Colony Bankcorp, Inc. · NYSE:CBAN
Colony Bankcorp — Janney Community Bank Conference 2021
27 slides from Colony Bankcorp's conference presentation, Sep 20, 2021
Slide 1: Investor Presentation – Janney Community Bank Conference – September 19-20, 2021
INVESTOR PRESENTATION – JANNEY COMMUNITY BANK CONFERENCE – SEPTEMBER 19-20, 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 the C
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 fol
Slide 4: Company Profile and Franchise Footprint
‹#› 4 Note: Dollar values in thousands unless otherwise noted; Financial data as of December 31, 2020 a. Community bank defined as having less than $10.0 billion in total assets as of December 31, 2020 b. Nonperforming Assets defined as the sum of nonaccrual loans, restructured loans, and other real
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 Borr
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
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
Slide 8: Proven Track Record of Franchise Enhancement
‹#› 8 2020 2021 Note: Dollar values in thousands; Financial data as of December 31, 2020 a. 5-Year CAGR based on FY 2015 actuals to FY 2021 pro forma combined total assets b. Pro forma FY 2021 total assets based on combined December 31, 2020 actuals; Excludes purchase accounting adjustments Source:
Slide 9: SouthCrest Financial Opportunity
‹#› 9 SOUTHCREST FINANCIAL OPPORTUNITY ◦ Creates Georgia’s largest community bank and fourth 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 identifi
Slide 10: Driving High Performance: Increase Operating Efficiency
‹#› 10 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 eff
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 • Acquisition of
Slide 12: Colony Insurance
‹#› 12 COLONY INSURANCE ◦ Acquired The Barnes Agency, an Allstate appointed consumer property and casualty insurance agency in Macon, GA on 8/1/2021 ◦ Formed a new subsidiary, Colony Insurance, which will offer a suite of consumer insurance solutions ◦ Named Jason Barnes President of Colony Insuranc
Slide 13: Mortgage Division
‹#› 13 • 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 • Increa
Slide 14: Small Business Specialty Lending Group
‹#› 14 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 • Led by two veteran bankers, Darren Davis, President, and Stephe
Slide 15: Driving High Performance: Culture of High Performance
‹#› 15 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
Slide 16: Value Proposition to Our Customers
‹#› 16 • 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
Slide 17: Annual Financial Highlights
‹#› 17 2016 2017 2018 2019 2020 Diluted earnings per share $ 0.84 $ 0.87 $ 1.40 $ 1.12 $ 1.24 Dividends per share $ - $ 0.10 $ 0.20 $ 0.30 $ 0.40 Return on average assets 0.62 % 0.63 % 0.99 % 0.72 % 0.70 % Return on average total equity 7.17 % 8.28 % 13.32 % 8.72 % 8.56 % Net interest margin 3.51 %
Slide 18: Financial Highlights
‹#› 18 2Q2020 3Q2020 4Q2020 1Q2021 2Q2021 Diluted earnings per share $ 0.23 $ 0.33 $ 0.52 $ 0.52 $ 0.42 Adjusted earnings per diluted share (1) $ 0.25 $ 0.39 $ 0.44 $ 0.53 $ 0.49 Dividends per share $ 0.1 $ 0.1 $ 0.1 $ 0.1025 $ 0.1025 Return on average assets 0.52 % 0.7 % 1.08 % 1.12 % 0.91 % Return
Slide 19: Annual Balance Sheet Financial Highlights
‹#› 19 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 $ 961.7 PPP Loans $ - $ - $ - $ - $ 101.1 Unearned income $ (0.4) $ (0.5) $ (0.5) $ (0.6) $ (2.4) Unamortized discount on acquired loans $ - $ - $ (0.3) $ (1.7) $
Slide 20: Balance Sheet Financial Highlights
‹#› 20 2Q2020 3Q2020 4Q2020 1Q2021 2Q2021 Total assets $ 1,777.6 $ 1,232. 8 $ 1,251. 9 $ 1,515.3 $ 1,763. 9 Loans* $ 981.8 $ 974.8 $ 961.7 $ 961.6 $ 967.7 PPP Loans $ 137.8 $ 137.8 $ 101.1 $ 102.6 $ 58 Unearned income $ (4.4) $ (3.8) $ (2.4) $ (3.4) $ (2.5) Unamortized discount on acquired loans $ (
Slide 21: Shareholder Focused Dividend Policy
‹#› 21 The current indicated annual rate is $0.41 per share, equating to a yield of 2.3%.(2) SHAREHOLDER FOCUSED DIVIDEND POLICY (1) The Company paid a dividend on its common stock on August 17, 2021, to shareholders of record as of the close of business on August 3, 2021. (2) Yield is based on clos
Slide 22: Capital Ratios
22 15.9% 15.0% hed 14.3% 14.6% 13.2% 13.3% 13.4% 12.2% 2.5% 12.4% 11.3% 10.2% 10.3% 10.3% 10.3% i 9.0% fas 9.2% | | | | 2018 2019 2020 6/30/2020 6/30/2021 ll Tier One Leverage Ratio I Tier One Ratio i Total Risk-based Capital Ratio Common Equity Tier One Capital Ratio es COLONY
Slide 23: Solid Core Deposit Franchise
‹#› 23 SOLID CORE DEPOSIT FRANCHISE As of June 30, 2021 Total Deposits: $1.54 billion MRQ Cost of Deposits: 0.22%
Slide 24: Loan Portfolio Breakdown
‹#› 24 LOAN PORTFOLIO BREAKDOWN As of June 30, 2021
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) 2021 2020 (dollars in thousands, except per share data) Second Quarter First Quarter Fourth Quarter Third Quarter Second Quarter Operating net income reconciliation Net income (GAAP) $ 3,997 $ 4,919 $ 4,900 $ 3,
Slide 27: Colony Bankcorp, Inc. – Right here with you
eS COLONY BANKCORP, INC. Right here with you. NASDAQ: CBAN
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