10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

☒    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2019

☐   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 000-12436

COLONY BANKCORP, INC.

(Exact Name of Registrant as Specified in Its Charter)

GEORGIA  (State or Other Jurisdiction of Incorporation or Organization) 58-1492391 (I.R.S. Employer Identification No.)

115 South Grant Street, Fitzgerald, Georgia 31750

(Address of principal executive offices)

(229) 426-6000

(Registrant’s Telephone Number, Including Area Code)

Securities Registered Pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $1.00 per share	CBAN	NASDAQ Global Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934 during the 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    ☒          No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).      Yes    ☒          No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “larger accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerate Filer ☐     Accelerated Filer ☒     Non-accelerated Filer ☐

Smaller Reporting Company ☒     Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with the new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: As of July 30, 2019, there were 9,498,937 shares of common stock outstanding.

TABLE OF CONTENTS

		Page
PART I – Financial Information
Item 1.	Financial Statements
	Consolidated Balance Sheets – June 30, 2019 (unaudited) and December 31, 2018 (audited)	3
	Consolidated Statements of Income – For the Three Months and Six Months Ended June 30, 2019 and 2018 (unaudited)	4
	Consolidated Statements of Comprehensive Income – For the Three Months and Six Months Ended June 30, 2019 and 2018 (unaudited)	5
	Consolidated Statements of Changes in Stockholders’ Equity – For the Six Months Ended June 30, 2019 and 2018 (unaudited)	6
	Consolidated Statements of Cash Flows – For the Six Months Ended June 30, 2019 and 2018 (unaudited)	7
	Notes to Consolidated Financial Statements (unaudited)	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	49
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	70
Item 4.	Controls and Procedures	70
PART II – Other Information
Item 1.	Legal Proceedings	71
Item 1A.	Risk Factors	71
Item 2.	Unregistered Sale of Equity Securities and Use of Proceeds	71
Item 3.	Defaults Upon Senior Securities	71
Item 4.	Mine Safety Disclosures	71
Item 5.	Other Information	71
Item 6.	Exhibits	71
Signatures		74

2

Part I Financial Information
Item 1 Financial Statements

COLONY BANKCORP, INC. AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS

JUNE 30, 2019 AND DECEMBER 31, 2018

(DOLLARS IN THOUSANDS)

	June 30, 2019			December 31, 2018
	(Unaudited)			(Audited)
ASSETS
Cash and Due from Banks	$	13,911		$	10,377
Interest-Bearing Deposits in Banks		58,617			49,779
Federal Funds Sold		2,884			-
Cash and Cash Equivalents		75,412			60,156
Investment Securities Available for Sale, at Fair Value		409,839			353,066
Other Investments, at Cost		3,261			2,978
Loans Held for Sale		3,813			-
Loans		935,271			782,027
Unearned Interest and Fees		(565	)		(501	)
Allowance for Loan Losses		(6,789	)		(7,277	)
Loans, Net		927,917			774,249
Premises and Equipment		32,909			28,831
Other Real Estate (Net of Allowance of $950 and $877 as of June 30, 2019 and December 31, 2018, Respectively)		987			1,841
Goodwill		16,134			202
Other Intangible Assets		3,481			556
Bank-Owned Life Insurance		21,357			17,598
Other Assets		11,862			12,401
Total Assets	$	1,506,972		$	1,251,878
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
Noninterest-Bearing	$	232,311		$	192,847
Interest-Bearing		1,065,412			892,278
Total Deposits		1,297,723			1,085,125
Subordinated Debentures		24,229			24,229
Other Borrowed Money		55,063			44,000
Other Liabilities		3,448			2,832
Total Liabilities		1,380,463			1,156,186
Stockholders' Equity
Common Stock, Par Value $1 per Share; Authorized 20,000,000 Shares, 9,498,937 and 8,444,908 Shares Issued as of June 30, 2019 and December 31, 2018, Respectively		9,499			8,445
Paid-In Capital		43,650			25,978
Retained Earnings		73,129			69,459
Accumulated Other Comprehensive Income (Loss), Net of Tax		231			(8,190	)
Total Stockholders' Equity		126,509			95,692
Total Liabilities and Stockholders' Equity	$	1,506,972		$	1,251,878

The accompanying notes are an integral part of these statements.

3

Part I (Continued)
Item 1 (Continued)

COLONY BANKCORP, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF INCOME

THREE MONTHS ENDED JUNE 30, 2019 AND 2018

SIX MONTHS ENDED JUNE 30, 2019 AND 2018

(UNAUDITED)

(DOLLARS IN THOUSANDS)

	Three Months Ended				Six Months Ended
	June 30, 2019		June 30, 2018		June 30, 2019		June 30, 2018
Interest Income
Loans, Including Fees	$	12,294	$	10,065	$	22,764	$	19,793
Loans Held for Sale		19		-		19		-
Deposits with Other Banks		281		69		563		144
Investment Securities
U.S. Government Agencies		2,352		1,877		4,508		3,788
State, County and Municipal		33		25		58		52
Corporate Bonds		31		29		58		57
Federal Funds Sold		41		-		41		-
Dividends on Other Investments		47		44		100		85
Total Interest Income		15,098		12,109		28,111		23,919
Interest Expense
Deposits		2,632		1,401		4,754		2,601
Federal Funds Purchased		-		1		-		1
Borrowed Money		641		542		1,175		1,023
Total Interest Expense		3,273		1,944		5,929		3,625
Net Interest Income		11,825		10,165		22,182		20,294
Provision for Loan Losses		179		44		310		70
Net Interest Income After Provision for Loan Losses		11,646		10,121		21,872		20,224
Noninterest Income
Service Charges on Deposits		1,070		1,031		2,034		2,132
Other Service Charges, Commissions and Fees		1,110		822		2,010		1,611
Mortgage Fee Income		544		182		687		331
Securities Gains		65		116		65		116
Other		1,211		173		1,538		568
Total Noninterest Income		4,000		2,324		6,334		4,758
Noninterest Expenses
Salaries and Employee Benefits		6,292		5,002		11,663		9,922
Occupancy and Equipment		1,144		979		2,169		2,025
Acquisition Related Expenses		1,928		-		1,961		-
Deposit Intangible Expenses		148		9		176		18
Other		3,502		2,611		6,071		5,172
Total Noninterest Expense		13,014		8,601		22,040		17,137
Income Before Income Taxes		2,632		3,844		6,166		7,845
Income Taxes		531		775		1,230		1,588
Net Income	$	2,101	$	3,069	$	4,936	$	6,257
Net Income Per Share of Common Stock
Basic	$	0.23	$	0.36	$	0.56	$	0.74
Diluted	$	0.23	$	0.36	$	0.56	$	0.72
Cash Dividends Paid Per Share of Common Stock	$	0.075	$	0.05	$	0.15	$	0.10
Weighted Average Basic Shares Outstanding		9,089,461		8,439,258		8,764,909		8,439,258
Weighted Average Diluted Shares Outstanding		9,089,461		8,612,352		8,764,909		8,634,865

The accompanying notes are an integral part of these statements.

4

Part I (Continued)
Item 1 (Continued)

COLONY BANKCORP, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

THREE MONTHS ENDED JUNE 30, 2019 AND 2018

SIX MONTHS ENDED JUNE 30, 2019 AND 2018

(UNAUDITED)

(DOLLARS IN THOUSANDS)

	Three Months Ended						Six Months Ended
	June 30, 2019			June 30, 2018			June 30, 2019			June 30, 2018
Net Income	$	2,101		$	3,069		$	4,936		$	6,257
Other Comprehensive Income:
Gains (Losses) on Securities Arising During the Period		6,720			(1,392	)		10,724			(5,346	)
Tax Effect		(1,411	)		293			(2,252	)		1,123
Realized Gains on Sale of AFS Securities		(65	)		(116	)		(65	)		(116	)
Tax Effect		14			24			14			24
Change in Unrealized Gains (Losses) on Securities
Available for Sale, Net of Reclassification
Adjustment and Tax Effects		5,258			(1,191	)		8,421			(4,315	)
Comprehensive Income	$	7,359		$	1,878		$	13,357		$	1,942

The accompanying notes are an integral part of these statements.

5

Part I (Continued)
Item 1 (Continued)

COLONY BANKCORP, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

SIX MONTHS ENDED JUNE 30, 2019 AND 2018

(UNAUDITED)

(DOLLARS IN THOUSANDS)

	Common Shares Issued		Common Stock		Paid-In Capital			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Total
Balance, December 31, 2017		8,439	$	8,439	$	29,145		$	59,230		$	(6,491	)	$	90,323
Change in Net Unrealized (Losses) on Securities Available for Sale, Net of Reclassification Adjustment and Tax Effects												(4,315	)		(4,315	)
Dividends on Common Shares									(844	)					(844	)
Repurchase of Warrants						(3,175	)								(3,175	)
Net Income									6,257						6,257
Balance, June 30, 2018		8,439	$	8,439	$	25,970		$	64,643		$	(10,806	)	$	88,246
Balance, December 31, 2018		8,445	$	8,445	$	25,978		$	69,459		$	(8,190	)	$	95,692
Change in Net Unrealized Gains on Securities Available for Sale, Net of Reclassification Adjustment and Tax Effects												8,421			8,421
Dividends on Common Shares									(1,266	)					(1,266	)
Stock-based Compensation Expense						17									17
Issuance of Common Stock		1,054		1,054		17,655									18,709
Net Income									4,936						4,936
Balance, June 30, 2019		9,499	$	9,499	$	43,650		$	73,129		$	231		$	126,509

The accompanying notes are an integral part of these statements.

6

Part I (Continued)
Item 1 (Continued)

COLONY BANKCORP, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CASH FLOWS

SIX MONTHS ENDED JUNE 30, 2019 AND 2018

(UNAUDITED)

(DOLLARS IN THOUSANDS)

	Six Months Ended
	June 30, 2019			June 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	4,936		$	6,257
Adjustments to Reconcile Net Income to Net Cash
Provided by Operating Activities:
Depreciation		903			867
Share-based Compensation Expense		17			-
Provision for Loan Losses		310			70
Securities (Gains)		(65	)		(116	)
Amortization and Accretion		483			591
(Gain) on Sale of Other Real Estate and Repossessions		(937	)		(120	)
Provision for Losses on Other Real Estate		104			157
(Increase) in Cash Surrender Value of Life Insurance		(316	)		(261	)
(Gain) on Sale of Premises & Equipment		(2	)		-
Provision for Losses on Premises & Equipment		151			3
Originations of Loans Held for Sale		(13,404	)		-
Proceeds from Sales of Loans Held for Sale		9,591			-
Other Prepaids, Deferrals and Accruals, Net		1,647			465
Net Cash Provided by Operating Activities		3,418			7,913
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of Investment Securities Available for Sale		(82,057	)		(19,257	)
Proceeds from Maturities, Calls, and Paydowns of
Investment Securities:
Available for Sale		27,373			24,379
Proceeds from Sale of Investment Securities
Available for Sale		56,821			11,268
Held to Maturity		1,766			-
Net Loans to Customers		(23,474	)		(2,560	)
Purchase of Premises and Equipment		(2,576	)		(1,869	)
Proceeds from Sale of Other Real Estate and Repossessions		2,143			1,236
Proceeds from Cash Surrender Value of Life Insurance		535			-
Redemption (Purchase of) Federal Home Loan Bank Stock		195			(339	)
Proceeds from Sale of Premises and Equipment		37			-
Net Cash and Cash Equivalents Paid in Acquisition		(467	)		-
Net Cash (Used in) Provided by Investing Activities		(19,704	)		12,858
CASH FLOWS FROM FINANCING ACTIVITIES
Noninterest-Bearing Customer Deposits		8,017			(13,592	)
Interest-Bearing Customer Deposits		14,728			(18,507	)
Dividends Paid for Common Stock		(1,266	)		(844	)
Repurchase of Warrants		-			(3,175	)
Payments on Federal Home Loan Bank Advances		(5,000	)		(2,500	)
Proceeds from Federal Home Loan Bank Advances		-			10,000
Payments on Other Borrowed Money		(250	)		(1,500	)
Proceeds from Other Borrowed Money		15,313			7
Net Cash (Used in) Provided by Financing Activities		31,542			(30,111	)
Net Increase (Decrease) in Cash and Cash Equivalents		15,256			(9,340	)
Cash and Cash Equivalents at Beginning of Period		60,156			57,813
Cash and Cash Equivalents at End of Period	$	75,412		$	48,473

The accompanying notes are an integral part of these statements.

7

Part I (Continued)
Item 1 (Continued)  

COLONY BANKCORP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(1) Summary of Significant Accounting Policies

Presentation

Colony Bankcorp, Inc. (the “Company”) is a bank holding company located in Fitzgerald, Georgia. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Colony Bank, Fitzgerald, Georgia (the “Bank”). All significant intercompany accounts have been eliminated in consolidation. The accounting and reporting policies of the Company conform to generally accepted accounting principles and practices utilized in the commercial banking industry.

In July 2019, a new subsidiary of the Company was incorporated under the name Colony Risk Management, Inc. Colony Risk Management, Inc. is a subsidiary of the Company and is located in Las Vegas, Nevada. It is a captive insurance subsidiary which insures various liability and property damage policies for the Company and its related subsidiaries. Colony Risk Management is regulated by the State of Nevada Division of Insurance.

All dollars in notes to consolidated financial statements are rounded to the nearest thousand, except for per share amounts.

The consolidated financial statements in this report are unaudited, except for the December 31, 2018 consolidated balance sheet. All adjustments consisting of normal recurring accruals which are, in the opinion of management, necessary for fair presentation of the interim consolidated financial statements, have been included and fairly and accurately present the financial position, results of operations and cash flows of the Company. The results of operations for the six months ended June 30, 2019 are not necessarily indicative of the results which may be expected for the entire year.

Nature of Operations

The Bank provides a full range of retail, commercial and mortgage banking services for consumers and small- to medium-size businesses located primarily in central, south and coastal Georgia. The Bank is headquartered in Fitzgerald, Georgia with banking and mortgage offices in Albany, Ashburn, Athens, Broxton, Centerville, Columbus, Cordele, Douglas, Eastman, Fitzgerald, LaGrange, Leesburg, Macon, Moultrie, Quitman, Rochelle, Savannah, Soperton, Sylvester, Statesboro, Thomaston, Tifton, Valdosta and Warner Robins. Lending and investing activities are funded primarily by deposits gathered through its retail banking office network.

Use of Estimates

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 fair value of assets acquired and liabilities assumed in a business combination.

Reclassifications

In certain instances, amounts reported in prior years’ consolidated financial statements have been reclassified to conform to statement presentations selected for 2019. Such reclassifications have not affected previously reported stockholders’ equity or net income.

Concentrations of Credit Risk

Concentrations of credit risk can exist in relation to individual borrowers or groups of borrowers, certain types of collateral, certain types of industries, or certain geographic regions. The Company has a concentration in real estate loans as well as a geographic concentration that could pose an adverse credit risk. At June 30, 2019, approximately 86 percent of the Company’s loan portfolio was concentrated in loans secured by real estate. A substantial portion of borrowers’ ability to honor their contractual obligations is dependent upon the viability of the real estate economic sector. Management continues to monitor these concentrations and has considered these concentrations in its allowance for loan loss analysis.

8

Part I (Continued)
Item 1 (Continued)  

(1) Summary of Significant Accounting Policies (Continued)

Concentrations of Credit Risk (Continued)

The success of the Company is dependent, to a certain extent, upon the economic conditions in the geographic markets it serves. 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 the Company 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.

At times, the Company may have cash and cash equivalents at financial institutions in excess of federal deposit insurance limits. The Company places its cash and cash equivalents with high credit quality financial institutions whose credit ratings are monitored by management to minimize credit risk.

Investment Securities

The Company classifies its investment securities as trading, available for sale or held to maturity. Securities that are held principally for resale in the near term are classified as trading. Trading securities are carried at fair value, with realized and unrealized gains and losses included in noninterest income. Currently, no securities are classified as trading. Securities acquired with both the intent and ability to be held to maturity are classified as held to maturity and reported at amortized cost. All securities not classified as trading or held to maturity are considered available for sale. Securities available for sale are reported at estimated fair value. Unrealized gains and losses on securities available for sale are excluded from earnings and are reported, net of deferred taxes, in accumulated other comprehensive income (loss), a component of stockholders’ equity. Gains and losses from sales of securities available for sale are computed using the specific identification method. Securities available for sale includes securities which may be sold to meet liquidity needs arising from unanticipated deposit and loan fluctuations, changes in regulatory capital requirements, or unforeseen changes in market conditions.

The Company evaluates each held to maturity and available for sale security in a loss position for other-than-temporary impairment (“OTTI”). In estimating other-than-temporary impairment losses, management considers such factors as the length of time and the extent to which the market value has been below cost, the financial condition of the issuer and the Company’s intent to sell and whether it is more likely than not that the Company will be required to sell the security before anticipated recovery of the amortized cost basis. If the Company intends to sell or if it is more likely than not that the Company will be required to sell the security before recovery, the OTTI write-down is recognized in earnings. If the Company does not intend to sell the security or it is not more likely than not that it will be required to sell the security before recovery, the OTTI write-down is separated into an amount representing credit loss, which is recognized in earnings and an amount related to all other factors, which is recognized in other comprehensive income (loss).

Loans Held for Sale

Loans held for sale are classified at the lower of cost or market value, which is computed by the aggregate method. Gains and losses on loans held for sale are included in the determination of income for the period in which the sales occur.

Loans

Loans that the Company has the ability and intent to hold for the foreseeable future or until maturity are recorded at their principal amount outstanding, net of unearned interest and fees. Loan origination fees, net of certain direct origination costs, are deferred and amortized over the estimated terms of the loans using the straight-line method. Interest income on loans is recognized using the effective interest method.

A loan is considered to be delinquent when payments have not been made according to contractual terms, typically evidenced by nonpayment of a monthly installment by the due date.

When management believes there is sufficient doubt as to the collectability of principal or interest on any loan or generally when loans are 90 days or more past due, the accrual of applicable interest is discontinued and the loan is designated as nonaccrual, unless the loan is well secured and in the process of collection. Interest payments received on nonaccrual loans are either applied against principal or reported as income, according to management’s judgment as to the collectability of principal. Loans are returned to an accrual status when factors indicating doubtful collectability on a timely basis no longer exist.

9

Part I (Continued)
Item 1 (Continued)  

(1) Summary of Significant Accounting Policies (Continued)

Loans Modified in a Troubled Debt Restructuring (“TDR”)

Loans are considered to have been modified in a TDR when, due to a borrower’s financial difficulty, the Company makes certain concessions to the borrower that it would not otherwise consider for new debt with similar risk characteristics. Modifications may include interest rate reductions, principal or interest forgiveness, forbearance, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of the collateral. Generally, a non-accrual loan that has been modified in a TDR remains on non-accrual status for a period of 6 months to demonstrate that the borrower is able to meet the terms of the modified loan. However, performance prior to the modification, or significant events that coincide with the modification, are included in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual status at the time of loan modification or after a shorter performance period. If the borrower’s ability to meet the revised payment schedule is uncertain, the loan remains on non-accrual status. Once a loan is modified in a troubled debt restructuring it is accounted for as an impaired loan, regardless of its accrual status, until the loan is paid in full, sold or charged off. A TDR may cease being classified as impaired if the loan is subsequently modified at market terms and, has performed according to the modified terms for at least six months, and there has not been any prior principal forgiveness on a cumulative basis.

Allowance for Loan Losses

The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the inability to collect a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance.

The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revisions as more information becomes available.

The allowance consists of specific, historical and general components. The specific component relates to loans that are classified as either doubtful, substandard or special mention. For such loans that are also classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan are lower than the carrying value of that loan. The historical component covers nonclassified loans and is based on historical loss experience adjusted for qualitative factors. A general component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The general component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and historical losses in the portfolio. General valuation allowances are based on internal and external qualitative risk factors such as (1) changes in lending policies and procedures, including changes in underwriting standards and collections, charge offs, and recovery practices, (2) changes in international, national, regional, and local conditions, (3) changes in the nature and volume of the portfolio and terms of loans, (4) changes in the experience, depth, and ability of lending management, (5) changes in the volume and severity of past due loans and other similar conditions, (6) changes in the quality of the organization's loan review system, (7) changes in the value of underlying collateral for collateral dependent loans, (8) the existence and effect of any concentrations of credit and changes in the levels of such concentrations, and (9) the effect of other external factors (i.e. competition, legal and regulatory requirements) on the level of estimated credit losses.

Loans identified as losses by management, internal loan review and/or regulatory agencies are charged off.

A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price or the fair value of the collateral if the loan is collateral dependent.

10

Part I (Continued)
Item 1 (Continued)   

(1) Summary of Significant Accounting Policies (Continued)

Allowance for Loan Losses (Continued)

A significant portion of the Company’s impaired loans are deemed to be collateral dependent. Management therefore measures impairment on these loans based on the fair value of the collateral. Collateral values are determined based on appraisals performed by qualified licensed appraisers hired by the Company or by senior members of the Company’s credit administration staff. The decision whether or not to obtain an external third-party appraisal usually depends on the type of property being evaluated. External appraisals are usually obtained on more complex, income producing properties such as hotels, shopping centers and businesses. Less complex properties such as residential lots, farm land and single family houses may be evaluated internally by senior credit administration staff. When the Company does obtain appraisals from external third-parties, the values utilized in the impairment calculation are “as is” or current market values. The appraisals, whether prepared internally or externally, may utilize a single valuation approach or a combination of approaches including the comparable sales, income and cost approach. Appraised amounts used in the impairment calculation are typically discounted 10 percent to account for selling and marketing costs, if the repayment of the loan is to come from the sale of the collateral. Although appraisals are not obtained each year on all impaired loans, the collateral values used in the impairment calculations are evaluated quarterly by management. Based on management’s knowledge of the collateral and the current real estate market conditions, appraised values may be further discounted to reflect facts and circumstances known to management since the most recent appraisal was performed.

Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are typically significant and result in a level 3 classification of the inputs for determining fair value. Because of the high degree of judgment required in estimating the fair value of collateral underlying impaired loans and because of the relationship between fair value and general economic conditions, we consider the fair value of impaired loans to be highly sensitive to changes in market conditions.

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.

Goodwill

Goodwill represents the excess of the cost of businesses acquired over the fair value of the net assets acquired. Goodwill is assigned to reporting units and tested for impairment at least annually, or on an interim basis if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying value.

Intangible Assets

Intangible assets consist of core deposit intangibles acquired in connection with a business combination. The core deposit intangible is initially recognized based on a valuation performed as of the consummation date. The core deposit intangible is amortized on an accelerated basis over the average remaining life of the acquired customer deposits.

11

Part I (Continued)
Item 1 (Continued)  

(1) Summary of Significant Accounting Policies (Continued)

Transfers of Financial Assets

Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

Statement of 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, interest-bearing checking accounts, savings accounts, loans and certificates of deposit are reported net.

Advertising Costs

The Company expenses the cost of advertising in the periods in which those costs are incurred.

Income Taxes

The provision for income taxes is based upon income for financial statement purposes, adjusted for nontaxable income and nondeductible expenses. Deferred income taxes have been provided when different accounting methods have been used in determining income for income tax purposes and for financial reporting purposes.

Deferred tax assets and liabilities are recognized based on future tax consequences attributable to differences arising from the financial statement carrying values of assets and liabilities and their tax bases. 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 direct write-off method for tax purposes). In the event of changes in the tax laws, deferred tax assets and liabilities are adjusted in the period of the enactment of those changes, with effects included in the income tax provision. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company and its subsidiary file a consolidated federal income tax return. The subsidiary pays its proportional share of federal income taxes to the Company based on its taxable income.

Positions taken in the Company’s tax returns may be subject to challenge by the taxing authorities upon examination. Uncertain tax positions are initially recognized in the consolidated financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities. Such tax positions are both initially and subsequently measured as the largest amount of tax benefit that is greater than 50 percent likely of being realized upon settlement with the tax authority, assuming full knowledge of the position and all relevant facts. The Company provides for interest and, in some cases, penalties on tax positions that may be challenged by the taxing authorities. Interest expense is recognized beginning in the first period that such interest would begin accruing. Penalties are recognized in the period that the Company claims the position in the tax return. Interest and penalties on income tax uncertainties are classified within income tax expense in the consolidated statement of income.

Other Real Estate

Other real estate generally represents real estate acquired through foreclosure and is initially recorded at estimated fair value at the date of acquisition less the cost of disposal. Losses from the acquisition of property in full or partial satisfaction of debt are recorded as loan losses. Properties are evaluated regularly to ensure the recorded amounts are supported by current fair values, and valuation allowances are recorded as necessary to reduce the carrying amount to fair value less estimated cost of disposal. Routine holding costs and gains or losses upon disposition are included in other noninterest expense.

12

Part I (Continued)
Item 1 (Continued)  

(1) Summary of Significant Accounting Policies (Continued)

Bank-Owned Life Insurance

The Company has purchased life insurance on the lives of certain key members of management and directors. The life insurance policies are recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or amounts due that are probable at settlement, if applicable. Increases in the cash surrender value are recorded as other income in the consolidated statements of income. The cash surrender value of the insurance contracts is recorded in other assets on the consolidated balance sheets in the amount of $21,357 and $17,598 as of June 30, 2019 and December 31, 2018, respectively.

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 statements 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 (loss). Accounting standards codification requires the presentation in the consolidated financial statements of net income and all items of other comprehensive income (loss) as total comprehensive income (loss).

Off-Balance Sheet Credit Related Financial Instruments

In the ordinary course of business, the Company has entered into commitments to extend credit, commercial letters of credit and standby letters of credit. Such financial instruments are recorded when they are funded.

Changes in Accounting Principles and Effects of New Accounting Pronouncements

ASU 2016-02, Leases (Topic 842). This ASU requires lessees to put most leases on their balance sheets but recognize expenses in the income statement in a manner similar to current accounting treatment. This ASU changes the guidance on sale-leaseback transactions, initial direct costs and lease execution costs, and, for lessors, modifies the classification criteria and the accounting for sales-type and direct financing leases. For public business entities, this ASU is effective for annual periods beginning after December 15, 2018, and interim periods therein. Entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. ASU 2016-02 was effective for the Company on January 1, 2019. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements as of June 30, 2019.

ASU 2016-13, Financial Instruments – Credit Losses (Topic 326). This ASU sets forth a “current expected credit loss” (CECL) model which requires the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable supported forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit exposures. This ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is currently assessing the impact of the adoption of this ASU on its consolidated financial statements. On July 17, 2019, FASB voted to delay the effective date of this ASU for smaller reporting companies, such as the Company, until fiscal years beginning after December 15, 2022. 

ASU 2017-04, Intangibles: Goodwill and Other: Simplifying the Test for Goodwill Impairment. ASU 2017-04 eliminates Step 2 from the goodwill impairment test to simplify the subsequent measurement of goodwill. The annual, or interim, goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. In addition, the income tax effects of tax deductible goodwill on the carrying amount of the reporting unit should be considered when measuring the goodwill impairment loss, if applicable. ASU 2017-04 also eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform Step 2 of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The standard must be adopted using a prospective basis and the nature and reason for the change in accounting principle should be disclosed upon transition. ASU 2017-04 is effective for annual or any interim goodwill impairment tests in reporting periods beginning after December 15, 2019. Early adoption is permitted on testing dates after January 1, 2017. The Company is currently evaluating the impact this ASU will have on the Company’s Consolidated Financial Statements, but it is not expected to have a material impact.

13

Part I (Continued)
Item 1 (Continued)  

(1) Summary of Significant Accounting Policies (Continued)

Changes in Accounting Principles and Effects of New Accounting Pronouncements (Continued)

ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities. This ASU shortens the amortization period for the premium on certain purchased callable debt securities to the earliest call date. Today, entities generally amortize the premium over the contractual life of the security. The new guidance does not change the accounting for purchased callable debt securities held at a discount; the discount continues to be amortized to maturity. ASU No. 2017-08 is effective for interim and annual reporting periods beginning after December 15, 2018; early adoption is permitted. The guidance calls for a modified retrospective transition approach under which a cumulative-effect adjustment will be made to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. ASU 2017-08 was effective for the Company on January 1, 2019. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements.

ASU 2018-13, Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement (Topic 820). This ASU modifies the disclosure requirements on fair value measurements. ASU 2018-13 is effective for interim and annual reporting periods after December 15, 2019; early adoption is permitted. The Company is currently evaluating the provisions of ASU 2018-13 to determine the potential impact the new standard will have on the Company’s Consolidated Financial Statements.

ASU 2019-1, Leases (Topic 842): Codification Improvements. ASU 2019-1 amends certain aspects of ASU 2016-02, Leases. This ASU addresses the following issues: (1) determining the fair value of the underlying asset by lessors that are not manufacturers or dealers; (2) statement of cash flow presentation for sales – type and direct financing leases by lessors within the scope of ASC 942, Financial Services – Depository and Lending; and (3) clarification of interim disclosure requirements during transition. ASU 2019-1 is effective for the first and second issues for interim and annual reporting periods beginning after December 15, 2019; early adoption is permitted. If an entity early adopts, the ASU will be applied as of the date the entity first applies ASU 2016-02. For the third issue, there is no transition and effective date because the amendments are to the original transition requirements in ASU 2016-02. The Company is currently evaluating the impact this ASU will have on the Company’s Consolidated Financial Statements, but it is not expected to have a material impact.

ASU 2019-04, Codification Improvements to Financial Instruments – Credit Losses (Topic 326), Derivatives and Hedging (Topic 815) and Financial Instruments (Topic 825). ASU 2019-4 clarifies certain aspects of ASU 2016-13, Financial Instruments – Credit Losses; ASU 2017-12, Hedging Activities; and ASU 2016-1, Financial Instruments. For amendments dealing with ASU 2016-13, which is currently the only standard of the three listed in this update that would apply for the Company, it addresses accrued interest with a financing receivable or investment; transfers between classifications or categories for loans and debt securities; the inclusion of recoveries on financial assets in the calculation of the current expected credit losses allowance for both pools of financial assets and individual financial assets. These amendments dealing with ASU 2016-13 are effective on the same date as the effective date in ASU 2016-13. The Company is currently assessing the impact of the adoption of this ASU on its consolidated financial statements.

(2) Business Acquisitions

Acquisition of Albany, Georgia Branch from Planters First Bank

On October 22, 2018, the Bank completed its acquisition of one branch office and a vacant lot from Planters First Bank (“PFB”) located in Albany, Georgia for a total cash consideration of $10.2 million. The assets and liabilities as of the effective date of the transaction were recorded at their respective estimated fair values. The excess of the purchase price over the net estimated fair values of the acquired assets and liabilities was allocated to identifiable intangible assets with the remaining excess allocated to goodwill. In the periods following the acquisition, the financial statements will include the results attributable to the Albany branch purchase beginning on the date of purchase. For the three and six months period ended June 30, 2019, the revenues attributable to the Albany branch were $58 thousand and $129 thousand, respectively. For the three and six months period ended June 30, 2019, net loss attributable to the Albany branch were $85 thousand and $159 thousand. It is impracticable to determine the pro-forma impact to the 2018 revenues and net income if the acquisition had occurred on January 1, 2018 as the Bank does not have access to those records for a single branch.

14

Part I (Continued)
Item 1 (Continued)  

(2) Business Acquisitions (Continued)

The following table provides the purchase price as of acquisition date, the identifiable assets acquired and liabilities assumed at their estimated fair values, and the resulting goodwill of $202 thousand recorded from the acquisition:

Purchase Price Consideration (in thousands):
Cash Consideration	$	10,238
Total purchase price for PFB branch acquisition	$	10,238
Assets acquired at fair value:
Cash and cash equivalents	$	195
Loans		20,430
Premises and equipment		773
Core deposit intangible		560
Other assets		123
Total fair value of assets acquired	$	22,081
Liabilities assumed at fair value:
Deposits	$	12,032
Other liabilities		13
Total fair value of liabilities assumed	$	12,045
Net Assets acquired at fair value:	$	10,036
Amount of goodwill resulting from acquisition	$	202

The total amount of goodwill arising from this transaction of $202 thousand is deductible for tax purposes, pursuant to section 197 of the Internal Revenue Code.

The Bank recorded all loans acquired at the estimated fair value on the purchase date with no carryover of the related allowance for loan losses. The Bank only acquired loans which were deemed to be performing loans with no signs of credit deterioration.

Acquisition of LBC Bancshares, Inc.

On May 1, 2019, the Company completed its acquisition of LBC Bancshares, Inc. (“LBC”), a bank holding company headquartered in LaGrange, Georgia. Upon consummation of the acquisition, LBC was merged with and into the Company, with Colony as the surviving entity in the merger. At that time, LBC’s wholly owned bank subsidiary, Calumet Bank, was also merged with and into the Bank. The acquisition expanded the Company’s market presence, as Calumet Bank had two full-service banking locations, one each in LaGrange, Georgia and Columbus, Georgia, as well as a loan production office in Atlanta, Georgia. Under the terms of the Merger Agreement, each LBC shareholder had the option to receive either $23.50 in cash or 1.3239 shares of the Company’s Common Stock in exchange for each share of LBC common stock, subject to customary proration and location procedures, such that 55 percent of LBC shares received the stock consideration and 45 percent received the cash consideration, and at least 50 percent of the merger consideration paid in the Company stock. As a result, the Company issued 1,054,029 common shares at a fair value of $18.7 million and paid $15.3 million in cash to the former shareholders of LBC as merger consideration.

The merger is being accounted for using the acquisition method accounting, in accordance with the provisions of FASB ASC 805-10 Business Combinations. Under this guidance, for accounting purposes, the Company is considered the acquirer in the merger, and as a result the historical financial statements of the combined entity are the historical consolidated financial statements of the Company.

The merger was effected by the issuance of shares of the Company’s common stock along with cash consideration to shareholders to LBC. The assets and liabilities of LBC as of the effective date of the merger were recorded at their respective estimated fair values and combined with those of the Company. The excess of the purchase price over the net estimated fair values of the acquired assets and liabilities was allocated to identifiable intangible assets with the remaining excess allocated to goodwill. Goodwill from the transaction was $15,390, none of which is deductible for income tax purposes. The goodwill recognized from the acquisition with LBC was created based on the consideration paid by the Company for enhancing its presence in Georgia in addition to our expected synergies from the combined operations of the Company and LBC.

15

Part I (Continued)
Item 1 (Continued)  

(2) Business Acquisitions (Continued)

In periods following the merger, the financial statements of the combined entity will include the results attributable to LBC beginning on the date the merger was completed. In the three and six month period ended June 30, 2019, the revenues attributable to LBC were approximately $1.77 million and $1.77 million. In the three and six month period ended June 30, 2019, the net income attributable to LBC was approximately $501 thousand and $501 thousand, respectively.

The pro-forma impact to 2018 revenues if the merger had occurred on January 1, 2018 would have been $2.35 million and $4.61 million for the three and six month period ending June 30, 2018, respectively. The pro-forma impact to 2018 net income if the merger had occurred on December 31, 2017 would have been $610 thousand and $1.15 million for the three and six month period ending June 30, 2018, respectively. While certain adjustments were made for the estimated impact of certain fair value adjustments, they are not indicative of what would have occurred had the merger taken place on the indicated date nor are they intended to represent or be indicative of future results of operations. In particular, no adjustments have been made to eliminate the amount of LBC’s provision for credit losses not have been necessary or any adjustments to estimate any additional income that would have been recorded as a result of fair value adjustments for the first six months of 2018 that may have occurred had the acquired loans been recorded at fair value as of the beginning of 2018. In addition, there are no adjustments to reflect any expenses that potentially could have been reduced for the first six months of 2018 had the merger occurred on January 1, 2018.

As of June 30, 2019, the Company recorded a preliminary allocation of the purchase price to LBC’s tangible and identifiable intangible assets acquired and liabilities assumed based on estimated fair values as of May 1, 2019. The following table presents the assets acquired and liabilities assumed as of May 1, 2019, and their fair value estimates. The Company continues its evaluation of the facts and circumstances available as of May 1, 2019, to assign fair values to assets acquired and liabilities assumed which could result in further adjustments to the fair values presented below.

Purchase Price Consideration (in thousands):
Shares of CBAN Common Stock Issued to LBC Shareholders as of May 1, 2019		1,054,029
Market Price of CBAN Common Stock on May 1, 2019	$	17.75
Estimated Fair Value of CBAN Common Stock Issued		18,709
Cash Consideration Paid		15,312
Total Consideration	$	34,021
Assets acquired at fair value:
Cash and Cash Equivalents	$	15,678
Investments Securities Available for Sale		49,172
Investments Securities Held to Maturity		1,766
Restricted Investments		479
Loans		130,568
Premises and Equipment		3,009
Core Deposit Intangible		3,100
Other Real Owned		243
Prepaid and Other Assets		6,487
Total Fair Value of Assets Acquired	$	210,502
Liabilities Assumed at Fair Value:
Deposits	$	(189,896	)
FHLB Advances		(1,000	)
Payables and Other Liabilities		(975	)
Total Fair Value of Liabilities Assumed	$	(191,871	)
Net Assets Acquired at Fair Value:	$	18,631
Amount of Goodwill Resulting From Acquisition	$	15,390

16

Part I (Continued)
Item 1 (Continued)  

(2) Business Acquisitions (Continued)

In the acquisition, the Company purchased $130.57 million of loans at fair value, net of $2.17 million, or 1.63%, estimated discount to the outstanding principal balance. Of the total loans acquired, management identified $176 thousand that were considered to be credit impaired and are accounted for under ASC Topic 310-30. The table below summarizes the total contractually required principal and interest cash payments, management’s estimate of expected total cash payments and fair value of the loans as of the acquisition date for purchased credit impaired loans. Contractually required principal and interest payments have been adjusted for estimated prepayments.

Contractually Required Principal and Interest	$	695
Non-accretable Difference		(519	)
Cash Flows Expected to be Collected		176
Accretable Yield		-
Total Purchased Credit-Impaired Loans Acquired	$	176

The following table presents the acquired loan data for the LBC acquisition.

	Fair Value of Acquired Loans at Acquisition Date		Gross Contractual Amounts Receivable at Acquisition Date		Estimate at Acquisition Date of Contractual Cash Flows Not Expected to be Collected
Acquired receivables subject to ASC 310-30	$	176	$	695	$	519
Acquired receivables not subject to ASC 310-30	$	130,392	$	132,381	$	-

Acquisition of PFB Mortgage from Planters First Bank

On May 1, 2019, the Bank completed its acquisition of PFB Mortgage, the secondary market mortgage business of Planters First Bank for a total cash consideration of $833 thousand. It included fixed assets and all pipeline loans, and customers will not be affected as loans will close and be processed as normal. Planters First Bank retained closed loans not yet sold (loans held for sale). The assets and liabilities as of the effective date of the transaction were recorded at their respective estimated fair values. The excess of the purchase price over the net estimated fair values of the acquired assets and liabilities was allocated to identifiable intangible assets with the remaining excess allocated to goodwill. In the periods following the acquisition, the financial statements will include the results attributable to PFB Mortgage beginning on the date of purchase. For the three and six months period ended June 30, 2019, the revenues attributable to PFB Mortgage were $228 thousand and $228 thousand, respectively. For the three and six months period ended June 30, 2019, net loss attributable to PFB Mortgage were $211 thousand and $211 thousand. It is impracticable to determine the pro-forma impact to the 2018 revenues and net income if the acquisition had occurred on January 1, 2018 as the Bank does not have access to those records for PFB Mortgage.

17

Part I (Continued)
Item 1 (Continued)  

(2) Business Acquisitions (Continued)

The following table provides the purchase price as of acquisition date, the identifiable assets acquired and liabilities assumed at their estimated fair values, and the resulting goodwill of $541 thousand recorded from the acquisition:

Purchase Price Consideration (in thousands):
Cash Consideration Paid	$	833
Total Consideration	$	833
Assets acquired at fair value:
Premises and Equipment	$	78
Premium on Loan Commitments		209
Other Assets		5
Total Fair Value of Assets Acquired	$	292
Liabilities Assumed at Fair Value:
Total Fair Value of Liabilities Assumed	$	-
Net Assets Acquired at Fair Value:	$	292
Amount of Goodwill Resulting From Acquisition	$	541

The total amount of goodwill arising from this transaction of $541 thousand is deductible for tax purposes, pursuant to section 197 of the Internal Revenue Code.

(3) Investment Securities

Investment securities as of June 30, 2019 and December 31, 2018 are summarized as follows:

June 30, 2019	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Securities Available for Sale:
U. S. Government Agencies Mortgage-Backed	$	403,165	$	3,406	$	(3,163	)	$	403,408
State, County & Municipal		3,511		63		-			3,574
Corporate Bonds		2,870		-		(13	)		2,857
	$	409,546	$	3,469	$	(3,176	)	$	409,839

December 31, 2018	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Securities Available for Sale:
U. S. Government Agencies Mortgage-Backed	$	356,498	$	303	$	(10,596	)	$	346,205
State, County & Municipal		4,008		18		(37	)		3,989
Corporate Bonds		2,927		-		(55	)		2,872
	$	363,433	$	321	$	(10,688	)	$	353,066

18

Part I (Continued)
Item 1 (Continued)  

(3) Investment Securities (Continued)

The amortized cost and fair value of investment securities as of June 30, 2019, by contractual maturity, are shown hereafter. Expected maturities may differ from contractual maturities for certain investments because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. This is often the case with mortgage-backed securities, which are disclosed separately in the table below.

	Securities
	Available for Sale
	Amortized Cost		Fair Value
Due In One Year or Less	$	-	$	-
Due After One Year Through Five Years		4,142		4,147
Due After Five Years Through Ten Years		1,135		1,167
Due After Ten Years		1,104		1,117
	$	6,381	$	6,431
Mortgage-Backed Securities		403,165		403,408
	$	409,546	$	409,839

Proceeds from the sale of investments available for sale totaled $56,920 and $11,268 for the first six months of 2019 and 2018, respectively. The sale of investments available for sale during the first six months of 2019 resulted in gross realized gains $117 and losses of $52. The sale of investments available for sale during the first six months of 2018 resulted in gross realized gains of $116 and losses of $0.

Proceeds from the sale of investments held to maturity totaled $1,766 for the first six months of 2019. The sale of investments held to maturity during the first six months of 2019 resulted in gross realized gains of $0 and losses of $0. The Bank did not sell any investments held to maturity during the first six months of 2018. Therefore, the Bank did not have any proceeds, gains or losses during the first six months of 2018.

Investment securities having a carrying value approximating $169,821 and $178,978 as of June 30, 2019 and December 31, 2018, respectively, were pledged to secure public deposits and for other purposes.

19

Part I (Continued)
Item 1 (Continued)  

(3) Investment Securities (Continued)

Information pertaining to securities with gross unrealized losses at June 30, 2019 and December 31, 2018 aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows:

	Less Than 12 Months					12 Months or Greater					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
June 30, 2019
U. S. Government Agencies Mortgage-Backed	$	9,891	$	(19	)	$	182,244	$	(3,144	)	$	192,135	$	(3,163	)
State, County and Municipal		-		-			-		-			-		-
Corporate Bonds		2,015		(6	)		842		(7	)		2,857		(13	)
	$	11,906	$	(25	)	$	183,086	$	(3,151	)	$	194,992	$	(3,176	)
December 31. 2018
U.S. Government Agencies Mortgage-Backed	$	39,083	$	(504	)	$	255,747	$	(10,092	)	$	294,830	$	(10,596	)
State, County and Municipal		612		(3	)		1,882		(34	)		2,494		(37	)
Corporate Bonds		2,009		(21	)		863		(34	)		2,872		(55	)
	$	41,704	$	(528	)	$	258,492	$	(10,160	)	$	300,196	$	(10,688	)

Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.

At June 30, 2019, 103 securities have unrealized losses which have depreciated 1.60 percent from the Company’s amortized cost basis. These securities are guaranteed by either the U.S. Government, other governments or U.S. corporations. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred and the results of reviews of the issuer’s financial condition. The unrealized losses are largely due to increases in market interest rates over the yields available at the time the underlying securities were purchased. As management has the ability to hold debt securities until maturity, or for the foreseeable future if classified as available-for-sale, no declines are deemed to be other than temporary.

20

Part I (Continued)
Item 1 (Continued)  

(4) Loans

The following table presents the composition of loans segregated by legacy and purchased loans and by class of loans, as of June 30, 2019 and December 31, 2018. Purchased loans are defined as loans that were acquired in bank acquisitions.

	June 30, 2019
	Legacy Loans		Purchased Loans		Total
Commercial and Agricultural
Commercial	$	43,561	$	24,974	$	68,535
Agricultural		18,561		300		18,861
Real Estate
Commercial Construction		60,949		12,029		72,978
Residential Construction		13,193		5,429		18,622
Commercial		376,063		57,753		433,816
Residential		177,183		28,005		205,188
Farmland		70,413		3,859		74,272
Consumer and Other
Consumer		17,860		5,206		23,066
Other		18,262		1,671		19,933
Total Loans	$	796,045	$	139,226	$	935,271

	December 31, 2018
	Legacy Loans		Purchased Loans		Total
Commercial and Agricultural
Commercial	$	50,181	$	7,229	$	57,410
Agricultural		15,993		806		16,799
Real Estate
Commercial Construction		46,609		1,240		47,849
Residential Construction		12,242		258		12,500
Commercial		366,792		6,742		373,534
Residential		185,699		2,015		187,714
Farmland		62,674		35		62,709
Consumer and Other
Consumer		18,423		62		18,485
Other		5,027		-		5,027
Total Loans	$	763,640	$	18,387	$	782,027

21

Part I (Continued)
Item 1 (Continued)  

(4) Loans (Continued)

Commercial and industrial loans are extended to a diverse group of businesses within the Company’s market area. These loans are often underwritten based on the borrower’s ability to service the debt from income from the business. Real estate construction loans often require loan funds to be advanced prior to completion of the project. Due to uncertainties inherent in estimating construction costs, changes in interest rates and other economic conditions, these loans often pose a higher risk than other types of loans. Consumer loans are originated at the Bank level. These loans are generally smaller loan amounts spread across many individual borrowers to help minimize risk.

Credit Quality Indicators. As part of the ongoing monitoring of the credit quality of the loan portfolio, management tracks certain credit quality indicators including trends related to (i) the risk grade assigned to commercial and consumer loans, (ii) the level of classified commercial loans, (iii) net charge-offs, (iv) nonperforming loans, and (v) the general economic conditions in the Company’s geographic markets.

The Company uses a risk grading matrix to assign a risk grade to each of its loans. Loans are graded on a scale of 1 to 8. A description of the general characteristics of the grades is as follows:

● Grades 1 and 2 – Borrowers with these assigned grades range in risk from virtual absence of risk to minimal risk. Such loans may be secured by Company-issued and controlled certificates of deposit or properly margined equity securities or bonds. Other loans comprising these grades are made to companies that have been in existence for a long period of time with many years of consecutive profits and strong equity, good liquidity, excellent debt service ability and unblemished past performance, or to exceptionally strong individuals with collateral of unquestioned value that fully secures the loans. Loans in this category fall into the “pass” classification.

● Grades 3 and 4 – Loans assigned these “pass” risk grades are made to borrowers with acceptable credit quality and risk. The risk ranges from loans with no significant weaknesses in repayment capacity and collateral protection to acceptable loans with one or more risk factors considered to be more than average.

● Grade 5 – This grade includes “special mention” loans on management’s watch list and is intended to be used on a temporary basis for pass grade loans where risk-modifying action is intended in the short-term.

● Grade 6 – This grade includes “substandard” loans in accordance with regulatory guidelines. This category includes borrowers with well-defined weaknesses that jeopardize the payment of the debt in accordance with the agreed terms. Loans considered to be impaired are assigned this grade, and these loans often have assigned loss allocations as part of the allowance for loan and lease losses. Generally, loans on which interest accrual has been stopped would be included in this grade.

● Grades 7 and 8 – These grades correspond to regulatory classification definitions of “doubtful” and “loss,” respectively. In practice, any loan with these grades would be for a very short period of time, and generally the Company has no loans with these assigned grades. Management manages the Company’s problem loans in such a way that uncollectible loans or uncollectible portions of loans are charged off immediately with any residual, collectible amounts assigned a risk grade of 6.

22

Part I (Continued)
Item 1 (Continued)  

(4) Loans (Continued)

The following table presents the loan portfolio, excluding purchased loans, by credit quality indicator (risk grade) as of June 30, 2019 and December 31, 2018. Those loans with a risk grade of 1, 2, 3 or 4 have been combined in the pass column for presentation purposes. For the period ending June 30, 2019, the Company did not have any loans classified as “doubtful” or a “loss”.

	Pass		Special Mention		Substandard		Total Loans
June 30, 2019
Commercial and Agricultural
Commercial	$	41,376	$	1,471	$	714	$	43,561
Agricultural		16,050		1,137		1,374		18,561
Real Estate
Commercial Construction		60,546		117		286		60,949
Residential Construction		12,839		-		354		13,193
Commercial		360,806		8,048		7,209		376,063
Residential		162,927		4,015		10,241		177,183
Farmland		64,519		3,000		2,894		70,413
Consumer and Other
Consumer		17,550		84		226		17,860
Other		18,262		-		-		18,262
Total Loans	$	754,875	$	17,872	$	23,298	$	796,045
December 31, 2018
Commercial and Agricultural
Commercial	$	48,579	$	729	$	873	$	50,181
Agricultural		14,858		637		498		15,993
Real Estate
Commercial Construction		45,847		45		717		46,609
Residential Construction		12,242		-		-		12,242
Commercial		351,397		7,662		7,733		366,792
Residential		168,035		7,107		10,557		185,699
Farmland		58,678		1,912		2,084		62,674
Consumer and Other
Consumer		18,042		59		322		18,423
Other		5,018		5		4		5,027
Total Loans	$	722,696	$	18,156	$	22,788	$	763,640

23

Part I (Continued)
Item 1 (Continued)  

(4) Loans (Continued)

The following table presents the purchased loan portfolio by credit quality indicator (risk grade) as of June 30, 2019 and December 31, 2018. Those loans with a risk grade of 1, 2, 3 or 4 have been combined in the pass column for presentation purposes. For the period ending June 30, 2019, the Company did not have any loans classified as “doubtful” or a “loss”.

	Pass		Special Mention		Substandard		Total Loans
June 30, 2019
Commercial and Agricultural
Commercial	$	24,632	$	121	$	221	$	24,974
Agricultural		300		-		-		300
Real Estate
Commercial Construction		11,960		-		69		12,029
Residential Construction		5,429		-		-		5,429
Commercial		57,364		389		-		57,753
Residential		27,682		298		25		28,005
Farmland		3,820		-		39		3,859
Consumer and Other
Consumer		5,202		-		4		5,206
Other		1,671		-		-		1,671
Total Loans	$	138,060	$	808	$	358	$	139,226
December 31, 2018
Commercial and Agricultural
Commercial	$	7,229	$	-	$	-	$	7,229
Agricultural		806		-		-		806
Real Estate
Commercial Construction		1,240		-		-		1,240
Residential Construction		258		-		-		258
Commercial		6,742		-		-		6,742
Residential		2,015		-		-		2,015
Farmland		35		-		-		35
Consumer and Other
Consumer		62		-		-		62
Other		-		-		-		-
Total Loans	$	18,387	$	-	$	-	$	18,387

A loan’s risk grade is assigned at the inception of the loan and is based on the financial strength of the borrower and the type of collateral. Loan risk grades are subject to reassessment at various times throughout the year as part of the Company’s ongoing loan review process. Loans with an assigned risk grade of 6 or below and an outstanding balance of $250,000 or more are reassessed on a quarterly basis. During this reassessment process individual reserves may be identified and placed against certain loans which are not considered impaired.

In assessing the overall economic condition of the markets in which it operates, the Company monitors the unemployment rates for its major service areas. The unemployment rates are reviewed on a quarterly basis as part of the allowance for loan loss determination.

24

Part I (Continued)
Item 1 (Continued)  

(4) Loans (Continued)

Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Generally, loans are placed on nonaccrual status if principal or interest payments become 90 days past due or when, in management’s opinion, the borrower may be unable to meet payment obligations as they become due, as well as when required by regulatory provision. Loans may be placed on nonaccrual status regardless of whether or not such loans are considered past due.

The following table represents an age analysis of past due loans and nonaccrual loans for legacy loans, segregated by class of loans, excluding purchased loans as of June 30, 2019 and December 31, 2018:

	Accruing Loans
			90 Days
	30-89 Days		or More		Total Accruing		Nonaccrual
	Past Due		Past Due		Loans Past Due		Loans		Current Loans		Total Loans
June 30, 2019
Commercial and Agricultural
Commercial	$	365	$	-	$	365	$	442	$	42,754	$	43,561
Agricultural		-		-		-		1,304		17,257		18,561
Real Estate
Commercial Construction		123		-		123		36		60,790		60,949
Residential Construction		-		-		-		354		12,839		13,193
Commercial		822		-		822		1,849		373,392		376,063
Residential		2,276		-		2,276		2,786		172,121		177,183
Farmland		139		-		139		2,669		67,605		70,413
Consumer and Other
Consumer		61		2		63		131		17,666		17,860
Other		-		-		-		-		18,262		18,262
Total Loans	$	3,786	$	2	$	3,788	$	9,571	$	782,686	$	796,045
December 31, 2018
Commercial and Agricultural
Commercial	$	282	$	-	$	282	$	637	$	49,262	$	50,181
Agricultural		117		-		117		413		15,463		15,993
Real Estate
Commercial Construction		88		-		88		463		46,058		46,609
Residential Construction		-		-		-		-		12,242		12,242
Commercial		679		-		679		2,966		363,147		366,792
Residential		6,882		-		6,882		2,734		176,083		185,699
Farmland		76		-		76		2,052		60,546		62,674
Consumer and Other
Consumer		110		-		110		213		18,100		18,423
Other		-		-		-		4		5,023		5,027
Total Loans	$	8,234	$	-	$	8,234	$	9,482	$	745,924	$	763,640

25

Part I (Continued)
Item 1 (Continued)  

(4) Loans (Continued)

The following table represents an age analysis of past due loans and nonaccrual loans, segregated by class of loans, for purchased loans as of June 30, 2019 and December 31, 2018:

	Accruing Loans
			90 Days
	30-89 Days		or More		Total Accruing		Nonaccrual
	Past Due		Past Due		Loans Past Due		Loans		Current Loans		Total Loans
June 30, 2019
Commercial and Agricultural
Commercial	$	178	$	-	$	178	$	43	$	24,753	$	24,974
Agricultural		-		-		-		-		300		300
Real Estate
Commercial Construction		-		-		-		69		11,960		12,029
Residential Construction		-		-		-		-		5,429		5,429
Commercial		-		-		-		-		57,753		57,753
Residential		9		-		9		25		27,971		28,005
Farmland		-		-		-		39		3,820		3,859
Consumer and Other
Consumer		16		-		16		4		5,186		5,206
Other		-		-		-		-		1,671		1,671
Total Loans	$	203	$	-	$	203	$	180	$	138,843	$	139,226
December 31, 2018
Commercial and Agricultural
Commercial	$	-	$	-	$	-	$	-	$	7,229	$	7,229
Agricultural		-		-		-		-		806		806
Real Estate
Commercial Construction		-		-		-		-		1,240		1,240
Residential Construction		-		-		-		-		258		258
Commercial		-		-		-		-		6,742		6,742
Residential		-		-		-		-		2,015		2,015
Farmland		-		-		-		-		35		35
Consumer and Other
Consumer		-		-		-		-		62		62
Other		-		-		-		-		-		-
Total Loans	$	-	$	-	$	-	$	-	$	18,387	$	18,387

26

Part I (Continued)
Item 1 (Continued)  

(4) Loans (Continued)

The following table details impaired loan data, including purchased credit impaired loans, as of June 30, 2019.

