Colony Bankcorp Reports Fourth Quarter and Year End 2021 Results

Colony Bankcorp, Inc. (Nasdaq: CBAN) (“Colony” or the “Company”) today reported financial results for the fourth quarter of 2021 and for the year ended December 31, 2021. Financial highlights are shown below.

Financial Highlights:

• Net income was $4.2 million, or $0.30 per diluted share, for the fourth quarter of 2021. Net income for the year ended December 31, 2021 was $18.7 million, or $1.66 per diluted share.

• Operating net income of $5.5 million, or $0.40 per diluted share for the fourth quarter of 2021 and $22.2 million, or $1.98 per diluted share for the year ended December 31, 2021. (see Reconciliation of Non-GAAP Measures).

• $50,000 in provision for loan losses was recorded in fourth quarter of 2021 and $700,000 was recorded for the full year of 2021.

• Total loans, excluding loans held for sale and PPP, totaled $1.3 billion at December 31, 2021, an increase of $36.6 million, or 2.8% from the prior quarter.

• Mortgage production was $99.5 million, with $26.2 million in refinances, and $73.3 million in purchases in the fourth quarter of 2021. Total mortgage production in 2021 was $405.0 million.

• Small Business Specialty Lending (“SBSL”) closed $41.6 million in Small Business Administration (“SBA”) loans and sold $24.3 million in SBA loans in the fourth quarter and closed $100.0 million and sold $58.3 million for the year ended December 31, 2021.

• Non-recurring charges of $600,000 related to efficiency efforts incurred in the fourth quarter of 2021.

• Losses on sales of securities of $200,000 were recognized in the fourth quarter of 2021. Underperforming securities were sold and higher yielding securities were purchased.

The Company also announced that on January 20, 2022, the Board of Directors declared a quarterly cash dividend of $0.1075 per share, to be paid on its common stock on February 18, 2022, to shareholders of record as of the close of business on February 4, 2022. Outstanding shares as of January 20, 2022 were 13,741,848.

Commenting on the announcement, Heath Fountain, President and Chief Executive Officer, said, “First, I would like to thank all of the Colony team members who were involved with the successful integration of the SouthCrest platform in November. These projects are critical to the success of any acquisition and our team dedicated the hours necessary to achieve the best outcome possible. As a result of these efforts, we are currently on track to achieve the efficiencies that were projected for this acquisition.

“Clearly COVID remains a big part of the economic picture, and while we continue to see accelerated loan repayments, our lending team was able to grow net loans over 11% annualized during the quarter which is within our stated goal of 8-12%. Our current expectations are that this level of loan growth should continue into 2022.

“We were also very pleased with the growth in core deposits during the quarter. The majority of the nearly $180 million increase from the third quarter balances occurred in the non-interest bearing and interest bearing deposit categories. While some of this growth was due to seasonally strong public funds deposits, the growth to the overall balance sheet will provide us an excellent base for potential future earnings.

“The Company continues to experience very mild credit losses and non-performing asset levels. Non-performing loans decreased primarily due to one large payoff and multiple smaller upgrades due to recent payment performance.

“Finally, we continue to 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.”

Balance Sheet

• Total assets were $2.7 billion at December 31, 2021, an increase of $927.7 million, or 52.6%, compared to the same period in 2020. The increase was primarily related to acquisition of SouthCrest Financial Group, Inc. (“SouthCrest”).

• Total loans, including loans held for sale, totaled $1.38 billion at December 31, 2021, an increase of $264.2 million, or 23.8% from the same period in 2020. Legacy loan growth was up $116.6 million or 13.4% compared to the same period in 2020. The increase in total loans was primarily the result of the acquisition of SouthCrest offset by the forgiveness of loans under the Paycheck Protection Program (“PPP”).

• Total deposits totaled $2.4 billion at December 31, 2021, an increase of $929.6 million, or 64.3%, compared to the same period in 2020. The increase was in all types of deposits and was primarily the result of the acquisition of SouthCrest.

• Total borrowings at December 31, 2021 totaled $88.4 million, a decrease of $78.6 million, or 47.1%, compared to the same period in 2020.

