CORRESP 1 filename1.htm corresp.htm

MARTIN SNOW, LLP
ATTORNEYS AT LAW
 
240 THIRD STREET
POST OFFICE BOX 1606
MACON, GEORGIA 31202-1606
TELEPHONE 478/749-1700
TELECOPIER 478/743-4204
 
WRITER’S DIRECT DIAL : 478/749-1709
E-MAIL: mnwhite@martinsnow.com
 
WENDELL L. BOWDEN
EDWARD J. HARRELL
JOHN C. EDWARDS
J. KENNETH WALKER
ROBERT R. GUNN, II
JOHN T. McGOLDRICK, JR.
CUBBEDGE SNOW, III
WILLIAM H. LARSEN
EDWARD L. LONG, JR.
JOHN C. DANIEL, III
T. BARON GIBSON, II
CRAWFORD B. EDWARDS, JR.
MICHAEL M. SMITH
LISA M. EDWARDS
BLAIR K. CLEVELAND
THOMAS PETER ALLEN III
AMBER K. DUFF
 
  
MICHAEL N. WHITE
H. DAVID BULLARD
RICHARD A. EPPS, JR.
ROSS S. SCHELL
JENNY MARTIN STANSFIELD
MARTY K. SENN
STUART E. WALKER
 
OF COUNSEL
JEFFREY M. RUTLEDGE
 
EMERITUS
T. BALDWIN MARTIN, JR.
CUBBEDGE SNOW, JR.
REMER C. DANIEL
 


 
November 21, 2008

 
Mr. William Friar, Senior Financial Analyst
U.S. Securities & Exchange Commission
Washington, DC 20549

 
RE:
Colony Bankcorp, Inc.
Schedule 14A
Filed October 30, 2008
File No. 000-12436

Dear Mr. Friar:

In response to your comment letter dated November 10, 2008, please see the following numbered responses containing the requested information and disclosure revisions for the Schedule 14A:

 
1.
The Company filed its preliminary application with the appropriate federal banking regulatory agencies on November 10, 2008, which is now disclosed on pages 3 and 5 of the amended Schedule 14A filed herewith.

 
2.
The Company has amended the Schedule 14A to disclose its intended use of the proceeds of the proposed sale of securities to Treasury on page 6.

 
3.
On page 7, the seventh bullet point discloses the potential appointment of two new directors required by Treasury under the Capital Purchase Program (“CPP”).  Additional language has been added on page 4 and Appendix “A” to provide for the election of directors by the preferred shareholders, and no further shareholder approval would be necessary to comply because the current bylaws of the Company permit the bank to have up to 25 directors.  The Company’s participation in the CPP will not require restructuring of its executive compensation arrangements.  Please see amended disclosure on page 8.

 
 
 

Page Two
Mr. William Friar, Senior Financial Analyst
November 19, 2008


 
4.
Please see the amended disclosures on page 6 explaining that the Treasury’s denial would have no material adverse effect on the Company’s liquidity capital resources or results of operation.

 
5.
Please see the amended discussion on page 8 that the Company will not be required to modify any compensation plans or contracts to comply with Section 111 of the EESA.

 
6.
Please see the amended disclosure on page 7 which states the current market price of the Company’s common stock.  The initial filing included the 20 day average market price disclosure.

In addition, pursuant to our conversations with Mr. Michael Clampitt, please see the additional pro forma information required by Item 13 of Schedule 14A on pages 8-16 and the specific reports incorporated by reference on page 21.

As requested in your letter, a Statement of Acknowledgment in connection with the Company’s response to the Commission’s comments is enclosed.  If you have any further questions or require any additional information or documentation, please contact me at 478-749-1709.

 
Yours very truly,
   
 
/s/ Michael N. White
 
MICHAEL N. WHITE
 
Attorney for Colony Bankcorp, Inc.

MNW:ps
Enclosures

cc:           Mr. Terry Hester

 
 
 

STATEMENT OF ACKNOWLEDGMENT

The undersigned, Colony Bankcorp, Inc. (the “Company”), hereby acknowledges to the United States Securities and Exchange Commission (the “Commission”) in connection with the Company’s responses to the comments of the Commission regarding the filing of its Schedule 14A filed on October 30, 2008, and all amendments thereto, the following:

1.            The Company is responsible for the adequacy and accuracy of the disclosure in the filing;

2.            Staff comments or changes to disclosure in response to staff comments do not foreclose the Commission from taking any action with respect to the filing; and

3.            The Company may not assert staff comments as a defense in any proceeding initiated by the Commission or by any person under the federal securities laws of the United States.