June 30, 2019
	Unpaid
	Contractual						Average		Interest			Interest
	Principal		Impaired		Related		Recorded		Income			Income
	Balance		Balance		Allowance		Investment		Recognized			Collected
With No Related Allowance Recorded
Commercial	$	442	$	442	$	-	$	525	$	15		$	16
Agricultural		736		716		-		544		9			21
Commercial Construction		104		104		-		115		3			3
Residential Construction		354		354		-		118		4			4
Commercial Real Estate		12,372		11,504		-		12,341		291			293
Residential Real Estate		3,872		3,849		-		3,979		83			98
Farmland		2,670		2,668		-		2,246		(25	)		17
Consumer		132		132		-		159		3			4
Other		-		-		-		2		-			-
		20,682		19,769		-		20,029		383			456
With An Allowance Recorded
Commercial		-		-		-		14		-			-
Agricultural		588		588		588		196		9			33
Commercial Construction		-		-		-		133		-			-
Residential Construction		-		-		-		-		-			-
Commercial Real Estate		3,031		3,031		897		2,902		61			62
Residential Real Estate		267		267		49		270		11			11
Farmland		359		359		32		361		13			12
Consumer		-		-		-		-		-			-
Other		-		-		-		-		-			-
		4,245		4,245		1,566		3,876		94			118
Purchased Credit Impaired Loans
Commercial		68		42		-		14		-			-
Commercial Construction		122		69		-		23		-			-
Residential Real Estate		23		14		-		5		-			-
Farmland		237		40		-		13		-			-
Consumer		195		-		-		-		-			-
		645		165		-		55		-			-
Total
Commercial		510		484		-		553		15			16
Agricultural		1,324		1,304		588		740		18			54
Commercial Construction		226		173		-		271		3			3
Residential Construction		354		354		-		118		4			4
Commercial Real Estate		15,403		14,535		897		15,243		352			355
Residential Real Estate		4,162		4,130		49		4,254		94			109
Farmland		3,266		3,067		32		2,620		(12	)		29
Consumer		327		132		-		159		3			4
Other		-		-		-		2		-			-
	$	25,572	$	24,179	$	1,566	$	23,960	$	477		$	574

27

Part I (Continued)
Item 1 (Continued)  

(4) Loans (Continued)

The following table details impaired loan data as of December 31, 2018. There were no purchased credit impaired loans and related allowance for loan losses as of December 31, 2018.

December 31, 2018
	Unpaid
	Contractual						Average		Interest		Interest
	Principal		Impaired		Related		Recorded		Income		Income
	Balance		Balance		Allowance		Investment		Recognized		Collected
With No Related Allowance Recorded
Commercial	$	595	$	595	$	-	$	526	$	21	$	24
Agricultural		434		413		-		383		18		25
Commercial Construction		132		132		-		69		8		8
Residential Contruction		-		-				-		-		-
Commercial Real Estate		12,164		12,164		-		11,040		582		583
Residential Real Estate		4,214		4,130		-		4,067		208		213
Farmland		2,054		2,052		-		1,361		53		82
Consumer		213		213		-		197		14		14
Other		4		4		-		1		-		-
		19,810		19,703		-		17,644		904		949
With An Allowance Recorded
Commercial		42		42		6		8		2		2
Agricultural		-		-		-		-		-		-
Commercial Construction		399		399		39		466		-		-
Residential Contruction		-		-		-		-		-		-
Commercial Real Estate		3,691		3,691		1,276		5,121		135		142
Residential Real Estate		274		274		61		98		8		8
Farmland		364		364		36		368		24		25
Consumer		-		-		-		-		-		-
Other		-		-		-		-		-		-
		4,770		4,770		1,418		6,061		169		177
Total
Commercial		637		637		6		534		23		26
Agricultural		434		413		-		383		18		25
Commercial Construction		531		531		39		535		8		8
Residential Contruction		-		-		-		-		-		-
Commercial Real Estate		15,855		15,855		1,276		16,161		717		725
Residential Real Estate		4,488		4,404		61		4,165		216		221
Farmland		2,418		2,416		36		1,729		77		107
Consumer		213		213		-		197		14		14
Other		4		4		-		1		-		-
	$	24,580	$	24,473	$	1,418	$	23,705	$	1,073	$	1,126

28

Part I (Continued)
Item 1 (Continued)  

(4) Loans (Continued)

The following table details impaired loan data as of June 30, 2018. There were no purchased credit impaired loans and related allowance for loan losses as of June 30, 2018.

June 30, 2018
	Unpaid
	Contractual						Average		Interest		Interest
	Principal		Impaired		Related		Recorded		Income		Income
	Balance		Balance		Allowance		Investment		Recognized		Collected
With No Related Allowance Recorded
Commercial	$	367	$	367	$	-	$	520	$	5	$	5
Agricultural		311		290		-		360		9		12
Commercial Construction		16		16		-		38		1		1
Residential Contruction		-		-		-		-		-		-
Commercial Real Estate		10,201		10,201		-		11,092		235		236
Residential Real Estate		3,892		3,805		-		4,113		87		89
Farmland		980		978		-		896		5		7
Consumer		200		200		-		199		6		6
Other		-		-		-		-		-		-
		15,967		15,857		-		17,218		348		356
With An Allowance Recorded
Commercial		-		-		-		-		-		-
Agricultural		-		-		-		-		-		-
Commercial Construction		482		482		54		487		2		2
Residential Contruction		-		-		-		-		-		-
Commercial Real Estate		5,047		5,047		1,371		5,371		106		99
Residential Real Estate		36		36		21		60		1		1
Farmland		367		367		28		369		12		12
Consumer		-		-		-		-		-		-
Other		-		-		-		-		-		-
		5,932		5,932		1,474		6,287		121		114
Total
Commercial		367		367		-		520		5		5
Agricultural		311		290		-		360		9		12
Commercial Construction		498		498		54		525		3		3
Residential Contruction		-		-		-		-		-		-
Commercial Real Estate		15,248		15,248		1,371		16,463		341		335
Residential Real Estate		3,928		3,841		21		4,173		88		90
Farmland		1,347		1,345		28		1,265		17		19
Consumer		200		200		-		199		6		6
Other		-		-		-		-		-		-
	$	21,899	$	21,789	$	1,474	$	23,505	$	469	$	470

29

Part I (Continued)
Item 1 (Continued)  

(4) Loans (Continued)

TDRs are troubled loans on which the original terms of the loan have been modified in favor of the borrower due to deterioration in the borrower’s financial condition. Each potential loan modification is reviewed individually and the terms of the loan are modified to meet the borrower’s specific circumstances at a point in time. Not all loan modifications are TDRs. Loan modifications are reviewed and approved by the Company’s senior lending staff, who then determine whether the loan meets the criteria for a TDR. Generally, the types of concessions granted to borrowers that are evaluated in determining whether a loan is classified as a TDR include:

● Interest rate reductions – Occur when the stated interest rate is reduced to a nonmarket rate or a rate the borrower would not be able to obtain elsewhere under similar circumstances.

● Amortization or maturity date changes – Result when the amortization period of the loan is extended beyond what is considered a normal amortization period for loans of similar type with similar collateral.

● Principal reductions – These are often the result of commercial real estate loan workouts where two new notes are created. The primary note is underwritten based upon our normal underwriting standards and is structured so that the projected cash flows are sufficient to repay the contractual principal and interest of the newly restructured note. The terms of the secondary note vary by situation and often involve that note being charged-off, or the principal and interest payments being deferred until after the primary note has been repaid. In situations where a portion of the note is charged-off during modification there is often no specific reserve allocated to those loans. This is due to the fact that the amount of the charge-off usually represents the excess of the original loan balance over the collateral value and the Company has determined there is no additional exposure on those loans.

As discussed in Note 1, Summary of Significant Accounting Policies, once a loan is identified as a TDR, it is accounted for as an impaired loan. The Company had no unfunded commitments to lend to a customer that has a troubled debt restructured loan as of June 30, 2019. The Company had no loan contracts restructured during the three month period ended and the six month period ended June 30, 2019 and 2018. Loans modified in a troubled debt restructuring are considered to be in default once the loan becomes 90 days past due. A TDR may cease being classified as impaired if the loan is subsequently modified at market terms and, has performed according to the modified terms for at least six months, and there has not been any prior principal forgiveness on a cumulative basis.

The Company had no loans that subsequently defaulted during the three months ended June 30, 2019 and 2018, respectively. The Company had no loans that subsequently defaulted during the six months ended June 30, 2019 and one loan that subsequently defaulted during the six months ended June 30, 2018. The loan totaling $131 thousand failed to continue to perform as agreed and was moved to non-accrual status.

30

Part I (Continued)
Item 1 (Continued)  

(5) Allowance for Loan Losses

The following tables detail activity in the allowance for loan losses, segregated by class of loan, for the six month period ended June 30, 2019 and June 30, 2018. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other loan categories and periodically may result in reallocation within the provision categories.

June 30, 2019
	Beginning										Ending
	Balance		Charge-Offs			Recoveries		Provision			Balance
Commercial and Agricultural
Commercial	$	370	$	(125	)	$	16	$	122		$	383
Agricultural		248		-			1		789			1,038
Real Estate
Commercial Construction		115		(29	)		54		(130	)		10
Residential Construction		16		-			-		(14	)		2
Commercial		4,549		(56	)		38		(790	)		3,741
Residential		1,181		(647	)		159		152			845
Farmland		702		(63	)		3		47			689
Consumer and Other
Consumer		86		(179	)		27		129			63
Other		10		-			3		5			18
	$	7,277	$	(1,099	)	$	301	$	310		$	6,789

June 30, 2018
	Beginning										Ending
	Balance		Charge-Offs			Recoveries		Provision			Balance
Commercial and Agricultural
Commercial	$	447	$	(116	)	$	85	$	28		$	444
Agricultural		186		(123	)		7		192			262
Real Estate
Commercial Construction		1,216		-			38		(1,172	)		82
Residential Construction		-		-			-		-			-
Commercial		3,874		(258	)		37		753			4,406
Residential		968		(89	)		75		112			1,066
Farmland		780		-			9		79			868
Consumer and Other
Consumer		34		(135	)		49		82			30
Other		3		-			2		(4	)		1
	$	7,508	$	(721	)	$	302	$	70		$	7,159

Management continually evaluates the allowance for loan losses methodology seeking to refine and enhance this process as appropriate, and it is likely that the methodology will continue to evolve over time.

31

Part I (Continued)
Item 1 (Continued)  

(5) Allowance for Loan Losses (Continued)

The Company determines its individual reserves during its quarterly review of substandard loans. This process involves reviewing all loans with a risk grade of 6 or greater and an outstanding balance of $250,000 or more, regardless of the loans impairment classification. At June 30, 2019, there were 123 impaired loans totaling $3.8 million below the $250,000 review threshold which were not individually reviewed for impairment. Those loans were subject to the bank’s general loan loss reserve methodology and are included in the “Collectively Evaluated for Impairment” column of the following tables. Likewise, at June 30, 2018, there were 125 impaired loans totaling $3.1 million which were below the $250,000 review threshold and were subject to the bank’s general loan loss reserve methodology and are included in the “Collectively Evaluated for Impairment” column of the following tables.

Since not all loans in the substandard category are considered impaired, this quarterly review process may result in the identification of specific reserves on unimpaired loans. Management considers those loans graded substandard, but not classified as impaired, to be higher risk loans and, therefore, makes specific allocations to the allowance for those loans if warranted. The total of such loans is $9.26 million and $9.55 million as of June 30, 2019 and 2018, respectively. Specific allowance allocations were made for these loans totaling $1.66 million and $1.30 million as of June 30, 2019 and 2018, respectively. Since these loans are not considered impaired, both the loan balance and related specific allocation are included in the “Collectively Evaluated for Impairment” column of the following tables.

32

Part I (Continued)
Item 1 (Continued)  

(5) Allowance for Loan Losses (Continued)

The following tables present breakdowns of the allowance for loan losses, segregated by impairment methodology for June 30, 2019 and 2018. For June 30, 2018, there were no purchased credit impaired loans and related allowance for loan losses.

June 30, 2019
	Ending Allowance Balance								Ending Loan Balance
	Individually		Collectively		Purchased				Individually		Collectively		Purchased
	Evaluated for		Evaluated for		Credit				Evaluated for		Evaluated for		Credit
	Impairment		Impairment		Impaired		Total		Impairment		Impairment		Impaired		Total
Commercial and Agricultural
Commercial	$	-	$	383	$	-	$	383	$	16	$	68,477	$	42	$	68,535
Agricultural		588		450		-		1,038		850		18,011		-		18,861
Real Estate
Commercial Construction		-		10		-		10		67		72,842		69		72,978
Residential Construction		-		2		-		2		354		18,268		-		18,622
Commercial		897		2,844		-		3,741		14,243		419,573		-		433,816
Residential		49		796		-		845		1,914		203,260		14		205,188
Farmland		32		657		-		689		2,752		71,480		40		74,272
Consumer and Other
Consumer		-		63		-		63		-		23,066		-		23,066
Other		-		18		-		18		-		19,933		-		19,933
Total End of Period Balance	$	1,566	$	5,223	$	-	$	6,789	$	20,196	$	914,910	$	165	$	935,271

June 30, 2018
	Ending Allowance Balance						Ending Loan Balance
	Individually		Collectively				Individually		Collectively
	Evaluated for		Evaluated for				Evaluated for		Evaluated for
	Impairment		Impairment		Total		Impairment		Impairment		Total
Commercial and Agricultural
Commercial	$	-	$	444	$	444	$	77	$	44,952	$	45,029
Agricultural		-		262		262		5		20,032		20,037
Real Estate
Commercial Construction		54		28		82		481		48,428		48,909
Residential Construction		-		-		-		-		11,541		11,541
Commercial		1,371		3,035		4,406		15,187		336,876		352,063
Residential		21		1,045		1,066		1,910		185,681		187,591
Farmland		28		840		868		1,032		66,835		67,867
Consumer and Other
Consumer		-		30		30		-		18,746		18,746
Other		-		1		1		-		15,013		15,013
Total End of Period Balance	$	1,474	$	5,685	$	7,159	$	18,692	$	748,104	$	766,796

33

Part I (Continued)
Item 1 (Continued)  

(6) Other Real Estate Owned

The aggregate carrying amount of Other Real Estate Owned (“OREO”) at June 30, 2019 and December 31, 2018 was $987 and $1,841, respectively. All of the Company’s other real estate owned represents properties acquired through foreclosure or deed in lieu of foreclosure. The following table details the change in OREO for the six months ended June 30, 2019 and the year ended December 31, 2018.

	Six Months Ended			Twelve Months Ended
	June 30, 2019			December 31, 2018
Balance, Beginning	$	1,841		$	4,256
Additions		166			793
Acquired in Acquisition		243			-
Sales of OREO		(2,114	)		(2,949	)
Transfer to Bank Premises		-			(300	)
Gains (Losses) on Sale		955			303
Provision for Losses		(104	)		(262	)
Balance, Ending	$	987		$	1,841

At June 30, 2019, the Company held $120 thousand of residential real estate property as foreclosed property compared to $565 thousand as of December 31, 2018.  Also at June 30, 2019, $1,076 thousand of consumer mortgage loans collateralized by residential real estate property were in the process of foreclosure according to local requirements of the applicable jurisdictions. At December 31, 2018, only $25 thousand of consumer mortgage loans collateralized by residential real estate property were in the process of foreclosure according to local requirements of the applicable jurisdictions.

(7) Deposits

The aggregate amount of overdrawn deposit accounts reclassified as loan balances totaled $441 thousand and $476 thousand as of June 30, 2019 and December 31, 2018.

Components of interest-bearing deposits as of June 30, 2019 and December 31, 2018 are as follows:

	Six Months Ended		Twelve Months Ended
	June 30, 2019		December 31, 2018
Interest-Bearing Demand	$	591,236	$	471,794
Savings		84,606		79,453
Time, $250,000 and Over		71,359		53,881
Other Time		318,211		287,150
	$	1,065,412	$	892,278

At June 30, 2019 and December 31, 2018, the Company had reciprocal deposits of $109,638 and $80,535, respectively. All of these reciprocal deposits represent Insured Cash Sweep (“ICS”) deposits and Certificate of Deposits Account Registry Service (“CDARS”) deposits. The ICS deposits and CDARS deposits are ones in which customers placed core deposits into the program for FDIC insurance coverage and the Company receives reciprocal deposits in a like amount. Due to changes in regulatory rules with reciprocal deposits, all of the Company’s reciprocal deposits were excluded from being treated as brokered deposits at June 30, 2019. The aggregate amount of short-term jumbo certificates of deposit, each with a minimum denomination of $250,000 was approximately $58,233 and $41,104 as of June 30, 2019 and December 31, 2018, respectively. The aggregate amount of certificates of deposit, each with a minimum deposit of $250,000 was $71,359 and $53,881 as of June 30, 2019 and December 31, 2018.

34

Part I (Continued)
Item 1 (Continued)  

(7) Deposits (Continued)

As of June 30, 2019 and December 31, 2018, the scheduled maturities of certificates of deposits are as follows:

Maturity	June 30, 2019		December 31, 2018
One Year and Under	$	277,759	$	241,366
One to Three Years		98,060		82,412
Three Years and Over		13,751		17,253
	$	389,570	$	341,031

(8) Other Borrowed Money

Other borrowed money at June 30, 2019 and December 31, 2018 is summarized as follows:

	June 30, 2019		December 31, 2018
Federal Home Loan Bank Advances	$	40,000	$	44,000
Other Borrowings		15,063		-
	$	55,063	$	44,000

Advances from the Federal Home Loan Bank (“FHLB”) have maturities ranging from 2020 to 2028 and interest rates ranging from 0.98 percent to 3.51 percent. As collateral on the outstanding FHLB advances, the Company has provided a blanket lien on its portfolio of qualifying residential first mortgage loans, commercial loans, multifamily loans and HELOC loans. At June 30, 2019, the book value of those loans pledged is $168,066. At June 30, 2019, the Company had remaining credit availability from the FHLB of $261,264. The Company may be required to pledge additional qualifying collateral in order to utilize the full amount of the remaining credit line.

On May 1, 2019, the Company completed a borrowing arrangement with a correspondent bank for $10.0 million. The term note is secured by the Bank’s stock, expires on May 1, 2024, and bears a fixed interest rate of 4.70 percent. The proceeds were used for the acquisition of LBC Bancshares, Inc. and its subsidiary, Calumet Bank. As of June 30, 2019, the outstanding balance totaled $9.8 million.

On May 1, 2019, the Company completed a revolving credit arrangement with a correspondent bank with a maximum line amount of $10.0 million. This line of credit is secured by the Bank’s stock, expires on May 1, 2021, and bears a variable interest rate of Wall Street Journal Prime minus 0.40 percent. The Company advanced $5.3 million that was used toward the acquisition of LBC Bancshares, Inc. and its subsidiary, Calumet Bank. As of June 30, 2019, the outstanding balance totaled $5.3 million.

The aggregate stated maturities of other borrowed money at June 30, 2019 are as follows:

Year	Amount
2019	$	500
2020		4,500
2021		6,313
2022		19,000
2023		7,000
2024 and After		17,750
	$	55,063

The Company also has available federal funds lines of credit with various financial institutions totaling $48,000, none of which were outstanding at June 30, 2019.

The Company has the ability to borrow funds from the Federal Reserve Bank (“FRB”) of Atlanta utilizing the discount window. The discount window is an instrument of monetary policy that allows eligible institutions to borrow money from the FRB on a short-term basis to meet temporary liquidity shortages caused by internal or external disruptions. At June 30, 2019, the Company had borrowing capacity available under this arrangement, with no outstanding balances. The Company would be required to pledge certain available-for-sale investment securities as collateral under this agreement.

35

Part I (Continued)
Item 1 (Continued)  

(9) Subordinated Debentures (Trust Preferred Securities)

				3 Month		Added		Total			5 Year
Description	Date	Amount		Libor Rate		Points		Rate		Maturity	Call Option
Colony Bankcorp Statutory Trust III	6/17/2004	$	4,640		2.41025		2.68		5.09025	6/14/2034	6/17/2009
Colony Bankcorp Capital Trust I	4/13/2006		5,155		2.31888		1.50		3.81888	4/13/2036	4/13/2011
Colony Bankcorp Capital Trust II	3/12/2007		9,279		2.31888		1.65		3.96888	3/12/2037	3/12/2012
Colony Bankcorp Capital Trust III	9/14/2007		5,155		2.58275		1.40		3.98275	9/14/2037	9/14/2012

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

The Trust Preferred Securities pay interest quarterly.

(10) Commitments and Contingencies

Credit-Related Financial Instruments. The Company is a party to credit related financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, standby letters of credit and commercial letters of credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets.

The Company’s exposure to credit loss is represented by the contractual amount of these commitments. The Company follows the same credit policies in making commitments as it does for on-balance sheet instruments. We evaluate each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary, upon extension of credit, is based on management’s credit evaluation of the borrower. Collateral held varies, but may include cash or cash equivalents, negotiable instruments, real estate, accounts receivable, inventory, oil, gas and mineral interests, property, plant, and equipment.

At June 30, 2019 and December 31, 2018 the following financial instruments were outstanding whose contract amounts represent credit risk:

	Contract Amount
	June 30, 2019		December 31, 2018
Loan Commitments	$	146,481	$	98,736
Letters of Credit		1,627		1,525

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The

commitments for equity lines of credit may expire without being drawn upon. Therefore, the total commitment amounts do not necessarily represent future cash requirements. The amount of collateral obtained, if it is deemed necessary by the Company, is based on management’s credit evaluation of the customer.

Unfunded commitments under commercial lines of credit, revolving credit lines and overdraft protection agreements are commitments for possible future extensions of credit to existing customers. These lines of credit are uncollateralized and usually do not contain a specified maturity date and may not be drawn upon to the total extent to which the Company is committed.

Standby and performance letters of credit are conditional lending commitments issued by the Company to guarantee the performance of a customer to a third party. Those letters of credit are primarily issued to support public and private borrowing arrangements. Essentially all letters of credit issued have expiration dates within one year. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers.

Other Commitments. As of June 30, 2019, an $18,000 letter of credit issued by FHLB was used to guarantee the Bank’s performance related to public fund deposit balances.

Legal Contingencies. In the ordinary course of business, there are various legal proceedings pending against the Company and the Bank. The aggregate liabilities, if any, arising from such proceedings would not, in the opinion of management, have a material adverse effect on the Company’s consolidated financial position.

36

Part I (Continued)
Item 1 (Continued)  

(11) Fair Value of Financial Instruments and Fair Value Measurements

Generally accepted accounting standards in the U.S. require 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 the Company and the Bank’s financial instruments are detailed hereafter. 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.

Generally accepted accounting principles related to Fair Value Measurements define fair value, establish a framework for measuring fair value, establish a three-level valuation hierarchy for disclosure of fair value measurement and enhance disclosure requirements for fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows:

●    Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

●    Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

●    Level 3 inputs to the valuation methodology are unobservable and represent the Company’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities.

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 and is classified as Level 1.

Investment Securities – Fair values for investment securities are based on quoted market prices where available and classified as Level 1. If quoted market prices are not available, estimated fair values are based on quoted market prices of comparable instruments and classified as Level 2. If a comparable is not available, the investment securities are classified as Level 3.

Federal Home Loan Bank Stock – The fair value of Federal Home Loan Bank stock approximates carrying value and is classified as Level 1.

Loans Held for Sale – The fair value of loans held for sale is determined on outstanding commitments from third party investors in the secondary markets and is classified within Level 2 of the valuation hierarchy.

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. Most loans are classified as Level 2, but impaired loans with a related allowance are classified as Level 3.

Bank-Owned Life Insurance – The carrying value of bank-owned life insurance policies approximates fair value and is classified as Level 1.

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 and is classified as Level 1. 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 and is classified as Level 2.

Subordinated Debentures – The fair value of subordinated debentures is estimated by discounting the future cash flows using the current rates at which similar advances would be obtained. Subordinate Debentures are classified as Level 2.

Other Borrowed Money – The fair value of other borrowed money is calculated by discounting contractual cash flows using an estimated interest rate based on current rates available to the Company for debt of similar remaining maturities and collateral terms. Other borrowed money is classified as Level 2 due to their expected maturities.

37

Part I (Continued)
Item 1 (Continued)

(11) Fair Value of Financial Instruments and Fair Value Measurements (Continued)

Disclosures of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis, are required in the financial statements.

The carrying amount, estimated fair values, and placement in the fair value hierarchy of the Company’s financial instruments as of June 30, 2019 and December 31, 2018 are as follows:

	Fair Value Measurements at
	June 30, 2019
	Carrying		Estimated		Level		Level		Level
	Value		Fair Value		1		2		3
Assets
Cash and Short-Term Investments	$	75,412	$	75,412	$	75,412	$	-	$	-
Investment Securities Available for Sale		409,839		409,839		-		406,405		3,434
Other Investments, at Cost		3,261		3,261		3,261		-		-
Loans Held for Sale		3,813		3,813		-		3,813		-
Loans, Net		927,917		925,547		-		922,868		2,679
Bank-Owned Life Insurance		21,357		21,357		21,357		-		-
Liabilities
Deposits		1,297,723		1,300,200		908,153		392,047		-
Subordinated Debentures		24,229		24,229		-		24,229		-
Other Borrowed Money		55,063		54,865		-		54,865		-

	Fair Value Measurements at
	December 31, 2018
	Carrying		Estimated		Level		Level		Level
	Value		Fair Value		1		2		3
Assets
Cash and Short-Term Investments	$	60,156	$	60,156	$	60,156	$	-	$	-
Investment Securities Available for Sale		353,066		353,066		-		348,788		4,278
Federal Home Loan Bank Stock		2,978		2,978		2,978		-		-
Loans, Net		774,249		769,809		-		766,457		3,352
Bank-Owned Life Insurance		17,598		17,598		17,598		-		-
Liabilities
Deposits		1,085,125		1,086,503		744,094		342,409		-
Subordinated Debentures		24,229		24,229		-		24,229		-
Other Borrowed Money		44,000		44,032		-		44,032		-

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.

38

Part I (Continued)
Item 1 (Continued)

(11) Fair Value of Financial Instruments and Fair Value Measurements (Continued)

Following is a description of the valuation methodologies used for instruments measured at fair value on a recurring and nonrecurring basis, as well as the general classification of such instruments pursuant to the valuation hierarchy:

Assets

Securities – Where quoted prices are available in an active market, securities are classified within level 1 of the valuation hierarchy. Level 1 inputs include securities that have quoted prices in active markets for identical assets. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flow. Examples of such instruments, which would generally be classified within level 2 of the valuation hierarchy, include certain collateralized mortgage and debt obligations and certain high-yield debt securities. In certain cases where there is limited activity or less transparency around inputs to the valuation, securities are classified within level 3 of the valuation hierarchy. When measuring fair value, the valuation techniques available under the market approach, income approach and/or cost approach are used. The Company’s evaluations are based on market data and the Company employs combinations of these approaches for its valuation methods depending on the asset class.

Impaired Loans – Impaired loans are those loans which the Company has measured impairment generally based on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third-party appraisals of the properties, or discounted cash flows based upon the expected proceeds. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements.

Other Real Estate – Other real estate owned assets are adjusted to fair value less estimated selling costs upon transfer of the loans to other real estate owned. Typically, an external, third-party appraisal is performed on the collateral upon transfer into the other real estate owned account to determine the asset’s fair value. Subsequent adjustments to the collateral’s value may be based upon either updated third-party appraisals or management’s knowledge of the collateral and the current real estate market conditions. Appraised amounts used in determining the asset’s fair value, whether internally or externally prepared, are discounted 10 percent to account for selling and marketing costs. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are typically significant and result in a level 3 classification of the inputs for determining fair value. Because of the high degree of judgment required in estimating the fair value of other real estate owned assets and because of the relationship between fair value and general economic conditions, we consider the fair value of other real estate owned assets to be highly sensitive to changes in market conditions.

Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis – The following table presents the recorded amount of the Company’s assets measured at fair value on a recurring and nonrecurring basis as of June 30, 2019 and December 31, 2018, aggregated by the level in the fair value hierarchy within which those measurements fall. The table below includes only impaired loans with a specific reserve and only other real estate properties with a valuation allowance at June 30, 2019 and at December 31, 2018. Those impaired loans and other real estate properties are shown net of the related specific reserves and valuation allowances. 

39

Part I (Continued)
Item 1 (Continued)

(11) Fair Value of Financial Instruments and Fair Value Measurements (Continued) 

			Fair Value Measurements at Reporting Date Using
			Quoted Prices in				Significant
			Active Markets for		Significant Other		Unobservable
	Total Fair		Identical Assets		Observable		Inputs
June 30, 2019	Value		(Level 1)		Inputs (Level 2)		(Level 3)
Recurring Securities Available for Sale
U.S. Government Agencies Mortgage-Backed	$	403,408	$	-	$	400,189	$	3,219
State, County and Municipal		3,574		-		3,359		215
Corporate Bonds		2,857		-		2,857		-
	$	409,839	$	-	$	406,405	$	3,434
Nonrecurring
Impaired Loans	$	2,679	$	-	$	-	$	2,679
Other Real Estate	$	714	$	-	$	-	$	714

			Fair Value Measurements at Reporting Date Using
			Quoted Prices in				Significant
			Active Markets for		Significant Other		Unobservable
	Total Fair		Identical Assets		Observable		Inputs
December 31, 2018	Value		(Level 1)		Inputs (Level 2)		(Level 3)
Recurring Securities Available for Sale
U.S. Government Agencies Mortgage-Backed	$	346,205	$	-	$	342,142	$	4,063
State, County and Municipal		3,989		-		3,775		214
Corporate Bonds		2,872		-		2,872		-
	$	353,066	$	-	$	348,789	$	4,277
Nonrecurring
Impaired Loans	$	3,352	$	-	$	-	$	3,352
Other Real Estate	$	1,183	$	-	$	-	$	1,183

Liabilities

The Company did not identify any liabilities that are required to be presented at fair value.

40

Part I (Continued)
Item 1 (Continued)

(11) Fair Value of Financial Instruments and Fair Value Measurements (Continued)

Fair Value Measurements Using Significant Unobservable Inputs (Level 3)

The following table presents quantitative information about the significant unobservable inputs used in the fair value measurements for assets in level 3 of the fair value hierarchy measured on a nonrecurring basis at June 30, 2019 and December 31, 2018. This table is comprised primarily of collateral dependent impaired loans and other real estate owned:

			Valuation	Unobservable	Range
	June 30, 2019		Techniques	Inputs	Weighted Avg
Real Estate
Residential Real Estate		218	Sales Comparison	Adjustment for Differences	(10.86)%	-	6.70%
				Between the Comparable Sales		(2.08)%
				Management Adjustments for	0.00%	-	25.00%
				Age of Appraisals and/or Current		12.50%
				Market Conditions
Commercial Real Estate		2,134	Income Approach	Capitalization Rate	7.75%	-	10.50%
						9.13%
				Management Adjustments for	0.00%	-	10.00%
				Age of Appraisals and/or Current		5.00%
				Market Conditions
Farmland		327	Sales Comparison	Adjustment for Differences	(71.00)%	-	(3.50)%
				Between the Comparable Sales		(37.25)%
				Management Adjustments for	10.00%	-	80.00%
				Age of Appraisals and/or Current		45.00%
				Market Conditions
Other Real Estate Owned		714	Sales Comparison	Adjustment for Differences	(30.00)%	-	25.02%
				Between the Comparable Sales		(2.49)%
				Management Adjustments for	9.82%	-	99.39%
				Age of Appraisals and/or Current		40.36%
				Market Conditions
			Sales Contract	Adjustment for Estimated Costs	0.00%	-	0.00%
				to Sell		(0.00)%
			Income Approach	Discount Rate		10.00%

41

Part I (Continued)
Item 1 (Continued)

(11) Fair Value of Financial Instruments and Fair Value Measurements (Continued)

			Valuation	Unobservable	Range
	December 31, 2018		Techniques	Inputs	Weighted Avg
Real Estate
Commercial Construction	$	360	Sales Comparison	Adjustment for Differences	(6.00)%	-	1,975.00%
				Between the Comparable Sales		984.20%
				Management Adjustments for	0.00%	-	10.00%
				Age of Appraisals and/or Current		5.00%
				Market Conditions
Residential Real Estate		213	Sales Comparison	Adjustment for Differences	(10.86)%	-	6.70%
				Between the Comparable Sales		(2.08)%
				Management Adjustments for	0.00%	-	25.00%
				Age of Appraisals and/or Current		12.50%
				Market Conditions
Commercial Real Estate		2,415	Sales Comparison	Adjustment for Differences	(60.00)%	-	80.00%
				Between the Comparable Sales		10.00%
				Management Adjustments for	0.00%	-	35.00%
				Age of Appraisals and/or Current		17.50%
				Market Conditions
			Income Approach	Capitalization Rate		10.13%
Farmland		328	Sales Comparison	Adjustment for Differences	(71.00)%	-	(3.50)%
				Between the Comparable Sales		(37.25)%
				Management Adjustments for	10.00%	-	80.00%
				Age of Appraisals and/or Current		45.00%
				Market Conditions
Commercial		36	Sales Contract	Adjustment for Estimated Costs	0.00%	-	0.00%
				to Sell		(0.00)%
				Management Adjustment for	0.00%	-	15.00%
				Age of Appraisals and/or Current		15.00%
				Market Conditions
Other Real Estate Owned		1,183	Sales Comparison	Adjustment for Differences	(30.00)%	-	25.02%
				Between the Comparable Sales		(2.49)%
				Management Adjustment for	9.82%	-	99.39%
				Age of Appraisals and/or Current		35.26%
				Market Conditions
			Income Approach	Capitalization Rate		10.00%

42

Part I (Continued)
Item 1 (Continued)

(11) Fair Value of Financial Instruments and Fair Value Measurements (Continued)

The table below presents a reconciliation and statement of income classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (level 3) for the six months ended June 30, 2019 and the twelve months ended December 31, 2018.

	Available for Sale Securities
	June 30, 2019			December 31, 2018
Balance, Beginning	$	4,277		$	7,298
Transfers out of Level 3		-			(2,009	)
Maturities		-			-
Purchases		-			-
Paydowns		(883	)		(886	)
Unrealized Gains included in Other Comprehensive Income (Loss)		40			(126	)
Balance, Ending	$	3,434		$	4,277

The Company’s policy is to recognize transfers in and transfers out of levels 1, 2 and 3 as of the end of a reporting period. There were no transfers of securities between levels for the six months ended June 30, 2019 and one security totaling $2,009 transferred from level 3 to level 2 for the twelve months ended December 31, 2018.

The following table presents quantitative information about recurring level 3 fair value measurements as of June 30, 2019.

				Unobservable	Range
June 30, 2019	Fair Value		Valuation Techniques	Inputs	(Weighted Avg)
State, County and Municipal	$	215	Discounted Cash Flow	Discount Rate or Yield		N/A*
U. S. Government Agencies Mortgage -Backed		3,219	Fundamental Analysis	Discount Rate or Yield		N/A*

* The Company relies on a third-party pricing service to value its securities. The details of the unobservable inputs and other adjustments used by the third-party pricing service were not readily available to the Company.

(12) Regulatory Capital Matters

The amount of dividends payable to the parent company from the subsidiary bank is limited by various banking regulatory agencies. Upon approval by regulatory authorities, the Bank may pay cash dividends to the parent company in excess of regulatory limitations.   

The Company is subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and, possibly, additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of the Company’s assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Company to maintain minimum amounts and ratios of total and Tier 1 capital to risk-weighted assets, and of Tier 1 capital to average assets.  As of June 30, 2019, the interim final Basel III rules (“Basel III”) require the Company to also maintain minimum amounts and ratios of common equity Tier 1 capital to risk-weighted assets.  These amounts and ratios as defined in regulations are presented hereafter.  Management believes, as of June 30, 2019, the Company meets all capital adequacy requirements to which it is subject under the regulatory framework for prompt corrective action.  In the opinion of management, there are no events or conditions since prior notification of capital adequacy from the regulators that have changed the institution’s category. 

43

Part I (Continued)
Item 1 (Continued)

(12) Regulatory Capital Matters (Continued)

The Basel III rules also require the implementation of a new capital conservation buffer comprised of common equity Tier 1 capital.  The capital conservation buffer was phased in beginning January 1, 2016 at 0.625% of risk-weighted assets and increase each subsequent year by 0.625% until reaching its final level of 2.5% on January 1, 2019.

The following table summarizes regulatory capital information as of June 30, 2019 and December 31, 2018 on a consolidated basis and for the subsidiary, as defined.  Regulatory capital ratios for June 30, 2019 and December 31, 2018 were calculated in accordance with the Basel III rules.

											To Be Well
											Capitalized Under
						For Capital					Prompt Corrective
	Actual					Adequacy Purposes					Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of June 30, 2019
Total Capital to Risk-Weighted Assets
Consolidated	$	136,952		13.37	%	$	81,961		8.00	%		N/A		N/A
Colony Bank		148,554		14.52			81,856		8.00		$	102,320		10.00	%
Tier I Capital to Risk-Weighted Assets
Consolidated		130,163		12.70			61,470		6.00			N/A		N/A
Colony Bank		141,765		13.86			61,392		6.00			81,856		8.00
Common Equity Tier I Capital to Risk-Weighted Assets
Consolidated		106,663		10.41			46,103		4.50			N/A		N/A
Colony Bank		141,765		13.86			46,044		4.50			66,508		6.50
Tier I Capital to Average Assets
Consolidated		130,163		9.34			55,765		4.00			N/A		N/A
Colony Bank		141,765		10.18			55,684		4.00			69,606		5.00

44

Part I (Continued)
Item 1 (Continued)

(12) Regulatory Capital Matters (Continued)

											To Be Well
											Capitalized Under
						For Capital					Prompt Corrective
	Actual					Adequacy Purposes					Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of December 31, 2018
Total Capital to Risk-Weighted Assets
Consolidated	$	133,900		15.86	%	$	67,527		8.00	%		N/A		N/A
Colony Bank		131,723		15.63			67,418		8.00		$	84,272		10.00	%
Tier I Capital to Risk-Weighted Assets
Consolidated		126,623		15.00			50,645		6.00			N/A		N/A
Colony Bank		124,446		14.77			50,563		6.00			67,418		8.00
Common Equity Tier I Capital to Risk-Weighted Assets
Consolidated		103,123		12.22			37,984		4.50			N/A		N/A
Colony Bank		124,446		14.77			37,923		4.50			54,777		6.50
Tier I Capital to Average Assets
Consolidated		126,623		10.24			49,478		4.00			N/A		N/A
Colony Bank		124,446		10.08			49,396		4.00			61,745		5.00

(13) Stock-Based Compensation

In August 2018, the Company granted an award of 5,650 restricted shares of the Company’s common stock to T. Heath Fountain, the Company’s Chief Executive Officer (“CEO”), with a market price of $17.73 per share. The restricted shares vest in equal installments on each of July 30, 2019, July 2020 and July 2021, subject to continued service by Mr. Fountain through each applicable vesting date, or earlier upon the occurrence of a change in control. With the restricted stock, there will be no cash consideration to the Company for the shares. The CEO will have the right to vote all shares subject to such grant and receive all dividends with respect to such shares, whether or not the shares have vested.

Compensation expense for restricted stock is based on the market price of the Company stock at the time of the grant and amortized on a straight-line basis over the vesting period. The balance of unearned compensation related to these restricted shares as of June 30, 2019 is $69,448 which is expected to be recognized over a weighted-average of 2.08 years. Total compensation expense recognized for the restricted shares granted for the six months ended June 30, 2019 was $16,668.

45

Part I (Continued)
Item 1 (Continued)

(14) Earnings Per Share

Basic earnings per share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during each period. Diluted earnings per share reflects the potential dilution of restricted stock and common stock warrants. Net income available to common stockholders represents net income after preferred stock dividends. The following table presents earnings per share for the three month and six month period ended June 30, 2019 and 2018.

	Three Months Ended				Six Months Ended
	June 30				June 30
	2019		2018		2019		2018
Numerator
Net Income Available to Common Stockholders	$	2,101	$	3,069	$	4,936	$	6,257
Denominator
Weighted Average Number of Common Shares Outstanding for Basic Earnings Per Common Share		9,089		8,439		8,765		8,439
Dilutive Effect of Potential Common Stock
Restricted Stock		-		-		-		-
Stock Warrants		-		173		-		196
Weighted-Average Number of Shares Outstanding for Diluted Earnings Per Common Share		9,089		8,612		8,765		8,635
Earnings Per Share - Basic	$	0.23	$	0.36	$	0.56	$	0.74
Earnings Per Share - Diluted	$	0.23	$	0.36	$	0.56	$	0.72

(15) Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income (loss) for unrealized gains and losses securities available for sale for the period ended June 30, 2019 and the year ended December 31, 2018 are as follows:

	June 30, 2019			December 31, 2018
Beginning Balance	$	(8,190	)	$	(6,492	)
Other Comprehensive Income Before Reclassification		8,472			(1,606	)
Amounts Reclassified from Accumulated Other Comprehensive Income		(51	)		(92	)
Net Current Period Other Comprehensive Income		8,421			(1,698	)
Ending Balance	$	231		$	(8,190	)

46

Part I (Continued)
Item 1 (Continued)

(16) Segment Information

The Company’s operating segments include banking and mortgage banking. The reportable segments are determined by the products and services offered, and internal reporting. The Bank segment derives its revenues from the delivery of full-service financial services, including retail and commercial banking services and deposit accounts. The Mortgage Banking segment derives its revenues from the origination and sales of residential mortgage loans held for sale. Segment performance is evaluated using net interest income and noninterest income. Income taxes are allocated based on income before income taxes, and indirect expenses (includes management fees) are allocated based on various internal factors for each segment. Transactions among segments are made at fair value. Information reported internally for performance assessment follows.

Three Months Ended June 30, 2019	Bank		Mortgage Banking			Holding Company			Totals
Net Interest Income	$	12,200	$	19		$	(394	)	$	11,825
Provision for Loan Losses		179		-			-			179
Noninterest Income		3,492		500			8			4,000
Noninterest Expenses		11,636		722			656			13,014
Income Taxes		737		-			(206	)		531
Segment Profit (Loss)	$	3,140	$	(203	)	$	(836	)	$	2,101
Segment Assets at June 30, 2019	$	1,498,212	$	4,539		$	4,221		$	1,506,972

Three Months Ended June 30, 2018	Bank		Mortgage Banking		Holding Company			Totals
Net Interest Income	$	10,411	$	-	$	(246	)	$	10,165
Provision for Loan Losses		44		-		-			44
Noninterest Income		2,317		-		7			2,324
Noninterest Expenses		8,325		-		276			8,601
Income Taxes		877		-		(102	)		775
Segment Profit (Loss)	$	3,482	$	-	$	(413	)	$	3,069
Segment Assets at June 30, 2018	$	1,199,709	$	-	$	4,763		$	1,204,472

Six Months Ended June 30, 2019	Bank		Mortgage Banking			Holding Company			Totals
Net Interest Income	$	22,832	$	19		$	(669	)	$	22,182
Provision for Loan Losses		310		-			-			310
Noninterest Income		5,675		643			16			6,334
Noninterest Expenses		20,242		846			952			22,040
Income Taxes		1,548		5			(323	)		1,230
Segment Profit (Loss)	$	6,407	$	(189	)	$	(1,282	)	$	4,936
Segment Assets at June 30, 2019	$	1,498,212	$	4,539		$	4,221		$	1,506,972

Six Months Ended June 30, 2018	Bank		Mortgage Banking		Holding Company			Totals
Net Interest Income	$	20,753	$	-	$	(459	)	$	20,294
Provision for Loan Losses		70		-		-			70
Noninterest Income		4,744		-		14			4,758
Noninterest Expenses		16,605		-		532			17,137
Income Taxes		1,782		-		(194	)		1,588
Segment Profit (Loss)	$	7,040	$	-	$	(783	)	$	6,257
Segment Assets at June 30, 2018	$	1,199,709	$	-	$	4,763		$	1,204,472

47

Part I (Continued)
Item 1 (Continued)

(17) Subsequent Events

On July 3, 2019, the Company announced the startup of a Small Business Specialty Lending Group which will focus on Small Business Administration lending and other government guaranteed loans. The Company has hired two veteran bankers to lead the group.

On July 18, 2019, the Board of Directors declared a cash dividend of $0.075 per share to shareholders of record on July 31, 2019, payable on August 15, 2019.

Colony Risk Management, Inc. (“the Captive”), a wholly-owned subsidiary of the Company, began operations in July 2019, in the State of Nevada. The Captive is a pure captive insurance company as defined by the Nevada Revised Statutes, Chapter 694C, and is engaged in the business of providing commercial property and various liability insurance to the Company and related entities. The Captive has elected to be taxed under Section 831(b) of the Internal Revenue Code. Pursuant to Section 831(b), if gross premiums do not exceed $2,300,000, then the Captive is taxable solely on its investment income. The Captive will be included in the consolidated federal income tax return of the Company. The Captive has a policy to pay to the Company its federal income tax liability or receive a credit for the tax reduction realized in the event of a loss. The Captive is subject to federal income taxes and state premium taxes to Nevada.

48

Part I Financial Information
Item 2

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward Looking Statement Disclosure

Certain statements contained in this Quarterly Report that are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the Act), notwithstanding that such statements are not specifically identified. In addition, certain statements may be contained in the Company’s future filings with the SEC, in press releases, and in oral and written statements made by or with the approval of the Company that are not statements of historical fact and constitute forward-looking statements within the meaning of the Act. Examples of forward-looking statements include, but are not limited to: (i) projections of revenues, income or loss, earnings or loss per share, the payment or nonpayment of dividends, capital structure and other financial items; (ii) statements of plans and objectives of Colony Bankcorp, Inc. or its management or Board of Directors, including those relating to products or services; (ii) statements of future economic performance; and (iv) statements of assumptions underlying such statements. Words such as “believes,” “anticipates,” “expects,” “intends,” “targeted,” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements.

Forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those in such statements. Factors that could cause actual results to differ from those discussed in the forward-looking statements include, but are not limited to:

● Local and regional economic conditions and the impact they may have on the Company and its customers and the Company’s assessment of that impact.

● Changes in estimates of future reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements.

● The effects of and changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Federal Reserve Board.

● Inflation, interest rate, market and monetary fluctuations.

● Political instability.

● Acts of war, terrorism or cyberterrorism.

● The timely development and acceptance of new products and services and perceived overall value of these products and services by users.

● Changes in consumer spending, borrowings and savings habits.

● Technological changes.

● Acquisitions and integration of acquired businesses.

● The ability to increase market share and control expenses.

● The effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) with which the Company and its subsidiary must comply.

● The effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Financial Accounting Standards Board and other accounting standard setters.

● Changes in the Company’s organization, compensation and benefit plans.

● The costs and effects of litigation and of unexpected or adverse outcomes in such litigation.

● Greater than expected costs or difficulties related to the integration of new lines of business.

● The Company’s success at managing the risks involved in the foregoing items.

49

Part I (Continued)

Item 2 (Continued)

Forward-looking statements speak only as of the date on which such statements are made. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events.

Readers should carefully review all disclosures we file from time to time with the Securities and Exchange Commission (“SEC”).

Future Outlook

Our Company has started the current year focusing on increasing our deposits along with solid loan growth. We are exploring opportunities in new product lines and services, which could help to improve core non-interest income and in market expansion. In addition, we continue to make strategic changes within our organization by realigning our senior management and hiring key personnel which will contribute to our future efforts to expand our footprint.

In May 2019, the Company opened its first full service banking office in Statesboro, Georgia. In October 2018, the Bank purchased a vacant lot of real estate in Albany, Georgia from the branch acquisition transaction with Planters First Bank. The Bank intends to build a new branch office in the future.

On May 1, 2019, the Bank completed its purchase of the mortgage division from Planters First Bank, PFB Mortgage. With the transaction added several originators within the following markets: Albany, Georgia; Athens, Georgia; Macon, Georgia and Warner Robins, Georgia. In addition, the Bank established a new mortgage loan origination office in LaGrange, Georgia in March 2019.

On May 1, 2019, the Company completed its acquisition of LBC Bancshares, Inc. and its subsidiary, Calumet Bank, which has merged within the Company. The acquisition expanded the Company’s market presence, as Calumet Bank had two full-service banking locations, one each in LaGrange, Georgia and Columbus, Georgia, as well as a loan production office in Atlanta, Georgia. The Company issued 1,054,029 common shares at a fair value of $18.7 million and paid $15.3 million in cash to the former shareholders of LBC as merger consideration.

On May 20, 2019, the Company announced the retirement of Terry L. Hester, Executive Vice President and Chief Financial Officer. The Company announced Tracie Youngblood as the new Executive Vice President and Chief Financial Officer. Ms. Youngblood joined the Company on June 24, 2019. In addition, the Company announced the realignment of roles within the senior management team with M. Eddie Hoyle being appointed to Chief Banking Officer, Edward Lee Bagwell being appointed to Chief Risk Officer and General Counsel, J. Stan Cook being appointed to Chief Credit Officer, and the addition of Lance Whitley as Chief People Officer.

In July 2019, the Bank announced the startup of a Small Business Specialty Lending Group and the hiring of two veteran bankers to lead the group. This new unit will expand the Bank’s participation in government guaranteed loans and expand its footprint into new markets, provide the Bank with an opportunity to service new clients and provide additional fee income.

In July 2019, a new subsidiary of the Company was incorporated under the name Colony Risk Management, Inc. Colony Risk Management, Inc. is a subsidiary of the Company and is located in Las Vegas, Nevada. It is a captive insurance subsidiary which insures various liability and property damage policies for the Company and its related subsidiaries. Colony Risk Management is regulated by the State of Nevada Division of Insurance.

We have reinstated dividend payments beginning first quarter 2017 and have continued on a quarterly basis. In 2018, we paid a quarterly dividend of $0.05 per common stock. For the first and second quarter of 2019, we paid a dividend payment of $0.075 per common stock.

Major Trends/Significant Considerations

The following discussion sets forth management’s discussion and analysis of our consolidated financial condition as of June 30, 2019, and the consolidated results of operations for the six months ended June 30, 2019. This discussion should be read in conjunction with the Company’s annual report on Form 10-K filed with the Securities and Exchange Commission on March 15, 2019. Readers should also carefully review all other disclosures we file from time to time with the SEC.

50

Part I (Continued)

Item 2 (Continued)

Non-GAAP Financial Measures

Our accounting and reporting policies conform to generally accepted accounting principles (“GAAP”) in the United States and prevailing practices in the banking industry. However, certain non-GAAP measures are used by management to supplement the evaluation of our performance. These include the fully-taxable equivalent measures: tax-equivalent net interest income, tax-equivalent net interest margin, and tax-equivalent net interest spread, which include the effects of taxable-equivalent adjustments using a federal income tax rate of 21% to increase tax-exempt interest income to a tax-equivalent basis.  Tax-equivalent adjustments are reported in Notes 1 and 2 to the Average Balances with Average Yields and Rates table under Rate/Volume Analysis. Tangible book value per common share is also a non-GAAP measure used in the selected Financial Data Section.

Tax-equivalent net interest income, net interest margin and net interest spread.  Net interest income on a tax-equivalent basis is a non-GAAP measure that adjusts for the tax-favored status of net interest income from loans and investments. We believe this measure to be the preferred industry measurement of net interest income and it enhances comparability of net interest income arising from taxable and tax-exempt sources. The most directly comparable financial measure calculated in accordance with GAAP is our net interest income. Net interest margin on a tax-equivalent basis is net interest income on a tax-equivalent basis divided by average interest-earning assets on a tax-equivalent basis. The most directly comparable financial measure calculated in accordance with GAAP is our net interest margin. Net interest spread on a tax-equivalent basis is the difference in the average yield on average interest-earning assets on a tax equivalent basis and the average rate paid on average interest-bearing liabilities. The most directly comparable financial measure calculated in accordance with GAAP is our net interest spread.

These non-GAAP financial measures should not be considered alternatives to GAAP-basis financial statements, and other bank holding companies may define or calculate these non-GAAP measures or similar measures differently.

A reconciliation of these performance measures to GAAP performance measures is included in the tables below.

Non-GAAP Performance Measures Reconciliation 

	Three months ended June 30,				Six months ended June 30,
	2019		2018		2019		2018
Interest Income Reconciliation
Interest Income – Taxable Equivalent	$	15,155	$	12,127	$	28,220	$	23,953
Tax Equivalent Adjustment		57		18		109		34
Interest Income (GAAP)	$	15,098	$	12,109	$	28,111	$	23,919
Net Interest Income Reconciliation
Net Interest Income – Taxable Equivalent	$	11,882	$	10,183	$	22,291	$	20,328
Tax Equivalent Adjustment		57		18		109		34
Net Interest Income (GAAP)	$	11,825	$	10,165	$	22,182	$	20,294

	Three months ended June 30,						Six months ended June 30,
	2019			2018			2019			2018
Net Interest Margin Reconciliation
Net Interest Margin – Taxable Equivalent		3.57	%		3.57	%		3.52	%		3.56	%
Tax Equivalent Adjustment		0.01	%		0.01	%		0.02	%		0.01	%
Net Interest Margin (GAAP)		3.56	%		3.56	%		3.50	%		3.55	%
Interest Rate Spread Reconciliation
Interest Rate Spread – Taxable Equivalent		3.34	%		3.41	%		3.29	%		3.42	%
Tax Equivalent Adjustment		0.02	%		0.01	%		0.02	%		0.01	%
Interest Rate Spread (GAAP)		3.32	%		3.40	%		3.27	%		3.41	%

The Company

Colony Bankcorp, Inc. is a bank holding company headquartered in Fitzgerald, Georgia that provides, through Colony Bank, its wholly owned subsidiary (collectively referred to as the Company), a broad array of products and services throughout central, south and coastal Georgia markets. The Company offers commercial, consumer and mortgage banking services.

51

Part I (Continued)

Item 2 (Continued)

Application of Critical Accounting Policies and Accounting Estimates

The accounting and reporting policies of the Company are in accordance with accounting principles generally accepted in the United States of America and conform to general practices within the banking industry. The Company’s financial position and results of operations are affected by management’s application of accounting policies, including judgments made to arrive at the carrying value of assets and liabilities and amounts reported for revenues, expenses and related disclosures. Different assumptions in the application of these policies could result in material changes in the Company’s financial position and/or results of operations. Critical accounting policies are those policies that management believes are the most important to the portrayal of the Company’s financial condition and results of operations, and they require management to make estimates that are difficult and subjective.

