Colony Bankcorp, Inc. · NYSE:CBAN
Colony Bankcorp — Q3 2023 Earnings Presentation
32 slides from Colony Bankcorp's earnings presentation, Oct 26, 2023
Slide 1: Investor Presentation Third Quarter 2023
INVESTOR PRESENTATION THIRD QUARTER 2023 1
Slide 2: Cautionary Statements
CAUTIONARY STATEMENTS 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 co
Slide 3: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES 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 prese
Slide 4: Company Profile
COMPANY PROFILE • Founded in 1975 • Headquartered in Fitzgerald, Georgia • Georgia’s largest community bank, headquartered outside of Atlanta(1) • $3.1 billion in assets as of September 30, 2023 • 38 locations in Georgia and 1 in Alabama • Diversification of revenue streams • Track record of solid o
Slide 5: Executive Leadership Team
EXECUTIVE LEADERSHIP TEAM Years In Years With Name Position Banking Colony T. Heath Fountain Chief Executive Officer, Acting Chief Financial Officer 23 5 R. Dallis "D" Copeland, Jr. President 31 2 Edward "Lee" Bagwell EVP, Chief Risk Officer and General Counsel 20 20 Leonard H. "Lenny" Bateman EVP,
Slide 6: Objectives and Focus
OBJECTIVES AND FOCUS Short-Term Objectives Long-Term Objectives • Achieve performance objectives • 5 complementary lines of business in complementary lines of > $1 million in net income business • Reduce noninterest expense for • Manage expenses in an uncertain slower growth outlook economy • Return
Slide 7: Lines of Business Performance
LINES OF BUSINESS PERFORMANCE (Dollars in thousands) Segment Profit $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 $(1,000) 3Q2022 4Q2022 1Q2023 2Q2023 3Q2023 Consolidated QTD Net Income Banking SBSL Mortgage STARTUP LINES OF BUSINESS 3Q2022 4Q2022 1Q2023 2Q2023 3Q2023 Pre-tax loss Alabama LPO
Slide 8: Small Business Specialty Lending Group
SMALL BUSINESS SPECIALTY LENDING GROUP Production and Sales Volume Loan Portfolio Breakdown - $82.4 million (Dollars in millions) $34.5 $29.0 Construction $26.0 9% Commercial RE 42.9% $19.4 $19.6 $18.0 $14.8 $14.6 $11.5 $11.1 Commercial, financial & agriculture Residential RE 33.6% 14% 3Q2022 4Q2022
Slide 9: Mortgage Division
MORTGAGE DIVISION (Dollars in millions) Production and Sales Volume $106.4 $99.4 $92.6 $78.4 $68.5 $66.4 $62.0 $53.3 $38.1 $37.6 3Q2022 4Q2022 1Q2023 2Q2023 3Q2023 Production Sales • Strong mortgage production relative to the continued market rate increases • Remain focused on sale of mortgage loans
Slide 10: Innovation and Data Strategy
INNOVATION AND DATA STRATEGY • Improving the digital customer experience • Research and develop all potential technology-based opportunities • Increase customer wallet share through data gathering and analytics • Full implementation of Salesforce to influence a more complete customer relationship th
Slide 11: Quarterly Financial Highlights
QUARTERLY FINANCIAL HIGHLIGHTS 3Q2022 4Q2022 1Q2023 2Q2023 3Q2023 (dollars in millions, except per share data) Diluted earnings per share $ 0.30 $ 0.31 $ 0.29 $ 0.30 $ 0.33 Adjusted earnings per diluted share (1) 0.30 0.31 0.31 0.33 0.34 Dividends per share 0.1075 0.1075 0.11 0.11 0.11 Return on ave
Slide 12: Annual Financial Highlights
