-----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, Ww4N7yebhm2qkqCoN6Irx60tTqnIOD4cY0n2aiaGJRDm7ck9Bwmt2mdpiOr8BNRB qgEA46TbDNmmVjkR6eeS4A== 0000950109-97-005289.txt : 19970812 0000950109-97-005289.hdr.sgml : 19970812 ACCESSION NUMBER: 0000950109-97-005289 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970630 FILED AS OF DATE: 19970811 SROS: AMEX 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: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-12436 FILM NUMBER: 97655898 BUSINESS ADDRESS: STREET 1: 302 S MAIN ST STREET 2: PO BOX 989 CITY: FITZGERALD STATE: GA ZIP: 31750 BUSINESS PHONE: 9124235446 10QSB 1 FORM 10-QSB SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-QSB QUARTERLY REPORT UNDER SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR QUARTER ENDED JUNE 30, 1997 COMMISSION FILE NUMBER 0-12436 COLONY BANKCORP, INC. --------------------- (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) GEORGIA 58-1492391 ------- ---------- (STATE OF OTHER JURISDICTION) (I.R.S. EMPLOYER) OF 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 JUNE 30, 1997 ----- ---------------------------- COMMON STOCK, $10 PAR VALUE 1,448,842 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, THE BANK OF WORTH, BROXTON STATE BANK AND COLONY MANAGEMENT SERVICES, INC. A. CONSOLIDATED BALANCE SHEETS - JUNE 30, 1997 AND DECEMBER 31, 1996. B. CONSOLIDATED STATEMENTS OF INCOME - FOR THE THREE MONTHS ENDED JUNE 30, 1997 AND 1996 AND FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996. C. CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION - FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996. 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 SIX MONTH PERIOD ENDED JUNE 30, 1997 ARE NOT NECESSARILY INDICATIVE OF THE RESULTS TO BE EXPECTED FOR THE FULL YEAR. 2 COLONY BANKCORP, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS JUNE 30, 1997 AND DECEMBER 31, 1996 (UNAUDITED) (DOLLARS IN THOUSANDS)
ASSETS JUNE 30, 1997 DECEMBER 31, 1996 ------------- ----------------- Cash and Balance Due from Depository Institutions (Note 2) $ 12,751 $ 13,444 Federal Funds Sold 11,240 22,740 Investment Securities (Aggregate Fair Value of $60,954 and $63,328 Respectively) (Note 3) 60,983 63,377 Loans (Notes 4 and 5) 232,812 206,876 Allowance for Loan Losses (4,682) (4,435) Unearned Interest and Fees (10) (13) -------- -------- Total Loans 228,120 202,428 Premises and Equipment (Note 6) 7,825 6,953 Other Real Estate 1,601 2,803 Other Assets 7,984 7,795 -------- -------- Total Assets $330,504 $319,540 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Deposits: Noninterest-Bearing $ 27,681 $ 28,723 Interest-Bearing (Note 8) 258,083 256,953 -------- -------- Total Deposits 285,764 285,676 Borrowed Money: Federal Funds Purchased -0- 160 Other Borrowed Money (Note 9) 15,008 5,496 -------- -------- Total Borrowed Money 15,008 5,656 Other Liabilities 2,496 2,617 Commitments and Contingencies (Note 11) Stockholders' Equity: Common Stock, Par Value $10 a Share; Authorized 5,000,000 shares, Issued 1,448,842 shares as of June 30, 1997 and December 31, 1996 Respectively 14,488 14,488 Paid-In Capital 1,137 1,137 Retained Earnings 11,966 10,145 Net Unrealized Loss on Securities Available for Sale, Net of Tax Benefit of $166 in 1997 and $3 in 1996 (355) (179) -------- -------- Total Stockholders' Equity 27,236 25,591 -------- -------- Total Liabilities and Stockholders' Equity $330,504 $319,540 ======== ========
The accompanying notes are an integral part of these balance sheets. 3 COLONY BANKCORP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME THREE MONTHS ENDED JUNE 30, 1997 AND 1996 AND SIX MONTHS ENDED JUNE 30, 1997 AND 1996 (UNAUDITED) (DOLLARS IN THOUSANDS)
Three Months Ended Six Months Ended 6/30/97 6/30/96 6/30/97 6/30/96 ------- ------- ------- ------- Interest Income: Loans, including fees $5,990 $5,516 $11,716 $10,936 Federal Funds Sold 174 177 387 448 Deposits with Other Banks 12 2 26 5 Investment Securities: U.S. Treasury & Federal Agencies 852 722 1,731 1,366 State, County and Municipal 75 76 151 152 Other Investments 20 22 49 50 ------ ------ ------- ------- Total Interest Income 7,123 6,515 14,060 12,957 ------ ------ ------- ------- Interest Expense: Deposits 3,262 3,144 6,455 6,293 Federal Funds Purchased 17 1 22 3 Other Borrowed Money 129 74 221 145 ------ ------ ------- ------- Total Interest Expense 3,408 3,219 6,698 6,441 ------ ------ ------- ------- Net Interest Income 3,715 3,296 7,362 6,516 Provision for Loan Losses 468 501 753 1,145 ------ ------ ------- ------- Net Interest Income After Provision 3,247 2,795 6,609 5,371 ------ ------ ------- ------- Noninterest Income: Service Charge on Deposits 454 445 909 870 Other Service Charges, Commissions & Fees 88 164 223 315 Security Gains, net 2 0 9 3 Other Income 116 60 213 156 ------ ------ ------- ------- Total Noninterest Income 660 669 1,354 1,344 ------ ------ ------- ------- Noninterest Expense: Salaries and Employee Benefits 1,480 1,295 2,746 2,474 Occupancy and Equipment 350 291 687 563 Other Operating Expenses 757 813 1,571 1,520 ------ ------ ------- ------- Total Noninterest Expense 2,587 2,399 5,004 4,557 ------ ------ ------- ------- Income Before Income Taxes $1,320 1,065 2,959 2,158 Income Taxes 402 334 920 664 ------ ------ ------- ------- Net Income $ 918 $ 731 $ 2,039 $ 1,494 ====== ====== ======= ======= Net Income Per Share of Common Stock $0.63 $0.50 $1.41 $ 1.03 ===== ===== ===== ======= Weighted Average Shares Outstanding 1,448,842 1,448,842 1,448,842 1,448,842 ========= ========= ========= =========
