Declares Quarterly Cash Dividend of $0.1125 Per Share

Colony Bankcorp, Inc. (NASDAQ:CBAN) ("Colony" or the "Company") today reported financial results for the fourth quarter of 2023. Financial highlights are shown below.

Financial Highlights:

Net income decreased to $5.6 million, or $0.32 per diluted share, for the fourth quarter of 2023, compared to $5.8 million, or $0.33 per diluted share, for the third quarter of 2023, but saw a slight increase from the fourth quarter of 2022 with net income of $5.6 million, or $0.31 per diluted share.
Operating net income decreased to $5.4 million, or $0.31 of adjusted earnings per diluted share, for the fourth quarter of 2023, compared to $6.0 million, or $0.34 of adjusted earnings per diluted share, for the third quarter of 2023, and $5.6 million, or $0.31 of adjusted earnings per diluted share, for the fourth quarter of 2022. (See Reconciliation of Non-GAAP Measures).
Strong liquidity with available sources of funding of approximately $1.3 billion at December 31, 2023. No overnight borrowings utilized or Federal Reserve Bank Term Funding program used as of December 31, 2023.
Estimated uninsured deposits of $777.8 million, or 30.22% of total Bank deposits at December 31, 2023. Adjusted uninsured deposit estimate (excluding deposits collateralized by public funds or internal accounts) of $453.1 million, or 17.60% of total Bank deposits at December 31, 2023.
Provision for credit losses of $1.5 million was recorded in fourth quarter of 2023 compared to $1.0 million in third quarter of 2023, and $900,000 in fourth quarter of 2022.
Total loans were $1.88 billion at December 31, 2023, an increase of $18.5 million, or 0.99%, from the prior quarter.
Total deposits were $2.54 billion and $2.59 billion at December 31, 2023 and September 30, 2023, respectively, a decrease of $46.5 million.
Mortgage production was $45.3 million, and mortgage sales totaled $40.1 million in the fourth quarter of 2023 compared to $78.4 million and $53.3 million, respectively, for the third quarter of 2023.
Small Business Specialty Lending ("SBSL") closed $24.0 million in Small Business Administration ("SBA") loans and sold $18.0 million in SBA loans in the fourth quarter of 2023 compared to $34.5 million and $14.6 million, respectively, for the third quarter of 2023.

The Company also announced that on January 24, 2024, the Board of Directors declared a quarterly cash dividend of $0.1125 per share, to be paid on its common stock on February 21, 2024, to shareholders of record as of the close of business on February 7, 2024. The Company had 17,561,341 shares of its common stock outstanding as of January 23, 2024.

"We made significant progress in the fourth quarter and throughout the year in meeting many of our internal objectives, despite the challenging operating environment. While our earnings for this quarter were slightly lower than the previous quarter, we are proud to emphasize the resilience of our business amidst industry challenges and are confident in our ability to navigate dynamic market conditions successfully."

"Although there was an overall decline in total deposits during the fourth quarter, we successfully increased customer deposits by $8.6 million. The quarter-over-quarter reduction in total deposits is primarily attributed to the payoff of wholesale deposits. Additionally, this quarter we continued to see a slowdown in loan growth and expect a trend of moderate growth for the next few quarters," said Heath Fountain, Chief Executive Officer.

"We remain confident in the strength of our credit quality in the overall loan portfolio. During the quarter, a few loans faced downgrades and charge-offs, leading to increased provision expense. These represented a small number of loans and circumstances, and we have no concerns of systemic issues across our portfolio."

"Our team has adapted to the changing economic conditions over the past year, particularly in increasing noninterest income and lowering noninterest expense, and we believe we are in a position to make meaningful progress toward achieving our goals over the next several quarters."

