Colony Bankcorp, Inc. · NYSE:CBAN
Colony Bankcorp — Debt Investor Presentation (May 2022)
52 slides from Colony Bankcorp's debt investor presentation, May 23, 2022
Slide 1: Subordinated Notes Offering Investor Presentation
1 9 CONFIDENTIAL May 9, 2022 Subordinated Notes Offering Investor Presentation NASDAQ: CBAN
Slide 2: Confidential presentation disclaimer
2 This confidential presentation (this “Presentation”) has been prepared solely for general informational purposes by Colony Bankcorp, Inc. (the “holding company”, and, together with its wholly owned subsidiary Colony Bank (the “Bank”), the “Company”, “we”, or “our”), and is being furnished solely f
Slide 3: Risk factors and confidentiality notice
3 This Presentation has been prepared by the Company solely for informational purposes based on information regarding our operations, as well as information from public sources. This Presentation is being furnished on a confidential basis to a limited number of qualified institutional buyers. The in
Slide 4: Non-GAAP financial measures notice
4 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 presentation include the followi
Slide 5: Table of Contents
5 Executive Summary 6I Management Team & Ownership Information 18II Assets Highlights 24III Liabilities Highlights 31IV Capital Highlights 34V Income Statement Highlights 37VI Appendix 44VII Table of Contents
Slide 6: I. Executive Summary
I. Executive Summary we, COLONY "BANKCOR?, INC. 6
Slide 7: Terms of the Offered Securities
7 CBAN / NASDAQ Global Market 10-year term, 5-year no-call period Colony Bankcorp, Inc., the financial holding company of Colony Bank (the “Bank”) May 2022 Coupon Optional Redemption Regulatory Capital Use of Proceeds Expected Pricing Date Sole Placement Agent Issuer Ticker / Exchange Aggregate Prin
Slide 8: Company Overview and Franchise Footprint
8 Franchise Footprint(1) Company Overview Company Profile Source: S&P Capital IQ Pro; company-provided documents (1) The map above does not include the Company’s loan production office in Birmingham, Alabama (2) Community banks defined as banks having less than $10.0 billion in total assets as of Ma
Slide 9: Investment Highlights
9 Experienced Management Team ▪ T. Heath Fountain (President & Chief Executive Officer) has over 21 years of banking experience ▪ Andy Borrmann (Executive Vice President & Chief Financial Officer) has over 18 years of banking experience and has been on the leadership team since the merger with South
Slide 10: Company Timeline
10 782 869 998 1,108 1,214 1,209 1,253 1,307 1,276 1,195 1,139 1,149 1,147 1,174 1,210 1,233 1,252 1,515 1,764 2,692 2,687 - 500 1,000 1,500 2,000 2,500 3,000 Company Timeline Source: S&P Capital IQ Pro; company-provided documents Acquired 1 branch from Planters First ($20mm in loans; $10mm in depos
Slide 11: February 2022 Common Equity Offering
11 February 2022 Common Equity Offering Source: S&P Capital IQ Pro; equity offering press release (1) See “Reconciliation of Non-GAAP Measures” on slide 52 ▪ February 10, 2022 – The Company completed an underwritten public offering of 3,848,485 shares of its common stock (which included a full exerc
Slide 12: Attractive Markets
12 Attractive Markets Source: S&P Capital IQ Pro Note: Includes top 11 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 Do
Slide 13: Noninterest Income Divisions
13 Noninterest Income Divisions ▪ Increased volume in mortgage division production: ▪ $97.2mm in production in 1Q22 ▪ $405.0mm in production in FY 2021 ▪ $337.9mm in production in FY 2020 ▪ Added experienced origination teams in Athens, Atlanta, Augusta, LaGrange, and Savannah, focused on expanding
Slide 14: Pro Forma Impact - $40mm Issuance
14 Source: S&P Capital IQ Pro Pro Forma Impact - $40mm Issuance Actual Sub Debt Pro Forma Bank Level Pro Forma Regulatory Capital 03/31/22 Adj. 03/31/22 Common Equity Before Adjustments 236,422$ 19,060$ 255,482$ Less: DTAs from NOL and Tax Credit 131 – 131 Less: Goodwill Net of DTLs 52,882 – 52,882
Slide 15: Interest Coverage and Debt / Equity
15 ($ in thousands) Interest Coverage 2022E 2022 Pro Forma Consolidated Pre-Tax Earnings Consolidated Pre-Tax Income 31,737 31,737 Interest Expense on Previously Held Debt 589 589 A Pre-Tax Earnings Before BHC Debt Interest Expense 32,326 32,326 BHC Debt Interest Expense New Sub Debt Interest Expens
Slide 16: PT Score notes
16 Note: PT Score™ is a proprietary risk assessment system created using numerous call report based ratios selected by Performance Trust. PT Score™ is based on bank level data and does not incorporate holding company leverage or any other consolidated financial metrics. PT Score™ is based on unadjus
Slide 17: Relative Risk Analysis – PT Score Pro Forma
17 Analysis includes the estimated effect of a $40.0 million sub debt issuance at the Company with $19.1 million of proceeds downstreamed to the Bank as common equity capital immediately. The timing and amount of the actual capital infusion to the Bank may differ. All other simulation adjustments ba
