-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, R9TrwOqJUSQqsSXeG7IGhW3uggrDnUoJhl7Rj4PkbJNBhCHtSoeNfvfKU77VJESS X94R7lD5yCOyCpQPZHREmQ== 0000931763-00-001206.txt : 20000510 0000931763-00-001206.hdr.sgml : 20000510 ACCESSION NUMBER: 0000931763-00-001206 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000331 FILED AS OF DATE: 20000509 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COLONY BANKCORP INC CENTRAL INDEX KEY: 0000711669 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 581492391 STATE OF INCORPORATION: GA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-12436 FILM NUMBER: 622597 BUSINESS ADDRESS: STREET 1: 302 S MAIN ST STREET 2: PO BOX 989 CITY: FITZGERALD STATE: GA ZIP: 31750 BUSINESS PHONE: 9124235446 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q QUARTERLY REPORT UNDER SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR QUARTER ENDED MARCH 31, 2000 COMMISSION FILE NUMBER 0-12436 COLONY BANKCORP, INC. -------------------- (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) GEORGIA 58-1492391 ------- ---------- (STATE OR OTHER JURISDICTION OF (I.R.S. EMPLOYER INCORPORATION OR ORGANIZATION) IDENTIFICATION NUMBER) 115 SOUTH GRANT STREET, FITZGERALD, GEORGIA 31750 ------------------------------------------------- ADDRESS OF PRINCIPAL EXECUTIVE OFFICES 912/426-6000 ------------ REGISTRANT'S TELEPHONE NUMBER INCLUDING AREA CODE INDICATE BY CHECK MARK WHETHER THE REGISTRANT (1) HAS FILED REPORTS REQUIRED TO BE FILED BY SECTIONS 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934 DURING THE PRECEDING 12 MONTHS (OR FOR SUCH SHORTER PERIOD THAT THE REGISTRANT WAS REQUIRED TO FILE SUCH REPORTS), AND (2) HAS BEEN SUBJECT TO SUCH FILING REQUIREMENTS FOR THE PAST 90 DAYS. YES X NO --- --- INDICATE THE NUMBER OF SHARES OUTSTANDING OF EACH OF THE ISSUER'S CLASSES OF COMMON STOCK, AS OF THE CLOSE OF THE PERIOD COVERED BY THIS REPORT. CLASS OUTSTANDING AT MARCH 31, 2000 ----- ----------------------------- COMMON STOCK, $1 PAR VALUE 4,440,276 PART 1 - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS THE FOLLOWING FINANCIAL STATEMENTS ARE PROVIDED FOR COLONY BANKCORP, INC. AND SUBSIDIARIES: THE BANK OF FITZGERALD, ASHBURN BANK, COMMUNITY BANK OF WILCOX, THE BANK OF DODGE COUNTY, BANK OF WORTH, COLONY BANK SOUTHEAST AND COLONY MANAGEMENT SERVICES, INC. A. CONSOLIDATED BALANCE SHEETS - MARCH 31, 2000 AND DECEMBER 31, 1999. B. CONSOLIDATED STATEMENTS OF INCOME - FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999. C. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999. D. CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION - FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999. THE CONSOLIDATED FINANCIAL STATEMENTS FURNISHED HAVE NOT BEEN EXAMINED BY INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS, BUT REFLECT, IN THE OPINION OF MANAGEMENT, ALL ADJUSTMENTS NECESSARY FOR A FAIR PRESENTATION OF THE RESULTS OF OPERATIONS FOR THE PERIODS PRESENTED. THE RESULTS OF OPERATIONS FOR THE THREE MONTH PERIOD ENDED MARCH 31, 2000 ARE NOT NECESSARILY INDICATIVE OF THE RESULTS TO BE EXPECTED FOR THE FULL YEAR. 2
COLONY BANKCORP, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS MARCH 31, 2000 AND DECEMBER 31, 1999 (UNAUDITED) (DOLLARS IN THOUSANDS) ASSETS March 31, 2000 Dec. 31, 1999 -------------- ------------- Cash and Balances Due from Depository Institutions (Note 2) $ 24,338 $ 22,550 Federal Funds Sold 12,880 15,290 Investment Securities Available for Sale, at Fair Value 61,306 61,857 Held to Maturity, at Cost (Fair Value of $718 and $934 respectively) (Note 3) 735 963 Loans (Notes 4 and 5) 341,168 315,440 Allowance for Loan Losses (4,728) (4,682) Unearned Interest and Fees (4) (5) -------- -------- Total Loans 336,436 310,753 Premises and Equipment (Note 6) 12,900 12,847 Other Real Estate 716 883 Other Assets 8,721 10,129 -------- -------- Total Assets $458,032 $435,272 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Deposits: Noninterest-Bearing $ 35,513 $ 33,720 Interest-Bearing (Note 8) 354,957 340,730 -------- -------- Total Deposits 390,470 374,450 Borrowed Money: Federal Funds Purchased 0 0 Other Borrowed Money (Note 9) 27,905 21,967 -------- -------- Total Borrowed Money 27,905 21,967 Other Liabilities 3,562 3,844 Commitments and Contingencies (Note 11) Stockholders' Equity: Common Stock, Par Value $1, Authorized 20,000,000 shares, Issued 4,440,276 and 4,435,026 shares as of March 31, 2000 and December 31, 1999 respectively 4,440 4,435 Paid-In Capital 21,603 21,537 Retained Earnings 11,738 10,767 Accumulated Other Comprehensive Income, Net of Tax (1,686) (1,728) -------- -------- Total Stockholders' Equity 36,095 35,011 -------- -------- Total Liabilities and Stockholders' Equity $458,032 $435,272 ======== ========
The accompanying notes are an integral part of these balance sheets. 3 COLONY BANKCORP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME THREE MONTHS ENDED MARCH 31, 2000 AND 1999 (UNAUDITED) (DOLLARS IN THOUSANDS)
Three Months Ended 3/31/00 3/31/99 ---------- ---------- Interest Income: Loans, including fees $ 7,992 $ 6,405 Federal Funds Sold 188 218 Deposits with Other Banks 178 122 Investment Securities: U.S. Treasury & Federal Agencies 774 863 State, County and Municipal 96 100 Other Investments 44 60 ---------- ---------- Total Interest Income 9,272 7,768 ---------- ---------- Interest Expense: Deposits 4,357 3,820 Federal Funds Purchased 2 1 Other Borrowed Money 422 252 ---------- ---------- Total Interest Expense 4,781 4,073 Net Interest Income 4,491 3,695 Provision for Loan Losses 477 249 ---------- ---------- Net Interest Income After Provision 4,014 3,446 ---------- ---------- Noninterest Income: Service Charge on Deposits 562 481 Other Service Charges, Commissions & Fees 145 144 Security Gains, net 0 0 Other Income 140 112 ---------- ---------- Total Noninterest Income 847 737 ---------- ---------- Noninterest Expense: Salaries and Employee Benefits 1,735 1,425 Occupancy and Equipment 501 468 Other Operating Expenses 846 806 ---------- ---------- Total Noninterest Expense 3,082 2,699 ---------- ---------- Income Before Income Taxes 1,779 1,484 Income Taxes 566 448 ---------- ---------- Net Income $ 1,213 $ 1,036 ========== ========== Net Income Per Share of Common Stock Basic $0.27 $0.23 ========== ========== Diluted $0.27 $0.23 ========== ========== Weighted Average Shares Outstanding 4,440,276 4,435,026 ========== ==========
The accompanying notes are an integral part of these statements. 4
