EX-99.(A) 5 0005.txt CONSOLIDATED FINANCIAL STATEMENTS EXHIBIT 99(a) MCNAIR, MCLEMORE, MIDDLEBROOKS & CO., LLP CERTIFIED PUBLIC ACCOUNTANTS A PARTNERSHIP INCLUDING A PROFESSIONAL CORPORATION RALPH S. McLEMORE, SR., C.P.A. (1963-1977) 389 MULBERRY STREET SIDNEY B. McNAIR, C.P.A. (1954-1992) POST OFFICE BOX ONE ______________________________________ MACON, GEORGIA 31202 SIDNEY E. MIDDLEBROOKS, C.P.A., P.C. (912) 746-6277 RAY C. PEARSON, C.P.A. FAX (912) 741-8353 J. RANDOLPH NICHOLS, C.P.A. WILLIAM H. EPPS, JR., C.P.A. 1117 MORNINGSIDE DRIVE RAYMOND A. PIPPIN, JR., C.P.A. POST OFFICE BOX 1287 JERRY A. WOLFE, C.P.A. PERRY, GA 31069 W. E. BARFIELD, JR., C.P.A. (912) 987-0947 HOWARD S. HOLLEMAN, C.P.A. FAX (912) 987-0526 F. GAY McMICHAEL, C.P.A. RICHARD A. WHITTEN, JR., C.P.A. ELIZABETH WARE HARDIN, C.P.A. CAROLINE E. GRIFFIN, C.P.A. RONNIE K. GILBERT, C.P.A. REPORT OF INDEPENDENT ACCOUNTANTS The Board of Directors and Stockholders Colony Bankcorp, Inc. and Subsidiaries We have audited the accompanying consolidated balance sheets of Colony Bankcorp, Inc. and Subsidiaries as of December 31, 2000 and 1999 and the related consolidated statements of income, comprehensive income, changes in stockholders' equity and cash flows for each of the years in the three-year period ended December 31, 2000. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Colony Bankcorp, Inc. and Subsidiaries as of December 31, 2000 and 1999 and the results of operations and cash flows for each of the years in the three-year period ended December 31, 2000 in conformity with generally accepted accounting principles. McNAIR, McLEMORE, MIDDLEBROOKS & CO., LLP Macon, Georgia February 7, 2001 F-1 COLONY BANKCORP, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31
ASSETS 2000 1999 ------------- ------------- Cash and Balances Due from Depository Institutions $ 18,594,312 $ 22,549,919 Federal Funds Sold 21,675,000 15,290,000 Investment Securities Available for Sale, at Fair Value 70,222,242 61,856,218 Held to Maturity, at Cost (Fair Value of $290,732 and $937,449 as of December 31, 2000 and 1999, Respectively) 293,020 963,196 ------------- ------------- 70,515,262 62,819,414 Loans Held for Sale 1,512,683 -- Loans 388,006,830 315,440,689 Allowance for Loan Losses (5,661,315) (4,682,024) Unearned Interest and Fees (3,954) (5,379) ------------- ------------- 382,341,561 310,753,286 Premises and Equipment 14,047,269 12,847,033 Other Real Estate 349,121 883,257 Other Assets 10,867,389 10,129,025 ------------- ------------- Total Assets $ 519,902,597 $ 435,271,934 ============= =============
The accompanying notes are an integral part of these balance sheets. F-2 COLONY BANKCORP, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31
LIABILITIES AND STOCKHOLDERS' EQUITY 2000 1999 ------------- ------------- Deposits Noninterest-Bearing $ 38,648,547 $ 33,720,097 Interest-Bearing 411,363,397 340,730,166 ------------- ------------- 450,011,944 374,450,263 Borrowed Money 25,085,719 21,966,801 Other Liabilities 4,594,801 3,844,232 Stockholders' Equity Common Stock, Par Value $1 a Share; Authorized 20,000,000 Shares, Issued 4,440,276 and 4,435,026 Shares as of December 31, 2000 and 1999, Respectively 4,440,276 4,435,026 Paid-In Capital 21,602,953 21,537,328 Retained Earnings 14,436,056 10,766,844 Restricted Stock - Unearned Compensation (47,250) -- Accumulated Other Comprehensive Income, Net of Tax (221,902) (1,728,560) ------------- ------------- 40,210,133 35,010,638 ------------- ------------- Total Liabilities and Stockholders' Equity $ 519,902,597 $ 435,271,934 ============= =============
The accompanying notes are an integral part of these balance sheets. F-3 COLONY BANKCORP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME FOR THE YEARS ENDED DECEMBER 31
2000 1999 1998 ----------- ----------- ----------- Interest Income Loans, Including Fees $36,332,732 $28,344,263 $25,851,093 Federal Funds Sold 1,128,886 602,017 1,125,395 Deposits with Other Banks 127,820 467,316 49,455 Investment Securities U. S. Treasury -- -- 40,461 U. S. Government Agencies 3,253,912 3,212,869 2,957,590 State, County and Municipal 355,909 428,278 393,179 Other Investments 465,200 62,328 93,666 Dividends on Other Investments 93,348 143,245 141,847 ----------- ----------- ----------- 41,757,807 33,260,316 30,652,686 ----------- ----------- ----------- Interest Expense Deposits 20,373,735 15,972,709 14,624,765 Federal Funds Purchased 17,966 16,198 21,518 Borrowed Money 1,873,008 1,125,446 874,782 ----------- ----------- ----------- 22,264,709 17,114,353 15,521,065 ----------- ----------- ----------- Net Interest Income 19,493,098 16,145,963 15,131,621 Provision for Loan Losses 2,279,810 1,166,000 1,157,330 ----------- ----------- ----------- Net Interest Income After Provision for Loan Losses 17,213,288 14,979,963 13,974,291 ----------- ----------- ----------- Noninterest Income Service Charges on Deposits 2,566,669 2,269,836 1,931,721 Other Service Charges, Commissions and Fees 413,930 673,506 372,918 Securities Gains -- -- 40,838 Other 510,691 176,375 313,156 ----------- ----------- ----------- 3,491,290 3,119,717 2,658,633 ----------- ----------- ----------- Noninterest Expenses Salaries and Employee Benefits 7,463,278 6,450,944 5,721,257 Occupancy and Equipment 2,277,178 2,049,777 1,878,200 Directors' Fees 362,084 354,986 350,125 Securities Losses 494,343 2,115 -- Legal and Professional Fees 450,620 255,644 297,282 Other Real Estate Expense 32,232 113,568 252,089 Other 2,924,789 2,789,965 2,589,551 ----------- ----------- ----------- 14,004,524 12,016,999 11,088,504 ----------- ----------- ----------- Income Before Income Taxes 6,700,054 6,082,681 5,544,420 Income Taxes 2,187,189 1,902,464 1,692,472 ----------- ----------- ----------- Net Income $ 4,512,865 $ 4,180,217 $ 3,851,948 =========== =========== =========== Net Income Per Share of Common Stock Basic $ 1.02 $ 0.94 $ 0.87 =========== =========== =========== Diluted $ 1.02 $ 0.94 $ 0.87 =========== =========== =========== Weighted Average Shares Outstanding 4,439,014 4,435,026 4,426,276 =========== =========== ===========
The accompanying notes are an integral part of these statements. F-4 COLONY BANKCORP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31
2000 1999 1998 ----------- ----------- ----------- Net Income $ 4,512,865 $ 4,180,217 $ 3,851,948 ----------- ----------- ----------- Other Comprehensive Income, Net of Tax Gains (Losses) on Securities Arising During the Year 1,180,392 (1,646,355) 75,842 Reclassification Adjustment 326,266 1,396 (26,953) ----------- ----------- ----------- Unrealized Gains (Losses) on Securities 1,506,658 (1,644,959) 48,889 ----------- ----------- ----------- Comprehensive Income $ 6,019,523 $ 2,535,258 $ 3,900,837 =========== =========== ===========
The accompanying notes are an integral part of these statements. F-5 COLONY BANKCORP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY FOR THE YEARS ENDED DECEMBER 31, 2000, 1999 AND 1998
Restricted Stock - Accumulated Unearned Other Shares Common Paid-In Retained Compen- Comprehensive Outstanding Stock Capital Earnings sation Income Total ----------- ------------ ----------- ----------- ---------- ------------- ----------- Balance, December 31, 1997 2,173,263 $ 21,732,630 $ 1,137,424 $ 6,083,128 $ - $ (132,490) $28,820,962 Common Stock Issuance 44,250 442,500 442,287 884,787 Unrealized Gain on Securities Available for Sale, Net of Tax of $24,951 48,889 48,889 Dividends Paid (510,031) (510,031) Net Income 3,851,948 3,851,948 ----------- ------------ ----------- ----------- ---------- ------------- ----------- Balance, December 31, 1998 2,217,513 22,175,130 1,579,711 9,425,045 - (83,601) 33,096,285 Change in Par Value of Common Stock (19,957,617) 19,957,617 - 100 Percent Stock Dividend 2,217,513 2,217,513 (2,217,513) - Unrealized Loss on Securities Available for Sale, Net of Tax Benefit of ($817,220) (1,644,959) (1,644,959) Dividends Paid (620,905) (620,905) Net Income 4,180,217 4,180,217 ----------- ------------ ----------- ----------- ---------- ------------- ----------- Balance, December 31, 1999 4,435,026 4,435,026 21,537,328 10,766,844 - (1,728,560) 35,010,638 Common Stock Granted 5,250 5,250 65,625 (70,875) - Amortization of Unearned Compensation 23,625 23,625 Unrealized Gain on Securities Available for Sale, Net of Tax of $749,583 1,506,658 1,506,658 Dividends Paid (843,653) (843,653) Net Income 4,512,865 4,512,865 ----------- ------------ ----------- ----------- ---------- ------------- ----------- Balance, December 31, 2000 4,440,276 $ 4,440,276 $21,602,953 $14,436,056 $ (47,250) $ (221,902) $40,210,133 =========== ============ =========== =========== ========== ============= ===========
The accompanying notes are an integral part of these statements. F-6 COLONY BANKCORP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31
2000 1999 1998 ------------ ------------ ------------ Cash Flows from Operating Activities Net Income $ 4,512,865 $ 4,180,217 $ 3,851,948 Adjustments to Reconcile Net Income to Net Cash Provided from Operating Activities Depreciation 1,280,312 1,168,173 975,416 Amortization and Accretion 100,135 176,335 (24,522) Provision for Loan Losses 2,279,810 1,166,000 1,157,330 Deferred Income Taxes (396,917) (211,637) (7,175) Securities (Gains) Losses 494,343 2,115 (40,838) (Gain) Loss on Sale of Equipment (74,923) (12,305) (570) (Gain) Loss on Sale of Other Real Estate and Repossessions (4,872) (19,651) 20,418 Other Real Estate Writedown -- 23,000 (3,906) Change In Interest Receivable (1,024,025) 13,075 (406,960) Prepaid Expenses (179,324) 39,808 (22,718) Interest Payable 453,009 261,657 145,607 Accrued Expenses and Accounts Payable 321,238 198,665 162,348 Other (351,018) (55,757) (51,426) ------------ ------------ ------------ 7,410,633 6,929,695 5,754,952 ------------ ------------ ------------ Cash Flows from Investing Activities Interest-Bearing Deposits in Other Banks 3,802,024 (5,657,411) (42,125) Purchase of Investment Securities Available for Sale (28,893,359) (32,344,903) (87,364,577) Proceeds from Sale of Investment Securities Available for Sale 17,480,023 3,044,183 5,118,297 Proceeds from Maturities, Calls and Paydowns of Investment Securities Available for Sale 4,653,291 35,081,355 65,800,538 Held