Overview

The following discussion and analysis presents the more significant factors affecting the Company’s financial condition as of June 30, 2019 and December 31, 2018, and results of operations for each of the three months and six months periods ended June 30, 2019 and 2018. This discussion and analysis should be read in conjunction with the Company’s consolidated financial statements, notes thereto and other financial information appearing elsewhere in this report.

Taxable-equivalent adjustments are the result of increasing income from tax-free loans and investments by an amount equal to the taxes that would be paid if the income were fully taxable based on a 21 percent federal tax rate, thus making tax-exempt yields comparable to taxable asset yields.

Dollar amounts in tables are stated in thousands, except for per share amounts.

Results of Operations 

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 market forces and economic conditions beyond the control of the Company determine interest rates, the ability to generate net interest income is dependent upon the Company’s ability to obtain an adequate spread between the rate earned on interest-earning assets and the rate paid on interest-bearing liabilities. Thus, the key performance for net interest income is the interest margin or net yield, which is taxable-equivalent net interest income divided by average interest-earning assets. Net income available to common shareholders totaled $2.10 million, or $0.23 diluted per common share, in the three months ended June 30, 2019 compared to net income available to common shareholders of $3.07 million, or $0.36 diluted per common share, in the three months ended June 30, 2018. Net income available to common shareholders totaled $4.94 million, or $0.56 diluted per common share, in the six months ended June 30, 2019 compared to net income available to common shareholders of $6.26 million, or $0.72 diluted per common share, in the six months ended June 30, 2018. The Company incurred $1.93 million in acquisition related expenses during the second quarter of 2019 stemming from the two acquisitions of LBC Bancshares, Inc. and PFB Mortgage.

52

Part I (Continued)

Item 2 (Continued)

Selected income statement data, returns on average assets and average common equity and dividends per share for the comparable periods were as follows:

	Three Months Ended June 30												Six Months Ended June 30
							$			%									$			%
	2019			2018			Variance			Variance			2019			2018			Variance			Variance
Taxable-equivalent net interest income	$	11,882		$	10,183		$	1,699			16.68	%	$	22,291		$	20,328		$	1,963			9.66	%
Taxable-equivalent adjustment		57			18			39			216.67	%		109			34			75			220.59	%
Net interest income		11,825			10,165			1,660			16.33	%		22,182			20,294			1,888			9.30	%
Provision for loan losses		179			44			135			306.82	%		310			70			240			342.86	%
Noninterest income		4,000			2,324			1,676			72.12	%		6,334			4,758			1,576			33.12	%
Noninterest expense		13,014			8,601			4,413			51.31	%		22,040			17,137			4,903			28.61	%
Income before income taxes		2,632			3,844			(1,212	)		-31.53	%		6,166			7,845			(1,679	)		-21.40	%
Income taxes		531			775			(244	)		-31.48	%		1,230			1,588			(358	)		-22.54	%
Net income	$	2,101		$	3,069		$	(968	)		-31.54	%	$	4,936		$	6,257		$	(1,321	)		-21.11	%
Net income available to common shareholders:
Basic	$	0.23		$	0.36		$	(0.13	)		-36.11	%	$	0.56		$	0.74		$	(0.18	)		-24.32	%
Diluted	$	0.23		$	0.36		$	(0.13	)		-36.11	%	$	0.56		$	0.72		$	(0.16	)		-22.22	%
Return on average assets		0.60	%		1.03	%		-0.43	%		-41.75	%		0.74	%		1.04	%		-0.30	%		-28.85	%
Return on average total equity		7.43	%		13.82	%		-6.39	%		-46.24	%		9.42	%		14.00	%		-4.58	%		-32.71	%

Details of the changes in the various components of net income are further discussed below.

Net Interest Income

Net interest income is the difference between interest income on earning assets, such as loans and securities, and interest expense on liabilities, such as deposits and borrowings, which are used to fund those assets. Net interest income is the Company’s largest source of revenue, representing 77.79 percent of total revenue for six months ended June 30, 2019 and 81.01 percent for the same period a year ago.

Net interest margin is the taxable-equivalent net interest income as a percentage of average interest-earning assets for the period. The level of interest rates and the volume and mix of interest-earning assets and interest-bearing liabilities impact net interest income and net interest margin.

The Federal Reserve Board influences the general market rates of interest, including the deposit and loan rates offered by many financial institutions. The Company’s loan portfolio is significantly affected by changes in the prime interest rate. The prime interest rate, which is the rate offered on loans to borrowers with strong credit, is currently 5.50 percent. The rate remained unchanged in the first half of 2019 and increased four times in 2018. The federal funds rate moved similarly to the prime rate with interest rates currently at 2.50 percent. We expect no additional rate increases in 2019.

The following table presents the changes in taxable-equivalent net interest income and identifies the changes due to differences in the average volume of interest-earning assets and interest-bearing liabilities and the changes due to changes in the average interest rate on those assets and liabilities. The changes in net interest income due to changes in both average volume and average interest rate have been allocated to the average volume change or the average interest rate change in proportion to the absolute amounts of the change in each. The Company’s consolidated average balance sheets along with an analysis of taxable-equivalent net interest earnings are presented in the Quantitative and Qualitative Disclosures About Market Risk included elsewhere in this report.

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Part I (Continued)

Item 2 (Continued)

Rate/Volume Analysis

The rate/volume analysis presented hereafter illustrates the change from June 30, 2018 to June 30, 2019 for each component of the taxable equivalent net interest income separated into the amount generated through volume changes and the amount generated by changes in the yields/rates.

	Changes from June 30, 2018 to June 30, 2019
($ in thousands)	Volume			Rate		Total
Interest Income
Loans, Net-taxable	$	1,623		$	1,421	$	3,044
Loans Held for Sale		-			19		19
Investment Securities
Taxable		264			458		722
Tax-exempt		-			7		7
Total Investment Securities		264			465		729
Interest-Bearing Deposits in other Banks		235			184		419
Federal Funds Sold		-			41		41
Other Interest - Earning Assets		(5	)		20		15
Total Interest Income		2,117			2,150		4,267
Interest Expense
Interest-Bearing Demand and Savings Deposits		138			625		763
Time Deposits		114			1,276		1,390
Subordinated Debentures		-			86		86
Other Borrowed Money		(18	)		84		66
Federal Funds Purchased		(1	)		-		(1	)
Total Interest Expense		233			2,071		2,304
Net Interest Income	$	1,884		$	79	$	1,963

(1) Changes in net interest income for the periods, based on either changes in average balances or changes in average rates for interest-earning assets and interest-bearing liabilities, are shown on this table. During each year, there are numerous and simultaneous balance and rate changes; therefore, it is not possible to precisely allocate the changes between balances and rates. For the purpose of this table, changes that are not exclusively due to balance changes or rate changes have been attributed to rates.

The Company maintains about 25.37 percent of its loan portfolio in adjustable rate loans that reprice with prime rate changes, while the bulk of its other loans mature within 3 years. The liabilities to fund assets are primarily in short term certificate of deposits that mature within one year. The net interest margin decreased to 3.52 percent for the six months ended June 30, 2019 compared to 3.56 percent for the same period a year ago. We anticipate the net interest margin to be impacted from the competitive environment.

Taxable-equivalent net interest income for the six months ended June 30, 2019 increased by $1.96 million, or 9.66 percent compared to the same period a year ago. The average volume of earning assets during six months ended June 30, 2019 increased $124.94 million compared to the same period a year ago. Growth in average earning assets during 2019 was primarily in loans, investments and interest-bearing deposits in other Banks. These increases mostly stem from the acquisition of LBC Bancshares, Inc. during the second quarter of 2019.

The average volume of loans increased $62.60 million for the six months ended June 30, 2019 compared to the same period a year ago. The average yield on loans increased 35 basis points for the six months ended June 30, 2019 compared to the same period a year ago. The average volume of investment securities increased $24.04 million for the six months ended June 30, 2019 compared to the same year ago period, while the average yield on investment securities increased 25 basis points for the same period comparison. The average volume of deposits increased $121.46 million for the six months ended June 30, 2019 compared to the same period a year ago, with interest-bearing deposits increasing $88.13 million for the six months ended June 30, 2019.

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Part I (Continued)

Item 2 (Continued)

Accordingly, the ratio of average interest-bearing deposits to total average deposits was 82.35 percent for the six months ended June 30, 2019 compared to 83.50 percent in the same period a year ago. This deposit mix, combined with a general increase in market rates, had the effect of increasing the average cost of total deposits by 32 basis points in six months ended June 30, 2019 compared to the same period a year ago.

The Company’s net interest spread, which represents the difference between the average rate earned on interest-earning assets and the average rate paid on interest-bearing liabilities, was 3.29 percent in six months ended June 30, 2019 compared to 3.42 percent in the same period a year ago. The net interest spread, as well as the net interest margin, will be impacted by future changes in short-term and long-term interest rate levels, as well as the impact from the competitive environment.

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Part I (Continued)

Item 2 (Continued)

AVERAGE BALANCE SHEETS	Six Months Ended								Six Months Ended
	June 30, 2019								June 30, 2018
	Average			Income/		Yields/			Average			Income/		Yields/
($ in thousands)	Balances			Expense		Rates			Balances			Expense		Rates
Assets
Interest-Earning Assets
Loans, Net of Unearned Interest and fees
Taxable (1)	$	827,153		$	22,864		5.53	%	$	764,551		$	19,820		5.18	%
Loans Held for Sale		1,081			19		3.52	%		-			-		0.00	%
Investment Securities
Taxable		376,161			4,596		2.44	%		352,124			3,874		2.20	%
Tax-Exempt (2)		2,103			37		3.52	%		2,103			30		2.85	%
Total Investment Securities		378,264			4,633		2.45	%		354,227			3,904		2.20	%
Interest-Bearing Deposits		55,549			563		2.03	%		21,080			144		1.37	%
Federal Funds Sold		2,938			41		2.79	%		-			-		-	%
Interest-Bearing Other Assets		2,942			100		6.80	%		3,125			85		5.44	%
Total Interest-Earning Assets	$	1,267,927		$	28,220		4.45	%	$	1,142,983		$	23,953		4.19	%
Non-interest-Earning Assets
Cash and Cash Equivalents		14,462								14,787
Allowance for Loan Losses		(6,970	)							(7,461	)
Other Assets		59,396								48,760
Total Noninterest-Earning Assets		66,888								56,086
Total Assets	$	1,334,815							$	1,199,069
Liabilities and Stockholders' Equity
Interest-Bearing Liabilities
Interest-Bearing Deposits
Interest-Bearing Demand and Savings	$	596,212		$	1,974		0.66	%	$	535,112		$	1,211		0.45	%
Other Time		355,731			2,780		1.56	%		328,703			1,390		0.85	%
Total Interest-Bearing Deposits		951,943			4,754		1.00	%		863,815			2,601		0.60	%
Other Interest-Bearing Liabilities
Other Borrowed Money		46,217			634		2.74	%		47,708			568		2.38	%
Subordinated Debentures		24,229			541		4.47	%		24,229			455		3.76	%
Federal Funds Purchased		1			-		0.00	%		60			1		3.33	%
Total Other Interest-Bearing Liabilities		70,447			1,175		3.34	%		71,997			1,024		2.84	%
Total Interest-Bearing Liabilities	$	1,022,390		$	5,929		1.16	%	$	935,812		$	3,625		0.77	%
Noninterest-Bearing Liabilities and
Stockholders' Equity
Demand Deposits		204,012								170,685
Other Liabilities		3,571								3,165
Stockholders' Equity		104,842								89,407
Total Noninterest-Bearing Liabilities and Stockholders' Equity		312,425								263,257
Total Liabilities and Stockholders' Equity	$	1,334,815							$	1,199,069
Interest Rate Spread							3.29	%							3.42	%
Net Interest Income				$	22,291							$	20,328
Net Interest Margin							3.52	%							3.56	%

(1) The average balance of loans includes the average balance of nonaccrual loans. Income on such loans is recognized and recorded on the cash basis. Taxable equivalent adjustments totaling $100 and $27 for six month periods ended June 30, 2019 and 2018, respectively, are included in tax-exempt interest on loans.

(2) Taxable-equivalent adjustments totaling $9 and $7 for three month periods ended June 30, 2019 and 2018, respectively, are included in tax-exempt interest on investment securities. The adjustments are based on a federal tax rate of 21 percent with appropriate reductions for the effect of disallowed interest expense incurred in carrying tax-exempt obligations.

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Part I (Continued)

Item 2 (Continued)

Provision for Loan Losses

The provision for loan losses is determined by management as the amount to be added to the allowance for loan losses after net charge-offs have been deducted to bring the allowance to a level which, in management’s best estimate, is necessary to absorb probable losses within the existing loan portfolio. The provision for loan losses totaled $310 thousand in the six months ended June 30, 2019 compared to $70 thousand in the same period a year ago. See the section captioned “Allowance for Loan Losses” elsewhere in this discussion for further analysis of the provision for loan losses.

Noninterest Income

The components of noninterest income were as follows:

	Three Months Ended June 30										Six Months Ended June 30
					$			%							$			%
	2019		2018		Variance			Variance			2019		2018		Variance			Variance
Service Charges on Deposit Accounts	$	1,070	$	1,031	$	39			3.78	%	$	2,034	$	2,132	$	(98	)		-4.60	%
Other Charges, Commissions and Fees		1,110		822		288			35.04	%		2,010		1,611		399			24.77	%
Mortgage Fee Income		544		182		362			198.90	%		687		331		356			107.55	%
Securities Gains		65		116		(51	)		-43.97	%		65		116		(51	)		-43.97	%
Other		1,211		173		1,038			600.00	%		1,538		568		970			170.77	%
Total	$	4,000	$	2,324	$	1,676			72.12	%	$	6,334	$	4,758	$	1,576			33.12	%

Service Charges on Deposit Accounts. The decrease is primarily attributed to overdraft fees which decreased $84 thousand for the six months ended June 30, 2019 compared to the same period in 2018.

Other Charges, Commissions and Fees. Debit card interchange fees and foreign fees increased $404 thousand for the six months ended June 30, 2019 compared to the same period in 2018.

Mortgage Fee Income. The increase is primarily attributed to the acquisition of the PFB Mortgage division in May 2019. In addition, the Bank opened a new mortgage location in LaGrange in March 2019.

Other. The increase is primarily attributed to the gain on sale of other real estate owned. During the second quarter of 2019, the Bank realized approximately $1.00 million gain from the sale of several other real estate owned properties within one relationship.

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Part I (Continued)

Item 2 (Continued)

Noninterest Expense

The components of noninterest expense were as follows:

	Three Months Ended June 30									Six Months Ended June 30
					$		%							$		%
	2019		2018		Variance		Variance			2019		2018		Variance		Variance
Salaries and Employee Benefits	$	6,292	$	5,002	$	1,290		25.79	%	$	11,663	$	9,922	$	1,741		17.55	%
Occupancy and Equipment		1,144		979		165		16.85	%		2,169		2,025		144		7.11	%
Acquisition Related Expenses		1,928		-		1,928		100.00	%		1,961		-		1,961		100.00	%
Deposit Intangible Expenses		148		9		139		1544.44	%		176		18		158		877.78	%
Other		3,502		2,611		891		34.12	%		6,071		5,172		899		17.38	%
Total	$	13,014	$	8,601	$	4,413		51.31	%	$	22,040	$	17,137	$	4,903		28.61	%

Salaries and Employee Benefits. The increase in 2019 is primarily attributable to merit pay increases and increase in headcount mostly from the two acquisitions completed in May 2019 of LBC Bancshares, Inc and PFB Mortgage. In addition, the Company has hired several key employees during the second quarter of 2019 as part of the strategic changes that are being made to enhance its profitability in the future.

Occupancy and Equipment. The increase in 2019 is primarily attributable to the new locations stemming from the acquisitions of LBC Bancshares, Inc. and PFB Mortgage.

Acquisition Related Expenses. The increase in 2019, especially in the second quarter of 2019, is attributed to mostly to the acquisition of LBC Bancshares, Inc. The largest expense the Company has incurred from the acquisition relates to the contract buyout of Calumet’s data processing system which was approximately $1.08 million. Other expenses incurred relating to the acquisition are legal expenses and broker expenses.

Deposit Intangible Expenses. The Bank has had an increase in core deposit intangible from the PFB Albany branch acquisition in October 2018 and from the Calumet Bank acquisition in May 2019. The deposit intangible expense has increase to account for the amortization of the core deposit intangibles that is being amortized over the average remaining life of each acquired customers’ deposits.

Other. The increase in the first half of 2019 as compared to comparable periods is primarily attributable to software and data processing costs which increased by $221 thousand from $671 thousand in 2018 compared to $892 thousand in 2019. ATM expense increased by $166 thousand for the first half of 2019 compared to comparable periods in 2018. Legal and professional fees increased for the first half of 2019 by $93 thousand compared to comparable periods in 2018. Marketing expenses increased for the first half of 2019 by $55 thousand compared to comparable periods in 2018 due to the Bank increasing its efforts in obtaining new deposits.

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Part I (Continued)

Item 2 (Continued)

Investment Portfolio

The following table presents carrying values of investment securities held by the Company for the periods indicated.

	June 30,		December 31,
	2019		2018
Mortgage-Backed Securities	$	403,408	$	346,205
State, County & Municipal		3,574		3,989
Corporate Bonds		2,857		2,872
Total Investment Securities	$	409,839	$	353,066

The following table represents expected maturities and weighted-average yields of investment securities held by the Company as of June 30, 2019. (Mortgage-backed securities are based on the average life at the projected speed, while State and Political Subdivisions reflect anticipated calls being exercised.)

						After 1 Year But					After 5 Years But
	Within 1 Year					Within 5 Years					Within 10 Years					After 10 Years
	Amount		Yield			Amount		Yield			Amount		Yield			Amount		Yield
Mortgage-Backed Securities	$	27,480		2.99	%	$	243,918		2.30	%	$	110,889		2.72	%	$	21,121		2.75	%
State, County & Municipal		1,170		2.80			2,130		2.53			-		-			274		4.03
Corporate Bonds		-		-			2,857		3.76			-		-			-		-
Total Investment Portfolio	$	28,650		2.99	%	$	248,905		2.31	%	$	110,889		2.72	%	$	21,395		2.77	%

Securities are classified as held to maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Securities are classified as available for sale when they might be sold before maturity. Securities available for sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income. The Company has 100 percent of its portfolio classified as available for sale.

At June 30, 2019, there were no holdings of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10 percent of the Company’s stockholders’ equity.

The average yield of the securities portfolio was 2.45 percent for the six months ended June 30, 2019 compared to 2.20 percent for the same period in 2018. The increase in the average yield from 2018 to 2019 was primarily attributed to the purchase of new securities which have a higher yield.

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Part I (Continued)

Item 2 (Continued)

Loans

The following table presents the composition of the Company’s legacy loan portfolio, excluding purchased loans, as of June 30, 2019 and December 31, 2018:

	June 30, 2019			December 31, 2018			$ Variance			% Variance
Commercial and Agricultural
Commercial	$	43,561		$	50,181		$	(6,620	)		-13.19	%
Agricultural		18,561			15,993			2,568			16.06	%
Real Estate
Commercial Construction		60,949			46,609			14,340			30.77	%
Residential Construction		13,193			12,242			951			7.77	%
Commercial		376,063			366,792			9,271			2.53	%
Residential		177,183			185,699			(8,516	)		-4.59	%
Farmland		70,413			62,674			7,739			12.35	%
Consumer and Other
Consumer		17,860			18,423			(563	)		-3.06	%
Other		18,262			5,027			13,235			263.28	%
Gross Loans		796,045			763,640			32,405			4.24	%
Unearned Interest and Fees		(565	)		(501	)		(64	)		12.77	%
Allowance for Loan Losses		(6,789	)		(7,277	)		488			-6.71	%
Net Loans	$	788,691		$	755,862		$	32,829			4.34	%

The following table presents the composition of the Company’s purchased loan portfolio as of June 30, 2019 and December 31, 2018:

	June 30, 2019		December 31, 2018		$ Variance			% Variance
Commercial and Agricultural
Commercial	$	24,974	$	7,229	$	17,745			245.47	%
Agricultural		300		806		(506	)		-62.78	%
Real Estate
Commercial Construction		12,029		1,240		10,789			870.08	%
Residential Construction		5,429		258		5,171			2004.26	%
Commercial		57,753		6,742		51,011			756.62	%
Residential		28,005		2,015		25,990			1289.83	%
Farmland		3,859		35		3,824			10925.71	%
Consumer and Other
Consumer		5,206		62		5,144			8296.77	%
Other		1,671		-		1,671			100.00	%
Gross Loans		139,226		18,387		120,839			657.20	%
Unearned Interest and Fees		-		-		-			0.00	%
Allowance for Loan Losses		-		-		-			0.00	%
Net Loans	$	139,226	$	18,387	$	120,839			657.20	%

Loan Origination/Risk Management. In accordance with the Company’s decentralized banking model, loan decisions are made at the Bank level. The Company utilizes both an Executive Loan Committee and a Director Loan Committee to assist lenders with the decision making and underwriting process of larger loan requests. Due to the diverse economic markets served by the Company, evaluation and underwriting criteria may vary slightly by market. Overall, loans are extended after a review of the borrower’s repayment ability, collateral adequacy, and overall credit worthiness.

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Part I (Continued)

Item 2 (Continued)

Commercial purpose, commercial real estate, and agricultural loans are underwritten similarly to how other loans are underwritten throughout the Company. The properties securing the Company’s commercial real estate portfolio are diverse in terms of type and geographic location. In addition, the Company restricts total loans to $10 million per borrower, subject to exception and approval by the Director Loan Committee. This diversity helps reduce the company’s exposure to adverse economic events that affect any single market or industry. Management monitors and evaluates commercial real estate loans monthly based on collateral, geography, and risk grade criteria. The Company also utilizes information provided by third-party agencies to provide additional insight and guidance about economic conditions and trends affecting the markets it serves.

The Company extends loans to builders and developers that are secured by non-owner occupied properties. In such cases, the Company reviews the overall economic conditions and trends for each market to determine the desirability of loans to be extended for residential construction and development. Sources of repayment for these types of loans may be pre-committed permanent loans from approved long-term lenders, sales of developed property or an interim mini-perm loan commitment from the Company until permanent financing is obtained. In some cases, loans are extended for residential loan construction for speculative purposes and are based on the perceived present and future demand for housing in a particular market served by the Company. These loans are monitored by on-site inspections and are considered to have higher risks than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, general economic conditions and trends, the demand for the properties, and the availability of long-term financing.

The Company originates consumer loans at the Bank level. Due to the diverse economic markets served by the Company, underwriting criteria may vary slightly by market. The Company is committed to serving the borrowing needs of all markets served and, in some cases, adjusts certain evaluation methods to meet the overall credit demographics of each market. Consumer loans represent relatively small loan amounts that are spread across many individual borrowers to help minimize risk. Additionally, consumer trends and outlook reports are reviewed by management on a regular basis.

The Company utilizes an independent third party company for loan review and validation of the credit risk program on an ongoing quarterly basis. Results of these reviews are presented to management and the audit committee. The loan review process complements and reinforces the risk identification and assessment decisions made by lenders and credit personnel, as well as the Company’s policies and procedures.

Commercial and Agricultural. Commercial and agricultural legacy loans at June 30, 2019 decreased 6.12 percent to $62.12 million from December 31, 2018 at $66.17 million. The Company’s commercial and agricultural loans are a diverse group of loans to small, medium and large businesses. The purpose of these loans varies from supporting seasonal working capital needs to term financing of equipment. While some short-term loans may be made on an unsecured basis, most are secured by the assets being financed with collateral margins that are consistent with the Company’s loan policy guidelines.

Real Estate.  Commercial and residential construction legacy loans increased by $15.29 million, or 25.98 percent, at June 30, 2019 to $74.14 million from $58.85 million at December 31, 2018.  This increase is partially due to new commercial construction loans being financed during the year that have not been completed by the end of the quarter. Commercial real estate legacy loans increased $9.27 million, or 2.53 percent, at June 30, 2019 to $376.06 million from $366.79 million at December 31, 2018.

Other.  Other legacy loans at June 30, 2019 increased 263.28 percent to $18.26 million from $5.03 million at December 31, 2018. Other loans consist primarily of loans to local governmental authorities. The increase is attributed to the Company financing approximately $11.50 million to one local governmental authority.

Collateral Concentrations. Concentrations of credit risk can exist in relation to individual borrowers or groups of borrowers, certain types of collateral, certain types of industries, or certain geographic regions. The Company has a concentration in real estate loans as well as a geographic concentration that could pose an adverse credit risk. At June 30, 2019, approximately 86 percent of the Company’s loan portfolio was concentrated in loans secured by real estate. A substantial portion of borrowers’ ability to honor their contractual obligations is dependent upon the viability of the real estate economic sector. Management continues to monitor these concentrations and has considered these concentrations in its allowance for loan loss analysis.    

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Part I (Continued)

Item 2 (Continued)

Maturities and Sensitivities of Loans to Changes in Interest Rates. The following table presents the maturity distribution of the Company’s loans at June 30, 2019. The table also presents the portion of loans that have fixed interest rates or variable interest rates that fluctuate over the life of the loans in accordance with changes in an interest rate index such as the prime rate.

			Less than		One to		Three to		More than
	Total		One Year		Three Years		Five Years		Five Years
Loans with fixed interest rates	$	697,958	$	202,002	$	295,407	$	128,129	$	72,420
Loans with floating interest rates		237,313		129,844		59,844		34,095		13,530
Total	$	935,271	$	331,846	$	355,251	$	162,224	$	85,950

The Company may renew loans at maturity when requested by a customer whose financial strength appears to support such renewal or when such renewal appears to be in the Company’s best interest. In such instances, the Company generally requires payment of accrued interest and may adjust the rate of interest, require a principal reduction or modify other terms of the loan at the time of renewal.

Nonperforming Assets and Potential Problem Loans

Nonperforming assets and accruing past due loans, including purchased credit impaired loans, as of June 30, 2019, December 31, 2018 and June 30, 2018 were as follows:

	June 30, 2019			December 31, 2018			June 30, 2018
Loans Accounted for on Nonaccrual	$	9,751		$	9,482		$	5,632
Loans Accruing Past Due 90 Days or More		2			-			-
Other Real Estate Foreclosed		987			1,841			3,595
Total Nonperforming Assets	$	10,740		$	11,323		$	9,227
Nonperforming Assets by Segment
Construction and Land Development	$	479		$	883		$	2,043
1-4 Family Residential		2,931			3,299			2,691
Nonfarm Residential		2,696			3,821			2,657
Farmland		2,708			2,053			978
Commercial and Consumer		1,926			1,267			858
Total Nonperforming Assets	$	10,740		$	11,323		$	9,227
Nonperforming Assets as a Percentage of:
Total Loans and Foreclosed Assets		1.15	%		1.44	%		1.20	%
Total Assets		0.71	%		0.90	%		0.77	%
Nonperforming Loans as a Percentage of:
Total Loans		1.04	%		1.21	%		0.73	%
Supplemental Data:
Trouble Debt Restructured Loans In Compliance with Modified Terms	$	13,583		$	14,128		$	16,157
Trouble Debt Restructured Loans Past Due 30-89 Days		859			864			-
Accruing Past Due Loans:
30-89 Days Past Due	$	3,989		$	8,234		$	4,670
90 or More Days Past Due		2			-			-
Total Accruing Past Due Loans	$	3,991		$	8,234		$	4,670
Allowance for Loan Losses	$	6,789		$	7,277		$	7,159
ALLL as a Percentage of:
Total Loans		0.73	%		0.93	%		0.93	%
Nonperforming Loans		69.61	%		76.74	%		127.11	%

Nonperforming assets include nonaccrual loans, loans past due 90 days or more and foreclosed real estate. Nonperforming assets at June 30, 2019 decreased 5.15 percent from December 31, 2018.

62

Part I (Continued)

Item 2 (Continued)

Generally, loans are placed on non-accrual status if principal or interest payments become 90 days past due and/or management deems the collectability of the principal and/or interest to be in question, as well as when required by regulatory requirements. Loans to a customer whose financial condition has deteriorated are considered for non-accrual status whether or not the loan is 90 days or more past due. For consumer loans, collectability and loss are generally determined before the loan reaches 90 days past due. Accordingly, losses on consumer loans are recorded at the time they are determined. Consumer loans that are 90 days or more past due are generally either in liquidation/payment status or bankruptcy awaiting confirmation of a plan. Once interest accruals are discontinued, accrued but uncollected interest is charged to current year operations. Subsequent receipts on nonaccrual loans are recorded as a reduction of principal, and interest income is recorded only after principal recovery is reasonably assured. Classification of a loan as nonaccrual does not preclude the ultimate collection of loan principal or interest.

Troubled debt restructured loans are loans on which, due to deterioration in the borrower’s financial condition, the original terms have been modified in favor of the borrower or either principal or interest has been forgiven.

Foreclosed assets represent property acquired as the result of borrower defaults on loans. Foreclosed assets are recorded at estimated fair value less estimated selling costs, at the time of foreclosure. Write-downs occurring at foreclosure are charged against the allowance for loan losses. On an ongoing basis, properties are appraised as required by market indications and applicable regulations. Write-downs are provided for subsequent declines in value and are included in other non-interest expense along with other expenses related to maintaining the properties.

Allowance for Loan Losses

The allowance for loan losses is a reserve established through a provision for loan losses charged to expense, which represents management’s best estimate of probable losses that have been incurred within the existing portfolio of loans. The allowance, in the judgment of management, is necessary to reserve for estimated loan losses and risks inherent in the loan portfolio. The allowance for loan losses includes allowance allocations calculated in accordance with current U.S. accounting standards. The level of the allowance reflects management’s continuing evaluation of industry concentrations, specific credit risks, loan loss experience, current loan portfolio quality, present economic, political and regulatory conditions and unidentified losses inherent in the current loan portfolio. Portions of the allowance may be allocated for specific credits; however, the entire allowance is available for any credit that, in management’s judgment, should be charged off. While management utilizes its best judgment and information available, the ultimate adequacy of the allowance is dependent upon a variety of factors beyond the Company’s control, including the performance of the Company’s loan portfolio, the economy, changes in interest rates and the view of the regulatory authorities toward loan classifications.

The Company’s allowance for loan losses consists of specific valuation allowances established for probable losses on specific loans and historical valuation allowances for other loans with similar risk characteristics. The allowances established for probable losses on specific loans are the result of management’s quarterly review of substandard loans with an outstanding balance of $250,000 or more. This review process usually involves regional credit officers along with local lending officers reviewing the loans for impairment. Specific valuation allowances are determined after considering the borrower’s financial condition, collateral deficiencies, and economic conditions affecting the borrower’s industry, among other things. In the case of collateral dependent loans, collateral shortfall is most often based upon local market real estate value estimates. This review process is performed at the subsidiary bank level and is reviewed at the parent Company level.

Once the loan becomes impaired, it is removed from the pool of loans covered by the general reserve and reviewed individually for exposure as described above. In cases where the individual review reveals no exposure, no reserve is recorded for that loan, either through an individual reserve or through a general reserve. If, however, the individual review of the loan does indicate some exposure, management often charges off this exposure, rather than recording a specific reserve. In these instances, a loan which becomes nonperforming could actually reduce the allowance for loan losses. Those loans deemed uncollectible are transferred to our problem loan department for workout, foreclosure and/or liquidation. The problem loan department obtains a current appraisal on the property in order to record the fair market value (less selling expenses) when the property is foreclosed on and moved into other real estate.

The allowances established for the remainder of the loan portfolio are based on historical loss factors, adjusted for certain qualitative factors, which are applied to groups of loans with similar risk characteristics. Loans are segregated into fifteen separate groups based on call codes. Most of the Company’s charge-offs during the past two years have been real estate dependent loans. The historical loss ratios applied to these groups of loans are updated quarterly based on actual charge-off experience. The historical loss ratios are further adjusted by qualitative factors.

63

Part I (Continued)

Item 2 (Continued)

Management evaluates the adequacy of the allowance for each of these components on a quarterly basis. Peer comparisons, industry comparisons, and regulatory guidelines are also used in the determination of the general valuation allowance. Loans identified as losses by management, internal loan review, and/or bank examiners are charged off. Additional information about the Company’s allowance for loan losses is provided in the Notes to the Consolidated Financial Statements for Allowance for Loan Losses.

The following table sets forth the breakdown of the allowance for loan losses by loan category for the periods indicated. The allocation of the allowance to each category is subjective and is not necessarily indicative of future losses and does not restrict the use of the allowance to absorb losses in any other category.

	June 30,				December 31,
	2019				2018
	Reserve		%*		Reserve		%*
Commercial and Agricultural
Commercial	$	383	7	%	$	370	7	%
Agricultural		1,038	2	%		248	2	%
Real Estate
Commercial Construction		10	8	%		115	6	%
Residential Construction		2	2	%		16	2	%
Commercial		3,741	46	%		4,549	48	%
Residential		845	22	%		1,181	24	%
Farmland		689	8	%		702	8	%
Consumer and Other
Consumer		63	3	%		86	2	%
Other		18	2	%		10	1	%
	$	6,789	100	%	$	7,277	100	%

* Percentage represents the loan balance in each category expressed as a percentage of total end of period loans.

64

Part I (Continued)

Item 2 (Continued)

The following table presents an analysis of the Company’s loan loss experience for the periods indicated.

	Six Months Ended June 30,
	2019			2018
Allowance for Loan Losses at Beginning of Year	$	7,277		$	7,508
Charge-Offs
Commercial		125			116
Agricultural		-			123
Commercial Construction		29			-
Residential Construction		-			-
Commercial		56			258
Residential		647			89
Farmland		63			-
Consumer		179			135
Other		-			-
	$	1,099		$	721
Recoveries
Commercial		16			85
Agricultural		1			7
Commercial Construction		54			38
Residential Construction		-			-
Commercial		38			37
Residential		159			75
Farmland		3			9
Consumer		27			49
Other		3			2
		301			302
Net Charge-Offs		798			419
Provision for Loans Losses		310			70
Allowance for Loan Losses at End of Period	$	6,789		$	7,159
Ratio of Annualized Net Charge-Offs to Average Loans		0.19	%		0.11	%

65

Part I (Continued)

Item 2 (Continued)

Deposits

The following table presents the average amount outstanding and the average rate paid on deposits by the Company for the six month periods ended June 30, 2019 and June 30, 2018.

	June 30, 2019					June 30, 2018
	Average		Average			Average		Average
	Amount		Rate (1)			Amount		Rate (1)
Noninterest-Bearing Demand
Deposits	$	204,012				$	170,685
Interest-Bearing Demand and
Savings Deposits		596,212		0.66	%		535,112		0.45	%
Time Deposits		355,731		1.56	%		328,703		0.85	%
Total Deposits	$	1,155,955		0.82	%	$	1,034,500		0.50	%

(1) Average rate is an annualized rate.

Average deposits increased $121.46 million to $1.16 billion at June 30, 2019 from $1.03 billion at June 30, 2018. The increase included an increase of $33.33 million, or 19.53 percent in noninterest-bearing demand deposits while, at the same time, interest-bearing demand and savings deposits increased $61.10 million, or 11.42 percent and time deposits increased $27.03 million, or 8.22 percent primarily as a result of recent acquisitions. Accordingly the ratio of average noninterest-bearing deposits to total average deposits was 17.64 percent for six months ended June 30, 2019 compared to 16.50 percent for six months ended June 30, 2018. The average cost of total deposits increased 32 basis points when comparing the six months ended June 30, 2019 compared to the same period a year ago.

Off-Balance-Sheet Arrangements, Commitments, Guarantees

In the ordinary course of business, the Company enters into off-balance sheet financial instruments which are not reflected in the consolidated financial statements. These instruments include commitments to extend credit, standby letters of credit, performance letters of credit, guarantees and liability for assets held in trust. Such financial instruments are recorded in the financial statements when funds are disbursed or the instruments become payable and the contract or notional amounts of these instruments reflect the extent of involvement and exposure to credit loss that we have in these particular classes of financial instruments.

Commitments to extend credit are agreements to lend to a customer provided that the terms established in the contract are met. Commitments generally have fixed expiration dates and may require the payment of fees. Since some commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. These guarantees are primarily issued to support public and private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan commitments to customers and similarly do not necessarily represent future cash obligations.

As of June 30, 2019 and December 31, 2018, financial instruments with off-balance sheet risk were as follows:

	Contract Amount
	June 30, 2019		December 31, 2018
Loan Commitments	$	146,481	$	98,736
Letters of Credit		1,627		1,525

The Company uses the same credit policies for these off-balance sheet financial instruments as they do for instruments that are recorded in the consolidated financial statements. We evaluate each customer’s creditworthiness at a local bank level on a case-by-case basis. The amount of collateral obtained, if deemed necessary, upon extension of credit, is based on management’s credit evaluation of the borrower. Collateral held varies but may include cash or cash equivalents, negotiable instruments, real estate, accounts receivable, inventory, oil, gas and mineral interests, property, plant, and equipment.

66

Part I (Continued)

Item 2 (Continued)

Loan Commitments. The Company enters into contractual commitments to extend credit, normally with fixed expiration dates or termination clauses, at specified rates and for specific purposes. Substantially all of the Company’s commitments to extend credit are contingent upon customers maintaining specific credit standards at the time of loan funding. The Company minimizes its exposure to loss under these commitments by subjecting them to credit approval and monitoring procedures. Management assesses the credit risk associated with certain commitments to extend credit in determining the level of the allowance for loan losses.

Other Commitments. As of June 30, 2019, an $18.00 million letter of credit issued by FHLB was used to guarantee the Bank’s performance related to public fund deposit balances.

Capital and Liquidity

At June 30, 2019, stockholders’ equity totaled $126.51 million compared to $95.69 million at December 31, 2018. As part of the acquisition with LBC Bancshares, Inc., the Company issued 1,054,029 common shares at a fair value of $18.71 million. In addition to net income of $4.94 million, other significant changes in stockholders’ equity during six months ended June 30, 2019 included $1.27 million of dividends declared on common stock. The accumulated other comprehensive income (loss) component of stockholders’ equity totaled $231 thousand at June 30, 2019 compared to $(8.19) million at December 31, 2018. This fluctuation was mostly related to the after-tax effect of changes in the fair value of securities available for sale.

Regulatory agencies for banks and bank holding companies utilize capital guidelines designed to measure Tier 1 and total capital and take into consideration the risk inherent in both on-balance sheet and off-balance sheet items.

Tier 1 capital consists of common stock and qualifying preferred stockholders’ equity and trust preferred securities less goodwill. Tier 2 capital consists of tier 1 capital 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 as of June 30, 2019 was 12.70 percent and total Tier 1 and 2 risk-based capital was 13.37 percent. Both of these measures compare favorably with the regulatory minimum to be adequately capitalized of 6 percent for Tier 1 and 8 percent for total risk-based capital. The Company’s common equity Tier 1 ratio as of June 30, 2019 was 10.41, which exceeds the regulatory minimum of 4.50 percent. The Company’s Tier 1 leverage ratio as of June 30, 2019 was 9.34 percent, which exceeds the required ratio standard of 4 percent.

As of June 30, 2019, average capital was $104.84 million, representing 7.85 percent of average assets for the year. This compares to 7.46 percent for June 2018.

The Company reinstated common stock dividends in the first quarter of 2017. The Company paid $0.05 per share of common stock in each of the quarters of 2018. The Company paid $0.075 per share of common stock in the first and second quarter of 2019.

The Company, primarily through the actions of the Bank, engages in liquidity management to ensure adequate cash flow for deposit withdrawals, credit commitments and repayments of borrowed funds. Needs are met through loan repayments, net interest and fee income and the sale or maturity of existing assets. In addition, liquidity is continuously provided through the acquisition of new deposits, the renewal of maturing deposits and external borrowings.

Management monitors deposit flow and evaluates alternate pricing structures to retain and grow deposits. To the extent needed to fund loan demand, traditional local deposit funding sources are supplemented by the use of FHLB borrowings, brokered deposits and other wholesale deposit sources outside the immediate market area. Internal policies have been updated to monitor the use of various core and non-core funding sources, and to balance ready access with risk and cost. Through various asset/liability management strategies, a balance is maintained among goals of liquidity, safety and earnings potential. Internal policies that are consistent with regulatory liquidity guidelines are monitored and enforced by the Bank.

The investment portfolio provides a ready means to raise cash if liquidity needs arise. As of June 30, 2019, the available for sale bond portfolio totaled $409.84 million. At December 31, 2018, the available for sale bond portfolio totaled $353.07 million. Only marketable investment grade bonds are purchased. Although a good portion of the banks’ bond portfolios are encumbered as pledges to secure various public funds deposits, repurchase agreements, and for other purposes, management can restructure and free up investment securities for a sale if required to meet liquidity needs.

Management continually monitors the relationship of loans to deposits as it primarily determines the Company’s liquidity posture. The Company had ratios of loans to deposits of 72.07 percent as of June 30, 2019 and 72.07 percent at December 31, 2018. Management employs alternative funding sources when deposit balances will not meet loan demands. The ratios of loans to all funding sources (excluding Subordinated Debentures) at June 30, 2019 and December 31, 2018 were 69.92 percent and 69.26 percent, respectively.

67

Part I (Continued)

Item 2 (Continued)

Management continues to emphasize programs to generate local core deposits as our Company’s primary funding sources. The stability of the banks’ core deposit base is an important factor in Colony’s liquidity position. A heavy percentage of the deposit base is comprised of accounts of individuals and small businesses with comprehensive banking relationships and limited volatility. At June 30, 2019 and December 31, 2018, the Company had $71.36 million and $53.88 million in certificates of deposit of $250,000 or more. These larger deposits represented 5.50 percent and 4.97 percent of respective total deposits. Management seeks to monitor and control the use of these larger certificates, which tend to be more volatile in nature, to ensure an adequate supply of funds as needed. Relative interest costs to attract local core relationships are compared to market rates of interest on various external deposit sources to help minimize the Company’s overall cost of funds.

The Company supplemented deposit sources with reciprocal deposits. As of June 30, 2019, the Company had $109.64 million, or 8.45 percent of total deposits, in ICS deposits and CDARS deposits. Due to changes in regulatory rules with reciprocal deposits, all of the Company’s reciprocal deposits were excluded from being treated as brokered deposits at June 30, 2019. Additional information is provided in the Notes to the Consolidated Financial Statements regarding these reciprocal deposits. Additionally, the Company uses external deposit listing services to obtain out-of-market certificates of deposit at competitive interest rates when funding is needed. These deposits obtained from listing services are often referred to as wholesale or internet CDs. As of June 30, 2019, the Company had $6.75 million, or 0.52 percent of total deposits, in internet certificates of deposit obtained through deposit listing services.

To plan for contingent sources of funding not satisfied by both local and out-of-market deposit balances, the Company and the Bank have established multiple borrowing sources to augment their funds management. The Company has borrowing capacity through membership of the Federal Home Loan Bank program. The Bank has also established overnight borrowing for Federal Funds purchased through various correspondent banks. Management believes the various funding sources discussed above are adequate to meet the Company’s liquidity needs in the future without any material adverse impact on operating results.

Liquidity measures the ability to meet current and future cash flow needs as they become due. The liquidity of a financial institution reflects its ability to meet loan requests, to accommodate possible outflows in deposits and to take advantage of interest rate market opportunities. The ability of a financial institution to meet its current financial obligations is a function of balance sheet structure, the ability to liquidate assets, and the availability of alternative sources of funds. The Company seeks to ensure its funding needs are met by maintaining a level of liquid funds through asset/liability management.

Asset liquidity is provided by liquid assets which are readily marketable or pledgeable or which will mature in the near future. Liquid assets include cash, interest-bearing deposits in banks, securities available for sale, federal funds sold and securities purchased under resale agreements.

Liability liquidity is provided by access to funding sources which include core deposits. Should the need arise, the Company also maintains relationships with the Federal Home Loan Bank, Federal Reserve Bank and three correspondent banks.

Since the Company is a bank holding company and does not conduct operations, its primary sources of liquidity are dividends up streamed from the Bank and borrowings from outside sources.

The liquidity position of the Company is continuously monitored and adjustments are made to the balance sheet between sources and uses of funds as deemed appropriate. Management is not aware of any events that are reasonably likely to have a material adverse effect on the Company’s liquidity, capital resources or operations. In addition, management is not aware of any regulatory recommendations regarding liquidity, which if implemented, would have a material adverse effect on the Company.

68

Part I (Continued)

Item 2 (Continued)

Return on Assets and Stockholders’ Equity

The following table presents selected financial ratios for each of the periods indicated.

	Three months ended June 30,						Six months ended June 30,
	2019			2018			2019			2018
Return on Average Assets (1)		0.60	%		1.03	%		0.74	%		1.04	%
Return on Average Total Equity (1)		7.43	%		13.82	%		9.42	%		14.00	%
Average Total Equity to Average Assets		8.03	%		7.45	%		7.85	%		7.46	%

(1) Computed using annualized net income available to common shareholders.

69

Part I (Continued)

Item 3

ITEM 3 – QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Interest rate risk is the change in value due to changes in interest rates. The Company is exposed only to U.S. dollar interest rate changes and, accordingly, the Company manages exposure by considering the possible changes in the net interest margin. In order to reduce the exposure to interest rate fluctuations, we have implemented strategies to more closely match our balance sheet composition. There have been no material changes in market risk from the information provided in the Company’s annual report on Form 10-K for the year ended December 31, 2018.

ITEM 4 – CONTROLS AND PROCEDURES

The Company’s Chief Executive Officer and Chief Financial Officer, have evaluated the effectiveness of the Company’s “disclosure controls and procedures,” as such term is defined in Rule 13a-15(e) or 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Based upon their evaluation, the Chief Executive Officer and Chief Financial Officer concluded that, as of the end of the period covered by this report, the Company’s disclosure controls and procedures were effective for the purpose of ensuring that the information required to be disclosed in the reports that the Company files or submits under the Exchange Act with the Securities and Exchange Commission (1) is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and (2) is accumulated and communicated to the Company’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure. In addition, no change in the Company’s internal control over financial reporting occurred during the quarter ended June 30, 2019 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

70

Part II – OTHER INFORMATION

ITEM 1 – LEGAL PROCEEDINGS

None

ITEM 1A – RISK FACTORS

There have been no material changes to the risk factors disclosed in Item 1A of Part I in our Annual Report on Form 10-K for the year ended December 31, 2018.

ITEM 2 – UNREGISTERED SALE OF EQUITY SECURITIES AND USE OF PROCEEDS

There were no shares of the Company’s common stock sold during the three-month period ended June 30, 2019.

ITEM 3 – DEFAULTS UPON SENIOR SECURITIES

None

ITEM 4 – MINE SAFETY DISCLOSURES

Not applicable

ITEM 5 – OTHER INFORMATION

None

ITEM 6 – EXHIBITS

3.1 Articles of Incorporation, As Amended

-filed as Exhibit 99.1 to the Registrant’s 10-Q for the period ended June 30, 2014 (File No. 0-12436), filed with the Commission on August 4, 2014 and incorporated herein by reference.

3.2 Bylaws, as Amended

-filed as Exhibit 3(b) to the Registrant’s Registration Statement on Form 10 (File No. 0-18486), filed with the Commission on April 25, 1990 and incorporated herein by reference.

3.3 Article of Amendment to the Company’s Articles of Incorporation Authorizing Additional Capital Stock in the Form of Ten Million Shares of Preferred Stock

-filed as Exhibit 3.1 to the Registrant’s Current Report on Form 8-K (File No. 000-12436) filed with the Commission on January 13, 2009 and incorporated herein by reference.

3.4 Articles of Amendment to the Company’s Articles of Incorporation Establishing the Terms of the Series A Preferred Stock

-filed as Exhibit 3.2 to the Registrant’s Current Report on Form 8-K (File No. 000-12436) filed with the Commission on January 13, 2009 and incorporated herein by reference.

3.5 Amendment to the Company’s Bylaws

-filed as Exhibit 99.1 to the Registrant’s 8-K (File No.000-12436) , filed with the Commission on May 29, 2015 and incorporated herein by reference.

4.1 Warrant to Purchase up to 500,000 shares of Common Stock

-filed as Exhibit 4.1 to the Registrant’s Current Report on Form 8-K (File No. 000-12436), filed with the Commission on January 13, 2009 and incorporated herein by reference.

71

Part II (Continued)

Item 6 (Continued)

4.2 Form of Series A Preferred Stock Certificate

-filed as Exhibit 4.2 to the Registrant’s Current Report on Form 8-K (File No. 000-12436), filed with the Commission on January 13, 2009 and incorporated herein by reference.

10.1 Deferred Compensation Plan and Sample Director Agreement

-filed as Exhibit 10(a) to the Registrant’s Registration Statement on Form 10 (File No. 0-18486), filed with the Commission on April 25, 1990 and incorporated herein by reference.

10.2 Profit-Sharing Plan Dated January 1, 1979

-filed as Exhibit 10(b) to the Registrant’s Registration Statement on Form 10 (File No. 0-18486), filed with the Commission on April 25, 1990 and incorporated herein by reference.

10.3 Retention Agreement

-filed as Exhibit 99.1 to the Registrant’s 10-Q for the period ended March 31, 2015 (File No. 000-12436), filed with the Commission on May 4, 2015 and incorporated herein by reference.

10.4 Retention Agreement

-filed as Exhibit 99.2 to the Registrant’s 10-Q for the period ended June 30, 2016 (File No. 000-12436), filed with the Commission on May 31, 2016 and incorporated herein by reference.

10.5 Retention Agreement

-filed as Exhibit 99.3 to the Registrant’s 10-Q for the period ended March 31, 2018 (File No. 000-12436), filed with the Commission on May 4, 2018 and incorporated herein by reference.

10.6 Employment Agreement, Dated July 27, 2018 Between T. Heath Fountain and Colony Bankcorp, Inc.

-filed as Exhibit 99.4 to the Registrant’s 10-Q for the period ended September 30, 2018 (File No. 000-12436), filed with the Commission on November 2, 2018 and incorporated herein by reference.

10.7 Restricted Stock Award Between T. Heath Fountain and Colony Bankcorp, Inc.

-filed as Exhibit 10.1 to the Registrant’s Registration Statement on Form S-8 (File No. 000-12436), filed with the Commission on August 23, 2018 and incorporated herein by reference.

10.8 Retention Agreement

-filed as Exhibit 99.2 to the Registrant’s Current Report on Form 8-K (File No. 000-12436), filed with the Commission on January 17, 2019 and incorporated herein by reference.

10.9 Employment Agreement, Date June 24, 2019 Between Tracie Youngblood and Colony Bankcorp, Inc.

-filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K/A (File No. 000-12436), filed with the Commission on June 24, 2019 and incorporated herein by reference.

99.1 Amendment to the Company’s Bylaws

-filed as Exhibit 99.1 to the Registrant’s 10-Q for the period ended June 30, 2019 (File No. 000-12436), filed with the Commission on July 30, 2019

72

Part II (Continued)

Item 6 (Continued)

31.1 Certificate of Chief Executive Officer Pursuant to Section 302 of Sarbanes-Oxley Act of 2002

31.2 Certificate of Chief Financial Officer Pursuant to Section 302 of Sarbanes – Oxley Act of 2002

32.1 Certification of Chief Executive Officer and Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101.INS XBRL Instance Document

101.SCH XBRL Schema Document

101.CAL XBRL Calculation Linkbase Document

101.DEF XBRL Definition Linkbase Document

101.LAB XBRL Label Linkbase Document

101.PRE XBRL Presentation Linkbase Document

73

SIGNATURES

Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Colony Bankcorp, Inc.
	/s/ T. Heath Fountain
Date:     July 30, 2019	T. Heath Fountain
	President/Director/Chief Executive Officer

	/s/ Tracie Youngblood
Date:     July 30, 2019	Tracie Youngblood
	Executive Vice-President/Director/Chief Financial Officer

74

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, T. Heath Fountain certify that:

1. I have reviewed this Form 10-Q of Colony Bankcorp, Inc:

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

July 30, 2019

/s/ T. Heath Fountain                                                  
T. Heath Fountain

President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, Tracie Youngblood certify that:

1. I have reviewed this Form 10-Q of Colony Bankcorp, Inc:

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

July 30, 2019

/s/ Tracie Youngblood                                                                             
Tracie Youngblood

Executive Vice-President and Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION OF CEO AND CFO PURSUANT TO

18 U.S.C. § 1350

AS ADOPTED PURSUANT TO

§ 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Form 10-Q of Colony Bankcorp, Inc. (the Company) for the period ended June 30, 2019 as filed with the Securities and Exchange Commission on the date hereof (the Report), T. Heath Fountain, President and Chief Executive Officer of the Company, and Tracie Youngblood, Executive Vice President and Chief Financial Officer of the Company, each hereby certifies, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, to the best of his knowledge that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

July 30, 2019

/s/ T. Heath Fountain                                                     
T. Heath Fountain

President and Chief Executive Officer

July 30, 2019

/s/ Tracie Youngblood                                                   
Tracie Youngblood

Executive Vice-President and Chief Financial Officer

This certification accompanies this Report pursuant to § 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of §18 of the Securities Exchange Act of 1934, as amended.

EX-99.1

Exhibit 99.1

AMENDED AND RESTATED

BYLAWS

of

COLONY BANKCORP, INC.

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TABLE OF CONTENTS

Article One OFFICES		1
1.1	Registered Office	1
1.2	Other Offices	1
Article Two SHAREHOLDERS' MEETINGS		1
2.1	Place of Meetings	1
2.2	Annual Meetings	1
2.3	Substitute Annual Meetings	1
2.4	Special Meetings	1
2.5	Notice of Meetings	1
2.6	Quorum	1
2.7	Voting of Shares	2
2.8	Proxies	2
2.9	Presiding Officer	2
2.10	Adjournments	2
Article Three THE BOARD OF DIRECTORS		3
3.1	General Powers	3
3.2	Requirements	3
3.3	Number Election and Term of Office	3
3.4	Removal	3
3.5	Compensation	3
3.6	Committees of the Board of Directors	3
3.7	Honorary and Advisory Directors	3
3.8	Mandatory Retirement of Directors	4
Article Four MEETINGS OF THE BOARD OF DIRECTORS		4
4.1	Regular Meetings	4
4.2	Special Meetings	4
4.3	Place of Meetings	4
4.4	Notice of Meetings	4
4.5	Quorum	4
4.6	Vote Required for Action.	4
4.7	Action by Directors Without a Meeting	5
4.8	Secretary to Board	5
Article Five NOTICE AND WAIVER		5
5.1	Procedure	5
5.2	Waiver	5

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Article Six OFFICERS		5
6.1	Number	5
6.2	Election and Term	5
6.3	Compensation	5
6.4	Removal	6
6.5	Chairman of the Board	6
6.6	President	6
6.7	Officer in Place of President	6
6.8	Secretary	6
Article Seven DIVIDENDS		6
7.1	Time and Conditions of Declaration	6
7.2	Share Dividends - Treasury Shares	6
7.3	Share Dividends - Unissued Shares	6
7.4	Share Splits	7
Article Eight SHARES		7
8.1	Authorization and Issuance of Shares	7
8.2	Certificates; Direct Registration System	7
8.3	Rights of Corporation with Respect to Registered Owners	7
8.4	Transfer of Shares	7
8.5	Duty of Corporation to Register Transfer	8
8.6	Lost, Stolen or Destroyed Certificates	8
8.7	Fixing of Record Date	8
8.8	Record Date if None Fixed	8
Article Nine INDEMNIFICATION		9
9.1	Indemnification	9
9.2	Payment of Expenses in Advance	9
9.3	Insurance	9
9.4	Rights Not Exclusive	9
Article Ten MISCELLANEOUS		9
10.1	Inspection of Books and Records	9
10.2	Fiscal Year	9
10.3	Seal	10
Article Eleven AMENDMENTS		10

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Article One

OFFICES

1.1     Registered Office. The corporation shall maintain its registered office in Ben Hill County, Georgia.

1.2     Other Offices. In addition to its registered office, the corporation also may have offices at such other place or places as the Board of Directors may from time to time select, or as the business of the corporation may require or make desirable, subject to the bank holding company laws of this State.