Balance Sheet

Total assets were $3.05 billion at December 31, 2023, a decrease of $40.4 million from September 30, 2023.
Total loans, including loans held for sale, were at $1.91 billion at December 31, 2023, an increase of $19.2 million from the quarter ended September 30, 2023.
Total deposits were $2.54 billion and $2.59 billion at December 31, 2023 and September 30, 2023, respectively, a decrease of $46.5 million. Interest bearing demand deposits increased $18.6 million which was offset by decreases in savings and money market deposits of $20.9 million and time deposits of $49.0 million from September 30, 2023 to December 31, 2023.
Total borrowings at December 31, 2023 totaled $238.4 million, a decrease of $10.0 million or, 4.0%, compared to September 30, 2023 related to decreases in Federal Home Loan Bank advances.

Capital

Colony continues to maintain a strong capital position, with ratios that exceed regulatory minimums required to be considered as "well-capitalized."
Preliminary tier one leverage ratio, tier one capital ratio, total risk-based capital ratio and common equity tier one capital ratio were 9.17%, 12.74%, 15.44%, and 11.63%, respectively, at December 31, 2023.

Fourth Quarter and December 31, 2023 Year to Date Results of Operations

Net interest income, on a tax-equivalent basis, totaled $19.1 million for the fourth quarter ended December 31, 2023 compared to $21.5 million for the same period in 2022. Net interest income, on a tax-equivalent basis, for the twelve months ended December 31, 2023 totaled $79.0 million, compared to $81.1 million for the twelve months ended December 31, 2022. Increases can be seen in income on interest earning assets which is more than offset by increases in expenses on interest bearing liabilities due to the significant rise in interest rates period over period along with increases in FHLB advances. Income on interest earning assets increased $6.9 million, to $33.4 million for the fourth quarter of 2023 and $33.7 million, to $125.6 million for the twelve month period ended December 31, 2023, each compared to the respective period in 2022. Expense on interest bearing liabilities increased $9.3 million, to $14.3 million for the fourth quarter of 2023 and $35.8 million, to $46.7 million for the twelve month period ended December 31, 2023, each compared to the respective period in 2022.
Net interest margin for the fourth quarter of 2023 was 2.70% compared to 3.23% for the fourth quarter of 2022. Net interest margin was 2.83% for the twelve months ended December 31, 2023 compared to 3.20% for the twelve months ended December 31, 2022. The decrease for each period is the result of rate increases in interest bearing liabilities outpacing the rate increases in interest earning assets.
Noninterest income totaled $9.3 million for the fourth quarter ended December 31, 2023, an increase of $1.6 million, or 21.03%, compared to the same period in 2022. This increase was primarily related to increases in service charges on deposit accounts, gains on sales of SBA loans, insurance commissions, and equity investment income and income on wealth advisory services which are included in other noninterest income. Noninterest income totaled $35.6 million for the twelve months ended December 31, 2023, an increase of $610,000, or 1.74%, compared to the same period in 2022. This increase can be attributed to increases in service charges on deposit accounts, insurance commissions and equity investment income and income on wealth advisory services which are included in other noninterest income, which were partially offset by decreases in mortgage fee income and SBSL loan sales.
Noninterest expense totaled $19.6 million for the fourth quarter ended December 31, 2023, compared to $21.8 million for the same period in 2022. Noninterest expense totaled $83.1 million for the twelve months ended December 31, 2023, compared to $89.5 million for the same period in 2022. These decreases were a result of overall decreases in salaries and employee benefits related to lower commissions and bonus expenses as well as a decrease in data processing expense as a result of cost savings upon renewal of the core processing contract.

Asset Quality

Nonperforming assets totaled $10.7 million and $10.1 million at December 31, 2023 and September 30, 2023, respectively, an increase of $570,000.
Other real estate owned and repossessed assets totaled $448,000 at December 31, 2023 and $812,000 at September 30, 2023.
Net loans charged-off were $692,000, or 0.15% of average loans for the fourth quarter of 2023, compared to $698,000 or 0.15% for the third quarter of 2023.
The credit loss reserve was $18.4 million, or 0.98% of total loans, at December 31, 2023, compared to $17.4 million, or 0.93% of total loans at September 30, 2023.

