Colony Bankcorp, Inc. · NYSE:CBAN
Colony Bankcorp — Q3 2024 Earnings Presentation
31 slides from Colony Bankcorp's earnings presentation, Oct 24, 2024
Slide 1: Investor Presentation Third Quarter 2024
INVESTOR PRESENTATION THIRD 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 September 30, 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 franchi
Slide 4: Colony Bankcorp, Inc.
§ COLONY. Gi BANKCORP, INC. Colony Bank understands that whether you're running a business, raising a family, or simply building up your individual financial stability, every goal comes with its unique challenges. Since 1975, we've made it our mission to help simplify your banking. We see challenges
Slide 5: Purpose, Mission and Shareholder Commitment
COLONY BANKCORP, INC. 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’ needs. This design
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 R. Dallis "D" Copeland, Jr. President 32 3 Kimberly Dockery EVP, Chief of Staff 18 6 T. Heath Fo
Slide 7: 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 8: Complementary Lines of Business
COMPLEMENTARY LINES OF BUSINESS 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 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 $ (263) $ 26 $ (13) $ 180 $ 346 SBSL (351) 686 1,109 1,674 1,819 Marine/RV Lending 100 16 (
Slide 9: Small Business Specialty Lending Group
SMALL BUSINESS SPECIALTY LENDING GROUP Production and Sales Volume Loan Portfolio Breakdown - $98.4 million (Dollars in millions) $34.5 $35.6 $30.1 $27.0 $27.2 Commercial RE $25.8 $24.0 $24.0 55.1% Construction $18.0 3% $14.6 Commercial, financial & agriculture 32.1% Residential RE 3Q 2023 4Q 2023 1
Slide 10: Mortgage Division
MORTGAGE DIVISION (Dollars in millions) Production and Sales Volume $78.4 $65.1 $66.6 $57.8 $53.3 $50.1 $45.3 $45.2 $40.1 $36.6 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 Production Sales • Stable mortgage production relative to the continued market rate increases • Remain focused on secondary market p
Slide 11: 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 12: Shareholder Focused Dividend Policy
SHAREHOLDER FOCUSED DIVIDEND POLICY Quarterly Dividend Payment $0.11 $0.1125 $0.1075 $0.10 $0.1025 2020 2021 2022 2023 2024(¹) The current indicated annual rate is $0.45 per share, equating to a yield of 3.0%.(2) (1) The Board of Directors declared a dividend to be paid on its common stock on Novemb
Slide 13: Capital Ratios
CAPITAL RATIOS 16.2% 16.5% 15.4% 15.8% 15.1% 13.4% 13.7% 12.7% 13.0% 12.5% 12.3% 12.5% 11.6% 11.9% 11.4% 9.2% 9.4% 9.5% 8.9% 9.2% 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 Tier One Leverage Ratio Tier One Ratio Total Risk-based Capital Ratio Common Equity Tier One Capital Ratio 13
Slide 14: Strength in Our Liquidity Position
STRENGTH IN OUR LIQUIDITY POSITION Significant liquidity sources Debt Funding* As of September 30, 2024 (dollars in millions) (dollars in millions) $205.0 FRB Reserves $ 117.1 $185.0 $185.0 $175.0 $155.0 Other Cash and Due from Banks 26.3 Unencumbered Securities 435.1 FHLB Borrowing Capacity 564.3 F
Slide 15: Annual Noninterest Income Mix
ANNUAL NONINTEREST INCOME MIX 100% 80% 60% 40% 35% 30% 30% 31% 23% 20% 0% 2019 2020 2021 2022 2023 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 16: Quarterly Noninterest Income Mix
QUARTERLY NONINTEREST INCOME MIX 100% 75% 50% 33% 33% 34% 34% 35% 25% 0% 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 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 17: Annual Deposit Mix and Pricing
ANNUAL DEPOSIT MIX AND PRICING 1.76% 1.00% 0.51% 0.32% 0.19% 2019 2020 2021 2022 2023 Noninterest-bearing Interest-bearing Savings/money market Time Cost of interest-bearing deposits 17
Slide 18: Quarterly Deposit Mix and Pricing
