Colony Bankcorp, Inc. · NYSE:CBAN
Colony Bankcorp — Q2 2022 Earnings Presentation
29 slides from Colony Bankcorp's earnings presentation, Jul 21, 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 Soperton Rochelle Chickamauga DouglasSylvester Rockmart Athens Moultrie Valdosta Quitman Atlanta Cedartown
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 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
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 depo
Slide 7: Driving High Performance: 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 market
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 B
Slide 9: SouthCrest Acquisition
9 SOUTHCREST ACQUISITION ◦ Creates Georgia’s largest community bank headquartered outside of Atlanta and fourth largest bank in the State1 ◦ Establishes a metro Atlanta corporate banking footprint with 6 lenders ◦ Enhanced scale, growth, profitability and performance ◦ Significant revenue growth opp
Slide 10: SouthCrest Financial Opportunity: Pro Forma Footprint
10 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 es
Slide 11: Driving High Performance: Operating Efficiency
11 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 • Closing two branches (Soperton and Luthersville
Slide 12: Driving High Performance: 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 • Started a Small Bu
Slide 13: 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 14: Mortgage Division
14 • 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 15: Small Business Specialty Lending Group
15 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 16: Driving High Performance: Culture
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 fee
Slide 17: 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 18: Annual Financial Highlights
18 2017 2018 2019 2020 2021 Diluted earnings per share $ 0.87 $ 1.40 $ 1.12 $ 1.24 $ 1.66 Dividends per share $ 0.10 $ 0.20 $ 0.30 $ 0.40 $ 0.41 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 19: Financial Highlights
19 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 20: Annual Balance Sheet Financial Highlights
20 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 21: Balance Sheet Financial Highlights
21 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 22: Shareholder Focused Dividend Policy
22 The current indicated annual rate is $0.43 per share, equating to a yield of 2.9%.(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 23: Capital Ratios
23 CAPITAL RATIOS 9.0% 9.6% 7.5% 8.5% 10.7% 12.5% 14.3% 11.9% 13.9% 15.8% 13.2% 15.4% 12.7% 14.6% 16.6% 10.3% 10.3% 10.5% 13.9% 12.4% Tier One Leverage Ratio Tier One Ratio Total Risk-based Capital Ratio Common Equity Tier One Capital Ratio 2019 2020 2021 06/30/21 6/30/2022
Slide 24: Solid Core Deposit Franchise
24 SOLID CORE DEPOSIT FRANCHISE As of June 30, 2022 Total Deposits: $2.3 billion MRQ Cost of Deposits: 0.14% Interest Bearing Demand, 25% Noninterest bearing demand, 37% Time deposits, 14% Savings and Money- markets, 24%
Slide 25: Loan Portfolio Breakdown
25 LOAN PORTFOLIO BREAKDOWN As of June 30, 2022 $1,453.0 million Real Estate 86% Consumer and Other 1.3% Commercial 11% Agriculture 1.8% $1,249.4 million Multifamily real estate 5% Residential real estate 17% Construction 15% Farmland 6% Nonowner occupied real estate 37% Owner occupied real estate 2
Slide 26: Loan Portfolio
26 LOAN PORTFOLIO (Dollars in millions) Organic Loan Growth $1,023 $1,310 $1,338 $1,354 $1,453 Organic PPP Loans Purchased Loans 06/30/21 9/30/2021 12/31/2021 03/31/2022 06/30/2022 $— $500 $1,000 $1,500 $2,000
Slide 27: 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 28: Reconciliation of Non-GAAP Measures
28 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 29: Colony Bankcorp, Inc.
st COLONY BANKCORP, INC. Right here with Hou. NASDAQ: CBAN