Earnings call information

The Company will host an earnings conference call at 9:00 a.m. ET on Thursday, January 25, 2024, to discuss the recent results and answer appropriate questions. The conference call can be accessed by dialing 1-888-259-6580 (or 1-416-764-8624 for international participants). The conference call access code is 13175412. A replay of the call will be available until Thursday, February 1, 2024. To listen to the replay, dial 1-877-674-7070 and enter the access code 175412#.

About Colony Bankcorp

Colony Bankcorp, Inc. is the bank holding company for Colony Bank. Founded in Fitzgerald, Georgia in 1975, Colony operates locations throughout Georgia and has expanded to serve Birmingham, Alabama, as well as Tallahassee and the Florida Panhandle. At Colony Bank, we offer a range of banking solutions for personal and business customers. In addition to traditional banking services, Colony provides specialized solutions including mortgage, government guaranteed lending, consumer insurance, wealth management, and merchant services. Colony's common stock is traded on the NASDAQ Global Market under the symbol "CBAN." For more information, please visit www.colony.bank. You can also follow the Company on social media.

Forward-Looking Statements

Certain statements contained in this press release that are not statements of historical fact constitute "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 Company's future filings with the SEC, in press releases, and in oral and written statements made by or with the approval of the Company that are not statements of historical fact and constitute "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. Examples of forward-looking statements include, but are not limited to: (i) projections and/or expectations of revenues, income or loss, earnings or loss per share, the payment or nonpayment of dividends, capital structure and other financial items; (ii) statement of plans and objectives of Colony Bankcorp, Inc. or its management or Board of Directors, including those relating to products or services; (iii) statements of future economic performance; (iv) statements regarding growth strategy, capital management, liquidity and funding, and future profitability; and (v) statements of assumptions underlying such statements. Words such as "may," "will," "anticipate," "assume," "should," "support," "indicate," "would," "believe," "contemplate," "expect," "estimate," "continue," "further," "plan," "point to," "project," "could," "intend," "target" and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements.

Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties. Factors that might cause such differences include, but are not limited to: the impact of current and economic conditions, particularly those affecting the financial services industry, including the effects of declines in the real estate market, high unemployment rates, inflationary pressures, elevated interest rates and slowdowns in economic growth, as well as the financial stress on borrowers as a result of the foregoing; the risk of potential reductions in benchmark interest rates and the resulting impacts on net interest income; potential impacts of adverse developments in the banking industry highlighted by high-profile bank failures, including impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto; risks arising from media coverage of the banking industry; risks arising from perceived instability in the banking sector; the risks of changes in interest rates and their effects on the level, cost, and composition of, and competition for, deposits, loan demand and timing of payments, the values of loan collateral, securities, and interest sensitive assets and liabilities; the ability to attract new or retain existing deposits, to retain or grow loans or additional interest and fee income, or to control noninterest expense; the effect of pricing pressures on the Company's net interest margin; the failure of assumptions underlying the establishment of reserves for possible credit losses, fair value for loans and other real estate owned; changes in real estate values; the Company's ability to implement its various strategic and growth initiatives; increased competition in the financial services industry, particularly from regional and national institutions, as well as from fintech companies; economic conditions, either nationally or locally, in areas in which the Company conducts operations being less favorable than expected; changes in the prices, values and sales volumes of residential and commercial real estate; developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance; legislation or regulatory changes which adversely affect the ability of the consolidated Company to conduct business combinations or new operations; adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions, including as a result of the Company's participation in and execution of government programs; significant turbulence or a disruption in the capital or financial markets and the effect of a fall in the stock market prices on our investment securities; the effects of war or other conflicts including the impacts related to or resulting from Russia's military action in Ukraine or the conflict in Israel and surrounding areas; risks related to the Company's recently completed acquisitions, including that the anticipated benefits from the recently completed acquisitions are not realized in the time frame anticipated or at all as a result of changes in general economic and market conditions or other unexpected factors or events; the risks associated with the Company's pursuit of future acquisitions; the impact of generative artificial intelligence; fraud or misconduct by internal or external actors, and system failures, cybersecurity threats or security breaches and the cost of defending against them; a deterioration of the credit rating for U.S. long-term sovereign debt, actions that the U.S. government may take to avoid exceeding the debt ceiling, and uncertainties surrounding debt ceiling and the federal budget; a potential U.S. federal government shutdown and the resulting impacts; and general competitive, economic, political and market conditions or other unexpected factors or events. These and other factors, risks and uncertainties could cause the actual results, performance or achievements of the Company to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. Many of these factors are beyond the Company's ability to control or predict.

