Colony Bankcorp, Inc. · NYSE:CBAN
Colony Bankcorp — Q1 2024 Earnings Presentation
37 slides from Colony Bankcorp's earnings presentation, Apr 25, 2024
Slide 1: Investor Presentation First Quarter 2024
INVESTOR PRESENTATION FIRST QUARTER 2024 1
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: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES 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 presen
Slide 4: Company Profile
COMPANY PROFILE • Georgia’s largest community bank, headquartered outside of Atlanta(1) • $3.0 billion in assets as of March 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 franchise (
Slide 5: 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 6: Mission, Way 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 7: Executive Leadership Team
EXECUTIVE LEADERSHIP TEAM Years In Years With Name Position Banking Colony Edward "Lee" Bagwell EVP, Chief Risk Officer and General Counsel 20 20 Leonard H. "Lenny" Bateman EVP, Chief Credit Officer 27 4 R. Dallis "D" Copeland, Jr. President 32 2 Kimberly Dockery EVP, Chief of Staff 17 5 T. Heath Fo
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: Complementary Lines of Business
COMPLEMENTARY LINES OF BUSINESS 1Q2023 2Q2023 3Q2023 4Q2023 1Q2024 Pre-tax Profit/ Pre-tax Profit/ Pre-tax Profit/ Pre-tax Profit/ Pre-tax Profit/ Loss Loss Loss Loss Loss (Dollars in thousands) Mortgage $ (432) $ 75 $ (263) $ 26 $ (13) SBSL 250 141 (351) 686 1,109 Marine/RV Lending (101) (20) 100 1
Slide 10: Small Business Specialty Lending Group
SMALL BUSINESS SPECIALTY LENDING GROUP Production and Sales Volume Loan Portfolio Breakdown - $94.6 million (Dollars in millions) $34.5 $35.6 Construction Commercial RE $26.0 $24.0 $24.0 7% 51.2% $19.6 $18.0 $14.6 $11.5 $11.1 Commercial, financial & agriculture 32.0% Residential RE 1Q2023 2Q2023 3Q2
Slide 11: Mortgage Division
MORTGAGE DIVISION (Dollars in millions) Production and Sales Volume $106.4 $78.4 $62.0 $66.4 $53.3 $50.1 $45.3 $40.1 $37.6 $36.6 1Q2023 2Q2023 3Q2023 4Q2023 1Q2024 Production Sales • Stable mortgage production relative to the continued market rate increases • Remain focused on secondary market produ
Slide 12: Innovation and Data Strategy
INNOVATION AND DATA STRATEGY • Improving the digital customer experience • Research and develop all potential technology-based opportunities • Increase customer wallet share through data gathering and analytics • Full implementation of Salesforce to influence a more complete customer relationship th
Slide 13: Quarterly Financial Highlights
QUARTERLY FINANCIAL HIGHLIGHTS 1Q2023 2Q2023 3Q2023 4Q2023 1Q2024 (dollars in millions, except per share data) Diluted earnings per share $ 0.29 $ 0.30 $ 0.33 $ 0.32 $ 0.30 Adjusted earnings per diluted share (1) 0.31 0.33 0.34 0.31 0.33 Dividends per share 0.1100 0.1100 0.1100 0.1100 0.1125 Return
Slide 14: Annual Financial Highlights
ANNUAL FINANCIAL HIGHLIGHTS 2019 2020 2021 2022 2023 (dollars in millions, except per share data) Diluted earnings per share $ 1.12 $ 1.24 $ 1.66 $ 1.14 $ 1.24 Dividends per share 0.30 0.40 0.41 0.43 0.44 Return on average assets 0.72 % 0.70 % 0.89 % 0.71 % 0.72 % Return on average total equity 8.72
Slide 15: 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 4.2%.(2) (1) The Board of Directors declared a dividend to be paid on its common stock on May 22
Slide 16: Capital Ratios
CAPITAL RATIOS 15.8% 15.4% 14.8% 14.9% 15.1% 12.7% 13.0% 12.1% 12.2% 12.5% 11.6% 11.9% 11.1% 11.4% 11.0% 8.9% 8.9% 8.9% 9.2% 9.2% 03/31/2023 06/30/2023 09/30/2023 12/31/2023 03/31/2024 Tier One Leverage Ratio Tier One Ratio Total Risk-based Capital Ratio Common Equity Tier One Capital Ratio 16
Slide 17: Strength in Our Liquidity Position
STRENGTH IN OUR LIQUIDITY POSITION Significant liquidity sources Debt Funding* As of March 31, 2024 (dollars in millions) (dollars in millions) FRB Reserves $ 66.6 $185.0 $175.0 $165.0 $155.0 $155.0 Other Cash and Due from Banks 26.7 Unencumbered Securities 469.2 FHLB Borrowing Capacity 605.9 Fed Fu
Slide 18: 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 19: Quarterly Noninterest Income Mix
QUARTERLY NONINTEREST INCOME MIX 100% 75% 50% 32% 33% 33% 34% 27% 25% 0% 1Q2023 2Q2023 3Q2023 4Q2023 1Q2024 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 19
Slide 20: 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 20
Slide 21: Quarterly Deposit Mix and Pricing
QUARTERLY DEPOSIT MIX AND PRICING 2.36% 2.25% 2.00% 1.70% 1.06% 1Q2023 2Q2023 3Q2023 4Q2023 1Q2024 Noninterest-bearing Interest-bearing Savings/money market Time Cost of interest-bearing deposits 21
Slide 22: Deposit Balance Data
