BORROWINGS

12 Months Ended

Dec. 31, 2023

Debt Disclosure [Abstract]

BORROWINGS

BORROWINGS

The following table presents information regarding the Company’s outstanding borrowings at December 31, 2023:

Description	Maturity Date	Amount		Interest Rate
(dollars in thousands)
FHLB Advances	December 22, 2027	$	15,000	4.00%
FHLB Advances	January 28, 2028	20,000		3.87%
FHLB Advances	February 15, 2028	20,000		3.83%
FHLB Advances	April 5, 2028	25,000		3.69%
FHLB Advances	April 6, 2026	25,000		3.90%
FHLB Advances	September 30, 2024	20,000		5.57%
FHLB Advances	March 25, 2024	25,000		5.51%
FHLB Advances	March 26, 2024	25,000		5.51%
Subordinated notes	May 20, 2032	39,216		5.25%
Subordinated debentures	(1)	24,229		(1)
Total borrowings		$	238,445

(1) See individual maturity dates and interest rates in table below.

The following table presents information regarding the Company’s outstanding borrowings at December 31, 2022:

Description	Maturity Date	Amount		Interest Rate
(dollars in thousands)
FHLB Advances	March 21, 2028	$	5,000	2.67%
FHLB Advances	January 5, 2023	20,000		4.18%
FHLB Advances	January 9, 2023	20,000		4.15%
FHLB Advances	March 8, 2023	10,000		4.65%
FHLB Advances	January 17, 2023	20,000		4.15%
FHLB Advances	January 20, 2023	15,000		4.23%
FHLB Advances	December 22, 2027	15,000		4.00%
FHLB Advances	January 30, 2023	20,000		4.23%
FRB Discount Window	January 5, 2023	15,000		4.10%
Subordinated notes	May 20, 2032	39,123		5.25%
Subordinated debentures	(1)	24,229		(1)
Total borrowings		$	203,352

(1) See individual maturity dates and interest rates in table below.

As collateral on the outstanding FHLB advances, the Company has provided a blanket lien on its portfolio of qualifying residential first mortgage loans, commercial loans, farmland loans, multifamily loans and HELOC loans, as well as U.S. Treasury and Agency securities. At December 31, 2023 and 2022, the lendable collateral value of those loans and securities pledged was $235.2 million and $150.0 million, respectively. At December 31, 2023, the Company had remaining credit availability from the FHLB of $596.2 million. At December 31, 2022, the Company had remaining credit availability from the FHLB of $574.9 million. The Company may be required to pledge additional qualifying collateral in order to utilize the full amount of the remaining credit line.

At December 31, 2023 and 2022, the Company also has available federal funds lines of credit with various financial institutions totaling $64.5 million, of which there were none outstanding at December 31, 2023 and 2022.

The Company has the ability to borrow funds from the Federal Reserve Bank (FRB) of Atlanta utilizing the discount window. The discount window is an instrument of monetary policy that allows eligible institutions to borrow money from the FRB on a short-term basis to meet temporary liquidity shortages caused by internal or external disruptions. The Company had borrowing capacity available under this arrangement, with none outstanding at December 31, 2023 and 2022. The Company could be required to pledge certain available-for-sale investment securities as collateral under this agreement.

The Company also has the ability to participate in the FRB Term Funding Program, a new form of one-year emergency funding, with an available line of $100.0 million. The Company would be required to purchase Treasury securities or other debt obligations. The Company has not utilized this source of funding as of December 31, 2023.

On May 20, 2022, the Company completed a private placement of $40.0 million in fixed-to-floating rate subordinated notes due 2032 (the “Notes”). The Notes will bear a fixed rate of 5.25% for the first five years and will reset quarterly thereafter to then current three-month Secured Overnight Financing Rate, as published by the Federal Reserve Bank of New York, plus 265 basis points for the five year floating term. The Company is entitled to redeem the Notes, in whole or in part, on any interest payment date on or after May 20, 2027, or at any time, in whole but not in part, upon certain other specified events. At December 31, 2023, $39.2 million of the Notes, net of debt issuance costs were outstanding. The notes are recorded as other borrowings on the consolidated balance sheets and, subject to certain limitations, qualify as Tier 2 Capital for regulatory capital purposes.

Subordinated Debentures (Trust Preferred Securities)

During the second quarter of 2004, the Company formed Colony Bankcorp Statutory Trust III for the sole purpose of issuing $4,500,000 in Trust Preferred Securities through a pool sponsored by FTN Financial Capital Market. The securities have a maturity of thirty years and are redeemable after five years with certain exceptions.

During the second quarter of 2006, the Company formed Colony Bankcorp Capital Trust I for the sole purpose of issuing $5,000,000 in Trust Preferred Securities through a pool sponsored by Truist Capital Markets. The securities have a maturity of thirty years and are redeemable after five years with certain exceptions.

During the first quarter of 2007, the Company formed Colony Bankcorp Capital Trust II for the sole purpose of issuing $9,000,000 in Trust Preferred Securities through a pool sponsored by Trapeza Capital Management, LLC. The securities have a maturity of thirty years and are redeemable after five years with certain exceptions. Proceeds from this issuance were used to pay off trust preferred securities issued on March 26, 2002 through Colony Bankcorp Statutory Trust I.

During the third quarter of 2007, the Company formed Colony Bankcorp Capital Trust III for the sole purpose of issuing $5,000,000 in Trust Preferred Securities through a pool sponsored by Trapeza Capital Management, LLC. The securities have a maturity of thirty years and are redeemable after five years with certain exceptions. Proceeds from this issuance were used to pay off trust preferred securities issued on December 19, 2002 through Colony Bankcorp Statutory Trust II.

The Company is not in default of any outstanding Trust Preferred Securities as of December 31, 2023.

The following table presents the information regarding the Company's subordinated debentures at December 31, 2023 and 2022. All subordinated debentures are at benchmark rates based on SOFR at December 31, 2023.

 

Description	Date	Amount		Added Points	Maturity	5-Year Call Option
(dollars in thousands)
Colony Bankcorp Statutory Trust III	June 16, 2004	$	4,640	2.68%	June 17, 2034	June 17, 2009
Colony Bankcorp Capital Trust I	April 13, 2006	5,155		1.50%	June 30, 2036	April 13, 2011
Colony Bankcorp Capital Trust II	March 12, 2007	9,279		1.65%	March 30, 2037	March 12, 2012
Colony Bankcorp Capital Trust III	September 14, 2007	5,155		1.40%	October 30, 2037	September 14, 2012

The Trust Preferred Securities are recorded as subordinated debentures on the consolidated balance sheets and, subject to certain limitations, qualify as Tier 1 Capital for regulatory capital purposes. The proceeds from these offerings were used to fund certain acquisitions, pay off holding company debt and inject capital into the Bank subsidiary. The Trust Preferred Securities pay interest quarterly.