Forward-looking statements speak only as of the date on which such statements are made. These forward-looking statements are based upon information presently known to the Company's management and are inherently subjective, uncertain and subject to change due to any number of risks and uncertainties, including, without limitation, the risks and other factors set forth in the Company's filings with the Securities and Exchange Commission, the Company's Annual Report on Form 10-K for the year ended December 31, 2022, under the captions "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors," and in the Company's quarterly reports on Form 10-Q and current reports on Form 8-K. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events. Readers are cautioned not to place undue reliance on these forward-looking statements.

Explanation of Certain Unaudited Non-GAAP Financial Measures

The measures entitled operating noninterest income, operating noninterest expense, operating net income, adjusted earnings per diluted share, tangible book value per common share, tangible equity to tangible assets, operating efficiency ratio, operating net noninterest expense to average assets and pre-provision net revenue are not measures recognized under U.S. generally accepted accounting principles (GAAP) and therefore are considered non-GAAP financial measures. The most comparable GAAP measures are noninterest income, noninterest expense, net income, diluted earnings per share, book value per common share, total equity to total assets, efficiency ratio, net noninterest expense to average assets and net interest income before provision for credit losses, respectively. Operating noninterest income excludes gain on sale of bank premises. Operating noninterest expense excludes acquisition-related expenses and severance costs. Operating net income and operating efficiency ratio both exclude acquisition-related expenses, severance costs and FHLB mark from called borrowings from net income and efficiency ratio, respectively. Operating net noninterest expense to average assets ratio excludes from net noninterest expense, severance costs, acquisition-related expenses and gain on sale of bank premises. Acquisition-related expenses includes fees associated with acquisitions and vendor contract buyouts. Severance costs includes costs associated with termination and retirement of employees. Adjusted earnings per diluted share includes the adjustments to operating net income. Tangible book value per common share and tangible equity to tangible assets exclude goodwill and other intangibles from book value per common share and total equity to total assets, respectively. Pre-provision net revenue is calculated by adding noninterest income to net interest income before provision for credit losses, and subtracting noninterest expense.

Management uses these non-GAAP financial measures in its analysis of the Company's performance and believes these presentations provide useful supplemental information, and a clearer understanding of the Company's performance, and if not provided would be requested by the investor community. The Company believes the non-GAAP measures enhance investors' understanding of the Company's business and performance. These measures are also useful in understanding performance trends and facilitate comparisons with the performance of other financial institutions. The limitations associated with operating measures are the risk that persons might disagree as to the appropriateness of items comprising these measures and that different companies might calculate these measures differently.

These disclosures should not be considered an alternative to GAAP. The computations of operating noninterest income, operating noninterest expense, operating net income, adjusted earnings per diluted share, tangible book value per common share, tangible equity to tangible assets, operating efficiency ratio, operating net noninterest expense to average assets and pre-provision net revenue and the reconciliation of these measures to noninterest income, noninterest expense, net income, diluted earnings per share, book value per common share, total equity to total assets, efficiency ratio, net noninterest expense to average assets and net interest income before provision for credit losses are set forth in the table below.




