Market Newsdesk

BayCom Corp Reports 2022 Fourth Quarter Earnings of $8.1 Million

WALNUT CREEK, Calif.–(BUSINESS WIRE)–
BayCom Corp (“BayCom” or the “Company”) (NASDAQ: BCML), the holding company for United Business Bank (the “Bank” or “UBB”), announced earnings of $8.1 million, or $0.62 per diluted common share, for the fourth quarter of 2022, compared to earnings of $7.2 million, or $0.54 per diluted common share, for the third quarter of 2022 and $5.4 million, or $0.51 per diluted common share, for the fourth quarter of 2021. For the year ended December 31, 2022, the Company announced earnings of $27.0 million, or $2.06 per diluted common share, compared to $20.7 million, or $1.90 per diluted common share, for the year ended December 31, 2021.

Net income for the fourth quarter of 2022 compared to the prior quarter increased $824,000, or 11.4%, primarily as a result of a $1.7 million increase in net interest income and a $577,000 decrease in provision for loan losses, partially offset by a $1.2 million decrease in noninterest income and a $212,000 increase in noninterest expense. Net income for the fourth quarter of 2022 compared to the fourth quarter of 2021 increased $2.6 million, or 48.1%, primarily as a result of a $7.3 million increase in net interest income, partially offset by a $121,000 increase in provision for loan losses, a $1.1 million decrease in noninterest income, a $2.6 million increase in noninterest expense and a $920,000 increase in provision for income taxes.

Net income increased $6.3 million, or 30.5%, to $27.0 million for the year ended December 31, 2022 compared to $20.7 million in 2021, primarily as a result of a $23.9 million increase in net interest income, partially offset by a $4.0 million increase in provision for loan losses, a $589,000 decrease in noninterest income, a $10.8 million increase in noninterest expense and a $2.2 million increase in provision for income taxes. Included in noninterest income for the year ended December 31, 2022 was $1.6 million in bargain purchase gain related to our acquisition of Pacific Enterprise Bancorp (“PEB”) and its wholly owned operating subsidiary, Pacific Enterprise Bank, during the first quarter of 2022, that was not present during the prior year.

George Guarini, President and Chief Executive Officer, commented, “We are pleased that our financial results for the fourth quarter and full year 2022 are in line with our expectations. Despite the developing rate pressure on deposits, our return on average assets and our net interest margin improved during the year as a result of our loan growth and overall asset sensitivity. The Federal Reserve has indicated that it expects to continue to increase interest rates in 2023, which should continue to contribute to future earnings. In addition, we are seeing lower marketplace premiums on SBA Loans which gives us the opportunity to hold these loans on the balance sheet supplementing loan growth.”

Guarini concluded, “While market conditions may not be very conducive for merger and acquisition activity, we continue to look for selective merger partners. In addition to focusing on achieving our financial metrics, we are continuing to repurchase our shares and pay cash dividends to our shareholders. Our goal continues to be to consistently add value for our clients and shareholders.”

Fourth Quarter Performance Highlights:

• Annualized net interest margin was 4.40% for the current quarter, compared to 3.99% in the preceding quarter and 3.41% in the same quarter a year ago.
• Annualized return on average assets was 1.28% for the current quarter, compared to 1.11% in the preceding quarter and 0.92% in the same quarter a year ago.
• Assets totaled $2.5 billion at both December 31, 2022 and September 30, 2022, compared to $2.4 billion at December 31, 2021.
• Loans, net of deferred fees, totaled $2.0 billion at both December 31, 2022 and September 30, 2022, and totaled $1.7 billion at December 31, 2021.
• Nonperforming loans totaled $15.2 million or 0.75 % of total loans at December 31, 2022, compared to $19.7 million or 0.99% of total loans at September 30, 2022, and $6.9 million or 0.41% of total loans at December 31, 2021.
• The allowance for loan losses totaled $18.9 million, or 0.94% of total loans outstanding, at December 31, 2022, compared to $18.1 million, or 0.90% of total loans outstanding, at September 30, 2022, and $17.7 million, or 1.06% of total loans outstanding, at December 31, 2021. A $617,000 provision for loan losses was recorded during the current quarter compared to a $1.2 million provision for loan losses in the prior quarter, and a $496,000 provision for loan losses in the same quarter a year ago.
• Deposits totaled $2.1 billion at both December 31, 2022, and September 30, 2022, compared to $2.0 billion at December 31, 2021. At December 31, 2022, noninterest bearing deposits totaled $773.3 million, or 37.1% of total deposits, compared to $813.5 million, or 38.5% of total deposits at September 30, 2022, and $710.1 million, or 35.8% of total deposits at December 31, 2021.
• The Company repurchased 236,985 shares of common stock at an average cost of $18.60 per share during the fourth quarter of 2022, compared to 406,534 shares repurchased at an average cost of $19.14 per share during the third quarter of 2022, and 5,125 shares repurchased at an average cost of $18.31 per share during the fourth quarter of 2021.
• On November 16, 2022, the Company announced the declaration of a cash dividend on the Company’s common stock of $0.05 per share, paid on January 13, 2023 to stockholders of record as of December 16, 2022.
• The Bank remained “well-capitalized” institution for regulatory capital purposes at December 31, 2022.