Capital

• Colony continues to maintain a strong capital position, with ratios that exceed regulatory minimums required to be classified 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 7.48%, 11.90%, 12.69%, and 10.46%, respectively, at December 31, 2021.

Fourth Quarter Results of Operations

• Net interest income, on a tax-equivalent basis, for the fourth quarter of 2021 totaled $19.2 million, compared to $15.2 million for the fourth quarter 2020. The increase during the quarter is primarily attributable to a full quarter of loan interest income related to loans acquired in the acquisition of SouthCrest.

• Net interest margin decreased 42 basis points from prior year fourth quarter of 2020 primarily driven by a decrease in deferred fee income recognized on PPP loans and a decrease in interest rates on loans and investments during 2021 offset by a decrease in rates paid on deposits.

• Noninterest income totaled $10.8 million for the fourth quarter ended December 31, 2021, an increase of $2.8 million, or 34.5%, compared to the same period in 2020. The increase was primarily attributable to SBSL loan sales, Southcrest and insurance acquisitions, growth in interchange fee income and service charges on deposits offset by gain on the sale of assets that happened in the fourth quarter ended December 31, 2021.

• Noninterest expense totaled $24.5 million for the fourth quarter ended December 31, 2021, compared to $16.0 million for the same period in 2020. The increase in noninterest expense primarily resulted from a $3.9 million increase in salary expense and $1.4 million increase in acquisition expenses related to the acquisitions of SouthCrest and The Barnes Agency (“Barnes”).

Asset Quality

• Nonperforming assets totaled $5.8 million and $13.1 million at December 31, 2021 and September 30, 2021, respectively. Nonaccrual loans decreased $6.7 million due to loan payoffs and loans moved to accruing status that were properly performing.

• OREO and repossessed assets totaled $330,000 at December 31, 2021, a decrease of $480,000, or 59% compared to September 30, 2021, primarily related to sale of two OREO properties in the fourth quarter.

• Net recoveries on loans charged-off were $17,000, or (0.01)% of average loans for the fourth quarter of 2021, compared to net charge-offs of $144,000 or 0.05% for the third quarter of 2021.

• The loan loss reserve was $12.9 million, or 0.96% of total loans, at December 31, 2021, compared to $12.9 million, or 0.98% of total loans, at September 30, 2021.

Asset quality remains strong as indicated by the overall improvement in asset quality ratios as of the fourth quarter 2021.

About Colony Bankcorp

Colony Bankcorp, Inc. is the bank holding company for Colony Bank. Founded in 1975 and headquartered in Fitzgerald, Georgia, Colony operates 39 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; (vi) statements relating to the timing, benefits, costs, and synergies of the recently completed acquisitions of SouthCrest (the “Merger”) and Barnes; and (vii) 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 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; potential increases in the provision for loan losses resulting from the COVID-19 pandemic and related variants; 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, including changes to statutes, regulations or regulatory policies or practices as a result of, or in response to, COVID-19 and related variants; 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; the risk that the cost savings and any revenue synergies from the Merger and the acquisition of Barnes may not be realized or take longer than anticipated; the risk of successful integration of SouthCrest’s and Barnes’ businesses into the Company; reputation risk and the reaction of each of the Company’s, SouthCrest’s and Barnes’ customers, suppliers, employees or other business partners to the Merger and the Barnes acquisition; the risk that the integration of SouthCrest’s operations into the operations of the Company will be materially delayed or will be more costly or difficult than expected; the timing and achievement of expected cost reductions following the Merger; the timing and achievement of the recovery of the reduction of tangible book value resulting from the Merger; 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, 2020, 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; 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, and efficiency ratio, respectively. Operating net income and operating efficiency ratio both exclude acquisition-related expenses. Adjusted earnings per diluted share includes the adjustments to operating net income. Tangible book value per common share excludes 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; and operating efficiency ratio and the reconciliation of these measures to net income, diluted earnings per share, book value per common share, efficiency ratio, are set forth in the table below.