ANNUAL FINANCIAL HIGHLIGHTS 2018 2019 2020 2021 2022 (dollars in millions, except per share data) Diluted earnings per share $ 1.40 $ 1.12 $ 1.24 $ 1.66 $ 1.14 Dividends per share 0.20 0.30 0.40 0.41 0.43 Return on average assets 0.99 % 0.72 % 0.70 % 0.89 % 0.71 % Return on average total equity 13.3
Slide 13: Shareholder Focused Dividend Policy
SHAREHOLDER FOCUSED DIVIDEND POLICY Quarterly Dividend Payment $0.1075 $0.11 $0.10 $0.1025 $0.075 2019 2020 2021 2022 2023(¹) The current indicated annual rate is $0.44 per share, equating to a yield of 4.6%.(2) (1) The Board of Directors declared a dividend to be paid on its common stock on Novembe
Slide 14: Capital Ratios
CAPITAL RATIOS 15.8% 15.1% 14.8% 14.9% 15.1% 13.0% 12.5% 12.1% 12.2% 12.5% 11.8% 11.3% 11.1% 11.4% 11.0% 9.3% 9.2% 8.9% 8.9% 8.9% 09/30/2022 12/31/2022 03/31/2023 06/30/2023 09/30/2023 Tier One Leverage Ratio Tier One Ratio Total Risk-based Capital Ratio Common Equity Tier One Capital Ratio 14
Slide 15: Strength in Our Liquidity Position
STRENGTH IN OUR LIQUIDITY POSITION Significant liquidity sources Debt Funding* As of September 30, 2023 (dollars in millions) (dollars in millions) FRB Reserves $ 84.7 $185.0 $165.0 $155.0 Other Cash and Due from Banks 55.3 $125.0 Unencumbered Securities 443.0 $95.0 FHLB Borrowing Capacity 587.9 $15
Slide 16: Non Interest Income Mix
NON INTEREST INCOME MIX 100% 80% 60% 40% 35% 30% 30% 23% 19% 20% 0% 2018 2019 2020 2021 2022 Service Charges & Fees Mortgage Loans & Related Fees SBA & Related Fees Insurance Commissions Interchange Income Other Total Non Int. Income/Total Income *Wealth Management and Merchant services lines of bus
Slide 17: Non Interest Income Mix
NON INTEREST INCOME MIX 100% 75% 50% 32% 33% 28% 26% 27% 25% 0% 3Q2022 4Q2022 1Q2023 2Q2023 3Q2023 Service Charges & Fees Mortgage Loans & Related Fees SBA & Related Fees Insurance Division Merchant Services Wealth Management Interchange Income Other Total Non Int. Income/Total Income 17
Slide 18: Deposit Mix and Pricing
DEPOSIT MIX AND PRICING 1.00% 0.70% 0.51% 0.32% 0.19% 2018 2019 2020 2021 2022 Noninterest-bearing Interest-bearing Savings/money market Time Cost of interest-bearing deposits 18
Slide 19: Deposit Mix and Pricing
DEPOSIT MIX AND PRICING 2.00% 1.70% 1.06% 0.67% 0.32% 3Q2022 4Q2022 1Q2023 2Q2023 3Q2023 Noninterest-bearing Interest-bearing Savings/money market Time Cost of interest-bearing deposits 19
Slide 20: Deposit Balance Data
DEPOSIT BALANCE DATA (Dollars in thousands) AVERAGE DEPOSIT BALANCE PER ACCOUNT $39.9 $44.7 $47.4 $47.7 $36.6 $33.4 $33.5 $31.1 $32.2 $32.9 $20.1 $20.6 $18.9 $18.2 $17.4 $16.2 $16.5 $15.3 $15.3 $14.1 3Q2022 4Q2022 1Q2023 2Q2023 3Q2023 Noninterest-bearing Interest-bearing Savings/money market Time •
Slide 21: Deposits by Region
DEPOSITS BY REGION (Dollars in thousands) Geographic Location 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 Coastal Georgia $ 113,117 $ 112,694 $ 116,082 $ 133,536 $ 133,888 Middle Georgia 274,804 274,736 261,866 265,615 262,352 Atlanta and North 324,067 336,890 338,990 341,664 345,179 Georgia South Georg
Slide 22: Diversity of Business Deposit Base
