Colony Bankcorp, Inc. · NYSE:CBAN
Colony Bankcorp — Q3 2021 Earnings Presentation
28 slides from Colony Bankcorp's earnings presentation, Oct 21, 2021
Slide 1: Investor Presentation Third Quarter 2021
1 INVESTOR PRESENTATION THIRD QUARTER - 2021
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 Albany Tifton Soperton Eastman Rochelle Chickamauga Douglas Fitzgerald Broxton Cordele AshburnLeesburg Sylv
Slide 5: Leadership Team
5 Name Position Years In Banking Years With Colony T. Heath Fountain President and Chief Executive Officer 21 3 Brian D. Schmitt Executive Vice Chairman 38 * Edward "Lee" Bagwell EVP, Chief Risk Officer and General Counsel 18 18 Leonard H. “Lenny” Bateman EVP, Chief Credit Officer 25 2 Andy Borrmann
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 in August 2021; 98 days from announcement to close ◦ Acquisition provides entry into attractive Northern Georgia markets and increased access to
Slide 8: Proven Track Record of Franchise Enhancement
8 2020 2021 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 Branch from Planters Fi
Slide 9: SouthCrest Financial Opportunity
9 SOUTHCREST FINANCIAL OPPORTUNITY • Creates Georgia’s largest community bank and sixth largest bank in the State1 • Establishes a metro Atlanta corporate banking footprint with 8 lenders • Enhanced scale, growth, profitability and performance • Significant revenue growth opportunities identified in
Slide 10: Driving High Performance: Increase Operating Efficiency
11 DRIVING HIGH PERFORMANCE ◦ Achieve strong organic growth each year ◦ Seize on expansion opportunities ◦ Increase operating efficiency • Realignment plan with focus on operating expense savings of $1 million annually • Optimize our balance sheet for improved earnings • Improve processes for effici
Slide 11: Driving High Performance: Increase Non-Interest Income
12 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 • Acquisition of PFB
Slide 12: Colony Insurance
13 COLONY INSURANCE • Acquired The Barnes Agency, an Allstate appointed consumer property and casualty insurance agency in Macon, GA on August 1, 2021 • Formed a new subsidiary, Colony Insurance, which will offer a suite of consumer insurance solutions • Named Jason Barnes President of Colony Insura
Slide 13: Mortgage Division
14 ◦ 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 acquisition ◦ Increased
Slide 14: Small Business Specialty Lending Group
15 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 officer
Slide 15: Driving High Performance: Culture of High Performance
16 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 16: Value Proposition to Our Customers
17 ◦ 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 17: Annual Financial Highlights
18 2016 2017 2018 2019 2020 Diluted earnings per share $ 0.84 $ 0.87 $ 1.4 $ 1.12 $ 1.24 Dividends per share $ — $ 0.1 $ 0.2 $ 0.3 $ 0.4 Return on average assets 0.62 % 0.63 % 0.99 % 0.72 % 0.7 % Return on average total equity 7.17 % 8.28 % 13.32 % 8.72 % 8.56 % Net interest margin 3.51 % 3.46 % 3.5
Slide 18: Financial Highlights
19 3Q2020 4Q2020 1Q2021 2Q2021 3Q2021 Diluted earnings per share $ 0.33 $ 0.52 $ 0.52 $ 0.42 $ 0.45 Adjusted earnings per diluted share (1) $ 0.39 $ 0.44 $ 0.53 $ 0.49 $ 0.57 Dividends per share $ 0.10 $ 0.10 $ 0.1025 $ 0.1025 $ 0.1025 Return on average assets 0.70% 1.08% 1.12% 0.91% 1.00% Return on
Slide 19: Annual Balance Sheet Financial Highlights
20 2016 2017 2018 2019 2020 Total assets $ 1,210.4 $ 1,232.8 $ 1,251.9 $ 1,515.3 $ 1,763.9 Loans 754.3 765.3 782.4 971.2 1,062.8 Unearned income (0.4) (0.5) (0.5) (0.6) (2.4) Unamortized discount on acquired loans — — (0.3) (1.7) (0.9) Allowance for loan losses (8.9) (7.5) (7.3) (6.9) (12.1) Total l
Slide 20: Balance Sheet Financial Highlights
21 3Q2020 4Q2020 1Q2021 2Q2021 3Q2021 Total assets $1,759.4 $1,763.9 $1,799.0 $1,763.9 $2,511.7 Loans 1,106.6 1,062.8 1,064.2 1,025.7 1,311.9 Unearned income (3.8) (2.4) (3.4) (2.5) (0.9) Unamortized discount on acquired loans (1.2) (0.9) (0.7) (0.6) (1.1) Allowance for loan losses (11.0) (12.1) (12
Slide 21: Shareholder Focused Dividend Policy
22 The current indicated annual rate is $0.41 per share, equating to a yield of 2.2%.(2) SHAREHOLDER FOCUSED DIVIDEND POLICY (1) The Board of Directors declared a dividend to be paid on its common stock on November 17, 2021, to shareholders of record as of the close of business on November 3, 2021.
Slide 22: Capital Ratios
23 15.9% 15.0% 10.2% 2018 13.2% 12.2% —— 10.3% 9.0% 2019 ll Tier One Leverage Ratio lf Total Risk-based Capital Ratio 9.6% 15.4% 15.3% 14.3% 14.3% 12.2% 10.3% 10.2% 2020 9/30/2020 Il Tier One Ratio Common Equity Tier One Capital Ratio 12.9% 12.1% 10.6% 8.5% 9/30/2021 eS COLONY BANKCORE, INC
Slide 23: Solid Core Deposit Franchise
24 SOLID CORE DEPOSIT FRANCHISE As of September 30, 2021 Total Deposits: $2.2 billion MRQ Cost of Deposits: 0.19%
Slide 24: Loan Portfolio Breakdown
25 LOAN PORTFOLIO BREAKDOWN As of September 30, 2021
Slide 25: Loan Portfolio
26 LOAN PORTFOLIO(1) (Dollars in millions) Organic Loan Growth (Excluding PPP Loans) (1) Represents gross loan balances. Excludes PPP loans totaling $17.0 million $58.8 million, $102.6 million, $101.1 million $133.8 million at 9/30/2021 6/30/2021, 3/31/2021, 12/31/2020 ,and 9/30/2020 , respectively
Slide 26: Investment Considerations
27 • 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 27: Reconciliation of Non-GAAP Measures
28 RECONCILIATION OF NON-GAAP MEASURES (Dollars in thousands, except per share data) 2021 2020 (dollars in thousands, except per share data) Third Quarter Second Quarter First Quarter Fourth Quarter Third Quarter Operating net income reconciliation Net income (GAAP) $ 5,583 $ 3,997 $ 4,919 $ 4,900 $
Slide 28: Colony Bankcorp, Inc.
it COLONY BANKCORP, INC. Right here with Yc, NASDAQ: CBAN