Colony Bankcorp, Inc. · NYSE:CBAN
Colony Bankcorp — Q4 2019 Earnings Presentation
26 slides from Colony Bankcorp's earnings presentation, Jan 21, 2020
Slide 1: Investor Presentation 4th Quarter - 2019
0 Investor Presentation 4th Quarter - 2019
Slide 2: Forward-looking statements
1 This presentation contains "forward - looking statements" as defined in the Private Securities Litigation Reform Act of 1995. In g eneral, forward - looking statements usually use words such as "may," "believe," "expect," "anticipate," "intend," "will," "should," "plan ," "estimate," "predict," "c
Slide 3: Non-GAAP Financial Measures
2 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 measures to GAAP financial measures. The non - GAAP financial measures used in this presentation include the
Slide 4: Company Profile
3 ▪ Founded in 1975 ▪ Headquartered in Fitzgerald, Georgia ▪ $1.5 billion in assets at December 31, 2019 ▪ 33 locations in Georgia ▪ 350 team members ▪ Traded on NASDAQ – symbol “CBAN” ▪ The sixth largest Georgia - based bank in the state and the largest community bank headquartered outside of Atlan
Slide 5: Leadership Team
4 Name Position Years in Banking Years With Colony T. Heath Fountain President and Chief Executive Officer 19 1 Edward "Lee" Bagwell EVP, Chief Risk Officer and General Counsel 16 16 J. Stan Cook EVP, Chief Credit Officer 34 7 Kimberly Dockery EVP, Chief Administrative Officer 13 1 Max "Eddie" Hoyle
Slide 6: Driving High Performance: Strong Organic Growth
5 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: Expansion Opportunities
6 DRIVING HIGH PERFORMANCE ▪ Achieve strong organic growth each year ▪ Seize on expansion opportunities ▪ Technology and regulatory headwinds are causing industry consolidation ▪ Industry consolidation is creating opportunity to acquire customers and talent ▪ Acquisition of both LBC, holding company
Slide 8: Acquisition Activity
7 ACQUISITION ACTIVITY Overview Franchise Footprint ▪ Completed acquisition of LBC on May 1, 2019 ▪ Holding company for Calumet Bank ▪ Natural expansion into logical, contiguous markets in western Georgia ▪ Added two branches in LaGrange and Columbus, GA ▪ Potential to be rapidly accretive to earnin
Slide 9: Driving High Performance: Increase Operating Efficiency
8 DRIVING HIGH PERFORMANCE ▪ Achieve strong organic growth each year ▪ Seize on expansion opportunities ▪ Increase operating efficiency ▪ Optimize our balance sheet for improved earnings ▪ Improve processes for efficiency and better controls ▪ Run a more efficiently staffed branch network ▪ Utilize
Slide 10: Driving High Performance: Increase Non-Interest Income
9 DRIVING HIGH PERFORMANCE ▪ Increase non - interest income ▪ Growing our deposit account customer base increases service charge and interchange revenue ▪ Acquisition of PFB Mortgage added to our mortgage team in 2019 ▪ Started a Small Business Specialty Lending division to offer SBA, USDA and other
Slide 11: Mortgage Division
10 ▪ In March 2019, opened mortgage loan origination office in LaGrange, led by a local and experienced lending team, the Whatley Team ▪ 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
Slide 12: Small Business Specialty Lending Group
11 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 13: Driving High Performance: Culture of High Performance
12 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 14: Value Proposition to Our Customers
13 ▪ 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 g
Slide 15: Financial Highlights
