Colony Bankcorp, Inc. · NYSE:CBAN
Colony Bankcorp — Merger or Acquisition (December 2018)
23 slides from Colony Bankcorp's merger presentation, Dec 18, 2018
Slide 1: Colony Bankcorp, Inc. Investor Presentation
COLONY BANKCROP, INC. Investor Presenttation D e c e m b e r 1 8 , 2 0 1 8
Slide 2: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures This confidential presentation includes certain financial measures that are not measures recognized under U.S. generally accepted accounting principles (“GAAP”) and therefore are considered non-GAAP financial measures. Colony Bankcorp, Inc.’s (“Colony” or the “Comp
Slide 3: Cautionary Statements
Cautionary Statements Certain statements contained in this presentation that are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act”), notwithstanding that such statements are not specifically i
Slide 4: Additional Information
Additional Information Participants in the Transaction The Company, LBC and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of LBC in connection with the proposed transaction. Certain information regar
Slide 5: Colony Bankcorp, Inc. Franchise Footprint Overview
Colony Bankcorp, Inc. Franchise Footprint Overview Colony Bankcorp, Inc. (27 branches)ï,§ Colony Bankcorp, Inc. (“CBAN” or the “Company”) was founded in 1975ï,§ Headquartered in Fitzgerald, Georgiaï,§ $1.2 billion in assets at September 30, 2018ï,§ New leadership team focused on growth Atlanta ï,§ 2
Slide 6: Key Executive Officers
Key Executive Officers Name / Position Age Background T. Heath Fountain 43 Mr. Thomas Heath Fountain, CPA, has been President and Chief Executive Officer of the President & Chief Executive Company since July 2018. He previously served as Chief Executive Officer of Planters Officer First Bank since J
Slide 7: Key Executive Officers
Key Executive Officers Name / Position Age Background Terry L. Hester 63 Mr. Terry L. Hester has been Executive Vice President and Chief Financial Officer of the Executive Vice President & Chief Company since June 1994 and Secretary of the Company since May 2003. He also served Financial Officer as
Slide 8: Key Executive Officers
Key Executive Officers Name / Position Age Background Kimberly Dockery 36 Ms. Kimberly C. Dockery serves as Chief Administrative Officer of the Company. Prior to Executive Vice President & Chief joining the Company, Ms. Dockery served in a similar role as Chief Administrative Administrative Officer
Slide 9: Recently Announced Q3 Highlights
Recently Announced Q3 Highlights ï,§ 3.57% NIM representing a 7bps increase from the same period in 2017 Earnings Trends ï,§ Diluted EPS of $0.32 vs. $0.30 in Q3’2017 ï,§ ~7.0% annualized loan growth for the quarter Loan Growthï,§ Pipelines are building with the addition of experienced lending execu
Slide 10: Delivering Shareholder Value
Delivering Shareholder Value ROAA (1)(2) ROATCE (1)(3) 1.00% 13.40% 0.23% 1.79% 2012Y 2013Y 2014Y 2015Y 2016Y 2017Y 2018 YTD 2012Y 2013Y 2014Y 2015Y 2016Y 2017Y 2018 YTD Tangible Book Value Per Share (3) Diluted Earnings Per Share (1) $10.54 $1.39 $8.02 $0.14 2012Y 2013Y 2014Y 2015Y 2016Y 2017Y 2018
Slide 11: Strong Price Performance
Strong Price Performance One Year Stock Price Performance (%) 40.0 30.0 20.0 10.0 12.6 0.0 -4.9 (10.0) -15.2 (20.0) --17 17..5 0 CBAN S&P 500 Nasdaq Bank SNL Southeast U.S. Bank SNL U.S. Bank $1B-$5B Three Year Stock Price Performance (%) 100.0 75.0 71.3 50.0 29.8 25.0 26 24..6 7 0.0 16.5 (25.0) (50
Slide 12: Acquisition Target: LBC Bancshares, Inc.
