Colony Bankcorp, Inc. · NYSE:CBAN
Colony Bankcorp — Q2 2020 Earnings Presentation
30 slides from Colony Bankcorp's earnings presentation, Aug 10, 2020
Slide 1: Investor Presentation Second Quarter 2020
Investor Presentation Second Quarter - 2020 0
Slide 2: Cautionary Statements
CAUTIONARY STATEMENTS 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, and Section 21E of the Securities Exchange Act of 1934, as amended. In addition, certain statements may be co
Slide 3: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES Statements included in this presentation include non-GAAP financial measures and should be read along with the accompanying tables, which provide a reconciliation of non-GAAP financial measure to GAAP financial measures. The non-GAAP financial measures used in this presen
Slide 4: Company Profile
COMPANY PROFILE Locations . Founded in 1975 . Headquartered in Fitzgerald, Georgia Atlanta Athens . $1.8 billion in assets at June 30, 2020 Conyers . 33 locations in Georgia Augusta . 376 team members LaGrange Macon . Traded on NASDAQ – symbol “CBAN” Warner Robins . The eighth largest Georgia-based
Slide 5: Leadership Team
LEADERSHIP TEAM Years Years in Name Position With Banking Colony T. Heath Fountain President and Chief Executive Officer 20 2 Edward "Lee" Bagwell EVP, Chief Risk Officer and General Counsel 17 17 Leonard H. “Lenny” EVP, Chief Credit Officer 25 1 Bateman Kimberly Dockery EVP, Chief Administrative Of
Slide 6: Driving High Performance: Organic Growth
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 depos
Slide 7: Driving High Performance: Expansion Opportunities
DRIVING HIGH PERFORMANCE . Achieve strong organic growth each year . Seize on expansion opportunities . Technology and regulatory headwinds are causing industry consolidation . Industry consolidation is creating opportunity to acquire customers and talent . Acquisition of both LBC Bancshares, Inc. (
Slide 8: Acquisition Activity
ACQUISITION ACTIVITY Overview Franchise Footprint . Completed acquisition of LBC on May 1, 2019 Atlanta Athens Conyers . Holding company for Calumet Bank Augusta LaGrange Macon . Natural expansion into logical, Warner Robins Statesboro contiguous markets in western Georgia Columbus . Savannah Added
Slide 9: Driving High Performance: Operating Efficiency
DRIVING HIGH PERFORMANCE . Achieve strong organic growth each year . Seize on expansion opportunities . Increase operating efficiency . Optimize our balance sheet for improved earnings . Improve processes for efficiency and better controls . Run a more efficiently staffed branch network . Utilize te
Slide 10: Driving High Performance: Non-Interest Income
DRIVING HIGH PERFORMANCE . Achieve strong organic growth each year . Seize on expansion opportunities . Increase operating efficiency . Increase non-interest income . Growing our deposit account customer base increases service charge and interchange revenue . Acquisition of PFB Mortgage added to our
Slide 11: Mortgage Division
MORTGAGE DIVISION . In May 2019, Colony Bank acquired PFB Mortgage, which had more than $100 million in annual mortgage production in 2019 . Added to our team by adding originators in Albany, Athens, Macon, Savannah, Statesboro and Warner Robins . Added seasoned mortgage executives through acquisiti
Slide 12: Small Business Specialty Lending Group
SMALL BUSINESS SPECIALTY LENDING GROUP . In July 2019, opened a metro Atlanta office for Small Business Specialty Lending (SBSL) Group focused on Small Business Administration (SBA) lending and other government guaranteed loans . 11 team members added, including three business development officers,
Slide 13: Driving High Performance: Culture
DRIVING HIGH PERFORMANCE . Achieve strong organic growth each year . Seize on expansion opportunities . Improve operating efficiency . Increase non-interest income . Create a culture of high performance . Instill behaviors and habits that lead to great results . Coaching team members to improve perf
Slide 14: Value Proposition to Our Customers
VALUE PROPOSITION TO OUR CUSTOMERS . Since our founding in 1975, our mission is to provide an alternative to traditional banking that our customers deserve . Focus on relationships that are beneficial to the customer and the Bank – one-sided relationships and transactions do not create value . Striv
Slide 15: Annual Financial Highlights
ANNUAL FINANCIAL HIGHLIGHTS 2015 2016 2017 2018 2019 Diluted earnings per share $0.71 $0.84 $0.87 $1.40 $1.12 Adjusted earnings per $0.80 $0.87 $1.12 $1.43 $1.35 diluted share (1) Dividends per share $0.00 $0.00 $0.10 $0.20 $0.30 Return on average assets 0.52% 0.62% 0.63% 0.99% 0.72% Return on avera