DEPOSIT BALANCE DATA (Dollars in thousands) AVERAGE DEPOSIT BALANCE PER ACCOUNT $47.4 $47.7 $46.6 $47.9 $44.7 $31.1 $32.2 $32.9 $33.7 $35.0 $18.9 $18.2 $17.4 $18.8 $19.6 $15.3 $15.3 $14.1 $14.8 $14.0 1Q2023 2Q2023 3Q2023 4Q2023 1Q2024 Noninterest-bearing Interest-bearing Savings/money market Time •
Slide 23: Deposits by Region
DEPOSITS BY REGION (Dollars in thousands) Geographic Location 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Coastal Georgia $ 116,082 $ 133,536 $ 133,888 $ 137,398 $ 138,103 Middle Georgia 261,866 265,615 262,352 265,788 286,697 Atlanta and North 338,990 341,664 345,179 334,003 333,856 Georgia South Georg
Slide 24: Diversity of Business Deposit Base
DIVERSITY OF BUSINESS DEPOSIT BASE As of March 31, 2024 Construction 13.1% Public Administration All other, 2.4% 16.6% Educational Services 8.4% Transportation and Warehousing 1.7% Real Estate and Rental and Leasing Wholesale Trade, 1.9% 12.6% Accommodation and Food Services 1.7% Other Services(exce
Slide 25: Uninsured Deposits
UNINSURED DEPOSITS 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% Mar-23 Jun-23 Sep-23 Dec-23 Mar-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 March 31, 2024 $1,859.0 million $1,552.5 million Farmland 3.8% Nonowner occupied real Construction 15.1% estate 32.9% Agriculture 1.0% Real Estate Commercial 83.5% Residential real 11.9% estate 22.4% Consumer and Other Multifamily real 3.6% estate 4.2% Owner occupied r
Slide 27: Loan Portfolio
LOAN PORTFOLIO (Dollars in millions) Organic Loan Growth Weighted Average Loan to Values $1,800 $1,839 $1,865 $1,883 $1,859 73.1% 74.3% 70.6% 69.8% 72.4% 51.8% 51.6% 45.4% 45.0% 45.5% 1Q2023 2Q2023 3Q2023 4Q2023 1Q2024 03/31/2023 06/30/2023 09/30/2023 12/31/2023 03/31/2024 Residential Construction O
Slide 28: Office Portfolio Breakdown
OFFICE PORTFOLIO BREAKDOWN (dollars in millions) March 31, 2024 Offices by Number of Floors • Total loans secured by office buildings - $165.1 million • Owner-occupied (OO) - 51.6% • Non owner-occupied (NOO) - 48.4% One Story Offices $97.9 • Non-Recourse loans - $0 • Past dues 0.01% of total portfol
Slide 29: Classified and Criticized Loans
CLASSIFIED AND CRITICIZED LOANS (Dollars in thousands) CLASSIFIED LOANS 1Q2023 2Q2023 3Q2023 4Q2023 1Q2024 $ # $ # $ # $ # $ # Construction, land & land development $760 13 $570 12 $1,180 13 $1,063 14 $572 11 Commercial Real Estate 6,166 33 5,954 36 7,726 41 10,219 39 13,918 46 Residential Real Esta
Slide 30: Investment Securities
INVESTMENT SECURITIES (Dollars in thousands) Portfolio Composition March 31, 2024 Description Book Value Percentage U.S. Agency MBS/CMO $ 333,573 37 % Municipal 270,544 30 % Private Label MBS 103,052 11 % U.S. Treasuries 98,159 11 % Corporates 53,343 6% SBA and Asset-Backed Securities 24,958 3% U.S.
Slide 31: Investment Securities
INVESTMENT SECURITIES (Dollars in thousands) Private Label MBS March 31, 2024 Number of Unrealized Rating: Book Value Market Value Securities Loss AAA 25 $ 83,338 $ 72,866 $ (10,472) NR 12 19,714 19,488 (226) TOTAL 37 $ 103,052 $ 92,354 $ (10,698) Corporate Securities March 31, 2024 Type Book Value
Slide 32: Investment Securities
INVESTMENT SECURITIES Unrealized Losses on Securities (in millions) AFS/HTM 100% $64.3 $66.0 $55.8 $50.6 $49.3 $48.0 $48.3 $48.5 75% $45.0 $43.8 50% 25% —% 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 1Q 2023 2Q 2023 3Q 2023 4Q 2023 1Q 2024 Available for Sale HTM AFS HTM Other Portfolio Metrics As of: Av
Slide 33: Q1 2024 Investment Securities Sales
Q1 2024 INVESTMENT SECURITIES SALES • Sold securities with a fair value of $8.6 million • Transaction resulted in a loss on sale of $555 thousand • Combined book yield of 2.05% on sold securities • Conservative earnback estimates are approximately 2 years or less • Purpose of transaction was to rest
Slide 34: 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 35: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES (dollars in thousands, except per share data) 2024 2023 First Quarter Fourth Quarter Third Quarter Second Quarter First Quarter Operating noninterest income reconciliation Noninterest income (GAAP) $ 9,487 $ 9,305 $ 9,721 $ 8,952 $ 7,656 Gain on sale of bank premi
Slide 36: Reconciliation of Non-GAAP Measures
RECONCILIATION OF NON-GAAP MEASURES (dollars in thousands, except per share data) 2024 2023 First Quarter Fourth Quarter Third Quarter Second Quarter First Quarter Tangible book value per common share reconciliation Book value per common share (GAAP) $ 14.80 $ 14.51 $ 13.59 $ 13.65 $ 13.57 Effect of
Slide 37: Colony Bankcorp, Inc. - Right here with you
eS COLONY BANKCORP, INC. Right here with you. NASDAQ: CBAN