Colony Bankcorp, Inc.
Reconciliation of Non-GAAP Measures
		2021																2020
(dollars in thousands, except per share data)		Fourth Quarter				Third Quarter				Second Quarter				First Quarter				Fourth Quarter
Operating net income reconciliation
Net income (GAAP)		$	4,159			$	5,583			$	3,997			$	4,919			$	4,900
Acquisition-related expenses			1,592				1,994				865				176				148
Writedown of bank premises			90				—				—				—				—
Gain on sale of Thomaston branch			—				—				—				—				(1,026	)
Income tax expense (benefit)			(353	)			(518	)			(225	)			(46	)			184
Operating net income		$	5,488			$	7,059			$	4,637			$	5,049			$	4,206
Weighted average diluted shares			13,673,998				12,344,926				9,498,783				9,498,783				9,498,783
Adjusted earnings per diluted share		$	0.40			$	0.57			$	0.49			$	0.53			$	0.44
Tangible book value per common share reconciliation
Book value per common share (GAAP)		$	15.92			$	15.88			$	15.46			$	15.11			$	15.21
Effect of goodwill and other intangibles			(4.51	)			(4.46	)			(1.89	)			(1.97	)			(1.95	)
Tangible book value per common share		$	11.41			$	11.42			$	13.57			$	13.14			$	13.26
Operating efficiency ratio calculation
Efficiency ratio (GAAP)			82.15	%			77.68	%			76.53	%			69.04	%			68.93	%
Acquisition-related expenses			(5.33	)			(7.30	)			(3.79	)			(0.77	)			(0.64	)
Writedown of bank premises			(0.30	)			—				—				—				—
Gain on sale of Thomaston branch			—	%			—	%			—	%			—	%			3.19	%
Operating efficiency ratio			76.21	%			70.38	%			72.74	%			68.27	%			71.49	%