14 2015 2016 2017 2018 2019 Diluted earnings per share $0.71 $0.84 $0.87 $1.40 $1.12 Adjusted diluted earnings per share (1) $0.80 $0.87 $1.12 $1.43 $1.35 Dividends per share $0.00 $0.00 $0.10 $0.20 $0.30 Return on average assets 0.52% 0.62% 0.63% 0.99% 0.72% Return on average total equity 5.90% 7.1
Slide 16: Financial Highlights: Trailing 5 Quarters
15 4Q2018 1Q2019 2Q2019 3Q2019 4Q2019 Diluted earnings per share $0.35 $0.34 $0.23 $0.27 $0.29 Adjusted diluted earnings per share (1) $0.36 $0.34 $0.34 $0.35 $0.32 Dividends per share $0.05 $0.075 $0.075 $0.075 $0.075 Return on average assets 0.97% 0.90% 0.60% 0.67% 0.73% Return on average total eq
Slide 17: Balance Sheet Financial Highlights
16 2015 2016 2017 2018 2019 Total assets $1,174.2 $1,210.4 $1,232.8 $1,251.9 $1,515.3 Total loans $ 749.7 $ 745.0 $ 757.3 $ 774.3 $ 961.7 Total deposits $ 1,011.6 $ 1,044.4 $1,068.0 $1,085.1 $1,294.2 NPA/Total assets 1.98% 1.55% 0.95% 0.90% 0.73% BALANCE SHEET FINANCIAL HIGHLIGHTS (Dollars in millio
Slide 18: Balance Sheet Financial Highlights: Trailing 5 Quarters
17 4Q2018 1Q2019 2Q2019 3Q2019 4Q2019 Total assets $1,251.9 $1,279.1 $1,506.5 $1,477.7 $1,515.3 Total loans $ 774.3 $ 772.9 $ 927.9 $ 951.6 $ 961.7 Total deposits $1,085.1 $1,111.7 $1,297.7 $1,251.3 $1,294.2 NPA/Total assets 0.90% 0.72% 0.77% 0.74% 0.73% BALANCE SHEET FINANCIAL HIGHLIGHTS (Dollars i
Slide 19: Shareholder Focused Dividend Policy
18 The current indicated annual rate is $0.40 per share, equating to a yield of 2.5% and a payout ratio of 35% SHAREHOLDER FOCUSED DIVIDEND POLICY $0.025 $0.05 $0.075 $0.10 2017 2018 2019 2020 Quarterly Dividend Payment
Slide 20: Capital Ratios
19 10.3% 9.9% 10.2% 9.0% 15.5% 14.6% 15.0% 12.5% 16.6% 15.6% 15.9% 13.2% 11.3% 11.8% 12.2% 10.3% 2016 2017 2018 2019 Tier One Leverage Ratio Tier One Ratio Total Risk-based Capital Ratio Common Equity Tier One Capital Ratio CAPITAL RATIOS
Slide 21: Solid Core Deposit Franchise
20 SOLID CORE DEPOSIT FRANCHISE Time Deposits 27% Savings and Money - markets 27% Noninterest - Bearing Demand 18% Interest - Bearing Demand 28% As of December 31, 2019 Total Deposits: $1.29 billion MRQ Cost of Deposits: 0.78%
Slide 22: Loan Portfolio Breakdown
21 LOAN PORTFOLIO BREAKDOWN Real Estate 86% Commercial and agricultural 9% Consumer and Other 5% Commercial construction 9% Residential construction 3% Commercial real estate 55% Residential real estate 23% Farmland 8% $969.2 million $831.5 million As of December 31, 2019
Slide 23: Loan Portfolio
22 $782.0 $780.0 $935.3 $958.7 $969.2 $763.6 $763.5 $796.0 $826.3 $848.4 Total Loans Organic Loans LOAN PORTFOLIO 12/31/18 (Dollars in millions) 2019 Organic Loan Growth of $84.8 million - 11% 3/31/19 6/30/19 9 /30/19 12 /31/19
Slide 24: Investment Considerations
23 ▪ Well positioned for continued organic growth ▪ Potential for accelerated growth through acquisitions ▪ Improving earnings outlook ▪ Shareholder friendly dividend policy ▪ Opportunities created by industry consolidation ▪ Seasoned leadership with a proven track record INVESTMENT CONSIDERATIONS
Slide 25: Reconciliation of Non-GAAP Measures
24 RECONCILIATION OF NON - GAAP MEASURES 2017 2018 2019 4Q18 4Q19 Total noninterest income $ 9,735 $ 9,621 $ 14,762 $ 2,458 $ 4,389 Securities gains - (116) (97) - 2 Realized (gains) losses on OREO property held for sale 121 (41) (780) (80) 10 Adjusted noninterest income $ 9,856 $ 9,464 $ 13,885 $ 2
Slide 26: Colony Bankcorp, Inc.
COLONY BANKCORP, INC. Righthore with you. NASDAQ: CBAN