The accompanying notes are an integral part of these statements 4 COLONY BANKCORP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS SIX MONTHS ENDED JUNE 30, 1997 AND 1996 (UNAUDITED) (DOLLARS IN THOUSANDS)
1997 1996 ------ ------ CASH FLOW FROM OPERATING ACTIVITIES Net income (loss) $ 2,039 $ 1,494 Adjustments to reconcile net income to net cash provided by operating activities: (Gain) loss on sale of investment securities (9) (3) Depreciation 348 257 Provision for loan losses 753 1,145 Amortization of excess costs 26 24 Other prepaids, deferrals and accruals, net 471 (1,552) -------- -------- Total Adjustments $ 1,589 $ (129) -------- -------- Net cash provided by operating activities $ 3,628 $ 1,365 -------- -------- CASH FLOWS FROM INVESTING ACTIVITIES Purchases of securities available for sale ($ 8,565) ($12,683) Proceeds from sales of securities available for sale 2,998 498 Proceeds from maturities of securities available for sale 7,491 5,871 Purchase of securities held for investment -0- -0- Proceeds from maturities of securities held for investment 191 36 Proceeds from sales of securities held for investment -0- -0- Decrease (Increase) in interest-bearing deposits in banks 297 (317) (Increase) in loans (25,939) (13,198) Purchase of premises and equipment (1,220) (213) -------- -------- Net cash (used in) investing activities ($24,747) ($20,006) -------- -------- CASH FLOW FROM FINANCING ACTIVITIES Net (decrease) increase in deposits $ 88 ($991) Net (decrease) increase in Federal Funds Purchased (160) 1,360 Dividends paid (217) (194) Net (decrease) increase in short term & long-term borrowings 9,512 896 -------- -------- Net cash provided by financing activities $9,223 $ 1,071 -------- -------- Net increase (decrease) in cash and cash equivalents (11,896) (17,570) Cash and cash equivalents at beginning of period 35,293 35,368 -------- -------- Cash and cash equivalents at end of period $23,397 $17,798
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS. 5 COLONY BANKCORP, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in Thousands) (1) Summary of Significant Accounting Policies - ---------------------------------------------- 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; The Bank of Worth, Sylvester, Georgia; The Bank of Dodge County, Eastman, Georgia; Community Bank of Wilcox, Pitts, Georgia,; Broxton State Bank, 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. The following is a description of the more significant of those policies. Basis of 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. 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 June 30, 1997 and December 31, 1996. 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. On January 1, 1995, the Company adopted SFAS No. 114, Accounting by Creditors for Impairment of a Loan and SFAS No. 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. 6 (1) Summary of Significant Accounting Policies (continued) Colony Bankcorp, Inc.'s loans consist of commercial, financial and agricultural loans, real estate mortgage loans and consumer loans primarily to individuals and entities located throughout central and south Georgia. Accordingly, the ultimate collectability of the loans is largely dependent upon economic conditions in the central and south Georgia area. Allowance for Loans 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 judgement 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. 7 (1) Summary of Significant Accounting Policies (continued) 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. (2) Cash and Balances Due from Depository Institutions - ------------------------------------------------------ Components of cash and balances due from depository institutions at June 30, 1997 and December 31, 1996 are as follows:
June 30, 1997 December 31, 1996 ------------- ----------------- Cash on Hand and Cash Items $ 2,673 $ 3,692 Noninterest-Bearing Deposits with Other Banks 9,484 8,861 Interest-Bearing Deposits with Other Banks 594 891 ------- ------- $12,751 $13,444 ======= =======
(3) Investment Securities - ------------------------- Investment securities as of June 30, 1997 are summarized as follows:
Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Securities Available for Sale: U.S. Treasury $ 1,000 $ -0- $ -0- $ 1,000 U.S. Government Agencies: Mortgage-Backed 12,937 49 (134) 12,852 Other 36,245 7 (216) 36,036 State, County & Municipal 4,968 58 (15) 5,011 The Banker's Bank Stock 50 -0- -0- 50 Federal Home Loan Bank Stock 1,334 -0- -0- 1,334 Marketable Equity Securities 1,130 -0- (189) 941 -------- ----- ------- -------- $ 57,664 $ 114 $ (554) $ 57,224 ======== ===== ======= ======== Securities Held to Maturity: U.S. Governmental Agencies $ 2,149 $ -0- $ (18) $ 2,131 State, County and Municipal 1,610 6 (17) 1,599 -------- ----- ------- -------- $ 3,759 $ 6 $ (35) $ 3,730 ======== ===== ======= ========
8 (3) Investment Securities (continued) - ------------------------------------- The amortized cost and fair value of investment securities as of June 30, 1997 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 Fair Amortized Fair Cost Value Cost Value Due in One Year or Less $ 10,521 $ 10,511 $ 1,500 $ 1,493 Due After One Year Through Five Years 30,657 30,497 1,778 1,748 Due After Five Years Through Ten Years 732 738 0 0 Due After Ten Years 303 301 481 489 -------- -------- -------- -------- 42,213 42,047 3,759 3,730 Federal Home Loan Bank Stock 1,334 1,334 The Banker's Bank Stock 50 50 Marketable Equity Securities 1,130 941 Mortgage-Backed Securities 12,937 12,852 -------- -------- -------- -------- $ 57,664 $ 57,224 $ 3,759 $ 3,730 ======== ======== ======== ========
Investment securities as of December 31, 1996 are summarized as follows:
Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value Securities Available for Sale: U.S. Treasury $ 499 $ $ $ 499 U.S. Government Agencies Mortgage-Backed Securities 16,367 78 (94) 16,351 Other 35,702 32 (70) 35,664 State, County & Municipal 5,384 86 (23) 5,447 The Banker's Bank Stock 50 50 Federal Home Loan Bank Stock 483 483 Marketable Equity Securities 1,130 (185) 945 -------- -------- -------- -------- $ 59,615 $ 196 $ (372) $ 59,439 ======== ======== ======== ======== Securities Held to Maturity: U.S. Government and Agencies $ 2,148 $ $ (16) $ 2,132 State, County and Municipal 1,790 3 (36) 1,757 -------- -------- -------- -------- $ 3,938 $ 3 $ (52) $ 3,889 ======== ======== ======== ========
Investment securities having a carrying value approximating $29,797 and $27,618 as of June 30, 1997 and December 31, 1996, respectively, were pledged to secure public deposits and for other purposes. 9 (4) Loans - --------- The composition of loans as of June 30, 1997 and December 31, 1996 was as follows:
June 30, 1997 December 31, 1996 ------------- ----------------- Commercial, Financial and Agricultural $ 45,832 $ 38,776 Real Estate - Construction 1,904 881 Real Estate - Farmland 17,246 25,770 Real Estate - Other 113,409 88,896 Installment Loans to Individuals 46,015 44,608 All Other Loans 8,406 7,945 -------- -------- $232,812 $206,876 ======== ========
Nonaccrual loans are loans for which principal and interest are doubtful of collection in accordance with original loan terms and for which accrual of interest have been discontinued due to payment delinquency. Nonaccrual loans totaled $6,501 and $7,396 as of June 30, 1997 and December 31, 1996, respectively. On June 30, 1997, the Company has 90 day past due loans with principal balances of $969 and restructured loans with principal balances of $19. Effective January 1, 1995, Colony Bankcorp, Inc. recognized impaired loans as nonaccrual loans delinquent in excess of 120 days for which collateral values were insufficient to recover outstanding principal and interest under original loan terms. Impaired loan data as of June 30, 1997 and December 31, 1996 was as follows: Total Investment in Impaired Loans $1,351 Less Allowances for Impaired Loan Losses (419) ------ Net Investment, June 30, 1997 $ 932 ====== Total Investment in Impaired Loans 1,351 Less Allowances for Impaired Loan Losses (419) ------ Net Investment, December 31, 1996 $ 932 ======
(5) Allowances for Loan Losses - ------------------------------ Transactions in the allowance for loan losses are summarized below for six months ended June 30, 1997 and June 30, 1996 as follows:
June 30, 1997 June 30, 1996 ------------- ------------- Balance, Beginning $4,435 $4,051 Provision Charged to Operating Expenses 753 1,145 Loans Charged Off (717) (1,480) Loan Recoveries 211 606 ------ ------ Balance, Ending $4,682 $4,322 ====== ======
10 (6) Premises and Equipment - -------------------------- Premises and equipment are comprised of the following as of June 30, 1997 and December 31, 1996:
June 30, 1997 December 31, 1996 ------------- ----------------- Land $1,154 $ 973 Building 6,104 5,601 Furniture, Fixtures and Equipment 5,489 5,150 Leasehold Improvements 31 31 ------ ------ 12,778 11,755 Accumulated Depreciation (4,953) (4,802) ------ ------ $7,825 $6,953 ====== ======
In 1996, the Company began leasing a supermarket bank unit with a lease period of five years. Rent expense under this operating lease approximated $8,600 for the year ended December 31, 1996. Future minimum lease payments to be paid are as follows:
Year Ending December 31 Amount ----------- ------ 1997 $ 39,600 1998 39,600 1999 39,600 2000 39,600 2001 33,000 -------- $191,400 ========
(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. (8) Deposits - ------------ Components of interest-bearing deposits as of June 30, 1997 and December 31, 1996 are as follows:
June 30, 1997 December 31, 1996 ------------- ----------------- Interest-Bearing Demand $ 48,913 $ 55,297 Savings 11,995 11,724 Time, $100,000 and Over 58,766 54,139 Other Time 138,409 135,793 -------- -------- $258,083 $256,953 ======== ========
11 (9) Other Borrowed Money - ------------------------ Other borrowed money is comprised of the following as of June 30, 1997 and December 31, 1996:
June 30, 1997 December 31, 1996 ------------- ----------------- Debentures payable, due in annual payments of $267 plus interest at variable rates, on November 1, 1997 through November 1, 1999, collateralized by 100% of the common stock of Ashburn Bank. Effective interest rate of 8.0% as of June 30, 1997. $ 801 $ 801 Note payable, due in annual payments of $207 plus quarterly interest at variable rates, balance due December 19, 1997. Collateralized by 100% of the common stock of The Bank of Fitzgerald and 100% of the common stock of The Bank of Worth. Effective interest rate of 8.50% as of June 30, 1997. 925 1,029 Notes payable, due February 26, 1997 with interest at variable rates. Collateralized by commercial real estate in downtown Fitzgerald, Georgia. -0- 291 Notes payable due January 29, 2000 with interest at variable rates. Collateralized by commercial real estate in downtown Fitzgerald, Georgia. Effective interest rate of 8.50% as of June 30, 1997. 867 -0- Advance agreement with the Federal Home Loan Bank of Atlanta, dated December 30, 1996, payable in full on December 30, 1997. Interest rate determined under the daily rate credit program. -0- 1,000 Advance agreement with the Federal Home Loan Bank of Atlanta, dated September 27, 1996, payable in full on September 27, 1997. Interest rate determined under the daily rate credit program. 2,000 2,000 Note payable, due June 13, 1997 with interest at variable rate, due quarterly beginning March 13, 1997. Collateralized by guaranty of Colony Bankcorp, Inc. in addition to all furniture, fixtures, equipment and software of Colony Management Services, Inc. -0- 375 Advance agreement with the Federal Home Loan Bank of Atlanta, dated May 3, 1997, payable in full on May 3, 1998. Interest rate determined under the daily rate credit program. 1,200 -0- Advance agreement with the Federal Home Loan Bank of Atlanta, dated June 30, 1997, payable in full on June 30, 1998. Interest rate determined under the daily rate credit program. 400 -0- Advance agreement with the Federal Home Loan Bank of Atlanta, dated March 5, 1997, payable in full on September 3, 1997. Interest rate determined under the daily rate credit program. 1,400 -0-
12 (9) Other Borrowed Money (continued) - ------------------------
June 30, 1997 December 31, 1996 ------------- ----------------- Advanced agreement with the Federal Home Loan Bank of Atlanta, dated May 22, 1997, payable in full on November 24, 1997. Interest rate determined under the daily rate credit program. 1,500 -0- Advance agreement with the Federal Home Loan Bank of Atlanta, dated May 28, 1997, payable in full on May 28, 2002. Effective interest rate of 6.98% on June 30, 1997. 1,000 -0- Advance agreement with the Federal Home Loan Bank of Atlanta, dated May 30, 1997, payable in full on February 27, 1998. Interest rate determined under the daily rate credit program. 1,000 -0- Advance agreement with the Federal Home Loan Bank of Atlanta, dated June 23, 1997, payable in full on February 23, 1999. Interest rate determined under the daily rate credit program. 1,000 -0- Note payable dated June 13, 1997, due on December 13, 1997 with interest at various rate. Collateralized by guaranty of Colony Bankcorp, Inc. in addition to all furniture, fixtures, equipment, software of Colony Management Services, Inc. Effective interest rate of 8.00% on June 30, 1997 415 -0- Advance agreement with the Federal Reserve Bank of Atlanta, dated June 1, 1997, payable in full on June 30, 1997. Interest rate determined under the daily rate credit program. 2,500 -0- ----- ------- $15,008 $5,496 ======= =======
Maturities of borrowed money for the next five years as of June 30, 1997:
Year Amount 1997 $ 9,007 1998 2,963 1999 1,363 Thereafter 1,675 ------- $15,008 =======