Slide 18: II. Management Team & Ownership Information
18 II. Management Team & Ownership Information
Slide 19: Key Executive Officers
19 Key Executive Officers 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 sinc
Slide 20: Key Executive Officers, continued
20 Key Executive Officers, continued 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.
Slide 21: Key Executive Officers, continued
21 Key Executive Officers, continued Name / Position Age Background Brian D. Schmitt Executive Vice Chairman 60 Mr. Brian D. Schmitt has been Executive Vice Chairman of the Company since August 2021. Formerly, Mr. Schmitt served as CEO and President of SouthCrest Financial Group, Inc. beginning Augu
Slide 22: Key Executive Officers, continued
22 Key Executive Officers, continued 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 Regio
Slide 23: Board Members & Insiders
23 Board Members & Insiders 7.6% Other 92.4% Holder Investor Type Shares Held Ownership (%) Jonathan Ross Director 484,543 2.76% Scott Downing Director 221,007 1.26% Harold Wyatt, I I I Director 132,850 0.75% Terry Hester Director 104,179 0.59% Brian Schmitt Director, Executive Officer 73,533 0.42%
Slide 24: III. Assets Highlights
Ill. Assets Highlights Colony 24
Slide 25: Balance Sheet Growth
25 Total LoansTotal Assets ($ in millions) ($ in millions) $1,249.8 $1,511.4 $1,760.9 $2,687.3 $2,682.5 – $750.0 $1,500.0 $2,250.0 $3,000.0 2018Y 2019Y 2020Y 2021Y 2022Q1 $781.5 $978.9 $1,111.9 $1,376.1 $1,378.3 – $400.0 $800.0 $1,200.0 $1,600.0 2018Y 2019Y 2020Y 2021Y 2022Q1 $1,086.1 $1,296.3 $1,44
Slide 26: Investment Portfolio Composition & Performance
26 Portfolio Management Statistics03/31/22 Asset Class Breakdown ▪ The investment portfolio consists largely of commercial and residential mortgage-backed securities ▪ Historical investment portfolio returns(1): ▪ 1 year: (4.22%), 16th percentile(2) ▪ This number accounts for the acquisition of Sout
Slide 27: Loan Portfolio Diversification & Growth
27 Q1 2022 Loan CompositionLoan Trends ($MM) ▪ As of 03/31/2022, the Bank has $387 thousand of PPP loans held on balance sheet ▪ Pre-Raise Concentrations: ▪ C&D: 75.1% ▪ CRE: 293.0% $782 $979 $1,112 $1,376 $1,378 $- $400 $800 $1,200 $1,600 2018Y 2019Y 2020Y 2021Y 2022Q1 Farm, 5.2% 1-4 Family 15.8% A
Slide 28: Colony Bank Loan Composition Since 2018
28 Colony Bank Loan Composition Since 2018 12/31/2018 12/31/2019 12/31/2020 12/31/2021 03/31/2022 Loan Composition Balance % of Total Balance % of Total Balance % of Total Balance % of Total Balance % of Total Construction 60,349 7.7% 96,159 9.8% 121,072 10.9% 165,532 12.0% 170,911 12.4% 1-4 Family
Slide 29: Asset Quality Detail
29 As of 03/31/2022: ▪ Strong asset quality with NPAs / Assets of 0.24% ▪ 2022YTD Net Chargeoffs / Avg. Loans of 0.01% ▪ Loan Loss Reserves to Gross Loans of 0.94% ▪ $246k of OREO Portfolio Management StatisticsQ1 2022 Nonaccrual Loans By Type Owner Occ. CRE, 7.2% 1-4 Family, 65.5% Farm, 8.7% Consum
Slide 30: Asset Quality & Reserve Coverage Ratios
30 Loan Loss Reserves / NPLs NCOs / Avg. Loans Loan Loss Reserves / Total Loans NPAs / Assets 1.51% 1.08% 1.24% 0.42% 0.24% 0.00% 0.50% 1.00% 1.50% 2.00% 2018Y 2019Y 2020Y 2021Y 2022Q1 0.06% 0.17% 0.12% -0.01% 0.01% -0.25% 0.00% 0.25% 0.50% 0.75% 2018Y 2019Y 2020Y 2021Y 2022Q1 0.93% 0.70% 1.09% 0.94
