211$ 11,815$ 5,583$
Slide 47: Colony Bankcorp, Inc. Right here with you.
et COLONY BANKCORP, INC. Right here with you. NASDAQ: CBAN