Colony Bankcorp Reports First Quarter 2022 Results and New Cost Initiative

Declares Quarterly Cash Dividend of $0.1075 Per Share

FITZGERALD, Ga.--(BUSINESS WIRE)--Colony Bankcorp, Inc. (Nasdaq: CBAN) (“Colony” or the “Company”) today reported financial results for the first quarter of 2022. Financial highlights are shown below.

Financial Highlights:

• Net income increased to $5.3 million, or $0.34 per diluted share, for the first quarter of 2022, compared to net income for the fourth quarter of 2021 of $4.2 million, or $0.30 per diluted share, and $4.9 million, or $0.52 per diluted share, for the first quarter of 2021.
• Operating net income of $5.8 million, or $0.37 per diluted share, for the first quarter of 2022 as compared to $5.5 million, or $0.40 per diluted share, for the fourth quarter of 2021, and $5.0 million, or $0.53 per diluted share, for the first quarter of 2021 (see Reconciliation of Non-GAAP Measures).
• $50,000 in provision for loan losses was recorded in first quarter of 2022.
• Total loans, excluding loans held for sale and loans that originated under the Paycheck Protection Program (the “PPP”), totaled $1.4 billion at March 31, 2022, an increase of $24.2 million, or 1.8% from the prior quarter.
• The Company announced a cost efficiency initiative that is expected to save $3.0 million per year starting in late third quarter 2022.
• Mortgage production was $97.2 million, with $23.9 million in refinances, and $70.0 million in purchases in the first quarter of 2022.
• Small Business Specialty Lending (“SBSL”) closed $5.8 million in Small Business Administration (“SBA”) loans and sold $13.5 million in SBA loans in the first quarter of 2022.
• In February of 2022, the Company issued and sold approximately 3.85 million shares of its common stock in an underwritten public offering, with aggregate proceeds totaling approximately $63.5 million and net proceeds totaling approximately $59.3 million.

The Company also announced that on April 21, 2022, the Board of Directors declared a quarterly cash dividend of $0.1075 per share, to be paid on its common stock on May 20, 2022, to shareholders of record as of the close of business on May 6, 2022. The Company had 17,586,333 shares of its common stock outstanding as of April 20, 2022.

Commenting on the announcement, Heath Fountain, President and Chief Executive Officer, said, “We are happy to kick off 2022 with a successful first quarter, and we are also excited to partner with the new investors and existing shareholders that participated in our capital raise. The resulting increase in common equity continues to strengthen our ability to take advantage of the myriad of opportunities available to Colony.

“I am proud of the way our team handled the truly unprecedented changes in interest rates during the quarter. For Colony, the impacts of the volatility were primarily experienced in unrealized losses in securities driving a lower tangible book value per share and in lower mortgage revenues. Even during this volatility, our lending team was able to grow loan balances (excluding PPP forgiveness) at an over 7% annualized rate during the quarter. We remain comfortable with our expectations of 8-12% loan growth for 2022.

“Today, we are also announcing a new efficiency initiative. Our plan is to reduce our banking division workforce by 24 team members, or 6% of total workforce, which includes closing two branches (Soperton and Luthersville) subject to customary regulatory approvals. This effort will save approximately $3.0 million per year when completed (which is currently expected to be late in the third quarter of 2022), and we are projecting $2.0 million of expenses related to this initiative to be recognized in second quarter of 2022. We are targeting a bank level efficiency ratio of 60% over the next three years, and this will push us further down that road.

“We still have significant opportunities to grow earnings at Colony through merger activity, market dislocation due to other acquisitions, ancillary business line acquisition and additional production hires. We continue to optimize the existing platform to take advantage of these opportunities, and expect to continue our growth as Georgia’s pre-eminent community bank.

“We recently announced that our CFO, Tracie Youngblood is leaving the Company. I would like to personally thank Ms. Youngblood for her contributions to our success during her tenure. We could not have made the progress we have without her efforts. Further, I look forward to the contributions our new CFO, Andy Borrmann will make in his new role. During his brief tenure with us, he has demonstrated an ability to add significant value to the execution of our strategy. His significant experience and results focused mindset will benefit our team and our shareholders.”

Balance Sheet

• Total assets were $2.7 billion at March 31, 2022, a slight decrease from December 31, 2021.
• Total loans, including loans held for sale, were at $1.38 billion at March 31, 2022, a slight increase of $2.1 million for the quarter from quarter ended December 31, 2021.
• Total deposits were $2.4 billion at March 31, 2022 and December 31, 2021.
• Total borrowings at March 31, 2022 totaled $75.9 million, a decrease of $12.5 million or, 14.1%, compared to December 31, 2021.