to Maturity 814,578 604,197 1,750,190 Proceeds from Sale of Equipment 230,125 22,242 135,200 Net Loans to Customers, Net of Loans Received in Business Acquisition (75,493,775) (65,211,495) (20,686,240) Purchase of Premises and Equipment, Net of Property and Equipment Received in Business Acquisition (2,632,908) (2,339,296) (3,661,144) Other Real Estate and Repossessions 1,102,562 1,481,408 1,513,034 Cash Surrender Value of Life Insurance (56,054) (61,481) (34,036) Cash Used in Business Acquisition, Net (111,687) -- ------------ ------------ ------------ (79,105,180) (65,381,201) (37,470,863) ------------ ------------ ------------ Cash Flows from Financing Activities Interest-Bearing Customer Deposits 70,633,231 39,200,292 30,687,650 Noninterest-Bearing Customer Deposits 4,928,450 4,504,459 1,895,808 Proceeds from Borrowed Money 9,697,611 10,700,000 7,500,000 Dividends Paid (754,634) (576,556) (485,642) Principal Payments on Borrowed Money (6,578,694) (3,254,069) (6,053,172) Proceeds from Issuance of Common Stock -- -- 884,787 ------------ ------------ ------------ 77,925,964 50,574,126 34,429,431 ------------ ------------ ------------ Net Increase (Decrease) in Cash and Cash Equivalents 6,231,417 (7,877,380) 2,713,520 Cash and Cash Equivalents, Beginning 31,125,662 39,003,042 36,289,522 ------------ ------------ ------------ Cash and Cash Equivalents, Ending $ 37,357,079 $ 31,125,662 $ 39,003,042 ============ ============ ============
The accompanying notes are an integral part of these statements. F-7 COLONY BANKCORP, INC. AND SUBSIDIARIES 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, Colony Bank of Fitzgerald, Fitzgerald, Georgia; Colony Bank Ashburn, Ashburn, Georgia; Colony Bank Worth, Sylvester, Georgia; Colony Bank of Dodge County, Eastman, Georgia; Colony Bank Wilcox, Rochelle, 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. Certain reclassifications have been made in the 1998 and 1999 financial statements to conform to the 2000 presentation. 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 foreclosures 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 its 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. F-8 (1) Summary of Significant Accounting Policies (Continued) Investment Securities The Company records investment securities under Statement of Financial Accounting Standards No. 115, Accounting for Certain Investments in Debt and Equity Securities. Under the provisions of SFAS 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 December 31, 2000 and 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 Held for Sale Mortgage loans held for sale are reported at the lower of cost or market value. The method used to determine this amount is the individual loan method. 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. 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. F-9 (1) Summary of Significant Accounting Policies (Continued) Allowance for Loan Losses (Continued) 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 accumulated 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 acquisition 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. F-10 (1) Summary of Significant Accounting Policies (Continued) 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. Changes in Accounting Principles and Effects of New Accounting Pronouncements In June 1998, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standard (SFAS) No. 133, Accounting for Derivative Instruments and Hedging Activities, which establishes accounting and reporting standards requiring that every derivative instrument (including certain derivative instruments embedded in other contracts) be recorded in the balance sheet as either an asset or liability measured at its fair value. The Statement requires that changes in the derivative's fair value be recognized currently in earnings unless specific hedge accounting criteria are met. Special accounting for qualifying hedges allows a derivative's gain or loss to offset related results on the hedged item in the income statement, and requires that a company must formally document, designate and assess the effectiveness of transactions that receive hedge accounting. In June 1999, the FASB issued SFAS No. 137, Accounting for Derivative Instruments and Hedging Activities-Deferral of the Effective Date of FASB Statement No. 133, which delays the original effective date of SFAS No. 133 until fiscal years beginning after June 15, 2000. In June 2000, the FASB issued SFAS No. 138, Accounting for Certain Derivative Instruments and Certain Hedging Activities an Amendment of FASB Statement No. 133, which addresses a limited number of issues causing implementation difficulties for certain entities that apply Statement 133. Management does not anticipate that the derivative statements will have a material effect, if any, on the financial position and results of operations of Colony. During the second quarter of 1998, the American Institute of Certified Public Accountants issued Statement of Position (SOP) 98-5, Accounting for Start-up Costs. SOP 98-5 provides guidance on the financial reporting of start-up costs