COLONY BANKCORP INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME THREE MONTHS ENDED MARCH 31, 2000 AND 1999 (UNAUDITED) (DOLLARS IN THOUSANDS) Three Months Ended 3/31/00 3/31/99 --------- --------- Net Income $ 1,213 $ 1,036 Other Comprehensive Income, Net of Tax Gains (Losses) on Securities, Arising During Year 42 (246) Reclassification Adjustment 0 0 -------- -------- Unrealized Gains (Losses) on Securities 42 (246) -------- -------- Comprehensive Income $ 1,255 $ 790 ======== ========
The accompanying notes are an integral part of these statements. 5 COLONY BANKCORP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS THREE MONTHS ENDED MARCH 31, 2000 AND 1999 (UNAUDITED) (DOLLARS IN THOUSANDS)
2000 1999 --------- --------- CASH FLOW FROM OPERATING ACTIVITIES Net Income (loss) $ 1,213 $ 1,036 Adjustments to reconcile net income to net cash provided by operating activities: (Gain) loss on sale of investment securities 0 0 Depreciation 302 275 Provision for loan losses 477 249 Amortization of excess costs 12 12 Other prepaids, deferrals and accruals, net 823 499 --------- --------- Total Adjustments $ 1,614 $ 1,035 --------- --------- Net cash provided by operating activities $ 2,827 $ 2,071 --------- --------- CASH FLOW FROM INVESTING ACTIVITIES Purchases of securities available for sale $ (675) $ (27,052) Proceeds from sales of securities available for sale 0 1,873 Proceeds from maturities, calls, and paydowns of investment securities: Available for Sale 1,276 19,799 Held to Maturity 231 404 Decrease (Increase) in interest-bearing deposits in banks (5,730) (9,144) (Increase) in loans (25,729) (14,302) Purchase of premises and equipment (355) (474) --------- --------- Net cash (used in) investing activities $ (30,982) $ (28,896) --------- --------- CASH FLOW FROM FINANCING ACTIVITIES Net (decrease) increase in deposits $ 16,020 $ 7,391 Proceeds from issuance of common stock 0 0 Federal funds purchased 0 0 Dividends paid (155) (133) Net (decrease) increase in other borrowed money 5,938 (996) --------- --------- Net cash provided by financing activities 21,803 6,262 --------- --------- Net increase (decrease) in cash and cash equivalents (6,352) (20,563) Cash and cash equivalents at beginning of period 31,126 39,003 --------- --------- Cash and cash equivalents at end of period $ 24,774 $ 18,440
The accompanying notes are an integral part of these statements. 6 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (1) Summary of Significant Accounting Policies - ----------------------------------------------- Basis of presentation Colony Bankcorp, Inc. is a multi-bank holding company located in Fitzgerald, Georgia. The consolidated financial statements include the accounts of Colony Bankcorp, Inc. and its wholly-owned subsidiaries, The Bank of Fitzgerald, Fitzgerald, Georgia; Ashburn Bank, Ashburn, Georgia; Bank of Worth, Sylvester, Georgia; The Bank of Dodge County, Eastman, Georgia; Community Bank of Wilcox, Pitts, Georgia; Colony Bank Southeast, Broxton, Georgia (the Banks); and Colony Management Services, Inc., Fitzgerald, Georgia. All significant intercompany accounts have been eliminated in consolidation. The accounting and reporting policies of Colony Bankcorp, Inc. conform to generally accepted accounting principles and practices utilized in the commercial banking industry. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the balance sheet date and revenues and expenses for the period. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant change in the near-term relate to the determination of the allowance for loan losses, the valuation of real estate acquired in connection with foreclosure or in satisfaction of loans and the valuation of deferred tax assets. Description of Business The Banks provide a full range of retail and commercial banking services for consumers and small to medium size businesses primarily in south Georgia. Lending and investing activities are funded primarily by deposits gathered through it retail branch office network. Lending is concentrated in agricultural, commercial and real estate loans to local borrowers. In management's opinion, although the Banks have a high concentration of agricultural and real estate loans, these loans are well collateralized and do not pose an adverse credit risk. In addition, the balance of the loan portfolio is sufficiently diversified to avoid significant concentration of credit risk. Although the Banks have a diversified loan portfolio, a substantial portion of borrowers' ability to honor their contracts is dependent upon the viability of the real estate economic sector. The success of Colony is dependent, to a certain extent, upon the economic conditions in the geographic markets it serves. No assurance can be given that the current economic conditions will continue. Adverse changes in the economic conditions in these geographic markets would likely have a material adverse effect on the Company's results of operations and financial condition The operating results of Colony depend primarily on its net interest income. Accordingly, operations are subject to risks and uncertainties surrounding the exposure to changes in the interest rate environment. Investment Securities The Company records investment securities under Statement of Financial Accounting Standards (SFAS) No. 115 Accounting for Certain Investments in Debt and Equity Securities. Under the provisions of SFAS No. 115, the Company must classify its securities as trading, available for sale or held to maturity. Trading securities are purchased and held for sale in the near term. Securities held to maturity are those which the Company has the ability and intent to hold until maturity. All other securities not classified as trading or held to maturity are considered available for sale. Securities available for sale are measured at fair value with unrealized gains and losses reported net of deferred taxes as a separate component of stockholders' equity. Fair value represents an approximation of realizable value as of March 31, 2000 and December 31, 1999. Realized and unrealized gains and losses are determined using the specific identification method. Premiums and discounts are recognized in interest income using the interest method over the period to maturity. Loans Loans are generally reported at principal amount less unearned interest and fees. Impaired loans are recorded under SFAS 114, Accounting by Creditors for Impairment of a Loan and SFAS 118, Accounting by Creditors for Impairment of a Loan-Income Recognition and Disclosures. Impaired loans are loans for which principal and interest are unlikely to be collected in accordance with the original loan terms and, generally, represent loans delinquent in excess of 120 days which have been placed on nonaccrual status and for which collateral values are less than outstanding principal and interest. Small balance, homogeneous loans are excluded from impaired loans. Generally, interest payments received on impaired loans are applied to principal. Upon receipt of all loan principal, additional interest payments are recognized as interest income on the cash basis. Other nonaccrual loans are loans for which payments of principal and interest are considered doubtful of collection under original terms but collateral values equal or exceed outstanding principal and interest. 