Slide 31: IV. Liabilities Highlights
31 IV. Liabilities Highlights
Slide 32: Deposit Growth & Composition
32 $2.4B Total Deposits Deposits ($000) NIB 592,969$ 24.9% IB Demand, Savings, & MMDA 1,453,797 60.9% Retail Time (<100k) 269,662 11.3% Jumbo Time (>100k) 69,341 2.9% Total 2,385,769$ 100.0% MRQ Cost of Deposits: 0.10% Loans / Deposits: 57.8% NIB 24.9% IB Demand, Savings, & MMDA 60.9% Retail Time (<
Slide 33: Deposit Market Share
33 1 3 4 2 Fitzgerald, GA 2,021.00 2021 2021 2,021.00 Deposits Market Rank Institution (ST) Branches ($000s) Share (%) ` 1 Colony Bankcorp Inc. (GA) 1 $305,288 54.32% 2 CBC Holding Company (GA) 2 $196,348 34.94% 3 Wells Fargo & Co. (CA) 1 $44,032 7.83% 4 Planters First Bancorp (GA) 1 $16,364 2.91% T
Slide 34: V. Capital Highlights
V. Capital Highlights Colony 34
Slide 35: Total Risk-Based Capital & Leverage Ratios – Bank Level
35 9.1% 8.3% 8.2% 8.3% 9.4% 10.3% 10.7% 10.5% 10.3% 10.0% 9.9% 10.1% 9.8% 9.1% 7.5% 8.2% 12.7% 12.0% 13.0% 14.4% 16.3% 16.6% 17.3% 16.9% 16.0% 16.3% 15.5% 15.6% 14.2% 14.6% 12.2% 13.2% 0.0% 3.0% 6.0% 9.0% 12.0% 15.0% 18.0% 21.0% 24.0% 27.0% 30.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0
Slide 36: Historical Regulatory Bank Capital Ratios
36 Tier 1 Risk-Based Ratio CET1 Ratio Total Risk-Based Ratio Leverage Ratio 9.77% 9.12% 7.53% 8.16% 0.00% 6.00% 12.00% 18.00% 24.00% 2019Y 2020Y 2021Y 2022Q1 13.54% 13.48% 11.40% 12.48% 0.00% 6.00% 12.00% 18.00% 24.00% 2019Y 2020Y 2021Y 2022Q1 13.54% 13.48% 11.41% 12.48% 0.00% 6.00% 12.00% 18.00% 24
Slide 37: VI. Income Statement Highlights
37 VI. Income Statement Highlights
Slide 38: Historical Profitability
38 0.28% 0.30% 0.48% 0.73% 0.80% 0.82% 0.74% 1.12% 0.87% 0.77% 0.91% 0.84% 2.97% 2.90% 4.64% 7.01% 7.82% 7.99% 7.77% 12.20% 9.48% 8.83% 12.09% 13.56% -25.00% -15.00% -5.00% 5.00% 15.00% 25.00% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 2011Y 2012Y 2013Y 2014Y 2015Y 2016Y 2017Y 2018Y 2019Y 2020Y 2021Y
Slide 39: Core Net Revenue Detail
39 $9,304 $14,082 $23,392 $36,377 $36,956 $- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 2018Y 2019Y 2020Y 2021Y 2022YTD Net Interest Income Noninterest Expense Noninterest Income Core Net Revenue Detail Source: S&P Capital IQ Pro Note: Bank level data; 2022YTD values as of March 31, 2022; val
Slide 40: Net Interest Income & Net Interest Margin
40 5.27% 5.63% 5.11% 5.07% 4.70% 2.24% 2.39% 2.02% 1.74% 1.71% 0.61% 0.87% 0.43% 0.16% 0.13% 0.66% 0.88% 0.46% 0.21% 0.14% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 2018Y 2019Y 2020Y 2021Y 2022YTD Loan Yield Securities Yield (FTE) Cost of Int. Bearing Dep. Cost of Funds $41,753 $49,326 $56,422 $67,5
Slide 41: Profitability & Expense Controls
41 66.5% 73.1% 72.0% 74.4% 74.2% 2.81% 3.32% 3.54% 3.77% 3.25% 0.00% 1.25% 2.50% 3.75% 5.00% 0.0% 25.0% 50.0% 75.0% 100.0% 2018Y 2019Y 2020Y 2021Y 2022YTD N o n in terest Exp en se / A vg. A ssets Ef fi ci en cy R at io Efficiency Ratio (FTE) Noninterest Expense / Avg. Assets 12.2% 9.5% 8.8% 12.1% 1
Slide 42: Net Interest Margin vs. Net Noninterest Expense
42 3.66% 3.50% 3.67% 3.50% 3.20% 3.09% 1.86% 1.63% 2.21% 1.90% 2.10% 1.89% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 2020Q4 2021Q1 2021Q2 2021Q3 2021Q4 2022Q1 Net Interest Margin Net Noninterest Expense /AA Net NIE / AA = (Noninterest Expense – Noninterest Income) / Avg. Assets Net Interest Margin vs. Net