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 9.47%, 14.65%, 15.40%, and 13.29%, respectively, at March 31, 2022.

First Quarter Results of Operations

• Net interest income, on a tax-equivalent basis, for the first quarter of 2022 totaled $19.3 million, compared to $14.4 million for the first quarter 2021. The increase during the quarter is primarily attributable to interest income related to loans acquired in the acquisition of SouthCrest Financial Group, Inc. (“SouthCrest”) in August of 2021.
• Net interest margin decreased 37 basis points from first quarter 2021, but only decreased three basis points from fourth quarter 2021.
• Noninterest income totaled $9.2 million for the first quarter ended March 31, 2022, an increase of $576,000, or 6.7%, compared to the same period in 2021. The increase was primarily attributable to SBSL loan sales, SouthCrest and insurance company acquisitions, growth in interchange fee income and service charges on deposits offset by decrease in mortgage fee income.
• Noninterest expense totaled $21.8 million for the first quarter ended March 31, 2022, compared to $15.8 million for the same period in 2021. The increase in noninterest expense primarily resulted from a $3.3 million increase in salaries and benefits expense, $1.1 million in information technology expenses and professional fees, as well as $448,000 increase in acquisition related expenses primarily due to the amortization of intangibles related to prior acquisitions.

Asset Quality

• Nonperforming assets totaled $6.5 million and $5.8 million at March 31, 2022 and December 31, 2021, respectively, an increase of $686,000.
• OREO and repossessed assets totaled $294,000 at March 31, 2022, a decrease of $36,000, or 11% compared to the previous quarter.
• Net loans charged-off were $41,000, or 0.01% of average loans for the first quarter of 2022, compared to net recoveries of $17,000 or (0.01)% for the fourth quarter of 2021.
• The loan loss reserve was $12.9 million, or 0.95% of total loans, at March 31, 2022, compared to $12.9 million, or 0.96% of total loans, at December 31 2021.

As noted above and in the table on page 7, overall asset quality remains strong.

Earnings call information

The Company will host a teleconference at 9:00 a.m. EDT on Friday, April 22, 2022, to discuss the recent results and answer appropriate questions. The conference call can be accessed by dialing 1-844-200-6205 (or 1-929-526-1599 for international participants). The conference call access code is 583813. A replay of the call will be available until Friday, April 29, 2022. To listen to the replay, dial 1-866-813-9403 and enter the access code 904958.

About Colony Bankcorp

Colony Bankcorp, Inc. is the bank holding company for Colony Bank. Founded in 1975 and headquartered in Fitzgerald, Georgia, Colony operates 41 locations throughout Georgia. At Colony Bank, we offer a wide range of banking services including personal banking, business banking, mortgage solutions, government guaranteed lending solutions, and more. We have expanded our services to also include consumer insurance products, such as automotive, homeowners, and other insurance needs for our community. 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; (v) statements regarding the effects of the COVID-19 pandemic and related variants on the Company’s business and financial results and conditions; and (vi) statements of assumptions underlying such statements. Words such as “believes,” “anticipates,” “expects,” “intends,” “targeted” 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 continued impact of the COVID-19 pandemic and related variants on the Company’s assets, business, cash flows, financial condition, liquidity, prospects and results of operations; the Company’s ability to implement its various strategic and growth initiatives; competitive pressures among financial institutions increasing significantly; economic conditions, either nationally or locally, in areas in which the Company conducts operations being less favorable than expected; interest rate risk; 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 related to the COVID-19 pandemic and related variants; higher inflation and its impacts; the effects of war or other conflicts including the impacts related to or resulting from Russia’s military action in Ukraine; 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; 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, 2021, 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 net income, adjusted earnings per diluted share, tangible book value per common share, tangible equity to tangible assets, and operating efficiency ratio 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 net income, diluted earnings per share, book value per common share, total equity to total assets, and efficiency ratio, respectively. Operating net income and operating efficiency ratio both exclude acquisition-related expenses. Acquisition-related expenses include fees associated with current period acquisitions and ongoing amortization of intangibles related to prior acquisitions. 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.