7 (1) Summary of Significant Accounting Policies (continued) - ---------------------------------------------------------- Allowance for Loan Losses The allowance method is used in providing for losses on loans. Accordingly, all loan losses decrease the allowance and all recoveries increase it. The provision for loan losses is based on factors which, in management's judgment, deserve current recognition in estimating possible loan losses. Such factors considered by management include growth and composition of the loan portfolio, economic conditions and the relationship of the allowance for loan losses to outstanding loans. An allowance for loan losses is maintained for all impaired loans. Provisions are made for impaired loans upon changes in expected future cash flows or estimated net realizable value of collateral. When determination is made that impaired loans are wholly or partially uncollectible, the uncollectible portion is charged-off. Management believes the allowance for possible loan losses is adequate. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary based on changes in economic conditions. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company's allowance for loan losses. Such agencies may require the Company to recognize additions to the allowance based on their judgment about information available to them at the time of their examination. Premises and Equipment Premises and equipment are recorded at acquisition cost net of accumulate depreciation. Depreciation is charged to operations over the estimated useful lives of the assets. The estimated useful lives and methods of depreciation are as follows:
Description Life in Years Method - ----------- ------------- ------ Banking Premises 15-40 Straight-Line and Accelerated Furniture and Equipment 5-10 Straight-Line and Accelerated
Expenditures for major renewals and betterments are capitalized. Maintenance and repairs are charged to operations as incurred. When property and equipment are retired or sold, the cost and accumulated depreciation are removed from the respective accounts and any gain or loss is reflected in other income or expense. Cash Flows For reporting cash flows, cash and cash equivalents include cash on hand, noninterest-bearing amounts due from banks and federal funds sold. Cash flows from demand deposits, NOW accounts, savings accounts, loans and certificates of deposit are reported net. Income Taxes Income taxes are provided for the tax effects of transactions reported in the consolidated financial statements and consist of taxes currently due plus deferred taxes. Deferred taxes are recognized for differences between the basis of assets and liabilities for financial statement and income tax purposes. The differences relate primarily to depreciable assets (use of different depreciation methods for financial statement and income tax purposes) and allowance for loan losses (use of the allowance method for financial statement purposes and the experience method for tax purposes). The deferred tax assets and liabilities represent the future tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Other Real Estate Other real estate generally represents real estate acquired through foreclosure and is initially recorded at the lower of cost or estimated market value at the date of acquisition. Losses from the acquisitions of property in full or partial satisfaction of debt are recorded as loan losses. Subsequent declines in value, routine holding costs and gains or losses upon disposition are included in other losses. Comprehensive Income Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Certain changes in assets and liabilities, such as unrealized gains and losses on securities available for sale, represent equity changes from economic events of the period other than transactions with owners and are not reported in the consolidated statement of income but as a separate component of the equity section of the consolidated balance sheets. Such items are considered components of other comprehensive income. Statement of Financial Accounting Standards 130 requires the presentation in the financial statements of net income and all items of other comprehensive income as total comprehensive income. 8 (2) Cash and Balances Due from Depository Institutions - ------------------------------------------------------ Components of cash and balances due from depository institutions at March 31, 2000 and December 31, 1999 are as follows:
March 31, 2000 December 31, 1999 -------------- ----------------- Cash on Hand and Cash Items $ 3,657 $ 7,502 Noninterest-Bearing Deposits with Other Banks 8,237 8,334 Interest-Bearing Deposits with Other Banks 12,444 6,714 ------- ------- $24,338 $22,550 ======= =======
(3) Investment Securities - ------------------------- Investment securities as of March 31, 2000 are summarized as follows:
Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Securities Available for Sale U.S. Government Agencies: Mortgage-Backed $ 4,427 $0 $ (139) $ 4,288 Other 48,287 0 (1,846) 46,441 State, County & Municipal 8,247 3 (208) 8,042 The Banker's Bank Stock 50 0 0 50 Federal Home Loan Bank Stock 1,596 0 0 1,596 Marketable Equity Securities 1,130 0 (241) 889 ------- -- --------- ------- $63,737 $3 $ (2,434) $61,306 ======= == ========= ======= Securities Held to Maturity: State, County and Municipal $ 735 $2 $ (19) $ 718 ======= == ========= =======
The amortized cost and fair value of investment securities as of March 31, 2000 by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers have the right to call or prepay obligations with or without call or prepayment penalties.