Colony Bankcorp, Inc.
Selected Financial Information
		2021																2020
(dollars in thousands, except per share data)		Fourth Quarter				Third Quarter				Second Quarter				First Quarter				Fourth Quarter
EARNINGS SUMMARY
Net interest income		$	19,022			$	17,868			$	15,069			$	14,283			$	15,151
Provision for loan losses			50				150				—				500				1,296
Non-interest income			10,815				9,438				7,751				8,576				8,039
Non-interest expense			24,512				21,211				17,465				15,782				15,986
Income taxes			1,116				362				1,358				1,658				1,008
Net income			4,159				5,583				3,997				4,919				4,900
PERFORMANCE MEASURES
Per common share:
Common shares outstanding			13,673,898				13,674,198				9,498,783				9,498,783				9,498,783
Weighted average basic shares			13,673,998				12,344,926				9,498,783				9,498,783				9,498,783
Weighted average diluted shares			13,673,998				12,344,926				9,498,783				9,498,783				9,498,783
Earnings per basic share		$	0.30			$	0.45			$	0.42			$	0.52			$	0.52
Earnings per diluted share			0.30				0.45				0.42				0.52				0.52
Adjusted earnings per diluted share(b)			0.40				0.57				0.49				0.53				0.44
Cash dividends declared per share			0.1025				0.1025				0.1025				0.1025				0.1000
Common book value per share			15.92				15.88				15.46				15.11				15.21
Tangible book value per common share(b)			11.41				11.42				13.50				13.14				13.26
Performance ratios:
Net interest margin (a)			3.16	%			3.48	%			3.68	%			3.50	%			3.58	%
Return on average assets			0.64				1.00				0.91				1.12				1.08
Return on average total equity			7.65				11.49				11.14				13.71				13.73
Efficiency ratio			82.15				77.68				76.53				69.04				68.93
Operating efficiency ratio (b)			76.52				70.38				72.74				68.27				71.49
ASSET QUALITY
Nonperforming loans (NPLs)		$	5,449			$	12,246			$	9,205			$	10,676			$	9,128
Other real estate owned			281				807				270				518				1,006
Repossessed assets			49				3				29				29				30
Total nonperforming assets (NPAs)			5,779				13,056				9,504				11,223				10,164
Classified loans			19,016				30,300				30,852				35,182				30,404
Criticized loans			58,938				61,857				64,818				80,288				75,633
Net loan (recoveries)/charge-offs			(17	)			144				(178	)			(66	)			189
Allowance for loan losses to total loans			0.96	%			0.98	%			1.26	%			1.19	%			1.14	%
Allowance for loan losses to total NPLs			236.92				105.15				140.15				118.89				132.85
Allowance for loan losses to total NPAs			223.40				98.63				135.73				113.10				119.31
Net (recoveries)/charge-offs to average loans			(0.01	)			0.05				(0.09	)			(0.02	)			0.07
NPLs to total loans			0.41				0.93				0.90				1.00				0.86
NPAs to total assets			0.21				0.52				0.54				0.62				0.58
NPAs to total loans and other real estate owned			0.43				1.00				0.93				1.06				0.96
AVERAGE BALANCES
Total assets		$	2,589,908			$	2,272,904			$	1,777,559			$	1,774,123			$	1,797,749
Loans, net			1,306,796				1,218,102				1,052,645				1,051,179				1,100,729
Loans, held for sale			38,543				24,964				24,139				27,828				51,143
Deposits			2,274,910				1,975,418				1,547,139				1,475,944				1,456,287
Total stockholders’ equity			215,783				197,109				144,761				145,515				141,570
(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,
	2021									2020
(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	$	1,345,339		$	16,489		4.86	%		$	1,151,872		$	14,878		5.12	%
Investment securities, taxable		782,906			3,332		1.69	%			335,228			1,485		1.76	%
Investment securities, tax-exempt 2		101,941			485		1.89	%			31,218			147		1.87	%
Deposits in banks and short term investments		180,784			59		0.13	%			168,876			54		0.13	%
Total interest-earning assets		2,410,970			20,365		3.35	%			1,687,194			16,564		3.89	%
Noninterest-earning assets		178,938									110,555
Total assets	$	2,589,908								$	1,797,749
Liabilities and stockholders' equity
Interest-bearing liabilities:
Interest-earning demand and savings	$	1,357,634		$	299		0.09	%		$	843,497		$	203		0.10	%
Other time		354,663			381		0.43	%			280,175			630		0.89	%
Total interest-bearing deposits		1,712,297			680		0.16	%			1,123,672			833		0.29	%
Federal Home Loan Bank advances		51,621			252		1.94	%			22,500			116		2.06	%
Paycheck Protection Program Liquidity Facility		—			—		—	%			128,554			118		0.36	%
Other borrowings		37,038			247		2.64	%			38,339			254		2.62	%
Total other interest-bearing liabilities		88,659			499		2.23	%			189,393			488		1.02	%
Total interest-bearing liabilities		1,800,956			1,179		0.26	%			1,313,065			1,321		0.40	%
Noninterest-bearing liabilities:
Demand deposits	$	562,613								$	332,615
Other liabilities		10,556									10,499
Stockholders' equity		215,783									141,570
Total noninterest-bearing liabilities and stockholders' equity		788,952									484,684
Total liabilities and stockholders' equity	$	2,589,908								$	1,797,749
Interest rate spread							3.09	%								3.49	%
Net interest income				$	19,186								$	15,243
Net interest margin							3.16	%								3.58	%
____________
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 $61,000 and $61,000 for the quarters ended December 31, 2021 and 2020, respectively, are included in income and fees on loans. Accretion income of $95,000 and $385,000 for the quarter ended December 31, 2021 and 2020 are also included in income and fees on loans.
2Taxable-equivalent adjustments totaling $102,000 and $31,000 for the quarters ended December 31, 2021 and 2020, respectively, are included in tax-exempt interest on investment securities.