and organization costs and requires start-up costs to be expensed as incurred. The adoption of the Statement had no impact on Colony's financial position or results of operations. Restricted Stock - Unearned Compensation In 1999, the board of directors of Colony Bankcorp, Inc. adopted a restricted stock grant plan which awards certain executive officers common shares of the Company. The maximum number of shares which may be subject to restricted stock awards is 44,350. During 2000, 5,250 shares were issued under this plan. The shares are recorded at fair market value (on the date granted) as a separate component of stockholders' equity. The cost of these shares is being amortized against earnings using the straight-line method over 3 years (the restriction period). F-11 (2) Cash and Balances Due from Depository Institutions Components of cash and balances due from depository institutions are as follows as of December 31: 2000 1999 ----------- ----------- Cash on Hand and Cash Items $ 4,845,555 $ 7,457,109 Noninterest-Bearing Deposits with Other Banks 10,836,523 8,378,553 Interest-Bearing Deposits with Other Banks 2,912,234 6,714,257 ----------- ----------- $18,594,312 $22,549,919 =========== =========== (3) Investment Securities Investment securities as of December 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 $ 15,112,106 $ 44,753 $ (36,255) $ 15,120,604 Other 35,508,778 57,154 (299,853) 35,266,079 State, County and Municipal 8,043,933 32,970 (56,285) 8,020,618 Corporate Obligations 9,007,070 206,165 9,213,235 The Banker's Bank Stock 50,000 50,000 Federal Home Loan Bank Stock 1,609,700 1,609,700 Marketable Equity Securities 1,130,022 (188,016) 942,006 ------------ ------------ ------------ ------------ $ 70,461,609 $ 341,042 $ (580,409) $ 70,222,242 ============ ============ ============ ============ Securities Held to Maturity State, County and Municipal $ 293,020 $ -- $ (2,288) $ 290,732 ============ ============ ============ ============
The amortized cost and fair value of investment securities as of December 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. F-12 (3) Investment Securities (Continued)
Securities ---------------------------------------------------------------------------- Available for Sale Held to Maturity ------------------------------------ ------------------------------------ Amortized Fair Amortized Fair Cost Value Cost Value ---------------- ---------------- --------------- ---------------- Due in One Year or Less $ 5,902,374 $ 5,884,271 $ 100,000 $ 99,913 Due After One Year Through Five Years 32,939,472 32,674,079 Due After Five Years Through Ten Years 4,400,683 4,418,091 Due After Ten Years 310,183 310,257 193,020 190,819 ---------------- ---------------- --------------- ---------------- 43,552,712 43,286,698 293,020 290,732 Corporate Obligations 9,007,069 9,213,234 Federal Home Loan Bank Stock 1,609,700 1,609,700 The Banker's Bank Stock 50,000 50,000 Marketable Equity Securities 1,130,022 942,006 Mortgage Backed Securities 15,112,106 15,120,604 ---------------- ---------------- --------------- ---------------- $ 70,461,609 $ 70,222,242 $ 293,020 $ 290,732 ================ ================ =============== ================
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 $ 4,628,732 $ (138,957) $ 4,489,775 Other 48,290,906 (1,954,827) 46,336,079 State, County and Municipal 8,826,558 $ 2,789 (165,002) 8,664,345 The Banker's Bank Stock 50,000 50,000 Federal Home Loan Bank Stock 1,425,600 1,425,600 Marketable Equity Securities 1,130,022 (239,603) 890,419 ---------------- ---------------- --------------- ---------------- $ 64,351,818 $ 2,789 $ (2,498,389) $ 61,856,218 ================ ================ =============== ================ Securities Held to Maturity State, County and Municipal $ 963,196 $ 12 $ (25,759) $ 937,449 ================ ================ =============== ================
Proceeds from sales of investments available for sale were $17,480,023 in 2000, $3,044,183 in 1999 and $5,118,297 in 1998. Gross realized gains totaled $336, $2,720 and $40,838 in 2000, 1999 and 1998, respectively. Gross realized losses totaled $494,679 in 2000, $4,835 in 1999 and $0 in 1998, respectively. Investment securities having a carrying value approximating $32,657,900 and $28,317,600 as of December 31, 2000 and 1999, respectively, were pledged to secure public deposits and for other purposes. F-13 (4) Loans The composition of loans as of December 31 are: 2000 1999 ------------ ------------ Commercial, Financial and Agricultural $ 77,447,854 $ 42,594,703 Real Estate-Construction 5,960,659 4,003,226 Real Estate-Farmland 23,411,176 24,178,687 Real Estate-Other 207,395,518 185,662,574 Installment Loans to Individuals 59,862,199 48,226,090 All Other Loans 13,929,424 10,775,409 ------------ ------------ $388,006,830 $315,440,689 ============ ============ 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 $5,164,263 and $5,333,917 as of December 31, 2000 and 1999, respectively. Foregone interest on nonaccrual loans approximated $575,000 in 2000, $524,000 in 1999 and $611,000 in 1998. 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 and for the years then ended follows: 2000 1999 ------------ ------------ Total Investment in Impaired Loans $ 490,987 $ 885,036 Less Allowance for Impaired Loan Losses (73,651) (106,321) ------------ ------------ Net Investment, December 31 $ 417,336 $ 778,715 ============ ============ Average Investment during the Year $ 688,924 $ 2,116,272 ============ ============ Income Recognized during the Year $ 57,147 $ 71,890 ============ ============ Income Collected during the Year $ 57,147 $ 69,404 ============ ============ F-14 (5) Allowance for Loan Losses Transactions in the allowance for loan losses are summarized below for the years ended December 31:
2000 1999 1998 ----------- ----------- ----------- Balance, Beginning $ 4,682,024 $ 4,726,161 $ 4,575,265 Provision Charged to Operating Expenses 2,279,810 1,166,000 1,157,330 Loans Charged Off (1,541,952) (1,639,943) (1,409,770) Loan Recoveries 241,433 429,806 403,336 ----------- ----------- ----------- Balance, Ending $ 5,661,315 $ 4,682,024 $ 4,726,161 =========== =========== ===========
The allowances for loan losses presented above include allowances for impaired loan losses. Transactions in the allowance for impaired loan losses during 2000, 1999 and 1998 were as follows:
2000 1999 1998 ----------- ----------- ----------- Balance, Beginning $ 106,321 $ 374,675 $ 460,703 Provision Charged to Operating Expenses 150,679 (144,862) 14,267 Loans Charged Off (218,145) (123,492) (100,295) Loan Recoveries 34,796 -- -- ----------- ----------- ----------- Balance, Ending $ 73,651 $ 106,321 $ 374,675 =========== =========== ===========
(6) Premises and Equipment Premises and equipment are comprised of the following as of December 31:
2000 1999 ----------- ----------- Land $ 1,769,274 $ 1,571,779 Building 11,013,457 9,841,094 Furniture, Fixtures and Equipment 8,770,606 7,775,341 Leasehold Improvements 262,344 326,963 Construction in Progress 47,920 95,746 ----------- ----------- 21,863,601 19,610,923 Accumulated Depreciation (7,816,332) (6,763,890) ----------- ----------- $14,047,269 $12,847,033 =========== ===========
Depreciation charged to operations totaled $1,280,312 in 2000, $1,168,173 in 1999 and $975,416 in 1998. F-15 (6) Premises and Equipment (Continued) Certain Company facilities and equipment are leased under various operating leases. Rental expense approximated $153,500 for 2000, $137,600 for 1999 and $147,800 for 1998. Future minimum rental payments as of December 31, 2000 are as follows: Year Ending December 31 Amount ----------- -------------- 2001 $ 149,165 2002 95,828 2003 68,517 2004 10,104 2005 1,438 -------------- $ 325,052 ============== (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. The components of income tax expense for the years ended December 31 are as follows: 2000 1999 1998 ----------- ----------- ----------- Current Federal Expense $ 2,484,106 $ 2,090,601 $ 1,641,502 Deferred Federal Benefit (396,917) (211,637) (7,175) ----------- ----------- ----------- Federal Income Tax Expense 2,087,189 1,878,964 1,634,327 Current State Income Tax Expense 100,000 23,500 58,145 ----------- ----------- ----------- $ 2,187,189 $ 1,902,464 $ 1,692,472 =========== =========== =========== The federal income tax expense of $2,087,189 in 2000, $1,878,964 in 1999 and $1,634,327 in 1998 is less than the income taxes computed by applying the federal statutory rate of 34 percent to income before income taxes. The reasons for the differences are as follows: F-16 (7) Income Taxes (Continued) 2000 1999 1998 ----------- ----------- ----------- Statutory Federal Income Taxes $ 2,278,018 $ 2,068,112 $ 1,885,103 Tax-Exempt Interest (172,891) (187,304) (179,152) Interest Expense Disallowance 33,662 34,023 31,011 Premiums on Officers' Life Insurance (18,489) (20,904) (23,828) Meal and Entertainment Disallowance 4,619 4,591 5,467 State Income Taxes (47,938) (22,311) (17,527) Other 10,208 2,757 (66,747) ----------- ----------- ----------- Actual Federal Income Taxes $ 2,087,189 $ 1,878,964 $ 1,634,327 =========== =========== =========== Deferred taxes in the accompanying balance sheets as of December 31 include the following: 2000 1999 ----------- ----------- Deferred Tax Assets Allowance for Loan Losses $ 1,333,833 $ 935,208 Deferred Compensation 233,712 221,909 Other Real Estate -- 7,820 Other 7,816 2,099 ----------- ----------- 1,575,361 1,167,036 Deferred Tax Liabilities Premises and Equipment (285,785) (274,377) ----------- ----------- 1,289,576 892,659 Deferred Tax Asset on Unrealized Securities Losses 17,456 767,039 ----------- ----------- Net Deferred Tax Assets $ 1,307,032 $ 1,659,698 =========== =========== (8) Deposits Components of interest-bearing deposits as of December 31 are as follows: 2000 1999 ------------ ------------ Interest-Bearing Demand $ 72,833,119 $ 66,418,353 Savings 13,072,303 13,541,366 Time, $100,000 and Over 111,874,988 90,459,902 Other Time 213,582,987 170,310,545 ------------ ------------ $411,363,397 $340,730,166 ============ ============ The aggregate amount of short-term jumbo certificates of deposit, each with a minimum denomination of $100,000, was approximately $99,262,800 and $81,129,000 as of December 31, 2000 and 1999, respectively. F-17 (8) Deposits (Continued) As of December 31, 2000, the scheduled maturities of certificates of deposit are as follows: Year Amount ------------------- --------------- 2001 $268,753,114 2002 32,342,196 2003 13,673,362 2004 2,867,009 2005 and Thereafter 7,822,294 ------------ $325,457,975 ============ (9) Borrowed Money Borrowed money at December 31 is summarized as follows: 2000 1999 ----------- ----------- Federal Home Loan Bank Advances $23,800,000 $20,700,000 First Port City Note Payable 674,290 674,240 The Banker's Bank Note Payable 611,429 592,561 ----------- ----------- $25,085,719 $21,966,801 =========== =========== Advances from the Federal Home Loan Bank (FHLB) have maturities ranging from 2001 to 2010 and interest rates ranging from 5.51 percent to 6.98 percent. 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. First Port City note payable was renewed on January 29, 2000 with additional funds added for an amount totaling $963,200. Annual principal payments of $96,320 are due with interest paid quarterly at The Wall Street Prime minus one half percent. The debt is secured by commercial real estate in downtown Fitzgerald, which includes the parent company's facilities. Any unpaid balance is due January 29, 2003. The Banker's Bank note payable was renewed on October 23, 2000 for $625,000 at a rate of The Wall Street Prime minus one half percent. Payments are due monthly with the entire unpaid balance due October 23, 2003. The debt is secured by all furniture, fixtures, machinery, equipment and software of Colony Management Services, Inc. Colony Bankcorp, Inc. guarantees the debt. F-18 (9) Borrowed Money (Continued) The aggregate stated maturities of borrowed money at December 31, 2000 are as follows: Year Amount ------------------- ---------------- 2001 $6,515,550 2002 4,935,330 2003 3,634,839 2004 1,000,000 2005 and Thereafter 9,000,000 ----------- $25,085,719 =========== (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 $369,334 for 2000, $328,256 for 1999 and $264,222 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. addressees approximated $1,770,000 as of December 31, 2000 and $1,705,000 as of December 31, 1999. Unfulfilled loan commitments as of December 31, 2000 and 1999 approximated $40,495,000 and $43,197,000, respectively. No losses are anticipated as a result of commitments and contingencies. (12) Deferred Compensation Plan The Banks have deferred compensation plans covering directors choosing to participate through individual deferred compensation contracts. In accordance with terms of the contracts, the Banks are committed to pay the directors deferred compensation over a period of 10 years, beginning at age 65. In the event of a director's death before age 65, payments are made to the director's named beneficiary over a period of 10 years, beginning on the first day of the month following the death of the director. Liabilities accrued under the plan totaled $688,286 and $653,573 as of December 31, 2000 and 1999, respectively. Benefit payments under the contracts were $68,378 in 2000 and $63,195 in 1999. Provisions charged to operations totaled $103,091 in 2000, $105,965 in 1999 and $79,278 in 1998. F-19 (13) Interest Income and Expense Interest income of $362,441, $430,435 and $339,632 from state, county and municipal bonds was exempt from regular income taxes in 2000, 1999 and 1998, respectively. Interest on deposits includes interest expense on time certificates of $100,000 or more totaling $6,314,057, $4,756,433 and $4,140,604 for the years ended December 31, 2000, 1999 and 1998, respectively. (14) Supplemental Cash Flow Information Cash payments for the following were made during the years ended December 31:
2000 1999 1998 ----------- ----------- ----------- Interest Expense $21,795,255 $16,882,943 $15,375,481 =========== =========== =========== Income Taxes $ 2,351,106 $ 1,800,000 $ 1,625,000 =========== =========== ===========
Noncash financing and investing activities for the years ended December 31 are as follows:
2000 1999 1998 ----------- ----------- ----------- Acquisitions of Real Estate Through Loan Foreclosures $ 567,006 $ 1,431,704 $ 995,442 =========== =========== =========== Stock Split Effected as Stock Dividend $ -- $ 2,217,513 $ -- =========== =========== =========== Change in Par Value of Common Stock $ -- $19,957,617 $ -- =========== =========== =========== Acquisitions, Net of Cash Acquired: Cash Paid, Less Acquired $ 111,687 $ -- $ -- Liabilities 458,273 -- -- ----------- ----------- ----------- Fair Value of Assets Acquired $ 569,960 $ -- $ -- =========== =========== ===========