Article Two

SHAREHOLDERS' MEETINGS

2.1     Place of Meetings. Meetings of the shareholders of the corporation may be held at any place within (or without) the State of Georgia, as set forth in the notice thereof.

2.2     Annual Meetings. The annual meeting of the shareholders of the corporation shall be held on the fourth Tuesday in May of each year unless that day is a legal holiday and in that event on the next succeeding business day, for the purpose of electing directors and transacting any and all business that may properly come before the meeting.

2.3     Substitute Annual Meetings. If the annual meeting is not held on the day designated in Section 2.2, any business, including the election of directors, which might properly have been acted upon at that meeting, may be transacted at any subsequent shareholders' meeting held pursuant to these bylaws or held pursuant to a court order requiring a substitute annual meeting.

2.4     Special Meetings. Special meetings of shareholders or a special meeting in lieu of the annual meeting of shareholders shall be called by the corporation upon the written request of the holders of twenty-five percent (25%) or more of all the shares of capital stock of the corporation entitled to vote in an election of directors. Special meetings of the shareholders may be called at any time by the President, Chairman of the Board, or the Board of Directors.

2.5     Notice of Meetings. Unless waived as contemplated in Section 5.2, or by attendance at the meeting, either in person or by proxy, for any purpose other than to object to the transaction of business, a written or printed notice of each shareholders' meeting stating the place, day and hour of the meeting shall be delivered not less than twenty (20) days, nor more than fifty (50) days before the date thereof, either personally, by mail, or by telegram, charges prepaid by or at the direction of the President, the Secretary, or the officer or persons calling the meeting, to each shareholder of record entitled to vote at such meeting. In the case of an annual or substitute annual meeting, the notice of the meeting need not state the purpose or purposes of the meeting unless the purpose or purposes constitute a matter which the Georgia Business Corporation Code requires to be stated in the notice of the meeting. In the case of a special meeting, the notice of the meeting shall state the general nature of the business to be transacted.

2.6     Quorum. At all meetings of the shareholders, the presence in person or by proxy of the holders of more than one-half of the shares outstanding and entitled to vote shall constitute a quorum. If a quorum is present, a majority of the shares represented at the meeting and entitled to vote on the subject matter shall determine any matter coming before the meeting unless a different vote is required by the Georgia Business Corporation Code, by the Articles of Incorporation of the corporation or by these bylaws. The shareholders at a meeting at which a quorum is once present may continue to transact business at the meeting or by any adjournment thereof, notwithstanding the withdrawal of enough shareholders to leave less than a quorum. If a meeting cannot be organized for lack of a quorum, those shareholders present may adjourn the meeting to such time and place as they may determine. In the case of a meeting for the election of directors which is twice adjourned for lack of a quorum, those present at the second of such adjourned meetings, of which notice has been given in writing to shareholders, shall constitute a quorum for the election of directors.

2.7     Voting of Shares. Each outstanding share having voting rights shall be entitled to one vote on each matter submitted to a vote at a meeting of shareholders. Voting on all matters shall be by voice vote or by show of hands unless any qualified voter, prior to the voting on any matter, demands vote by ballot, in which case each ballot shall state the name of the shareholder voting and the number of shares voted by him, and if such ballot be cast by proxy, it shall also state the name of such proxy.

2.8     Proxies. A shareholder entitled to vote pursuant to Section 2.7 may vote in person or by proxy executed in writing by the shareholder or by his attorney in fact. A proxy shall not be valid after eleven (11) months from the date of its execution, unless a longer period is expressly stated therein. If the validity of any proxy is questioned, it must be submitted to the secretary of the shareholders' meeting for examination or to a proxy officer or committee appointed by the person presiding at the meeting. The secretary of the meeting or, if appointed, the proxy officer or committee, shall determine the validity or invalidity of any proxy submitted and referenced by the secretary in the minutes of the meeting to the regularity of a proxy shall be received as prima facie evidence of the facts stated for the purpose of establishing the presence of a quorum at such meeting and for all other purposes.

2.9     Presiding Officer. The Chairman of the Board of Directors or, in the absence of a Chairman of the Board of Directors, the President, shall serve as chairman of every shareholders' meeting unless some other person is elected to serve as chairman by a majority vote of the shares represented at the meeting. The Chairman may appoint such persons as he deems required to assist with the meeting.

2.10     Adjournments. Any meeting of the shareholders, whether or not a quorum is present, may be adjourned by the holders of a majority of the voting shares represented at the meeting to reconvene at a specific time and place. Except as otherwise provided by Section 2.6, it shall not be necessary to give any notice of the reconvened meeting or of the business to be transacted, if the time and place of the reconvened meeting are announced at the meeting which was adjourned. At any such reconvened meeting, any business may be transacted which could have been transacted at the meeting which was adjourned.

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Article Three

THE BOARD OF DIRECTORS

3.1     General Powers. The business and affairs of the corporation shall be managed by the Board of Directors. In addition to the powers and authority expressly conferred upon it by these bylaws, the Board of Directors may exercise all such powers of the corporation and do all such lawful acts and things as are not by these bylaws directed or required to be exercised or done by the shareholders.

3.2     Requirements. Each director of the corporation shall be a natural person of the age of 18 years or more.

3.3     Number Election and Term of Office. The Board of Directors of the corporation shall consist of not less than three (3), nor more than twenty-five (25) persons, with the exact number within such minimum and maximum lists to be fixed and determined from time to time by resolution of the Board of Directors, or by resolution of the shareholders at any annual or special meeting of shareholders. The directors shall be elected by the affirmative vote of a majority of the shares represented at the annual meeting of shareholders. Each director, except in the case of his earlier death, resignation, retirement, disqualification, or removal, shall serve until the next succeeding annual meeting and thereafter until his successor shall have been elected and qualified.

3.4     Removal. The entire Board of Directors or any individual director may be removed from office with or without cause by the affirmative vote of the holders of a majority of the shares entitled to vote at an election of directors. In addition, the Board of Directors may remove a director from office if such director is adjudicated an incompetent by a court, if he is convicted of a felony, or if he fails to attend regular meetings of the Board of Directors for three (3) consecutive meetings without having been excused by the Board of Directors.

3.5     Compensation. Directors may receive such compensation for their services as directors as may from time to time be fixed by vote of the Board of Directors. A director may also serve the corporation in a capacity other than that of director and receive compensation, as determined by the Board of Directors, for services rendered in such other capacity.

3.6     Committees of the Board of Directors. The Board of Directors, by resolution adopted by a majority of the full Board of Directors, may designate from among its members an executive committee and one or more other committees, each consisting of three or more directors. Each committee shall have the authority of the Board of Directors in regard to the business of the corporation to the extent set forth in the resolution establishing such committee.

3.7     Honorary and Advisory Directors. The Board of Directors of the corporation also may appoint any individual an Honorary Director, Director Emeritus, or member of any advisory board established by the Board of Directors. Any individual appointed an Honorary Director, Director Emeritus, or member of an advisory board may be compensated as provided in Section 3.5, but such individual may not vote at any meeting of the Board of Directors or be counted in determining a quorum as provided in Section 4.5 and shall not have any responsibility or be subject to any liability imposed upon a director, or otherwise be deemed a director.

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3.8     Mandatory Retirement of Directors. Any director who reaches the age of 75 years at any time during the annual term of his or her term of office shall not be permitted to be appointed or reappointed as a director of the Company for any term during which said director has reached the age of 75 years.

Article Four

MEETINGS OF THE BOARD OF DIRECTORS

4.1     Regular Meetings. An annual organizational meeting of the Board of Directors shall be held on the day of and after the annual meeting of the shareholders of the corporation. In the event the annual shareholders' meeting is not held as provided by Sections 2.3 or 2.4, such organizational meeting shall be held as herein provided for regular meetings. In addition, regular meetings of the Board of Directors shall be held on any fixed by the Board of every month during the calendar year, except during the month in which the organizational meeting of the Board of Directors is held; provided, however, that the Board of Directors and the President are authorized to cancel any such regular meetings, excluding the organizational meeting.

4.2     Special Meetings. Special meetings of the Board of Directors may be called by or at the request of the President, Chairman of the Board, or by any two directors in office at that time.

4.3     Place of Meetings. Directors may hold their meetings at any place within (or without) the State of Georgia as the Board of Directors may from time to time establish for regular meetings, or as set forth in the notice of special meetings, or in the event of a meeting held pursuant to waiver of notice, as set forth in the waiver.

4.4     Notice of Meetings. No notice shall be required for any regularly scheduled meeting of the directors of the corporation. Unless waived as contemplated in Section 5.2, the President or Secretary of the corporation, or any director thereof shall give notice to each director of each special meeting stating the time, place and purposes of the meeting. Such notice shall be given by mailing notice of the meeting at least five (5) days before the date of the meeting, or by telephone, telegram, or personal delivery at least three (3) days before the date of the meeting. Notice shall be deemed to have been given by telegram or cablegram at the time notice is filed with the transmitting agency. Attendance by a director at a meeting shall constitute a waiver of notice of such meeting, except where a director attends a meeting for the express purpose of objecting to the transaction of business because the meeting is not lawfully called.

4.5     Quorum. At meetings of the Board of Directors, more than one-half of the directors then in office shall be necessary to constitute a quorum for the transaction of business. Vote Required for Action. Except as otherwise provided in these bylaws, by the corporation's Articles of Incorporation, or by law, the act of a majority of the directors present at a meeting at which a quorum is present at the time shall be the act of the Board of Directors.

4.6     Vote Required for Action. Except as otherwise provided in these bylaws, by the corporation’s Articles of Incorporation, or by law, the act of a majority of the directors present at a meeting at which a quorum is present at the time shall be the act of the Board of Directors.

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4.7     Action by Directors Without a Meeting. Any action which may be taken at any meeting of the Board of Directors, or at any meeting of a committee of directors may be taken without a meeting if a written consent thereto shall be signed by all directors, or all the members of the committee, as the case may be, and if such written consent is filed with the minutes of the proceedings of the Board or the committee. Such consent shall have the same force and effect as a unanimous vote of the Board of Directors or the committee.

4.8     Secretary to Board. The Board of Directors shall appoint a secretary, who need not be a member of the Board, whose duty it shall be to keep an accurate record of all meetings of said Board.

Article Five

NOTICE AND WAIVER

5.1     Procedure. Whenever these bylaws require notice to be given to any shareholder or director, the notice shall be given as prescribed in Sections 2.5 or 4.4, whichever is applicable. Whenever notice is given to a shareholder or director by mail, the notice shall be sent first class mail by depositing the same in a post office or letter box in a postage prepaid, sealed envelope, addressed to the shareholder or director at his last known address, and such notice shall be deemed to have been given at the time the same is deposited in the United States mail.

5.2     Waiver. Whenever any notice is required to be given to any shareholder or director by law, by the Articles of Incorporation, or these bylaws, a waiver thereof in writing, signed by the director or shareholder entitled to such notice, or by the proxy of such shareholder, whether before or after the meeting to which the waiver pertains, shall be deemed equivalent thereto; provided, however, that no such waiver shall apply by its terms to more than one required notice.

Article Six

OFFICERS

6.1     Number. The officers of the corporation shall consist of a President, Secretary and a Treasurer. In addition, the Board of Directors may from time to time elect or provide for the appointment of such other officers or assistant officers as it deems necessary for the efficient management of the corporation, or as shall otherwise be required by law or regulation. Any two or more offices may be held by the same person, except the offices of President and Secretary. The Board of Directors shall have the power to establish and specify the duties for all officers of the corporation.

6.2     Election and Term. All officers shall be elected by the Board of Directors and shall serve at the will of the Board of Directors and until their successors have been elected and have qualified, or until their earlier death, resignation, removal, retirement or disqualification.

6.3     Compensation. The compensation of all officers of the corporation shall be fixed by the Board of Directors, or by the Executive Committee of the Board of Directors, if such committee is designated as provided in Section 3.6. Compensation of all employees who are not officers shall be set by the President subject to review by the Board, at its election.

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6.4     Removal. Any officer or agent elected by the Board of Directors may be removed by the Board of Directors with or without any cause whenever in its judgment the best interests of the corporation will be served thereby without prejudice to any contract right to such officer.

6.5     Chairman of the Board. The Board of Directors, in its discretion, may elect a Chairman of the Board of Directors who shall preside and act as chairman at all meetings of the shareholders and the Board of Directors and who shall perform such other duties as the Board of Directors may from time to time direct.

6.6     President. The President shall be the chief executive officer of the corporation and shall have general control and supervision over the business and affairs of the corporation. He shall see that all orders and resolutions of the Board of Directors are carried into effect. In the absence of a Chairman of the Board of Directors, the President shall preside and act as chairman of all meetings of the shareholders and the Board of Directors. He also shall perform such other duties as may be delegated to him from time to time by the Board of Directors.

6.7     Officer in Place of President. The Board of Directors may designate an officer who shall, in the absence or disability of the President, or at the direction of the President, perform the duties and exercise the powers of the President.

6.8     Secretary. The Secretary shall keep accurate records of the acts and proceedings of all meetings of shareholders, directors and committees of directors. He shall have authority to give all notices required by law or these bylaws. He shall be custodian of the corporate books, records, contracts and other documents. The Secretary may affix the corporation's seal to any lawfully executed documents requiring it and shall sign such instruments as may require his signature.

Article Seven

DIVIDENDS

7.1     Time and Conditions of Declaration. Dividends upon the outstanding shares of the corporation may be declared by the Board of Directors at any regular or special meeting and paid in cash or property only out of the unreserved and unrestricted earned surplus of the corporation or out of the unreserved and unrestricted net earnings of the current fiscal year, computed to the date of declaration of the dividend, or the next preceding fiscal year.

7.2     Share Dividends - Treasury Shares. Dividends may be declared by the Board of Directors and paid in the shares of the corporation out of any treasury shares that have been reacquired out of the capital funds of the corporation.

7.3     Share Dividends - Unissued Shares. Dividends may be declared by the Board of Directors and paid in the authorized but unissued shares of the corporation out of any retained earnings of the corporation; provided that such shares shall be issued at not less than the par value thereof, there shall be transferred to capital stock at the time such dividend is paid an amount of retained earnings at least equal to the aggregate par value of the shares to be issued as a dividend.

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7.4     Share Splits. A split or division of the issued shares of any class into a greater number of shares of the same class without increasing the capital stock of the corporation shall not be construed to be a share dividend within the meaning of this Article.

Article Eight

SHARES

8.1     Authorization and Issuance of Shares. The par value and the maximum number of shares of any class of the corporation which may be issued and outstanding shall be set forth from time to time in the Articles of Incorporation of the corporation. The Board of Directors may increase or decrease the number of issued and outstanding shares of the corporation within the maximum number of shares authorized by the Articles of Incorporation and the minimum capitalization requirements of the Articles of Incorporation or Georgia law.

8.2     Certificates; Direct Registration System. Shares of the corporation's stock may be certificated or uncertificated, as provided under Georgia law. Any certificates that are issued shall be signed in the name of the corporation by the Chairman of the Board, the Vice Chairman of the Board, the President, or a Vice President and by the Chief Financial Officer, an Assistant Treasurer, the Corporate Secretary, or an Assistant Secretary, certifying the number of shares and the class or series of shares owned by the shareholder. Any or all of the signatures on the certificate may be a facsimile. In case any officer, Transfer Agent, or Registrar who has signed or whose facsimile signature has been placed upon a certificate shall have ceased to be with the same effect as if such person were an officer, Transfer Agent, or Registrar at the date of issue. Shares of the corporation's capital stock may also be evidenced by registration in the holder's name in uncertificated, book-entry form on the books of the corporation in accordance with a direct registration system approved by the Securities and Exchange Commission and by NASDAQ or any securities exchange on which the stock of the corporation may from time to time be traded.

8.3     Rights of Corporation with Respect to Registered Owners. Prior to due presentation for transfer of registration of its shares, the corporation may treat the registered owner of the shares as the person exclusively entitled to vote such shares, to receive any dividend or other distribution with respect to such shares, and for all other purposes; and the corporation shall not be bound to recognize any equitable or other claim to or interest in such shares on the part of any other person, whether or not it shall have express or other notice thereof, except as otherwise provided by law.

8.4     Transfer of Shares. Transfers of shares of stock of the corporation shall be made by the Transfer Agent and Registrar on the books of the corporation after receipt of a request with proper evidence of succession, assignment, or authority to transfer by the record holder of such stock, or by an attorney lawfully constituted in writing, and in the case of stock represented by a certificate, upon surrender of the certificate. Subject to the foregoing, the Board of Directors shall have power and authority to make such rules and regulations as it shall deem necessary or appropriate concerning the issue, transfer, and registration of shares of stock of the corporation, and to appoint and remove Transfer Agents and Registrars of transfers.

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8.5     Duty of Corporation to Register Transfer. Notwithstanding any of the provisions of Section 8.4 of these Bylaws, the corporation is under a duty to register the transfers of its shares only if:

(a) the share certificate is endorsed by the appropriate person or persons or upon the presentation proper evidence of authority to transfer by the record holder; and

(b) reasonable assurance is given that these endorsements or evidence of the authority to transfer are genuine and effective; and

(c) the corporation has no duty to inquire into adverse claims or has discharged any such duty; and

(d) any applicable law relating to the collection of taxes has been complied with; and

(e) the transfer is in fact rightful or is a bona fide purchaser.

8.6     Lost, Stolen or Destroyed Certificates. Any person claiming a certificate of stock to be lost, stolen, mislaid, or destroyed shall make an affidavit or affirmation of that fact and verify the same in such manner as the Board of Directors may require, and shall, if the Board of Directors so requires, give the corporation, its Transfer Agents, Registrars, and/or other agents a bond of indemnity in form approved by counsel, and in amount and with such sureties as may be satisfactory to the Corporate Secretary of the corporation, before a new certificate (or uncertificated shares in lieu of a new certificate) may be issued of the same tenor and for the same number of shares as the one alleged to have been lost, stolen, mislaid, or destroyed.

8.7     Fixing of Record Date. For the purpose of determining shareholders entitled to notice of or to vote at any meeting of shareholders or any adjournment thereof, or entitled to receive payment of any dividend, or in order to make a determination of shareholders for any other proper purpose, the Board of Directors may fix in advance a date as the record date, such date to be not more than 50 days (and, in the case of a shareholders' meeting, not less than 20 days) prior to the date on which the particular action, requiring such determination of shareholders, is to be taken.

8.8     Record Date if None Fixed. If no record date is fixed as provided in Section 8.7 of these bylaws, then the record date for any determination of shareholders which may be proper or required by law shall be the date on which notice is mailed in the case of a shareholders' meeting, or the date on which the Board of Directors adopts a resolution declaring a dividend in the case of payment of a dividend.

8

Article Nine

INDEMNIFICATION

9.1     Indemnification. Any person, his heirs, executors, or administrators, may be indemnified or reimbursed by the corporation for reasonable expense actually incurred in connection with any action, suit or proceeding, civil or criminal, to which he shall be made a party by reason of the fact that he is or was a director, trustee, officer, employee, or agent of the corporation, or that he is or was serving, at the request of the corporation, trust or other organization or enterprise; provided; however, that no person shall be so indemnified or reimbursed in relation to any matter in such action, suit or proceeding as to which he shall finally be adjudged to have been guilty of or liable for gross negligence, willful misconduct or criminal acts in the performance of his duties to the corporation, or to such other firm, corporation, trust, organization, or enterprise; and provided further, that no person shall be so indemnified or reimbursed in relation to any matter in such action, suit, or proceeding which has been in the subject of a compromise settlement, except with the approval of (i) a court of competent jurisdiction, (ii) the holders of record of a majority of the outstanding shares of capital stock of the corporation, or (iii) a majority of the members of the Board of Directors then holding office, excluding the votes of any directors who are parties to the same or substantially the same action, suit or proceeding.

9.2     Payment of Expenses in Advance. Expenses incurred in defending any action, suit or proceeding referred to above may be paid by the corporation in advance of the final disposition of such action, suit or proceeding as authorized by the Board of Directors in the specific case upon receipt of an undertaking by or on behalf of the director, trustee, officer, employee or agent to repay such amount unless it shall ultimately be determined that he is entitled to be indemnified by the corporation as provided above.

9.3     Insurance. The corporation, upon the affirmative vote of a majority of its Board of Directors, may purchase and maintain insurance on behalf of any person who is or was a director, trustee, officer, employee or agent of the corporation or is or was serving, at the request of the corporation, as a director, trustee, officer, employee, or agent of another firm, corporation, trust, or other organization or enterprise against liability asserted against him and incurred by him in such capacity or arising out of his status as such, whether or not the corporation would have the power to indemnify him against such liability under the foregoing provisions of these bylaws.

9.4     Rights Not Exclusive. The foregoing rights of indemnification or reimbursement shall not be exclusive of other rights to which the persons referred to above, or their heirs, executors, or administrators, may be entitled as a matter of law, and the corporation may indemnify such persons to the extent permitted by the Georgia Business Corporation Code, as such laws may be amended from time to time.

Article Ten

MISCELLANEOUS

10.1    Inspection of Books and Records. The Board of Directors shall have power to determine which accounts, books and records of the corporation shall be open to the inspection of shareholders, except such accounts, books and records that are specifically open to inspection by law, and the Board of Directors shall have power to fix reasonable rules and regulations not in conflict with the applicable law for the inspection of accounts, books and records which by law or by determination of the Board of Directors shall be open to inspection.

10.2    Fiscal Year. The fiscal year of the corporation shall be set by resolution of the Board of Directors.

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10.3    Seal. The following is the impression of the seal adopted by the Board of Directors.

Article Eleven

AMENDMENTS

The bylaws of the corporation may be altered or amended and new bylaws may be adopted by the shareholders at any annual or special meeting of the shareholders or by the Board of Directors at any regular or special meeting of the Board of Directors; provided, however, that if such action is to be taken at a meeting of the shareholders, notice of the general nature of the proposed change in the bylaws shall be given in the notice of meeting. The shareholders may provide by resolution that any bylaw provision repealed, amended, adopted or altered by them may not be repealed, amended, adopted or altered by the Board of Directors. Except as otherwise provided in the Articles of Incorporation, action by the shareholders with respect to bylaws shall be taken by an affirmative vote of a majority of all shares entitled to elect directors, and action by the Board of Directors with respect to bylaws shall be taken by an affirmative vote of a majority of all directors then holding office.

10

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Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2019	Jul. 30, 2019
Document Information [Line Items]
Entity Registrant Name	Colony Bankcorp Inc
Entity Central Index Key	0000711669
Trading Symbol	cban
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Current Reporting Status	Yes
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Common Stock, Shares Outstanding (in shares)		9,498,937
Entity Shell Company	false
Document Type	10-Q
Document Period End Date	Jun. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Amendment Flag	false
Title of 12(b) Security	Common Stock

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Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
ASSETS
Cash and Due from Banks	$ 13,911	$ 10,377
Interest-Bearing Deposits in Banks	58,617	49,779
Federal Funds Sold	2,884
Cash and Cash Equivalents	75,412	60,156
Investment Securities Available for Sale, at Fair Value	409,839	353,066
Other Investments, at Cost	3,261	2,978
Loans Held for Sale	3,813
Loans	935,271	782,027
Unearned Interest and Fees	(565)	(501)
Allowance for Loan Losses	(6,789)	(7,277)
Loans, Net	927,917	774,249
Premises and Equipment	32,909	28,831
Other Real Estate (Net of Allowance of $950 and $877 as of June 30, 2019 and December 31, 2018, Respectively)	987	1,841
Goodwill	16,134	202
Other Intangible Assets	3,481	556
Bank-Owned Life Insurance	21,357	17,598
Other Assets	11,862	12,401
Total Assets	1,506,972	1,251,878
LIABILITIES AND STOCKHOLDERS' EQUITY
Noninterest-Bearing	232,311	192,847
Interest-Bearing	1,065,412	892,278
Total Deposits	1,297,723	1,085,125
Subordinated Debentures	24,229	24,229
Other Borrowed Money	55,063	44,000
Other Liabilities	3,448	2,832
Total Liabilities	1,380,463	1,156,186
Stockholders' Equity
Common Stock, Par Value $1 per Share; Authorized 20,000,000 Shares, 9,498,937 and 8,444,908 Shares Issued as of June 30, 2019 and December 31, 2018, Respectively	9,499	8,445
Paid-In Capital	43,650	25,978
Retained Earnings	73,129	69,459
Accumulated Other Comprehensive Income (Loss), Net of Tax	231	(8,190)
Total Stockholders' Equity	126,509	95,692
Total Liabilities and Stockholders' Equity	$ 1,506,972	$ 1,251,878

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Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Other Real Estate, Allowance	$ 950	$ 877
Common stock, par value (in dollars per share)	$ 1	$ 1
Common stock, shares authorized (in shares)	20,000,000	20,000,000
Common stock, shares issued (in shares)	9,498,937	8,444,908

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Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Interest Income
Loans, Including Fees	$ 12,294	$ 10,065	$ 22,764	$ 19,793
Loans Held for Sale	19		19
Deposits with Other Banks	281	69	563	144
Investment Securities:
U.S. Government Agencies	2,352	1,877	4,508	3,788
State, County and Municipal	33	25	58	52
Corporate Bonds	31	29	58	57
Federal Funds Sold	41		41
Dividends on Other Investments	47	44	100	85
Total Interest Income	15,098	12,109	28,111	23,919
Interest Expense
Deposits	2,632	1,401	4,754	2,601
Federal Funds Purchased		1		1
Borrowed Money	641	542	1,175	1,023
Total Interest Expense	3,273	1,944	5,929	3,625
Net Interest Income	11,825	10,165	22,182	20,294
Provision for Loan Losses	179	44	310	70
Net Interest Income After Provision for Loan Losses	11,646	10,121	21,872	20,224
Noninterest Income
Securities Gains	65	116	65	116
Other	1,211	173	1,538	568
Total Noninterest Income	4,000	2,324	6,334	4,758
Noninterest Expenses
Salaries and Employee Benefits	6,292	5,002	11,663	9,922
Occupancy and Equipment	1,144	979	2,169	2,025
Acquisition Related Expenses	1,928		1,961
Deposit Intangible Expenses	148	9	176	18
Other	3,502	2,611	6,071	5,172
Total Noninterest Expense	13,014	8,601	22,040	17,137
Income Before Income Taxes	2,632	3,844	6,166	7,845
Income Taxes	531	775	1,230	1,588
Net Income	$ 2,101	$ 3,069	$ 4,936	$ 6,257
Net Income Per Share of Common Stock
Basic (in dollars per share)	$ 0.23	$ 0.36	$ 0.56	$ 0.74
Diluted (in dollars per share)	0.23	0.36	0.56	0.72
Cash Dividends Paid Per Share of Common Stock (in dollars per share)	$ 0.075	$ 0.05	$ 0.15	$ 0.10
Weighted Average Basic Shares Outstanding (in shares)	9,089,461	8,439,258	8,764,909	8,439,258
Weighted Average Diluted Shares Outstanding (in shares)	9,089,461	8,612,352	8,764,909	8,634,865
Deposit Account [Member]
Noninterest Income
Non interest revenue from banking services	$ 1,070	$ 1,031	$ 2,034	$ 2,132
Bank Servicing [Member]
Noninterest Income
Non interest revenue from banking services	1,110	822	2,010	1,611
Mortgage Banking [Member]
Noninterest Income
Non interest revenue from banking services	$ 544	$ 182	$ 687	$ 331

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Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Net Income	$ 2,101	$ 3,069	$ 4,936	$ 6,257
Other Comprehensive Income:
Gains (Losses) on Securities Arising During the Period	6,720	(1,392)	10,724	(5,346)
Tax Effect	(1,411)	293	(2,252)	1,123
Realized Gains on Sale of AFS Securities	(65)	(116)	(65)	(116)
Tax Effect	14	24	14	24
Change in Unrealized Gains (Losses) on Securities Available for Sale, Net of Reclassification Adjustment and Tax Effects	5,258	(1,191)	8,421	(4,315)
Comprehensive Income	$ 7,359	$ 1,878	$ 13,357	$ 1,942

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Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Total
Balance (in shares) at Dec. 31, 2017	8,439
Balance at Dec. 31, 2017	$ 8,439	$ 29,145	$ 59,230	$ (6,491)	$ 90,323
Change in Net Unrealized (Losses) on Securities Available for Sale, Net of Reclassification Adjustment and Tax Effects				(4,315)	(4,315)
Dividends on Common Shares			(844)		(844)
Repurchase of Warrants		(3,175)			(3,175)
Net Income			6,257		6,257
Balance (in shares) at Jun. 30, 2018	8,439
Balance at Jun. 30, 2018	$ 8,439	25,970	64,643	(10,806)	88,246
Balance (in shares) at Dec. 31, 2018	8,445
Balance at Dec. 31, 2018	$ 8,445	25,978	69,459	(8,190)	95,692
Change in Net Unrealized (Losses) on Securities Available for Sale, Net of Reclassification Adjustment and Tax Effects				8,421	8,421
Dividends on Common Shares			(1,266)		(1,266)
Net Income			4,936		4,936
Stock-based Compensation Expense		17			17
Issuance of Common Stock (in shares)	1,054
Issuance of Common Stock	$ 1,054	17,655			18,709
Balance (in shares) at Jun. 30, 2019	9,499
Balance at Jun. 30, 2019	$ 9,499	$ 43,650	$ 73,129	$ 231	$ 126,509

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Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$ 4,936,000	$ 6,257,000
Adjustments to Reconcile Net Income to Net Cash
Depreciation	903,000	867,000
Share-based Compensation Expense	17,000
Provision for Loan Losses	310,000	70,000
Securities (Gains)	(65,000)	(116,000)
Amortization and Accretion	483,000	591,000
(Gain) on Sale of Other Real Estate and Repossessions	(937,000)	(120,000)
Provision for Losses on Other Real Estate	104,000	157,000
(Increase) in Cash Surrender Value of Life Insurance	(316,000)	(261,000)
(Gain) on Sale of Premises & Equipment	(2,000)
Provision for Losses on Premises & Equipment	151,000	3,000
Originations of Loans Held for Sale	(13,404,000)
Proceeds from Sales of Loans Held for Sale	9,591,000
Other Prepaids, Deferrals and Accruals, Net	1,647,000	465,000
Net Cash Provided by Operating Activities	3,418,000	7,913,000
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of Investment Securities Available for Sale	(82,057,000)	(19,257,000)
Proceeds from Maturities, Calls, and Paydowns of Investment Securities: Available for Sale	27,373,000	24,379,000
Proceeds from Sale of Investment Securities Available for Sale	56,821,000	11,268,000
Proceeds from Sale of Investment Securities Held to Maturity	1,766,000	0
Net Loans to Customers	(23,474,000)	(2,560,000)
Purchase of Premises and Equipment	(2,576,000)	(1,869,000)
Proceeds from Sale of Other Real Estate and Repossessions	2,143,000	1,236,000
Proceeds from Cash Surrender Value of Life Insurance	535,000
Redemption Federal Home Loan Bank Stock	195,000
(Purchase of) Federal Home Loan Bank Stock		(339,000)
Proceeds from Sale of Premises and Equipment	37,000
Net Cash and Cash Equivalents Paid in Acquisition	(467,000)
Net Cash (Used in) Provided by Investing Activities	(19,704,000)	12,858,000
CASH FLOWS FROM FINANCING ACTIVITIES
Noninterest-Bearing Customer Deposits	8,017,000	(13,592,000)
Interest-Bearing Customer Deposits	14,728,000	(18,507,000)
Dividends Paid for Common Stock	(1,266,000)	(844,000)
Repurchase of Warrants		(3,175,000)
Payments on Federal Home Loan Bank Advances	(5,000,000)	(2,500,000)
Proceeds from Federal Home Loan Bank Advances		10,000,000
Payments on Other Borrowed Money	(250,000)	(1,500,000)
Proceeds from Other Borrowed Money	15,313,000	7,000
Net Cash (Used in) Provided by Financing Activities	31,542,000	(30,111,000)
Net Increase (Decrease) in Cash and Cash Equivalents	15,256,000	(9,340,000)
Cash and Cash Equivalents at Beginning of Period	60,156,000	57,813,000
Cash and Cash Equivalents at End of Period	$ 75,412,000	$ 48,473,000

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Note 1 - Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Significant Accounting Policies [Text Block]

(

1

)

Summary of Significant Accounting Policies

Presentation

Colony Bankcorp, Inc. (the “Company”) is a bank holding company located in Fitzgerald, Georgia. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Colony Bank, Fitzgerald, Georgia (the “Bank”). All significant intercompany accounts have been eliminated in consolidation. The accounting and reporting policies of the Company conform to generally accepted accounting principles and practices utilized in the commercial banking industry.

In

July 2019,

a new subsidiary of the Company was incorporated under the name Colony Risk Management, Inc. Colony Risk Management, Inc. is a subsidiary of the Company and is located in Las Vegas, Nevada. It is a captive insurance subsidiary which insures various liability and property damage policies for the Company and its related subsidiaries. Colony Risk Management is regulated by the State of Nevada Division of Insurance.

All dollars in notes to consolidated financial statements are rounded to the nearest thousand, except for per share amounts.

The consolidated financial statements in this report are unaudited, except for the

December 31, 2018

consolidated balance sheet. All adjustments consisting of normal recurring accruals which are, in the opinion of management, necessary for fair presentation of the interim consolidated financial statements, have been included and fairly and accurately present the financial position, results of operations and cash flows of the Company. The results of operations for the

six

months ended

June 30, 2019

are

not

necessarily indicative of the results which

may

be expected for the entire year.

Nature of Operations

The Bank provides a full range of retail, commercial and mortgage banking services for consumers and small- to medium-size businesses located primarily in central, south and coastal Georgia. The Bank is headquartered in Fitzgerald, Georgia with banking and mortgage offices in Albany, Ashburn, Athens, Broxton, Centerville, Columbus, Cordele, Douglas, Eastman, Fitzgerald, LaGrange, Leesburg, Macon, Moultrie, Quitman, Rochelle, Savannah, Soperton, Sylvester, Statesboro, Thomaston, Tifton, Valdosta and Warner Robins. Lending and investing activities are funded primarily by deposits gathered through its retail banking office network.

Use of Estimates

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 fair value of assets acquired and liabilities assumed in a business combination.

Reclassifications

In certain instances, amounts reported in prior years’ consolidated financial statements have been reclassified to conform to statement presentations selected for

2019.

Such reclassifications have

not

affected previously reported stockholders’ equity or net income.

Concentrations of Credit Risk

Concentrations of credit risk can exist in relation to individual borrowers or groups of borrowers, certain types of collateral, certain types of industries, or certain geographic regions. The Company has a concentration in real estate loans as well as a geographic concentration that could pose an adverse credit risk. At

June 30, 2019,

approximately

86

percent of the Company’s loan portfolio was concentrated in loans secured by real estate. A substantial portion of borrowers’ ability to honor their contractual obligations is dependent upon the viability of the real estate economic sector. Management continues to monitor these concentrations and has considered these concentrations in its allowance for loan loss analysis.

The success of the Company is dependent, to a certain extent, upon the economic conditions in the geographic markets it serves. 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 the Company 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.

At times, the Company

may

have cash and cash equivalents at financial institutions in excess of federal deposit insurance limits. The Company places its cash and cash equivalents with high credit quality financial institutions whose credit ratings are monitored by management to minimize credit risk.

Investment Securities

The Company classifies its investment securities as trading, available for sale or held to maturity. Securities that are held principally for resale in the near term are classified as trading. Trading securities are carried at fair value, with realized and unrealized gains and losses included in noninterest income. Currently,

no

securities are classified as trading. Securities acquired with both the intent and ability to be held to maturity are classified as held to maturity and reported at amortized cost. All securities

not

classified as trading or held to maturity are considered available for sale. Securities available for sale are reported at estimated fair value. Unrealized gains and losses on securities available for sale are excluded from earnings and are reported, net of deferred taxes, in accumulated other comprehensive income (loss), a component of stockholders’ equity. Gains and losses from sales of securities available for sale are computed using the specific identification method. Securities available for sale includes securities which

may

be sold to meet liquidity needs arising from unanticipated deposit and loan fluctuations, changes in regulatory capital requirements, or unforeseen changes in market conditions.

The Company evaluates each held to maturity and available for sale security in a loss position for other-than-temporary impairment (“OTTI”). In estimating other-than-temporary impairment losses, management considers such factors as the length of time and the extent to which the market value has been below cost, the financial condition of the issuer and the Company’s intent to sell and whether it is more likely than

not

that the Company will be required to sell the security before anticipated recovery of the amortized cost basis. If the Company intends to sell or if it is more likely than

not

that the Company will be required to sell the security before recovery, the OTTI write-down is recognized in earnings. If the Company does

not

intend to sell the security or it is

not

more likely than

not

that it will be required to sell the security before recovery, the OTTI write-down is separated into an amount representing credit loss, which is recognized in earnings and an amount related to all other factors, which is recognized in other comprehensive income (loss).

Loans Held for Sale

Loans held for sale are classified at the lower of cost or market value, which is computed by the aggregate method. Gains and losses on loans held for sale are included in the determination of income for the period in which the sales occur.

Loans

Loans that the Company has the ability and intent to hold for the foreseeable future or until maturity are recorded at their principal amount outstanding, net of unearned interest and fees. Loan origination fees, net of certain direct origination costs, are deferred and amortized over the estimated terms of the loans using the straight-line method. Interest income on loans is recognized using the effective interest method.

A loan is considered to be delinquent when payments have

not

been made according to contractual terms, typically evidenced by nonpayment of a monthly installment by the due date.

When management believes there is sufficient doubt as to the collectability of principal or interest on any loan or generally when loans are

90

days or more past due, the accrual of applicable interest is discontinued and the loan is designated as nonaccrual, unless the loan is well secured and in the process of collection. Interest payments received on nonaccrual loans are either applied against principal or reported as income, according to management’s judgment as to the collectability of principal. Loans are returned to an accrual status when factors indicating doubtful collectability on a timely basis

no

longer exist.

Loans Modified in a Troubled Debt Restructuring (

“

TDR

”

)

Loans are considered to have been modified in a TDR when, due to a borrower’s financial difficulty, the Company makes certain concessions to the borrower that it would

not

otherwise consider for new debt with similar risk characteristics. Modifications

may

include interest rate reductions, principal or interest forgiveness, forbearance, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of the collateral. Generally, a non-accrual loan that has been modified in a TDR remains on non-accrual status for a period of

6

months to demonstrate that the borrower is able to meet the terms of the modified loan. However, performance prior to the modification, or significant events that coincide with the modification, are included in assessing whether the borrower can meet the new terms and

may

result in the loan being returned to accrual status at the time of loan modification or after a shorter performance period. If the borrower’s ability to meet the revised payment schedule is uncertain, the loan remains on non-accrual status. Once a loan is modified in a troubled debt restructuring it is accounted for as an impaired loan, regardless of its accrual status, until the loan is paid in full, sold or charged off. A TDR

may

cease being classified as impaired if the loan is subsequently modified at market terms and, has performed according to the modified terms for at least

six

months, and there has

not

been any prior principal forgiveness on a cumulative basis.

Allowance for Loan

Losses

The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the inability to collect a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance.

The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that

may

affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revisions as more information becomes available.

The allowance consists of specific, historical and general components. The specific component relates to loans that are classified as either doubtful, substandard or special mention. For such loans that are also classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan are lower than the carrying value of that loan. The historical component covers nonclassified loans and is based on historical loss experience adjusted for qualitative factors. A general component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The general component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and historical losses in the portfolio. General valuation allowances are based on internal and external qualitative risk factors such as (

1

) changes in lending policies and procedures, including changes in underwriting standards and collections, charge offs, and recovery practices, (

2

) changes in international, national, regional, and local conditions, (

3

) changes in the nature and volume of the portfolio and terms of loans, (

4

) changes in the experience, depth, and ability of lending management, (

5

) changes in the volume and severity of past due loans and other similar conditions, (

6

) changes in the quality of the organization's loan review system, (

7

) changes in the value of underlying collateral for collateral dependent loans, (

8

) the existence and effect of any concentrations of credit and changes in the levels of such concentrations, and (

9

) the effect of other external factors (i.e. competition, legal and regulatory requirements) on the level of estimated credit losses.

Loans identified as losses by management, internal loan review and/or regulatory agencies are charged off.

A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are

not

classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price or the fair value of the collateral if the loan is collateral dependent.

A significant portion of the Company’s impaired loans are deemed to be collateral dependent. Management therefore measures impairment on these loans based on the fair value of the collateral. Collateral values are determined based on appraisals performed by qualified licensed appraisers hired by the Company or by senior members of the Company’s credit administration staff. The decision whether or

not

to obtain an external

third

-party appraisal usually depends on the type of property being evaluated. External appraisals are usually obtained on more complex, income producing properties such as hotels, shopping centers and businesses. Less complex properties such as residential lots, farm land and single family houses

may

be evaluated internally by senior credit administration staff. When the Company does obtain appraisals from external

third

-parties, the values utilized in the impairment calculation are “as is” or current market values. The appraisals, whether prepared internally or externally,

may

utilize a single valuation approach or a combination of approaches including the comparable sales, income and cost approach. Appraised amounts used in the impairment calculation are typically discounted

10

percent to account for selling and marketing costs, if the repayment of the loan is to come from the sale of the collateral. Although appraisals are

not

obtained each year on all impaired loans, the collateral values used in the impairment calculations are evaluated quarterly by management. Based on management’s knowledge of the collateral and the current real estate market conditions, appraised values

may

be further discounted to reflect facts and circumstances known to management since the most recent appraisal was performed.

Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are typically significant and result in a level

3

classification of the inputs for determining fair value. Because of the high degree of judgment required in estimating the fair value of collateral underlying impaired loans and because of the relationship between fair value and general economic conditions, we consider the fair value of impaired loans to be highly sensitive to changes in market conditions.

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.

Goodwill

Goodwill represents the excess of the cost of businesses acquired over the fair value of the net assets acquired. Goodwill is assigned to reporting units and tested for impairment at least annually, or on an interim basis if an event occurs or circumstances change that would more likely than

not

reduce the fair value of the reporting unit below its carrying value.

Intangible Assets

Intangible assets consist of core deposit intangibles acquired in connection with a business combination. The core deposit intangible is initially recognized based on a valuation performed as of the consummation date. The core deposit intangible is amortized on an accelerated basis over the average remaining life of the acquired customer deposits.

Transfers of Financial Assets

Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (

1

) the assets have been isolated from the Company, (

2

) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (

3

) the Company does

not

maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

Statement of 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, interest-bearing checking accounts, savings accounts, loans and certificates of deposit are reported net.

Advertising Costs

The Company expenses the cost of advertising in the periods in which those costs are incurred.

Income Taxes

The provision for income taxes is based upon income for financial statement purposes, adjusted for nontaxable income and nondeductible expenses. Deferred income taxes have been provided when different accounting methods have been used in determining income for income tax purposes and for financial reporting purposes.

Deferred tax assets and liabilities are recognized based on future tax consequences attributable to differences arising from the financial statement carrying values of assets and liabilities and their tax bases. 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 direct write-off method for tax purposes). In the event of changes in the tax laws, deferred tax assets and liabilities are adjusted in the period of the enactment of those changes, with effects included in the income tax provision. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than

not

that some portion or all of the deferred tax assets will

not

be realized. The Company and its subsidiary file a consolidated federal income tax return. The subsidiary pays its proportional share of federal income taxes to the Company based on its taxable income.

Positions taken in the Company’s tax returns

may

be subject to challenge by the taxing authorities upon examination. Uncertain tax positions are initially recognized in the consolidated financial statements when it is more likely than

not

the position will be sustained upon examination by the tax authorities. Such tax positions are both initially and subsequently measured as the largest amount of tax benefit that is greater than

50

percent likely of being realized upon settlement with the tax authority, assuming full knowledge of the position and all relevant facts. The Company provides for interest and, in some cases, penalties on tax positions that

may

be challenged by the taxing authorities. Interest expense is recognized beginning in the

first

period that such interest would begin accruing. Penalties are recognized in the period that the Company claims the position in the tax return. Interest and penalties on income tax uncertainties are classified within income tax expense in the consolidated statement of income.

Other Real Estate

Other real estate generally represents real estate acquired through foreclosure and is initially recorded at estimated fair value at the date of acquisition less the cost of disposal. Losses from the acquisition of property in full or partial satisfaction of debt are recorded as loan losses. Properties are evaluated regularly to ensure the recorded amounts are supported by current fair values, and valuation allowances are recorded as necessary to reduce the carrying amount to fair value less estimated cost of disposal. Routine holding costs and gains or losses upon disposition are included in other noninterest expense.

Bank-Owned Life Insurance

The Company has purchased life insurance on the lives of certain key members of management and directors. The life insurance policies are recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or amounts due that are probable at settlement, if applicable. Increases in the cash surrender value are recorded as other income in the consolidated statements of income. The cash surrender value of the insurance contracts is recorded in other assets on the consolidated balance sheets in the amount of

$21,357

and

$17,598

as of

June 30, 2019

and

December 31, 2018,

respectively.

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 statements 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 (loss). Accounting standards codification requires the presentation in the consolidated financial statements of net income and all items of other comprehensive income (loss) as total comprehensive income (loss).

Off-Balance Sheet Credit Related Financial Instruments

In the ordinary course of business, the Company has entered into commitments to extend credit, commercial letters of credit and standby letters of credit. Such financial instruments are recorded when they are funded.

Changes in Accounting Principles and Effects of New Accounting Pronouncements

ASU

2016

-

02,

Leases

(Topic

842

)

.

This ASU requires lessees to put most leases on their balance sheets but recognize expenses in the income statement in a manner similar to current accounting treatment. This ASU changes the guidance on sale-leaseback transactions, initial direct costs and lease execution costs, and, for lessors, modifies the classification criteria and the accounting for sales-type and direct financing leases. For public business entities, this ASU is effective for annual periods beginning after 

December 15, 2018,

and interim periods therein. Entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. ASU

2016

-

02

was effective for the Company on

January 1, 2019.

The adoption of this standard did

not

have a material impact on the Company’s consolidated financial statements as of

June 30, 2019.

ASU

2016

-

13,

Financial Instruments – Credit Losses

(Topic

326

).

This ASU sets forth a “current expected credit loss” (CECL) model which requires the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable supported forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit exposures. This ASU is effective for fiscal years beginning after

December 15, 2019,

including interim periods within those fiscal years. The Company is currently assessing the impact of the adoption of this ASU on its consolidated financial statements. On

July 17, 2019,

FASB voted to delay the effective date of this ASU for smaller reporting companies, such as the Company, until fiscal years beginning after

December 15, 2022. 

ASU

2017

-

04,

Intangibles: Goodwill and Other: Simplifying the Test for Goodwill Impairmen

t

. ASU

2017

-

04

eliminates Step

2

from the goodwill impairment test to simplify the subsequent measurement of goodwill. The annual, or interim, goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should

not

exceed the total amount of goodwill allocated to that reporting unit. In addition, the income tax effects of tax deductible goodwill on the carrying amount of the reporting unit should be considered when measuring the goodwill impairment loss, if applicable. ASU

2017

-

04

also eliminates the requirements for any reporting unit with a

zero

or negative carrying amount to perform Step

2

of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The standard must be adopted using a prospective basis and the nature and reason for the change in accounting principle should be disclosed upon transition. ASU

2017

-

04

is effective for annual or any interim goodwill impairment tests in reporting periods beginning after

December 15, 2019.

Early adoption is permitted on testing dates after

January 1, 2017.

The Company is currently evaluating the impact this ASU will have on the Company’s Consolidated Financial Statements, but it is

not

expected to have a material impact.

ASU

2017

-

08,

Premium Amortization on Purchased Callable Debt Securities.

 This ASU shortens the amortization period for the premium on certain purchased callable debt securities to the earliest call date. Today, entities generally amortize the premium over the contractual life of the security. The new guidance does

not

change the accounting for purchased callable debt securities held at a discount; the discount continues to be amortized to maturity. ASU

No.

2017

-

08

is effective for interim and annual reporting periods beginning after 

December 15, 2018;

early adoption is permitted. The guidance calls for a modified retrospective transition approach under which a cumulative-effect adjustment will be made to retained earnings as of the beginning of the

first

reporting period in which the guidance is adopted. ASU

2017

-

08

was effective for the Company on

January 1, 2019.

The adoption of this standard did

not

have a material impact on the Company’s consolidated financial statements.

ASU

2018

-

13,

Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement (Topic

820

).

This ASU modifies the disclosure requirements on fair value measurements. ASU

2018

-

13

is effective for interim and annual reporting periods after

December 15, 2019;

early adoption is permitted. The Company is currently evaluating the provisions of ASU

2018

-

13

to determine the potential impact the new standard will have on the Company’s Consolidated Financial Statements.

ASU

2019

-

1,

Leases (Topic

842

): Codification Improvements

. ASU

2019

-

1

amends certain aspects of ASU

2016

-

02,

Leases. This ASU addresses the following issues: (

1

) determining the fair value of the underlying asset by lessors that are

not

manufacturers or dealers; (

2

) statement of cash flow presentation for sales – type and direct financing leases by lessors within the scope of ASC

942,

Financial Services – Depository and Lending; and (

3

) clarification of interim disclosure requirements during transition. ASU

2019

-

1

is effective for the

first

and

second

issues for interim and annual reporting periods beginning after

December 15, 2019;

early adoption is permitted. If an entity early adopts, the ASU will be applied as of the date the entity

first

applies ASU

2016

-

02.

For the

third

issue, there is

no

transition and effective date because the amendments are to the original transition requirements in ASU

2016

-

02.

The Company is currently evaluating the impact this ASU will have on the Company’s Consolidated Financial Statements, but it is

not

expected to have a material impact.

ASU

2019

-

04,

Codification Improvements to Financial Instruments – Credit Losses (Topic

326

),

Derivatives and Hedging (Topic

815

) and Financial Instruments (Topic

825

)

. ASU

2019

-

4

clarifies certain aspects of ASU

2016

-

13,

Financial Instruments – Credit Losses; ASU

2017

-

12,

Hedging Activities; and ASU

2016

-

1,

Financial Instruments. For amendments dealing with ASU

2016

-

13,

which is currently the only standard of the

three

listed in this update that would apply for the Company, it addresses accrued interest with a financing receivable or investment; transfers between classifications or categories for loans and debt securities; the inclusion of recoveries on financial assets in the calculation of the current expected credit losses allowance for both pools of financial assets and individual financial assets. These amendments dealing with ASU

2016

-

13

are effective on the same date as the effective date in ASU

2016

-

13.

The Company is currently assessing the impact of the adoption of this ASU on its consolidated financial statements.

XML

Note 2 - Business Acquisitions

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Business Combination Disclosure [Text Block]

(

2

) Business Acquisition

s

Acquisition of Albany, Georgia Branch from Planters First Bank

On

October 22, 2018,

the Bank completed its acquisition of

one

branch office and a vacant lot from Planters First Bank (“PFB”) located in Albany, Georgia for a total cash consideration of

$10.2

million. The assets and liabilities as of the effective date of the transaction were recorded at their respective estimated fair values. The excess of the purchase price over the net estimated fair values of the acquired assets and liabilities was allocated to identifiable intangible assets with the remaining excess allocated to goodwill. In the periods following the acquisition, the financial statements will include the results attributable to the Albany branch purchase beginning on the date of purchase. For the

three

and

six

months period ended

June 30, 2019,

the revenues attributable to the Albany branch were

$58

thousand and

$129

thousand, respectively. For the

three

and

six

months period ended

June 30, 2019,

net loss attributable to the Albany branch were

$85

thousand and

$159

thousand. It is impracticable to determine the pro-forma impact to the

2018

revenues and net income if the acquisition had occurred on

January 1, 2018

as the Bank does

not

have access to those records for a single branch.

The following table provides the purchase price as of acquisition date, the identifiable assets acquired and liabilities assumed at their estimated fair values, and the resulting goodwill of

$202

thousand recorded from the acquisition:

Purchase Price Consideration (in thousands) :
Cash Consideration	$	10,238
Total purchase price for PFB branch acquisition	$	10,238
Assets acquired at fair value:
Cash and cash equivalents	$	195
Loans		20,430
Premises and equipment		773
Core deposit intangible		560
Other assets		123
Total fair value of assets acquired	$	22,081
Liabilities assumed at fair value:
Deposits	$	12,032
Other liabilities		13
Total fair value of liabilities assumed	$	12,045
Net Assets acquired at fair value:	$	10,036
Amount of goodwill resulting from acquisition	$	202

The total amount of goodwill arising from this transaction of

$202

thousand is deductible for tax purposes, pursuant to section

197

of the Internal Revenue Code.

The Bank recorded all loans acquired at the estimated fair value on the purchase date with

no

carryover of the related allowance for loan losses. The Bank only acquired loans which were deemed to be performing loans with

no

signs of credit deterioration.

Acquisition of LBC Bancshares, Inc.

On

May 1, 2019,

the Company completed its acquisition of LBC Bancshares, Inc. (“LBC”), a bank holding company headquartered in LaGrange, Georgia. Upon consummation of the acquisition, LBC was merged with and into the Company, with Colony as the surviving entity in the merger. At that time, LBC’s wholly owned bank subsidiary, Calumet Bank, was also merged with and into the Bank. The acquisition expanded the Company’s market presence, as Calumet Bank had

two

full-service banking locations,

one

each in LaGrange, Georgia and Columbus, Georgia, as well as a loan production office in Atlanta, Georgia. Under the terms of the Merger Agreement, each LBC shareholder had the option to receive either

$23.50

in cash or

1.3239

shares of the Company’s Common Stock in exchange for each share of LBC common stock, subject to customary proration and location procedures, such that

55

percent of LBC shares received the stock consideration and

45

percent received the cash consideration, and at least

50

percent of the merger consideration paid in the Company stock. As a result, the Company issued

1,054,029

common shares at a fair value of

$18.7

million and paid

$15.3

million in cash to the former shareholders of LBC as merger consideration.

The merger is being accounted for using the acquisition method accounting, in accordance with the provisions of FASB ASC

805

-

10

Business Combinations. Under this guidance, for accounting purposes, the Company is considered the acquirer in the merger, and as a result the historical financial statements of the combined entity are the historical consolidated financial statements of the Company.