Colony Bankcorp, Inc.
Reconciliation of Non-GAAP Measures
	2023												2022
(dollars in thousands, except per share data)	Fourth Quarter			Third Quarter			Second Quarter			First Quarter			Fourth Quarter
Operating noninterest income reconciliation
Noninterest income (GAAP)	$	9,305		$	9,718		$	8,952		$	7,659		$	7,688
Gain on sale of bank premises		(236	)		—			(125	)		—			—
Operating noninterest income	$	9,069		$	9,718		$	8,827		$	7,659		$	7,688

Operating noninterest expense reconciliation
Noninterest expense (GAAP)	$	19,589		$	20,881		$	21,432		$	21,165		$	21,826
Severance costs		—			(220	)		(635	)		(431	)		—
Acquisition-related expenses		—			—			—			(161	)		—
Operating noninterest expense	$	19,589		$	20,661		$	20,797		$	20,573		$	21,826

Operating net income reconciliation
Net income (GAAP)	$	5,598		$	5,804		$	5,302		$	5,043		$	5,551
Severance costs		—			220			635			431			—
Acquisition-related expenses		—			—			—			161			—
Gain on sale of bank premises		(236	)		—			(125	)		—			—
Income tax benefit		52			(48	)		(93	)		(107	)		—
Operating net income	$	5,414		$	5,976		$	5,719		$	5,528		$	5,551
Weighted average diluted shares		17,567,839			17,569,493			17,580,557			17,595,688			17,630,971
Adjusted earnings per diluted share	$	0.31		$	0.34		$	0.33		$	0.31		$	0.31

Tangible book value per common share reconciliation
Book value per common share (GAAP)	$	14.51		$	13.59		$	13.65		$	13.57		$	13.08
Effect of goodwill and other intangibles		(3.02	)		(3.04	)		(3.07	)		(3.08	)		(3.10	)
Tangible book value per common share	$	11.49		$	10.55		$	10.58		$	10.49		$	9.98

Tangible equity to tangible assets reconciliation
Equity to assets (GAAP)		8.35	%		7.72	%		7.72	%		7.97	%		7.84	%
Effect of goodwill and other intangibles		(1.62	)		(1.63	)		(1.63	)		(1.70	)		(1.74	)
Tangible equity to tangible assets		6.73	%		6.09	%		6.09	%		6.27	%		6.10	%

Operating efficiency ratio calculation
Efficiency ratio (GAAP)		69.51	%		71.17	%		76.18	%		74.98	%		75.03	%
Severance costs		—			(0.75	)		(2.26	)		(1.53	)		—
Acquisition-related expenses		—			—			—			(0.57	)		—
Gain on sale of bank premises		0.84			—			0.44			—			—
Operating efficiency ratio		70.35	%		70.42	%		74.36	%		72.88	%		75.03	%

Operating net noninterest expense⁽¹⁾ to average assets calculation
Net noninterest expense to average assets		1.35	%		1.45	%		1.65	%		1.86	%		1.96	%
Severance Costs		—			(0.03	)		(0.09	)		(0.06	)		—
Acquisition-related expenses		—			—			—			(0.02	)		—
Gain on Sale of bank premises		0.03			—			0.02			—			—
Operating net noninterest expense to average assets		1.38	%		1.42	%		1.58	%		1.78	%		1.96	%

Pre-provision net revenue
Net interest income before provision for credit losses	$	18,876		$	19,621		$	19,181		$	20,568		$	21,400
Noninterest income		9,305			9,718			8,952			7,659			7,688
Total income		28,181			29,339			28,133			28,227			29,088
Noninterest expense		19,589			20,881			21,432			21,165			21,826
Pre-provision net revenue	$	8,593		$	8,458		$	6,701		$	7,062		$	7,262
⁽¹⁾ Net noninterest expense is defined as noninterest expense less noninterest income.