Securities Available for Sale Held to Maturity Amortized Cost Fair Value Amortized Cost Fair Value Due in One Year or Less $ 2,762 $ 2,747 $400 $400 Due After One Year Through Five Years 51,011 49,118 100 99 Due After Five Years Through Ten Years 2,400 2,275 0 0 Due After Ten Years 361 343 235 219 ------- ------- ---- ---- 56,534 54,483 735 718 Federal Home Loan Bank Stock 1,596 1,596 0 0 The Banker's Bank Stock 50 50 0 0 Marketable Equity Securities 1,130 889 0 0 Mortgage-Backed Securities 4,427 4,288 0 0 ------- ------- ---- ---- $63,737 $61,306 $735 $718 ======= ======= ==== ====
9 (3) Investment Securities (continued) - ------------------------------------- Investment securities as of December 31, 1999 are summarized as follows:
Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Securities Available for Sale U.S. Government Agencies: Mortgage-Backed Securities $ 4,629 $0 $ (139) $ 4,490 Other 48,291 0 (1,955) 46,336 State, County & Municipal 8,826 3 (165) 8,664 The Banker's Bank Stock 50 0 0 50 Federal Home Loan Bank Stock 1,426 0 0 1,426 Marketable Equity Securities 1,130 0 (240) 890 ------- -- --------- ------- $64,352 $3 $ (2,499) $61,856 ======= == ========= ======= Securities Held to Maturity: State, County and Municipal $ 963 $0 $ (26) $ 937 ======= == ========= =======
Investment securities having a carry value approximating $36,744 and $28,318 as of March 31, 2000 and December 31, 1999, respectively, were pledged to secure public deposits and for other purposes. (4) Loans - --------- The composition of loans as of March 31, 2000 and December 31, 1999 was as follows:
March 31, 2000 December 31, 1999 ----------------------- ---------------------- Commercial, Financial and Agricultural $ 42,399 $ 42,595 Real Estate - Construction 4,427 4,003 Real Estate - Farmland 16,973 24,179 Real Estate - Other 206,347 185,663 Installment Loans to Individuals 55,831 48,226 All Other Loans 15,191 10,775 -------- -------- $341,168 $315,441 ======== ========
Nonaccrual loans are loans for which principal and interest are doubtful of collection in accordance with original loan terms and for which accruals of interest have been discontinued due to payment delinquency. Nonaccrual loans totaled $5,351 and $5,334 as of March 31, 2000 and December 31, 1999, respectively. On March 31, 2000, the Company had 90 day past due loans with principal balances of $1,195 and restructured loans with principal balances of $230. Colony Bankcorp, Inc. recognizes impaired loans as nonaccrual loans delinquent in excess of 120 days for which collateral values are insufficient to recover outstanding principal and interest under original loan terms. Impaired loan data as of December 31, 1999 was as follows: December 31, 1999 ----------------- Total Investment in Impaired Loans $ 885 Less Allowance for Impaired Loan Losses (106) ------- Net Investment, December 31, 1999 $ 779 ======= 10 (5) Allowance for Loan Losses - ------------------------------ Transactions in the allowance for loan losses are summarized below for three months ended March 31, 2000 and March 31, 1999 as follows:
March 31, 2000 March 31, 1999 -------------- -------------- Balance, Beginning $4,682 $4,726 Provision Charged to Operating Expenses 477 249 Loans Charged Off (499) (153) Loan Recoveries 68 89 ------ ----- Balance, Ending $4,728 $4,911 ====== ======
(6) Premises and Equipment - --------------------------- Premises and equipment are comprised of the following as of March 31, 2000 and December 31, 1999:
March 31, 2000 December 31, 1999 -------------- ----------------- Land $ 1,572 $ 1,572 Building 10,233 9,841 Furniture, Fixtures and Equipment 7,825 7,775 Leasehold Improvements 327 327 Construction in Progress 0 96 ------- ------- 19,957 19,611 ------- ------- Accumulated Depreciation (7,057) (6,764) $12,900 $12,847 ======= =======
Depreciation charged to operations totaled $302 and $276 for March 31, 2000 and March 31, 1999 respectively. Certain Company facilities and equipment are leased under various operating leases. Future minimum rental payments to be paid are as follows: Year Ending December 31 Amount - ----------- ------ 2000 $122 2001 106 2002 70 2003 49 2004 0 ---- $347 ==== (7) Income Taxes - ----------------- The Company records income taxes under SFAS No. 109, Accounting for Income Taxes, which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed annually for differences between the financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense is the tax payable or refundable for the period plus or minus the change during the period in deferred tax assets and liabilities. 11 (8) Deposits - ------------ Components of interest-bearing deposits as of March 31, 2000 and December 31, 1999 are as follows:
March 31, 2000 December 31, 1999 -------------- ----------------- Interest-Bearing Demand $ 72,583 $ 66,418 Savings 14,271 13,541 Time, $100,000 and Over 95,843 90,460 Other Time 172,260 170,311 -------- -------- $354,957 $340,730 ======== ========
The aggregate amount of short-term jumbo certificates of deposit, each with a minimum denomination of $100,000, was approximately $82,812 and $81,129 as of March 31, 2000 and December 31, 1999, respectively. As of March 31, 2000 and December 31, 1999, the scheduled maturities of certificates of deposits are as follows:
Maturity March 31, 2000 December 31, 1999 - -------- -------------- ----------------- One Year and Under $215,551 $210,238 One to Three Years 43,454 38,676 Three Years and Over 9,098 11,857 -------- -------- $268,103 $260,771 ======== ========
(9) Borrowed Money - ------------------- Borrowed money at March 31, 2000 and December 31, 1999 is summarized as follows:
March 31, 2000 December 31, 1999 -------------- ----------------- Federal Home Loan Bank Advances $26,200 $20,700 Ashburn Bank Warehouse Line 487 0 First Port City Note Payable 674 674 The Banker's Bank Note Payable 544 593 ------- ------- $27,905 $21,967 ======= =======
Advances from the Federal Home Loan Bank (FHLB) have maturities ranging from 2000 to 2008 and interest rates ranging from 5.40 percent to 6.98 percent. Of the balances outstanding at March 31, 2000, $2,000,000 is callable by the FHLB during 2000. Under the Blanket Agreement for Advances and Security Agreement with the FHLB, residential first mortgage loans are pledged as collateral for the FHLB advances outstanding. Georgia First Mortgage originated a warehouse line with Ashburn Bank for the purpose of funding mortgage loans in the process of being sold in the secondary market. The warehouse line commitment is for $1,500 with an outstanding balance at March 31, 2000 of $487. First Port City note payable originated on January 30, 1997 with additional funds added for an amount totaling $963. Annual principal payments of $96 are due with interest paid quarterly at The Wall Street Prime Rate Indicator. The debt is secured by commercial real estate in downtown Fitzgerald, which includes the parent company's facilities. The note was renewed on January 20, 2000 for $674. Any unpaid balance is due January 29, 2003. The Bankers Bank note payable originated on September 5, 1997 for $1,000 at a rate of The Wall Street Prime minus one half percent. Payments are due monthly with the entire unpaid balance due September 5, 2002. The debt is secured by all furniture, fixtures, machinery, equipment and software of Colony Management Services, Inc. Colony Bankcorp, Inc. guarantees the debt. The aggregate stated maturities of other borrowed money at March 31, 2000 are as follows:
Year Amount - ---- -------- 2000 $11,856 2001 1,443 2002 3,106 2003 3,000 2004 and Thereafter 8,500 ------- $27,905 =======
12 (10) Profit Sharing Plan - ------------------------ The Company has a profit sharing plan that covers substantially all employees who meet certain age and service requirements. It is the Company's policy to make contributions to the plan as approved annually by the board of directors. The total provision for contributions to the plan was $328 for 1999 and $264 for 1998. (11) Commitments and Contingencies - ---------------------------------- In the normal course of business, certain commitments and contingencies are incurred which are not reflected in the consolidated financial statements. Commitments under standby letters of credit to U.S. addresses approximate $1,660 as of March 31, 2000 and $1,705 as of December 31, 1999. Unfulfilled loan commitments as of March 31, 2000 and December 31, 1999 approximated $47,224 and $43,197 respectively. No losses are anticipated as a result of commitments and contingencies. (12) Regulatory Capital Matters - ------------------------------- The amount of dividends payable to the parent company from the subsidiary banks is limited by various banking regulatory agencies. The amount of cash dividends available from subsidiaries for payment in 2000 without prior approval from the banking regulatory agencies approximates $2,090. Upon approval by regulatory authorities, the banks may pay cash dividends to the parent company in excess of regulatory limitations. The Company is subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and, possibly, additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company's consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of the Company's assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Company's capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company to maintain minimum amounts and ratios of total and Tier 1 capital to risk-weighted assets, and of Tier 1 capital to average assets. The amounts and ratios as defined in regulations are presented hereafter. Management believes, as of March 31, 2000, the Company meets all capital adequacy requirements to which it is subject and is classified as well capitalized under the regulatory framework for prompt corrective action. In the opinion of management, there are no conditions or events since prior notification of capital adequacy from the regulators that have changed the institution's category.
To Be Well Capitalized For Capital Under Prompt Corrective Actual Adequacy Purposes Action Provisions Amount Ratio Amount Ratio Amount Ratio As of March 31, 2000 Total Capital to Risk-Weighted Assets $41,506 11.70% $28,369 8.00% $35,461 10.00% Tier 1 Capital to Risk-Weighted Assets 37,070 10.45% 14,184 4.00% 21,277 6.00% Tier 1 Capital to Average Assets 37,070 8.35% 17,760 4.00% 22,199 5.00% As of December 31, 1999 Total Capital to Risk-Weighted Assets $40,267 11.88% $27,108 8.00% $33,885 10.00% Tier 1 Capital to Risk-Weighted Assets 36,026 10.63% 13,554 4.00% 20,331 6.00% Tier 1 Capital to Average Assets 36,026 8.39% 17,176 4.00% 21,469 5.00%
13 (13) Financial Information of Colony Bankcorp, Inc. (Parent Only) - ----------------------------------------------------------------- The parent company's balance sheets as of March 31, 2000 and December 31, 1999 and the related statements of income and comprehensive income and cash flows are as follows:
COLONY BANKCORP, INC. (PARENT ONLY) BALANCE SHEETS FOR PERIOD ENDED MARCH 31, 2000 AND DECEMBER 31, 1999 ASSETS March 31, 2000 December 31, 1999 --------------- ------------------ Cash $ 9 $ 247 Investments in Subsidiaries at Equity 35,522 34,266 Other 1,424 1,448 ------- ------- Totals Assets $36,955 $35,961 ======= ======= LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Dividends Payable $ 178 $ 177 Notes and Debentures Payable 674 674 Other 8 99 ------- ------- 860 950 Stockholders' Equity Common Stock, Par Value $1; Authorized 20,000,000 Shares, Issued 4,440,276 and 4,435,026 Shares as of March 31, 2000 and December 31, 1999 Respectively $ 4,440 $ 4,435 Paid-In Capital 21,603 21,537 Retained Earnings 11,738 10,767 Accumulated Other Comprehensive Income, Net of Tax (1,686) (1,728) ------- ------- Total Stockholders' Equity 36,095 35,011 ------- ------- Total Liabilities and Stockholders' Equity $36,955 $35,961 ======= =======
14 (13) Financial Information of Colony Bankcorp, Inc. (Parent Only) (continued) - -----------------------------------------------------------------------------
COLONY BANKCORP, INC. (PARENT ONLY) STATEMENT OF INCOME AND COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND MARCH 31, 1999 March 31, 2000 March 31, 1999 --------------- --------------- Income Dividends from Subsidiaries $ 619 $ 463 Management Fees from Subsidiaries 0 0 Other 18 26 ------ ------ $ 637 $ 489 Expenses Interest 14 20 Amortization 4 4 Other 175 168 ------ ------ $ 193 $ 192 ------ ------ Income Before Taxes and Equity in Undistributed Earnings of Subsidiaries 444 297 Income Tax (Benefits) (56) (62) ------ ------ Income Before Equity in Undistributed Earnings of Subsidiaries 500 359 Equity in Undistributed Earnings of Subsidiaries 713 677 ------ ------ Net Income 1,213 1,036 Other Comprehensive Income, Net of Tax Gains (losses) on Securities Arising During Year 42 (246) Reclassification Adjustment 0 0 ------ ------ Unrealized Gains (Losses) in Securities 42 (246) ------ ------ Comprehensive Income $1,255 $ 790 ====== ======
15 (13) Financial Information of Colony Bankcorp, Inc. (Parent Only)(continued) - ----------------------------------------------------------------------------
COLONY BANKCORP, INC. (PARENT ONLY) STATEMENT OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND MARCH 31, 1999 March 31, 2000 March 31, 1999 --------------- --------------- Cash Flows from Operating Activities Net Income $1,213 $1,036 Adjustments to Reconcile Net Income to Net Cash Provided from Operating Activities Depreciation and Amortization 22 22 Equity in Undistributed Earnings of Subsidiary (713) (677) Other (105) (129) ------ ------ 417 252 Cash Flows from Investing Activities Capital Infusion in Subsidiary (500) 0 Purchase of Premises and Equipment 0 (15) ------ ------ (500) (15) Cash Flows from Financing Activities Dividends Paid (155) (133) Proceeds from Issuance of Common Stock 0 0 Principal Payments on Notes and Debentures 0 0 Proceeds from Notes and Debentures 0 0 ------ ------ (155) (133) Increase (Decrease) in Cash and Cash Equivalents (238) 104 Cash and Cash Equivalents, Beginning 247 111 ------ ------ Cash and Cash Equivalents, Ending $ 9 $ 215 ====== ======