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 net income, adjusted earnings per diluted share, tangible book value per common share, tangible equity to tangible assets, and operating efficiency ratio and the reconciliation of these measures to net income, diluted earnings per share, book value per common share, total equity to total assets, and efficiency ratio, are set forth in the table below.

Colony Bankcorp, Inc.
Reconciliation of Non-GAAP Measures
	2022			2021
(dollars in thousands, except per share data)	First Quarter			Fourth Quarter			Third Quarter			Second Quarter			First Quarter
Operating net income reconciliation
Net income (GAAP)	$	5,324		$	4,160		$	5,583		$	3,997		$	4,919
Acquisition-related expenses		624			1,592			1,994			865			176
Writedown of bank premises		—			90			—			—			—
Income tax expense (benefit)		(119	)		(353	)		(518	)		(225	)		(46	)
Operating net income	$	5,830		$	5,489		$	7,059		$	4,637		$	5,049
Weighted average diluted shares		15,877,695			13,673,998			12,344,926			9,498,783			9,498,783
Adjusted earnings per diluted share	$	0.37		$	0.40		$	0.57		$	0.49		$	0.53
Tangible book value per common share reconciliation
Book value per common share (GAAP)	$	14.23		$	15.92		$	15.88		$	15.46		$	15.11
Effect of goodwill and other intangibles		(3.40	)		(4.51	)		(4.46	)		(1.89	)		(1.97	)
Tangible book value per common share	$	10.83		$	11.41		$	11.42		$	13.57		$	13.14
Tangible equity to tangible assets reconciliation
Equity to assets (GAAP)		9.32	%		8.09	%		8.64	%		8.37	%		7.98	%
Effect of goodwill and other intangibles		(2.07	) %		(2.15	) %		(2.27	) %		(0.99	) %		(0.97	) %
Tangible equity to tangible assets		7.25	%		5.93	%		6.37	%		7.38	%		7.01	%
Operating efficiency ratio calculation
Efficiency ratio (GAAP)		76.94	%		82.15	%		77.68	%		76.53	%		69.04	%
Acquisition-related expenses		(2.20	)		(5.33	)		(7.30	)		(3.79	)		(0.77	)
Writedown of bank premises		—			(0.30	)		—			—			—
Operating efficiency ratio		74.74	%		76.52	%		70.38	%		72.74	%		68.27	%

Colony Bankcorp, Inc.
Selected Financial Information
	2022			2021
(dollars in thousands, except per share data)	First Quarter			Fourth Quarter			Third Quarter			Second Quarter			First Quarter
EARNINGS SUMMARY
Net interest income	$	19,188		$	19,022		$	17,868		$	15,069		$	14,283
Provision for loan losses		50			50			150			—			500
Non-interest income		9,152			10,815			9,438			7,751			8,576
Non-interest expense		21,805			24,512			21,211			17,465			15,782
Income taxes		1,161			1,116			362			1,358			1,658
Net income		5,324			4,159			5,583			3,997			4,919
PERFORMANCE MEASURES
Per common share:
Common shares outstanding		17,586,333			13,673,898			13,674,198			9,498,783			9,498,783
Weighted average basic shares		15,877,695			13,673,998			12,344,926			9,498,783			9,498,783
Weighted average diluted shares		15,877,695			13,673,998			12,344,926			9,498,783			9,498,783
Earnings per basic share	$	0.34		$	0.30		$	0.45		$	0.42		$	0.52
Earnings per diluted share		0.34			0.30			0.45			0.42			0.52
Adjusted earnings per diluted share^(b)		0.37			0.40			0.57			0.49			0.53
Cash dividends declared per share		0.1075			0.1025			0.1025			0.1025			0.1025
Common book value per share		14.23			15.92			15.88			15.46			15.11
Tangible book value per common share^(b)		10.83			11.41			11.42			13.50			13.14
Performance ratios:
Net interest margin^(a)		3.13	%		3.16	%		3.48	%		3.68	%		3.50	%
Return on average assets		0.81			0.64			1.00			0.91			1.12
Return on average total equity		8.88			7.65			11.49			11.14			13.71
Efficiency ratio		76.94			82.15			77.68			76.53			69.04
Operating efficiency ratio ^(b)		74.74			76.52			70.38			72.74			68.27
ASSET QUALITY
Nonperforming loans (NPLs)	$	6,171		$	5,449		$	12,246		$	9,205		$	10,676
Other real estate owned		246			281			807			270			518
Repossessed assets		48			49			3			29			29
Total nonperforming assets (NPAs)		6,465			5,779			13,056			9,504			11,223
Classified loans		18,306			19,016			30,300			30,852			35,182
Criticized loans		52,859			58,938			61,857			64,818			80,288
Net loan (recoveries)/charge-offs		41			(17	)		144			(178	)		(66	)
Allowance for loan losses to total loans		0.95	%		0.96	%		0.98	%		1.26	%		1.19	%
Allowance for loan losses to total NPLs		209.35			236.92			105.15			140.15			118.89
Allowance for loan losses to total NPAs		199.83			223.40			98.63			135.73			113.10
Net (recoveries)/charge-offs to average loans		0.01			(0.01	)		0.05			(0.09	)		(0.02	)
NPLs to total loans		0.46			0.41			0.93			0.90			1.00
NPAs to total assets		0.24			0.21			0.52			0.54			0.62
NPAs to total loans and other real estate owned		0.48			0.43			1.00			0.93			1.06
AVERAGE BALANCES
Total assets		2,679,242			2,589,908			2,272,904			1,777,559			1,774,123
Loans, net		1,333,784			1,306,796			1,218,102			1,052,645			1,051,179
Loans, held for sale		28,650			38,543			24,964			24,139			27,828
Deposits		2,341,357			2,274,910			1,975,418			1,547,139			1,475,944
Total stockholders’ equity		243,120			215,783			197,109			144,761			145,515