Colony Bankcorp, Inc.
Selected Financial Information
	2023												2022
(dollars in thousands, except per share data)	Fourth Quarter			Third Quarter			Second Quarter			First Quarter			Fourth Quarter
EARNINGS SUMMARY
Net interest income	$	18,876		$	19,621		$	19,181		$	20,568		$	21,400
Provision for credit losses		1,500			1,000			200			900			900
Noninterest income		9,305			9,718			8,952			7,659			7,688
Noninterest expense		19,589			20,881			21,432			21,165			21,826
Income taxes		1,494			1,654			1,199			1,119			811
Net income	$	5,598		$	5,804		$	5,302		$	5,043		$	5,551
PERFORMANCE MEASURES
Per common share:
Common shares outstanding		17,564,182			17,567,983			17,541,661			17,593,879			17,598,123
Weighted average basic shares		17,567,839			17,569,493			17,580,557			17,595,688			17,630,971
Weighted average diluted shares		17,567,839			17,569,493			17,580,557			17,595,688			17,630,971
Earnings per basic share	$	0.32		$	0.33		$	0.30		$	0.29		$	0.31
Earnings per diluted share		0.32			0.33			0.30			0.29			0.31
Adjusted earnings per diluted share^(b)		0.31			0.34			0.33			0.31			0.31
Cash dividends declared per share		0.11			0.11			0.11			0.11			0.1075
Common book value per share		14.51			13.59			13.65			13.57			13.08
Tangible book value per common share^(b)		11.49			10.55			10.58			10.49			9.98
Pre-provision net revenue^(b)	$	8,593		$	8,458		$	6,701		$	7,062		$	7,262
Performance ratios:
Net interest margin^(a)		2.70	%		2.78	%		2.77	%		3.08	%		3.23	%
Return on average assets		0.73			0.75			0.70			0.69			0.77
Return on average total equity		9.20			9.61			8.88			8.73			9.76
Efficiency ratio		69.51			71.17			76.18			74.98			75.03
Operating efficiency ratio ^(b)		70.35			70.42			74.36			72.88			75.03
Net noninterest expense to average assets		1.35			1.45			1.65			1.86			1.96
Operating net noninterest expense to average assets^(b)		1.38			1.42			1.58			1.78			1.96
ASSET QUALITY
Nonperforming portfolio loans	$	7,804		$	5,625		$	6,716		$	5,636		$	5,693
Nonperforming government guaranteed loans		2,035			3,641			4,369			1,529			17
Loans 90 days past due and still accruing		370			9			—			—			—
Total nonperforming loans (NPLs)		10,209			9,275			11,085			7,165			5,710
Other real estate owned		448			812			792			651			651
Total nonperforming assets (NPAs)		10,657			10,087			11,877			7,816			6,361
Classified loans		23,754			20,704			19,267			18,747			15,105
Criticized loans		56,879			50,741			48,074			43,281			41,293
Net loan charge-offs (recoveries)		692			698			(37	)		237			(46	)
Allowance for credit losses to total loans		0.98	%		0.93	%		0.93	%		0.92	%		0.93	%
Allowance for credit losses to total NPLs		179.95			187.26			153.96			231.67			282.45
Allowance for credit losses to total NPAs		172.38			172.18			143.69			212.37			253.55
Net charge-offs (recoveries) to average loans, net		0.15			0.15			(0.01	)		0.05			(0.01	)
NPLs to total loans		0.54			0.50			0.60			0.40			0.33
NPAs to total assets		0.35			0.33			0.38			0.26			0.22
NPAs to total loans and foreclosed assets		0.57			0.54			0.65			0.43			0.37

AVERAGE BALANCES
Total assets	$	3,027,812		$	3,058,485		$	3,030,044		$	2,949,986		$	2,863,046
Loans, net		1,860,652			1,854,367			1,814,172			1,765,845			1,637,034
Loans, held for sale		21,251			29,444			21,237			14,007			22,644
Deposits		2,538,500			2,565,026			2,524,949			2,473,464			2,460,664
Total stockholders' equity		241,392			239,571			239,579			234,147			225,639
(a) Computed using fully taxable-equivalent net income.
(b) Non-GAAP measure - see "Explanation of Certain Unaudited Non-GAAP Financial Measures" for more information and reconciliation to GAAP.