DIVERSITY OF BUSINESS DEPOSIT BASE As of September 30, 2023 Construction 12.8% Public Administration 17.5% Educational Services All other, 3.0% 5.2% Transportation and Warehousing Real Estate and Rental and Leasing 1.8% 14.6% Wholesale Trade, 2.1% Accommodation and Food Services 2.0% Other Services(
Slide 23: Uninsured Deposits
UNINSURED DEPOSITS 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% Sept-22 Dec-22 Mar-23 Jun-23 Sept-23 Uninsured Deposits Estimate Adjusted Uninsured Deposits Estimate * *Adjusted uninsured deposit estimate excludes deposits collateralized by public funds or internal accounts. All deposits are hel
Slide 24: Loan Portfolio Breakdown
LOAN PORTFOLIO BREAKDOWN As of September 30, 2023 $1,865.0 million $1,553.9 million Farmland 3.8% Nonowner occupied real Construction 15.8% estate 33.3% Agriculture 1.2% Real Estate 83.3% Residential real Commercial estate 21.8% 12.4% Consumer and Other Multifamily real 3.1% estate 4.7% Owner occupi
Slide 25: Loan Portfolio
LOAN PORTFOLIO (Dollars in millions) Organic Loan Growth Weighted Average Loan to Values $1,737 $1,800 $1,839 $1,865 $1,587 74.1% 72.7% 73.1% 74.3% 70.6% 46.6% 57.5% 51.8% 51.6% 45.4% 3Q2022 4Q2022 1Q2023 2Q2023 3Q2023 09/30/2022 12/31/2022 03/31/2023 06/30/2023 09/30/2023 Residential Construction O
Slide 26: Office Portfolio Breakdown
OFFICE PORTFOLIO BREAKDOWN (dollars in millions) September 30, 2023 Offices by Number of Floors • Total loans secured by office buildings - $150.7 million • Owner-occupied (OO) - 56.1% • Non owner-occupied (NOO) - 43.9% One Story Offices • Non-Recourse loans - $1 million or $81.3 0.69% • Past dues 0
Slide 27: Investment Securities
INVESTMENT SECURITIES (Dollars in thousands) Portfolio Composition September 30, 2023 Description Book Value Percentage U.S. Agency MBS/CMO $ 353,157 38 % Municipal 272,993 29 % Private Label MBS 114,258 12 % U.S. Treasuries 98,187 10 % Corporates 54,694 6% SBA and Asset-Backed Securities 30,862 3%
Slide 28: Investment Securities
INVESTMENT SECURITIES (Dollars in thousands) Private Label MBS September 30, 2023 Rating: Number of Book Value Market Unrealized Loss Securities Value AAA 25 $ 86,267 $ 72,188 $ (14,079) NR 14 27,991 27,421 (570) TOTAL 39 $ 114,258 99,609 $ (14,649) Corporate Securities September 30, 2023 Type Book
Slide 29: Investment Securities
INVESTMENT SECURITIES Unrealized Losses on Securities (in millions) AFS/HTM 100% $64.3 $66.0 $57.8 $57.3 $57.8 $55.8 $54.6 $50.6 $49.3 75% $45.0 50% 25% —% 3Q 2022 4Q 2022 1Q 2023 2Q 2023 3Q 2023 Available for Sale HTM AFS HTM Other Portfolio Metrics As of: Average Effective Book Yield Life Duration
Slide 30: Investment Considerations
INVESTMENT CONSIDERATIONS • Premier Georgia community bank with strong core deposit franchise • Diversified sources of revenue • Improving earnings outlook as new business lines mature • Upside to tangible book value as unrealized losses improve • Deep leadership bench with a proven track record • A
Slide 31: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES (dollars in thousands, except per share data) 2023 2022 Third Quarter Second Quarter First Quarter Fourth Quarter Third Quarter Operating noninterest income reconciliation Noninterest income (GAAP) $ 9,718 $ 8,952 $ 7,659 $ 7,688 $ 8,145 Gain on sale of bank premi
Slide 32: Colony Bankcorp, Inc.
8 COLONY BANKCORP, INC. Right here with you. NASDAQ: CBAN