 
COLONY BANKCORP, INC.
     
     
 
BY:
/s/ Al D. Ross
   
AL D. ROSS
   
President and Chief Executive Officer
     
 
Date:
November 21, 2008
 
 
 
 
 
   
December 31, 2007
    
September 30, 2008
  
         
$9.6 million
    
$28.9 million
          
$9.6 million
    
$28.9 million
  
   
Historical
      1%      3%    
Historical
      1%      3%  
                                             
Net interest income
   $ 42,458     $ 42,938     $ 43,903     $ 28,133     $ 28,439     $ 29,054  
Provision for losses on loans
     5,931       5,931       5,931       8,512       8,512       8,512  
                                                 
Net interest income after provision for losses on loans
     36,527       37,007       37,972       19,621       19,927       20,542  
                                                 
Noninterest income
     7,817       7,817       7,817       7,185       7,185       7,185  
Noninterest expense
     31,579       31,579       31,579       23,284       23,284       23,284  
                                                 
Income from continuing operations before income taxes
     12,765       13,245       14,210       3,522       3,828       4,443  
                                                 
Income tax expense
     4,218       4,381       4,709       823       927       1,136  
                                                 
Income from continuing operations
     8,547       8,864       9,501       2,699       2,901       3,307  
Less: Preferred dividends
             517       1,555               512       1,540  
                                                 
Income from continuing operations available to common stockholders
   $ 8,547     $ 8,347     $ 7,946     $ 2,699     $ 2,389     $ 1,767  
                                                 
Basic earnings per share available to common stockholders
   $ 1.19     $ 1.16     $ 1.11     $ 0.38     $ 0.33     $ 0.25  
                                                 
Diluted earnings per share available to common stockholders
   $ 1.19     $ 1.15     $ 1.07     $ 0.38     $ 0.33     $ 0.24  
                                                 
Weighted Average Shares
     7,188,696       7,188,696       7,188,696       7,197,016       7,197,016       7,197,016  
Diluted Average Shares
     7,197,331       7,277,131       7,436,730       7,197,016       7,234,939       7,310,785  
                                                 
Adjustments:
                                                
Net interest income
             480       1,445               306       921  
Income taxes
             163       491               104       313  
                                                 
Preferred Dividends:
                                                
5% of Preferred Stock
             480       1,445               480       1,445  
Accretion of Discount
             37       110               32       95  
                                                 
              517       1,555               512       1,540  
                                                 
                                                 
             1%      3%                          
                                                 
Risk Weighted Assets as of 9/30/08
   $ 962,938,272     $ 9,629,383     $ 28,888,148                          
Warrants at 15%
           $ 1,444,407     $ 4,333,222                          
# of warrants based on average price of $9.25
             156,152       468,456                          
 
 
 
 

Date
  
Open
    
High
    
Low
    
Close/Last
    
Volume
  
11/14/2008
     8.57       8.57       8.57       8.57       564  
11/13/2008
     8.6       8.75       8.28       8.57       7,483  
11/12/2008
     9       9       8.6       8.99       13,096  
11/11/2008
     9.19       9.2       9.19       9.19       500  
11/10/2008
     9.1999       9.1999       9.1999       9.1999       100  
11/7/2008
     9.0501       9.085       9.05       9.0501       2,104  
11/6/2008
     9.03       9.03       9.01       9.01       1,491  
11/5/2008
     9.03       9.47       9       9.435       0  
11/4/2008
     9.03       9.47       9       9.435       0  
11/3/2008
     9.03       9.47       9       9.435       2,014  
10/31/2008
     8.75       8.75       8.75       8.75       2,577  
10/30/2008
     8.75       8.75       8.75       8.75       1,992  
10/29/2008
     9.2       9.2       8.54       8.75       3,149  
10/28/2008
     9.2       9.2       9.2       9.2       200  
10/27/2008
     9.27       9.31       9.25       9.25       2,132  
10/24/2008
     9.9       9.9       9.9       9.9       0  
10/23/2008
     9.9       9.9       9.9       9.9       0  
10/22/2008
     9.9       9.9       9.9       9.9       0  
10/21/2008
     9.9       9.9       9.9       9.9       0  
10/20/2008
     9.9       9.9       9.9       9.9       1,000  
                                         
                              9.25          


Information obtained from nasdaq.com