Acquisition Target: LBC Bancshares, Inc. Overview Franchise Footprint ï,§ Holding company for Calumet Bank Colony Bankcorp, Inc. o Bank founded in 2008 LBC Bancshares, Inc. o LBC Bancshares, Inc. founded in 2014 LBC Atlanta LPO Atlanta ï,§ Headquartered in LaGrange, GA with two branches and one loan
Slide 13: Transaction Rationale
Transaction Rationale ï,§ Natural expansion into logical, contiguous markets in western Georgia o Provides entry into the LaGrange, GA market and strengthens existing footprint in Columbus, GA Strategic Rationale o Creates a more favorable demographic profile for CBAN ï,§ Pro forma Company ranks 3rd
Slide 14: Summary Transaction Terms
Summary Transaction Terms 55% stock consideration per share determined by the Merger Consideration exchange ratio of 1.3239 / 45% cash consideration per share of $23.50 Treatment of Options/Warrants Cashed out at excess of $23.50 over exercise price Indicative Merger Value (1) $22.30 per common shar
Slide 15: Transaction Assumptions
Transaction Assumptions ï,§ $1.9 million pre-tax savings (~36.5% of noninterest expense) Estimated Cost Savings ï,§ Assumes partial realization in 2019 and 100% per year thereafter ï,§ $4.3 million pre-tax expenses Transaction Expensesï,§ 12.5% of transaction value (1)ï,§ $2.7 million pre-tax mark o
Slide 16: Pro Forma Demographics
Pro Forma Demographics Projected Median Projected Deposit Percent of Total Population Population HH HH Income Deposits Market National Population Change Change Income Change Market Branch in Market Share Franchise 2019 2010-2019 2019-2024 2019 2019-2024 MSA Rank Count ($000) (%) (%) (Actual) (%) (%)
Slide 17: Pro Forma Deposit Market Share
Pro Forma Deposit Market Share Deposit Market Share by MSA Deposit Market Share by MSA Colum bus, GA-AL MSA LaGrange, GA MSA Market Market Market Market Branch Deposits Share Branch Deposits Share Rk. Institution (State) Count ($000) (%) Rk. Institution (State) Count ($000) (%) 1 Synovus Financial C
Slide 18: Pro Forma Loan Portfolio
Pro Forma Loan Portfolio (1) Colony Bankcorp, Inc. (CBAN) Calumet Bank Pro Forma Company 8.5% 10.9% 14.0% 9.3% 16.3% 15.5% 13.5% 6.1% 7.1% 24.3% 24.1% 22.7% 16.4% 16.5% 16.9% 4.2% 4.0% 2.8% 24.3% 19.2% 23.6% Loans ($000s) Loans ($000s) Loans ($000s) Construction & Land $ 68,233 8.5% Construction & L
Slide 19: Pro Forma Deposit Portfolio
Pro Forma Deposit Portfolio Colony Bankcorp, Inc. (CBAN) (1) Calumet Bank Pro Forma Company 48.7% 15.7% 9.2% 59.5% 16.1% 16.5% 18.1% 53.6% 9.1% 14.2% 15.2% 24.1% Deposits ($000s) Deposits ($000s) Deposits ($000s) Transaction Accounts $ 93,687 9.2% Transaction Accounts $ 99,582 48.7% Transaction Acco
Slide 20: Attractive Georgia-Based Banks Key Takeaways
Attractive Georgia-Based Banks Key Takeaways Headquarters Fitzgerald, GA LaGrange, GAï,§ Provides entry into LaGrange, GA market Franchise Year Established 1983 2008ï,§ Low risk in-market Number of Banking Offices 27 2 Columbus expansion ï,§ Access to Atlanta Assets $1,198,196 $227,881ï,§ Increases
Slide 21: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures As of Decem ber 31, As of 2012 2013 2014 2015 2016 2017 9/30/2018 Total Stockholders’ Equity $ 95,7 59 $ 89,954 $ 99,027 $ 95,457 $ 93,388 $ 90,323 $ 88,988 Preferred Stock (27 ,827 ) (28,000) (28,000) (18,021) (9,360) —Common Equity 67 ,932 61,954 7 1,027 7 7 ,43
Slide 22: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures For the fiscal year ended Decem ber 31, 3 Mos. Ended 9 Mos. Ended 2012 2013 2014 2015 2016 2017 9/30/2018 9/30/2018 Net Income Av ailable to Common $ 1,206 $ 3,120 $ 4,843 $ 5,998 $ 7 ,180 $ 7 ,540 $ 2,695 $ 8,952 Amortization Of Intangibles 36 36 36 36 36 36 9 27
Slide 23: Colony Bankcorp, Inc. Nasdaq: CBAN
COLONY BANKCORP,INC. N a s d a q : C B A N
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