(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 March 31,
	2022						2021
(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	$	1,362,434	$	16,060	4.78	%	$	1,079,007	$	13,638	5.13	%
Investment securities, taxable		866,445		3,753	1.76	%		371,265		1,628	1.78	%
Investment securities, tax-exempt ^2		111,007		516	1.89	%		32,616		155	1.93	%
Deposits in banks and short term investments		161,653		56	0.14	%		183,376		53	0.12	%
Total interest-earning assets		2,501,539		20,385	3.30	%		1,666,264		15,474	3.77	%
Noninterest-earning assets		177,703						107,859
Total assets	$	2,679,242					$	1,774,123
Liabilities and stockholders' equity
Interest-bearing liabilities:
Interest-earning demand and savings	$	1,445,408	$	261	0.07	%	$	859,462	$	165	0.08	%
Other time		343,215		338	0.40	%		260,438		488	0.76	%
Total interest-bearing deposits		1,788,623		599	0.14	%		1,119,900		653	0.24	%
Federal Home Loan Bank advances		51,678		249	1.95	%		22,500		113	2.05	%
Paycheck Protection Program Liquidity Facility		—		—	—	%		60,602		68	0.46	%
Other borrowings		32,181		201	2.53	%		61,654		257	1.68	%
Total other interest-bearing liabilities		83,859		450	2.18	%		144,756		438	1.23	%
Total interest-bearing liabilities		1,872,482		1,049	0.23	%		1,264,656		1,091	0.35	%
Noninterest-bearing liabilities:
Demand deposits	$	552,734					$	356,044
Other liabilities		10,906						7,908
Stockholders' equity		243,120						145,515
Total noninterest-bearing liabilities and stockholders' equity		806,760						509,467
Total liabilities and stockholders' equity	$	2,679,242					$	1,774,123
Interest rate spread					3.08	%					3.42	%
Net interest income			$	19,336					$	14,383
Net interest margin					3.13	%					3.50	%

^1The 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 $50,000 and $66,000 for the quarters ended March 31, 2022 and 2021, respectively, are included in income and fees on loans. Accretion income of $269,000 and $209,000 for the quarter ended March 31, 2022 and 2021 are also included in income and fees on loans.

^2Taxable-equivalent adjustments totaling $98,000 and $33,000 for the quarters ended March 31, 2022 and 2021, respectively, are included in tax-exempt interest on investment securities.