(10) Profit Sharing Plan - ------------------------ The Company has a profit sharing plan that covers substantially all employees who meet certain age and service requirement. It is the Company's policy to make contributions to the plan as approved annually by the board of directors. 13 (11) Commitments and Contingent Liabilities - ------------------------------------------- In the normal course of business, certain commitments and contingencies are incurred which are not reflected in the consolidated financial statements. The Bank had commitments under standby letters of credit to U.S. addresses approximating $2,083 as of June 30, 1997 and $3,128 as of December 31, 1996. Unfulfilled loan commitments as of June 30, 1997 and December 31, 1996 approximated $30,183 and $19,696 respectively. No losses are anticipated as a result of commitments and contingencies. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitment amounts expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The credit risk involved in issuing these financial instruments is essentially the same as that involved in extending loans to customers. The amount of collateral obtained, if deemed necessary by the Banks upon extension of credit, is based on management's credit evaluation of the borrower. Collateral held varies, but may include accounts receivable, inventory, property, plant and equipment and income-producing commercial properties. The Banks do not anticipate any material losses as a result of the commitments and contingent liabilities. The nature of the business of the Banks is such that it ordinarily results in a certain amount of litigation. In the opinion of management and counsel for the company and the Banks, there is no litigation in which the outcome will have a material effect on the consolidated financial statements. (12) Earnings Per Share - ----------------------- Earnings per share are calculated on the basis of the weighted average number of shares outstanding. (13) 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 1997 without prior approval from the banking regulatory agencies approximates $1,562. 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 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 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 June 30, 1997 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. 14
To Be Well Capitalized For Capital Under Prompt Corrective Actual Adequacy Purposes Action Provisions Amount Ratio Amount Ratio Amount Ratio As of June 30, 1997 Total Capital to Risk-Weighted Assets $29,986 12.12% $19,790 8.00% $24,738 10.00% Tier 1 Capital to Risk-Weighted Assets 26,874 10.86% 9,895 4.00% 14,843 6.00% Tier 1 Capital to Average Assets 26,874 8.38% 12,823 4.00% 16,029 5.00% As of December 31, 1996 Total Capital to Risk-Weighted Assets $27,835 12.21% $18,238 8.00% $22,797 10.00% Tier 1 Capital to Risk-Weighted Assets 24,967 10.96% 9,112 4.00% 13,668 6.00% Tier 1 Capital to Average Assets 24,967 7.65% 13,054 4.00% 16,318 5.00%
(14) Financial Information of Colony Bankcorp, Inc. (Parent Only) - ----------------------------------------------------------------- The parent company's balance sheets as of June 30, 1997 and December 31, 1996 and the related statements of income are as follows: COLONY BANKCORP, INC. (PARENT ONLY) BALANCE SHEETS
ASSETS June 30, 1997 December 31, 1996 Cash $ 173 $ 61 Investments in Subsidiaries at Equity 28,552 26,915 Other 1,323 979 ------- ------- Total Assets $30,048 $27,955 ======= ======= LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Dividends Payable $ 109 $ 109 Notes and Debentures Payable 2,593 2,121 Other 110 134 ------- ------- 2,812 2,364 Stockholders' Equity Common Stock, Par Value $10; 5,000,000 Shares Authorized, 1,448,842 Shares Issued and Outstanding as of June 30, 1997 and December 31, 1996 $14,488 $14,488 Paid-In-Capital 1,137 1,137 Retained Earnings 11,966 10,145 Net Unrealized Loss on Securities Available for Sale, Net of Tax (355) (179) ------- ------- Total Stockholders' Equity 27,236 25,591 ------- ------- Total Liabilities and Stockholders' Equity $30,048 $27,955 ======= =======
15 (14) Financial Information of Colony Bankcorp, Inc. (Parent Only) (Continued) - ----------------------------------------------------------------------------- COLONY BANKCORP, INC. (PARENT ONLY) STATEMENT OF INCOME FOR THE SIX MONTHS ENDED JUNE 30, 1997 AND 1996
June 30, 1997 June 30, 1996 Income Dividends from Subsidiaries $ 573 $ 600 Management Fees from Subsidiaries 144 253 Data Processing Fees 0 198 Other 15 7 ------ ------ $ 732 $1,058 Expenses Interest $ 94 $ 92 Salaries and Benefits 200 350 Other 159 254 ------ ------ $ 453 $ 696 ------ ------ Income Before Taxes and Equity in Undistributed Earnings of Subsidiaries 279 362 Income Tax (Benefits) (109) (78) ------ ------ Income Before Equity in Undistributed Earnings of Subsidiaries 388 440 Equity in Undistributed Earnings of Subsidiaries 1,651 1,054 ------ ------ Net Income $2,039 $1,494 ====== ======