Colony Bankcorp, Inc.
Average Balance Sheet and Net Interest Analysis
	Year Ended December 31,
	2021									2020
(dollars in thousands)	Average Balances			Income/ Expense			Yields/ Rates			Average Balances			Income/ Expense			Yields/ Rates
Assets
Interest-earning assets:
Loans, net of unearned income3	$	1,186,919		$	60,380		5.09	%		$	1,092,009		$	55,802		5.11	%
Investment securities, taxable		547,793			9,343		1.71	%			336,140			6,875		2.05	%
Investment securities, tax-exempt4		61,476			1,161		1.89	%			17,070			331		1.94	%
Deposits in banks and short term investments		169,188			214		0.13	%			141,641			438		0.31	%
Total interest-earning assets		1,965,376			71,098		3.62	%			1,586,860			63,446		4.00	%
Noninterest-earning assets		135,916									104,375
Total assets	$	2,101,292								$	1,691,235
Liabilities and stockholders' equity
Interest-bearing liabilities:
Interest-earning demand and savings	$	1,073,824		$	929		0.09	%		$	787,030		$	1,870		0.24	%
Other time		297,704			1,672		0.56	%			305,374			3,729		1.22	%
Total interest-bearing deposits		1,371,528			2,601		0.19	%			1,092,404			5,599		0.51	%
Federal Home Loan Bank advances		34,849			691		1.98	%			33,249			743		2.23	%
Paycheck Protection Program Liquidity Facility		25,546			93		0.36	%			90,768			205		—	%
Other borrowings		32,686			1,012		3.10	%			38,527			1,333		3.46	%
Total other interest-bearing liabilities		93,081			1,796		1.93	%			162,544			2,281		1.40	%
Total interest-bearing liabilities		1,464,609			4,397		0.30	%			1,254,948			7,880		0.63	%
Noninterest-bearing liabilities:
Demand deposits	$	449,445								$	294,008
Other liabilities		11,197									4,325
Stockholders' equity		176,043									137,954
Total noninterest-bearing liabilities and stockholders' equity		636,685									436,287
Total liabilities and stockholders' equity	$	2,101,294								$	1,691,235
Interest rate spread							3.32	%								3.37	%
Net interest income				$	66,701								$	55,566
Net interest margin							3.39	%								3.50	%
____________
3The 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 $268,000 and $252,000 for the twelve months ended December 31, 2021 and 2020, respectively, are included in income and fees on loans. Accretion income of $470,000 and $763,000 for the twelve months ended December 31, 2021 and 2020 are also included in income and fees on loans.
4Taxable-equivalent adjustments totaling $244,000 and $69,000 for the twelve months ended December 31, 2021 and 2020, respectively, are included in tax-exempt interest on investment securities.

Colony Bankcorp, Inc.
Segment Reporting
		2021													2020
(dollars in thousands)		Fourth Quarter			Third Quarter				Second Quarter			First Quarter			Fourth Quarter
Banking Division
Net interest income		$	18,316		$	17,181			$	14,864		$	13,985		$	14,752
Provision for loan losses			50			150				—			500			1,296
Noninterest income			4,480			4,340				3,354			3,005			3,952
Noninterest expenses			19,280			16,941				13,366			11,960			11,656
Income taxes			475			434				1,241			1,160			973
Segment income		$	2,991		$	3,996			$	3,611		$	3,370		$	4,779
Total segment assets		$	2,620,501		$	2,499,223			$	1,710,345		$	1,755,667		$	1,709,696
Full time employees			400			417				294			291			305
Mortgage Banking Division
Net interest income		$	114		$	138			$	123		$	168		$	299
Provision for loan losses			—			—				—			—			—
Noninterest income			3,102			3,104				2,997			3,986			3,420
Noninterest expenses			2,869			2,765				2,887			2,793			2,835
Income taxes			334			(290	)			60			354			188
Segment income		$	13		$	767			$	173		$	1,007		$	696
Total segment assets		$	25,149		$	21,184			$	25,149		$	27,478		$	50,266
Full time employees			55			53				53			51			43
Small Business Specialty Lending Division
Net interest income		$	592		$	549			$	82		$	130		$	100
Provision for loan losses			—			—				—			—			—
Noninterest income			3,233			1,994				1,400			1,585			667
Noninterest expenses			2,363			1,505				1,212			1,029			1,495
Income taxes			307			218				57			144			(153	)
Segment income		$	1,155		$	820			$	213		$	542		$	(575	)
Total segment assets		$	46,065		$	23,291			$	20,024		$	15,901		$	4,012
Full time employees			26			24				24			23			21
Total Consolidated
Net interest income		$	19,022		$	17,868			$	15,069		$	14,283		$	15,151
Provision for loan losses			50			150				—			500			1,296
Noninterest income			10,815			9,438				7,751			8,576			8,039
Noninterest expenses			24,512			21,211				17,465			15,782			15,986
Income taxes			1,116			362				1,358			1,658			1,008
Segment income		$	4,159		$	5,583			$	3,997			4,919		$	4,900
Total segment assets		$	2,691,715		$	2,543,698			$	1,755,518		$	1,799,046		$	1,763,974
Full time employees			481			494				371			365			369

