Colony Bankcorp, Inc. · NYSE:CBAN
Colony Bankcorp — Q2 2022 Earnings Presentation
27 slides from Colony Bankcorp's earnings presentation, Sep 16, 2022
Slide 1: Investor Presentation Second Quarter 2022
1 INVESTOR PRESENTATION SECOND QUARTER - 2022
Slide 2: Forward-looking statements
2 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 contained in Colony Ba
Slide 3: Non-GAAP financial measures
3 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 4: Company Profile and Franchise Footprint
4 Colony Banking Branches Colony LPOs Acquired with SouthCrest Financial Group, Inc. merger closed 8/1/2021 Franchise Footprint COMPANY PROFILE Statesboro Savannah Conyers Augusta Fayetteville Rochelle Chickamauga DouglasSylvester Rockmart Athens Moultrie Valdosta Quitman Atlanta Cedartown Canton Cu
Slide 5: Leadership Team
5 Name Position Years In Banking Years With Colony T. Heath Fountain Chief Executive Officer 21 4 Brian D. Schmitt Executive Vice Chairman 39 1 Edward "Lee" Bagwell EVP, Chief Risk Officer and General Counsel 18 18 Leonard H. “Lenny” Bateman EVP, Chief Credit Officer 25 2 Andy Borrmann EVP, Chief Fi
Slide 6: Driving High Performance: Strong Organic Growth
6 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 dep
Slide 7: Driving High Performance: Seize on Expansion Opportunities
7 DRIVING HIGH PERFORMANCE • Achieve strong organic growth each year • Seize on expansion opportunities • Completed the acquisition of SouthCrest Financial Group, Inc. ("SouthCrest) in August 2021; 98 days from announcement to close ▪ Acquisition provides entry into attractive Northern Georgia marke
Slide 8: Proven Track Record of Franchise Enhancement
8 2020 2021 August 2021 Acquired SouthCrest Financial Group, Inc. ($729.71M in assets)February 2020 Acquired East Georgia Homebuilder loan portfolio ($47M in loans) May 2019 Acquired LBC Bancshares ($207M in assets) Acquired PFB Mortgage (>$100M in loan production in 2019) October 2018 Acquired 1 Br
Slide 9: Driving High Performance: Increase Operating Efficiency
9 DRIVING HIGH PERFORMANCE • Achieve strong organic growth each year • Seize on expansion opportunities • Increase operating efficiency • Cost efficiency initiative with anticipated savings of $3.0 million per year starting in late third quarter 2022 • Closed two branches (Soperton and Luthersville)
Slide 10: Increase Operating Efficiency - Technology
10 DRIVING HIGH PERFORMANCE • Increase operating efficiency - Technology • Recently hired Christian Ruppe as Chief Innovation Officer • Will research and develop all potential technology-based opportunities • Increase customer wallet share through data gathering and analytics • Full implementation o
Slide 11: Driving High Performance: Increase Non-Interest Income
11 DRIVING HIGH PERFORMANCE • Increase non-interest income • Acquisition of The Barnes Agency completed on August 1, 2021 - forming Colony Insurance to offer consumer insurance solutions • Growing our deposit account customer base increases service charge and interchange revenue • Started a Small Bu
Slide 12: Mortgage Division
12 • Increased volume capacity in Mortgage division production: • $405.0 million in production in 2021 • $97.2 million production in first quarter 2022 • $113.7 million production in second quarter 2022 • Added purchase focused, experienced origination teams in Athens, Augusta, LaGrange, and Savanna
Slide 13: Small Business Specialty Lending Group
13 SMALL BUSINESS SPECIALTY LENDING GROUP • Originated loans under SBA Paycheck Protection Program (PPP) related to the Economic Aid Act, resulting in 950 loans totaling over $52.4 million in 2021 ◦ Originated 1,672 totaling over $137.8 million in 2020 ◦ $128,000 remaining at the end of 2Q2022 • Clo
Slide 14: Driving High Performance: Culture of High Performance
14 DRIVING HIGH PERFORMANCE • Increase non-interest income • Create a culture of high performance • Instill behaviors and habits that lead to great results • Coaching team members to improve performance • Increase incentive and performance based compensation • Pursue open communication and honest fe
Slide 15: Value Proposition to Our Customers
15 • 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 • Strive to be trusted advisors and giv
Slide 16: Annual Financial Highlights
16 2017 2018 2019 2020 2021 Diluted earnings per share $ 0.8 7 $ 1.4 $ 1.1 2 $ 1.2 4 $ 1.6 6 Dividends per share $ 0.1 $ 0.2 $ 0.3 $ 0.4 $ 0.4 1 Return on average assets 0.63 % 0.99 % 0.72 % 0.7 % 0.89 % Return on average total equity 8.28 % 13.32 % 8.72 % 8.56 % 10.6 % Net interest margin 3.46 % 3.
