Colony Bankcorp, Inc. · NYSE:CBAN
Colony Bankcorp — Q4 2024 Earnings Presentation
34 slides from Colony Bankcorp's earnings presentation, Jan 23, 2025
Slide 1: Investor Presentation Fourth Quarter 2024
co 5 Q) BANKCORP, INC. week A R § INVESTOR PRESENTATION Fourth Quarter 2024
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: Company Profile
COMPANY PROFILE • Georgia’s largest community bank, headquartered outside of Atlanta(1) • $3.1 billion in assets as of December 31, 2024 • 34 locations in Georgia, 1 in Alabama and 1 in Florida • Diversification of revenue streams • Track record of solid organic growth • Increase in deposit franchis
Slide 4: Since 1975, Colony Bank empowering progress
COLONY 50 - ates — ( BANKCORP, INC. Since 1975, Colony Bank has been empowering progress for individuals, families, and businesses. What began as a single vision in Fitzgerald, Georgia, has transformed into a five-decade journey marked by trust, growth, and innovation. Today, we proudly serve custom
Slide 5: Purpose, mission and core values
@ 2025 —_ COLONY 9) BANKCORP, INC. YEARS The Colony Bank logo features a symbolic lotus flower within its icon, representing the Company's strength and resilience. Paired with upward rays of sunshine, it signifies the potential for a new day and highlights our commitment to supporting our customers’
Slide 6: Executive Leadership Team
EXECUTIVE LEADERSHIP TEAM Years In Years With Name Position Banking Colony Edward "Lee" Bagwell EVP, Chief Risk Officer and General Counsel 21 21 Leonard H. "Lenny" Bateman EVP, Chief Credit Officer 28 5 Ed Canup EVP, Chief Banking Officer 42 2 R. Dallis "D" Copeland, Jr. President 32 3 Kimberly Doc
Slide 7: Colony Moves to NYSE
COLONY MOVES TO NYSE • Transitioned to the NYSE in November of 2024 • Provides opportunity for higher trading volumes with lower volatility and tighter spreads • Joins several peers and other community banks listed on the NYSE • Increased liquidity for our stock and long-term value creation for our
Slide 8: 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 • Maintain noninterest expense • Improve efficiency through discipline to align with growth economies of
Slide 9: Organic Growth
ORGANIC GROWTH • Presence in dynamic growth markets of Atlanta, Augusta, Birmingham, North Florida and Savannah provides opportunity for above average growth • Second-tier MSA markets of Albany, Columbus, Macon and Valdosta have significant market share held by large regional and national banks, cre
Slide 10: M&A Strategy
M&A STRATEGY • Colony seeks to benefit from industry consolidation and become the acquirer of choice in Georgia and contiguous states • 319 banks under $600 million • 87 banks between $600 million and $1.2 billion • Proactive outreach effort to generate opportunities • Management team with deep M&A
Slide 11: Efficiency and Scaling
EFFICIENCY AND SCALING • Focused on process improvement and ensuring it is easy to do business with Colony Bank • Hired a Director of Optimization with experience from a large regional bank to oversee process improvement and customer experience • Utilization of Robotic Process Automation ("RPA") and
Slide 12: Innovation and Data Strategy
INNOVATION AND DATA STRATEGY • Successful digital banking implementation offering customers an elevated, seamless and convenient banking experience • Research and develop all potential technology-based opportunities • Increase customer wallet share through data gathering and analytics • Full impleme