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 and obtaining new deposits. For the six months ended June 30, 1997, the Company was successful in meeting its liquidity needs by increasing deposits 0.03% to $285,764,000 from deposits of $285,676,000 on December 31, 1996 and by reducing Federal Funds 50.57% to $11,240,000 from $22,740,000 on December 31, 1996. The Company's liquidity position remained acceptable for the six months ended June 30, 1997. Average liquid assets (cash and amounts due from banks, interest-bearing deposits in other banks, funds sold and investments securities) represented 31.16% of average deposits for six months ended June 30, 1997 as compared to 29.78% of average deposits for six months ended June 30, 1996 and 29.96% for calendar year 1996. Average loans represented 77.36% of average deposits for six months ended June 30, 1997 as compared to 76.82% for six months ended June 30, 1997 and 76.89% for calendar year 1996. Average interest-bearing deposits were 85.87% of average earning assets for six months ended June 30, 1997 as compared to 87.01% for six months ended June 30, 1996 and 87.09% for calendar year 1996. The Company satisfies most of its capital requirements through retained earnings. During the first quarter, 1997, retained earnings provided $1,012,000 of increase in equity and during second quarter, 1997 retained earnings provided $809,000 of increase in equity. Additionally, equity capital decreased by $221,000 in first quarter, 1997 and increased by $45,000 in second quarter, 1997 resulting from the change during the first two quarters in 1997 in unrealized losses on securities available-for-sale, net of taxes. Thus, total equity increased by a net amount of $1,645,000 for the six month period ended June 30, 1997. This compares to growth in equity of $665,000 from retained earnings and $101,000 decrease resulting from changes in unrealized losses on securities for first quarter 1996 and growth in equity of $635,000 from retained earnings and $338,000 decrease resulting from changes in unrealized losses on securities for second quarter 1996 which resulted in total increase in equity of $861,000 for the six month period ended June 30, 1996. Total equity increased $2,523,000 for the 1996 calendar year. At June 30, 1997, total capital of Colony amounted to approximately $27,236,000. At June 30, 1997, there was no outstanding commitment for any major expenditures. 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 1 capital consists of common stock and qualifying preferred stockholder's equity less goodwill. Tier 2 capital consists of certain 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 1 ratio at June 30, 1997 was 10.86% and total Tier 1 and 2 risk-based capital was 12.12%. 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 at June 30, 1997 was 8.38% which exceeds the required leverage ratio standard of 4%. For the first two quarters of 1997, the Company paid quarterly dividends of $0.075 per share. The dividend payout ratio, defined as dividends per share divided by net income per share, was 10.64% for six months ended June 30, 1997 as compared to a 14.56% dividend payout ratio for the six month period ended June 30, 1996. For the first two quarters of 1996, the Company paid quarterly dividends of $0.075 per share. 17 At June 30, 1997, 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 examinations 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 expense, 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 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 for the three months ended June 30, 1997 was $918,000 as compared with $731,000 for the three months ended June 30, 1996, or an increase of 25.58% and net income for the six months ended June 30, 1997 was $2,039,000 as compared with $1,494,000 for the six months ended June 30, 1996, or an increase of 36.48%. Second quarter 1997 earnings increased significantly over the same period in 1996 primarily due to our net interest income increasing to $3,715,000 in second quarter 1997 compared to $3,296,000 in second quarter 1996. The net interest income was higher due to increased volume and increased net interest margin for both quarterly periods in 1997 as compared to the same period in 1996. The net interest margin increased by 18 basis points to 5.00% in second quarter 1997 as compared to 4.82% in second quarter 1996 and increased by 21 basis points to 5.01% for six months ended June 30, 1997 as compared to the 4.80% for the same period in 1996. Net interest income increased by 12.71% to $3,715,000 in second quarter 1997 from $3,296,000 for the same period in 1996 on an increase in average earnings assets to $301,549,000 in second quarter 1997 from $277,451,000 for the same period in 1996. Net interest income increased by 12.98% to $7,362,000 for six months ended June 30, 1997 from $6,516,000 for the same period in 1996 on an increase in average earnings assets to $297,623,000 for six months ended June 30, 1997 from $275,925,000 for the same period in 1996. For the six months ended June 30, 1997 compared to the same period in 1996, average loans increased by $13,890,000 or 6.79%, average funds sold decreased by $2,474,000 or 14.94%, average investment