Colony Bankcorp, Inc., reported net income available to shareholders of $1,883,000, or $0.22 per diluted share for the fourth quarter of 2016 compared to $1,584,000, or $0.19 per diluted share for the comparable 2015 period, while net income available to shareholders for the twelve month period ended December 31, 2016 was $7,180,000, or $0.84 per diluted share compared to $5,998,000, or $0.71 per share for the comparable 2015 period.  This increase of 19.71 percent in net income for the comparable twelve month periods was primarily driven by an increase in net interest income and a reduction in preferred stock dividends.  “In addition to earnings improvement, we also redeemed $5,000,000 of preferred stock during the quarter that on an annual basis reduces our annual dividend payment by $450,000.  This reduces our current outstanding preferred stock to $9,360,000.  Also of significance during 2016 was the reduction in non-performing assets of $4.47 million.  Our current non-performing assets total $18.79 million at December 31, 2016, down 19.20 percent from a year ago,” said Ed Loomis, President and Chief Executive Officer.  “We are pleased to report our 2016 results that reflect continued earnings and asset quality improvement.  As we look to 2017, we believe we are positioned for continued  improvement, which in turn will enhance shareholder value.”

Capital

Colony continues to maintain a strong regulatory capital position to be categorized as “well-capitalized” by regulatory benchmarks.  At December 31, 2016, the Company’s tier one leverage ratio, tier one ratio, total risk-based capital ratio and common equity tier one capital ratio were 10.29 percent, 15.50 percent, 16.64 percent and 11.32 percent, respectively, compared to 10.69 percent, 15.51 percent, 16.6 percent  and 10.29 percent, respectively, at December 31, 2015.  The Company’s capital ratios were all in excess of regulatory minimums required to be classified as “well-capitalized.”

Net Interest Margin

During the fourth quarter of 2016, the Company reported net interest income of $9.57 million and a net interest margin of 3.48 percent compared to $9.76 million and 3.63 percent, respectively, for fourth quarter 2015, while net interest income for twelve months ended December 31, 2016 was $38.11 million and a net interest margin of 3.51 percent compared to $37.71 million and 3.52 percent, respectively, for the comparable 2015 period.  While we have been in a historical low interest rate environment for some time, recent Federal Reserve discussion suggests a  move toward a “tightening” interest rate policy that would enhance our net interest margin for 2017.

Asset Quality

The Company continues to monitor our substandard and non-performing assets and focus on problem asset resolution.  Substandard assets that include non-performing assets totaled $33.23 million at December 31, 2016 compared to $41.49 million and $41.24 million, respectively, at September 30, 2016 and December 31, 2015.  Substandard assets adjusted for SBA guarantees to tier one capital plus loan loss reserve ratio was 25.67 percent, 31.34 percent and 31.36 percent, respectively, at December 31, 2016, September 30, 2016 and December 31, 2015.  Non-performing assets decreased from the previous quarter end to $18.79 million or 2.47 percent of total loans and other real estate owned as of December 31, 2016.  This compares to $23.80 million or 3.03 percent and $23.26 million or 3.03 percent, respectively, as of September 30, 2016 and December 31, 2015.

Other real estate totaled $6.44 million at December 31, 2016 compared to $9.81 million and $8.84 million, respectively, at September 30, 2016 and December 31, 2015.  Though these levels remain at an elevated level, we continue to work diligently to dispose these properties at fair value.  We had significant reduction during fourth quarter to get to our lowest level of OREO in the past several years.

In the fourth quarter of 2016 net charge-offs were $280 thousand, or 0.04 percent of average loans as compared to net charge-offs of (77) thousand, or (0.01) percent of average loans in fourth quarter 2015, while 2016 net charge-offs  were $743 thousand, or 0.10 percent of average loans compared to $1.06 million, or 0.14 percent of average loans for the comparable 2015 period.  The loan loss reserve was $8.92 million or 1.18 percent of total loans on December 31, 2016 compared to $9.20 million or 1.19 percent and $8.60 million or 1.13 percent, respectively, at September 30, 2016 and December 31, 2015.  Loan loss reserve methodology resulted in three months ended December 31, 2016 provision for loan losses of $0 compared to $125 thousand for the comparable 2015 period, while the twelve months ended December 31, 2016 provision for loan losses was $1.06 million compared to $866 thousand for the comparable 2015 period.

Noninterest Income

Total noninterest income increased in the comparable periods as noninterest income for twelve months ended December 31, 2016 was $9.55 million compared to $9.05 million in the comparable 2015 period, or an increase of 5.62 percent.  Gain on sale of securities totaled $385 thousand compared to ($11) thousand in the comparable 2015 period to primarily account for the increase.  Our initiative to increase secondary market mortgage fee income has resulted in an increase of $155 thousand, or 29.41 percent over the comparable 2015 period.

Noninterest Expense

Total noninterest expense increased in the comparable periods as noninterest expense for twelve months ended December 31, 2016 was $34.07 million compared to $33.73 million for the comparable 2015 period, or an increase of 1.03 percent.  Salaries and employee benefit expenses increased 5.08 percent, occupancy expense decreased 0.48 percent and other noninterest expense decreased 4.33 percent for the comparable periods.  The efficiency ratio improved to 71.81 percent for twelve months ended December 31, 2016 compared to 71.92 percent for the comparable 2015 period, or a decrease of 0.15 percent.   The company continues to explore opportunities to further improve its’ operating efficiency.

Colony Bankcorp, Inc. is a bank holding company headquartered in Fitzgerald, Georgia that consists of one operating subsidiary, Colony Bank.  Colony Bank conducts a general full service commercial, consumer and mortgage banking business through twenty-seven offices located in the central, southern and coastal Georgia cities of Albany, Ashburn, Broxton, Centerville, Columbus, Cordele, Douglas, Eastman, Fitzgerald, Leesburg, Moultrie, Quitman, Rochelle, Savannah, Soperton, Statesboro, Sylvester, Thomaston, Tifton, Valdosta and Warner Robins, Georgia.

Colony Bankcorp, Inc. Common Stock is quoted on the Nasdaq Global Market under the symbol “CBAN”.

Certain statements contained in the preceding release that are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, notwithstanding that such statements are not specifically identified.  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 the Act.  Examples of forward-looking statements include, but are not limited to: (i) projections 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; and (iv) 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.