Colony Bankcorp, Inc.
Consolidated Balance Sheets
		December 31, 2021				December 31, 2020
(dollars in thousands)		(unaudited)				(audited)
ASSETS
Cash and due from banks		$	18,975			$	17,218
Interest-bearing deposits in banks and federal funds sold			178,257				166,288
Cash and cash equivalents			197,232				183,506
Investment securities available for sale, at fair value			947,992				380,814
Other investments, at cost			4,184				3,296
Loans held for sale			38,150				52,386
Loans, net of unearned income			1,337,977				1,059,503
Allowance for loan losses			(12,910	)			(12,127	)
Loans, net			1,325,067				1,047,376
Premises and equipment			43,033				32,057
Other real estate			281				1,006
Goodwill			52,906				15,992
Other intangible assets			8,724				2,566
Bank owned life insurance			55,159				31,547
Other assets			18,987				13,428
Total assets		$	2,691,715			$	1,763,974
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Deposits:
Noninterest-bearing		$	552,576			$	326,999
Interest-bearing			1,822,032				1,118,028
Total deposits			2,374,608				1,445,027
Federal Home Loan Bank advances			51,656				22,500
Paycheck Protection Program Liquidity Facility			—				106,789
Other borrowed money			36,792				37,792
Accrued expenses and other liabilities			10,952				7,378
Total liabilities		$	2,474,008			$	1,619,486
Stockholders’ equity
Common stock, $1 par value; 20,000,000 shares authorized, 13,673,898 and 9,498,783 issued and outstanding, respectively		$	13,674			$	9,499
Paid in capital			111,021				43,215
Retained earnings			99,189				84,993
Accumulated other comprehensive (loss) income, net of tax			(6,177	)			6,781
Total stockholders’ equity			217,707				144,488
Total liabilities and stockholders’ equity		$	2,691,715			$	1,763,974

Colony Bankcorp, Inc.
Consolidated Statements of Income (unaudited)
		Three months ended December 31,								Twelve months ended December 31,
		2021				2020				2021				2020
(dollars in thousands, except per share data)
Interest income:
Loans, including fees		$	16,428				14,818			$	60,112				55,550
Investment securities			3,715				1,601				10,260				7,137
Deposits in banks and short term investments			58				53				214				438
Total interest income			20,201				16,472				70,586				63,125
Interest expense:
Deposits			679				833				2,601				5,599
Federal Home Loan Bank advances			253				116				691				743
Paycheck Protection Program Liquidity Facility			—				118				93				205
Other borrowings			247				254				1,012				1,333
Total interest expense			1,179				1,321				4,397				7,880
Net interest income			19,022				15,151				66,189				55,245
Provision for loan losses			50				1,296				700				6,558
Net interest income after provision for loan losses			18,972				13,855				65,489				48,687
Noninterest income:
Service charges on deposits			1,935				1,387				6,213				5,293
Mortgage fee income			3,106				3,443				13,213				9,149
Gain on sale of SBA loans			2,999				596				7,547				1,600
(Loss)/Gain on sale of securities			(224	)			(83	)			(87	)			926
Gain on sale of assets			—				1,026				—				1,082
Interchange fees			1,988				1,363				6,929				4,988
BOLI Income			331				195				1,041				743
Other			680				112				1,434				463
Total noninterest income			10,815				8,039				36,290				24,244
Noninterest expense:
Salaries and employee benefits			13,689				9,810				45,596				34,141
Occupancy and equipment			1,979				1,339				6,149				5,311
Acquisition related			1,592				148				4,617				862
Information technology expenses			2,180				1,611				7,673				5,746
Professional fees			976				908				2,951				2,250
Advertising and public relations			840				635				2,657				2,111
Communications			536				203				1,373				835
Writedown of bank premises			90				—				—				582
FHLB prepayment penalty			—				—				—				925
Other			2,630				1,332				7,609				5,538
Total noninterest expense			24,512				15,986				78,625				58,301
Income before income taxes			5,275				5,908				23,154				14,630
Income taxes			1,116				1,008				4,495				2,815
Net income		$	4,159			$	4,900			$	18,659			$	11,815
Earnings per common share:
Basic		$	0.30			$	0.52			$	1.66			$	1.24
Diluted			0.30				0.52				1.66				1.24
Dividends declared per share			0.1025				0.1000				0.4100				0.4000
Weighted average common shares outstanding:
Basic			13,673,898				9,498,783				11,254,130				9,498,783
Diluted			13,673,898				9,498,783				11,254,130				9,498,783