securities increased by $9,597,000, or 17.54% and average interest bearing deposits in other banks increased by $685,000 or 366.31%, resulting in a net increase in average earning assets of $21,698,000 or 7.86%. The net increase in average earning assets was funded by a net increase in average deposits of 6.03% to $282,229,000 for six months ended June 30, 1997 from $266,170,000 for the same period in 1996. Average interest-bearing deposits increased by 6.47% to $255,563,000 for six months ended June 30, 1997 compared to $240,034,000 for six months ended June 30, 1996, while average noninterest-bearing deposits represented 9.45% of average total deposits for six months ended June 30, 1997 as compared to 9.82% for the same period in 1996 and 9.70% for calendar year 1996. Interest expense increased for the three months ended June 30, 1997 by $189,000 compared to the same period in 1996 and increased by $257,000 for the six months ended June 30, 1997 compared to the same period in 1996. The increase in interest expense is primarily attributable to the increase in average interest-bearing deposits to $255,563,000 for the six months ended June 30, 1997 compared to $240,034,000 for six months ended June 30, 1996. The combination of an increased net interest margin and increased average earning assets resulted in an increase in net interest income of $419,000 for second quarter 1997 compared to the same period in 1996 and an increase in net interest income of $846,000 for six months ended June 30, 1997 compared to the same period in 1996. 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. 18 The provision for loan losses was $468,000 for the three months ended June 30, 1997 as compared to $501,000 for the same period in 1996, representing a decrease in the provision of $33,000 or 6.59%. The provision for loan losses was $753,000 for the six months ended June 30, 1997 compared to $1,145,000 for the same period in 1996 representing a decrease of $392,000 or 34.24%. The decrease in the provision for loan losses during the first six months of 1997 is attributable to a leveling off of problem loans and an adequate build-up in the loan reserve for any future losses. Net loan charge-offs represented 76.28% of the provision for loan losses in second quarter 1997 as compared to 20.36% in the second quarter of 1996. Net loan charge-offs represented 67.33% of the provision for loan losses in the six month period ended June 30, 1997 as compared to 76.33% of the provision for loan losses in the six month period ended June 30, 1996. During the first six months of 1997 and 1996, a net of $507,000 and $874,000, respectively was charged-off. Net loan charge-offs for the six months ended June 30, 1997 represented 0.23% of average loans outstanding as compared to 0.43% for six months ended June 30, 1996. At June 30, 1997, the allowance for loan losses was 2.01% of total loans outstanding as compared to an allowance for loan losses of 2.02% at June 30, 1996 and 2.14% at December 31, 1996. The determination of the reserve rests upon management's judgment about factors affecting loan quality and assumptions about the economy. Management considers the June 30, 1997 allowance for loan losses adequate to cover potential losses in the loan portfolio. Non-interest income consists principally of service charges on deposit accounts. Service charges on deposit accounts amounted to $454,000 in second quarter 1997 compared to $445,000 in second quarter 1996, or an increase of 2.02% and amounted to $909,000 for six months ended June 30, 1997 compared to $870,000 for six months ended June 30, 1996, or an increase of 4.48%. All other non-interest income decreased by $18,000 to $206,000 for second quarter 1997 from $224,000 for second quarter, 1996 and all other non-interest income decreased by $29,000 to $445,000 for six months ended June 30, 1997 from $474,000 for six months ended June 30, 1996. There were no significant variances in non-interest income for the periods presented. Non-interest expense increased by 7.84% to $2,587,000 in three months ended June 30, 1997 from $2,399,000 for the same period in 1996. Salaries and benefits increased by 14.29% to $1,480,000 in second quarter 1997 from $1,295,000 in second quarter 1996 and was attributable to an increase in employees for an additional branch bank and increased bonus/profit sharing expenses due to increased earnings. All other non-interest expense remained flat as second quarter 1997 expenses totaled $1,107,000 for second quarter 1997 compared to $1,104,000 for second quarter 1996. Non-interest expense increased by 9.81% to $5,004,000 for six month period ended June 30, 1997 compared to $4,557,000 for the same period in 1996. This increase was primarily due to an increase in salaries and benefits due to increased personnel with a new branch and increased bonus/profit sharing expenses due to increased earnings. Occupancy expenses have