Colony Bankcorp, Inc.
Average Balance Sheet and Net Interest Analysis

	Three Months Ended December 31,
	2023						2022
(dollars in thousands)	Average Balances		Income/ Expense		Yields/ Rates		Average Balances		Income/ Expense		Yields/ Rates
Assets
Interest-earning assets:
Loans, net of unearned income ¹	$	1,899,413	$	27,069	5.65	%	$	1,675,324	$	20,320	4.81	%
Investment securities, taxable		743,308		5,221	2.79	%		797,403		5,160	2.57	%
Investment securities, tax-exempt ²		103,418		607	2.33	%		104,853		567	2.15	%
Deposits in banks and short term investments		51,874		489	3.74	%		63,320		450	2.82	%
Total interest-earning assets		2,798,013		33,386	4.73	%		2,640,900		26,497	3.98	%
Noninterest-earning assets		229,800						222,146
Total assets	$	3,027,812					$	2,863,046
Liabilities and stockholders' equity
Interest-bearing liabilities:
Interest-bearing demand and savings	$	1,396,932	$	5,632	1.60	%	$	1,458,051	$	1,706	0.46	%
Other time		643,841		5,939	3.66	%		438,599		1,496	1.35	%
Total interest-bearing deposits		2,040,773		11,571	2.25	%		1,896,650		3,202	0.67	%
Federal funds purchased		53		1	6.28	%		2,878		32	4.34	%
Federal Home Loan Bank advances		158,913		1,624	4.06	%		90,978		818	3.57	%
Other borrowings		72,508		1,134	6.20	%		68,295		930	5.40	%
Total other interest-bearing liabilities		231,474		2,759	4.73	%		162,151		1,780	4.35	%
Total interest-bearing liabilities		2,272,247		14,330	2.50	%		2,058,801		4,982	0.96	%
Noninterest-bearing liabilities:
Demand deposits		497,727					$	564,014
Other liabilities		16,446						14,592
Stockholders' equity		241,392						225,639
Total noninterest-bearing liabilities and stockholders' equity		755,565						804,245
Total liabilities and stockholders' equity	$	3,027,812					$	2,863,046
Interest rate spread					2.23	%					3.02	%
Net interest income			$	19,056					$	21,515
Net interest margin					2.70	%					3.23	%
_______________________________
¹ The average balance of loans includes the average balance of nonaccrual loans. Income on such loans is recognized and recorded on the cash basis. Taxable-equivalent adjustments totaling $54,000 and $35,000 for the quarters ended December 31, 2023 and 2022, respectively, are calculated using the statutory federal tax rate and are included in income and fees on loans. Accretion income of $5,000 and $40,000 for the quarters ended December 31, 2023 and 2022 are also included in income and fees on loans.
² Taxable-equivalent adjustments totaling $127,000 and $79,000 for the quarters ended December 31, 2023 and 2022, respectively, are calculated using the statutory federal tax rate and are included in tax-exempt interest on investment securities.