Earnings

Net interest income increased $1.7 million or 7.1%, to $26.5 million for the fourth quarter of 2022 from $24.7 million in the prior quarter and increased $7.3 million, or 37.9%, from $19.2 million in the same quarter a year ago. The increase in net interest income between the periods reflects increases in interest income on loans, cash and cash equivalents and, to a lesser extent, investment securities, including dividend on FRB and FHLB stock, partially offset by higher funding costs related to increased market rates of interest on our deposits and junior subordinated debt. Average interest-earning assets decreased $73.2 million, or 3.0%, and increased $150.7 million, or 6.7% for the three months ended December 31, 2022 compared to the third quarter of 2022 and the fourth quarter of 2021, respectively. Average yield on interest earning assets for the fourth quarter of 2022 was 4.91%, compared to 4.38% for the third quarter of 2022 and 3.79% the fourth quarter of 2021. The increase in average yields on interest-earning assets during the current quarter reflects increases in market interest rates due to recent increases in the target range for federal funds, including a 125 basis points increase during the fourth quarter of 2022, to a range of 4.25% to 4.50%. The average rate paid on interest bearing liabilities for fourth quarter of 2022 was 0.89%, compared to 0.66% for the third quarter of 2022, and 0.64% for the fourth quarter of 2021.

Interest income on loans, including fees, increased $1.8 million, or 7.5%, to $25.8 million for the fourth quarter of 2022 compared to the prior quarter primarily due to a 39 basis point increase in the average loan yield. Interest income on loans, including fees, increased $6.1 million, or 30.6%, during the fourth quarter of 2022 compared to the fourth quarter of 2021 primarily due to a $352.7 million increase in the average loan balance and a 37 basis point increase in the average loan yield. The average loan balance totaled $2.0 billion for both the fourth quarter of 2022 and third quarter of 2022, compared to $1.6 billion for the same quarter a year ago. The average yield on loans was 5.12%, compared to 4.73% for the third quarter of 2022 and 4.75% for the fourth quarter of 2021. The increase in the average yield on loans from the prior quarter was due to the impact of increased rates on variable rate loans as well as new loans being originated at higher interest rates and by a $155,000 increase in accretion of the net discount on acquired loans, partially offset by a $28,000 decrease in PPP loan fees recognized when compared to the prior quarter.

Interest income on loans included $218,000, $63,000, and $409,000 in accretion of the net discount on acquired loans and revenue from purchase credit impaired loans in excess of discounts for the quarters ended December 31, 2022, September 30, 2022, and December 31, 2021, respectively. The balance of the net discounts on these acquired loans totaled $522,000, $480,000, and $2.1 million at December 31, 2022, September 30, 2022, and December 31, 2021, respectively. Interest income included $133,000 in fees earned related to PPP loans in the quarter ended December 31, 2022, compared to $161,000 in the prior quarter 2022 and $1.9 million in the same quarter 2021. Interest income also included fees related to prepayment penalties of $335,000 in the quarter ended December 31, 2022, compared to $195,000 in the prior quarter 2022, and $439,000 in the same quarter in 2021. As of December 31, 2022, total unrecognized fees on PPP loans were $94,000.

Interest income on investment securities available-for-sale increased $57,000 to $1.6 million for the three months ended December 31, 2022, compared to the three months ended September 30, 2022, and increased $424,000, or 36.0%, from $1.2 million for the three months ended December 31, 2021. The increase in the current quarter compared to the same quarter in 2021 was due to the increase in market interest rates which resulted in a 32 basis point increase in the average yield on investment securities available-for-sale to 3.39% for the three months ended December 31, 2022 from 3.07% for the three months ended December 31, 2021. The average balance on investments securities available-for-sale totaled $187.5 million for the three months ended December 31, 2022, compared to $188.7 million and $152.3 million for the three months ended September 30, 2022 and December 31, 2021, respectively.

Interest income on federal funds sold and interest-bearing balances in banks increased $435,000, or 33.8%, to $1.7 million for the three months ended December 31, 2022, compared to $1.3 million for the three months ended September 30, 2022, and increased $1.5 million, or 820.8%, from $186,000 for the three months ended December 31, 2021 as a result of an increase in the average yield. The average yield on federal funds sold and interest-bearing balances in banks increased 167 basis point to 3.85% for the three months ended December 31, 2022, compared to 2.18% for the three months ended September 30, 2022, and increased 367 basis point from 0.18% for the three months ended December 31, 2021. The average balance of federal funds sold and interest-bearing balance in banks totaled $177.4 million for the three months ended December 31, 2022, compared to $234.6 million and $418.8 million for the three months ended September 30, 2022 and December 31, 2021, respectively. In addition, during the fourth quarter of 2022, we received $379,000 in cash dividends on our FRB and FHLB stock, up 32.5% from $286,000 in the prior quarter and up 43.0% from $265,000 in the fourth quarter in 2021.