F-20 (15) Related Party Transactions The aggregate balance of direct and indirect loans to directors, executive officers or principal holders of equity securities of the Company was $12,098,184 as of December 31, 2000 and $8,288,667 as of December 31, 1999. All such loans were made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other persons and do not involve more than a normal risk of collectibility. A summary of activity of related party loans is shown below: 2000 1999 ------------ ------------ Balance, Beginning $ 8,288,667 $ 6,844,196 New Loans 11,357,415 8,007,259 Repayments (7,604,013) (6,811,597) Transactions Due to Changes in Directors 56,115 248,809 ------------ ------------ Balance, Ending $ 12,098,184 $ 8,288,667 ============ ============ (16) Fair Value of Financial Instruments SFAS No. 107, Disclosures about Fair Value of Financial Instruments, requires disclosure of fair value information about financial instruments, whether or not recognized on the face of the balance sheet, for which it is practicable to estimate that value. The assumptions used in the estimation of the fair value of Colony Bankcorp, Inc. and Subsidiaries' financial instruments are detailed below. Where quoted prices are not available, fair values are based on estimates using discounted cash flows and other valuation techniques. The use of discounted cash flows can be significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. The following disclosures should not be considered a surrogate of the liquidation value of the Company, but rather a good-faith estimate of the increase or decrease in value of financial instruments held by the Company since purchase, origination or issuance. Cash and Short-Term Investments - For cash, due from banks, bank-owned deposits and federal funds sold, the carrying amount is a reasonable estimate of fair value. Investment Securities - Fair values for investment securities are based on quoted market prices. Loans - The fair value of fixed rate loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings. For variable rate loans, the carrying amount is a reasonable estimate of fair value. Deposit Liabilities - The fair value of demand deposits, savings accounts and certain money market deposits is the amount payable on demand at the reporting date. The fair value of fixed maturity certificates of deposit is estimated by discounting the future cash flows using the rates currently offered for deposits of similar remaining maturities. Standby Letters of Credit and Commitments to Extend Credit - Because standby letters of credit and commitments to extend credit are made using variable rates, the contract value is a reasonable estimate of fair value. F-21 (16) Fair Value of Financial Instruments (Continued) The carrying amount and estimated fair values of the Company's financial instruments as of December 31 are as follows:
2000 1999 ----------------------------------- ----------------------------------- Carrying Estimated Carrying Estimated Amount Fair Value Amount Fair Value --------------- ----------------- ---------------- ---------------- (in Thousands) Assets Cash and Short-Term Investments $40,269 $40,269 $ 37,840 $ 37,840 Investment Securities Available for Sale 70,222 70,222 61,856 61,856 Investment Securities Held to Maturity 293 291 963 937 Loans 388,007 386,591 315,441 310,804 Loans Held for Sale 1,513 1,513 - - Liabilities Deposits 450,012 451,823 374,450 374,866 Borrowed Money 25,086 25,086 21,967 21,967 Unrecognized Financial Instruments Standby Letters of Credit - 1,770 - 1,705 Commitments to Extend Credit - 40,495 - 43,197
Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company's entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company's financial instruments, fair value estimates are based on many judgments. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Significant assets and liabilities that are not considered financial instruments include deferred income taxes and premises and equipment. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates. (17) 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 2001 without prior approval from the banking regulatory agencies approximates $2,256,000. Upon approval by regulatory authorities, the banks may pay cash dividends to the parent company in excess of regulatory limitations. F-22 (17) Regulatory Capital Matters (Continued) The Company is subject to various regulatory capital requirements administered by the 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 classification 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 I capital to risk-weighted assets, and of Tier I capital to average assets. The amounts and ratios as defined in regulations are presented hereafter. Management believes, as of December 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 Under For Capital Prompt Corrective Actual Adequacy Purposes Action Provisions ------------------------------ ---------------------------- ----------------------------- Amount Ratio Amount Ratio Amount Ratio ---------------- ----------- --------------- --------- --------------- ---------- As of December 31, 2000 Total Capital to Risk-Weighted Assets $44,990,413 10.88% $33,068,040 8.00% $41,335,050 10.00% Tier I Capital to Risk-Weighted Assets 39,817,428 9.63 16,534,020 4.00 24,801,030 6.00 Tier I Capital to Average Assets 39,817,428 7.80 20,397,120 4.00 25,496,400 5.00 As of December 31, 1999 Total Capital to Risk-Weighted Assets 40,266,776 11.88 27,107,916 8.00 33,884,895 10.00 Tier I Capital to Risk-Weighted Assets 36,025,666 10.63 13,553,929 4.00 20,330,894 6.00 Tier I Capital to Average Assets 36,025,666 8.39 17,175,526 4.00 21,469,408 5.00