Slide 17: Financial Highlights
17 2Q2021 3Q2021 4Q2021 1Q2022 2Q2022 Diluted earnings per share $ 0.42 $ 0.45 $ 0.30 $ 0.34 $ 0.19 Adjusted earnings per diluted share (1) 0.49 0.57 0.40 0.37 0.30 Dividends per share 0.1025 0.1025 0.1025 0.1075 0.1075 Return on average assets 0.91% 1.00% 0.64% 0.81 % 0.51 % Return on average total
Slide 18: Annual Balance Sheet Financial Highlights
18 2017 2018 2019 2020 2021 Total assets $1,232.8 $1,251.9 $1,515.3 $1,763.9 $2,691.7 Loans 765.3 782.4 971.2 1,062.8 1,339.4 Unearned income (0.5) (0.5) (0.6) (2.4) (0.4) Unamortized discount on acquired loans — (0.3) (1.7) (0.9) (1.0) Allowance for loan losses (7.5) (7.3) (6.9) (12.1) (12.9) Total
Slide 19: Balance Sheet Financial Highlights
19 2Q2021 3Q2021 4Q2021 1Q2022 2Q2022 Total assets $1,755.5 $2,512.6 $2,691.7 $2,686.8 $2,728.4 Loans 1,025.7 1,311.9 1,339.4 1,354.2 1,452.8 (Unearned income)/ Deferred Costs (2.5) (0.9) (0.4) 0.6 0.6 Unamortized discount on acquired loans (0.6) (1.1) (1.0) (0.8) (0.6) Allowance for loan losses (12
Slide 20: Shareholder Focused Dividend Policy
20 The current indicated annual rate is $0.43 per share, equating to a yield of 3.1%.(2) SHAREHOLDER FOCUSED DIVIDEND POLICY (1) The Board of Directors declared a dividend to be paid on its common stock on August 20, 2022, to shareholders of record as of the close of business on August 6, 2022. (2)
Slide 21: Capital Ratios
CAPITAL RATIOS 16.6% 15.8% 15.4% Se 14.3% 14.6% 13.9% jum 13.9% 13.2% ; 12.5% 12.7% 12.4% 11.9% 10.7% 10.3% 10.3% 10.5% 9.6% 9.0% ' 8.5% 7.5% 2019 2020 2021 06/30/21 6/30/2022 HI Tier One Leverage Ratio Tier One Ratio [ll Total Risk-based Capital Ratio Common Equity Tier One Capital Ratio 21
Slide 22: Solid Core Deposit Franchise
22 SOLID CORE DEPOSIT FRANCHISE As of June 30, 2022 Total Deposits: $2.3 billion MRQ Cost of Deposits: 0.14%
Slide 23: Loan Portfolio Breakdown
23 LOAN PORTFOLIO BREAKDOWN As of June 30, 2022
Slide 24: Loan Portfolio - Organic Loan Growth
24 LOAN PORTFOLIO (Dollars in millions) Organic Loan Growth
Slide 25: Investment Considerations
25 • Premier Georgia community bank franchise • Well positioned for organic growth • Improving earnings outlook • Significant M&A opportunities and market dislocation • Seasoned leadership with a proven track record INVESTMENT CONSIDERATIONS
Slide 26: Reconciliation of Non-GAAP Measures
26 RECONCILIATION OF NON-GAAP MEASURES (Dollars in thousands, except per share data) 2022 2021 Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter Operating net income reconciliation Net income (GAAP) 3,416 5,324 4,160 5,583 3,997 FHLB mark from called borrowings 751 — — — — Sev
Slide 27: Colony Bankcorp, Inc.
st COLONY BANKCORP, INC. Right here with Hou. NASDAQ: CBAN