Colony Bankcorp, Inc.
Segment Reporting
	2022		2021
(dollars in thousands)	First Quarter		Fourth Quarter		Third Quarter			Second Quarter		First Quarter
Banking Division
Net interest income	$	18,824	$	18,316	$	17,181		$	14,864	$	13,985
Provision for loan losses		50		50		150			—		500
Noninterest income		4,300		4,480		4,340			3,354		3,005
Noninterest expenses		17,701		19,280		16,941			13,366		11,960
Income taxes		900		475		434			1,241		1,160
Segment income	$	4,473	$	2,991	$	3,996		$	3,611	$	3,370
Total segment assets	$	2,627,450	$	2,620,501	$	2,499,223		$	1,710,345	$	1,755,667
Full time employees		404		400		417			294		291
Mortgage Banking Division
Net interest income	$	71	$	114	$	138		$	123	$	168
Provision for loan losses		—		—		—			—		—
Noninterest income		2,912		3,102		3,104			2,997		3,986
Noninterest expenses		2,711		2,869		2,765			2,887		2,793
Income taxes		101		334		(290	)		60		354
Segment income	$	171	$	13	$	767		$	173	$	1,007
Total segment assets	$	19,417	$	25,149	$	21,184		$	25,149	$	27,478
Full time employees		62		55		53			53		51
Small Business Specialty Lending Division
Net interest income	$	293	$	592	$	549		$	82	$	130
Provision for loan losses		—		—		—			—		—
Noninterest income		1,940		3,233		1,994			1,400		1,585
Noninterest expenses		1,393		2,363		1,505			1,212		1,029
Income taxes		160		307		218			57		144
Segment income	$	680	$	1,155	$	820		$	213	$	542
Total segment assets	$	39,921	$	46,065	$	23,291		$	20,024	$	15,901
Full time employees		28		26		24			24		23
Total Consolidated
Net interest income	$	19,188	$	19,022	$	17,868		$	15,069	$	14,283
Provision for loan losses		50		50		150			—		500
Noninterest income		9,152		10,815		9,438			7,751		8,576
Noninterest expenses		21,805		24,512		21,211			17,465		15,782
Income taxes		1,161		1,116		362			1,358		1,658
Segment income	$	5,324	$	4,159	$	5,583		$	3,997	$	4,919
Total segment assets	$	2,686,788	$	2,691,715	$	2,543,698		$	1,755,518	$	1,799,046
Full time employees		494		481		494			371		365

Colony Bankcorp, Inc.
Consolidated Balance Sheets
	March 31, 2022			December 31, 2021
(dollars in thousands)	(unaudited)			(audited)
ASSETS
Cash and due from banks	$	23,594		$	18,975
Interest-bearing deposits in banks and federal funds sold		132,823			178,257
Cash and cash equivalents		156,417			197,232
Investment securities available for sale, at fair value		653,292			938,164
Investment securities held to maturity, at amortized cost		307,009			—
Other investments, at cost		13,827			14,012
Loans held for sale		24,228			38,150
Loans, net of unearned income		1,354,032			1,337,977
Allowance for loan losses		(12,919	)		(12,910	)
Loans, net		1,341,113			1,325,067
Premises and equipment		43,010			43,033
Other real estate		246			281
Goodwill		52,902			52,906
Other intangible assets		6,924			7,389
Bank owned life insurance		55,488			55,159
Deferred income taxes, net		14,546			3,644
Other assets		17,786			16,678
Total assets	$	2,686,788		$	2,691,715
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Deposits:
Noninterest-bearing	$	557,985		$	552,576
Interest-bearing		1,792,801			1,822,032
Total deposits		2,350,786			2,374,608
Federal Home Loan Bank advances		51,712			51,656
Other borrowed money		24,229			36,792
Accrued expenses and other liabilities		9,784			10,952
Total liabilities	$	2,436,511		$	2,474,008
Stockholders’ equity
Common stock, $1 par value; 20,000,000 shares authorized, 17,586,333 and 13,673,898 issued and outstanding, respectively	$	17,586		$	13,674
Paid in capital		166,859			111,021
Retained earnings		103,036			99,189
Accumulated other comprehensive loss, net of tax		(37,204	)		(6,177	)
Total stockholders’ equity		250,277			217,707
Total liabilities and stockholders’ equity	$	2,686,788		$	2,691,715

