Colony Bankcorp, Inc. · NYSE:CBAN
Colony Bankcorp — Q4 2020 Earnings Presentation
28 slides from Colony Bankcorp's earnings presentation, Jan 22, 2021
Slide 1: Investor Presentation Fourth Quarter 2020
1 Investor Presentation Fourth Quarter - 2020
Slide 2: Forward-looking statements
1 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 contained in the Compa
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 measure to GAAP financial measures. The non-GAAP financial measures used in this presentation include the followi
Slide 4: Company Profile
3 COMPANY PROFILE Locations • Founded in 1975 • Headquartered in Fitzgerald, Georgia • $1.8 billion in assets at December 31, 2020 • 32 locations in Georgia • 368 team members • Traded on NASDAQ – symbol “CBAN” • The sixth largest Georgia-based bank in the state and the largest community bank headqu
Slide 5: Leadership Team
4 Name Position Years In Banking Years With Colony T. Heath Fountain President and Chief Executive Officer 20 2 Edward "Lee" Bagwell EVP, Chief Risk Officer and General Counsel 17 17 Leonard H. “Lenny” Bateman EVP, Chief Credit Officer 25 1 Kimberly Dockery EVP, Chief Administrative Officer 14 2 Max
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 depo
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 Bancshares, Inc.
Slide 8: Acquisition Activity
7 Overview ◦ 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 earnings with a short tangible book earnback ◦
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 t
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 g
Slide 11: Mortgage Division
10 • 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 Albany, Athens, Macon, Savannah, Statesboro and Warner Robins ◦ Added seasoned mortgage executives through acquisition • Increased
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 fee
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 giv
Slide 15: Annual Financial Highlights
14 2016 2017 2018 2019 2020 Diluted earnings per share $ 0.84 $ 0.87 $ 1.40 $ 1.12 $ 1.24 Dividends per share $ — $ 0.10 $ 0.20 $ 0.30 $ 0.40 Return on average assets 0.62% 0.63% 0.99% 0.72% 0.70% Return on average total equity 7.17% 8.28% 13.32% 8.72% 8.56% Net interest margin 3.51% 3.46% 3.56% 3.6
Slide 16: Financial Highlights
15 4Q2019 1Q2020 2Q2020 3Q2020 4Q2020 Diluted earnings per share $ 0.29 $ 0.17 $ 0.23 $ 0.33 $ 0.52 Adjusted earnings per diluted share (1) $ 0.32 $ 0.19 $ 0.25 $ 0.39 $ 0.44 Dividends per share $ 0.075 $ 0.10 $ 0.10 $ 0.10 $ 0.10 Return on average assets 0.73% 0.42% 0.52% 0.70% 1.08% Return on aver
Slide 17: Annual Balance Sheet Financial Highlights
16 2016 2017 2018 2019 2020 Total assets $ 1,210.4 $ 1,232.8 $ 1,251.9 $ 1,515.3 $ 1,763.9 Loans $ 754.3 $ 765.3 $ 782.4 $ 971.2 $ 1,062.8 Unearned income $ (0.4) $ (0.5) $ (0.5) $ (0.6) $ (2.4) Unamortized discount on acquired loans $ — $ — $ (0.3) $ (1.7) $ (0.9) Allowance for loan losses $ (8.9)
Slide 18: Balance Sheet Financial Highlights
17 4Q2019 1Q2020 2Q2020 3Q2020 4Q2020 Total assets $ 1,515.3 $ 1,510.0 $ 1,777.6 $ 1,759.4 $ 1,763.9 Loans $ 971.2 $ 990.8 $ 1,119.6 $ 1,112.6 $ 1,062.8 Unearned income $ (0.6) $ (0.5) $ (4.4) $ (3.8) $ (2.4) Unamortized discount on acquired loans $ (1.7) $ (1.3) $ (1.2) $ (1.2) $ (0.9) Allowance fo
Slide 19: Shareholder Focused Dividend Policy
18 The current indicated annual rate is $0.40 per share, equating to a yield of 2.7% and a payout ratio of 32% SHAREHOLDER FOCUSED DIVIDEND POLICY Quarterly Dividend Payment $0.025 $0.05 $0.075 $0.10 Quarterly Dividend 2017 2018 2019 2020
Slide 20: Capital Ratios
19 CAPITAL RATIOS 9.9% 10.2% 9.0% 9.6% 14.6% 15.0% 12.5% 14.3% 15.6% 15.9% 13.2% 15.4% 11.8% 12.2% 10.3% 12.2% Tier One Leverage Ratio Tier One Ratio Total Risk-based Capital Ratio Common Equity Tier One Capital Ratio 2017 2018 2019 2020
Slide 21: Solid Core Deposit Franchise
20 SOLID CORE DEPOSIT FRANCHISE As of December 31, 2020 Total Deposits: $1.45 billion MRQ Cost of Deposits: 0.29% Interest Bearing Demand, 30% Noninterest bearing demand, 23% Time deposits, 18% Savings and Money- markets, 29%
Slide 22: Loan Portfolio Breakdown
21 LOAN PORTFOLIO BREAKDOWN As of December 31, 2020 $890.7 million Commercial real estate 55% Residential real estate 22% Construction 15% Farmland 8% $1,059.3 million Real Estate 78% Consumer and Other 2.0% Commercial 19% Agriculture 1.6%
Slide 23: Loan Portfolio
22 LOAN PORTFOLIO (1) (Dollars in millions) Organic Loan Growth (Excluding PPP Loans) (1) Represents gross loan balances. Excludes PPP loans totaling $101.1 million at 12/31/2020 and $133.8 million at 9/30/2020 and 6/30/2020 $971.2 $990.8 $981.9 $967.8 $958.4 $850.5 $842.5 $863.0 $868.8 $872.5 Total
Slide 24: COVID-Related Activity
23 COVID-RELATED ACTIVITY • Originated $137.8 million in PPP loans • Prospected new customers from larger banks and executed non-PPP loans and other fee-generating income • Branches have been reconfigured and are currently open and operating in a way to protect team members and customers • Able to s
Slide 25: COVID-Related Active Loan Deferrals by Collateral Type
24 Number Amount Hotel(1) 1 $ 1.9 Total 1 $ 1.9 COVID-RELATED ACTIVE LOAN DEFERRALS BY COLLATERAL TYPE (as of December 31, 2020) (Dollars in millions) (1) Loan is a top tier hotel
Slide 26: Investment Considerations
25 •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 27: Reconciliation of Non-GAAP Measures
26 RECONCILIATION OF NON-GAAP MEASURES (Dollars in thousands, except per share data) 2020 2019 Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter Net income (GAAP) $ 4,900 $ 2,214 $ 2,214 $ 1,603 $ 2,756 Acquisition-related expenses 148 207 220 287 335 Gain on sale of Thomaston
Slide 28: Colony Bankcorp, Inc.
COLONY BANKCORP, INC. Righthore wilh you. NASDAQ: CBAN