Slide 13: Complementary Lines of Business
COMPLEMENTARY LINES OF BUSINESS 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 Pre-tax Profit/ Pre-tax Profit/ Pre-tax Profit/ Pre-tax Profit/ Pre-tax Profit/ Loss Loss Loss Loss Loss (Dollars in thousands) Mortgage $ 26 $ (13) $ 180 $ 346 $ (101) SBSL 686 1109 1,674 1,819 2,242 Marine/RV Lending 16 (71) (
Slide 14: Small Business Specialty Lending Group
SMALL BUSINESS SPECIALTY LENDING GROUP Production and Sales Volume Loan Portfolio Breakdown - $102.4 million (Dollars in millions) $35.6 $30.1 $30.0 $27.2 $25.8$27.0 Commercial RE $24.0 $24.0 54.7% $22.2 Construction $18.0 2% Commercial, financial & agriculture 31.7% Residential RE 4Q 2023 1Q 2024 2
Slide 15: Mortgage Division
MORTGAGE DIVISION (Dollars in millions) Production and Sales Volume $76.9 $65.1 $66.6 $57.8 $50.1 $51.4 $45.3 $45.2 $40.1 $36.6 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 Production Sales • Increased mortgage production relative to the continued market rate changes • Remain focused on secondary market
Slide 16: Shareholder Focused Dividend Policy
SHAREHOLDER FOCUSED DIVIDEND POLICY Quarterly Dividend Payment $0.1125 $0.1150 $0.1075 $0.1100 $0.1025 2021 2022 2023 2024 2025(¹) The current indicated annual rate is $0.46 per share, equating to a yield of 2.9%.(2) (1) The Board of Directors declared a dividend to be paid on its common stock on Fe
Slide 17: Capital Ratios
CAPITAL RATIOS 17.1% 16.2% 16.5% 15.4% 15.8% 14.3% 13.4% 13.7% 12.7% 13.0% 13.1% 12.3% 12.5% 11.6% 11.9% 9.2% 9.2% 9.4% 9.5% 9.5% 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 Tier One Leverage Ratio Tier One Ratio Total Risk-based Capital Ratio Common Equity Tier One Capital Ratio 17
Slide 18: Strength in Our Liquidity Position
STRENGTH IN OUR LIQUIDITY POSITION Significant liquidity sources Debt Funding* As of December 31, 2024 (dollars in millions) (dollars in millions) $205.0 FRB Reserves $ 200.5 $185.0 $185.0 $175.0 $155.0 Other Cash and Due from Banks 29.1 Unencumbered Securities 337.1 FHLB Borrowing Capacity 578.7 Fe
Slide 19: Annual Noninterest Income Mix
ANNUAL NONINTEREST INCOME MIX 100% 80% 60% 40% 35% 34% 30% 30% 31% 20% 0% 2020 2021 2022 2023 2024 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 *Wealth Manage
Slide 20: Quarterly Noninterest Income Mix
QUARTERLY NONINTEREST INCOME MIX 100% 75% 50% 33% 34% 34% 35% 33% 25% 0% 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 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
Slide 21: Annual Deposit Mix and Pricing
ANNUAL DEPOSIT MIX AND PRICING 2.42% 1.76% 0.51% 0.32% 0.19% 2020 2021 2022 2023 2024 Noninterest-bearing Interest-bearing Savings/money market Time Cost of interest-bearing deposits 21
Slide 22: Quarterly Deposit Mix and Pricing
QUARTERLY DEPOSIT MIX AND PRICING 2.54% 2.36% 2.40% 2.38% 2.25% 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 Noninterest-bearing Interest-bearing Savings/money market Time Cost of interest-bearing deposits 22
Slide 23: Deposit Balance Data
DEPOSIT BALANCE DATA (Dollars in thousands) AVERAGE DEPOSIT BALANCE PER ACCOUNT $51.6 $51.2 $46.6 $47.9 $48.4 $37.5 $39.5 $33.7 $35.0 $36.5 $18.8 $19.6 $19.6 $19.3 $20.4 $14.8 $14.0 $12.8 $13.0 $13.7 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 Noninterest-bearing Interest-bearing Savings/money market Ti