The merger was effected by the issuance of shares of the Company’s common stock along with cash consideration to shareholders to LBC. The assets and liabilities of LBC as of the effective date of the merger were recorded at their respective estimated fair values and combined with those of the Company. The excess of the purchase price over the net estimated fair values of the acquired assets and liabilities was allocated to identifiable intangible assets with the remaining excess allocated to goodwill. Goodwill from the transaction was

$15,390,

none

of which is deductible for income tax purposes. The goodwill recognized from the acquisition with LBC was created based on the consideration paid by the Company for enhancing its presence in Georgia in addition to our expected synergies from the combined operations of the Company and LBC.

In periods following the merger, the financial statements of the combined entity will include the results attributable to LBC beginning on the date the merger was completed. In the

three

and

six

month period ended

June 30, 2019,

the revenues attributable to LBC were approximately

$1.77

million and

$1.77

million. In the

three

and

six

month period ended

June 30, 2019,

the net income attributable to LBC was approximately

$501

thousand and

$501

thousand, respectively.

The pro-forma impact to

2018

revenues if the merger had occurred on

January 1, 2018

would have been

$2.35

million and

$4.61

million for the

three

and

six

month period ending

June 30, 2018,

respectively. The pro-forma impact to

2018

net income if the merger had occurred on

December 31, 2017

would have been

$610

thousand and

$1.15

million for the

three

and

six

month period ending

June 30, 2018,

respectively. While certain adjustments were made for the estimated impact of certain fair value adjustments, they are

not

indicative of what would have occurred had the merger taken place on the indicated date nor are they intended to represent or be indicative of future results of operations. In particular,

no

adjustments have been made to eliminate the amount of LBC’s provision for credit losses

not

have been necessary or any adjustments to estimate any additional income that would have been recorded as a result of fair value adjustments for the

first

six

months of

2018

that

may

have occurred had the acquired loans been recorded at fair value as of the beginning of

2018.

In addition, there are

no

adjustments to reflect any expenses that potentially could have been reduced for the

first

six

months of

2018

had the merger occurred on

January 1, 2018.

As of

June 30, 2019,

the Company recorded a preliminary allocation of the purchase price to LBC’s tangible and identifiable intangible assets acquired and liabilities assumed based on estimated fair values as of

May 1, 2019.

The following table presents the assets acquired and liabilities assumed as of

May 1, 2019,

and their fair value estimates. The Company continues its evaluation of the facts and circumstances available as of

May 1, 2019,

to assign fair values to assets acquired and liabilities assumed which could result in further adjustments to the fair values presented below.

Purchase Price Consideration (in thousands):
Shares of CBAN Common Stock Issued to LBC Shareholders as of May 1, 2019		1,054,029
Market Price of CBAN Common Stock on May 1, 2019	$	17.75
Estimated Fair Value of CBAN Common Stock Issued		18,709
Cash Consideration Paid		15,312
Total Consideration	$	34,021
Assets acquired at fair value:
Cash and Cash Equivalents	$	15,678
Investments Securities Available for Sale		49,172
Investments Securities Held to Maturity		1,766
Restricted Investments		479
Loans		130,568
Premises and Equipment		3,009
Core Deposit Intangible		3,100
Other Real Owned		243
Prepaid and Other Assets		6,487
Total Fair Value of Assets Acquired	$	210,502
Liabilities Assumed at Fair Value:
Deposits	$	(189,896	)
FHLB Advances		(1,000	)
Payables and Other Liabilities		(975	)
Total Fair Value of Liabilities Assumed	$	(191,871	)
Net Assets Acquired at Fair Value:	$	18,631
Amount of Goodwill Resulting From Acquisition	$	15,390

In the acquisition, the Company purchased

$130.57

million of loans at fair value, net of

$2.17

million, or

1.63%,

estimated discount to the outstanding principal balance. Of the total loans acquired, management identified

$176

thousand that were considered to be credit impaired and are accounted for under ASC Topic

310

-

30.

The table below summarizes the total contractually required principal and interest cash payments, management’s estimate of expected total cash payments and fair value of the loans as of the acquisition date for purchased credit impaired loans. Contractually required principal and interest payments have been adjusted for estimated prepayments.

Contractually Required Principal and Interest	$	695
Non-accretable Difference		(519	)
Cash Flows Expected to be Collected		176
Accretable Yield		-
Total Purchased Credit-Impaired Loans Acquired	$	176

The following table presents the acquired loan data for the LBC acquisition.

	Fair Value of Acquired Loans at Acquisition Date		Gross Contractual Amounts Receivable at Acquisition Date		Estimate at Acquisition Date of Contractual Cash Flows Not Expected to  be Collected
Acquired receivables subject to ASC 310-30	$	176	$	695	$	519
Acquired receivables not subject to ASC 310-30	$	130,392	$	132,381	$	-

Acquisition of PFB Mortgage from Planters First Bank

On

May 1, 2019,

the Bank completed its acquisition of PFB Mortgage, the secondary market mortgage business of Planters First Bank for a total cash consideration of

$833

thousand. It included fixed assets and all pipeline loans, and customers will

not

be affected as loans will close and be processed as normal. Planters First Bank retained closed loans

not

yet sold (loans held for sale). The assets and liabilities as of the effective date of the transaction were recorded at their respective estimated fair values. The excess of the purchase price over the net estimated fair values of the acquired assets and liabilities was allocated to identifiable intangible assets with the remaining excess allocated to goodwill. In the periods following the acquisition, the financial statements will include the results attributable to PFB Mortgage beginning on the date of purchase. For the

three

and

six

months period ended

June 30, 2019,

the revenues attributable to PFB Mortgage were

$228

thousand and

$228

thousand, respectively. For the

three

and

six

months period ended

June 30, 2019,

net loss attributable to PFB Mortgage were

$211

thousand and

$211

thousand. It is impracticable to determine the pro-forma impact to the

2018

revenues and net income if the acquisition had occurred on

January 1, 2018

as the Bank does

not

have access to those records for PFB Mortgage.

The following table provides the purchase price as of acquisition date, the identifiable assets acquired and liabilities assumed at their estimated fair values, and the resulting goodwill of

$541

thousand recorded from the acquisition:

Purchase Price Consideration (in thousands):
Cash Consideration Paid	$	833
Total Consideration	$	833
Assets acquired at fair value:
Premises and Equipment	$	78
Premium on Loan Commitments		209
Other Assets		5
Total Fair Value of Assets Acquired	$	292
Liabilities Assumed at Fair Value:
Total Fair Value of Liabilities Assumed	$	-
Net Assets Acquired at Fair Value:	$	292
Amount of Goodwill Resulting From Acquisition	$	541

The total amount of goodwill arising from this transaction of

$541

thousand is deductible for tax purposes, pursuant to section

197

of the Internal Revenue Code.

XML

Note 3 - Investment Securities

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

(

3

) Investment Securities

Investment securities as of

June 30, 2019

and

December 31, 2018

are summarized as follows:

June 30, 2019	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Securities Available for Sale:
U. S. Government Agencies Mortgage-Backed	$	403,165	$	3,406	$	(3,163	)	$	403,408
State, County & Municipal		3,511		63		-			3,574
Corporate Bonds		2,870		-		(13	)		2,857
	$	409,546	$	3,469	$	(3,176	)	$	409,839

December 31, 2018	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Securities Available for Sale:
U. S. Government Agencies Mortgage-Backed	$	356,498	$	303	$	(10,596	)	$	346,205
State, County & Municipal		4,008		18		(37	)		3,989
Corporate Bonds		2,927		-		(55	)		2,872
	$	363,433	$	321	$	(10,688	)	$	353,066

The amortized cost and fair value of investment securities as of

June 30, 2019,

by contractual maturity, are shown hereafter. Expected maturities

may

differ from contractual maturities for certain investments because issuers

may

have the right to call or prepay obligations with or without call or prepayment penalties. This is often the case with mortgage-backed securities, which are disclosed separately in the table below.

	Securities
	Available for Sale
	Amortized Cost		Fair Value
Due In One Year or Less	$	-	$	-
Due After One Year Through Five Years		4,142		4,147
Due After Five Years Through Ten Years		1,135		1,167
Due After Ten Years		1,104		1,117
	$	6,381	$	6,431
Mortgage-Backed Securities		403,165		403,408
	$	409,546	$	409,839

Proceeds from the sale of investments available for sale totaled

$56,920

and

$11,268

for the

first

six

months of

2019

and

2018,

respectively. The sale of investments available for sale during the

first

six

months of

2019

resulted in gross realized gains

$117

and losses of

$52.

The sale of investments available for sale during the

first

six

months of

2018

resulted in gross realized gains of

$116

and losses of

$0.

Proceeds from the sale of investments held to maturity totaled

$1,766

for the

first

six

months of

2019.

The sale of investments held to maturity during the

first

six

months of

2019

resulted in gross realized gains of

$0

and losses of

$0.

The Bank did

not

sell any investments held to maturity during the

first

six

months of

2018.

Therefore, the Bank did

not

have any proceeds, gains or losses during the

first

six

months of

2018.

Investment securities having a carrying value approximating

$169,821

and

$178,978

as of

June 30, 2019

and

December 31, 2018,

respectively, were pledged to secure public deposits and for other purposes.

Information pertaining to securities with gross unrealized losses at

June 30, 2019

and

December 31, 2018

aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows:

	Less Than 12 Months					12 Months or Greater					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
June 30, 2019
U. S. Government Agencies Mortgage-Backed	$	9,891	$	(19	)	$	182,244	$	(3,144	)	$	192,135	$	(3,163	)
State, County and Municipal		-		-			-		-			-		-
Corporate Bonds		2,015		(6	)		842		(7	)		2,857		(13	)
	$	11,906	$	(25	)	$	183,086	$	(3,151	)	$	194,992	$	(3,176	)
December 31. 2018
U.S. Government Agencies Mortgage-Backed	$	39,083	$	(504	)	$	255,747	$	(10,092	)	$	294,830	$	(10,596	)
State, County and Municipal		612		(3	)		1,882		(34	)		2,494		(37	)
Corporate Bonds		2,009		(21	)		863		(34	)		2,872		(55	)
	$	41,704	$	(528	)	$	258,492	$	(10,160	)	$	300,196	$	(10,688	)

Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (

1

) the length of time and the extent to which the fair value has been less than cost, (

2

) the financial condition and near-term prospects of the issuer and (

3

) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.

At

June 30, 2019,

103

securities have unrealized losses which have depreciated

1.60

percent from the Company’s amortized cost basis. These securities are guaranteed by either the U.S. Government, other governments or U.S. corporations. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred and the results of reviews of the issuer’s financial condition. The unrealized losses are largely due to increases in market interest rates over the yields available at the time the underlying securities were purchased. As management has the ability to hold debt securities until maturity, or for the foreseeable future if classified as available-for-sale,

no

declines are deemed to be other than temporary.

XML

Note 4 - Loans

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

(

4

)

Loans

The following table presents the composition of loans segregated by legacy and purchased loans and by class of loans, as of

June 30, 2019

and

December 31, 2018.

Purchased loans are defined as loans that were acquired in bank acquisitions.

	June 30, 2019
	Legacy Loans		Purchased Loans		Total
Commercial and Agricultural
Commercial	$	43,561	$	24,974	$	68,535
Agricultural		18,561		300		18,861
Real Estate
Commercial Construction		60,949		12,029		72,978
Residential Construction		13,193		5,429		18,622
Commercial		376,063		57,753		433,816
Residential		177,183		28,005		205,188
Farmland		70,413		3,859		74,272
Consumer and Other
Consumer		17,860		5,206		23,066
Other		18,262		1,671		19,933
Total Loans	$	796,045	$	139,226	$	935,271

	December 31, 2018
	Legacy Loans		Purchased Loans		Total
Commercial and Agricultural
Commercial	$	50,181	$	7,229	$	57,410
Agricultural		15,993		806		16,799
Real Estate
Commercial Construction		46,609		1,240		47,849
Residential Construction		12,242		258		12,500
Commercial		366,792		6,742		373,534
Residential		185,699		2,015		187,714
Farmland		62,674		35		62,709
Consumer and Other
Consumer		18,423		62		18,485
Other		5,027		-		5,027
Total Loans	$	763,640	$	18,387	$	782,027

Commercial and industrial loans are extended to a diverse group of businesses within the Company’s market area. These loans are often underwritten based on the borrower’s ability to service the debt from income from the business. Real estate construction loans often require loan funds to be advanced prior to completion of the project. Due to uncertainties inherent in estimating construction costs, changes in interest rates and other economic conditions, these loans often pose a higher risk than other types of loans. Consumer loans are originated at the Bank level. These loans are generally smaller loan amounts spread across many individual borrowers to help minimize risk.

Credit Quality Indicators

. As part of the ongoing monitoring of the credit quality of the loan portfolio, management tracks certain credit quality indicators including trends related to (i) the risk grade assigned to commercial and consumer loans, (ii) the level of classified commercial loans, (iii) net charge-offs, (iv) nonperforming loans, and (v) the general economic conditions in the Company’s geographic markets.

The Company uses a risk grading matrix to assign a risk grade to each of its loans. Loans are graded on a scale of

1

to

8.

A description of the general characteristics of the grades is as follows:

● Grades 1 and 2 – Borrowers with these assigned grades range in risk from virtual absence of risk to minimal risk. Such loans may be secured by Company-issued and controlled certificates of deposit or properly margined equity securities or bonds. Other loans comprising these grades are made to companies that have been in existence for a long period of time with many years of consecutive profits and strong equity, good liquidity, excellent debt service ability and unblemished past performance, or to exceptionally strong individuals with collateral of unquestioned value that fully secures the loans. Loans in this category fall into the “pass” classification.

● Grades 3 and 4 – Loans assigned these “pass” risk grades are made to borrowers with acceptable credit quality and risk. The risk ranges from loans with no significant weaknesses in repayment capacity and collateral protection to acceptable loans with one or more risk factors considered to be more than average.

● Grade 5 – This grade includes “special mention” loans on management’s watch list and is intended to be used on a temporary basis for pass grade loans where risk-modifying action is intended in the short-term.

● Grade 6 – This grade includes “substandard” loans in accordance with regulatory guidelines. This category includes borrowers with well-defined weaknesses that jeopardize the payment of the debt in accordance with the agreed terms. Loans considered to be impaired are assigned this grade, and these loans often have assigned loss allocations as part of the allowance for loan and lease losses. Generally, loans on which interest accrual has been stopped would be included in this grade.

● Grades 7 and 8 – These grades correspond to regulatory classification definitions of “doubtful” and “loss,” respectively. In practice, any loan with these grades would be for a very short period of time, and generally the Company has no loans with these assigned grades. Management manages the Company’s problem loans in such a way that uncollectible loans or uncollectible portions of loans are charged off immediately with any residual, collectible amounts assigned a risk grade of 6.

The following table presents the loan portfolio, excluding purchased loans, by credit quality indicator (risk grade) as of

June 30, 2019

and

December 31, 2018.

Those loans with a risk grade of

1,

2,

3

or

4

have been combined in the pass column for presentation purposes. For the period ending

June 30, 2019,

the Company did

not

have any loans classified as “doubtful” or a “loss”.

	Pass		Special Mention		Substandard		Total Loans
June 30, 2019
Commercial and Agricultural
Commercial	$	41,376	$	1,471	$	714	$	43,561
Agricultural		16,050		1,137		1,374		18,561
Real Estate
Commercial Construction		60,546		117		286		60,949
Residential Construction		12,839		-		354		13,193
Commercial		360,806		8,048		7,209		376,063
Residential		162,927		4,015		10,241		177,183
Farmland		64,519		3,000		2,894		70,413
Consumer and Other
Consumer		17,550		84		226		17,860
Other		18,262		-		-		18,262
Total Loans	$	754,875	$	17,872	$	23,298	$	796,045
December 31, 2018
Commercial and Agricultural
Commercial	$	48,579	$	729	$	873	$	50,181
Agricultural		14,858		637		498		15,993
Real Estate
Commercial Construction		45,847		45		717		46,609
Residential Construction		12,242		-		-		12,242
Commercial		351,397		7,662		7,733		366,792
Residential		168,035		7,107		10,557		185,699
Farmland		58,678		1,912		2,084		62,674
Consumer and Other
Consumer		18,042		59		322		18,423
Other		5,018		5		4		5,027
Total Loans	$	722,696	$	18,156	$	22,788	$	763,640

The following table presents the purchased loan portfolio by credit quality indicator (risk grade) as of

June 30, 2019

and

December 31, 2018.

Those loans with a risk grade of

1,

2,

3

or

4

have been combined in the pass column for presentation purposes. For the period ending

June 30, 2019,

the Company did

not

have any loans classified as “doubtful” or a “loss”.

	Pass		Special Mention		Substandard		Total Loans
June 30, 2019
Commercial and Agricultural
Commercial	$	24,632	$	121	$	221	$	24,974
Agricultural		300		-		-		300
Real Estate
Commercial Construction		11,960		-		69		12,029
Residential Construction		5,429		-		-		5,429
Commercial		57,364		389		-		57,753
Residential		27,682		298		25		28,005
Farmland		3,820		-		39		3,859
Consumer and Other
Consumer		5,202		-		4		5,206
Other		1,671		-		-		1,671
Total Loans	$	138,060	$	808	$	358	$	139,226
December 31, 2018
Commercial and Agricultural
Commercial	$	7,229	$	-	$	-	$	7,229
Agricultural		806		-		-		806
Real Estate
Commercial Construction		1,240		-		-		1,240
Residential Construction		258		-		-		258
Commercial		6,742		-		-		6,742
Residential		2,015		-		-		2,015
Farmland		35		-		-		35
Consumer and Other
Consumer		62		-		-		62
Other		-		-		-		-
Total Loans	$	18,387	$	-	$	-	$	18,387

A loan’s risk grade is assigned at the inception of the loan and is based on the financial strength of the borrower and the type of collateral. Loan risk grades are subject to reassessment at various times throughout the year as part of the Company’s ongoing loan review process. Loans with an assigned risk grade of

6

or below and an outstanding balance of

$250,000

or more are reassessed on a quarterly basis. During this reassessment process individual reserves

may

be identified and placed against certain loans which are

not

considered impaired.

In assessing the overall economic condition of the markets in which it operates, the Company monitors the unemployment rates for its major service areas. The unemployment rates are reviewed on a quarterly basis as part of the allowance for loan loss determination.

Loans are considered past due if the required principal and interest payments have

not

been received as of the date such payments were due. Generally, loans are placed on nonaccrual status if principal or interest payments become

90

days past due or when, in management’s opinion, the borrower

may

be unable to meet payment obligations as they become due, as well as when required by regulatory provision. Loans

may

be placed on nonaccrual status regardless of whether or

not

such loans are considered past due.

The following table represents an age analysis of past due loans and nonaccrual loans for legacy loans, segregated by class of loans, excluding purchased loans as of

June 30, 2019

and

December 31, 2018:

	Accruing Loans
			90 Days
	30-89 Days		or More		Total Accruing		Nonaccrual
	Past Due		Past Due		Loans Past Due		Loans		Current Loans		Total Loans
June 30, 2019
Commercial and Agricultural
Commercial	$	365	$	-	$	365	$	442	$	42,754	$	43,561
Agricultural		-		-		-		1,304		17,257		18,561
Real Estate
Commercial Construction		123		-		123		36		60,790		60,949
Residential Construction		-		-		-		354		12,839		13,193
Commercial		822		-		822		1,849		373,392		376,063
Residential		2,276		-		2,276		2,786		172,121		177,183
Farmland		139		-		139		2,669		67,605		70,413
Consumer and Other
Consumer		61		2		63		131		17,666		17,860
Other		-		-		-		-		18,262		18,262
Total Loans	$	3,786	$	2	$	3,788	$	9,571	$	782,686	$	796,045
December 31, 2018
Commercial and Agricultural
Commercial	$	282	$	-	$	282	$	637	$	49,262	$	50,181
Agricultural		117		-		117		413		15,463		15,993
Real Estate
Commercial Construction		88		-		88		463		46,058		46,609
Residential Construction		-		-		-		-		12,242		12,242
Commercial		679		-		679		2,966		363,147		366,792
Residential		6,882		-		6,882		2,734		176,083		185,699
Farmland		76		-		76		2,052		60,546		62,674
Consumer and Other
Consumer		110		-		110		213		18,100		18,423
Other		-		-		-		4		5,023		5,027
Total Loans	$	8,234	$	-	$	8,234	$	9,482	$	745,924	$	763,640

The following table represents an age analysis of past due loans and nonaccrual loans, segregated by class of loans, for purchased loans as of

June 30, 2019

and

December 31, 2018:

	Accruing Loans
			90 Days
	30-89 Days		or More		Total Accruing		Nonaccrual
	Past Due		Past Due		Loans Past Due		Loans		Current Loans		Total Loans
June 30, 2019
Commercial and Agricultural
Commercial	$	178	$	-	$	178	$	43	$	24,753	$	24,974
Agricultural		-		-		-		-		300		300
Real Estate
Commercial Construction		-		-		-		69		11,960		12,029
Residential Construction		-		-		-		-		5,429		5,429
Commercial		-		-		-		-		57,753		57,753
Residential		9		-		9		25		27,971		28,005
Farmland		-		-		-		39		3,820		3,859
Consumer and Other
Consumer		16		-		16		4		5,186		5,206
Other		-		-		-		-		1,671		1,671
Total Loans	$	203	$	-	$	203	$	180	$	138,843	$	139,226
December 31, 2018
Commercial and Agricultural
Commercial	$	-	$	-	$	-	$	-	$	7,229	$	7,229
Agricultural		-		-		-		-		806		806
Real Estate
Commercial Construction		-		-		-		-		1,240		1,240
Residential Construction		-		-		-		-		258		258
Commercial		-		-		-		-		6,742		6,742
Residential		-		-		-		-		2,015		2,015
Farmland		-		-		-		-		35		35
Consumer and Other
Consumer		-		-		-		-		62		62
Other		-		-		-		-		-		-
Total Loans	$	-	$	-	$	-	$	-	$	18,387	$	18,387

The following table details impaired loan data, including purchased credit impaired loans, as of

June 30, 2019.

June 30, 2019
	Unpaid
	Contractual						Average		Interest			Interest
	Principal		Impaired		Related		Recorded		Income			Income
	Balance		Balance		Allowance		Investment		Recognized			Collected
With No Related Allowance Recorded
Commercial	$	442	$	442	$	-	$	525	$	15		$	16
Agricultural		736		716		-		544		9			21
Commercial Construction		104		104		-		115		3			3
Residential Construction		354		354		-		118		4			4
Commercial Real Estate		12,372		11,504		-		12,341		291			293
Residential Real Estate		3,872		3,849		-		3,979		83			98
Farmland		2,670		2,668		-		2,246		(25	)		17
Consumer		132		132		-		159		3			4
Other		-		-		-		2		-			-
		20,682		19,769		-		20,029		383			456
With An Allowance Recorded
Commercial		-		-		-		14		-			-
Agricultural		588		588		588		196		9			33
Commercial Construction		-		-		-		133		-			-
Residential Construction		-		-		-		-		-			-
Commercial Real Estate		3,031		3,031		897		2,902		61			62
Residential Real Estate		267		267		49		270		11			11
Farmland		359		359		32		361		13			12
Consumer		-		-		-		-		-			-
Other		-		-		-		-		-			-
		4,245		4,245		1,566		3,876		94			118
Purchased Credit Impaired Loans
Commercial		68		42		-		14		-			-
Commercial Construction		122		69		-		23		-			-
Residential Real Estate		23		14		-		5		-			-
Farmland		237		40		-		13		-			-
Consumer		195		-		-		-		-			-
		645		165		-		55		-			-
Total
Commercial		510		484		-		553		15			16
Agricultural		1,324		1,304		588		740		18			54
Commercial Construction		226		173		-		271		3			3
Residential Construction		354		354		-		118		4			4
Commercial Real Estate		15,403		14,535		897		15,243		352			355
Residential Real Estate		4,162		4,130		49		4,254		94			109
Farmland		3,266		3,067		32		2,620		(12	)		29
Consumer		327		132		-		159		3			4
Other		-		-		-		2		-			-
	$	25,572	$	24,179	$	1,566	$	23,960	$	477		$	574

The following table details impaired loan data as of

December 31, 2018.

There were

no

purchased credit impaired loans and related allowance for loan losses as of

December 31, 2018.

December 31, 2018
	Unpaid
	Contractual						Average		Interest		Interest
	Principal		Impaired		Related		Recorded		Income		Income
	Balance		Balance		Allowance		Investment		Recognized		Collected
With No Related Allowance Recorded
Commercial	$	595	$	595	$	-	$	526	$	21	$	24
Agricultural		434		413		-		383		18		25
Commercial Construction		132		132		-		69		8		8
Residential Contruction		-		-				-		-		-
Commercial Real Estate		12,164		12,164		-		11,040		582		583
Residential Real Estate		4,214		4,130		-		4,067		208		213
Farmland		2,054		2,052		-		1,361		53		82
Consumer		213		213		-		197		14		14
Other		4		4		-		1		-		-
		19,810		19,703		-		17,644		904		949
With An Allowance Recorded
Commercial		42		42		6		8		2		2
Agricultural		-		-		-		-		-		-
Commercial Construction		399		399		39		466		-		-
Residential Contruction		-		-		-		-		-		-
Commercial Real Estate		3,691		3,691		1,276		5,121		135		142
Residential Real Estate		274		274		61		98		8		8
Farmland		364		364		36		368		24		25
Consumer		-		-		-		-		-		-
Other		-		-		-		-		-		-
		4,770		4,770		1,418		6,061		169		177
Total
Commercial		637		637		6		534		23		26
Agricultural		434		413		-		383		18		25
Commercial Construction		531		531		39		535		8		8
Residential Contruction		-		-		-		-		-		-
Commercial Real Estate		15,855		15,855		1,276		16,161		717		725
Residential Real Estate		4,488		4,404		61		4,165		216		221
Farmland		2,418		2,416		36		1,729		77		107
Consumer		213		213		-		197		14		14
Other		4		4		-		1		-		-
	$	24,580	$	24,473	$	1,418	$	23,705	$	1,073	$	1,126

The following table details impaired loan data as of

June 30, 2018.

There were

no

purchased credit impaired loans and related allowance for loan losses as of

June 30, 2018.

June 30, 2018
	Unpaid
	Contractual						Average		Interest		Interest
	Principal		Impaired		Related		Recorded		Income		Income
	Balance		Balance		Allowance		Investment		Recognized		Collected
With No Related Allowance Recorded
Commercial	$	367	$	367	$	-	$	520	$	5	$	5
Agricultural		311		290		-		360		9		12
Commercial Construction		16		16		-		38		1		1
Residential Contruction		-		-		-		-		-		-
Commercial Real Estate		10,201		10,201		-		11,092		235		236
Residential Real Estate		3,892		3,805		-		4,113		87		89
Farmland		980		978		-		896		5		7
Consumer		200		200		-		199		6		6
Other		-		-		-		-		-		-
		15,967		15,857		-		17,218		348		356
With An Allowance Recorded
Commercial		-		-		-		-		-		-
Agricultural		-		-		-		-		-		-
Commercial Construction		482		482		54		487		2		2
Residential Contruction		-		-		-		-		-		-
Commercial Real Estate		5,047		5,047		1,371		5,371		106		99
Residential Real Estate		36		36		21		60		1		1
Farmland		367		367		28		369		12		12
Consumer		-		-		-		-		-		-
Other		-		-		-		-		-		-
		5,932		5,932		1,474		6,287		121		114
Total
Commercial		367		367		-		520		5		5
Agricultural		311		290		-		360		9		12
Commercial Construction		498		498		54		525		3		3
Residential Contruction		-		-		-		-		-		-
Commercial Real Estate		15,248		15,248		1,371		16,463		341		335
Residential Real Estate		3,928		3,841		21		4,173		88		90
Farmland		1,347		1,345		28		1,265		17		19
Consumer		200		200		-		199		6		6
Other		-		-		-		-		-		-
	$	21,899	$	21,789	$	1,474	$	23,505	$	469	$	470

TDRs are troubled loans on which the original terms of the loan have been modified in favor of the borrower due to deterioration in the borrower’s financial condition. Each potential loan modification is reviewed individually and the terms of the loan are modified to meet the borrower’s specific circumstances at a point in time.

Not

all loan modifications are TDRs. Loan modifications are reviewed and approved by the Company’s senior lending staff, who then determine whether the loan meets the criteria for a TDR. Generally, the types of concessions granted to borrowers that are evaluated in determining whether a loan is classified as a TDR include:

● Interest rate reductions – Occur when the stated interest rate is reduced to a nonmarket rate or a rate the borrower would not be able to obtain elsewhere under similar circumstances.

● Amortization or maturity date changes – Result when the amortization period of the loan is extended beyond what is considered a normal amortization period for loans of similar type with similar collateral.

● Principal reductions – These are often the result of commercial real estate loan workouts where two new notes are created. The primary note is underwritten based upon our normal underwriting standards and is structured so that the projected cash flows are sufficient to repay the contractual principal and interest of the newly restructured note. The terms of the secondary note vary by situation and often involve that note being charged-off, or the principal and interest payments being deferred until after the primary note has been repaid. In situations where a portion of the note is charged-off during modification there is often no specific reserve allocated to those loans. This is due to the fact that the amount of the charge-off usually represents the excess of the original loan balance over the collateral value and the Company has determined there is no additional exposure on those loans.

As discussed in Note

1,

Summary of Significant Accounting Policies, once a loan is identified as a TDR, it is accounted for as an impaired loan. The Company had

no

unfunded commitments to lend to a customer that has a troubled debt restructured loan as of

June 30, 2019.

The Company had

no

loan contracts restructured during the

three

month period ended and the

six

month period ended

June 30, 2019

and

2018.

Loans modified in a troubled debt restructuring are considered to be in default once the loan becomes

90

days past due. A TDR

may

cease being classified as impaired if the loan is subsequently modified at market terms and, has performed according to the modified terms for at least

six

months, and there has

not

been any prior principal forgiveness on a cumulative basis.

The Company had

no

loans that subsequently defaulted during the

three

months ended

June 30, 2019

and

2018,

respectively. The Company had

no

loans that subsequently defaulted during the

six

months ended

June 30, 2019

and

one

loan that subsequently defaulted during the

six

months ended

June 30, 2018.

The loan totaling

$131

thousand failed to continue to perform as agreed and was moved to non-accrual status.

XML

Note 5 - Allowance for Loan Losses

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Allowance for Credit Losses [Text Block]

(

5

) Allowance for Loan Losses

The following tables detail activity in the allowance for loan losses, segregated by class of loan, for the

six

month period ended

June 30, 2019

and

June 30, 2018.

Allocation of a portion of the allowance to

one

category of loans does

not

preclude its availability to absorb losses in other loan categories and periodically

may

result in reallocation within the provision categories.

June 30, 2019
	Beginning										Ending
	Balance		Charge-Offs			Recoveries		Provision			Balance
Commercial and Agricultural
Commercial	$	370	$	(125	)	$	16	$	122		$	383
Agricultural		248		-			1		789			1,038
Real Estate
Commercial Construction		115		(29	)		54		(130	)		10
Residential Construction		16		-			-		(14	)		2
Commercial		4,549		(56	)		38		(790	)		3,741
Residential		1,181		(647	)		159		152			845
Farmland		702		(63	)		3		47			689
Consumer and Other
Consumer		86		(179	)		27		129			63
Other		10		-			3		5			18
	$	7,277	$	(1,099	)	$	301	$	310		$	6,789

June 30, 2018
	Beginning										Ending
	Balance		Charge-Offs			Recoveries		Provision			Balance
Commercial and Agricultural
Commercial	$	447	$	(116	)	$	85	$	28		$	444
Agricultural		186		(123	)		7		192			262
Real Estate
Commercial Construction		1,216		-			38		(1,172	)		82
Residential Construction		-		-			-		-			-
Commercial		3,874		(258	)		37		753			4,406
Residential		968		(89	)		75		112			1,066
Farmland		780		-			9		79			868
Consumer and Other
Consumer		34		(135	)		49		82			30
Other		3		-			2		(4	)		1
	$	7,508	$	(721	)	$	302	$	70		$	7,159

Management continually evaluates the allowance for loan losses methodology seeking to refine and enhance this process as appropriate, and it is likely that the methodology will continue to evolve over time.

Part I (Continued)

Item

1

(Continued)

(

5

) Allowance for Loan Losses

(Continued)

The Company determines its individual reserves during its quarterly review of substandard loans. This process involves reviewing all loans with a risk grade of

6

or greater and an outstanding balance of

$250,000

or more, regardless of the loans impairment classification. At

June 30, 2019,

there were

123

impaired loans totaling

$3.8

million below the

$250,000

review threshold which were

not

individually reviewed for impairment. Those loans were subject to the bank’s general loan loss reserve methodology and are included in the “Collectively Evaluated for Impairment” column of the following tables. Likewise, at

June 30, 2018,

there were

125

impaired loans totaling

$3.1

million which were below the

$250,000

review threshold and were subject to the bank’s general loan loss reserve methodology and are included in the “Collectively Evaluated for Impairment” column of the following tables.

Since

not

all loans in the substandard category are considered impaired, this quarterly review process

may

result in the identification of specific reserves on unimpaired loans. Management considers those loans graded substandard, but

not

classified as impaired, to be higher risk loans and, therefore, makes specific allocations to the allowance for those loans if warranted. The total of such loans is

$9.26

million and

$9.55

million as of

June 30, 2019

and

2018,

respectively. Specific allowance allocations were made for these loans totaling

$1.66

million and

$1.30

million as of

June 30, 2019

and

2018,

respectively. Since these loans are

not

considered impaired, both the loan balance and related specific allocation are included in the “Collectively Evaluated for Impairment” column of the following tables.

Part I (Continued)

Item

1

(Continued)

(

5

)

Allowance for Loan Losses (Continued)

The following tables present breakdowns of the allowance for loan losses, segregated by impairment methodology for

June 30, 2019

and

2018.

For

June 30, 2018,

there were

no

purchased credit impaired loans and related allowance for loan losses.

June 30, 2019
	Ending Allowance Balance								Ending Loan Balance
	Individually		Collectively		Purchased				Individually		Collectively		Purchased
	Evaluated for		Evaluated for		Credit				Evaluated for		Evaluated for		Credit
	Impairment		Impairment		Impaired		Total		Impairment		Impairment		Impaired		Total
Commercial and Agricultural
Commercial	$	-	$	383	$	-	$	383	$	16	$	68,477	$	42	$	68,535
Agricultural		588		450		-		1,038		850		18,011		-		18,861
Real Estate
Commercial Construction		-		10		-		10		67		72,842		69		72,978
Residential Construction		-		2		-		2		354		18,268		-		18,622
Commercial		897		2,844		-		3,741		14,243		419,573		-		433,816
Residential		49		796		-		845		1,914		203,260		14		205,188
Farmland		32		657		-		689		2,752		71,480		40		74,272
Consumer and Other
Consumer		-		63		-		63		-		23,066		-		23,066
Other		-		18		-		18		-		19,933		-		19,933
Total End of Period Balance	$	1,566	$	5,223	$	-	$	6,789	$	20,196	$	914,910	$	165	$	935,271

June 30, 2018
	Ending Allowance Balance						Ending Loan Balance
	Individually		Collectively				Individually		Collectively
	Evaluated for		Evaluated for				Evaluated for		Evaluated for
	Impairment		Impairment		Total		Impairment		Impairment		Total
Commercial and Agricultural
Commercial	$	-	$	444	$	444	$	77	$	44,952	$	45,029
Agricultural		-		262		262		5		20,032		20,037
Real Estate
Commercial Construction		54		28		82		481		48,428		48,909
Residential Construction		-		-		-		-		11,541		11,541
Commercial		1,371		3,035		4,406		15,187		336,876		352,063
Residential		21		1,045		1,066		1,910		185,681		187,591
Farmland		28		840		868		1,032		66,835		67,867
Consumer and Other
Consumer		-		30		30		-		18,746		18,746
Other		-		1		1		-		15,013		15,013
Total End of Period Balance	$	1,474	$	5,685	$	7,159	$	18,692	$	748,104	$	766,796

Part I (Continued)

Item

1

(Continued)

XML

Note 6 - Other Real Estate Owned

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Real Estate Owned [Text Block]

(

6

)

Other Real Estate Owned

The aggregate carrying amount of Other Real Estate Owned (“OREO”) at

June 30, 2019

and

December 31, 2018

was

$987

and

$1,841,

respectively. All of the Company’s other real estate owned represents properties acquired through foreclosure or deed in lieu of foreclosure. The following table details the change in OREO for the

six

months ended

June 30, 2019

and the year ended

December 31, 2018.

	Six Months Ended			Twelve Months Ended
	June 30, 2019			December 31, 2018
Balance, Beginning	$	1,841		$	4,256
Additions		166			793
Acquired in Acquisition		243			-
Sales of OREO		(2,114	)		(2,949	)
Transfer to Bank Premises		-			(300	)
Gains (Losses) on Sale		955			303
Provision for Losses		(104	)		(262	)
Balance, Ending	$	987		$	1,841

At

June 30, 2019,

the Company held

$120

thousand of residential real estate property as foreclosed property compared to

$565

thousand as of

December 31, 2018. 

Also at

June 30, 2019,

$1,076

thousand of consumer mortgage loans collateralized by residential real estate property were in the process of foreclosure according to local requirements of the applicable jurisdictions. At

December 31, 2018,

only

$25

thousand of consumer mortgage loans collateralized by residential real estate property were in the process of foreclosure according to local requirements of the applicable jurisdictions.

XML

Note 7 - Deposits

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Deposit Liabilities Disclosures [Text Block]

(

7

) Deposits

The aggregate amount of overdrawn deposit accounts reclassified as loan balances totaled

$441

thousand and

$476

thousand as of

June 30, 2019

and

December 31, 2018.

Components of interest-bearing deposits as of

June 30, 2019

and

December 31, 2018

are as follows:

	Six Months Ended		Twelve Months Ended
	June 30, 2019		December 31, 2018
Interest-Bearing Demand	$	591,236	$	471,794
Savings		84,606		79,453
Time, $250,000 and Over		71,359		53,881
Other Time		318,211		287,150
	$	1,065,412	$	892,278

At

June 30, 2019

and

December 31, 2018,

the Company had reciprocal deposits of

$109,638

and

$80,535,

respectively. All of these reciprocal deposits represent Insured Cash Sweep (“ICS”) deposits and Certificate of Deposits Account Registry Service (“CDARS”) deposits. The ICS deposits and CDARS deposits are ones in which customers placed core deposits into the program for FDIC insurance coverage and the Company receives reciprocal deposits in a like amount. Due to changes in regulatory rules with reciprocal deposits, all of the Company’s reciprocal deposits were excluded from being treated as brokered deposits at

June 30, 2019.

The aggregate amount of short-term jumbo certificates of deposit, each with a minimum denomination of

$250,000

was approximately

$58,233

and

$41,104

as of

June 30, 2019

and

December 31, 2018,

respectively. The aggregate amount of certificates of deposit, each with a minimum deposit of

$250,000

was

$71,359

and

$53,881

as of

June 30, 2019

and

December 31, 2018.

As of

June 30, 2019

and

December 31, 2018,

the scheduled maturities of certificates of deposits are as follows:

Maturity	June 30, 2019		December 31, 2018
One Year and Under	$	277,759	$	241,366
One to Three Years		98,060		82,412
Three Years and Over		13,751		17,253
	$	389,570	$	341,031

XML

Note 8 - Other Borrowed Money

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Debt Disclosure [Text Block]

(

8

) Other Borrowed Money

Other borrowed money at

June 30, 2019

and

December 31, 2018

is summarized as follows:

	June 30, 2019		December 31, 2018
Federal Home Loan Bank Advances	$	40,000	$	44,000
Other Borrowings		15,063		-
	$	55,063	$	44,000

Advances from the Federal Home Loan Bank (“FHLB”) have maturities ranging from

2020

to

2028

and interest rates ranging from

0.98

percent to

3.51

percent. As collateral on the outstanding FHLB advances, the Company has provided a blanket lien on its portfolio of qualifying residential

first

mortgage loans, commercial loans, multifamily loans and HELOC loans. At

June 30, 2019,

the book value of those loans pledged is

$168,066.

At

June 30, 2019,

the Company had remaining credit availability from the FHLB of

$261,264.

The Company

may

be required to pledge additional qualifying collateral in order to utilize the full amount of the remaining credit line.

On

May 1, 2019,

the Company completed a borrowing arrangement with a correspondent bank for

$10.0

million. The term note is secured by the Bank’s stock, expires on

May 1, 2024,

and bears a fixed interest rate of

4.70

percent. The proceeds were used for the acquisition of LBC Bancshares, Inc. and its subsidiary, Calumet Bank. As of

June 30, 2019,

the outstanding balance totaled

$9.8

million.

On

May 1, 2019,

the Company completed a revolving credit arrangement with a correspondent bank with a maximum line amount of

$10.0

million. This line of credit is secured by the Bank’s stock, expires on

May 1, 2021,

and bears a variable interest rate of Wall Street Journal Prime minus

0.40

percent. The Company advanced

$5.3

million that was used toward the acquisition of LBC Bancshares, Inc. and its subsidiary, Calumet Bank. As of

June 30, 2019,

the outstanding balance totaled

$5.3

million.

The aggregate stated maturities of other borrowed money at

June 30, 2019

are as follows:

Year	Amount
2019	$	500
2020		4,500
2021		6,313
2022		19,000
2023		7,000
2024 and After		17,750
	$	55,063

The Company also has available federal funds lines of credit with various financial institutions totaling

$48,000,

none

of which were outstanding at

June 30, 2019.

The Company has the ability to borrow funds from the Federal Reserve Bank (“FRB”) of Atlanta utilizing the discount window. The discount window is an instrument of monetary policy that allows eligible institutions to borrow money from the FRB on a short-term basis to meet temporary liquidity shortages caused by internal or external disruptions. At

June 30, 2019,

the Company had borrowing capacity available under this arrangement, with

no

outstanding balances. The Company would be required to pledge certain available-for-sale investment securities as collateral under this agreement.

Part I (Continued)

Item

1

(Continued)

XML

Note 9 - Subordinated Debentures (Trust Preferred Securities)

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Subordinated Borrowings Disclosure [Text Block]

(

9

)

Subordinated Debentures (Trust Preferred Securities)

				3 Month		Added		Total			5 Year
Description	Date	Amount		Libor Rate		Points		Rate		Maturity	Call Option
Colony Bankcorp Statutory Trust III	6/17/2004	$	4,640		2.41025		2.68		5.09025	6/14/2034	6/17/2009
Colony Bankcorp Capital Trust I	4/13/2006		5,155		2.31888		1.50		3.81888	4/13/2036	4/13/2011
Colony Bankcorp Capital Trust II	3/12/2007		9,279		2.31888		1.65		3.96888	3/12/2037	3/12/2012
Colony Bankcorp Capital Trust III	9/14/2007		5,155		2.58275		1.40		3.98275	9/14/2037	9/14/2012

The Trust Preferred Securities are recorded as subordinated debentures on the consolidated balance sheets, but subject to certain limitations, qualify as Tier

1

Capital for regulatory capital purposes. The proceeds from the offerings were used to fund certain acquisitions, pay off holding company debt and inject capital into the bank subsidiary.

The Trust Preferred Securities pay interest quarterly.

XML

Note 10 - Commitments and Contingencies

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

(

1

0

) Commitments and Contingencies

Credit-Related Financial Instruments

.

The Company is a party to credit related financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, standby letters of credit and commercial letters of credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets.

The Company’s exposure to credit loss is represented by the contractual amount of these commitments. The Company follows the same credit policies in making commitments as it does for on-balance sheet instruments. We evaluate each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary, upon extension of credit, is based on management’s credit evaluation of the borrower. Collateral held varies, but

may

include cash or cash equivalents, negotiable instruments, real estate, accounts receivable, inventory, oil, gas and mineral interests, property, plant, and equipment.

At

June 30, 2019

and

December 31, 2018

the following financial instruments were outstanding whose contract amounts represent credit risk:

	Contract Amount
	June 3 0 , 201 9		December 31, 2018
Loan Commitments	$	146,481	$	98,736
Letters of Credit		1,627		1,525

Commitments to extend credit are agreements to lend to a customer as long as there is

no

violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and

may

require payment of a fee. The

commitments for equity lines of credit

may

expire without being drawn upon. Therefore, the total commitment amounts do

not

necessarily represent future cash requirements. The amount of collateral obtained, if it is deemed necessary by the Company, is based on management’s credit evaluation of the customer.

Unfunded commitments under commercial lines of credit, revolving credit lines and overdraft protection agreements are commitments for possible future extensions of credit to existing customers. These lines of credit are uncollateralized and usually do

not

contain a specified maturity date and

may

not

be drawn upon to the total extent to which the Company is committed.

Standby and performance letters of credit are conditional lending commitments issued by the Company to guarantee the performance of a customer to a

third

party. Those letters of credit are primarily issued to support public and private borrowing arrangements. Essentially all letters of credit issued have expiration dates within

one

year. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers.

Other Commitments

. As of

June 30, 2019,

an

$18,000

letter of credit issued by FHLB was used to guarantee the Bank’s performance related to public fund deposit balances.

Le

gal

Conting

enc

ies

. In the ordinary course of business, there are various legal proceedings pending against the Company and the Bank. The aggregate liabilities, if any, arising from such proceedings would

not,

in the opinion of management, have a material adverse effect on the Company’s consolidated financial position.

XML

Note 11 - Fair Value of Financial Instruments and Fair Value Measurements

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Fair Value Disclosures [Text Block]

(

1

1

) Fair Value of Financial Instruments

and Fair Value Measurements

Generally accepted accounting standards in the U.S. require 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 the Company and the Bank’s financial instruments are detailed hereafter. 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.

Generally accepted accounting principles related to Fair Value Measurements define fair value, establish a framework for measuring fair value, establish a

three

-level valuation hierarchy for disclosure of fair value measurement and enhance disclosure requirements for fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The

three

levels are defined as follows:

●    Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

●    Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

●    Level 3 inputs to the valuation methodology are unobservable and represent the Company’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities.

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 and is classified as Level

1.

Investment Securities

– Fair values for investment securities are based on quoted market prices where available and classified as Level

1.

If quoted market prices are

not

available, estimated fair values are based on quoted market prices of comparable instruments and classified as Level

2.

If a comparable is

not

available, the investment securities are classified as Level

3.

Federal Home Loan Bank Stock

– The fair value of Federal Home Loan Bank stock approximates carrying value and is classified as Level

1.

Loans Held for Sale

– The fair value of loans held for sale is determined on outstanding commitments from

third

party investors in the secondary markets and is classified within Level

2

of the valuation hierarchy.

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. Most loans are classified as Level

2,

but impaired loans with a related allowance are classified as Level

3.

Bank-Owned Life Insurance –

The carrying value of bank-owned life insurance policies approximates fair value and is classified as Level

1.

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 and is classified as Level

1.

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 and is classified as Level

2.

Subordinated Debentures

– The fair value of subordinated debentures is estimated by discounting the future cash flows using the current rates at which similar advances would be obtained. Subordinate Debentures are classified as Level

2.

Other Borr

o

wed Money

– The fair value of other borrowed money is calculated by discounting contractual cash flows using an estimated interest rate based on current rates available to the Company for debt of similar remaining maturities and collateral terms. Other borrowed money is classified as Level

2

due to their expected maturities.

Disclosures of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are

not

measured and reported at fair value on a recurring basis or non-recurring basis, are required in the financial statements.

The carrying amount, estimated fair values, and placement in the fair value hierarchy of the Company’s financial instruments as of

June 30, 2019

and

December 31, 2018

are as follows:

	Fair Value Measurements at
	June 30, 2019
	Carrying		Estimated		Level		Level		Level
	Value		Fair Value		1		2		3
Assets
Cash and Short-Term Investments	$	75,412	$	75,412	$	75,412	$	-	$	-
Investment Securities Available for Sale		409,839		409,839		-		406,405		3,434
Other Investments, at Cost		3,261		3,261		3,261		-		-
Loans Held for Sale		3,813		3,813		-		3,813		-
Loans, Net		927,917		925,547		-		922,868		2,679
Bank-Owned Life Insurance		21,357		21,357		21,357		-		-
Liabilities
Deposits		1,297,723		1,300,200		908,153		392,047		-
Subordinated Debentures		24,229		24,229		-		24,229		-
Other Borrowed Money		55,063		54,865		-		54,865		-

	Fair Value Measurements at
	December 31, 2018
	Carrying		Estimated		Level		Level		Level
	Value		Fair Value		1		2		3
Assets
Cash and Short-Term Investments	$	60,156	$	60,156	$	60,156	$	-	$	-
Investment Securities Available for Sale		353,066		353,066		-		348,788		4,278
Federal Home Loan Bank Stock		2,978		2,978		2,978		-		-
Loans, Net		774,249		769,809		-		766,457		3,352
Bank-Owned Life Insurance		17,598		17,598		17,598		-		-
Liabilities
Deposits		1,085,125		1,086,503		744,094		342,409		-
Subordinated Debentures		24,229		24,229		-		24,229		-
Other Borrowed Money		44,000		44,032		-		44,032		-

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.

Following is a description of the valuation methodologies used for instruments measured at fair value on a recurring and nonrecurring basis, as well as the general classification of such instruments pursuant to the valuation hierarchy:

Assets

Securities

– Where quoted prices are available in an active market, securities are classified within level

1

of the valuation hierarchy. Level

1

inputs include securities that have quoted prices in active markets for identical assets. If quoted market prices are

not

available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flow. Examples of such instruments, which would generally be classified within level

2

of the valuation hierarchy, include certain collateralized mortgage and debt obligations and certain high-yield debt securities. In certain cases where there is limited activity or less transparency around inputs to the valuation, securities are classified within level

3

of the valuation hierarchy. When measuring fair value, the valuation techniques available under the market approach, income approach and/or cost approach are used. The Company’s evaluations are based on market data and the Company employs combinations of these approaches for its valuation methods depending on the asset class.

Impaired

L

oans

– Impaired loans are those loans which the Company has measured impairment generally based on the fair value of the loan’s collateral. Fair value is generally determined based upon independent

third

-party appraisals of the properties, or discounted cash flows based upon the expected proceeds. These assets are included as Level

3

fair values, based upon the lowest level of input that is significant to the fair value measurements.

Other Real Estate

– Other real estate owned assets are adjusted to fair value less estimated selling costs upon transfer of the loans to other real estate owned. Typically, an external,

third

-party appraisal is performed on the collateral upon transfer into the other real estate owned account to determine the asset’s fair value. Subsequent adjustments to the collateral’s value

may

be based upon either updated

third

-party appraisals or management’s knowledge of the collateral and the current real estate market conditions. Appraised amounts used in determining the asset’s fair value, whether internally or externally prepared, are discounted

10

percent to account for selling and marketing costs. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are typically significant and result in a level

3

classification of the inputs for determining fair value. Because of the high degree of judgment required in estimating the fair value of other real estate owned assets and because of the relationship between fair value and general economic conditions, we consider the fair value of other real estate owned assets to be highly sensitive to changes in market conditions.

Assets and Liabilities Measured at Fair Value on a Recurring

and Nonrecurring

Basis –

The following table presents the recorded amount of the Company’s assets measured at fair value on a recurring and nonrecurring basis as of

June 30, 2019

and

December 31, 2018,

aggregated by the level in the fair value hierarchy within which those measurements fall. The table below includes only impaired loans with a specific reserve and only other real estate properties with a valuation allowance at

June 30, 2019

and at

December 31, 2018.

Those impaired loans and other real estate properties are shown net of the related specific reserves and valuation allowances.

			Fair Value Measurements at Reporting Date Using
			Quoted Prices in				Significant
			Active Markets for		Significant Other		Unobservable
	Total Fair		Identical Assets		Observable		Inputs
June 30, 2019	Value		(Level 1)		Inputs (Level 2)		(Level 3)
Recurring Securities Available for Sale
U.S. Government Agencies Mortgage-Backed	$	403,408	$	-	$	400,189	$	3,219
State, County and Municipal		3,574		-		3,359		215
Corporate Bonds		2,857		-		2,857		-
	$	409,839	$	-	$	406,405	$	3,434
Nonrecurring
Impaired Loans	$	2,679	$	-	$	-	$	2,679
Other Real Estate	$	714	$	-	$	-	$	714

			Fair Value Measurements at Reporting Date Using
			Quoted Prices in				Significant
			Active Markets for		Significant Other		Unobservable
	Total Fair		Identical Assets		Observable		Inputs
December 31, 2018	Value		(Level 1)		Inputs (Level 2)		(Level 3)
Recurring Securities Available for Sale
U.S. Government Agencies Mortgage-Backed	$	346,205	$	-	$	342,142	$	4,063
State, County and Municipal		3,989		-		3,775		214
Corporate Bonds		2,872		-		2,872		-
	$	353,066	$	-	$	348,789	$	4,277
Nonrecurring
Impaired Loans	$	3,352	$	-	$	-	$	3,352
Other Real Estate	$	1,183	$	-	$	-	$	1,183

Liabilities

The Company did

not

identify any liabilities that are required to be presented at fair value.

Fair Value Measurements Using Significant Unobservable Inputs (Level

3

)

The following table presents quantitative information about the significant unobservable inputs used in the fair value measurements for assets in level

3

of the fair value hierarchy measured on a nonrecurring basis at

June 30, 2019

and

December 31, 2018.