(14) Common Stock Split - ------------------------ On February 16, 1999, a 100 percent stock split to be effected on March 31, 1999 in the form of a dividend was approved by the board. Weighted average shares and per share data for all periods presented in the accompanying consolidated financial statements and related notes have been retroactively restated to reflect the additional shares outstanding resulting from the stock split. (15) Legal Contingencies - ------------------------- In the ordinary course of business, there are various legal proceedings pending against Colony and its subsidiaries. The aggregate liabilities, if any, arising from such proceedings would not, in the opinion of management, have a material adverse effect on Colony's consolidated financial position. (16) Stock Grant Plan - ---------------------- On February 16, 1999, a restricted stock grant plan was approved by the Board. The plan was adopted for the purpose of establishing incentives designed to recognize, reward and retain executive employees whose performance, contribution and skills are critical to the Company. The plan period commences February 16, 1999 and ends February 15, 2009 with the maximum number of shares subject to restricted stock awards being 22,175 shares (44,350 shares after the two-for-one stock split effective March 31, 1999). On January 3, 2000, the Company issued 5,250 shares under the stock grant plan to increase the total outstanding shares from 4,435,026 at December 31, 1999 to 4,440,276 at March 31, 2000. 16 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION LIQUIDITY AND CAPITAL RESOURCES Liquidity represents the ability to provide adequate sources of funds for funding loan commitments and investment activities, as well as the ability to provide sufficient funds to cover deposit withdrawals, payment of debt and financing of operations. These funds are obtained by converting assets to cash (representing primarily proceeds from collections on loans and maturities of investment securities) or by attracting new deposits. For the three months ended March 31, 2000, the Company was successful in meeting its liquidity needs by increasing deposits 4.28% to $390,470,000 from deposits of $374,450,000 on December 31, 1999, by reducing Federal Funds 15.76% to $12,880,000 from $15,290,000 on December 31, 1999. Should the need arise, the Company also maintains relationships with several correspondent banks that can provide funds on short notice. The Company's liquidity position remained acceptable for the three months ended March 31, 2000. Average liquid assets (cash and amounts due from banks, interest-bearing deposits in other banks, funds sold and investment securities) represented 26.33% of average deposits for three months ended March 31, 2000 as compared to 33.27% of average deposits for three months ended March 31, 1999 and 28.80% of average deposits for calendar year 1999. Average loans represented 85.59% of average deposits for three months ended March 31, 2000 as compared to 76.99% for three months ended March 31, 1999 and 82.35% for calendar year 1999, Average interest-bearing deposits were 82.96% of average earning assets for three months ended March 31, 2000 as compared to 85.41% for three months ended March 31, 1999 and 84.58% for calendar year 1999. The Company satisfies most of its capital requirements through retained earnings. During the first three months of 2000, retained earnings provided $1,042,000 of increase in equity. Additionally, equity capital increased by $42,000 during the first three months of 2000 as a result of changes in unrealized losses on securities available-for-sale, net of taxes. Thus, total equity increased by a net amount of $1,084,000 for the three month period ended March 31, 2000. This compares to growth in equity of $903,000 from retained earnings and $246,000 decrease resulting from changes in unrealized losses on securities, or total equity increase of $657.000 for the three months ended March 31, 1999. Total equity increased by a net amount of $1,914,000 for calendar year 1999. At March 31, 2000, total capital of Colony amounted to approximately $36,095,000. At March 31, 2000 there were two new outstanding commitments for capital expenditures of approximately $1,350,000 for construction and furnishings for branch offices to be located in Moultrie and Soperton, Georgia. The Federal Reserve Bank Board and the FDIC have issued capital guidelines for U. S. banking organizations. The objective of these efforts was to provide a more uniform capital framework that is sensitive to differences in risk assets among banking organizations. The guidelines define a two-tier capital framework. Tier I capital consists of common stock and qualifying preferred stockholders' equity less goodwill. Tier 2 capital consists of convertible, subordinated and other qualifying term debt and the allowance for loan losses up to 1.25 percent of risk-weighted assets. The Company has no Tier 2 capital other than the allowance for loan losses. Using the capital requirements presently in effect, the Tier I ratio at March 31, 2000 was 10.45% and total Tier 1 and 2 risk-based capital was 11.70%. Both of these measures compare favorably with the regulatory minimums of 4% for Tier 1 and 8% for total risk-based capital. The Company's leverage ratio as of March 31, 2000 was 8.35% which exceeds the required leverage ratio standard of 4%. For the first quarter of 2000, the Company paid quarterly dividends of $0.04 per share. The dividend payout ratio, defined as dividends per share divided by net income per share, was 14.18% for three months ended March 31, 2000 as compared to $0.03 quarterly dividends for the three months ended March 31, 1999 and a dividend payout ratio of 13.04%. At March 31, 2000, management was not aware of any recommendations by regulatory authorities which, if they were to be implemented, would have a material effect on the Company's liquidity, capital resources or operations. However, it is possible that examination by regulatory authorities in the future could precipitate additional loan charge-offs which could materially impact the Company's liquidity, capital resources and operations. RESULTS OF OPERATION The Company's results of operations are determined by its ability to effectively manage interest income and expenses, to minimize loan and investment losses, to generate noninterest income and to control noninterest expense. Since interest rates are determined by market forces