Slide 16: Financial Highlights
FINANCIAL HIGHLIGHTS Trailing 5 quarters 2Q2019 3Q2019 4Q2019 1Q2020 2Q2020 Diluted earnings per share $0.23 $0.27 $0.29 $0.17 $0.23 Adjusted earnings per $0.40 $0.34 $0.32 $0.19 $0.25 diluted share (1) Dividends per share $0.075 $0.075 $0.075 $0.10 $0.10 Return on average assets 0.60% 0.67% 0.73% 0
Slide 17: Annual Balance Sheet Financial Highlights
ANNUAL BALANCE SHEET FINANCIAL HIGHLIGHTS (Dollars in millions) 2015 2016 2017 2018 2019 Total assets $ 1,174.2 $ 1,210.4 $ 1,232.8 $ 1,251.9 $ 1,515.3 Loans $ 758.7 $ 754.3 $ 765.3 $ 782.4 $ 971.2 Unearned income $ (0.4) $ (0.4) $ (0.5) $ (0.5) $ (0.6) Unamortized discount on $ - $ - $ - $ (0.3) $
Slide 18: Balance Sheet Financial Highlights
BALANCE SHEET FINANCIAL HIGHLIGHTS Trailing 5 quarters (Dollars in millions) 2Q2019 3Q2019 4Q2019 1Q2020 2Q2020 Total assets $ 1,506.5 $ 1,477.7 $ 1,515.3 $ 1,510.0 $ 1,777.6 Loans $ 937.6 $ 960.8 $ 971.2 $ 990.8 $ 1,119.6 Unearned income $ (0.6) $ (0.6) $ (0.6) $ (0.5) $ (4.4) Unamortized discount
Slide 19: Shareholder Focused Dividend Policy
SHAREHOLDER FOCUSED DIVIDEND POLICY Quarterly Dividend Payment $0.10 $0.075 $0.05 $0.025 2017 2018 2019 2020 The current indicated annual rate is $0.40 per share, equating to a yield of 3.4% and a payout ratio of 43% 18
Slide 20: Capital Ratios
CAPITAL RATIOS 15.6% 15.9% 14.6% 15.0% 13.2% 13.4% 13.3% 12.7% 12.2% 12.5% 12.4% 11.8% 10.3% 10.4% 9.9% 10.2% 10.3% 9.0% 9.3% 9.2% 2017 2018 2019 2Q2019 2Q2020 Tier One Leverage Ratio Tier One Ratio Total Risk-based Capital Ratio Common Equity Tier One Capital Ratio 19
Slide 21: Solid Core Deposit Franchise
SOLID CORE DEPOSIT FRANCHISE As of June 30, 2020 Time Deposits 21% Interest-Bearing Demand 28% Savings and Noninterest-Bearing Money-markets Demand 28% 23% Total Deposits: $1.42 billion MRQ Cost of Deposits: 0.41% 20
Slide 22: Loan Portfolio Breakdown
LOAN PORTFOLIO BREAKDOWN (1) As of June 30, 2020 $1,119.6 million $837.7 million Residential Commercial Real Estate real estate real estate 75% 26% 51% Commercial and agricultural 23% Farmland 8% Commercial Consumer and Residential construction 9% Other 2% construction 6% (1) Represents gross loan b
Slide 23: Loan Portfolio
LOAN PORTFOLIO (1) (Dollars in millions) Organic Loan Growth (Excluding PPP Loans) of $20.5 million - 2% $990.8 $981.8 $937.6 $960.8 $971.2 $863.0 $798.3 $828.4 $850.5 $842.5 (2) 6/30/19 9/30/19 12/31/19 3/31/20 6/30/20 Total Loans Organic Loans (1) Represents gross loan balances. (2) Excludes PPP l
Slide 24: COVID-Related Activity
COVID-RELATED ACTIVITY . Originated $137.8 million in PPP loans . Prospected new customers from larger banks and executed non-PPP loans and other fee-generating income . Branches have been reconfigured and are currently open and operating in a way to protect team members and customers . Able to serv
Slide 25: COVID-Related Active Loan Deferrals by Terms
COVID-RELATED ACTIVE LOAN DEFERRALS BY TERMS (Dollars in millions) Number Amount Total 30 day deferrals 2 $ 339.5 Total 60 day deferrals 25 $ 5,496.9 Total 90 day deferrals 32 $ 52,125.0 Interest only 30 days 2 $ 8,550.8 Interest only 60 days 54 $ 19,758.0 Interest only 90 days 8 $ 4,698.0 Interest
Slide 26: COVID-Related Active Loan Deferrals by Collateral Type
COVID-RELATED ACTIVE LOAN DEFERRALS BY COLLATERAL TYPE (Dollars in millions) Number Amount Hotel 19 $ 47,335.3 Retail 18 $ 17,020.0 Restaurants 3 $ 1,219.8 1-4 Family Investment Properties 60 $ 11,977.8 Daycares 1 $ 1,766.1 Office (not medical) 10 $ 3,310.1 Shopping Center 4 $ 4,424.3 Hospitals/Medi
Slide 27: COVID-Related Deferred Hotel Loans
COVID-RELATED DEFERRED HOTEL LOANS . $31.7 million or 67% in Savannah, GA, MSA . $36.8 million or 78% in limited service hotels . Hotel flags: . $22.3 million or 47% top tier . $17.9 million or 38% lower tier . $7.2 million or 15% independent 26
Slide 28: Investment Considerations
INVESTMENT CONSIDERATIONS . Well positioned for continued organic growth . Potential for accelerated growth through acquisitions . Improving earnings outlook . Shareholder friendly dividend policy . Opportunities created by industry consolidation . Seasoned leadership with a proven track record 27
Slide 29: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES (Dollars in thousands, except per share data) 2019 2020 Second Third Fourth First Second Quarter Quarter Quarter Quarter Quarter Operating noninterest expense reconciliation Noninterest expense (GAAP) $ 13,014 $ 13,358 $ 13,496 $ 13,251 $ 13,375 Acquisition-relate
Slide 30: Colony Bankcorp, Inc.
COLONY BANKCORP, INC. Rightthore wilh yous NASDAQ: CBAN