This table is comprised primarily of collateral dependent impaired loans and other real estate owned:

			Valuation	Unobservable	Range
	June 30, 2019		Techniques	Inputs	Weighted Avg
Real Estate
Residential Real Estate		218	Sales Comparison	Adjustment for Differences	(10.86)%	-	6.70%
				Between the Comparable Sales		(2.08)%
				Management Adjustments for	0.00%	-	25.00%
				Age of Appraisals and/or Current		12.50%
				Market Conditions
Commercial Real Estate		2,134	Income Approach	Capitalization Rate	7.75%	-	10.50%
						9.13%
				Management Adjustments for	0.00%	-	10.00%
				Age of Appraisals and/or Current		5.00%
				Market Conditions
Farmland		327	Sales Comparison	Adjustment for Differences	(71.00)%	-	(3.50)%
				Between the Comparable Sales		(37.25)%
				Management Adjustments for	10.00%	-	80.00%
				Age of Appraisals and/or Current		45.00%
				Market Conditions
Other Real Estate Owned		714	Sales Comparison	Adjustment for Differences	(30.00)%	-	25.02%
				Between the Comparable Sales		(2.49)%
				Management Adjustments for	9.82%	-	99.39%
				Age of Appraisals and/or Current		40.36%
				Market Conditions
			Sales Contract	Adjustment for Estimated Costs	0.00%	-	0.00%
				to Sell		(0.00)%
			Income Approach	Discount Rate		10.00%

			Valuation	Unobservable	Range
	December 31, 2018		Techniques	Inputs	Weighted Avg
Real Estate
Commercial Construction	$	360	Sales Comparison	Adjustment for Differences	(6.00)%	-	1,975.00%
				Between the Comparable Sales		984.20%
				Management Adjustments for	0.00%	-	10.00%
				Age of Appraisals and/or Current		5.00%
				Market Conditions
Residential Real Estate		213	Sales Comparison	Adjustment for Differences	(10.86)%	-	6.70%
				Between the Comparable Sales		(2.08)%
				Management Adjustments for	0.00%	-	25.00%
				Age of Appraisals and/or Current		12.50%
				Market Conditions
Commercial Real Estate		2,415	Sales Comparison	Adjustment for Differences	(60.00)%	-	80.00%
				Between the Comparable Sales		10.00%
				Management Adjustments for	0.00%	-	35.00%
				Age of Appraisals and/or Current		17.50%
				Market Conditions
			Income Approach	Capitalization Rate		10.13%
Farmland		328	Sales Comparison	Adjustment for Differences	(71.00)%	-	(3.50)%
				Between the Comparable Sales		(37.25)%
				Management Adjustments for	10.00%	-	80.00%
				Age of Appraisals and/or Current		45.00%
				Market Conditions
Commercial		36	Sales Contract	Adjustment for Estimated Costs	0.00%	-	0.00%
				to Sell		(0.00)%
				Management Adjustment for	0.00%	-	15.00%
				Age of Appraisals and/or Current		15.00%
				Market Conditions
Other Real Estate Owned		1,183	Sales Comparison	Adjustment for Differences	(30.00)%	-	25.02%
				Between the Comparable Sales		(2.49)%
				Management Adjustment for	9.82%	-	99.39%
				Age of Appraisals and/or Current		35.26%
				Market Conditions
			Income Approach	Capitalization Rate		10.00%

The table below presents a reconciliation and statement of income classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (level

3

) for the

six

months ended

June 30, 2019

and the

twelve

months ended

December 31, 2018.

	Available for Sale Securities
	June 30, 2019			December 31, 2018
Balance, Beginning	$	4,277		$	7,298
Transfers out of Level 3		-			(2,009	)
Maturities		-			-
Purchases		-			-
Paydowns		(883	)		(886	)
Unrealized Gains included in Other Comprehensive Income (Loss)		40			(126	)
Balance, Ending	$	3,434		$	4,277

The Company’s policy is to recognize transfers in and transfers out of levels

1,

2

and

3

as of the end of a reporting period. There were

no

transfers of securities between levels for the

six

months ended

June 30, 2019

and

one

security totaling

$2,009

transferred from level

3

to level

2

for the

twelve

months ended

December 31, 2018.

The following table presents quantitative information about recurring level

3

fair value measurements as of

June 30, 2019.

				Unobservable	Range
June 30, 2019	Fair Value		Valuation Techniques	Inputs	(Weighted Avg)
State, County and Municipal	$	215	Discounted Cash Flow	Discount Rate or Yield		N/A*
U. S. Government Agencies Mortgage -Backed		3,219	Fundamental Analysis	Discount Rate or Yield		N/A*

* The Company relies on a

third

-party pricing service to value its securities. The details of the unobservable inputs and other adjustments used by the

third

-party pricing service were

not

readily available to the Company.

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Note 12 - Regulatory Capital Matters

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Regulatory Capital Requirements under Banking Regulations [Text Block]

(

1

2

) Regulatory Capital Matters

The amount of dividends payable to the parent company from the subsidiary bank is limited by various banking regulatory agencies. Upon approval by regulatory authorities, the Bank

may

pay cash dividends to the parent company in excess of regulatory limitations.   

The Company is subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and, possibly, additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of the Company’s assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Company to maintain minimum amounts and ratios of total and Tier

1

capital to risk-weighted assets, and of Tier

1

capital to average assets.  As of

June 30, 2019,

the interim final Basel III rules (“Basel III”) require the Company to also maintain minimum amounts and ratios of common equity Tier

1

capital to risk-weighted assets.  These amounts and ratios as defined in regulations are presented hereafter.  Management believes, as of

June 30, 2019,

the Company meets all capital adequacy requirements to which it is subject under the regulatory framework for prompt corrective action.  In the opinion of management, there are

no

events or conditions since prior notification of capital adequacy from the regulators that have changed the institution’s category. 

The Basel III rules also require the implementation of a new capital conservation buffer comprised of common equity Tier

1

capital.  The capital conservation buffer was phased in beginning 

January 1, 2016 

at

0.625%

of risk-weighted assets and increase each subsequent year by

0.625%

until reaching its final level of

2.5%

on 

January 1, 2019.

The following table summarizes regulatory capital information as of

June 30, 2019

and

December 31, 2018

on a consolidated basis and for the subsidiary, as defined.  Regulatory capital ratios for

June 30, 2019

and

December 31, 2018

were calculated in accordance with the Basel III rules.

											To Be Well
											Capitalized Under
						For Capital					Prompt Corrective
	Actual					Adequacy Purposes					Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of June 30, 2019
Total Capital to Risk-Weighted Assets
Consolidated	$	136,952		13.37	%	$	81,961		8.00	%		N/A		N/A
Colony Bank		148,554		14.52			81,856		8.00		$	102,320		10.00	%
Tier I Capital to Risk-Weighted Assets
Consolidated		130,163		12.70			61,470		6.00			N/A		N/A
Colony Bank		141,765		13.86			61,392		6.00			81,856		8.00
Common Equity Tier I Capital to Risk-Weighted Assets
Consolidated		106,663		10.41			46,103		4.50			N/A		N/A
Colony Bank		141,765		13.86			46,044		4.50			66,508		6.50
Tier I Capital to Average Assets
Consolidated		130,163		9.34			55,765		4.00			N/A		N/A
Colony Bank		141,765		10.18			55,684		4.00			69,606		5.00

											To Be Well
											Capitalized Under
						For Capital					Prompt Corrective
	Actual					Adequacy Purposes					Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of December 31, 2018
Total Capital to Risk-Weighted Assets
Consolidated	$	133,900		15.86	%	$	67,527		8.00	%		N/A		N/A
Colony Bank		131,723		15.63			67,418		8.00		$	84,272		10.00	%
Tier I Capital to Risk-Weighted Assets
Consolidated		126,623		15.00			50,645		6.00			N/A		N/A
Colony Bank		124,446		14.77			50,563		6.00			67,418		8.00
Common Equity Tier I Capital to Risk-Weighted Assets
Consolidated		103,123		12.22			37,984		4.50			N/A		N/A
Colony Bank		124,446		14.77			37,923		4.50			54,777		6.50
Tier I Capital to Average Assets
Consolidated		126,623		10.24			49,478		4.00			N/A		N/A
Colony Bank		124,446		10.08			49,396		4.00			61,745		5.00

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Note 13 - Stock-based Compensation

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Share-based Payment Arrangement [Text Block]

(

13

) Stock-Based Compensation

In

August 2018,

the Company granted an award of

5,650

restricted shares of the Company’s common stock to T. Heath Fountain, the Company’s Chief Executive Officer (“CEO”), with a market price of

$17.73

per share. The restricted shares vest in equal installments on each of

July 30, 2019,

July 2020

and

July 2021,

subject to continued service by Mr. Fountain through each applicable vesting date, or earlier upon the occurrence of a change in control. With the restricted stock, there will be

no

cash consideration to the Company for the shares. The CEO will have the right to vote all shares subject to such grant and receive all dividends with respect to such shares, whether or

not

the shares have vested.

Compensation expense for restricted stock is based on the market price of the Company stock at the time of the grant and amortized on a straight-line basis over the vesting period. The balance of unearned compensation related to these restricted shares as of

June 30, 2019

is

$69,448

which is expected to be recognized over a weighted-average of

2.08

years. Total compensation expense recognized for the restricted shares granted for the

six

months ended

June 30, 2019

was

$16,668.

XML

Note 14 - Earnings Per Share

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Earnings Per Share [Text Block]

(

1

4

) Earnings Per Share

Basic earnings per share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during each period. Diluted earnings per share reflects the potential dilution of restricted stock and common stock warrants. Net income available to common stockholders represents net income after preferred stock dividends. The following table presents earnings per share for the

three

month and

six

month period ended

June 30, 2019

and

2018.

	Three Months Ended				Six Months Ended
	June 30				June 30
	2019		2018		2019		2018
Numerator
Net Income Available to Common Stockholders	$	2,101	$	3,069	$	4,936	$	6,257
Denominator
Weighted Average Number of Common Shares Outstanding for Basic Earnings Per Common Share		9,089		8,439		8,765		8,439
Dilutive Effect of Potential Common Stock
Restricted Stock		-		-		-		-
Stock Warrants		-		173		-		196
Weighted-Average Number of Shares Outstanding for Diluted Earnings Per Common Share		9,089		8,612		8,765		8,635
Earnings Per Share - Basic	$	0.23	$	0.36	$	0.56	$	0.74
Earnings Per Share - Diluted	$	0.23	$	0.36	$	0.56	$	0.72

XML

Note 15 - Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Comprehensive Income (Loss) Note [Text Block]

(

1

5

)

Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income (loss) for unrealized gains and losses securities available for sale for the period ended

June 30, 2019

and the year ended

December 31, 2018

are as follows:

	June 30, 2019			December 31, 2018
Beginning Balance	$	(8,190	)	$	(6,492	)
Other Comprehensive Income Before Reclassification		8,472			(1,606	)
Amounts Reclassified from Accumulated Other Comprehensive Income		(51	)		(92	)
Net Current Period Other Comprehensive Income		8,421			(1,698	)
Ending Balance	$	231		$	(8,190	)

XML

Note 16 - Segment Information

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

(

16

) Segment Information

The Company’s operating segments include banking and mortgage banking. The reportable segments are determined by the products and services offered, and internal reporting. The Bank segment derives its revenues from the delivery of full-service financial services, including retail and commercial banking services and deposit accounts. The Mortgage Banking segment derives its revenues from the origination and sales of residential mortgage loans held for sale. Segment performance is evaluated using net interest income and noninterest income. Income taxes are allocated based on income before income taxes, and indirect expenses (includes management fees) are allocated based on various internal factors for each segment. Transactions among segments are made at fair value. Information reported internally for performance assessment follows.

Three Months Ended June 30, 2019	Bank		Mortgage Banking			Holding Company			Totals
Net Interest Income	$	12,200	$	19		$	(394	)	$	11,825
Provision for Loan Losses		179		-			-			179
Noninterest Income		3,492		500			8			4,000
Noninterest Expenses		11,636		722			656			13,014
Income Taxes		737		-			(206	)		531
Segment Profit (Loss)	$	3,140	$	(203	)	$	(836	)	$	2,101
Segment Assets at June 30, 2019	$	1,498,212	$	4,539		$	4,221		$	1,506,972

Three Months Ended June 30, 2018	Bank		Mortgage Banking		Holding Company			Totals
Net Interest Income	$	10,411	$	-	$	(246	)	$	10,165
Provision for Loan Losses		44		-		-			44
Noninterest Income		2,317		-		7			2,324
Noninterest Expenses		8,325		-		276			8,601
Income Taxes		877		-		(102	)		775
Segment Profit (Loss)	$	3,482	$	-	$	(413	)	$	3,069
Segment Assets at June 30, 2018	$	1,199,709	$	-	$	4,763		$	1,204,472

Six Months Ended June 30, 2019	Bank		Mortgage Banking			Holding Company			Totals
Net Interest Income	$	22,832	$	19		$	(669	)	$	22,182
Provision for Loan Losses		310		-			-			310
Noninterest Income		5,675		643			16			6,334
Noninterest Expenses		20,242		846			952			22,040
Income Taxes		1,548		5			(323	)		1,230
Segment Profit (Loss)	$	6,407	$	(189	)	$	(1,282	)	$	4,936
Segment Assets at June 30, 2019	$	1,498,212	$	4,539		$	4,221		$	1,506,972

Six Months Ended June 30, 2018	Bank		Mortgage Banking		Holding Company			Totals
Net Interest Income	$	20,753	$	-	$	(459	)	$	20,294
Provision for Loan Losses		70		-		-			70
Noninterest Income		4,744		-		14			4,758
Noninterest Expenses		16,605		-		532			17,137
Income Taxes		1,782		-		(194	)		1,588
Segment Profit (Loss)	$	7,040	$	-	$	(783	)	$	6,257
Segment Assets at June 30, 2018	$	1,199,709	$	-	$	4,763		$	1,204,472

Part I (Continued)

Item

1

(Continued)

XML

Note 17 - Subsequent Events

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

(

17

)

Subsequent Events

On

July 3, 2019,

the Company announced the startup of a Small Business Specialty Lending Group which will focus on Small Business Administration lending and other government guaranteed loans. The Company has hired

two

veteran bankers to lead the group.

On

July 18, 2019,

the Board of Directors declared a cash dividend of

$0.075

per share to shareholders of record on

July 31, 2019,

payable on

August 15, 2019.

Colony Risk Management, Inc. (“the Captive”), a wholly-owned subsidiary of the Company, began operations in

July 2019,

in the State of Nevada. The Captive is a pure captive insurance company as defined by the Nevada Revised Statutes, Chapter

694C,

and is engaged in the business of providing commercial property and various liability insurance to the Company and related entities. The Captive has elected to be taxed under Section

831

(b) of the Internal Revenue Code. Pursuant to Section

831

(b), if gross premiums do

not

exceed

$2,300,000,

then the Captive is taxable solely on its investment income. The Captive will be included in the consolidated federal income tax return of the Company. The Captive has a policy to pay to the Company its federal income tax liability or receive a credit for the tax reduction realized in the event of a loss. The Captive is subject to federal income taxes and state premium taxes to Nevada.

XML

Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2019

Accounting Policies [Abstract]

Consolidation, Policy [Policy Text Block]

Presentation

Colony Bankcorp, Inc. (the “Company”) is a bank holding company located in Fitzgerald, Georgia. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Colony Bank, Fitzgerald, Georgia (the “Bank”). All significant intercompany accounts have been eliminated in consolidation. The accounting and reporting policies of the Company conform to generally accepted accounting principles and practices utilized in the commercial banking industry.

In

July 2019,

a new subsidiary of the Company was incorporated under the name Colony Risk Management, Inc. Colony Risk Management, Inc. is a subsidiary of the Company and is located in Las Vegas, Nevada. It is a captive insurance subsidiary which insures various liability and property damage policies for the Company and its related subsidiaries. Colony Risk Management is regulated by the State of Nevada Division of Insurance.

All dollars in notes to consolidated financial statements are rounded to the nearest thousand, except for per share amounts.

The consolidated financial statements in this report are unaudited, except for the

December 31, 2018

consolidated balance sheet. All adjustments consisting of normal recurring accruals which are, in the opinion of management, necessary for fair presentation of the interim consolidated financial statements, have been included and fairly and accurately present the financial position, results of operations and cash flows of the Company. The results of operations for the

six

months ended

June 30, 2019

are

not

necessarily indicative of the results which

may

be expected for the entire year.

Nature of Operations [Policy Text Block]

Nature of Operations

The Bank provides a full range of retail, commercial and mortgage banking services for consumers and small- to medium-size businesses located primarily in central, south and coastal Georgia. The Bank is headquartered in Fitzgerald, Georgia with banking and mortgage offices in Albany, Ashburn, Athens, Broxton, Centerville, Columbus, Cordele, Douglas, Eastman, Fitzgerald, LaGrange, Leesburg, Macon, Moultrie, Quitman, Rochelle, Savannah, Soperton, Sylvester, Statesboro, Thomaston, Tifton, Valdosta and Warner Robins. Lending and investing activities are funded primarily by deposits gathered through its retail banking office network.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

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 fair value of assets acquired and liabilities assumed in a business combination.

Reclassification, Policy [Policy Text Block]

Reclassifications

In certain instances, amounts reported in prior years’ consolidated financial statements have been reclassified to conform to statement presentations selected for

2019.

Such reclassifications have

not

affected previously reported stockholders’ equity or net income.

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentrations of Credit Risk

Concentrations of credit risk can exist in relation to individual borrowers or groups of borrowers, certain types of collateral, certain types of industries, or certain geographic regions. The Company has a concentration in real estate loans as well as a geographic concentration that could pose an adverse credit risk. At

June 30, 2019,

approximately

86

percent of the Company’s loan portfolio was concentrated in loans secured by real estate. A substantial portion of borrowers’ ability to honor their contractual obligations is dependent upon the viability of the real estate economic sector. Management continues to monitor these concentrations and has considered these concentrations in its allowance for loan loss analysis.

The success of the Company is dependent, to a certain extent, upon the economic conditions in the geographic markets it serves. 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 the Company 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.

At times, the Company

may

have cash and cash equivalents at financial institutions in excess of federal deposit insurance limits. The Company places its cash and cash equivalents with high credit quality financial institutions whose credit ratings are monitored by management to minimize credit risk.

Investment, Policy [Policy Text Block]

Investment Securities

The Company classifies its investment securities as trading, available for sale or held to maturity. Securities that are held principally for resale in the near term are classified as trading. Trading securities are carried at fair value, with realized and unrealized gains and losses included in noninterest income. Currently,

no

securities are classified as trading. Securities acquired with both the intent and ability to be held to maturity are classified as held to maturity and reported at amortized cost. All securities

not

classified as trading or held to maturity are considered available for sale. Securities available for sale are reported at estimated fair value. Unrealized gains and losses on securities available for sale are excluded from earnings and are reported, net of deferred taxes, in accumulated other comprehensive income (loss), a component of stockholders’ equity. Gains and losses from sales of securities available for sale are computed using the specific identification method. Securities available for sale includes securities which

may

be sold to meet liquidity needs arising from unanticipated deposit and loan fluctuations, changes in regulatory capital requirements, or unforeseen changes in market conditions.

The Company evaluates each held to maturity and available for sale security in a loss position for other-than-temporary impairment (“OTTI”). In estimating other-than-temporary impairment losses, management considers such factors as the length of time and the extent to which the market value has been below cost, the financial condition of the issuer and the Company’s intent to sell and whether it is more likely than

not

that the Company will be required to sell the security before anticipated recovery of the amortized cost basis. If the Company intends to sell or if it is more likely than

not

that the Company will be required to sell the security before recovery, the OTTI write-down is recognized in earnings. If the Company does

not

intend to sell the security or it is

not

more likely than

not

that it will be required to sell the security before recovery, the OTTI write-down is separated into an amount representing credit loss, which is recognized in earnings and an amount related to all other factors, which is recognized in other comprehensive income (loss).

Policy Loans Receivable, Policy [Policy Text Block]

Loans Held for Sale

Loans held for sale are classified at the lower of cost or market value, which is computed by the aggregate method. Gains and losses on loans held for sale are included in the determination of income for the period in which the sales occur.

Loans

Loans that the Company has the ability and intent to hold for the foreseeable future or until maturity are recorded at their principal amount outstanding, net of unearned interest and fees. Loan origination fees, net of certain direct origination costs, are deferred and amortized over the estimated terms of the loans using the straight-line method. Interest income on loans is recognized using the effective interest method.

A loan is considered to be delinquent when payments have

not

been made according to contractual terms, typically evidenced by nonpayment of a monthly installment by the due date.

When management believes there is sufficient doubt as to the collectability of principal or interest on any loan or generally when loans are

90

days or more past due, the accrual of applicable interest is discontinued and the loan is designated as nonaccrual, unless the loan is well secured and in the process of collection. Interest payments received on nonaccrual loans are either applied against principal or reported as income, according to management’s judgment as to the collectability of principal. Loans are returned to an accrual status when factors indicating doubtful collectability on a timely basis

no

longer exist.

Troubled Debt Restructuring [Policy Text Block]

Loans Modified in a Troubled Debt Restructuring (

“

TDR

”

)

Loans are considered to have been modified in a TDR when, due to a borrower’s financial difficulty, the Company makes certain concessions to the borrower that it would

not

otherwise consider for new debt with similar risk characteristics. Modifications

may

include interest rate reductions, principal or interest forgiveness, forbearance, and other actions intended to minimize economic loss and to avoid foreclosure or repossession of the collateral. Generally, a non-accrual loan that has been modified in a TDR remains on non-accrual status for a period of

6

months to demonstrate that the borrower is able to meet the terms of the modified loan. However, performance prior to the modification, or significant events that coincide with the modification, are included in assessing whether the borrower can meet the new terms and

may

result in the loan being returned to accrual status at the time of loan modification or after a shorter performance period. If the borrower’s ability to meet the revised payment schedule is uncertain, the loan remains on non-accrual status. Once a loan is modified in a troubled debt restructuring it is accounted for as an impaired loan, regardless of its accrual status, until the loan is paid in full, sold or charged off. A TDR

may

cease being classified as impaired if the loan is subsequently modified at market terms and, has performed according to the modified terms for at least

six

months, and there has

not

been any prior principal forgiveness on a cumulative basis.

Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block]

Allowance for Loan

Losses

The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the inability to collect a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance.

The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that

may

affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revisions as more information becomes available.

The allowance consists of specific, historical and general components. The specific component relates to loans that are classified as either doubtful, substandard or special mention. For such loans that are also classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan are lower than the carrying value of that loan. The historical component covers nonclassified loans and is based on historical loss experience adjusted for qualitative factors. A general component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The general component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and historical losses in the portfolio. General valuation allowances are based on internal and external qualitative risk factors such as (

1

) changes in lending policies and procedures, including changes in underwriting standards and collections, charge offs, and recovery practices, (

2

) changes in international, national, regional, and local conditions, (

3

) changes in the nature and volume of the portfolio and terms of loans, (

4

) changes in the experience, depth, and ability of lending management, (

5

) changes in the volume and severity of past due loans and other similar conditions, (

6

) changes in the quality of the organization's loan review system, (

7

) changes in the value of underlying collateral for collateral dependent loans, (

8

) the existence and effect of any concentrations of credit and changes in the levels of such concentrations, and (

9

) the effect of other external factors (i.e. competition, legal and regulatory requirements) on the level of estimated credit losses.

Loans identified as losses by management, internal loan review and/or regulatory agencies are charged off.

A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are

not

classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price or the fair value of the collateral if the loan is collateral dependent.

A significant portion of the Company’s impaired loans are deemed to be collateral dependent. Management therefore measures impairment on these loans based on the fair value of the collateral. Collateral values are determined based on appraisals performed by qualified licensed appraisers hired by the Company or by senior members of the Company’s credit administration staff. The decision whether or

not

to obtain an external

third

-party appraisal usually depends on the type of property being evaluated. External appraisals are usually obtained on more complex, income producing properties such as hotels, shopping centers and businesses. Less complex properties such as residential lots, farm land and single family houses

may

be evaluated internally by senior credit administration staff. When the Company does obtain appraisals from external

third

-parties, the values utilized in the impairment calculation are “as is” or current market values. The appraisals, whether prepared internally or externally,

may

utilize a single valuation approach or a combination of approaches including the comparable sales, income and cost approach. Appraised amounts used in the impairment calculation are typically discounted

10

percent to account for selling and marketing costs, if the repayment of the loan is to come from the sale of the collateral. Although appraisals are

not

obtained each year on all impaired loans, the collateral values used in the impairment calculations are evaluated quarterly by management. Based on management’s knowledge of the collateral and the current real estate market conditions, appraised values

may

be further discounted to reflect facts and circumstances known to management since the most recent appraisal was performed.

Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are typically significant and result in a level

3

classification of the inputs for determining fair value. Because of the high degree of judgment required in estimating the fair value of collateral underlying impaired loans and because of the relationship between fair value and general economic conditions, we consider the fair value of impaired loans to be highly sensitive to changes in market conditions.

Property, Plant and Equipment, Policy [Policy Text Block]

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.

Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block]

Goodwill

Goodwill represents the excess of the cost of businesses acquired over the fair value of the net assets acquired. Goodwill is assigned to reporting units and tested for impairment at least annually, or on an interim basis if an event occurs or circumstances change that would more likely than

not

reduce the fair value of the reporting unit below its carrying value.

Intangible Assets, Finite-Lived, Policy [Policy Text Block]

Intangible Assets

Intangible assets consist of core deposit intangibles acquired in connection with a business combination. The core deposit intangible is initially recognized based on a valuation performed as of the consummation date. The core deposit intangible is amortized on an accelerated basis over the average remaining life of the acquired customer deposits.

Transfers and Servicing of Financial Assets, Transfers of Financial Assets, Policy [Policy Text Block]

Transfers of Financial Assets

Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (

1

) the assets have been isolated from the Company, (

2

) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (

3

) the Company does

not

maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

Cash and Cash Equivalents, Policy [Policy Text Block]

Statement of 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, interest-bearing checking accounts, savings accounts, loans and certificates of deposit are reported net.

Advertising Cost [Policy Text Block]

Advertising Costs

The Company expenses the cost of advertising in the periods in which those costs are incurred.

Income Tax, Policy [Policy Text Block]

Income Taxes

The provision for income taxes is based upon income for financial statement purposes, adjusted for nontaxable income and nondeductible expenses. Deferred income taxes have been provided when different accounting methods have been used in determining income for income tax purposes and for financial reporting purposes.

Deferred tax assets and liabilities are recognized based on future tax consequences attributable to differences arising from the financial statement carrying values of assets and liabilities and their tax bases. 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 direct write-off method for tax purposes). In the event of changes in the tax laws, deferred tax assets and liabilities are adjusted in the period of the enactment of those changes, with effects included in the income tax provision. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than

not

that some portion or all of the deferred tax assets will

not

be realized. The Company and its subsidiary file a consolidated federal income tax return. The subsidiary pays its proportional share of federal income taxes to the Company based on its taxable income.

Positions taken in the Company’s tax returns

may

be subject to challenge by the taxing authorities upon examination. Uncertain tax positions are initially recognized in the consolidated financial statements when it is more likely than

not

the position will be sustained upon examination by the tax authorities. Such tax positions are both initially and subsequently measured as the largest amount of tax benefit that is greater than

50

percent likely of being realized upon settlement with the tax authority, assuming full knowledge of the position and all relevant facts. The Company provides for interest and, in some cases, penalties on tax positions that

may

be challenged by the taxing authorities. Interest expense is recognized beginning in the

first

period that such interest would begin accruing. Penalties are recognized in the period that the Company claims the position in the tax return. Interest and penalties on income tax uncertainties are classified within income tax expense in the consolidated statement of income.

Real Estate Owned, Valuation Allowance, Policy [Policy Text Block]

Other Real Estate

Other real estate generally represents real estate acquired through foreclosure and is initially recorded at estimated fair value at the date of acquisition less the cost of disposal. Losses from the acquisition of property in full or partial satisfaction of debt are recorded as loan losses. Properties are evaluated regularly to ensure the recorded amounts are supported by current fair values, and valuation allowances are recorded as necessary to reduce the carrying amount to fair value less estimated cost of disposal. Routine holding costs and gains or losses upon disposition are included in other noninterest expense.

Bank Owned Life Insurance [Policy Text Block]

Bank-Owned Life Insurance

The Company has purchased life insurance on the lives of certain key members of management and directors. The life insurance policies are recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or amounts due that are probable at settlement, if applicable. Increases in the cash surrender value are recorded as other income in the consolidated statements of income. The cash surrender value of the insurance contracts is recorded in other assets on the consolidated balance sheets in the amount of

$21,357

and

$17,598

as of

June 30, 2019

and

December 31, 2018,

respectively.

Comprehensive Income, Policy [Policy Text Block]

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 statements 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 (loss). Accounting standards codification requires the presentation in the consolidated financial statements of net income and all items of other comprehensive income (loss) as total comprehensive income (loss).

Off-Balance-Sheet Credit Exposure, Policy [Policy Text Block]

Off-Balance Sheet Credit Related Financial Instruments

In the ordinary course of business, the Company has entered into commitments to extend credit, commercial letters of credit and standby letters of credit. Such financial instruments are recorded when they are funded.

New Accounting Pronouncements, Policy [Policy Text Block]

Changes in Accounting Principles and Effects of New Accounting Pronouncements

ASU

2016

-

02,

Leases

(Topic

842

)

.

This ASU requires lessees to put most leases on their balance sheets but recognize expenses in the income statement in a manner similar to current accounting treatment. This ASU changes the guidance on sale-leaseback transactions, initial direct costs and lease execution costs, and, for lessors, modifies the classification criteria and the accounting for sales-type and direct financing leases. For public business entities, this ASU is effective for annual periods beginning after 

December 15, 2018,

and interim periods therein. Entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. ASU

2016

-

02

was effective for the Company on

January 1, 2019.

The adoption of this standard did

not

have a material impact on the Company’s consolidated financial statements as of

June 30, 2019.

ASU

2016

-

13,

Financial Instruments – Credit Losses

(Topic

326

).

This ASU sets forth a “current expected credit loss” (CECL) model which requires the Company to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable supported forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost and applies to some off-balance sheet credit exposures. This ASU is effective for fiscal years beginning after

December 15, 2019,

including interim periods within those fiscal years. The Company is currently assessing the impact of the adoption of this ASU on its consolidated financial statements. On

July 17, 2019,

FASB voted to delay the effective date of this ASU for smaller reporting companies, such as the Company, until fiscal years beginning after

December 15, 2022. 

ASU

2017

-

04,

Intangibles: Goodwill and Other: Simplifying the Test for Goodwill Impairmen

t

. ASU

2017

-

04

eliminates Step

2

from the goodwill impairment test to simplify the subsequent measurement of goodwill. The annual, or interim, goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should

not

exceed the total amount of goodwill allocated to that reporting unit. In addition, the income tax effects of tax deductible goodwill on the carrying amount of the reporting unit should be considered when measuring the goodwill impairment loss, if applicable. ASU

2017

-

04

also eliminates the requirements for any reporting unit with a

zero

or negative carrying amount to perform Step

2

of the goodwill impairment test. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. The standard must be adopted using a prospective basis and the nature and reason for the change in accounting principle should be disclosed upon transition. ASU

2017

-

04

is effective for annual or any interim goodwill impairment tests in reporting periods beginning after

December 15, 2019.

Early adoption is permitted on testing dates after

January 1, 2017.

The Company is currently evaluating the impact this ASU will have on the Company’s Consolidated Financial Statements, but it is

not

expected to have a material impact.

ASU

2017

-

08,

 

Premium Amortization on Purchased Callable Debt Securities.

 This ASU shortens the amortization period for the premium on certain purchased callable debt securities to the earliest call date. Today, entities generally amortize the premium over the contractual life of the security. The new guidance does

not

change the accounting for purchased callable debt securities held at a discount; the discount continues to be amortized to maturity. ASU

No.

2017

-

08

is effective for interim and annual reporting periods beginning after 

December 15, 2018;

early adoption is permitted. The guidance calls for a modified retrospective transition approach under which a cumulative-effect adjustment will be made to retained earnings as of the beginning of the

first

reporting period in which the guidance is adopted. ASU

2017

-

08

was effective for the Company on

January 1, 2019.

The adoption of this standard did

not

have a material impact on the Company’s consolidated financial statements.

ASU

2018

-

13,

Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement (Topic

820

).

This ASU modifies the disclosure requirements on fair value measurements. ASU

2018

-

13

is effective for interim and annual reporting periods after

December 15, 2019;

early adoption is permitted. The Company is currently evaluating the provisions of ASU

2018

-

13

to determine the potential impact the new standard will have on the Company’s Consolidated Financial Statements.

ASU

2019

-

1,

Leases (Topic

842

): Codification Improvements

. ASU

2019

-

1

amends certain aspects of ASU

2016

-

02,

Leases. This ASU addresses the following issues: (

1

) determining the fair value of the underlying asset by lessors that are

not

manufacturers or dealers; (

2

) statement of cash flow presentation for sales – type and direct financing leases by lessors within the scope of ASC

942,

Financial Services – Depository and Lending; and (

3

) clarification of interim disclosure requirements during transition. ASU

2019

-

1

is effective for the

first

and

second

issues for interim and annual reporting periods beginning after

December 15, 2019;

early adoption is permitted. If an entity early adopts, the ASU will be applied as of the date the entity

first

applies ASU

2016

-

02.

For the

third

issue, there is

no

transition and effective date because the amendments are to the original transition requirements in ASU

2016

-

02.

The Company is currently evaluating the impact this ASU will have on the Company’s Consolidated Financial Statements, but it is

not

expected to have a material impact.

ASU

2019

-

04,

Codification Improvements to Financial Instruments – Credit Losses (Topic

326

),

Derivatives and Hedging (Topic

815

) and Financial Instruments (Topic

825

)

. ASU

2019

-

4

clarifies certain aspects of ASU

2016

-

13,

Financial Instruments – Credit Losses; ASU

2017

-

12,

Hedging Activities; and ASU

2016

-

1,

Financial Instruments. For amendments dealing with ASU

2016

-

13,

which is currently the only standard of the

three

listed in this update that would apply for the Company, it addresses accrued interest with a financing receivable or investment; transfers between classifications or categories for loans and debt securities; the inclusion of recoveries on financial assets in the calculation of the current expected credit losses allowance for both pools of financial assets and individual financial assets. These amendments dealing with ASU

2016

-

13

are effective on the same date as the effective date in ASU

2016

-

13.

The Company is currently assessing the impact of the adoption of this ASU on its consolidated financial statements.

XML

Note 1 - Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2019

Notes Tables

Estimated Useful Lives and Methods of Depreciation [Table Text Block]

Description	Life in Years			Method
Banking Premises	15	-	40	Straight-Line and Accelerated
Furniture and Equipment	5	-	10	Straight-Line and Accelerated

XML

Note 2 - Business Acquisitions (Tables)

6 Months Ended

Jun. 30, 2019

Notes Tables

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

Purchase Price Consideration (in thousands) :
Cash Consideration	$	10,238
Total purchase price for PFB branch acquisition	$	10,238
Assets acquired at fair value:
Cash and cash equivalents	$	195
Loans		20,430
Premises and equipment		773
Core deposit intangible		560
Other assets		123
Total fair value of assets acquired	$	22,081
Liabilities assumed at fair value:
Deposits	$	12,032
Other liabilities		13
Total fair value of liabilities assumed	$	12,045
Net Assets acquired at fair value:	$	10,036
Amount of goodwill resulting from acquisition	$	202

Purchase Price Consideration (in thousands):
Shares of CBAN Common Stock Issued to LBC Shareholders as of May 1, 2019		1,054,029
Market Price of CBAN Common Stock on May 1, 2019	$	17.75
Estimated Fair Value of CBAN Common Stock Issued		18,709
Cash Consideration Paid		15,312
Total Consideration	$	34,021
Assets acquired at fair value:
Cash and Cash Equivalents	$	15,678
Investments Securities Available for Sale		49,172
Investments Securities Held to Maturity		1,766
Restricted Investments		479
Loans		130,568
Premises and Equipment		3,009
Core Deposit Intangible		3,100
Other Real Owned		243
Prepaid and Other Assets		6,487
Total Fair Value of Assets Acquired	$	210,502
Liabilities Assumed at Fair Value:
Deposits	$	(189,896	)
FHLB Advances		(1,000	)
Payables and Other Liabilities		(975	)
Total Fair Value of Liabilities Assumed	$	(191,871	)
Net Assets Acquired at Fair Value:	$	18,631
Amount of Goodwill Resulting From Acquisition	$	15,390

Purchase Price Consideration (in thousands):
Cash Consideration Paid	$	833
Total Consideration	$	833
Assets acquired at fair value:
Premises and Equipment	$	78
Premium on Loan Commitments		209
Other Assets		5
Total Fair Value of Assets Acquired	$	292
Liabilities Assumed at Fair Value:
Total Fair Value of Liabilities Assumed	$	-
Net Assets Acquired at Fair Value:	$	292
Amount of Goodwill Resulting From Acquisition	$	541

LBC Bancshares, Inc [Member]

Notes Tables

Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Table Text Block]

Contractually Required Principal and Interest	$	695
Non-accretable Difference		(519	)
Cash Flows Expected to be Collected		176
Accretable Yield		-
Total Purchased Credit-Impaired Loans Acquired	$	176

Schedule of Business Acquisitions by Acquisition, Acquired Loan Data [Table Text Block]

	Fair Value of Acquired Loans at Acquisition Date		Gross Contractual Amounts Receivable at Acquisition Date		Estimate at Acquisition Date of Contractual Cash Flows Not Expected to  be Collected
Acquired receivables subject to ASC 310-30	$	176	$	695	$	519
Acquired receivables not subject to ASC 310-30	$	130,392	$	132,381	$	-

XML

Note 3 - Investment Securities (Tables)

6 Months Ended

Jun. 30, 2019

Notes Tables

Marketable Securities [Table Text Block]

June 30, 2019	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Securities Available for Sale:
U. S. Government Agencies Mortgage-Backed	$	403,165	$	3,406	$	(3,163	)	$	403,408
State, County & Municipal		3,511		63		-			3,574
Corporate Bonds		2,870		-		(13	)		2,857
	$	409,546	$	3,469	$	(3,176	)	$	409,839

December 31, 2018	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Securities Available for Sale:
U. S. Government Agencies Mortgage-Backed	$	356,498	$	303	$	(10,596	)	$	346,205
State, County & Municipal		4,008		18		(37	)		3,989
Corporate Bonds		2,927		-		(55	)		2,872
	$	363,433	$	321	$	(10,688	)	$	353,066

Investments Classified by Contractual Maturity Date [Table Text Block]

	Securities
	Available for Sale
	Amortized Cost		Fair Value
Due In One Year or Less	$	-	$	-
Due After One Year Through Five Years		4,142		4,147
Due After Five Years Through Ten Years		1,135		1,167
Due After Ten Years		1,104		1,117
	$	6,381	$	6,431
Mortgage-Backed Securities		403,165		403,408
	$	409,546	$	409,839

Schedule of Unrealized Loss on Investments [Table Text Block]

	Less Than 12 Months					12 Months or Greater					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
June 30, 2019
U. S. Government Agencies Mortgage-Backed	$	9,891	$	(19	)	$	182,244	$	(3,144	)	$	192,135	$	(3,163	)
State, County and Municipal		-		-			-		-			-		-
Corporate Bonds		2,015		(6	)		842		(7	)		2,857		(13	)
	$	11,906	$	(25	)	$	183,086	$	(3,151	)	$	194,992	$	(3,176	)
December 31. 2018
U.S. Government Agencies Mortgage-Backed	$	39,083	$	(504	)	$	255,747	$	(10,092	)	$	294,830	$	(10,596	)
State, County and Municipal		612		(3	)		1,882		(34	)		2,494		(37	)
Corporate Bonds		2,009		(21	)		863		(34	)		2,872		(55	)
	$	41,704	$	(528	)	$	258,492	$	(10,160	)	$	300,196	$	(10,688	)

XML

Note 4 - Loans (Tables)

6 Months Ended

Jun. 30, 2019

Notes Tables

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

	June 30, 2019
	Legacy Loans		Purchased Loans		Total
Commercial and Agricultural
Commercial	$	43,561	$	24,974	$	68,535
Agricultural		18,561		300		18,861
Real Estate
Commercial Construction		60,949		12,029		72,978
Residential Construction		13,193		5,429		18,622
Commercial		376,063		57,753		433,816
Residential		177,183		28,005		205,188
Farmland		70,413		3,859		74,272
Consumer and Other
Consumer		17,860		5,206		23,066
Other		18,262		1,671		19,933
Total Loans	$	796,045	$	139,226	$	935,271

	December 31, 2018
	Legacy Loans		Purchased Loans		Total
Commercial and Agricultural
Commercial	$	50,181	$	7,229	$	57,410
Agricultural		15,993		806		16,799
Real Estate
Commercial Construction		46,609		1,240		47,849
Residential Construction		12,242		258		12,500
Commercial		366,792		6,742		373,534
Residential		185,699		2,015		187,714
Farmland		62,674		35		62,709
Consumer and Other
Consumer		18,423		62		18,485
Other		5,027		-		5,027
Total Loans	$	763,640	$	18,387	$	782,027

Financing Receivable Credit Quality Indicators [Table Text Block]

	Pass		Special Mention		Substandard		Total Loans
June 30, 2019
Commercial and Agricultural
Commercial	$	41,376	$	1,471	$	714	$	43,561
Agricultural		16,050		1,137		1,374		18,561
Real Estate
Commercial Construction		60,546		117		286		60,949
Residential Construction		12,839		-		354		13,193
Commercial		360,806		8,048		7,209		376,063
Residential		162,927		4,015		10,241		177,183
Farmland		64,519		3,000		2,894		70,413
Consumer and Other
Consumer		17,550		84		226		17,860
Other		18,262		-		-		18,262
Total Loans	$	754,875	$	17,872	$	23,298	$	796,045
December 31, 2018
Commercial and Agricultural
Commercial	$	48,579	$	729	$	873	$	50,181
Agricultural		14,858		637		498		15,993
Real Estate
Commercial Construction		45,847		45		717		46,609
Residential Construction		12,242		-		-		12,242
Commercial		351,397		7,662		7,733		366,792
Residential		168,035		7,107		10,557		185,699
Farmland		58,678		1,912		2,084		62,674
Consumer and Other
Consumer		18,042		59		322		18,423
Other		5,018		5		4		5,027
Total Loans	$	722,696	$	18,156	$	22,788	$	763,640

	Pass		Special Mention		Substandard		Total Loans
June 30, 2019
Commercial and Agricultural
Commercial	$	24,632	$	121	$	221	$	24,974
Agricultural		300		-		-		300
Real Estate
Commercial Construction		11,960		-		69		12,029
Residential Construction		5,429		-		-		5,429
Commercial		57,364		389		-		57,753
Residential		27,682		298		25		28,005
Farmland		3,820		-		39		3,859
Consumer and Other
Consumer		5,202		-		4		5,206
Other		1,671		-		-		1,671
Total Loans	$	138,060	$	808	$	358	$	139,226
December 31, 2018
Commercial and Agricultural
Commercial	$	7,229	$	-	$	-	$	7,229
Agricultural		806		-		-		806
Real Estate
Commercial Construction		1,240		-		-		1,240
Residential Construction		258		-		-		258
Commercial		6,742		-		-		6,742
Residential		2,015		-		-		2,015
Farmland		35		-		-		35
Consumer and Other
Consumer		62		-		-		62
Other		-		-		-		-
Total Loans	$	18,387	$	-	$	-	$	18,387

Financing Receivable, Past Due [Table Text Block]

	Accruing Loans
			90 Days
	30-89 Days		or More		Total Accruing		Nonaccrual
	Past Due		Past Due		Loans Past Due		Loans		Current Loans		Total Loans
June 30, 2019
Commercial and Agricultural
Commercial	$	365	$	-	$	365	$	442	$	42,754	$	43,561
Agricultural		-		-		-		1,304		17,257		18,561
Real Estate
Commercial Construction		123		-		123		36		60,790		60,949
Residential Construction		-		-		-		354		12,839		13,193
Commercial		822		-		822		1,849		373,392		376,063
Residential		2,276		-		2,276		2,786		172,121		177,183
Farmland		139		-		139		2,669		67,605		70,413
Consumer and Other
Consumer		61		2		63		131		17,666		17,860
Other		-		-		-		-		18,262		18,262
Total Loans	$	3,786	$	2	$	3,788	$	9,571	$	782,686	$	796,045
December 31, 2018
Commercial and Agricultural
Commercial	$	282	$	-	$	282	$	637	$	49,262	$	50,181
Agricultural		117		-		117		413		15,463		15,993
Real Estate
Commercial Construction		88		-		88		463		46,058		46,609
Residential Construction		-		-		-		-		12,242		12,242
Commercial		679		-		679		2,966		363,147		366,792
Residential		6,882		-		6,882		2,734		176,083		185,699
Farmland		76		-		76		2,052		60,546		62,674
Consumer and Other
Consumer		110		-		110		213		18,100		18,423
Other		-		-		-		4		5,023		5,027
Total Loans	$	8,234	$	-	$	8,234	$	9,482	$	745,924	$	763,640

	Accruing Loans
			90 Days
	30-89 Days		or More		Total Accruing		Nonaccrual
	Past Due		Past Due		Loans Past Due		Loans		Current Loans		Total Loans
June 30, 2019
Commercial and Agricultural
Commercial	$	178	$	-	$	178	$	43	$	24,753	$	24,974
Agricultural		-		-		-		-		300		300
Real Estate
Commercial Construction		-		-		-		69		11,960		12,029
Residential Construction		-		-		-		-		5,429		5,429
Commercial		-		-		-		-		57,753		57,753
Residential		9		-		9		25		27,971		28,005
Farmland		-		-		-		39		3,820		3,859
Consumer and Other
Consumer		16		-		16		4		5,186		5,206
Other		-		-		-		-		1,671		1,671
Total Loans	$	203	$	-	$	203	$	180	$	138,843	$	139,226
December 31, 2018
Commercial and Agricultural
Commercial	$	-	$	-	$	-	$	-	$	7,229	$	7,229
Agricultural		-		-		-		-		806		806
Real Estate
Commercial Construction		-		-		-		-		1,240		1,240
Residential Construction		-		-		-		-		258		258
Commercial		-		-		-		-		6,742		6,742
Residential		-		-		-		-		2,015		2,015
Farmland		-		-		-		-		35		35
Consumer and Other
Consumer		-		-		-		-		62		62
Other		-		-		-		-		-		-
Total Loans	$	-	$	-	$	-	$	-	$	18,387	$	18,387

Impaired Financing Receivables [Table Text Block]

June 30, 2019
	Unpaid
	Contractual						Average		Interest			Interest
	Principal		Impaired		Related		Recorded		Income			Income
	Balance		Balance		Allowance		Investment		Recognized			Collected
With No Related Allowance Recorded
Commercial	$	442	$	442	$	-	$	525	$	15		$	16
Agricultural		736		716		-		544		9			21
Commercial Construction		104		104		-		115		3			3
Residential Construction		354		354		-		118		4			4
Commercial Real Estate		12,372		11,504		-		12,341		291			293
Residential Real Estate		3,872		3,849		-		3,979		83			98
Farmland		2,670		2,668		-		2,246		(25	)		17
Consumer		132		132		-		159		3			4
Other		-		-		-		2		-			-
		20,682		19,769		-		20,029		383			456
With An Allowance Recorded
Commercial		-		-		-		14		-			-
Agricultural		588		588		588		196		9			33
Commercial Construction		-		-		-		133		-			-
Residential Construction		-		-		-		-		-			-
Commercial Real Estate		3,031		3,031		897		2,902		61			62
Residential Real Estate		267		267		49		270		11			11
Farmland		359		359		32		361		13			12
Consumer		-		-		-		-		-			-
Other		-		-		-		-		-			-
		4,245		4,245		1,566		3,876		94			118
Purchased Credit Impaired Loans
Commercial		68		42		-		14		-			-
Commercial Construction		122		69		-		23		-			-
Residential Real Estate		23		14		-		5		-			-
Farmland		237		40		-		13		-			-
Consumer		195		-		-		-		-			-
		645		165		-		55		-			-
Total
Commercial		510		484		-		553		15			16
Agricultural		1,324		1,304		588		740		18			54
Commercial Construction		226		173		-		271		3			3
Residential Construction		354		354		-		118		4			4
Commercial Real Estate		15,403		14,535		897		15,243		352			355
Residential Real Estate		4,162		4,130		49		4,254		94			109
Farmland		3,266		3,067		32		2,620		(12	)		29
Consumer		327		132		-		159		3			4
Other		-		-		-		2		-			-
	$	25,572	$	24,179	$	1,566	$	23,960	$	477		$	574

December 31, 2018
	Unpaid
	Contractual						Average		Interest		Interest
	Principal		Impaired		Related		Recorded		Income		Income
	Balance		Balance		Allowance		Investment		Recognized		Collected
With No Related Allowance Recorded
Commercial	$	595	$	595	$	-	$	526	$	21	$	24
Agricultural		434		413		-		383		18		25
Commercial Construction		132		132		-		69		8		8
Residential Contruction		-		-				-		-		-
Commercial Real Estate		12,164		12,164		-		11,040		582		583
Residential Real Estate		4,214		4,130		-		4,067		208		213
Farmland		2,054		2,052		-		1,361		53		82
Consumer		213		213		-		197		14		14
Other		4		4		-		1		-		-
		19,810		19,703		-		17,644		904		949
With An Allowance Recorded
Commercial		42		42		6		8		2		2
Agricultural		-		-		-		-		-		-
Commercial Construction		399		399		39		466		-		-
Residential Contruction		-		-		-		-		-		-
Commercial Real Estate		3,691		3,691		1,276		5,121		135		142
Residential Real Estate		274		274		61		98		8		8
Farmland		364		364		36		368		24		25
Consumer		-		-		-		-		-		-
Other		-		-		-		-		-		-
		4,770		4,770		1,418		6,061		169		177
Total
Commercial		637		637		6		534		23		26
Agricultural		434		413		-		383		18		25
Commercial Construction		531		531		39		535		8		8
Residential Contruction		-		-		-		-		-		-
Commercial Real Estate		15,855		15,855		1,276		16,161		717		725
Residential Real Estate		4,488		4,404		61		4,165		216		221
Farmland		2,418		2,416		36		1,729		77		107
Consumer		213		213		-		197		14		14
Other		4		4		-		1		-		-
	$	24,580	$	24,473	$	1,418	$	23,705	$	1,073	$	1,126

June 30, 2018
	Unpaid
	Contractual						Average		Interest		Interest
	Principal		Impaired		Related		Recorded		Income		Income
	Balance		Balance		Allowance		Investment		Recognized		Collected
With No Related Allowance Recorded
Commercial	$	367	$	367	$	-	$	520	$	5	$	5
Agricultural		311		290		-		360		9		12
Commercial Construction		16		16		-		38		1		1
Residential Contruction		-		-		-		-		-		-
Commercial Real Estate		10,201		10,201		-		11,092		235		236
Residential Real Estate		3,892		3,805		-		4,113		87		89
Farmland		980		978		-		896		5		7
Consumer		200		200		-		199		6		6
Other		-		-		-		-		-		-
		15,967		15,857		-		17,218		348		356
With An Allowance Recorded
Commercial		-		-		-		-		-		-
Agricultural		-		-		-		-		-		-
Commercial Construction		482		482		54		487		2		2
Residential Contruction		-		-		-		-		-		-
Commercial Real Estate		5,047		5,047		1,371		5,371		106		99
Residential Real Estate		36		36		21		60		1		1
Farmland		367		367		28		369		12		12
Consumer		-		-		-		-		-		-
Other		-		-		-		-		-		-
		5,932		5,932		1,474		6,287		121		114
Total
Commercial		367		367		-		520		5		5
Agricultural		311		290		-		360		9		12
Commercial Construction		498		498		54		525		3		3
Residential Contruction		-		-		-		-		-		-
Commercial Real Estate		15,248		15,248		1,371		16,463		341		335
Residential Real Estate		3,928		3,841		21		4,173		88		90
Farmland		1,347		1,345		28		1,265		17		19
Consumer		200		200		-		199		6		6
Other		-		-		-		-		-		-
	$	21,899	$	21,789	$	1,474	$	23,505	$	469	$	470

XML

Note 5 - Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2019

Notes Tables

Financing Receivable, Allowance for Credit Loss [Table Text Block]

June 30, 2019
	Beginning										Ending
	Balance		Charge-Offs			Recoveries		Provision			Balance
Commercial and Agricultural
Commercial	$	370	$	(125	)	$	16	$	122		$	383
Agricultural		248		-			1		789			1,038
Real Estate
Commercial Construction		115		(29	)		54		(130	)		10
Residential Construction		16		-			-		(14	)		2
Commercial		4,549		(56	)		38		(790	)		3,741
Residential		1,181		(647	)		159		152			845
Farmland		702		(63	)		3		47			689
Consumer and Other
Consumer		86		(179	)		27		129			63
Other		10		-			3		5			18
	$	7,277	$	(1,099	)	$	301	$	310		$	6,789

June 30, 2018
	Beginning										Ending
	Balance		Charge-Offs			Recoveries		Provision			Balance
Commercial and Agricultural
Commercial	$	447	$	(116	)	$	85	$	28		$	444
Agricultural		186		(123	)		7		192			262
Real Estate
Commercial Construction		1,216		-			38		(1,172	)		82
Residential Construction		-		-			-		-			-
Commercial		3,874		(258	)		37		753			4,406
Residential		968		(89	)		75		112			1,066
Farmland		780		-			9		79			868
Consumer and Other
Consumer		34		(135	)		49		82			30
Other		3		-			2		(4	)		1
	$	7,508	$	(721	)	$	302	$	70		$	7,159

Schedule of Allowance for Loan Losses by Portfolio Segment [Table Text Block]

June 30, 2019
	Ending Allowance Balance								Ending Loan Balance
	Individually		Collectively		Purchased				Individually		Collectively		Purchased
	Evaluated for		Evaluated for		Credit				Evaluated for		Evaluated for		Credit
	Impairment		Impairment		Impaired		Total		Impairment		Impairment		Impaired		Total
Commercial and Agricultural
Commercial	$	-	$	383	$	-	$	383	$	16	$	68,477	$	42	$	68,535
Agricultural		588		450		-		1,038		850		18,011		-		18,861
Real Estate
Commercial Construction		-		10		-		10		67		72,842		69		72,978
Residential Construction		-		2		-		2		354		18,268		-		18,622
Commercial		897		2,844		-		3,741		14,243		419,573		-		433,816
Residential		49		796		-		845		1,914		203,260		14		205,188
Farmland		32		657		-		689		2,752		71,480		40		74,272
Consumer and Other
Consumer		-		63		-		63		-		23,066		-		23,066
Other		-		18		-		18		-		19,933		-		19,933
Total End of Period Balance	$	1,566	$	5,223	$	-	$	6,789	$	20,196	$	914,910	$	165	$	935,271

June 30, 2018
	Ending Allowance Balance						Ending Loan Balance
	Individually		Collectively				Individually		Collectively
	Evaluated for		Evaluated for				Evaluated for		Evaluated for
	Impairment		Impairment		Total		Impairment		Impairment		Total
Commercial and Agricultural
Commercial	$	-	$	444	$	444	$	77	$	44,952	$	45,029
Agricultural		-		262		262		5		20,032		20,037
Real Estate
Commercial Construction		54		28		82		481		48,428		48,909
Residential Construction		-		-		-		-		11,541		11,541
Commercial		1,371		3,035		4,406		15,187		336,876		352,063
Residential		21		1,045		1,066		1,910		185,681		187,591
Farmland		28		840		868		1,032		66,835		67,867
Consumer and Other
Consumer		-		30		30		-		18,746		18,746
Other		-		1		1		-		15,013		15,013
Total End of Period Balance	$	1,474	$	5,685	$	7,159	$	18,692	$	748,104	$	766,796

XML

Note 6 - Other Real Estate Owned (Tables)

6 Months Ended

Jun. 30, 2019

Notes Tables

Other Real Estate, Roll Forward [Table Text Block]

	Six Months Ended			Twelve Months Ended
	June 30, 2019			December 31, 2018
Balance, Beginning	$	1,841		$	4,256
Additions		166			793
Acquired in Acquisition		243			-
Sales of OREO		(2,114	)		(2,949	)
Transfer to Bank Premises		-			(300	)
Gains (Losses) on Sale		955			303
Provision for Losses		(104	)		(262	)
Balance, Ending	$	987		$	1,841

XML

Note 7 - Deposits (Tables)

6 Months Ended

Jun. 30, 2019

Notes Tables

Deposit Liabilities, Type [Table Text Block]

