Colony Bankcorp, Inc. · NYSE:CBAN
Colony Bankcorp — Investor Presentation (November 2019)
21 slides from Colony Bankcorp's investor presentation, Nov 1, 2019
Slide 1: Investor Presentation 3rd Quarter 2019
0 Investor Presentation 3 rd 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: Leadership Team
2 Name Position Years in Banking Years With CBAN 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 E
Slide 4: Company Profile
3 ▪ Founded in 1975 ▪ Headquartered in Fitzgerald, Georgia ▪ $1.5 billion in assets at September 30, 2019 ▪ 28 locations in central, southern and coastal Georgia ▪ The seventh largest Georgia - based bank in the state and the largest community bank headquartered outside of Atlanta ▪ Strong capital p
Slide 5: Strategic Advantages
4 ▪ Size and capabilities ▪ Attractive footprint ▪ Clean balance sheet ▪ No TARP overhang ▪ New, seasoned leadership with a proven track record STRATEGIC ADVANTAGES
Slide 6: Driving High Performance: Change the culture
5 DRIVING HIGH PERFORMANCE ▪ Change the culture ▪ Assess current talent ▪ Strengthen the team where needed ▪ Changes in executive and senior management ▪ Added talent to the production staff ▪ Initiate new procedures and processes ▪ Proactive business development ▪ Implement sales tracking program ▪
Slide 7: Driving High Performance: Reallocate our resources
6 DRIVING HIGH PERFORMANCE ▪ Change the culture ▪ Reallocate our resources ▪ Focus on loan and deposit opportunities ▪ Opportunities across the footprint ▪ Expansion ▪ Efficiency ▪ Realign balance sheet ▪ Low loan - to - deposit ratio ▪ High level of investments - to - assets
Slide 8: Driving High Performance: Attract new bankers
7 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 9: Driving High Performance: Reaccelerate expansion
8 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
Slide 10: Acquisition Activity
9 ACQUISITION ACTIVITY Overview Franchise Footprint ▪ Completed acquisition of LBC Bancshares on May 1 ▪ Holding company for Calumet Bank ▪ Natural expansion into logical, contiguous markets in western Georgia ▪ Added two branches located in LaGrange and Columbus, GA ▪ Projected to be immediately ac
Slide 11: Driving High Performance: Target line of business growth
10 DRIVING HIGH PERFORMANCE ▪ Reaccelerate expansion ▪ Target line of business growth ▪ Expand mortgage lending – acquired PFB Mortgage with more than $100 million in annual mortgage production in 2Q19 ▪ Government guaranteed lending (SBA, USDA) begun in 2Q19 ▪ Treasury services ▪ Consider new lines
Slide 12: Small Business Specialty Lending Group
11 SMALL BUSINESS SPECIALTY LENDING GROUP ▪ In July 2019, opened metro Atlanta office for Small Business Specialty Lending Group focused on Small Business Administration (SBA) lending and other government guaranteed loans ▪ 11 team members added, including three business development officers, led by
Slide 13: Mortgage Division
12 ▪ 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, with more than $100 million in annual mortgage production in 2019 ▪ Added originators in Albany, Athens, Macon and
Slide 14: Financial Highlights
13 2016 2017 2018 3Q2018 3Q2019 Diluted earnings per share $0.84 $0.87 $1.40 $0.32 $0.27 Non - GAAP earnings per share (1) $0.87 $1.12 $1.42 $0.34 $0.35 Dividends per share $0.00 $0.10 $0.20 $0.05 $0.075 Return on average assets 0.62% 0.63% 0.99% 0.91% 0.67% Return on average total equity 7.17% 8.28
Slide 15: Dividends Restored
14 ▪ 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, equ
Slide 16: Capital Ratios
15 10.3% 9.9% 10.2% 10.5% 9.0% 15.5% 14.6% 15.0% 15.0% 12.5% 16.6% 15.6% 15.9% 15.9% 13.2% 11.3% 11.8% 12.2% 12.2% 10.3% 2016 2017 2018 3Q2018 3Q2019 Tier One Leverage Ratio Tier One Ratio Total Risk-based Capital Ratio Common Equity Tier One Capital Ratio CAPITAL RATIOS
Slide 17: Solid Core Deposit Franchise
16 SOLID CORE DEPOSIT FRANCHISE Time Deposits 29% Savings and Money - markets 28% Noninterest - Bearing Demand 17% Interest - Bearing Demand 26% As of September 30, 2019 Total Deposits: $1.25 billion MRQ Cost of Deposits: 0.88%
Slide 18: Loan Portfolio Breakdown
17 LOAN PORTFOLIO BREAKDOWN Real estate 85% Commercial and agricultural 10% Consumer and other 5% Commercial construction 9% Residential construction 3% Commercial real estate 55% Residential real estate 24% Farmland 9% $958.7 million $817.7 million As of September 30, 2019
Slide 19: Loan Portfolio
18 $782.0 $780.0 $935.3 $958.7 $779.4 $763.6 $763.5 $796.0 $826.3 Total Loans Organic Loans LOAN PORTFOLIO 9/30/18 12/31/18 3/31/19 6/30/19 9/30/19 (Dollars in millions)
Slide 20: Reconciliation of Non-GAAP Measures
19 RECONCILIATION OF NON - GAAP MEASURES 2016 2017 2018 3Q18 3Q19 Total noninterest income $ 9,554 $ 9,735 $ 9,621 $ 2,405 $ 4,039 Securities gains (385) - (116) - (34) Realized (gains) losses on OREO property held for sale 648 121 (41) (4) 61 Adjusted noninterest income $ 9,817 $ 9,856 $ 9,464 $ 2,
Slide 21: Colony Bankcorp, Inc.
COLONY BANKCORP, INC. Righthore wil yo.
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