Colony Bankcorp, Inc.
Quarterly Comparison
		2021																2020
(dollars in thousands, except per share data)		Fourth Quarter				Third Quarter				Second Quarter				First Quarter				Fourth Quarter
Assets		$	2,691,715			$	2,512,581			$	1,755,518			$	1,799,047			$	1,763,974
Loans, net			1,325,067				1,296,983				1,009,747				1,050,082				1,047,376
Deposits			2,374,608				2,195,122				1,542,214				1,525,884				1,445,027
Total equity			217,707				217,130				146,894				143,487				144,488
Net income			4,159				5,583				3,997				4,919				4,900
Earnings per basic share		$	0.30			$	0.45			$	0.42			$	0.52			$	0.52
Key Performance Ratios:
Return on average assets			0.64	%			1.00	%			0.91	%			1.12	%			1.08	%
Return on average total equity			7.65	%			11.49	%			11.14	%			13.71	%			13.73	%
Total equity to total assets			8.09	%			8.64	%			8.37	%			7.98	%			8.19	%
Tangible equity to tangible assets			5.93	%			6.37	%			7.38	%			7.01	%			7.21	%
Net interest margin			3.16	%			3.48	%			3.68	%			3.50	%			3.58	%

Colony Bankcorp, Inc.
Quarterly Loan Comparison
		2021												2020
(dollars in thousands)		Fourth Quarter			Third Quarter			Second Quarter			First Quarter			Fourth Quarter
Core		$	990,063		$	931,793		$	905,850		$	888,800		$	873,426
PPP			8,486			16,999			58,769			102,633			101,147
Purchased			339,428			361,068			57,999			71,342			84,930
Total		$	1,337,977		$	1,309,860		$	1,022,618		$	1,062,775		$	1,059,503

Colony Bankcorp, Inc.
Quarterly Loans by Location Comparison
		2021																2020
(dollars in thousands)		Fourth Quarter				Third Quarter				Second Quarter				First Quarter				Fourth Quarter
Atlanta		$	281,040			$	278,473			$	436			$	492			$	562
Augusta			36,268				28,064				30,521				23,982				20,432
Middle Georgia			117,788				100,804				73,458				73,543				68,838
Northwest Georgia			27,167				24,334				2,703				1,698				—
Coastal Georgia			235,799				233,648				236,985				235,094				230,184
South Central Georgia			336,849				352,057				361,821				371,227				372,947
Southwest Georgia			105,937				99,385				95,870				97,575				104,132
West Georgia			161,678				160,663				148,271				148,457				154,819
Small Business Specialty Lending			23,101				8,850				14,923				7,906				4,537
Paycheck Protection Program			8,486				16,999				55,425				102,633				101,147
Purchase Accounting			(948	)			(1,025	)			(565	)			(668	)			(876	)
Other			4,812				7,608				2,770				836				2,781
Total		$	1,337,977			$	1,309,860			$	1,022,618			$	1,062,775			$	1,059,503

Colony Bankcorp, Inc.
Quarterly PPP Fees Comparison
		2021												2020
(dollars in thousands)		Fourth Quarter			Third Quarter			Second Quarter			First Quarter			Fourth Quarter
PPP loan fee income		$	502		$	1,556		$	1,581		$	1,212		$	1,324
Unearned income on PPP loans			517			1,019			2,573			3,077			2,072

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