	Six Months Ended		Twelve Months Ended
	June 30, 2019		December 31, 2018
Interest-Bearing Demand	$	591,236	$	471,794
Savings		84,606		79,453
Time, $250,000 and Over		71,359		53,881
Other Time		318,211		287,150
	$	1,065,412	$	892,278

Scheduled Maturities Of Certificates Of Deposits [Table Text Block]

Maturity	June 30, 2019		December 31, 2018
One Year and Under	$	277,759	$	241,366
One to Three Years		98,060		82,412
Three Years and Over		13,751		17,253
	$	389,570	$	341,031

XML

Note 8 - Other Borrowed Money (Tables)

6 Months Ended

Jun. 30, 2019

Notes Tables

Schedule of Long-term Debt Instruments [Table Text Block]

	June 30, 2019		December 31, 2018
Federal Home Loan Bank Advances	$	40,000	$	44,000
Other Borrowings		15,063		-
	$	55,063	$	44,000

Schedule of Maturities of Long-term Debt [Table Text Block]

Year	Amount
2019	$	500
2020		4,500
2021		6,313
2022		19,000
2023		7,000
2024 and After		17,750
	$	55,063

XML

Note 9 - Subordinated Debentures (Trust Preferred Securities) (Tables)

6 Months Ended

Jun. 30, 2019

Notes Tables

Schedule of Subordinated Borrowing [Table Text Block]

				3 Month		Added		Total			5 Year
Description	Date	Amount		Libor Rate		Points		Rate		Maturity	Call Option
Colony Bankcorp Statutory Trust III	6/17/2004	$	4,640		2.41025		2.68		5.09025	6/14/2034	6/17/2009
Colony Bankcorp Capital Trust I	4/13/2006		5,155		2.31888		1.50		3.81888	4/13/2036	4/13/2011
Colony Bankcorp Capital Trust II	3/12/2007		9,279		2.31888		1.65		3.96888	3/12/2037	3/12/2012
Colony Bankcorp Capital Trust III	9/14/2007		5,155		2.58275		1.40		3.98275	9/14/2037	9/14/2012

XML

Note 10 - Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2019

Notes Tables

Summary Of Financial Instrument Outstanding [Table Text Block]

	Contract Amount
	June 3 0 , 201 9		December 31, 2018
Loan Commitments	$	146,481	$	98,736
Letters of Credit		1,627		1,525

XML

Note 11 - Fair Value of Financial Instruments and Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2019

Notes Tables

Fair Value, by Balance Sheet Grouping [Table Text Block]

	Fair Value Measurements at
	June 30, 2019
	Carrying		Estimated		Level		Level		Level
	Value		Fair Value		1		2		3
Assets
Cash and Short-Term Investments	$	75,412	$	75,412	$	75,412	$	-	$	-
Investment Securities Available for Sale		409,839		409,839		-		406,405		3,434
Other Investments, at Cost		3,261		3,261		3,261		-		-
Loans Held for Sale		3,813		3,813		-		3,813		-
Loans, Net		927,917		925,547		-		922,868		2,679
Bank-Owned Life Insurance		21,357		21,357		21,357		-		-
Liabilities
Deposits		1,297,723		1,300,200		908,153		392,047		-
Subordinated Debentures		24,229		24,229		-		24,229		-
Other Borrowed Money		55,063		54,865		-		54,865		-

	Fair Value Measurements at
	December 31, 2018
	Carrying		Estimated		Level		Level		Level
	Value		Fair Value		1		2		3
Assets
Cash and Short-Term Investments	$	60,156	$	60,156	$	60,156	$	-	$	-
Investment Securities Available for Sale		353,066		353,066		-		348,788		4,278
Federal Home Loan Bank Stock		2,978		2,978		2,978		-		-
Loans, Net		774,249		769,809		-		766,457		3,352
Bank-Owned Life Insurance		17,598		17,598		17,598		-		-
Liabilities
Deposits		1,085,125		1,086,503		744,094		342,409		-
Subordinated Debentures		24,229		24,229		-		24,229		-
Other Borrowed Money		44,000		44,032		-		44,032		-

Fair Value Measurements, Recurring and Nonrecurring [Table Text Block]

			Fair Value Measurements at Reporting Date Using
			Quoted Prices in				Significant
			Active Markets for		Significant Other		Unobservable
	Total Fair		Identical Assets		Observable		Inputs
June 30, 2019	Value		(Level 1)		Inputs (Level 2)		(Level 3)
Recurring Securities Available for Sale
U.S. Government Agencies Mortgage-Backed	$	403,408	$	-	$	400,189	$	3,219
State, County and Municipal		3,574		-		3,359		215
Corporate Bonds		2,857		-		2,857		-
	$	409,839	$	-	$	406,405	$	3,434
Nonrecurring
Impaired Loans	$	2,679	$	-	$	-	$	2,679
Other Real Estate	$	714	$	-	$	-	$	714

			Fair Value Measurements at Reporting Date Using
			Quoted Prices in				Significant
			Active Markets for		Significant Other		Unobservable
	Total Fair		Identical Assets		Observable		Inputs
December 31, 2018	Value		(Level 1)		Inputs (Level 2)		(Level 3)
Recurring Securities Available for Sale
U.S. Government Agencies Mortgage-Backed	$	346,205	$	-	$	342,142	$	4,063
State, County and Municipal		3,989		-		3,775		214
Corporate Bonds		2,872		-		2,872		-
	$	353,066	$	-	$	348,789	$	4,277
Nonrecurring
Impaired Loans	$	3,352	$	-	$	-	$	3,352
Other Real Estate	$	1,183	$	-	$	-	$	1,183

Fair Value Measurement Inputs and Valuation Techniques [Table Text Block]

			Valuation	Unobservable	Range
	June 30, 2019		Techniques	Inputs	Weighted Avg
Real Estate
Residential Real Estate		218	Sales Comparison	Adjustment for Differences	(10.86)%	-	6.70%
				Between the Comparable Sales		(2.08)%
				Management Adjustments for	0.00%	-	25.00%
				Age of Appraisals and/or Current		12.50%
				Market Conditions
Commercial Real Estate		2,134	Income Approach	Capitalization Rate	7.75%	-	10.50%
						9.13%
				Management Adjustments for	0.00%	-	10.00%
				Age of Appraisals and/or Current		5.00%
				Market Conditions
Farmland		327	Sales Comparison	Adjustment for Differences	(71.00)%	-	(3.50)%
				Between the Comparable Sales		(37.25)%
				Management Adjustments for	10.00%	-	80.00%
				Age of Appraisals and/or Current		45.00%
				Market Conditions
Other Real Estate Owned		714	Sales Comparison	Adjustment for Differences	(30.00)%	-	25.02%
				Between the Comparable Sales		(2.49)%
				Management Adjustments for	9.82%	-	99.39%
				Age of Appraisals and/or Current		40.36%
				Market Conditions
			Sales Contract	Adjustment for Estimated Costs	0.00%	-	0.00%
				to Sell		(0.00)%
			Income Approach	Discount Rate		10.00%

			Valuation	Unobservable	Range
	December 31, 2018		Techniques	Inputs	Weighted Avg
Real Estate
Commercial Construction	$	360	Sales Comparison	Adjustment for Differences	(6.00)%	-	1,975.00%
				Between the Comparable Sales		984.20%
				Management Adjustments for	0.00%	-	10.00%
				Age of Appraisals and/or Current		5.00%
				Market Conditions
Residential Real Estate		213	Sales Comparison	Adjustment for Differences	(10.86)%	-	6.70%
				Between the Comparable Sales		(2.08)%
				Management Adjustments for	0.00%	-	25.00%
				Age of Appraisals and/or Current		12.50%
				Market Conditions
Commercial Real Estate		2,415	Sales Comparison	Adjustment for Differences	(60.00)%	-	80.00%
				Between the Comparable Sales		10.00%
				Management Adjustments for	0.00%	-	35.00%
				Age of Appraisals and/or Current		17.50%
				Market Conditions
			Income Approach	Capitalization Rate		10.13%
Farmland		328	Sales Comparison	Adjustment for Differences	(71.00)%	-	(3.50)%
				Between the Comparable Sales		(37.25)%
				Management Adjustments for	10.00%	-	80.00%
				Age of Appraisals and/or Current		45.00%
				Market Conditions
Commercial		36	Sales Contract	Adjustment for Estimated Costs	0.00%	-	0.00%
				to Sell		(0.00)%
				Management Adjustment for	0.00%	-	15.00%
				Age of Appraisals and/or Current		15.00%
				Market Conditions
Other Real Estate Owned		1,183	Sales Comparison	Adjustment for Differences	(30.00)%	-	25.02%
				Between the Comparable Sales		(2.49)%
				Management Adjustment for	9.82%	-	99.39%
				Age of Appraisals and/or Current		35.26%
				Market Conditions
			Income Approach	Capitalization Rate		10.00%

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

	Available for Sale Securities
	June 30, 2019			December 31, 2018
Balance, Beginning	$	4,277		$	7,298
Transfers out of Level 3		-			(2,009	)
Maturities		-			-
Purchases		-			-
Paydowns		(883	)		(886	)
Unrealized Gains included in Other Comprehensive Income (Loss)		40			(126	)
Balance, Ending	$	3,434		$	4,277

Fair Value, Inputs, Level 3 [Member]

Notes Tables

Fair Value Measurement Inputs and Valuation Techniques [Table Text Block]

				Unobservable	Range
June 30, 2019	Fair Value		Valuation Techniques	Inputs	(Weighted Avg)
State, County and Municipal	$	215	Discounted Cash Flow	Discount Rate or Yield		N/A*
U. S. Government Agencies Mortgage -Backed		3,219	Fundamental Analysis	Discount Rate or Yield		N/A*

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Note 12 - Regulatory Capital Matters (Tables)

6 Months Ended

Jun. 30, 2019

Notes Tables

Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block]

											To Be Well
											Capitalized Under
						For Capital					Prompt Corrective
	Actual					Adequacy Purposes					Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of June 30, 2019
Total Capital to Risk-Weighted Assets
Consolidated	$	136,952		13.37	%	$	81,961		8.00	%		N/A		N/A
Colony Bank		148,554		14.52			81,856		8.00		$	102,320		10.00	%
Tier I Capital to Risk-Weighted Assets
Consolidated		130,163		12.70			61,470		6.00			N/A		N/A
Colony Bank		141,765		13.86			61,392		6.00			81,856		8.00
Common Equity Tier I Capital to Risk-Weighted Assets
Consolidated		106,663		10.41			46,103		4.50			N/A		N/A
Colony Bank		141,765		13.86			46,044		4.50			66,508		6.50
Tier I Capital to Average Assets
Consolidated		130,163		9.34			55,765		4.00			N/A		N/A
Colony Bank		141,765		10.18			55,684		4.00			69,606		5.00

											To Be Well
											Capitalized Under
						For Capital					Prompt Corrective
	Actual					Adequacy Purposes					Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of December 31, 2018
Total Capital to Risk-Weighted Assets
Consolidated	$	133,900		15.86	%	$	67,527		8.00	%		N/A		N/A
Colony Bank		131,723		15.63			67,418		8.00		$	84,272		10.00	%
Tier I Capital to Risk-Weighted Assets
Consolidated		126,623		15.00			50,645		6.00			N/A		N/A
Colony Bank		124,446		14.77			50,563		6.00			67,418		8.00
Common Equity Tier I Capital to Risk-Weighted Assets
Consolidated		103,123		12.22			37,984		4.50			N/A		N/A
Colony Bank		124,446		14.77			37,923		4.50			54,777		6.50
Tier I Capital to Average Assets
Consolidated		126,623		10.24			49,478		4.00			N/A		N/A
Colony Bank		124,446		10.08			49,396		4.00			61,745		5.00

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Note 14 - Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2019

Notes Tables

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Three Months Ended				Six Months Ended
	June 30				June 30
	2019		2018		2019		2018
Numerator
Net Income Available to Common Stockholders	$	2,101	$	3,069	$	4,936	$	6,257
Denominator
Weighted Average Number of Common Shares Outstanding for Basic Earnings Per Common Share		9,089		8,439		8,765		8,439
Dilutive Effect of Potential Common Stock
Restricted Stock		-		-		-		-
Stock Warrants		-		173		-		196
Weighted-Average Number of Shares Outstanding for Diluted Earnings Per Common Share		9,089		8,612		8,765		8,635
Earnings Per Share - Basic	$	0.23	$	0.36	$	0.56	$	0.74
Earnings Per Share - Diluted	$	0.23	$	0.36	$	0.56	$	0.72

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Note 15 - Accumulated Other Comprehensive Income (Loss) (Tables)

6 Months Ended

Jun. 30, 2019

Notes Tables

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

	June 30, 2019			December 31, 2018
Beginning Balance	$	(8,190	)	$	(6,492	)
Other Comprehensive Income Before Reclassification		8,472			(1,606	)
Amounts Reclassified from Accumulated Other Comprehensive Income		(51	)		(92	)
Net Current Period Other Comprehensive Income		8,421			(1,698	)
Ending Balance	$	231		$	(8,190	)

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Note 16 - Segment Information (Tables)

6 Months Ended

Jun. 30, 2019

Notes Tables

Schedule of Segment Reporting Information, by Segment [Table Text Block]

Three Months Ended June 30, 2019	Bank		Mortgage Banking			Holding Company			Totals
Net Interest Income	$	12,200	$	19		$	(394	)	$	11,825
Provision for Loan Losses		179		-			-			179
Noninterest Income		3,492		500			8			4,000
Noninterest Expenses		11,636		722			656			13,014
Income Taxes		737		-			(206	)		531
Segment Profit (Loss)	$	3,140	$	(203	)	$	(836	)	$	2,101
Segment Assets at June 30, 2019	$	1,498,212	$	4,539		$	4,221		$	1,506,972

Three Months Ended June 30, 2018	Bank		Mortgage Banking		Holding Company			Totals
Net Interest Income	$	10,411	$	-	$	(246	)	$	10,165
Provision for Loan Losses		44		-		-			44
Noninterest Income		2,317		-		7			2,324
Noninterest Expenses		8,325		-		276			8,601
Income Taxes		877		-		(102	)		775
Segment Profit (Loss)	$	3,482	$	-	$	(413	)	$	3,069
Segment Assets at June 30, 2018	$	1,199,709	$	-	$	4,763		$	1,204,472

Six Months Ended June 30, 2019	Bank		Mortgage Banking			Holding Company			Totals
Net Interest Income	$	22,832	$	19		$	(669	)	$	22,182
Provision for Loan Losses		310		-			-			310
Noninterest Income		5,675		643			16			6,334
Noninterest Expenses		20,242		846			952			22,040
Income Taxes		1,548		5			(323	)		1,230
Segment Profit (Loss)	$	6,407	$	(189	)	$	(1,282	)	$	4,936
Segment Assets at June 30, 2019	$	1,498,212	$	4,539		$	4,221		$	1,506,972

Six Months Ended June 30, 2018	Bank		Mortgage Banking		Holding Company			Totals
Net Interest Income	$	20,753	$	-	$	(459	)	$	20,294
Provision for Loan Losses		70		-		-			70
Noninterest Income		4,744		-		14			4,758
Noninterest Expenses		16,605		-		532			17,137
Income Taxes		1,782		-		(194	)		1,588
Segment Profit (Loss)	$	7,040	$	-	$	(783	)	$	6,257
Segment Assets at June 30, 2018	$	1,199,709	$	-	$	4,763		$	1,204,472

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Note 1 - Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Percentage of Loan Portfolio Concentrated in Loans Secured by Real Estate.	86.00%
Discounted Percentage to Account for Selling and Marketing Costs	10.00%
Probability of Uncertain Tax Positions of Being Realized upon Settlement, Minimum	50.00%
Other Assets [Member]
Cash Surrender Value of Life Insurance	$ 21,357	$ 17,598

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Note 1 - Summary of Significant Accounting Policies - Estimated Useful Lives and Methods of Depreciation (Details)	6 Months Ended
	Jun. 30, 2019
Banking Premises [Member]
Property, plant and equipment, depreciation method	Straight-Line and Accelerated
Banking Premises [Member] | Minimum [Member]
Property, plant and equipment, useful life (Year)	15 years
Banking Premises [Member] | Maximum [Member]
Property, plant and equipment, useful life (Year)	40 years
Furniture and Equipment [Member]
Property, plant and equipment, depreciation method	Straight-Line and Accelerated
Furniture and Equipment [Member] | Minimum [Member]
Property, plant and equipment, useful life (Year)	5 years
Furniture and Equipment [Member] | Maximum [Member]
Property, plant and equipment, useful life (Year)	10 years

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Note 2 - Business Acquisitions (Details Textual) - USD ($) $ / shares in Units, $ in Thousands			3 Months Ended		6 Months Ended
	May 01, 2019	Oct. 22, 2018	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Payments to Acquire Businesses, Gross					$ 467
Goodwill, Ending Balance			$ 16,134		16,134		$ 202
Planters First Bank [Member]
Payments to Acquire Businesses, Gross		$ 10,200
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual			58		129
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual			(85)		(159)
Goodwill, Ending Balance		202
Business Acquisition, Goodwill, Expected Tax Deductible Amount		$ 202
LBC Bancshares, Inc [Member]
Payments to Acquire Businesses, Gross	$ 15,312
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual			1,770		1,770
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual			501		501
Goodwill, Ending Balance	$ 15,390
Business Acquisition, Share Price	$ 23.50
Business Acquisition, Number of Shares of Acquiring Entity for Each Share of Acquired Entity	1.3239
Business Acquistion, Percentage of Shares Receiving Stock Consideration	55.00%
Business Acquistion, Percentage of Shares Receiving Cash Consideration	45.00%
Business Acquisition, Minimum Percentage of Merger Consideration Paid in Stock	50.00%
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares	1,054,029
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable	$ 18,709
Business Acquisition, Pro Forma Revenue				$ 2,350		4,610
Business Acquisition, Pro Forma Net Income (Loss)				$ 610		$ 1,150
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Loans Receivable	130,568		130,570		130,570
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums, Total			$ 2,170		$ 2,170
Loans and Leases Receivable, Discount Percentage			1.63%		1.63%
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Acquired During Period, at Acquisition, at Fair Value	176		$ 176		$ 176
Business Combination, Consideration Transferred, Total	34,021
PFB Mortgage [Member]
Payments to Acquire Businesses, Gross	833
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual			228		228
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual			211		211
Goodwill, Ending Balance	541		541		541
Business Acquisition, Goodwill, Expected Tax Deductible Amount			$ 541		$ 541
Business Combination, Consideration Transferred, Total	$ 833

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Note 2 - Business Acquisitions - Assets and Liabilities Acquired (Details) - USD ($) $ / shares in Units, $ in Thousands			6 Months Ended
	May 01, 2019	Oct. 22, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018	Aug. 31, 2018
Cash Consideration			$ 467
Liabilities assumed at fair value:
Goodwill, Ending Balance			16,134		$ 202
Market Price of CBAN Common Stock on May 1, 2019 (in dollars per share)						$ 17.73
Cash Consideration Paid			467
Cash Consideration			467
Planters First Bank, Albany Georgia Branch [Member]
Cash Consideration		$ 10,238
Total purchase price for PFB branch acquisition		10,238
Assets acquired at fair value:
Cash and cash equivalents		195
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Loans Receivable		20,430
Premises and equipment		773
Core deposit intangible		560
Other assets		123
Total fair value of assets acquired		22,081
Liabilities assumed at fair value:
Deposits		12,032
Other liabilities		13
Total fair value of liabilities assumed		12,045
Net Assets acquired at fair value:		10,036
Goodwill, Ending Balance		202
Cash Consideration Paid		10,238
Total purchase price for PFB branch acquisition		10,238
Deposits		(12,032)
Total Fair Value of Liabilities Assumed		(12,045)
Cash Consideration		10,238
Business Combination, Consideration Transferred, Total		10,238
Net Assets Acquired at Fair Value:		$ 10,036
LBC Bancshares, Inc [Member]
Cash Consideration	$ 15,312
Total purchase price for PFB branch acquisition	34,021
Assets acquired at fair value:
Cash and cash equivalents	15,678
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Loans Receivable	130,568		130,570
Premises and equipment	3,009
Core deposit intangible	3,100
Total fair value of assets acquired	210,502
Investments Securities Available for Sale	49,172
Investments Securities Held to Maturity	1,766
Restricted Investments	479
Other Real Owned	243
Prepaid and Other Assets	6,487
Liabilities assumed at fair value:
Deposits	189,896
Total fair value of liabilities assumed	191,871
Net Assets acquired at fair value:	18,631
Goodwill, Ending Balance	$ 15,390
Shares of CBAN Common Stock Issued to LBC Shareholders as of May 1, 2019 (in shares)	1,054,029
Market Price of CBAN Common Stock on May 1, 2019 (in dollars per share)	$ 17.75
Estimated Fair Value of CBAN Common Stock Issued	$ 18,709
Cash Consideration Paid	15,312
Total purchase price for PFB branch acquisition	34,021
Deposits	(189,896)
FHLB Advances	(1,000)
Payables and Other Liabilities	(975)
Total Fair Value of Liabilities Assumed	(191,871)
Cash Consideration	15,312
Business Combination, Consideration Transferred, Total	34,021
Net Assets Acquired at Fair Value:	18,631
PFB Mortgage [Member]
Cash Consideration	833
Total purchase price for PFB branch acquisition	833
Assets acquired at fair value:
Premises and equipment	78
Total fair value of assets acquired	292
Premium on Loan Commitments	209
Other Assets	5
Liabilities assumed at fair value:
Total fair value of liabilities assumed
Net Assets acquired at fair value:	292
Goodwill, Ending Balance	541		$ 541
Cash Consideration Paid	833
Total purchase price for PFB branch acquisition	833
Total Fair Value of Liabilities Assumed
Cash Consideration	833
Business Combination, Consideration Transferred, Total	833
Net Assets Acquired at Fair Value:	$ 292

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Note 2 - Business Acquisitions - Contractually Required Principal and Interest Cash Payments (Details) - LBC Bancshares, Inc [Member] - USD ($) $ in Thousands	Jun. 30, 2019	May 01, 2019
Contractually Required Principal and Interest	$ 695	$ 695
Non-accretable Difference	(519)	(519)
Cash Flows Expected to be Collected	176
Accretable Yield
Total Purchased Credit-Impaired Loans Acquired	$ 176	$ 176

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Note 2 - Business Acquisitions - Loan Data for the LBC Acquisition (Details) - LBC Bancshares, Inc [Member] - USD ($) $ in Thousands	Jun. 30, 2019	May 01, 2019
Acquired receivables subject to ASC 310-30, fair value	$ 176	$ 176
Contractually Required Principal and Interest	695	695
Acquired receivables subject to ASC 310-30, estimate of contractual cash flows not expected to be collected	$ 519	519
Acquired receivables not subject to ASC 310-30, fair value		130,392
Acquired receivables not subject to ASC 310-30, gross contractual amounts receivable		132,381
Acquired receivables not subject to ASC 310-30, estimate of contractual cash flows not expected to be collected

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Note 3 - Investment Securities (Details Textual) - USD ($)	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Proceeds from Sale of Debt Securities, Available-for-sale	$ 56,821,000	$ 11,268,000
Debt Securities, Available-for-sale, Realized Gain	117,000	116,000
Debt Securities, Available-for-sale, Realized Loss	52,000	0
Proceeds from Sale of Held-to-maturity Securities	1,766,000	0
Debt Securities, Held-to-maturity, Sold, Realized Gain (Loss)	0	$ 0
Security Owned and Pledged as Collateral, Fair Value, Total	$ 169,821,000		$ 178,978,000
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Total	103
Depreciated Debt Securities With Unrealized Losses	1.60%
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities, Total	$ 0

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Note 3 - Investment Securities - Schedule of Investment Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Available for sale securities, amortized cost	$ 409,546	$ 363,433
Available for sale securities, gross unrealized gains	3,469	321
Available for sale securities, gross unrealized losses	(3,176)	(10,688)
Investment Securities Available for Sale, at Fair Value	409,839	353,066
US Government Agencies Debt Securities [Member]
Available for sale securities, amortized cost	403,165	356,498
Available for sale securities, gross unrealized gains	3,406	303
Available for sale securities, gross unrealized losses	(3,163)	(10,596)
Investment Securities Available for Sale, at Fair Value	403,408	346,205
US States and Political Subdivisions Debt Securities [Member]
Available for sale securities, amortized cost	3,511	4,008
Available for sale securities, gross unrealized gains	63	18
Available for sale securities, gross unrealized losses		(37)
Investment Securities Available for Sale, at Fair Value	3,574	3,989
Corporate Debt Securities [Member]
Available for sale securities, amortized cost	2,870	2,927
Available for sale securities, gross unrealized gains
Available for sale securities, gross unrealized losses	(13)	(55)
Investment Securities Available for Sale, at Fair Value	$ 2,857	$ 2,872

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Note 3 - Investment Securities - Amortized Cost and Fair Value of Investment Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Due In One Year or Less, amortized cost
Due In One Year or Less, fair value
Due After One Year Through Five Years, amortized cost	4,142
Due After One Year Through Five Years, fair value	4,147
Due After Five Years Through Ten Years, amortized cost	1,135
Due After Five Years Through Ten Years, fair value	1,167
Due After Ten Years, amortized cost	1,104
Due After Ten Years, fair value	1,117
Amortized cost with single maturity date	6,381
Fair value with single maturity date	6,431
Mortgage-Backed Securities, amortized cost	403,165
Mortgage-Backed Securities, fair value	403,408
Amortized cost	409,546	$ 363,433
Fair Value	$ 409,839	$ 353,066

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Note 3 - Investment Securities - Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Continuous unrealized loss, less than 12 months, fair value	$ 11,906	$ 41,704
Continuous unrealized loss, less than 12 months, gross unrealized losses	(25)	(528)
Continuous unrealized loss, greater than 12 months, fair value	183,086	258,492
Continuous unrealized loss, greater than 12 months, gross unrealized losses	(3,151)	(10,160)
Continuous unrealized loss, fair value	194,992	300,196
Continuous unrealized loss, gross unrealized losses	(3,176)	(10,688)
US Government Agencies Debt Securities [Member]
Continuous unrealized loss, less than 12 months, fair value	9,891	39,083
Continuous unrealized loss, less than 12 months, gross unrealized losses	(19)	(504)
Continuous unrealized loss, greater than 12 months, fair value	182,244	255,747
Continuous unrealized loss, greater than 12 months, gross unrealized losses	(3,144)	(10,092)
Continuous unrealized loss, fair value	192,135	294,830
Continuous unrealized loss, gross unrealized losses	(3,163)	(10,596)
US States and Political Subdivisions Debt Securities [Member]
Continuous unrealized loss, less than 12 months, fair value		612
Continuous unrealized loss, less than 12 months, gross unrealized losses		(3)
Continuous unrealized loss, greater than 12 months, fair value		1,882
Continuous unrealized loss, greater than 12 months, gross unrealized losses		(34)
Continuous unrealized loss, fair value		2,494
Continuous unrealized loss, gross unrealized losses		(37)
Corporate Debt Securities [Member]
Continuous unrealized loss, less than 12 months, fair value	2,015	2,009
Continuous unrealized loss, less than 12 months, gross unrealized losses	(6)	(21)
Continuous unrealized loss, greater than 12 months, fair value	842	863
Continuous unrealized loss, greater than 12 months, gross unrealized losses	(7)	(34)
Continuous unrealized loss, fair value	2,857	2,872
Continuous unrealized loss, gross unrealized losses	$ (13)	$ (55)

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Note 4 - Loans (Details Textual)	3 Months Ended		6 Months Ended
	Jun. 30, 2019 USD ($)	Jun. 30, 2018 USD ($)	Jun. 30, 2019 USD ($)	Jun. 30, 2018 USD ($)	Dec. 31, 2018 USD ($)
Loan Balance For Reviewing High Risk Loans Minimum	$ 250,000		$ 250,000		$ 250,000
Impaired Financing Receivable, Recorded Investment, Total	24,179,000	$ 21,789,000	24,179,000	$ 21,789,000	24,473,000
Impaired Financing Receivable, Related Allowance	1,566,000	$ 1,474,000	1,566,000	$ 1,474,000	1,418,000
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	$ 0		$ 0
Financing Receivable, Modifications, Number of Contracts	0	0	0	0
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts	0	0	0	1
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down			$ 131,000
Financial Asset Acquired with Credit Deterioration [Member]
Impaired Financing Receivable, Recorded Investment, Total	$ 165,000	$ 0	165,000	$ 0	0
Impaired Financing Receivable, Related Allowance		$ 0		$ 0	$ 0

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Note 4 - Loans - Segregated by Class of Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2018
Loans	$ 935,271	$ 782,027	$ 766,796
Financial Asset Originated [Member]
Loans	796,045	763,640
Financial Assets Acquired [Member]
Loans	139,226	18,387
Commercial and Agricultural Portfolio Segment [Member] | Commercial [Member]
Loans	68,535	57,410	45,029
Commercial and Agricultural Portfolio Segment [Member] | Commercial [Member] | Financial Asset Originated [Member]
Loans	43,561	50,181
Commercial and Agricultural Portfolio Segment [Member] | Commercial [Member] | Financial Assets Acquired [Member]
Loans	24,974	7,229
Commercial and Agricultural Portfolio Segment [Member] | Agricultural [Member]
Loans	18,861	16,799	20,037
Commercial and Agricultural Portfolio Segment [Member] | Agricultural [Member] | Financial Asset Originated [Member]
Loans	18,561	15,993
Commercial and Agricultural Portfolio Segment [Member] | Agricultural [Member] | Financial Assets Acquired [Member]
Loans	300	806
Real Estate Portfolio Segment [Member] | Commercial [Member]
Loans	433,816	373,534	352,063
Real Estate Portfolio Segment [Member] | Commercial [Member] | Financial Asset Originated [Member]
Loans	376,063	366,792
Real Estate Portfolio Segment [Member] | Commercial [Member] | Financial Assets Acquired [Member]
Loans	57,753	6,742
Real Estate Portfolio Segment [Member] | Commercial Construction [Member]
Loans	72,978	47,849	48,909
Real Estate Portfolio Segment [Member] | Commercial Construction [Member] | Financial Asset Originated [Member]
Loans	60,949	46,609
Real Estate Portfolio Segment [Member] | Commercial Construction [Member] | Financial Assets Acquired [Member]
Loans	12,029	1,240
Real Estate Portfolio Segment [Member] | Residential Construction [Member]
Loans	18,622	12,500	11,541
Real Estate Portfolio Segment [Member] | Residential Construction [Member] | Financial Asset Originated [Member]
Loans	13,193	12,242
Real Estate Portfolio Segment [Member] | Residential Construction [Member] | Financial Assets Acquired [Member]
Loans	5,429	258
Real Estate Portfolio Segment [Member] | Residential [Member]
Loans	205,188	187,714	187,591
Real Estate Portfolio Segment [Member] | Residential [Member] | Financial Asset Originated [Member]
Loans	177,183	185,699
Real Estate Portfolio Segment [Member] | Residential [Member] | Financial Assets Acquired [Member]
Loans	28,005	2,015
Real Estate Portfolio Segment [Member] | Farmland [Member]
Loans	74,272	62,709	67,867
Real Estate Portfolio Segment [Member] | Farmland [Member] | Financial Asset Originated [Member]
Loans	70,413	62,674
Real Estate Portfolio Segment [Member] | Farmland [Member] | Financial Assets Acquired [Member]
Loans	3,859	35
Consumer and Other Portfolio Segment [Member] | Consumer [Member]
Loans	23,066	18,485	18,746
Consumer and Other Portfolio Segment [Member] | Consumer [Member] | Financial Asset Originated [Member]
Loans	17,860	18,423
Consumer and Other Portfolio Segment [Member] | Consumer [Member] | Financial Assets Acquired [Member]
Loans	5,206	62
Consumer and Other Portfolio Segment [Member] | Other [Member]
Loans	19,933	5,027	$ 15,013
Consumer and Other Portfolio Segment [Member] | Other [Member] | Financial Asset Originated [Member]
Loans	18,262	5,027
Consumer and Other Portfolio Segment [Member] | Other [Member] | Financial Assets Acquired [Member]
Loans	$ 1,671

XML

Note 4 - Loans - Loan Portfolio by Credit Quality Indicator (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2018
Loans	$ 935,271	$ 782,027	$ 766,796
Financial Asset Originated [Member]
Loans	796,045	763,640
Financial Assets Acquired [Member]
Loans	139,226	18,387
Pass [Member] | Financial Asset Originated [Member]
Loans	754,875	722,696
Pass [Member] | Financial Assets Acquired [Member]
Loans	138,060	18,387
Special Mention [Member] | Financial Asset Originated [Member]
Loans	17,872	18,156
Special Mention [Member] | Financial Assets Acquired [Member]
Loans	808
Substandard [Member] | Financial Asset Originated [Member]
Loans	23,298	22,788
Substandard [Member] | Financial Assets Acquired [Member]
Loans	358
Commercial and Agricultural Portfolio Segment [Member] | Commercial [Member]
Loans	68,535	57,410	45,029
Commercial and Agricultural Portfolio Segment [Member] | Commercial [Member] | Financial Asset Originated [Member]
Loans	43,561	50,181
Commercial and Agricultural Portfolio Segment [Member] | Commercial [Member] | Financial Assets Acquired [Member]
Loans	24,974	7,229
Commercial and Agricultural Portfolio Segment [Member] | Commercial [Member] | Pass [Member] | Financial Asset Originated [Member]
Loans	41,376	48,579
Commercial and Agricultural Portfolio Segment [Member] | Commercial [Member] | Pass [Member] | Financial Assets Acquired [Member]
Loans	24,632	7,229
Commercial and Agricultural Portfolio Segment [Member] | Commercial [Member] | Special Mention [Member] | Financial Asset Originated [Member]
Loans	1,471	729
Commercial and Agricultural Portfolio Segment [Member] | Commercial [Member] | Special Mention [Member] | Financial Assets Acquired [Member]
Loans	121
Commercial and Agricultural Portfolio Segment [Member] | Commercial [Member] | Substandard [Member] | Financial Asset Originated [Member]
Loans	714	873
Commercial and Agricultural Portfolio Segment [Member] | Commercial [Member] | Substandard [Member] | Financial Assets Acquired [Member]
Loans	221
Commercial and Agricultural Portfolio Segment [Member] | Agricultural [Member]
Loans	18,861	16,799	20,037
Commercial and Agricultural Portfolio Segment [Member] | Agricultural [Member] | Financial Asset Originated [Member]
Loans	18,561	15,993
Commercial and Agricultural Portfolio Segment [Member] | Agricultural [Member] | Financial Assets Acquired [Member]
Loans	300	806
Commercial and Agricultural Portfolio Segment [Member] | Agricultural [Member] | Pass [Member] | Financial Asset Originated [Member]
Loans	16,050	14,858
Commercial and Agricultural Portfolio Segment [Member] | Agricultural [Member] | Pass [Member] | Financial Assets Acquired [Member]
Loans	300	806
Commercial and Agricultural Portfolio Segment [Member] | Agricultural [Member] | Special Mention [Member] | Financial Asset Originated [Member]
Loans	1,137	637
Commercial and Agricultural Portfolio Segment [Member] | Agricultural [Member] | Special Mention [Member] | Financial Assets Acquired [Member]
Loans
Commercial and Agricultural Portfolio Segment [Member] | Agricultural [Member] | Substandard [Member] | Financial Asset Originated [Member]
Loans	1,374	498
Commercial and Agricultural Portfolio Segment [Member] | Agricultural [Member] | Substandard [Member] | Financial Assets Acquired [Member]
Loans
Real Estate Portfolio Segment [Member] | Commercial [Member]
Loans	433,816	373,534	352,063
Real Estate Portfolio Segment [Member] | Commercial [Member] | Financial Asset Originated [Member]
Loans	376,063	366,792
Real Estate Portfolio Segment [Member] | Commercial [Member] | Financial Assets Acquired [Member]
Loans	57,753	6,742
Real Estate Portfolio Segment [Member] | Commercial [Member] | Pass [Member] | Financial Asset Originated [Member]
Loans	360,806	351,397
Real Estate Portfolio Segment [Member] | Commercial [Member] | Pass [Member] | Financial Assets Acquired [Member]
Loans	57,364	6,742
Real Estate Portfolio Segment [Member] | Commercial [Member] | Special Mention [Member] | Financial Asset Originated [Member]
Loans	8,048	7,662
Real Estate Portfolio Segment [Member] | Commercial [Member] | Special Mention [Member] | Financial Assets Acquired [Member]
Loans	389
Real Estate Portfolio Segment [Member] | Commercial [Member] | Substandard [Member] | Financial Asset Originated [Member]
Loans	7,209	7,733
Real Estate Portfolio Segment [Member] | Commercial [Member] | Substandard [Member] | Financial Assets Acquired [Member]
Loans
Real Estate Portfolio Segment [Member] | Commercial Construction [Member]
Loans	72,978	47,849	48,909
Real Estate Portfolio Segment [Member] | Commercial Construction [Member] | Financial Asset Originated [Member]
Loans	60,949	46,609
Real Estate Portfolio Segment [Member] | Commercial Construction [Member] | Financial Assets Acquired [Member]
Loans	12,029	1,240
Real Estate Portfolio Segment [Member] | Commercial Construction [Member] | Pass [Member] | Financial Asset Originated [Member]
Loans	60,546	45,847
Real Estate Portfolio Segment [Member] | Commercial Construction [Member] | Pass [Member] | Financial Assets Acquired [Member]
Loans	11,960	1,240
Real Estate Portfolio Segment [Member] | Commercial Construction [Member] | Special Mention [Member] | Financial Asset Originated [Member]
Loans	117	45
Real Estate Portfolio Segment [Member] | Commercial Construction [Member] | Special Mention [Member] | Financial Assets Acquired [Member]
Loans
Real Estate Portfolio Segment [Member] | Commercial Construction [Member] | Substandard [Member] | Financial Asset Originated [Member]
Loans	286	717
Real Estate Portfolio Segment [Member] | Commercial Construction [Member] | Substandard [Member] | Financial Assets Acquired [Member]
Loans	69
Real Estate Portfolio Segment [Member] | Residential Construction [Member]
Loans	18,622	12,500	11,541
Real Estate Portfolio Segment [Member] | Residential Construction [Member] | Financial Asset Originated [Member]
Loans	13,193	12,242
Real Estate Portfolio Segment [Member] | Residential Construction [Member] | Financial Assets Acquired [Member]
Loans	5,429	258
Real Estate Portfolio Segment [Member] | Residential Construction [Member] | Pass [Member] | Financial Asset Originated [Member]
Loans	12,839	12,242
Real Estate Portfolio Segment [Member] | Residential Construction [Member] | Pass [Member] | Financial Assets Acquired [Member]
Loans	5,429	258
Real Estate Portfolio Segment [Member] | Residential Construction [Member] | Special Mention [Member] | Financial Asset Originated [Member]
Loans	0
Real Estate Portfolio Segment [Member] | Residential Construction [Member] | Special Mention [Member] | Financial Assets Acquired [Member]
Loans	0
Real Estate Portfolio Segment [Member] | Residential Construction [Member] | Substandard [Member] | Financial Asset Originated [Member]
Loans	354
Real Estate Portfolio Segment [Member] | Residential Construction [Member] | Substandard [Member] | Financial Assets Acquired [Member]
Loans
Real Estate Portfolio Segment [Member] | Residential [Member]
Loans	205,188	187,714	187,591
Real Estate Portfolio Segment [Member] | Residential [Member] | Financial Asset Originated [Member]
Loans	177,183	185,699
Real Estate Portfolio Segment [Member] | Residential [Member] | Financial Assets Acquired [Member]
Loans	28,005	2,015
Real Estate Portfolio Segment [Member] | Residential [Member] | Pass [Member] | Financial Asset Originated [Member]
Loans	162,927	168,035
Real Estate Portfolio Segment [Member] | Residential [Member] | Pass [Member] | Financial Assets Acquired [Member]
Loans	27,682	2,015
Real Estate Portfolio Segment [Member] | Residential [Member] | Special Mention [Member] | Financial Asset Originated [Member]
Loans	4,015	7,107
Real Estate Portfolio Segment [Member] | Residential [Member] | Special Mention [Member] | Financial Assets Acquired [Member]
Loans	298
Real Estate Portfolio Segment [Member] | Residential [Member] | Substandard [Member] | Financial Asset Originated [Member]
Loans	10,241	10,557
Real Estate Portfolio Segment [Member] | Residential [Member] | Substandard [Member] | Financial Assets Acquired [Member]
Loans	25
Real Estate Portfolio Segment [Member] | Farmland [Member]
Loans	74,272	62,709	67,867
Real Estate Portfolio Segment [Member] | Farmland [Member] | Financial Asset Originated [Member]
Loans	70,413	62,674
Real Estate Portfolio Segment [Member] | Farmland [Member] | Financial Assets Acquired [Member]
Loans	3,859	35
Real Estate Portfolio Segment [Member] | Farmland [Member] | Pass [Member] | Financial Asset Originated [Member]
Loans	64,519	58,678
Real Estate Portfolio Segment [Member] | Farmland [Member] | Pass [Member] | Financial Assets Acquired [Member]
Loans	3,820	35
Real Estate Portfolio Segment [Member] | Farmland [Member] | Special Mention [Member] | Financial Asset Originated [Member]
Loans	3,000	1,912
Real Estate Portfolio Segment [Member] | Farmland [Member] | Special Mention [Member] | Financial Assets Acquired [Member]
Loans
Real Estate Portfolio Segment [Member] | Farmland [Member] | Substandard [Member] | Financial Asset Originated [Member]
Loans	2,894	2,084
Real Estate Portfolio Segment [Member] | Farmland [Member] | Substandard [Member] | Financial Assets Acquired [Member]
Loans	39
Consumer and Other Portfolio Segment [Member] | Consumer [Member]
Loans	23,066	18,485	18,746
Consumer and Other Portfolio Segment [Member] | Consumer [Member] | Financial Asset Originated [Member]
Loans	17,860	18,423
Consumer and Other Portfolio Segment [Member] | Consumer [Member] | Financial Assets Acquired [Member]
Loans	5,206	62
Consumer and Other Portfolio Segment [Member] | Consumer [Member] | Pass [Member] | Financial Asset Originated [Member]
Loans	17,550	18,042
Consumer and Other Portfolio Segment [Member] | Consumer [Member] | Pass [Member] | Financial Assets Acquired [Member]
Loans	5,202	62
Consumer and Other Portfolio Segment [Member] | Consumer [Member] | Special Mention [Member] | Financial Asset Originated [Member]
Loans	84	59
Consumer and Other Portfolio Segment [Member] | Consumer [Member] | Special Mention [Member] | Financial Assets Acquired [Member]
Loans
Consumer and Other Portfolio Segment [Member] | Consumer [Member] | Substandard [Member] | Financial Asset Originated [Member]
Loans	226	322
Consumer and Other Portfolio Segment [Member] | Consumer [Member] | Substandard [Member] | Financial Assets Acquired [Member]
Loans	4
Consumer and Other Portfolio Segment [Member] | Other [Member]
Loans	19,933	5,027	$ 15,013
Consumer and Other Portfolio Segment [Member] | Other [Member] | Financial Asset Originated [Member]
Loans	18,262	5,027
Consumer and Other Portfolio Segment [Member] | Other [Member] | Financial Assets Acquired [Member]
Loans	1,671
Consumer and Other Portfolio Segment [Member] | Other [Member] | Pass [Member] | Financial Asset Originated [Member]
Loans	18,262	5,018
Consumer and Other Portfolio Segment [Member] | Other [Member] | Pass [Member] | Financial Assets Acquired [Member]
Loans	1,671
Consumer and Other Portfolio Segment [Member] | Other [Member] | Special Mention [Member] | Financial Asset Originated [Member]
Loans		5
Consumer and Other Portfolio Segment [Member] | Other [Member] | Special Mention [Member] | Financial Assets Acquired [Member]
Loans
Consumer and Other Portfolio Segment [Member] | Other [Member] | Substandard [Member] | Financial Asset Originated [Member]
Loans		4
Consumer and Other Portfolio Segment [Member] | Other [Member] | Substandard [Member] | Financial Assets Acquired [Member]
Loans

XML

Note 4 - Loans - Age Analysis of Past Due Loans and Nonaccrual Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2018
Loans	$ 935,271	$ 782,027	$ 766,796
Financial Asset Originated [Member]
Accruing loans past due	3,788	8,234
Nonaccrual loans	9,571	9,482
Current loans	782,686	745,924
Loans	796,045	763,640
Financial Assets Acquired [Member]
Accruing loans past due	203
Nonaccrual loans	180
Current loans	138,843	18,387
Loans	139,226	18,387
Financing Receivables, 30-89 Days Past Due [Member] | Financial Asset Originated [Member]
Accruing loans past due	3,786	8,234
Financing Receivables, 30-89 Days Past Due [Member] | Financial Assets Acquired [Member]
Accruing loans past due	203
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Financial Asset Originated [Member]
Accruing loans past due	2
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Financial Assets Acquired [Member]
Accruing loans past due
Commercial and Agricultural Portfolio Segment [Member] | Commercial [Member]
Loans	68,535	57,410	45,029
Commercial and Agricultural Portfolio Segment [Member] | Commercial [Member] | Financial Asset Originated [Member]
Accruing loans past due	365	282
Nonaccrual loans	442	637
Current loans	42,754	49,262
Loans	43,561	50,181
Commercial and Agricultural Portfolio Segment [Member] | Commercial [Member] | Financial Assets Acquired [Member]
Accruing loans past due	178
Nonaccrual loans	43
Current loans	24,753	7,229
Loans	24,974	7,229
Commercial and Agricultural Portfolio Segment [Member] | Commercial [Member] | Financing Receivables, 30-89 Days Past Due [Member] | Financial Asset Originated [Member]
Accruing loans past due	365	282
Commercial and Agricultural Portfolio Segment [Member] | Commercial [Member] | Financing Receivables, 30-89 Days Past Due [Member] | Financial Assets Acquired [Member]
Accruing loans past due	178
Commercial and Agricultural Portfolio Segment [Member] | Commercial [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Financial Asset Originated [Member]
Accruing loans past due
Commercial and Agricultural Portfolio Segment [Member] | Commercial [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Financial Assets Acquired [Member]
Accruing loans past due
Commercial and Agricultural Portfolio Segment [Member] | Agricultural [Member]
Loans	18,861	16,799	20,037
Commercial and Agricultural Portfolio Segment [Member] | Agricultural [Member] | Financial Asset Originated [Member]
Accruing loans past due		117
Nonaccrual loans	1,304	413
Current loans	17,257	15,463
Loans	18,561	15,993
Commercial and Agricultural Portfolio Segment [Member] | Agricultural [Member] | Financial Assets Acquired [Member]
Accruing loans past due
Nonaccrual loans
Current loans	300	806
Loans	300	806
Commercial and Agricultural Portfolio Segment [Member] | Agricultural [Member] | Financing Receivables, 30-89 Days Past Due [Member] | Financial Asset Originated [Member]
Accruing loans past due		117
Commercial and Agricultural Portfolio Segment [Member] | Agricultural [Member] | Financing Receivables, 30-89 Days Past Due [Member] | Financial Assets Acquired [Member]
Accruing loans past due
Commercial and Agricultural Portfolio Segment [Member] | Agricultural [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Financial Asset Originated [Member]
Accruing loans past due
Commercial and Agricultural Portfolio Segment [Member] | Agricultural [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Financial Assets Acquired [Member]
Accruing loans past due
Real Estate Portfolio Segment [Member] | Commercial [Member]
Loans	433,816	373,534	352,063
Real Estate Portfolio Segment [Member] | Commercial [Member] | Financial Asset Originated [Member]
Accruing loans past due	822	679
Nonaccrual loans	1,849	2,966
Current loans	373,392	363,147
Loans	376,063	366,792
Real Estate Portfolio Segment [Member] | Commercial [Member] | Financial Assets Acquired [Member]
Accruing loans past due
Nonaccrual loans
Current loans	57,753	6,742
Loans	57,753	6,742
Real Estate Portfolio Segment [Member] | Commercial [Member] | Financing Receivables, 30-89 Days Past Due [Member] | Financial Asset Originated [Member]
Accruing loans past due	822	679
Real Estate Portfolio Segment [Member] | Commercial [Member] | Financing Receivables, 30-89 Days Past Due [Member] | Financial Assets Acquired [Member]
Accruing loans past due
Real Estate Portfolio Segment [Member] | Commercial [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Financial Asset Originated [Member]
Accruing loans past due
Real Estate Portfolio Segment [Member] | Commercial [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Financial Assets Acquired [Member]
Accruing loans past due
Real Estate Portfolio Segment [Member] | Commercial Construction [Member]
Loans	72,978	47,849	48,909
Real Estate Portfolio Segment [Member] | Commercial Construction [Member] | Financial Asset Originated [Member]
Accruing loans past due	123	88
Nonaccrual loans	36	463
Current loans	60,790	46,058
Loans	60,949	46,609
Real Estate Portfolio Segment [Member] | Commercial Construction [Member] | Financial Assets Acquired [Member]
Accruing loans past due
Nonaccrual loans	69
Current loans	11,960	1,240
Loans	12,029	1,240
Real Estate Portfolio Segment [Member] | Commercial Construction [Member] | Financing Receivables, 30-89 Days Past Due [Member] | Financial Asset Originated [Member]
Accruing loans past due	123	88
Real Estate Portfolio Segment [Member] | Commercial Construction [Member] | Financing Receivables, 30-89 Days Past Due [Member] | Financial Assets Acquired [Member]
Accruing loans past due
Real Estate Portfolio Segment [Member] | Commercial Construction [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Financial Asset Originated [Member]
Accruing loans past due
Real Estate Portfolio Segment [Member] | Commercial Construction [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Financial Assets Acquired [Member]
Accruing loans past due
Real Estate Portfolio Segment [Member] | Residential Construction [Member]
Loans	18,622	12,500	11,541
Real Estate Portfolio Segment [Member] | Residential Construction [Member] | Financial Asset Originated [Member]
Accruing loans past due
Nonaccrual loans	354
Current loans	12,839	12,242
Loans	13,193	12,242
Real Estate Portfolio Segment [Member] | Residential Construction [Member] | Financial Assets Acquired [Member]
Accruing loans past due
Nonaccrual loans
Current loans	5,429	258
Loans	5,429	258
Real Estate Portfolio Segment [Member] | Residential Construction [Member] | Financing Receivables, 30-89 Days Past Due [Member] | Financial Asset Originated [Member]
Accruing loans past due
Real Estate Portfolio Segment [Member] | Residential Construction [Member] | Financing Receivables, 30-89 Days Past Due [Member] | Financial Assets Acquired [Member]
Accruing loans past due
Real Estate Portfolio Segment [Member] | Residential Construction [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Financial Asset Originated [Member]
Accruing loans past due
Real Estate Portfolio Segment [Member] | Residential Construction [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Financial Assets Acquired [Member]
Accruing loans past due
Real Estate Portfolio Segment [Member] | Residential [Member]
Loans	205,188	187,714	187,591
Real Estate Portfolio Segment [Member] | Residential [Member] | Financial Asset Originated [Member]
Accruing loans past due	2,276	6,882
Nonaccrual loans	2,786	2,734
Current loans	172,121	176,083
Loans	177,183	185,699
Real Estate Portfolio Segment [Member] | Residential [Member] | Financial Assets Acquired [Member]
Accruing loans past due	9
Nonaccrual loans	25
Current loans	27,971	2,015
Loans	28,005	2,015
Real Estate Portfolio Segment [Member] | Residential [Member] | Financing Receivables, 30-89 Days Past Due [Member] | Financial Asset Originated [Member]
Accruing loans past due	2,276	6,882
Real Estate Portfolio Segment [Member] | Residential [Member] | Financing Receivables, 30-89 Days Past Due [Member] | Financial Assets Acquired [Member]
Accruing loans past due	9
Real Estate Portfolio Segment [Member] | Residential [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Financial Asset Originated [Member]
Accruing loans past due
Real Estate Portfolio Segment [Member] | Residential [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Financial Assets Acquired [Member]
Accruing loans past due
Real Estate Portfolio Segment [Member] | Farmland [Member]
Loans	74,272	62,709	67,867
Real Estate Portfolio Segment [Member] | Farmland [Member] | Financial Asset Originated [Member]
Accruing loans past due	139	76
Nonaccrual loans	2,669	2,052
Current loans	67,605	60,546
Loans	70,413	62,674
Real Estate Portfolio Segment [Member] | Farmland [Member] | Financial Assets Acquired [Member]
Accruing loans past due
Nonaccrual loans	39
Current loans	3,820	35
Loans	3,859	35
Real Estate Portfolio Segment [Member] | Farmland [Member] | Financing Receivables, 30-89 Days Past Due [Member] | Financial Asset Originated [Member]
Accruing loans past due	139	76
Real Estate Portfolio Segment [Member] | Farmland [Member] | Financing Receivables, 30-89 Days Past Due [Member] | Financial Assets Acquired [Member]
Accruing loans past due
Real Estate Portfolio Segment [Member] | Farmland [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Financial Asset Originated [Member]
Accruing loans past due
Real Estate Portfolio Segment [Member] | Farmland [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Financial Assets Acquired [Member]
Accruing loans past due
Consumer and Other Portfolio Segment [Member] | Consumer [Member]
Loans	23,066	18,485	18,746
Consumer and Other Portfolio Segment [Member] | Consumer [Member] | Financial Asset Originated [Member]
Accruing loans past due	63	110
Nonaccrual loans	131	213
Current loans	17,666	18,100
Loans	17,860	18,423
Consumer and Other Portfolio Segment [Member] | Consumer [Member] | Financial Assets Acquired [Member]
Accruing loans past due	16
Nonaccrual loans	4
Current loans	5,186	62
Loans	5,206	62
Consumer and Other Portfolio Segment [Member] | Consumer [Member] | Financing Receivables, 30-89 Days Past Due [Member] | Financial Asset Originated [Member]
Accruing loans past due	61	110
Consumer and Other Portfolio Segment [Member] | Consumer [Member] | Financing Receivables, 30-89 Days Past Due [Member] | Financial Assets Acquired [Member]
Accruing loans past due	16
Consumer and Other Portfolio Segment [Member] | Consumer [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Financial Asset Originated [Member]
Accruing loans past due	2
Consumer and Other Portfolio Segment [Member] | Consumer [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Financial Assets Acquired [Member]
Accruing loans past due
Consumer and Other Portfolio Segment [Member] | Other [Member]
Loans	19,933	5,027	$ 15,013
Consumer and Other Portfolio Segment [Member] | Other [Member] | Financial Asset Originated [Member]
Accruing loans past due
Nonaccrual loans		4
Current loans	18,262	5,023
Loans	18,262	5,027
Consumer and Other Portfolio Segment [Member] | Other [Member] | Financial Assets Acquired [Member]
Accruing loans past due
Nonaccrual loans
Current loans	1,671
Loans	1,671
Consumer and Other Portfolio Segment [Member] | Other [Member] | Financing Receivables, 30-89 Days Past Due [Member] | Financial Asset Originated [Member]
Accruing loans past due
Consumer and Other Portfolio Segment [Member] | Other [Member] | Financing Receivables, 30-89 Days Past Due [Member] | Financial Assets Acquired [Member]
Accruing loans past due
Consumer and Other Portfolio Segment [Member] | Other [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Financial Asset Originated [Member]
Accruing loans past due
Consumer and Other Portfolio Segment [Member] | Other [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Financial Assets Acquired [Member]
Accruing loans past due