Slide 24: Diversity of Business Deposit Base
DIVERSITY OF BUSINESS DEPOSIT BASE As of December 31, 2024 Public Administration Construction 21.8% 13.1% All other, 2.3% Transportation and Warehousing Educational Services 1.4% 7.2% Wholesale Trade, 1.9% Real Estate and Rental and Leasing 9.2% Accommodation and Food Services 1.3% Other Services(ex
Slide 25: Uninsured Deposits
UNINSURED DEPOSITS 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Uninsured Deposits Estimate Adjusted Uninsured Deposits Estimate * *Adjusted uninsured deposit estimate excludes deposits collateralized by public funds or internal accounts. All deposits are held at Colo
Slide 26: Loan Portfolio Breakdown
LOAN PORTFOLIO BREAKDOWN As of December 31, 2024 $1,843.0 million $1,539.9 million Farmland 4.5% Nonowner Construction 13.3% occupied real estate 33.2% Agriculture 0.9% Real Estate Commercial 83.6% Residential real 10.7% estate 22.3% Consumer and Other 4.8% Multifamily real estate 4.6% Owner occupie
Slide 27: Loan Portfolio
LOAN PORTFOLIO (Dollars in millions) Organic Loan Growth Weighted Average Loan to Values $1,883 $1,859 $1,866 $1,886 $1,843 69.8% 72.4% 72.2% 72.9% 67.0% 45.0% 45.5% 47.7% 46.2% 48.2% 4Q2023 1Q2024 2Q2024 3Q2024 4Q2024 4Q2023 1Q2024 2Q2024 3Q2024 4Q2024 Residential Construction Organic Purchased Loa
Slide 28: Commercial Real Estate by Type
COMMERCIAL REAL ESTATE BY TYPE As of December 31, 2024 (Dollars in thousands) Outstanding Average Type Balance Deal Size Specialty and Other, 6% Retail $ 157,645 $ 1,222 Retail Multifamily 70,390 1,100 Government 27% Guaranteed:SBSL, 3% Office 76,391 804 Industrial & Warehouse 70,669 1,087 Mini-ware
Slide 29: Investment Securities
INVESTMENT SECURITIES (Dollars in thousands) Portfolio Composition December 31, 2024 Description Book Value Percentage U.S. Agency MBS/CMO $ 331,507 38 % Municipal 257,524 30 % Private Label MBS 83,807 10 % U.S. Treasuries 94,117 11 % Corporates 53,323 6% SBA and Asset-Backed Securities 20,927 3% U.
Slide 30: Investment Securities
INVESTMENT SECURITIES (Dollars in thousands) Private Label MBS December 31, 2024 Rating: Number of Book Value Market Value Unrealized Securities Loss AAA 23 $ 72,310 $ 63,468 $ (8,842) Aa3 1 3,072 2,776 (296) NR 6 8,425 8,344 (81) TOTAL 30 $ 83,807 $ 74,588 $ (9,219) Corporate Securities December 31
Slide 31: Investment Securities
INVESTMENT SECURITIES Unrealized Losses on Securities (in millions) AFS/HTM 100% $48.0 $48.3 $48.5 $48.3 $49.6 $47.0 $43.8 $43.6 75% $37.2 $34.7 50% 25% —% 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 4Q 2023 1Q 2024 2Q 2024 3Q 2024 4Q 2024 Available for Sale HTM AFS HTM Other Portfolio Metrics As of: Av
Slide 32: Q4 2024 Investment Securities Sales
Q4 2024 INVESTMENT SECURITIES SALES • Sold securities with a fair value of $8.3 million • Transaction resulted in a loss on sale of $401 thousand • Combined book yield of 2.15% on sold securities • Conservative earnback estimates are approximately 2 years or less • Purpose of transaction was to rest
Slide 33: Investment Considerations
INVESTMENT CONSIDERATIONS • Premier Southeast community bank located in growing markets • Core deposit funded with minimal reliance on wholesale funding • Diversified sources of revenue • Improving earnings outlook as new business lines and markets mature • Upside to tangible book value as unrealize
Slide 34: NYSE: CBAN
BANKCORP, INC. YEARS Right here with you. NYSE: CBAN