(18) Business Combinations On March 2, 2000, Colony Bank Ashburn purchased the capital stock of Georgia First Mortgage Company in a business combination accounted for as a purchase. The purchase price of $346,725 was the fair value of the net assets of Georgia First Mortgage at the date of purchase. Georgia First Mortgage is primarily engaged in residential real estate mortgage lending in the state of Georgia. F-23 (19) Financial Information of Colony Bankcorp, Inc. (Parent Only) The parent company's balance sheets as of December 31, 2000 and 1999 and the related statements of income and comprehensive income and cash flows for each of the years in the three-year period then ended are as follows: COLONY BANKCORP, INC. (PARENT ONLY) BALANCE SHEETS DECEMBER 31
ASSETS 2000 1999 ------------ ------------ Cash $ 3,718 $ 247,022 Investment in Subsidiaries, at Equity 39,875,534 34,265,641 Other 1,354,047 1,448,468 ------------ ------------ Total Assets $ 41,233,299 $ 35,961,131 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Dividends Payable $ 266,417 $ 177,401 Notes and Debentures Payable 674,290 674,240 Other 82,459 98,852 ------------ ------------ 1,023,166 950,493 ------------ ------------ Stockholders' Equity Common Stock, Par Value $1 a Share; Authorized 20,000,000 Shares, Issued 4,440,276 and 4,435,026 Shares as of December 31, 2000 and 1999, Respectively 4,440,276 4,435,026 Paid-In Capital 21,602,953 21,537,328 Retained Earnings 14,436,056 10,766,844 Restricted Stock - Unearned Compensation (47,250) -- Accumulated Other Comprehensive Income, Net of Tax (221,902) (1,728,560) ------------ ------------ Total Stockholders' Equity 40,210,133 35,010,638 ------------ ------------ Total Liabilities and Stockholders' Equity $ 41,233,299 $ 35,961,131 ============ ============
F-24 (19) Financial Information of Colony Bankcorp, Inc. (Parent Only) (Continued) COLONY BANKCORP, INC. (PARENT ONLY) STATEMENTS OF INCOME AND COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31
2000 1999 1998 ----------- ----------- ----------- Income Dividends from Subsidiaries $ 1,956,250 $ 1,500,000 $ 2,400,000 Management Fees from Subsidiaries -- -- 175,500 Other 70,423 88,501 76,872 ----------- ----------- ----------- 2,026,673 1,588,501 2,652,372 ----------- ----------- ----------- Expenses Interest 59,295 74,668 117,431 Amortization 17,951 17,951 17,951 Other 813,804 742,622 717,773 ----------- ----------- ----------- 891,050 835,241 853,155 ----------- ----------- ----------- Income Before Taxes and Equity in Undistributed Earnings of Subsidiaries 1,135,623 753,260 1,799,217 Income Tax Benefits 274,007 234,576 169,953 ----------- ----------- ----------- Income Before Equity in Undistributed Earnings of Subsidiaries 1,409,630 987,836 1,969,170 Equity in Undistributed Earnings of Subsidiaries 3,103,235 3,192,381 1,882,778 ----------- ----------- ----------- Net Income 4,512,865 4,180,217 3,851,948 ----------- ----------- ----------- Other Comprehensive Income, Net of Tax Gains (Losses) on Securities Arising During the Year 1,180,392 (1,646,355) 75,842 Reclassification Adjustment 326,266 1,396 (26,953) ----------- ----------- ----------- Unrealized Gains (Losses) in Securities 1,506,658 (1,644,959) 48,889 ----------- ----------- ----------- Comprehensive Income $ 6,019,523 $ 2,535,258 $ 3,900,837 =========== =========== ===========
F-25 (19) Financial Information of Colony Bankcorp, Inc. (Parent Only) (Continued) COLONY BANKCORP, INC. (PARENT ONLY) STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31
2000 1999 1998 ----------- ----------- ----------- Cash Flows from Operating Activities Net Income $ 4,512,865 $ 4,180,217 $ 3,851,948 Adjustments to Reconcile Net Income to Net Cash Provided from Operating Activities Depreciation and Amortization 114,133 87,349 85,771 Equity in Undistributed Earnings of Subsidiaries (3,103,235) (3,192,381) (1,882,778) Other (11,283) 56,858 37,839 ----------- ----------- ----------- 1,512,480 1,132,043 2,092,780 ----------- ----------- ----------- Cash Flows from Investing Activities Capital Infusion in Subsidiary (1,000,000) -- (1,000,000) Purchases of Premises and Equipment (1,200) (56,062) (110,227) ----------- ----------- ----------- (1,001,200) (56,062) (1,110,227) ----------- ----------- ----------- Cash Flows from Financing Activities Dividends Paid (754,634) (576,556) (485,642) Proceeds from Issuance of Common Stock -- -- 884,787 Principal Payments on Notes and Debentures -- (363,187) (1,280,379) Proceeds from Notes and Debentures 50 -- -- ----------- ----------- ----------- (754,584) (939,743) (881,234) ----------- ----------- ----------- Increase (Decrease) in Cash (243,304) 136,238 101,319 Cash, Beginning 247,022 110,784 9,465 ----------- ----------- ----------- Cash, Ending $ 3,718 $ 247,022 $ 110,784 =========== =========== ===========
(20) Common Stock Split On February 16, 1999, a 100 percent stock split 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. (21) 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. F-26