XML

Note 4 - Loans - Impaired Loan Data (Details) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Unpaid contractual principal balance with no related allowance	$ 20,682,000	$ 15,967,000	$ 19,810,000
Impaired balance with no related allowance	19,769,000	15,857,000	19,703,000
Average recorded investment with no related allowance	20,029,000	17,218,000	17,644,000
Interest income recognized with no related allowance	383,000	348,000	904,000
Interest income collected with no related allowance	456,000	356,000	949,000
Unpaid contractual principal balance with an allowance	4,245,000	5,932,000	4,770,000
Impaired balance with an allowance	4,245,000	5,932,000	4,770,000
Related allowance	1,566,000	1,474,000	1,418,000
Average recorded investment with an allowance	3,876,000	6,287,000	6,061,000
Interest income recognized with an allowance	94,000	121,000	169,000
Interest income collected with an allowance	118,000	114,000	177,000
Unpaid contractual principal balance	25,572,000	21,899,000	24,580,000
Impaired balance	24,179,000	21,789,000	24,473,000
Average recorded investment	23,960,000	23,505,000	23,705,000
Interest income recognized	477,000	469,000	1,073,000
Interest income collected	574,000	470,000	1,126,000
Financial Asset Acquired with Credit Deterioration [Member]
Related allowance		0	0
Unpaid contractual principal balance	645,000
Impaired balance	165,000	0	0
Average recorded investment	55,000
Interest income recognized
Interest income collected
Commercial and Agricultural Portfolio Segment [Member] | Commercial [Member]
Unpaid contractual principal balance with no related allowance	442,000	367,000	595,000
Impaired balance with no related allowance	442,000	367,000	595,000
Average recorded investment with no related allowance	525,000	520,000	526,000
Interest income recognized with no related allowance	15,000	5,000	21,000
Interest income collected with no related allowance	16,000	5,000	24,000
Unpaid contractual principal balance with an allowance	0	0	42,000
Impaired balance with an allowance	0	0	42,000
Related allowance		0	6,000
Average recorded investment with an allowance	14,000	0	8,000
Interest income recognized with an allowance	0	0	2,000
Interest income collected with an allowance	0	0	2,000
Unpaid contractual principal balance	510,000	367,000	637,000
Impaired balance	484,000	367,000	637,000
Average recorded investment	553,000	520,000	534,000
Interest income recognized	15,000	5,000	23,000
Interest income collected	16,000	5,000	26,000
Commercial and Agricultural Portfolio Segment [Member] | Commercial [Member] | Financial Asset Acquired with Credit Deterioration [Member]
Related allowance
Unpaid contractual principal balance	68,000
Impaired balance	42,000
Average recorded investment	14,000
Interest income recognized
Interest income collected
Commercial and Agricultural Portfolio Segment [Member] | Agricultural [Member]
Unpaid contractual principal balance with no related allowance	736,000	311,000	434,000
Impaired balance with no related allowance	716,000	290,000	413,000
Average recorded investment with no related allowance	544,000	360,000	383,000
Interest income recognized with no related allowance	9,000	9,000	18,000
Interest income collected with no related allowance	21,000	12,000	25,000
Unpaid contractual principal balance with an allowance	588,000	0	0
Impaired balance with an allowance	588,000	0	0
Related allowance	588,000	0	0
Average recorded investment with an allowance	196,000	0	0
Interest income recognized with an allowance	9,000	0	0
Interest income collected with an allowance	33,000	0	0
Unpaid contractual principal balance	1,324,000	311,000	434,000
Impaired balance	1,304,000	290,000	413,000
Average recorded investment	740,000	360,000	383,000
Interest income recognized	18,000	9,000	18,000
Interest income collected	54,000	12,000	25,000
Commercial and Agricultural Portfolio Segment [Member] | Agricultural [Member] | Financial Asset Acquired with Credit Deterioration [Member]
Related allowance
Impaired balance
Real Estate Portfolio Segment [Member]
Interest income collected with an allowance		0
Real Estate Portfolio Segment [Member] | Financial Asset Acquired with Credit Deterioration [Member]
Impaired balance	69,000
Real Estate Portfolio Segment [Member] | Commercial [Member]
Unpaid contractual principal balance with no related allowance	12,372,000	10,201,000	12,164,000
Impaired balance with no related allowance	11,504,000	10,201,000	12,164,000
Average recorded investment with no related allowance	12,341,000	11,092,000	11,040,000
Interest income recognized with no related allowance	291,000	235,000	582,000
Interest income collected with no related allowance	293,000	236,000	583,000
Unpaid contractual principal balance with an allowance	3,031,000	5,047,000	3,691,000
Impaired balance with an allowance	3,031,000	5,047,000	3,691,000
Related allowance	897,000	1,371,000	1,276,000
Average recorded investment with an allowance	2,902,000	5,371,000	5,121,000
Interest income recognized with an allowance	61,000	106,000	135,000
Interest income collected with an allowance	62,000	99,000	142,000
Unpaid contractual principal balance	15,403,000	15,248,000	15,855,000
Impaired balance	14,535,000	15,248,000	15,855,000
Average recorded investment	15,243,000	16,463,000	16,161,000
Interest income recognized	352,000	341,000	717,000
Interest income collected	355,000	335,000	725,000
Real Estate Portfolio Segment [Member] | Commercial [Member] | Financial Asset Acquired with Credit Deterioration [Member]
Related allowance
Impaired balance
Real Estate Portfolio Segment [Member] | Commercial Construction [Member]
Unpaid contractual principal balance with no related allowance	104,000	16,000	132,000
Impaired balance with no related allowance	104,000	16,000	132,000
Average recorded investment with no related allowance	115,000	38,000	69,000
Interest income recognized with no related allowance	3,000	1,000	8,000
Interest income collected with no related allowance	3,000	1,000	8,000
Unpaid contractual principal balance with an allowance		482,000	399,000
Impaired balance with an allowance		482,000	399,000
Related allowance		54,000	39,000
Average recorded investment with an allowance	133,000	487,000	466,000
Interest income recognized with an allowance		2,000	0
Interest income collected with an allowance		2,000	0
Unpaid contractual principal balance	226,000	498,000	531,000
Impaired balance	173,000	498,000	531,000
Average recorded investment	271,000	525,000	535,000
Interest income recognized	3,000	3,000	8,000
Interest income collected	3,000	3,000	8,000
Real Estate Portfolio Segment [Member] | Commercial Construction [Member] | Financial Asset Acquired with Credit Deterioration [Member]
Related allowance
Unpaid contractual principal balance	122,000
Impaired balance	69,000
Average recorded investment	23,000
Interest income recognized
Interest income collected
Real Estate Portfolio Segment [Member] | Residential Construction [Member]
Unpaid contractual principal balance with no related allowance	354,000		0
Impaired balance with no related allowance	354,000		0
Average recorded investment with no related allowance	118,000		0
Interest income recognized with no related allowance	4,000		0
Interest income collected with no related allowance	4,000		0
Unpaid contractual principal balance with an allowance	0	0	0
Impaired balance with an allowance	0	0	0
Related allowance		0	0
Average recorded investment with an allowance	0	0	0
Interest income recognized with an allowance	0	0	0
Interest income collected with an allowance	0		0
Unpaid contractual principal balance	354,000
Impaired balance	354,000
Average recorded investment	118,000		0
Interest income recognized	4,000		0
Interest income collected	4,000		0
Real Estate Portfolio Segment [Member] | Residential Construction [Member] | Financial Asset Acquired with Credit Deterioration [Member]
Related allowance
Impaired balance
Real Estate Portfolio Segment [Member] | Residential [Member]
Unpaid contractual principal balance with no related allowance	3,872,000	3,892,000	4,214,000
Impaired balance with no related allowance	3,849,000	3,805,000	4,130,000
Average recorded investment with no related allowance	3,979,000	4,113,000	4,067,000
Interest income recognized with no related allowance	83,000	87,000	208,000
Interest income collected with no related allowance	98,000	89,000	213,000
Unpaid contractual principal balance with an allowance	267,000	36,000	274,000
Impaired balance with an allowance	267,000	36,000	274,000
Related allowance	49,000	21,000	61,000
Average recorded investment with an allowance	270,000	60,000	98,000
Interest income recognized with an allowance	11,000	1,000	8,000
Interest income collected with an allowance	11,000	1,000	8,000
Unpaid contractual principal balance	4,162,000	3,928,000	4,488,000
Impaired balance	4,130,000	3,841,000	4,404,000
Average recorded investment	4,254,000	4,173,000	4,165,000
Interest income recognized	94,000	88,000	216,000
Interest income collected	109,000	90,000	221,000
Real Estate Portfolio Segment [Member] | Residential [Member] | Financial Asset Acquired with Credit Deterioration [Member]
Related allowance
Unpaid contractual principal balance	23,000
Impaired balance	14,000
Average recorded investment	5,000
Interest income recognized
Interest income collected
Real Estate Portfolio Segment [Member] | Farmland [Member]
Unpaid contractual principal balance with no related allowance	2,670,000	980,000	2,054,000
Impaired balance with no related allowance	2,668,000	978,000	2,052,000
Average recorded investment with no related allowance	2,246,000	896,000	1,361,000
Interest income recognized with no related allowance	(25,000)	5,000	53,000
Interest income collected with no related allowance	17,000	7,000	82,000
Unpaid contractual principal balance with an allowance	359,000	367,000	364,000
Impaired balance with an allowance	359,000	367,000	364,000
Related allowance	32,000	28,000	36,000
Average recorded investment with an allowance	361,000	369,000	368,000
Interest income recognized with an allowance	13,000	12,000	24,000
Interest income collected with an allowance	12,000	12,000	25,000
Unpaid contractual principal balance	3,266,000	1,347,000	2,418,000
Impaired balance	3,067,000	1,345,000	2,416,000
Average recorded investment	2,620,000	1,265,000	1,729,000
Interest income recognized	(12,000)	17,000	77,000
Interest income collected	29,000	19,000	107,000
Real Estate Portfolio Segment [Member] | Farmland [Member] | Financial Asset Acquired with Credit Deterioration [Member]
Related allowance
Unpaid contractual principal balance	237,000
Impaired balance	40,000
Average recorded investment	13,000
Interest income recognized
Interest income collected
Consumer and Other Portfolio Segment [Member] | Consumer [Member]
Unpaid contractual principal balance with no related allowance	132,000	200,000	213,000
Impaired balance with no related allowance	132,000	200,000	213,000
Average recorded investment with no related allowance	159,000	199,000	197,000
Interest income recognized with no related allowance	3,000	6,000	14,000
Interest income collected with no related allowance	4,000	6,000	14,000
Unpaid contractual principal balance with an allowance	0	0	0
Impaired balance with an allowance	0	0	0
Related allowance		0	0
Average recorded investment with an allowance	0	0	0
Interest income recognized with an allowance	0	0	0
Interest income collected with an allowance	0	0	0
Unpaid contractual principal balance	327,000	200,000	213,000
Impaired balance	132,000	200,000	213,000
Average recorded investment	159,000	199,000	197,000
Interest income recognized	3,000	6,000	14,000
Interest income collected	4,000	6,000	14,000
Consumer and Other Portfolio Segment [Member] | Consumer [Member] | Financial Asset Acquired with Credit Deterioration [Member]
Related allowance
Unpaid contractual principal balance	195,000
Impaired balance
Average recorded investment
Interest income recognized
Interest income collected
Consumer and Other Portfolio Segment [Member] | Other [Member]
Unpaid contractual principal balance with no related allowance		0	4,000
Impaired balance with no related allowance		0	4,000
Average recorded investment with no related allowance	2,000	0	1,000
Interest income recognized with no related allowance		0	0
Interest income collected with no related allowance		0	0
Unpaid contractual principal balance with an allowance		0
Impaired balance with an allowance		0
Related allowance		0	0
Average recorded investment with an allowance		0	0
Interest income recognized with an allowance		0	0
Interest income collected with an allowance		0	0
Unpaid contractual principal balance		0	4,000
Impaired balance		0	4,000
Average recorded investment	2,000	0	1,000
Interest income recognized		0	0
Interest income collected		$ 0	$ 0
Consumer and Other Portfolio Segment [Member] | Other [Member] | Financial Asset Acquired with Credit Deterioration [Member]
Related allowance
Impaired balance

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Note 5 - Allowance for Loan Losses (Details Textual)	Jun. 30, 2019 USD ($)	Dec. 31, 2018 USD ($)	Jun. 30, 2018 USD ($)	Dec. 31, 2017 USD ($)
Loan Balance For Reviewing High Risk Loans Minimum	$ 250,000	$ 250,000
Impaired Financing Receivable, Number of Loans Below Review Threshold	123		125
Impaired Financing Receivable Recorded Investment Below Review Threshold	$ 3,800,000		$ 3,100,000
Loans and Leases Receivable, Gross, Total	935,271,000	782,027,000	766,796,000
Loans and Leases Receivable, Allowance, Ending Balance	6,789,000	$ 7,277,000	7,159,000	$ 7,508,000
Loans Not Classified as Impaired [Member] | Substandard [Member]
Loans and Leases Receivable, Gross, Total	9,260,000		9,550,000
Loans and Leases Receivable, Allowance, Ending Balance	$ 1,660,000		$ 1,300,000

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Note 5 - Allowance for Loan Losses - Segregated by Class of Loan (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Allowance for loan losses, beginning balance			$ 7,277	$ 7,508
Allowance for loan losses, charge-offs			(1,099)	(721)
Allowance for loan losses, recoveries			301	302
Allowance for loan losses, provision	$ 179	$ 44	310	70
Allowance for loan losses, ending balance	6,789	7,159	6,789	7,159
Provision for Loan Losses	179	44	310	70
Provision for Loan Losses	179	44	310	70
Commercial [Member] | Commercial and Agricultural Portfolio Segment [Member]
Allowance for loan losses, beginning balance			370	447
Allowance for loan losses, charge-offs			(125)	(116)
Allowance for loan losses, recoveries			16	85
Allowance for loan losses, provision			122	28
Allowance for loan losses, ending balance	383	444	383	444
Provision for Loan Losses			122	28
Provision for Loan Losses			122	28
Commercial [Member] | Real Estate Portfolio Segment [Member]
Allowance for loan losses, beginning balance			4,549	3,874
Allowance for loan losses, charge-offs			(56)	(258)
Allowance for loan losses, recoveries			38	37
Allowance for loan losses, provision			(790)	753
Allowance for loan losses, ending balance	3,741	4,406	3,741	4,406
Provision for Loan Losses			(790)	753
Provision for Loan Losses			(790)	753
Agricultural [Member] | Commercial and Agricultural Portfolio Segment [Member]
Allowance for loan losses, beginning balance			248	186
Allowance for loan losses, charge-offs			0	(123)
Allowance for loan losses, recoveries			1	7
Allowance for loan losses, provision			789	192
Allowance for loan losses, ending balance	1,038	262	1,038	262
Provision for Loan Losses			789	192
Provision for Loan Losses			789	192
Commercial Construction [Member] | Real Estate Portfolio Segment [Member]
Allowance for loan losses, beginning balance			115	1,216
Allowance for loan losses, charge-offs			(29)
Allowance for loan losses, recoveries			54	38
Allowance for loan losses, provision			(130)	(1,172)
Allowance for loan losses, ending balance	10	82	10	82
Provision for Loan Losses			(130)	(1,172)
Provision for Loan Losses			(130)	(1,172)
Residential Construction [Member] | Real Estate Portfolio Segment [Member]
Allowance for loan losses, beginning balance			16
Allowance for loan losses, charge-offs			0	0
Allowance for loan losses, recoveries			0	0
Allowance for loan losses, provision			(14)
Allowance for loan losses, ending balance	2		2
Provision for Loan Losses			(14)
Provision for Loan Losses			(14)
Residential [Member] | Real Estate Portfolio Segment [Member]
Allowance for loan losses, beginning balance			1,181	968
Allowance for loan losses, charge-offs			(647)	(89)
Allowance for loan losses, recoveries			159	75
Allowance for loan losses, provision			152	112
Allowance for loan losses, ending balance	845	1,066	845	1,066
Provision for Loan Losses			152	112
Provision for Loan Losses			152	112
Farmland [Member] | Real Estate Portfolio Segment [Member]
Allowance for loan losses, beginning balance			702	780
Allowance for loan losses, charge-offs			(63)
Allowance for loan losses, recoveries			3	9
Allowance for loan losses, provision			47	79
Allowance for loan losses, ending balance	689	868	689	868
Provision for Loan Losses			47	79
Provision for Loan Losses			47	79
Consumer [Member] | Consumer and Other Portfolio Segment [Member]
Allowance for loan losses, beginning balance			86	34
Allowance for loan losses, charge-offs			(179)	(135)
Allowance for loan losses, recoveries			27	49
Allowance for loan losses, provision			129	82
Allowance for loan losses, ending balance	63	30	63	30
Provision for Loan Losses			129	82
Provision for Loan Losses			129	82
Other [Member] | Consumer and Other Portfolio Segment [Member]
Allowance for loan losses, beginning balance			10	3
Allowance for loan losses, charge-offs			0
Allowance for loan losses, recoveries			3	2
Allowance for loan losses, provision			5	(4)
Allowance for loan losses, ending balance	$ 18	$ 1	18	1
Provision for Loan Losses			5	(4)
Provision for Loan Losses			$ 5	$ (4)

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Note 5 - Allowance for Loan Losses - Segregated by Impairment Methodology (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2018	Dec. 31, 2017
Ending Allowance Balance, individually evaluated for impairment	$ 1,566,000		$ 1,474,000
Ending Allowance Balance, collectively evaluated for impairment	5,223,000		5,685,000
Related allowance	1,566,000	$ 1,418,000	1,474,000
Ending Allowance Balance Total	6,789,000	7,277,000	7,159,000	$ 7,508,000
Ending Loan Balance, individually evaluated for impairment	20,196,000		18,692,000
Ending Loan Balance, collectively evaluated for impairment	914,910,000		748,104,000
Impaired balance	24,179,000	24,473,000	21,789,000
Loans	935,271,000	782,027,000	766,796,000
Financial Asset Acquired with Credit Deterioration [Member]
Related allowance		0	0
Impaired balance	165,000	0	0
Real Estate Portfolio Segment [Member] | Financial Asset Acquired with Credit Deterioration [Member]
Impaired balance	69,000
Commercial [Member] | Commercial and Agricultural Portfolio Segment [Member]
Ending Allowance Balance, individually evaluated for impairment			0
Ending Allowance Balance, collectively evaluated for impairment	383,000		444,000
Related allowance		6,000	0
Ending Allowance Balance Total	383,000	370,000	444,000	447,000
Ending Loan Balance, individually evaluated for impairment	16,000		77,000
Ending Loan Balance, collectively evaluated for impairment	68,477,000		44,952,000
Impaired balance	484,000	637,000	367,000
Loans	68,535,000	57,410,000	45,029,000
Commercial [Member] | Commercial and Agricultural Portfolio Segment [Member] | Financial Asset Acquired with Credit Deterioration [Member]
Related allowance
Impaired balance	42,000
Commercial [Member] | Real Estate Portfolio Segment [Member]
Ending Allowance Balance, individually evaluated for impairment	897,000		1,371,000
Ending Allowance Balance, collectively evaluated for impairment	2,844,000		3,035,000
Related allowance	897,000	1,276,000	1,371,000
Ending Allowance Balance Total	3,741,000	4,549,000	4,406,000	3,874,000
Ending Loan Balance, individually evaluated for impairment	14,243,000		15,187,000
Ending Loan Balance, collectively evaluated for impairment	419,573,000		336,876,000
Impaired balance	14,535,000	15,855,000	15,248,000
Loans	433,816,000	373,534,000	352,063,000
Commercial [Member] | Real Estate Portfolio Segment [Member] | Financial Asset Acquired with Credit Deterioration [Member]
Related allowance
Impaired balance
Agricultural [Member] | Commercial and Agricultural Portfolio Segment [Member]
Ending Allowance Balance, individually evaluated for impairment	588,000		0
Ending Allowance Balance, collectively evaluated for impairment	450,000		262,000
Related allowance	588,000	0	0
Ending Allowance Balance Total	1,038,000	248,000	262,000	186,000
Ending Loan Balance, individually evaluated for impairment	850,000		5,000
Ending Loan Balance, collectively evaluated for impairment	18,011,000		20,032,000
Impaired balance	1,304,000	413,000	290,000
Loans	18,861,000	16,799,000	20,037,000
Agricultural [Member] | Commercial and Agricultural Portfolio Segment [Member] | Financial Asset Acquired with Credit Deterioration [Member]
Related allowance
Impaired balance
Commercial Construction [Member] | Real Estate Portfolio Segment [Member]
Ending Allowance Balance, individually evaluated for impairment			54,000
Ending Allowance Balance, collectively evaluated for impairment	10,000		28,000
Related allowance		39,000	54,000
Ending Allowance Balance Total	10,000	115,000	82,000	1,216,000
Ending Loan Balance, individually evaluated for impairment	67,000		481,000
Ending Loan Balance, collectively evaluated for impairment	72,842,000		48,428,000
Impaired balance	173,000	531,000	498,000
Loans	72,978,000	47,849,000	48,909,000
Commercial Construction [Member] | Real Estate Portfolio Segment [Member] | Financial Asset Acquired with Credit Deterioration [Member]
Related allowance
Impaired balance	69,000
Residential Construction [Member] | Real Estate Portfolio Segment [Member]
Ending Allowance Balance, individually evaluated for impairment			0
Ending Allowance Balance, collectively evaluated for impairment	2,000		0
Related allowance		0	0
Ending Allowance Balance Total	2,000	16,000
Ending Loan Balance, individually evaluated for impairment	354,000		0
Ending Loan Balance, collectively evaluated for impairment	18,268,000		11,541,000
Impaired balance	354,000
Loans	18,622,000	12,500,000	11,541,000
Residential Construction [Member] | Real Estate Portfolio Segment [Member] | Financial Asset Acquired with Credit Deterioration [Member]
Related allowance
Impaired balance
Residential [Member] | Real Estate Portfolio Segment [Member]
Ending Allowance Balance, individually evaluated for impairment	49,000		21,000
Ending Allowance Balance, collectively evaluated for impairment	796,000		1,045,000
Related allowance	49,000	61,000	21,000
Ending Allowance Balance Total	845,000	1,181,000	1,066,000	968,000
Ending Loan Balance, individually evaluated for impairment	1,914,000		1,910,000
Ending Loan Balance, collectively evaluated for impairment	203,260,000		185,681,000
Impaired balance	4,130,000	4,404,000	3,841,000
Loans	205,188,000	187,714,000	187,591,000
Residential [Member] | Real Estate Portfolio Segment [Member] | Financial Asset Acquired with Credit Deterioration [Member]
Related allowance
Impaired balance	14,000
Farmland [Member] | Real Estate Portfolio Segment [Member]
Ending Allowance Balance, individually evaluated for impairment	32,000		28,000
Ending Allowance Balance, collectively evaluated for impairment	657,000		840,000
Related allowance	32,000	36,000	28,000
Ending Allowance Balance Total	689,000	702,000	868,000	780,000
Ending Loan Balance, individually evaluated for impairment	2,752,000		1,032,000
Ending Loan Balance, collectively evaluated for impairment	71,480,000		66,835,000
Impaired balance	3,067,000	2,416,000	1,345,000
Loans	74,272,000	62,709,000	67,867,000
Farmland [Member] | Real Estate Portfolio Segment [Member] | Financial Asset Acquired with Credit Deterioration [Member]
Related allowance
Impaired balance	40,000
Consumer [Member] | Consumer and Other Portfolio Segment [Member]
Ending Allowance Balance, individually evaluated for impairment			0
Ending Allowance Balance, collectively evaluated for impairment	63,000		30,000
Related allowance		0	0
Ending Allowance Balance Total	63,000	86,000	30,000	34,000
Ending Loan Balance, individually evaluated for impairment			0
Ending Loan Balance, collectively evaluated for impairment	23,066,000		18,746,000
Impaired balance	132,000	213,000	200,000
Loans	23,066,000	18,485,000	18,746,000
Consumer [Member] | Consumer and Other Portfolio Segment [Member] | Financial Asset Acquired with Credit Deterioration [Member]
Related allowance
Impaired balance
Other [Member] | Consumer and Other Portfolio Segment [Member]
Ending Allowance Balance, individually evaluated for impairment			0
Ending Allowance Balance, collectively evaluated for impairment	18,000		1,000
Related allowance		0	0
Ending Allowance Balance Total	18,000	10,000	1,000	$ 3,000
Ending Loan Balance, individually evaluated for impairment			0
Ending Loan Balance, collectively evaluated for impairment	19,933,000		15,013,000
Impaired balance		4,000	0
Loans	19,933,000	$ 5,027,000	$ 15,013,000
Other [Member] | Consumer and Other Portfolio Segment [Member] | Financial Asset Acquired with Credit Deterioration [Member]
Related allowance
Impaired balance

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Note 6 - Other Real Estate Owned (Details Textual) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018	Dec. 31, 2017
Other Real Estate, Ending Balance	$ 987	$ 1,841	$ 4,256
Other Real Estate, Foreclosed Assets, and Repossessed Assets, Total	120	565
Mortgage Loans in Process of Foreclosure, Amount	$ 1,076	$ 25

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Note 6 - Other Real Estate Owned - Change in OREO (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Balance, Beginning	$ 1,841	$ 4,256
Additions	166	793
Acquired in Acquisition	243
Sales of OREO	(2,114)	(2,949)
Transfer to Bank Premises		(300)
Gains (Losses) on Sale	955	303
Provision for Losses	(104)	(262)
Balance, Ending	$ 987	$ 1,841

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Note 7 - Deposits (Details Textual) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Deposit Liabilities Reclassified as Loans Receivable	$ 441	$ 476
Interest-bearing Domestic Deposit, Brokered	109,638	80,535
Time Deposits, at or Above FDIC Insurance Limit	71,359	53,881
Short-term Jumbo Certificates of Deposit [Member]
Time Deposits, at or Above FDIC Insurance Limit	$ 58,233	$ 41,104

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Note 7 - Deposits - Components of Interest-bearing Deposits (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Interest-Bearing Demand	$ 591,236	$ 471,794
Savings	84,606	79,453
Time, $250,000 and Over	71,359	53,881
Other Time	318,211	287,150
	$ 1,065,412	$ 892,278

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Note 7 - Deposits - Scheduled Maturities of Certificates of Deposit (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
One Year and Under	$ 277,759	$ 241,366
One to Three Years	98,060	82,412
Three Years and Over	13,751	17,253
	$ 389,570	$ 341,031

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Note 8 - Other Borrowed Money (Details Textual) - USD ($)	May 01, 2019	Jun. 30, 2019
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Due Date, Earliest		2020
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Due Date, Last		2028
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged		$ 168,066
Federal Home Loan Bank, Advances, General Debt Obligations, Amount of Available, Unused Funds		261,264
Long-term Line of Credit, Total		0
Line of Credit Facility, Current Borrowing Capacity		48,000
Federal Reserve Bank Advances [Member]
Short-term Debt, Total		0
Revolving Credit Facility [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 10,000,000
Proceeds from Lines of Credit, Total	$ 5,300,000
Long-term Line of Credit, Total		5,300,000
Revolving Credit Facility [Member] | Prime Rate [Member]
Debt Instrument, Basis Spread on Variable Rate	0.40%
Term Note [Member]
Debt Instrument, Face Amount	$ 10,000,000
Debt Instrument, Interest Rate, Stated Percentage	4.70%
Notes Payable, Total		$ 9,800,000
Minimum [Member]
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Interest Rate at Period End		0.98%
Maximum [Member]
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Interest Rate at Period End		3.51%

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Note 8 - Other Borrowed Money - Summary of Other Borrowed Money (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Federal Home Loan Bank Advances	$ 40,000	$ 44,000
Other Borrowings	15,063
Other Borrowed Money	$ 55,063	$ 44,000

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Note 8 - Other Borrowed Money - Aggregate Stated Maturities (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
2024 and After	$ 1,627	$ 1,525
	40,000	$ 44,000
Other Borrowings [Member]
2019	500
2020	4,500
2021	6,313
2022	19,000
2023	7,000
2024 and After	17,750
	$ 55,063

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Note 9 - Subordinated Debentures (Trusted Preferred Securities) - Schedule of Subordinated Debentures (Details) - Trust Preferred Securities Subject to Mandatory Redemption [Member] $ in Thousands	6 Months Ended
	Jun. 30, 2019 USD ($)
Colony Bankcorp Statutory Trust III [Member]
Issuance date	Jun. 17, 2004
Debt amount	$ 4,640
Total interest rate	5.09025%
Maturity date	Jun. 14, 2034
5 year call option	Jun. 17, 2009
Colony Bankcorp Statutory Trust III [Member] | London Interbank Offered Rate (LIBOR) [Member]
3 month LIBOR rate	2.41025%
Added points	0.0268%
Colony Bankcorp Capital Trust I [Member]
Issuance date	Apr. 13, 2006
Debt amount	$ 5,155
Total interest rate	3.81888%
Maturity date	Apr. 13, 2036
5 year call option	Apr. 13, 2011
Colony Bankcorp Capital Trust I [Member] | London Interbank Offered Rate (LIBOR) [Member]
3 month LIBOR rate	2.31888%
Added points	0.015%
Colony Bankcorp Capital Trust II [Member]
Issuance date	Mar. 12, 2007
Debt amount	$ 9,279
Total interest rate	3.96888%
Maturity date	Mar. 12, 2037
5 year call option	Mar. 12, 2012
Colony Bankcorp Capital Trust II [Member] | London Interbank Offered Rate (LIBOR) [Member]
3 month LIBOR rate	2.31888%
Added points	0.0165%
Colony Bankcorp Capital Trust III [Member]
Issuance date	Sep. 14, 2007
Debt amount	$ 5,155
Total interest rate	3.98275%
Maturity date	Sep. 14, 2037
5 year call option	Sep. 14, 2012
Colony Bankcorp Capital Trust III [Member] | London Interbank Offered Rate (LIBOR) [Member]
3 month LIBOR rate	2.58275%
Added points	0.014%

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Note 10 - Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Expiration Period Of Letter Of Credit Issued	1 year
Advances from Federal Home Loan Banks, Total	$ 40,000	$ 44,000
Letter of Credit Issued by FHLB to Guarantee Public Funds Deposit Balances [Member]
Advances from Federal Home Loan Banks, Total	$ 18,000

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Note 10 - Commitments and Contingencies - Financial Instruments Outstanding Whose Contract Amount Represents Credit Risk (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Letters of Credit	$ 1,627	$ 1,525
Loan Origination Commitments [Member]
Loan Commitments	$ 146,481	$ 98,736

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Note 11 - Fair Value of Financial Instruments and Fair Value Measurements (Details Textual) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Discounted Rate To Account For Selling And Marketing Costs	10.00%
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3	$ 0	$ 2,009

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Note 11 - Fair Value of Financial Instruments and Fair Value Measurements - Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Fair Value	$ 409,839	$ 353,066
Bank-Owned Life Insurance	21,357	17,598
Fair Value, Inputs, Level 1 [Member]
Fair Value
Fair Value, Inputs, Level 2 [Member]
Fair Value		348,789
Fair Value, Inputs, Level 3 [Member]
Fair Value		4,277
Reported Value Measurement [Member]
Cash and Short-Term Investments	75,412	60,156
Fair Value	409,839
Other Investments, at Cost	3,261	2,978
Loans Held for Sale	3,813
Loans, Net	927,917	774,249
Bank-Owned Life Insurance	21,357	17,598
Deposits	1,297,723	1,085,125
Subordinated Debentures	24,229	24,229
Other Borrowed Money	55,063	44,000
Investment Securities Available for Sale		353,066
Federal Home Loan Bank Stock	3,261	2,978
Estimate of Fair Value Measurement [Member]
Cash and Short-Term Investments	75,412	60,156
Fair Value	409,839
Other Investments, at Cost	3,261	2,978
Loans Held for Sale	3,813
Loans, Net	925,547	769,809
Bank-Owned Life Insurance	21,357	17,598
Deposits	1,300,200	1,086,503
Subordinated Debentures	24,229	24,229
Other Borrowed Money	54,865	44,032
Investment Securities Available for Sale		353,066
Federal Home Loan Bank Stock	3,261	2,978
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member]
Cash and Short-Term Investments	75,412	60,156
Fair Value
Other Investments, at Cost	3,261	2,978
Loans Held for Sale
Loans, Net
Bank-Owned Life Insurance	21,357	17,598
Deposits	908,153	744,094
Subordinated Debentures
Other Borrowed Money
Investment Securities Available for Sale
Federal Home Loan Bank Stock	3,261	2,978
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member]
Cash and Short-Term Investments
Fair Value	406,405
Other Investments, at Cost
Loans Held for Sale	3,813
Loans, Net	922,868	766,457
Bank-Owned Life Insurance
Deposits	392,047	342,409
Subordinated Debentures	24,229	24,229
Other Borrowed Money	54,865	44,032
Investment Securities Available for Sale		348,788
Federal Home Loan Bank Stock
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member]
Cash and Short-Term Investments
Fair Value	3,434
Other Investments, at Cost
Loans Held for Sale
Loans, Net	2,679	3,352
Bank-Owned Life Insurance
Deposits
Subordinated Debentures
Other Borrowed Money
Investment Securities Available for Sale		4,278
Federal Home Loan Bank Stock

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Note 11 - Fair Value of Financial Instruments and Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Recurring Securities Available for Sale	$ 409,839	$ 353,066
Fair Value, Inputs, Level 1 [Member]
Recurring Securities Available for Sale
Fair Value, Inputs, Level 2 [Member]
Recurring Securities Available for Sale		348,789
Fair Value, Inputs, Level 3 [Member]
Recurring Securities Available for Sale		4,277
Fair Value, Recurring [Member]
Recurring Securities Available for Sale	409,839
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Recurring Securities Available for Sale
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Recurring Securities Available for Sale	406,405
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Recurring Securities Available for Sale	3,434
Fair Value, Nonrecurring [Member]
Impaired Loans	2,679	3,352
Other Real Estate	714	1,183
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member]
Impaired Loans
Other Real Estate
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member]
Impaired Loans
Other Real Estate
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member]
Impaired Loans	2,679	3,352
Other Real Estate	714	1,183
US Government Agencies Debt Securities [Member]
Recurring Securities Available for Sale	403,408	346,205
US Government Agencies Debt Securities [Member] | Fair Value, Recurring [Member]
Recurring Securities Available for Sale	403,408	346,205
US Government Agencies Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Recurring Securities Available for Sale
US Government Agencies Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Recurring Securities Available for Sale	400,189	342,142
US Government Agencies Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Recurring Securities Available for Sale	3,219	4,063
US States and Political Subdivisions Debt Securities [Member]
Recurring Securities Available for Sale	3,574	3,989
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Recurring [Member]
Recurring Securities Available for Sale	3,574	3,989
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Recurring Securities Available for Sale
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Recurring Securities Available for Sale	3,359	3,775
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Recurring Securities Available for Sale	215	214
Corporate Debt Securities [Member]
Recurring Securities Available for Sale	2,857	2,872
Corporate Debt Securities [Member] | Fair Value, Recurring [Member]
Recurring Securities Available for Sale	2,857	2,872
Corporate Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Recurring Securities Available for Sale
Corporate Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Recurring Securities Available for Sale	2,857	2,872
Corporate Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Recurring Securities Available for Sale

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Note 11 - Fair Value of Financial Instruments and Fair Value Measurements - Quantitative Information for Financial Instruments Measured at Fair Value (Details) $ in Thousands	Jun. 30, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Other Real Estate Owned, fair value	$ 987	$ 1,841	$ 4,256
Fair Value, Nonrecurring [Member]
Impaired loans, fair value	2,679	3,352
Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member]
Impaired loans, fair value	$ 2,679	3,352
Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | Minimum [Member] | Measurement Input, Cost to Sell [Member]
Other Real Estate Owned, measurement input	0
Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | Maximum [Member] | Measurement Input, Cost to Sell [Member]
Other Real Estate Owned, measurement input	0
Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | Weighted Average [Member] | Measurement Input, Cost to Sell [Member]
Other Real Estate Owned, measurement input	0
Valuation, Market Approach [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member]
Other Real Estate Owned, fair value	$ 714	$ 1,183
Valuation, Market Approach [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | Minimum [Member] | Measurement Input, Comparability Adjustment [Member]
Other Real Estate Owned, measurement input	(30)	(30)
Valuation, Market Approach [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | Minimum [Member] | Measurement Input, Appraised Value [Member]
Other Real Estate Owned, measurement input	9.82	9.82
Valuation, Market Approach [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | Maximum [Member] | Measurement Input, Comparability Adjustment [Member]
Other Real Estate Owned, measurement input	25.02	25.02
Valuation, Market Approach [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | Maximum [Member] | Measurement Input, Appraised Value [Member]
Other Real Estate Owned, measurement input	99.39	99.39
Valuation, Market Approach [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | Weighted Average [Member] | Measurement Input, Comparability Adjustment [Member]
Other Real Estate Owned, measurement input	(2.49)	(2.49)
Valuation, Market Approach [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | Weighted Average [Member] | Measurement Input, Appraised Value [Member]
Other Real Estate Owned, measurement input	40.36	35.26
Valuation, Income Approach [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | Weighted Average [Member] | Measurement Input, Cap Rate [Member]
Other Real Estate Owned, measurement input		10
Valuation, Income Approach [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | Weighted Average [Member] | Measurement Input, Discount Rate [Member]
Other Real Estate Owned, measurement input	10
Real Estate Portfolio Segment [Member] | Residential [Member] | Valuation, Market Approach [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member]
Impaired loans, fair value	$ 218	$ 213
Real Estate Portfolio Segment [Member] | Residential [Member] | Valuation, Market Approach [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | Minimum [Member] | Measurement Input, Comparability Adjustment [Member]
Impaired loans, measurement input	(10.86)	(10.86)
Real Estate Portfolio Segment [Member] | Residential [Member] | Valuation, Market Approach [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | Minimum [Member] | Measurement Input, Appraised Value [Member]
Impaired loans, measurement input	0	0
Real Estate Portfolio Segment [Member] | Residential [Member] | Valuation, Market Approach [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | Maximum [Member] | Measurement Input, Comparability Adjustment [Member]
Impaired loans, measurement input	6.7	6.7
Real Estate Portfolio Segment [Member] | Residential [Member] | Valuation, Market Approach [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | Maximum [Member] | Measurement Input, Appraised Value [Member]
Impaired loans, measurement input	25	25
Real Estate Portfolio Segment [Member] | Residential [Member] | Valuation, Market Approach [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | Weighted Average [Member] | Measurement Input, Comparability Adjustment [Member]
Impaired loans, measurement input	(2.08)	(2.08)
Real Estate Portfolio Segment [Member] | Residential [Member] | Valuation, Market Approach [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | Weighted Average [Member] | Measurement Input, Appraised Value [Member]
Impaired loans, measurement input	12.5	12.5
Real Estate Portfolio Segment [Member] | Commercial Construction [Member] | Valuation, Market Approach [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member]
Impaired loans, fair value		$ 360
Real Estate Portfolio Segment [Member] | Commercial Construction [Member] | Valuation, Market Approach [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | Minimum [Member] | Measurement Input, Comparability Adjustment [Member]
Impaired loans, measurement input		(6)
Real Estate Portfolio Segment [Member] | Commercial Construction [Member] | Valuation, Market Approach [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | Minimum [Member] | Measurement Input, Appraised Value [Member]
Impaired loans, measurement input		0
Real Estate Portfolio Segment [Member] | Commercial Construction [Member] | Valuation, Market Approach [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | Maximum [Member] | Measurement Input, Comparability Adjustment [Member]
Impaired loans, measurement input		1,975
Real Estate Portfolio Segment [Member] | Commercial Construction [Member] | Valuation, Market Approach [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | Maximum [Member] | Measurement Input, Appraised Value [Member]
Impaired loans, measurement input		10
Real Estate Portfolio Segment [Member] | Commercial Construction [Member] | Valuation, Market Approach [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | Weighted Average [Member] | Measurement Input, Comparability Adjustment [Member]
Impaired loans, measurement input		984.2
Real Estate Portfolio Segment [Member] | Commercial Construction [Member] | Valuation, Market Approach [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | Weighted Average [Member] | Measurement Input, Appraised Value [Member]
Impaired loans, measurement input		5
Real Estate Portfolio Segment [Member] | Commercial [Member] | Valuation, Market Approach [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | Minimum [Member] | Measurement Input, Appraised Value [Member]
Impaired loans, measurement input		0
Real Estate Portfolio Segment [Member] | Commercial [Member] | Valuation, Market Approach [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | Maximum [Member] | Measurement Input, Appraised Value [Member]
Impaired loans, measurement input		35
Real Estate Portfolio Segment [Member] | Commercial [Member] | Valuation, Market Approach [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | Weighted Average [Member] | Measurement Input, Comparability Adjustment [Member]
Impaired loans, measurement input	(37.25)
Real Estate Portfolio Segment [Member] | Commercial [Member] | Valuation, Market Approach [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | Weighted Average [Member] | Measurement Input, Appraised Value [Member]
Impaired loans, measurement input		17.5
Real Estate Portfolio Segment [Member] | Commercial [Member] | Valuation, Income Approach [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member]
Impaired loans, fair value	$ 2,134	$ 2,415
Real Estate Portfolio Segment [Member] | Commercial [Member] | Valuation, Income Approach [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | Minimum [Member] | Measurement Input, Comparability Adjustment [Member]
Impaired loans, measurement input		(60)
Real Estate Portfolio Segment [Member] | Commercial [Member] | Valuation, Income Approach [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | Minimum [Member] | Measurement Input, Appraised Value [Member]
Impaired loans, measurement input	0
Real Estate Portfolio Segment [Member] | Commercial [Member] | Valuation, Income Approach [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | Minimum [Member] | Measurement Input, Cap Rate [Member]
Impaired loans, measurement input	7.75
Real Estate Portfolio Segment [Member] | Commercial [Member] | Valuation, Income Approach [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | Maximum [Member] | Measurement Input, Comparability Adjustment [Member]
Impaired loans, measurement input		80
Real Estate Portfolio Segment [Member] | Commercial [Member] | Valuation, Income Approach [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | Maximum [Member] | Measurement Input, Appraised Value [Member]
Impaired loans, measurement input	10
Real Estate Portfolio Segment [Member] | Commercial [Member] | Valuation, Income Approach [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | Maximum [Member] | Measurement Input, Cap Rate [Member]
Impaired loans, measurement input	10.5
Real Estate Portfolio Segment [Member] | Commercial [Member] | Valuation, Income Approach [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | Weighted Average [Member] | Measurement Input, Comparability Adjustment [Member]
Impaired loans, measurement input		10
Real Estate Portfolio Segment [Member] | Commercial [Member] | Valuation, Income Approach [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | Weighted Average [Member] | Measurement Input, Appraised Value [Member]
Impaired loans, measurement input	5
Real Estate Portfolio Segment [Member] | Commercial [Member] | Valuation, Income Approach [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | Weighted Average [Member] | Measurement Input, Cap Rate [Member]
Impaired loans, measurement input	9.13	10.13
Real Estate Portfolio Segment [Member] | Farmland [Member] | Valuation, Market Approach [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member]
Impaired loans, fair value	$ 327	$ 328
Real Estate Portfolio Segment [Member] | Farmland [Member] | Valuation, Market Approach [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | Minimum [Member] | Measurement Input, Comparability Adjustment [Member]
Impaired loans, measurement input	(71)	(71)
Real Estate Portfolio Segment [Member] | Farmland [Member] | Valuation, Market Approach [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | Minimum [Member] | Measurement Input, Appraised Value [Member]
Impaired loans, measurement input	10	10
Real Estate Portfolio Segment [Member] | Farmland [Member] | Valuation, Market Approach [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | Maximum [Member] | Measurement Input, Comparability Adjustment [Member]
Impaired loans, measurement input	(3.5)	(3.5)
Real Estate Portfolio Segment [Member] | Farmland [Member] | Valuation, Market Approach [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | Maximum [Member] | Measurement Input, Appraised Value [Member]
Impaired loans, measurement input	80	80
Real Estate Portfolio Segment [Member] | Farmland [Member] | Valuation, Market Approach [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | Weighted Average [Member] | Measurement Input, Comparability Adjustment [Member]
Impaired loans, measurement input		(37.25)
Real Estate Portfolio Segment [Member] | Farmland [Member] | Valuation, Market Approach [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | Weighted Average [Member] | Measurement Input, Appraised Value [Member]
Impaired loans, measurement input		45
Real Estate Portfolio Segment [Member] | Farmland [Member] | Valuation, Income Approach [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | Weighted Average [Member] | Measurement Input, Appraised Value [Member]
Impaired loans, measurement input	45
Commercial Portfolio Segment [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member]
Impaired loans, fair value		$ 36
Commercial Portfolio Segment [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | Minimum [Member] | Measurement Input, Appraised Value [Member]
Impaired loans, measurement input		0
Commercial Portfolio Segment [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | Minimum [Member] | Measurement Input, Cost to Sell [Member]
Impaired loans, measurement input		0
Commercial Portfolio Segment [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | Maximum [Member] | Measurement Input, Appraised Value [Member]
Impaired loans, measurement input		15
Commercial Portfolio Segment [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | Maximum [Member] | Measurement Input, Cost to Sell [Member]
Impaired loans, measurement input		0
Commercial Portfolio Segment [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | Weighted Average [Member] | Measurement Input, Cap Rate [Member]
Impaired loans, measurement input		15
Commercial Portfolio Segment [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Nonrecurring [Member] | Weighted Average [Member] | Measurement Input, Cost to Sell [Member]
Impaired loans, measurement input		0

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Note 11 - Fair Value of Financial Instruments and Fair Value Measurements - Fair Value Measurement Using Significant Unobservable Inputs (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Transfers out of Level 3	$ 0	$ (2,009)
Available-for-sale Securities [Member]
Balance, available for sale securities	4,277	7,298
Transfers out of Level 3		(2,009)
Maturities
Purchases
Paydowns	(883)	(886)
Unrealized Gains included in Other Comprehensive Income (Loss)	40	(126)
Balance, available for sale securities	$ 3,434	$ 4,277

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Note 11 - Fair Value of Financial Instruments and Fair Value Measurements - Quantitative Information About Recurring Level 3 Fair Value Measurement (Details) $ in Thousands		Jun. 30, 2019 USD ($)	Dec. 31, 2018 USD ($)
Fair Value		$ 409,839	$ 353,066
Fair Value, Recurring [Member]
Fair Value		409,839
Fair Value, Inputs, Level 3 [Member]
Fair Value			4,277
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member]
Fair Value		3,434
US States and Political Subdivisions Debt Securities [Member]
Fair Value		3,574	3,989
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Recurring [Member]
Fair Value		3,574	3,989
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member]
Fair Value		$ 215	214
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Measurement Input, Discount Rate [Member]
Range Weighted Average	[1]
US Government Agencies Debt Securities [Member]
Fair Value		$ 403,408	346,205
US Government Agencies Debt Securities [Member] | Fair Value, Recurring [Member]
Fair Value		403,408	346,205
US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member]
Fair Value		$ 3,219	$ 4,063
US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Measurement Input, Discount Rate [Member]
Range Weighted Average	[1]

[1] The Company relies on a third-party pricing service to value its securities. The details of the unobservable inputs and other adjustments used by the third-party pricing service were not readily available to the Company.

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Note 12 - Regulatory Capital Matters (Details Textual)	Jan. 01, 2016
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets Rule 1	0.625%
Increase in Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets	0.625%
Tier 1 Capital Conservation Buffer of Risk Weighted Assets	2.50%

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Note 12 - Regulatory Capital Matters - Summary of Regulatory Capital Information (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Capital	$ 136,952	$ 133,900
Capital to Risk-Weighted Assets	13.37%	15.86%
Capital Required for Capital Adequacy	$ 81,961	$ 67,527
Capital Required for Capital Adequacy to Risk-Weighted Assets	8.00%	8.00%
Tier I Risk Based Capital	$ 130,163	$ 126,623
Tier I Risk Based Capital to Risk-Weighted Assets	12.70%	15.00%
Tier I Risk Based Capital Required for Capital Adequacy	$ 61,470	$ 50,645
Tier I Risk Based Capital Required for Capital Adequacy to Risk-Weighted Assets	6.00%	6.00%
Common Equity Tier I Risk Based Capital	$ 106,663	$ 103,123
Common Equity Tier I Risk Based Capital to Risk-Weighted Assets	10.41%	12.22%
Common Equity Tier I Risk Based Capital Required for Capital Adequacy	$ 46,103	$ 37,984
Common Equity Tier I Risk Based Capital Required for Capital Adequacy to Risk-Weighted Assets	4.50%	4.50%
Tier I Leverage Capital	$ 130,163	$ 126,623
Tier I Leverage Capital to Average Assets	9.34%	10.24%
Tier I Leverage Capital Required for Capital Adequacy	$ 55,765	$ 49,478
Tier I Leverage Capital Required for Capital Adequacy to Average Assets	4.00%	4.00%
Colony Bank [Member]
Capital	$ 148,554	$ 131,723
Capital to Risk-Weighted Assets	14.52%	15.63%
Capital Required for Capital Adequacy	$ 81,856	$ 67,418
Capital Required for Capital Adequacy to Risk-Weighted Assets	8.00%	8.00%
Capital Required to be Well Capitalized	$ 102,320	$ 84,272
Capital Required to be Well Capitalized to Risk-Weighted Assets	10.00%	10.00%
Tier I Risk Based Capital	$ 141,765	$ 124,446
Tier I Risk Based Capital to Risk-Weighted Assets	13.86%	14.77%
Tier I Risk Based Capital Required for Capital Adequacy	$ 61,392	$ 50,563
Tier I Risk Based Capital Required for Capital Adequacy to Risk-Weighted Assets	6.00%	6.00%
Tier I Risk Based Capital Required to be Well Capitalized	$ 81,856	$ 67,418
Tier I Risk Based Capital Required to be Well Capitalized to Risk-Weighted Assets	8.00%	8.00%
Common Equity Tier I Risk Based Capital	$ 141,765	$ 124,446
Common Equity Tier I Risk Based Capital to Risk-Weighted Assets	13.86%	14.77%
Common Equity Tier I Risk Based Capital Required for Capital Adequacy	$ 46,044	$ 37,923
Common Equity Tier I Risk Based Capital Required for Capital Adequacy to Risk-Weighted Assets	4.50%	4.50%
Common Equity Tier I Risk Based Capital Required to Be Well Capitalized	$ 66,508	$ 54,777
Common Equity Tier I Risk Based Capital Required to Be Well Capitalized to Risk-Weighted Assets	6.50%	6.50%
Tier I Leverage Capital	$ 141,765	$ 124,446
Tier I Leverage Capital to Average Assets	10.18%	10.08%
Tier I Leverage Capital Required for Capital Adequacy	$ 55,684	$ 49,396
Tier I Leverage Capital Required for Capital Adequacy to Average Assets	4.00%	4.00%
Tier I Leverage Capital Required to Be Well Capitalized	$ 69,606	$ 61,745
Tier I Leverage Capital Required to Be Well Capitalized to Average Assets	5.00%	5.00%

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Note 13 - Stock-based Compensation (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	6 Months Ended
	Aug. 31, 2018	Jun. 30, 2019
Share Price	$ 17.73
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted	5,650
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total		$ 69,448
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition		2 years 29 days
Share-based Payment Arrangement, Expense		$ 16,668

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Note 14 - Earnings Per Share - Summary of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Net Income Available to Common Stockholders	$ 2,101	$ 3,069	$ 4,936	$ 6,257
Weighted Average Basic Shares Outstanding (in shares)	9,089,461	8,439,258	8,764,909	8,439,258
Restricted Stock (in shares)
Stock Warrants (in shares)		173,000		196,000
Weighted-Average Number of Shares Outstanding for Diluted Earnings Per Common Share (in shares)	9,089,461	8,612,352	8,764,909	8,634,865
Earnings Per Share - Basic (in dollars per share)	$ 0.23	$ 0.36	$ 0.56	$ 0.74
Earnings Per Share - Diluted (in dollars per share)	$ 0.23	$ 0.36	$ 0.56	$ 0.72

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Note 15 - Accumulated Other Comprehensive Income (Loss) - Changes for Unrealized Gains and Losses Securities Available for Sale (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Balance	$ 95,692	$ 90,323
Balance	126,509	95,692
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent [Member]
Balance	(8,190)	(6,492)
Other Comprehensive Income Before Reclassification	8,472	(1,606)
Amounts Reclassified from Accumulated Other Comprehensive Income	(51)	(92)
Change in Unrealized Gains (Losses) on Securities Available for Sale, Net of Reclassification Adjustment and Tax Effects	8,421	(1,698)
Balance	$ 231	$ (8,190)

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Note 16 - Segment Information - Schedule of Segment Reporting Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Net Interest Income	$ 11,825	$ 10,165	$ 22,182	$ 20,294
Provision for Loan Losses	179	44	310	70
Total Noninterest Income	4,000	2,324	6,334	4,758
Noninterest Expenses	13,014	8,601	22,040	17,137
Income Taxes	531	775	1,230	1,588
Segment Profit (Loss)	2,101	3,069	4,936	6,257
Segment Assets	1,506,972	1,204,472	1,506,972	1,204,472	$ 1,251,878
Bank [Member]
Net Interest Income	12,200	10,411	22,832	20,753
Provision for Loan Losses	179	44	310	70
Total Noninterest Income	3,492	2,317	5,675	4,744
Noninterest Expenses	11,636	8,325	20,242	16,605
Income Taxes	737	877	1,548	1,782
Segment Profit (Loss)	3,140	3,482	6,407	7,040
Segment Assets	1,498,212	1,199,709	1,498,212	1,199,709
Mortgage Loan Banking [Member]
Net Interest Income	19		19
Provision for Loan Losses
Total Noninterest Income	500		643
Noninterest Expenses	722		846
Income Taxes			5
Segment Profit (Loss)	(203)		(189)
Segment Assets	4,539		4,539
Corporate Segment [Member]
Net Interest Income	(394)	(246)	(669)	(459)
Provision for Loan Losses
Total Noninterest Income	8	7	16	14
Noninterest Expenses	656	276	952	532
Income Taxes	(206)	(102)	(323)	(194)
Segment Profit (Loss)	(836)	(413)	(1,282)	(783)
Segment Assets	$ 4,221	$ 4,763	$ 4,221	$ 4,763

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Note 17 - Subsequent Events (Details Textual) - $ / shares		3 Months Ended		6 Months Ended
	Jul. 18, 2019	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Common Stock, Dividends, Per Share, Declared		$ 0.075	$ 0.05	$ 0.15	$ 0.10
Subsequent Event [Member]
Common Stock, Dividends, Per Share, Declared	$ 0.075