and economic conditions beyond the control of the Company, the ability to generate net interest income is dependent upon the Bank's ability to obtain an adequate spread between the rate earned on earning assets and the rate paid on interest-bearing 17 liabilities. Thus, the key performance measure for net interest income is the interest margin or net yield, which is taxable-equivalent net interest income divided by average earning assets. Net Income - ---------- Net income for the three months ended March 31, 2000 was $1,213,000 as compared to $1,036,000 for the three months ended March 31, 1999, or an increase of 17.08%. This increase is primarily attributable to an increase in net interest income due to an increase in the net interest margin and an increase in average earning assets. Net Interest Margin - ------------------- The net interest margin increased by 16 basis points to 4.38% in first quarter 2000 as compared to 4.22% in first quarter 1999. In addition to the increase in the net interest margin, the company realized an increase in average earning assets which resulted in net interest income increasing by 21.54% to $4,491,000 in first quarter 2000 from $3,695,000 for the same period in 1999. Average earning assets increased to $416,689,000 in first quarter 2000 from $356,892,000 in first quarter 1999. Average loans increased by $68,585,000 or 26.61%, average investment securities decreased by $5,999,000 or 8.47%, average Federal Funds decreased by $2,528,000or 15.83% and average interest-bearing deposits in other banks decreased by $261,000 or 2.12%, resulting in a net increase in average earning assets of $59,797,000 or 16.75%. The net increase in average earning assets was funded by a net increase in average deposits of 12.75% to $381,249,000 in first quarter 2000 from $338,137,000 in first quarter 1999. Average interest-bearing deposits increased by 13.42% to $345,695,000 in the first quarter 2000 compared to $304,805,000 for the first quarter 1999, while average noninterest-bearing deposits represented 9.33% of average total deposits in first quarter 2000, compared to 8.95% in first quarter 1999 and 8.79% for calendar year 1999. Interest expense increased for the three months ended March 31, 2000 by $708,000 compared to the same period in 1999. The increase is primarily attributable to the increase in average interest-bearing deposits to $345,695,000 for the first quarter 2000 compared to $304,805,000 in first quarter 1999. The combination of the increase in average earning assets and the increase in the net interest margin resulted in an increase of net interest income of $796,000 for the three months ended March 31, 2000 compared to the same period in 1999. Provision for Loan Losses - ------------------------- The allowance for loan losses represents a reserve for potential losses in the loan portfolio, The adequacy of the allowance for loan losses is evaluated periodically based on a review of all significant loans with a particular emphasis on non-accruing, past due and other loans that management believes requires attention, The provision for loan losses is a charge to earnings in the current period to replenish the allowance for loan losses and maintain it at a level that management has determined to be adequate. The provision for loan losses was $477,000 for the three months ended March 31, 2000 as compared to $249,000 for the three months ended March 31, 1999, representing an increase of $228,000 or 91.57%. The increase in the provision for loan losses during the first quarter of 2000 was primarily attributable to increasing the loan loss reserve relevant to the increase in loan volume. Net loans increased to $336,436,000 at March 31, 2000 from $262,255,000 at March 31, 1999 for an increase of 28.29%. Net loan charge-offs represented 90.57% of the provision for loan losses in the first quarter of 2000 as compared to 25.70% in the first quarter l999. Net loan charge-offs for the three months ended March 31, 2000 were 0.13% of average loans, up from 0.02% for the same period last year. Significant charge-offs during the quarter included two agricultural related lines totaling $155,000 and one commercial line of approximately $100,000 . At March 31, 2000 the allowance for loan losses was 1.39% of total loans outstanding as compared to an allowance for loan losses of 1.84% at March 31, 1999 and 1.48% at December 31, 1999. The allowance for loan losses of 1.39% of total loans provided coverage of 72.23% of nonperforming loans and 65.10% of nonperforming assets, compared to 75.69% and 61.37% in the first quarter of 1999 respectively. The determination of the reserve rests upon management's judgment about factors affecting loan quality and assumptions about the economy. Management considers the March 31, 2000 allowance for loan losses adequate to cover potential losses in the loan portfolio. Noninterest Income - ------------------ Noninterest income consists primarily of service charges on deposit accounts. Service charges on deposit accounts amounted to $562,000 in first quarter 2000 compared to $481,000 in first quarter 1999, or an increase of 16.84%. All other non-interest income increased by $29,000 to $285,000 in first quarter 2000 from $256,000 in first quarter 1999. Thus, total noninterest income for first quarter 2000 was $847,000 compared to $737,000 in first quarter 1999, or an increase of 14.93%. 18 Noninterest Expense - ------------------- Noninterest expense increased by 14.19% to $3,082,000 in three months ended March 31, 2000 from $2,699,000 for the same period a year ago. Salaries and benefits had significant increases due to three offices opened during the second half of 1998 and one new office in 1999 and resulted in an increase to $1,735,000 in first quarter 2000 compared to $1,425,000 in first quarter 1999, or an increase of 21.75%. The new offices also resulted in an increase in occupancy expense as first quarter 2000 occupancy expense was $501,000 compared to $468,000 for the same period last year, or an increase of 7.05%. All other noninterest expense increased by $40,000 to $846,000 in first quarter 2000 from $806,000 in first quarter 1999, or an increase of 4.96%. There were no significant variances in other noninterest expense for the two periods. Income Tax Expense - ------------------ Income before taxes increased by 19.88% to $1,779,000 in first quarter 2000 from $1,484,000 in first quarter 1999. The increase in income tax expense is attributable to the increase in net interest income. Income taxes as a percentage of income before taxes increased by 5.4% to 31.82% in first quarter 2000 as compared to 30.19% in first quarter 1999. Income tax expense increased 26.34% to $566,000 in first quarter 2000 as compared to $448,000 in first quarter 1999. Future Outlook - -------------- Colony is an emerging company operating in an industry filled with non-regulated competitors and a rapid pace of consolidation. 