Slide 43: Asset-Liability Management Profile
43 Net Interest Income Sensitivity Profile Interest Rate Scenario -400 -300 -200 -100 Base 100 200 300 400 Net Interest Income Change -4.6% -4.5% -4.5% -3.2% 0.0% 7.1% 14.4% 21.7% 28.6% Economic Value of Equity Sensitivity Profile Interest Rate Scenario -400 -300 -200 -100 Base 100 200 300 400 Econo
Slide 44: VII. Appendix
Vil. Appendix CoLony
Slide 45: Bank Level Financial Summary
45 12/31/2018 For the Years Ended: 3/31/2022 12/31/2018 12/31/2019 12/31/2020 12/31/2021 6/30/2021 9/30/2021 12/31/2021 3/31/2022 CAGR Balance Sheet Total Assets ($000) 1,249,790 1,511,400 1,760,944 2,687,322 1,751,548 2,508,968 2,687,322 2,682,488 26.5% Total Net Loans ($000) 781,526 978,890 1,111,
Slide 46: Consolidated Financial Summary
46 12/31/2018 For the Years Ended: 3/31/2022 12/31/2018 12/31/2019 12/31/2020 12/31/2021 6/30/2021 9/30/2021 12/31/2021 3/31/2022 CAGR Balance Sheet Total Assets ($000) 1,251,878 1,515,313 1,763,974 2,691,715 1,755,518 2,512,581 2,691,715 2,686,788 26.5% Total Net Loans ($000) 774,249 972,027 1,099,
Slide 47: Historical Regulatory Consolidated Capital Ratios
47 Tier 1 Risk-Based Ratio CET1 Ratio Total Risk-Based Ratio Leverage Ratio 8.92% 8.49% 7.25% 9.47% 0.00% 6.00% 12.00% 18.00% 24.00% 2019Y 2020Y 2021Y 2022Q1 10.33% 10.62% 9.87% 13.29% 0.00% 6.00% 12.00% 18.00% 24.00% 2019Y 2020Y 2021Y 2022Q1 12.52% 12.71% 11.28% 14.65% 0.00% 6.00% 12.00% 18.00% 24.
Slide 48: Consolidated Profitability Trends
48 0.21% 0.23% 0.41% 0.67% 0.73% 0.75% 0.65% 0.99% 0.72% 0.70% 0.89% 0.79% 2.67% 2.74% 4.96% 7.95% 8.23% 8.66% 8.51% 13.33% 8.73% 8.56% 10.60% 8.76% -25.00% -15.00% -5.00% 5.00% 15.00% 25.00% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 2011Y 2012Y 2013Y 2014Y 2015Y 2016Y 2017Y 2018Y 2019Y 2020Y 2021Y
Slide 49: Consolidated Asset Quality Trends
49 Loan Loss Reserves / NPLs NCOs / Avg. Loans Loan Loss Reserves / Total Loans NPAs / Assets 2.10% 1.51% 1.29% 0.49% 0.25% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 2018Y 2019Y 2020Y 2021Y 2022Q1 0.06% 0.17% 0.12% -0.01% 0.01% -0.25% 0.00% 0.25% 0.50% 0.75% 2018Y 2019Y 2020Y 2021Y 2022Q1 0.93% 0.70% 1.09
Slide 50: Consolidated Balance Sheet
50 At December 31, At March 31, (dollars shown in thousands) 2018 2019 2020 2021 2022 Assets Cash & Cash Equivalents 10,377$ 15,570$ 17,218$ 18,975$ 23,594$ Int. Bearing Deposits 49,779 88,522 166,288 178,257 132,823 Securities 353,066 347,332 380,814 938,164 960,301 Loans Held for Sale 2,978 14,364
Slide 51: Consolidated Income Statement
51 Quarter Ended Year-Ended December 31, March 31, (dollars shown in thousands) 2018 2019 2020 2021 2022 Total Interest Income 49,022$ 60,483$ 63,125$ 70,586$ 20,237$ Total Interest Expense 8,226 12,637 7,880 4,397 1,049 Net Interest Income 40,797 47,846 55,245 66,189 19,188 Provision for Loan Losse
Slide 52: Reconciliation of Non-GAAP Measures
52 Reconciliation of Non-GAAP Measures Source: S&P Capital IQ Pro; company-provided documents 2021 2022 (Dollars shown in thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter First Quarter Return on average tangible common equity reconciliation (Bank) Annualize
Colony Bankcorp — Debt Investor Presentation (May 2022) on 6ix