QUARTERLY DEPOSIT MIX AND PRICING 2.54% 2.36% 2.40% 2.25% 2.00% 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 Noninterest-bearing Interest-bearing Savings/money market Time Cost of interest-bearing deposits 18
Slide 19: Deposit Balance Data
DEPOSIT BALANCE DATA (Dollars in thousands) AVERAGE DEPOSIT BALANCE PER ACCOUNT $47.9 $48.4 $51.6 $47.7 $46.6 $33.7 $35.0 $36.5 $37.5 $32.9 $17.4 $18.8 $19.6 $19.6 $19.3 $14.1 $14.8 $14.0 $12.8 $13.0 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 Noninterest-bearing Interest-bearing Savings/money market Ti
Slide 20: Diversity of Business Deposit Base
DIVERSITY OF BUSINESS DEPOSIT BASE As of September 30, 2024 Public Administration Construction 20.7% 13.6% All other, 2.4% Educational Services 5.8% Transportation and Warehousing 1.5% Wholesale Trade, 2.1% Real Estate and Rental and Leasing 13.3% Accommodation and Food Services 1.4% Professional, S
Slide 21: Uninsured Deposits
UNINSURED DEPOSITS 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% Sep-23 Dec-23 Mar-24 Jun-24 Sep-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 22: Loan Portfolio Breakdown
LOAN PORTFOLIO BREAKDOWN As of September 30, 2024 $1,886.0 million $1,558.6 million Farmland 4.5% Nonowner occupied real Construction 12.6% estate 33.9% Agriculture 1.3% Real Estate 82.7% Residential real Commercial estate 22.5% 11.5% Consumer and Other Multifamily real 4.5% estate 4.8% Owner occupi
Slide 23: Loan Portfolio
LOAN PORTFOLIO (Dollars in millions) Organic Loan Growth Weighted Average Loan to Values $1,865 $1,883 $1,859 $1,866 $1,886 70.6% 69.8% 72.4% 72.2% 72.9% 45.4% 45.0% 45.5% 47.7% 46.2% 3Q2023 4Q2023 1Q2024 2Q2024 3Q2024 3Q2023 4Q2023 1Q2024 2Q2024 3Q2024 Residential Construction Organic Purchased Loa
Slide 24: Commercial Real Estate by Type
COMMERCIAL REAL ESTATE BY TYPE As of September 30, 2024 (Dollars in thousands) Outstanding Average Type Balance Deal Size Retail $ 176,998 $ 1,351 Specialty and Other, 7% Retail Multifamily 74,880 1,144 29% Government Office 64,487 686 Guaranteed:SBSL, 3% Industrial & Warehouse 67,699 1,058 Mini-war
Slide 25: Office Portfolio Breakdown
OFFICE PORTFOLIO BREAKDOWN (dollars in millions) September 30, 2024 Offices by Number of Floors • Total loans secured by office buildings - $168.2 million • Owner-occupied (OO) - 53.5% • Non owner-occupied (NOO) - 46.5% One Story Offices $98.1 • Non-Recourse loans - $0 • Past dues 0.0% of total port
Slide 26: Investment Securities
INVESTMENT SECURITIES (Dollars in thousands) Portfolio Composition September 30, 2024 Description Book Value Percentage U.S. Agency MBS/CMO $ 326,004 37 % Municipal 258,148 30 % Private Label MBS 92,170 11 % U.S. Treasuries 98,131 11 % Corporates 53,330 6% SBA and Asset-Backed Securities 23,022 3% U
Slide 27: Investment Securities
INVESTMENT SECURITIES (Dollars in thousands) Private Label MBS September 30, 2024 Number of Unrealized Rating: Book Value Market Value Securities Loss AAA 23 $ 74,034 $ 66,436 $ (7,598) Aa3 1 3,082 2,894 (188) NR 9 15,054 14,892 (162) TOTAL 33 $ 92,170 $ 84,222 $ (7,948) Corporate Securities Septemb
Slide 28: Investment Securities
INVESTMENT SECURITIES Unrealized Losses on Securities (in millions) AFS/HTM 100% $64.3 $66.0 75% $48.0 $48.3 $48.5 $48.3 $49.6 $43.8 $37.2 $34.7 50% 25% —% 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 3Q 2023 4Q 2023 1Q 2024 2Q 2024 3Q 2024 Available for Sale HTM AFS HTM Other Portfolio Metrics As of: Av
Slide 29: Q3 2024 Investment Securities Sales
Q3 2024 INVESTMENT SECURITIES SALES • Sold securities with a fair value of $7.9 million • Transaction resulted in a loss on sale of $454 thousand • Combined book yield of 2.61% on sold securities • Conservative earnback estimates are approximately 2 years or less • Purpose of transaction was to rest
Slide 30: 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 31: NASDAQ: CBAN
eS COLONY BANKCORP, INC. Right here with you. NASDAQ: CBAN