also increased due to expenses associated with the new branch. Income before taxes increased by $255,000 to $1,320,000 in second quarter 1997 from $1,065,000 in second quarter 1996 and increased by $801,000 to $2,959,000 for six months ended June 30, 1997 from $2,158,000 for the same period in 1996. The increase for both periods is primarily attributable to the increased net interest income. Income taxes as a percentage of income before taxes decreased by 2.90% to 30.45% in second quarter 1997 as compared to 31.36% in second quarter 1996 while income taxes as a percentage on income before taxes increased by 1.04% to 31.09% for six month period ended June 30, 1997 as compared to 30.77% for the same period in 1996. Income tax expense increased 38.55% to $920,000 for six month period ended June 30, 1997 compared to $664,000 for the same period in 1996. The Bank of Fitzgerald is operating under a Memorandum of Understanding dating back to October, 1992 that was revised in October, 1995 due to portions of the original Memorandum of Understanding not being relevent to the bank's current situation. The current Memorandum requires that the Bank maintain specified minimum capital ratios and minimum reserves for loan losses. The Bank of Fitzgerald was in substantial compliance with the provisions of the Memorandum of Understanding at June 30, 1997. Colony is an emerging company operating in an industry filled with non-regulated competitors and a rapid pace of consolidation. With the recent growth of our company and the continued trend of consolidation, Colony recently moved into its new 8,900 square feet corporate office. The move to new offices will make our management team much more efficient and assist our expansion plans as new opportunities present themselves in the future. 19 In November, 1996 Colony organized the company support services into one single unit subsidiary, Colony Management Services, Inc., which will allow management of the subsidiary to focus on its primary responsibility of credit review. This will achieve timely recognition of marginal credit, better monitoring of industry concentrations, additional review follow-up, and development of credit scoring models for certain product lines. In a major cost containment initiative, the data processing section of Colony Management Services is investing over $1,000,000 in computer up-grades and software enhancement. This will allow the company to better serve our customers through improved customer data resources and state-of-the-art technological services. Liquidity - --------- The Company's goals with respect to liquidity are to insure that sufficient funds are available to meet current operating requirements, 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 June 30, 1997 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. 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 a 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 Broxton State Bank and in November, 1996 formed a non-bank subsidiary, Colony Management Services, Inc. Ashburn Bank expanded its operation by branching into Lee County, Georgia in October, 1996. 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. 20 PART II - OTHER INFORMATION ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS - ------------------------------------------------------------ The Annual Meeting of the Shareholders of the Company was held on April 22, 1997. At the Annual Meeting of the Shareholders, proxies were solicited under Regulation 14 of the Securities and Exchange Act of 1934. Total shares amounted to 1,448,842. A total of 968,192 shares (66.83%) were represented by Shareholders in attendance or by proxy. The following directors were elected by yes votes totaling 968,146 shares and no votes totaling 46 shares to serve one year until the next annual meeting: Marion H. Massee, III Ben B. Mills, Jr. Paul Branch, Jr. James D. Minix Terry L. Coleman Ralph D. Roberts L. Morris Downing, Jr. W.B. Roberts, Jr. Terry L. Hester R. Sidney Ross Milton N. Hopkins, Jr. Joe K. Shiver Harold E. Kimball Curtis Summerlin No other matters were voted upon by the shareholders. 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 June 30, 1997. 21 SIGNATURE Pursuant to the requirements of the Securities 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. - ----------------------------- ------------------------------------ DATE James D. Minix, President and Chief Executive Officer ------------------------------------ Terry L. Hester, Executive Vice President and Chief Financial Officer 22 EX-27 2 FINANCIAL DATA SCHEDULE
9 1,000 6-MOS DEC-31-1997 JAN-01-1997 JUN-30-1997 12,157 594 11,240 0 57,224 3,759 3,730 232,802 4,682 330,504 285,764 11,340 2,496 3,668 0 0 14,488 12,748 330,504 11,716 1,931 413 14,060 6,455 6,698 7,362 753 9 5,004 2,959 2,039 0 0 2,039 1.41 1.41 5.01 6,501 969 19 0 4,435 717 211 4,682 4,682 0 0
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