Colony Bankcorp, Inc. · NYSE:CBAN
Colony Bankcorp — Merger or Acquisition (January 2019)
23 slides from Colony Bankcorp's merger presentation, Jan 30, 2019
Slide 1: Filed by Colony Bankcorp, Inc. Pursuant to Rule 425
January 2019 Filed by Colony Bankcorp, Inc. Pursuant to Rule 425 under the Securities Act of 1933 and deemed filed pursuant to Rule 14a-12 under the Securities Exchange Act of 1934 Subject Company: Colony Bankcorp, Inc. LBC Bancshares, Inc. Filer’s Commission File No.: 000-12436 Date: January 30, 20
Slide 2: Forward-Looking 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 identified. In addition
Slide 3: Participants in the Transaction
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 regarding the interests of t
Slide 4: Leadership Team
Name Position Years in Banking Years With CBAN T. Heath Fountain President and Chief Executive Officer 18 <1 J. Stan Cook EVP, Chief Operating Officer 33 6 Terry L. Hester EVP, Chief Financial Officer 43 43 Edward "Lee" Bagwell EVP, Chief Credit Officer 15 15 Kimberly Dockery EVP, Chief Administrati
Slide 5: Company Profile
Founded in 1975 Headquartered in Fitzgerald, Georgia $1.3 billion in assets at December 31, 2018 New leadership focused on growth 27 locations in Central, Southern and Coastal Georgia The ninth largest Georgia-based bank in the state and the largest community bank in South Georgia Strong capital pos
Slide 6: Strategic Advantages
Size and capabilities Attractive footprint Clean balance sheet No TARP overhang New, seasoned leadership with a proven track record Strategic Advantages
Slide 7: Driving High Performance: Change the culture
Driving High Performance Change the culture Assess current talent Strengthen out team where needed Initiate new procedures and processes Proactive business development Implement a better tracking program Increase accountability Implement incentives to retain and attract high caliber bankers
Slide 8: Driving High Performance: Reallocate our resources
Driving High Performance Change the culture Reallocate our resources Focus on loan and deposit opportunities Realign balance sheet
Slide 9: Driving High Performance: Attract new bankers
Driving High Performance Change the culture Reallocate our resources Attract new bankers Identify bankers and teams from larger institutions Create the ideal culture for top bankers Become the banker’s bank of choice
Slide 10: Driving High Performance: Reaccelerate expansion
Driving High Performance Reaccelerate expansion Lift out/add to banking teams in current and new markets Identify potential whole-bank acquisitions Desired acquisition targets are smaller than targets typically pursued by larger acquisitive banks Less competition to enter smaller MSAs Colony offers
Slide 11: Acquisition Target: LBC Bancshares, Inc.
Acquisition Target: LBC Bancshares, Inc. Overview Franchise Footprint Holding company for Calumet Bank Bank founded in 2008 LBC Bancshares, Inc. founded in 2014 Headquartered in LaGrange, GA, with two branches and one loan production office (“LPO”) Branches located in LaGrange and Columbus, GA LPO l
Slide 12: Summary Transaction Terms
Summary Transaction Terms 52% Stock / 48% Cash Total Consideration Mix for Common $33.7 million or $22.12 per FD share Total Merger Value 170% Price / Tangible Book Value 18.3x Price / LTM EPS 13.9x Price / YTD 2018 EPS (annualized) 7.8x Price / 2019E EPS + Cost Saves (1) 7.9% Core Deposit Premium (
Slide 13: Transactional Rationale
Transactional Rationale Natural expansion into logical, contiguous markets in western Georgia Provides entry into the LaGrange, GA, market and strengthens footprint in Columbus, GA Creates a more favorable demographic profile for CBA Pro forma Company ranks third and ninth in largest deposit market
Slide 14: Driving High Performance: Target line of business growth
Driving High Performance 12 Reaccelerate expansion Target line of business growth Government guaranteed lending (SBA, USDA) Mortgage lending Treasury services Consider new lines of business as opportunities arise Change the culture Reallocate our resources Attract new bankers
Slide 15: Three-year Financial Highlights
2016 2017 2018 Diluted earnings per share $0.84 $0.87* $1.40 Dividends per share $0.00 $0.10 $0.20 Return on average assets 0.62% 0.63% 0.99% Return on average total equity 7.17% 8.28% 13.32% Net interest margin 3.51% 3.46% 3.56% Efficiency ratio 71.74% 69.19% 70.05% Three-year Financial Highlights
Slide 16: Dividends Restored
Cash dividends suspended in 2009 In 2017, the Company reinstated its quarterly cash dividend at a rate of $0.025 per share The Company increased the quarterly cash dividend to $0.05 per share in 2018 and to $0.075 per share in 2019 The current indicated annual rate is $0.30 per share, equating to a
Slide 17: Capital Ratios
Capital Ratios 6.6% 15.5% 15.6% 15.9% 14.6% OS 12.2% mice} 11.8% 10.3% 9.0% 10.2% 2016 2017 2018 ‘Tier One Leverage Ratio Tier One Ratio Total Risk-based Capital Ratio = Common Equity Tier One Capital Ratio
Slide 18: Solid Core Deposit Franchise
Solid Core Deposit Franchise 16 As of December 31, 2018 Total Deposits: $1.09 billion MRQ Cost of Deposits: 0.72%
Slide 19: Loan Portfolio Breakdown
Loan Portfolio Breakdown As of December 31, 2018 $782.0 million $684.3 million
Slide 20: Loan Portfolio Growth
Loan Portfolio Growth (Dollars in millions)
Slide 21: Asset Quality Trends
(Dollars in millions) Asset Quality Trends
Slide 22: Key Investment Points
Strong, experienced management team Renewed focus on generating organic loan and deposit growth Potential acquisition opportunities Nimble, with responsive decision/credit process Positioned to expand in existing and new lines of business Strong capital position, solid credit quality Key Investment
Slide 23: Colony Bankcorp, Inc.
COLONY BANKCORP, INC. NASDAQ: CBAN
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