Colony Bankcorp, Inc.
Average Balance Sheet and Net Interest Analysis

	Twelve months ended December 31,
	2023						2022
(dollars in thousands)	Average Balances		Income/ Expense		Yields/ Rates		Average Balances		Income/ Expense		Yields/ Rates
Assets
Interest-earning assets:
Loans, net of unearned income³	$	1,850,043	$	99,472	5.38	%	$	1,505,792	$	70,903	4.71	%
Investment securities, taxable		770,707		21,388	2.78	%		827,388		17,954	2.17	%
Investment securities, tax-exempt⁴		105,797		2,444	2.31	%		109,122		2,247	2.06	%
Deposits in banks and short term investments		63,806		2,341	3.67	%		91,825		887	0.97	%
Total interest-earning assets		2,790,353		125,645	4.50	%		2,534,127		91,991	3.63	%
Noninterest-earning assets		226,198						215,723
Total assets	$	3,016,551					$	2,749,850
Liabilities and stockholders' equity
Interest-bearing liabilities:
Interest-bearing demand and savings	$	1,390,247	$	15,833	1.14	%	$	1,439,234	$	3,047	0.21	%
Other time		619,083		19,632	3.17	%		370,375		2,829	0.76	%
Total interest-bearing deposits		2,009,330		35,465	1.76	%		1,809,609		5,876	0.32	%
Federal funds purchased		2,783		147	5.29	%		2,835		54	1.89	%
Federal Home Loan Bank advances ⁵		160,548		6,763	4.21	%		71,690		2,564	3.58	%
Other borrowings		70,807		4,298	6.07	%		52,872		2,371	4.48	%
Total other interest-bearing liabilities		234,138		11,208	4.79	%		127,397		4,989	3.92	%
Total interest-bearing liabilities		2,243,468		46,673	2.08	%		1,937,006		10,865	0.56	%
Noninterest-bearing liabilities:
Demand deposits	$	519,225					$	564,322
Other liabilities		14,947						12,173
Stockholders' equity		238,911						236,349
Total noninterest-bearing liabilities and stockholders' equity		773,083						812,844
Total liabilities and stockholders' equity	$	3,016,551					$	2,749,850
Interest rate spread					2.42	%					3.07	%
Net interest income			$	78,972					$	81,126
Net interest margin					2.83	%					3.20	%
_______________________________
³ The average balance of loans includes the average balance of nonaccrual loans. Income on such loans is recognized and recorded on the cash basis. Taxable-equivalent adjustments totaling $216,000 and $139,000 for the twelve months ended December 31, 2023 and 2022, respectively, are calculated using the statutory federal tax rate and are included in income and fees on loans. Accretion income of $165,000 and $590,000 for the twelve months ended December 31, 2023 and 2022 are also included in income and fees on loans.
⁴ Taxable-equivalent adjustments totaling $513,000 and $315,000 for the twelve months ended December 31, 2023 and 2022, respectively, are calculated using the statutory federal tax rate and are included in tax-exempt interest on investment securities.
⁵ Federal Home Loan Bank advances interest expense includes $751,000 for the twelve months ended December 31, 2022 and is the recognized mark on two advances that were acquired in the SouthCrest acquisition that were called early.





Colony Bankcorp, Inc.
Segment Reporting
	2023										2022
(dollars in thousands)	Fourth Quarter		Third Quarter			Second Quarter		First Quarter			Fourth Quarter
Banking Division
Net interest income	$	17,988	$	18,778		$	18,562	$	20,141		$	21,037
Provision for credit losses		979		286			60		900			900
Noninterest income		5,992		6,233			5,433		4,915			4,312
Noninterest expenses		16,621		16,653			17,650		17,812			18,038
Income taxes		1,365		1,777			1,157		1,155			837
Segment income	$	5,015	$	6,295		$	5,128	$	5,189		$	5,574

Total segment assets	$	2,956,121	$	2,999,071		$	3,013,689	$	2,930,421		$	2,857,893

Full time employees		378		382			383		407			427

Mortgage Banking Division
Net interest income	$	23	$	52		$	31	$	3		$	(43	)
Provision for credit losses		—		—			—		—			—
Noninterest income		1,206		1,725			2,015		1,277			1,637
Noninterest expenses		1,203		2,040			1,971		1,712			1,936
Income taxes		8		(53	)		14		(86	)		(6	)
Segment income	$	18	$	(210	)	$	61	$	(346	)	$	(336	)

Total segment assets	$	7,890	$	9,991		$	15,984	$	7,895		$	18,221

Variable noninterest expense⁽¹⁾	$	597	$	1,245		$	1,149	$	890		$	1,193
Fixed noninterest expense		606		795			822		822			743

Full time employees		42		45			51		59			65

Small Business Specialty Lending Division
Net interest income	$	865	$	791		$	588	$	427		$	406
Provision for credit losses		521		714			140		—			—
Noninterest income		2,107		1,760			1,504		1,464			1,739
Noninterest expenses		1,765		2,188			1,811		1,641			1,852
Income taxes		121		(70	)		28		50			(20	)
Segment income	$	565	$	(281	)	$	113	$	200		$	313

Total segment assets	$	89,411	$	84,761		$	71,398	$	58,625		$	60,456

Full time employees		33		33			32		30			30

Total Consolidated
Net interest income	$	18,876	$	19,621		$	19,181	$	20,571		$	21,400
Provision for credit losses		1,500		1,000			200		900			900
Noninterest income		9,305		9,718			8,952		7,656			7,688
Noninterest expenses		19,589		20,881			21,432		21,165			21,826
Income taxes