Colony Bankcorp, Inc.
Consolidated Statements of Income (unaudited)
	Three months ended March 31,
	2022		2021
(dollars in thousands, except per share data)
Interest income:
Loans, including fees	$	16,010		13,573
Investment securities		4,171		1,750
Deposits in banks and short term investments		56		53
Total interest income		20,237		15,376
Interest expense:
Deposits		599		654
Federal Home Loan Bank advances		249		114
Paycheck Protection Program Liquidity Facility		—		68
Other borrowings		201		257
Total interest expense		1,049		1,093
Net interest income		19,188		14,283
Provision for loan losses		50		500
Net interest income after provision for loan losses		19,138		13,783
Noninterest income:
Service charges on deposits		1,825		1,222
Mortgage fee income		2,912		3,995
Gain on sale of SBA loans		1,726		1,471
(Loss)/Gain on sale of securities		24		(4	)
Interchange fees		2,000		1,530
BOLI Income		312		208
Other		353		154
Total noninterest income		9,152		8,576
Noninterest expense:
Salaries and employee benefits		13,272		9,955
Occupancy and equipment		1,619		1,326
Acquisition related		624		176
Information technology expenses		2,354		1,592
Professional fees		869		486
Advertising and public relations		766		580
Communications		437		218
Other		1,864		1,449
Total noninterest expense		21,805		15,782
Income before income taxes		6,485		6,577
Income taxes		1,161		1,658
Net income	$	5,324	$	4,919
Earnings per common share:
Basic	$	0.34	$	0.52
Diluted		0.34		0.52
Dividends declared per share		0.1075		0.1000
Weighted average common shares outstanding:
Basic		15,877,695		9,498,783
Diluted		15,877,695		9,498,783

Colony Bankcorp, Inc.
Quarterly Comparison
	2022			2021
(dollars in thousands, except per share data)	First Quarter			Fourth Quarter			Third Quarter			Second Quarter			First Quarter
Assets	$	2,686,788		$	2,691,715		$	2,512,581		$	1,755,518		$	1,799,047
Loans, net		1,341,113			1,325,067			1,296,983			1,009,747			1,050,082
Deposits		2,350,786			2,374,608			2,195,122			1,542,214			1,525,884
Total equity		250,277			217,707			217,130			146,894			143,487
Net income		5,324			4,160			5,583			3,997			4,919
Earnings per basic share	$	0.34		$	0.30		$	0.45		$	0.42		$	0.52
Key Performance Ratios:
Return on average assets		0.81	%		0.64	%		1.00	%		0.91	%		1.12	%
Return on average total equity		8.88	%		7.65	%		11.49	%		11.14	%		13.71	%
Total equity to total assets		9.32	%		8.09	%		8.64	%		8.37	%		7.98	%
Tangible equity to tangible assets^(a)		7.25	%		5.93	%		6.37	%		7.38	%		7.01	%
Net interest margin		3.13	%		3.16	%		3.48	%		3.68	%		3.50	%
(a) Non-GAAP measure - see “Explanation of Certain Unaudited Non-GAAP Financial Measures” for more information and reconciliation to GAAP

Colony Bankcorp, Inc.
Quarterly Loan Comparison
	2022		2021
(dollars in thousands)	First Quarter		Fourth Quarter		Third Quarter		Second Quarter		First Quarter
Core	$	1,093,126	$	990,063	$	931,793	$	905,850	$	888,800
PPP		387		8,486		16,999		58,769		102,633
Purchased		260,519		339,428		361,068		57,999		71,342
Total	$	1,354,032	$	1,337,977	$	1,309,860	$	1,022,618	$	1,062,775

Colony Bankcorp, Inc.
Quarterly Loans by Location Comparison
	2022			2021
(dollars in thousands)	First Quarter			Fourth Quarter			Third Quarter			Second Quarter			First Quarter
Atlanta	$	246,629		$	281,040		$	278,473		$	436		$	492
Augusta		38,462			36,268			28,064			30,521			23,982
Middle Georgia		117,336			117,788			100,804			73,458			73,543
Northwest Georgia		38,430			27,167			24,334			2,703			1,698
Coastal Georgia		237,621			235,799			233,648			236,985			235,094
South Central Georgia		345,421			336,849			352,057			361,821			371,227
Southwest Georgia		118,263			105,937			99,385			95,870			97,575
West Georgia		168,071			161,678			160,663			148,271			148,457
Small Business Specialty Lending		39,934			23,101			8,850			14,923			7,906
Paycheck Protection Program		387			8,486			16,999			55,425			102,633
Purchase Accounting		(697	)		(948	)		(1,025	)		(565	)		(668	)
Other		4,175			4,812			7,608			2,770			836
Total	$	1,354,032		$	1,337,977		$	1,309,860		$	1,022,618		$	1,062,775

Colony Bankcorp, Inc.
Quarterly PPP Fees Comparison
	2022		2021
(dollars in thousands)	First Quarter		Fourth Quarter		Third Quarter		Second Quarter		First Quarter
PPP loan fee income	$	505	$	502	$	1,556	$	1,581	$	1,212
Unearned income on PPP loans		12		517		1,019		2,573		3,077