2000 brings with it new opportunities for growth in our existing markets, as well as opportunities to expand into new markets through acquisitions and branching. Colony completed the acquisition of Georgia First Mortgage Company during first quarter 2000 to expand its mortgage opportunities. Colony has targeted two new branches in 2000 to be located in Moultrie and Soperton, Georgia. Colony Management Services, Inc. continues to stay abreast of technology changes and its back-office consolidation effort will allow for continued reduction in overhead, while allowing the Company to better serve our customers through improved customer data resources and state-of-the-art technological services. Year 2000 Compliance Issue - -------------------------- Colony initiated a company-wide program to identify and address issues associated with the ability of its in-house systems and outside service providers to properly recognize date-sensitive information as a result of the century change on January 1, 2000 (Year 2000). We are pleased that Colony experienced no Y2K related problems. All of our branches, ATM's and processing systems are working normally in the new millennium. Though the company realized minimal cost in addressing Y2K, we devoted a significant amount of resources over the last two years to remediation efforts for Year 2000 which can now be redirected into more productive projects. Liquidity - --------- The Company's goals with respect to liquidity are to ensure that sufficient funds are available to meet current operating requirements and to provide reserves against unforeseen liquidity requirements. Management continuously reviews the Company's liquidity position, which is maintained on a basis consistent with established internal guidelines and the tests and reviews of the various regulatory authorities. The Company's primary liquidity sources at March 31, 2000 included cash, due from banks, federal funds and short-term investment securities. The Company also has the ability, on a short-term basis, to borrow funds from the Federal Reserve System and to invest in Federal Funds Sold from other financial institutions. The mix of asset maturities contributes to the company's overall liquidity position. Certain Transactions - -------------------- In the normal course of business, officers and directors of the Banks, and certain business organizations and individuals associated with them, maintain a variety of banking relationships with the bank. Transactions with senior officers and directors are made on terms comparable to those available to other bank customers. Forward-Looking Statements - -------------------------- This document contains statements that constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The words "believe", "estimate", "expect", "intend", "anticipate" and similar expressions and variations thereof identify certain of such forward-looking statements, which speaks only as of the dates which they were made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Users are cautioned that any such 19 forward-looking statements are not guarantees of future performance and involve risks and uncertainties and that actual results may differ materially from those indicated in the forward-looking statements as a result of various factors. Users are therefore cautioned not to place undue reliance on these forward- looking statements. BUSINESS General The Company was organized in 1983 as a bank holding company through the merger of The Bank of Fitzgerald with a subsidiary of the Company. Since that time, The Bank of Fitzgerald, which was formed by principals of Colony Bankcorp, Inc. in 1976, has operated as wholly-owned subsidiary of the Company. In April 1984, Colony Bankcorp, Inc. acquired Community Bank of Wilcox, and in November 1984, Ashburn Bank became a wholly-owned subsidiary of Colony Bankcorp, Inc. Colony Bankcorp, Inc. continued its growth with the acquisition of The Bank of Dodge County in September 1985. In August 1991, Colony Bankcorp, Inc. acquired The Bank of Worth. In November 1996, Colony Bankcorp, Inc. acquired Colony Bank Southeast and in November, 1996 formed a non-bank subsidiary Colony Management Services, Inc. Through its six subsidiary banks, Colony Bankcorp, Inc. operates a full-service banking business and offers a broad range of retail and commercial banking services including checking, savings, NOW accounts, money market and time deposits of various types; loans for business, agriculture, real estate, personal uses, home improvement and automobiles; credit card; letters of credit; trust services investment, and discount brokerage services; IRA's, safe deposit box rentals, bank money orders, and electronic funds transfer services, including wire transfers and automated teller machines. Each of the Banks is a state chartered institution whose customer deposits are insured up to applicable limits by the Federal Deposit Insurance Corporation. On April 2, 1998, the Company was listed on Nasdaq National Market. The Company's common stock trades on the Nasdaq Stock Market under the symbol "CBAN". The Company presently has 915 shareholders of record as of March 31, 2000. "The Nasdaq Stock Market" or "Nasdaq" is a highly-regulated electronic securities market comprised of competing Market Makers whose trading is supported by a communications network linking them to quotation dissemination, trade reporting and order execution systems. This market also provides specialized automation services for screen-based negotiations of transactions, on-line comparison of transactions, and a range of informational services tailored to the needs of the securities industry, investors and issuers. The Nasdaq Stock Market is operated by The Nasdaq Stock Market, Inc., a wholly-owned subsidiary of the National Association of Securities Dealers, Inc. PART II - OTHER INFORMATION ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K - ----------------------------------------- A. Exhibits - None B. There have been no reports filed on Form 8-K for the quarter ended March 31, 2000. 20 SIGNATURE Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. COLONY BANKCORP, INC. May 5, 2000 /s/ James D. Minix - --------------------- ----------------------------- Date James D. Minix, President and Chief Executive Officer /s/ Terry L. Hester --------------------------------------------- Terry L. Hester, Executive Vice President and Chief Financial Officer 21 EX-27 2 FINANCIAL DATA SCHEDULE
9 1,000 3-MOS DEC-31-2000 JAN-01-2000 MAR-31-2000 10,006 12,444 12,880 0 61,306 735 718 341,168 4,728 458,032 390,470 11,856 3,562 16,049 0 0 4,440 31,655 458,032 7,992 914 366 9,272 4,357 4,781 4,491 477 0 3,082 1,779 1,779 0 0 1,213 0.27 0.27 4.38 5,351 1,195 230 0 4,682 499 68 4,728 4,728 0 0
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