Interest expense increased $623,000, or 25.8%, to $3.0 million for the three months ended December 31, 2022, compared to $2.4 million for the three months ended September 30, 2022, and increased $854,000, or 39.2%, compared to $2.2 million for the same quarter in 2021, primarily as a result of an increase in the average cost of deposits. Average balance of deposits totaled $2.1 billion for the fourth quarter of 2022, compared to $2.2 billion for the third quarter of 2022 and $2.0 billion for the same quarter in 2021. The average cost of funds for the fourth quarter of 2022 was 0.89% compared to 0.66% for third quarter of 2022 and 0.64% for the same quarter in 2021. The increase in the average cost of funds during the current quarter compared to the prior quarter was due to higher interest rates paid on money market and time deposits due to increased competition and pricing pressures resulting from higher market interest rates generally. The average cost of total deposits for the three months ended December 31, 2022 was 0.37%, compared to 0.25% for the three months ended September 30, 2022, and 0.24% for the three months ended December 31, 2021. The average balance of noninterest bearing deposits increased $7.4 million, or 0.91%, to $809.2 million for the three months ended December 31, 2022, compared to $801.9 million for the three months ended September 30, 2022 and $738.6 million for the three months ended December 31, 2021. In addition, interest expense on junior subordinated debt increased $92,000, or 110.0%, to $176,000 for the three months ended December 31, 2022, compared to $84,000 for the same quarter in 2021 as a result of higher market rates.

Annualized net interest margin was 4.40% for the fourth quarter of 2022, compared to 3.99% for the preceding quarter and 3.41% for fourth quarter of 2021 as a result of our asset sensitive balance sheet. The average yield on interest earning assets for the fourth quarter of 2022 increased 53 basis point and 112 basis point over the average yields for the third quarter of 2022 and the fourth quarter of 2021, while the average rate paid on interest bearing liabilities for fourth quarter of 2022 increase 23 basis points and 25 basis points over the average rates paid for the third quarter of 2022 and the fourth quarter of 2021, respectively. Net interest margin was positively impacted by rising interest rates during the quarter which produced higher yields on loans, investment securities and fed funds sold and interest bearing-balances in banks.

The average yield on PPP loans including the recognition of deferred PPP loan fees was 2.30%, resulting in a positive impact to the net interest margin of three basis points during the fourth quarter of 2022, compared to an average yield of 2.28% with a positive impact to the net interest margin of three basis points during the prior quarter 2022, and compared to an average yield of 8.95% with a positive impact to the net interest margin of 23 basis points during the same quarter in 2021. The accretion of the net discount on acquired loans increased the average yield on loans by 11 basis points during the fourth quarter of 2022, compared to one basis point during the prior quarter 2022, and 15 basis points during the same quarter in 2021. The incremental accretion and the impact on loan yield will change during any period based on the volume of prepayments, but is expected to decrease over time as the balance of the net discount declines.

Based on our review of the allowance for loan losses at December 31, 2022, the Company recorded a $617,000 provision for loan losses for the fourth quarter of 2022, compared to a $1.2 million provision for loan losses and a $496,000 provision for loan losses in the prior quarter 2022 and the same quarter in 2021, respectively. The provision for loan losses in the fourth quarter of 2022 was primarily due to new loan production and, to a lesser extent, a deterioration in forecasted economic conditions and indicators utilized to estimate loan losses, partially offset by $233,000 in net recoveries during the fourth quarter of 2022.

Noninterest income for the fourth quarter of 2022 decreased $1.2 million, or 45.0%, to $1.5 million compared to $2.7 million in the prior quarter 2022 and decreased $1.1 million, or 41.3%, compared to $2.6 million for the same quarter in 2021. The decrease in noninterest income for the current quarter compared to the prior quarter 2022 was due to a $1.2 million decrease in gain on sale of SBA loans (guaranteed portion), primarily due to a decrease in the volume of these loans sold during the current quarter, and a $162,000 decrease in income from our investment in a Small Business Investment Company (“SBIC”) fund, partially offset by a $125,000 increase in servicing charges and other fees. The decrease in noninterest income for the current quarter compared to the same quarter in 2021 was primarily due to a $1.1 million decrease in gain on sale of loans due to a decrease in the volume and premiums observed on SBA loans (guaranteed portion) sold and a $478,000 decrease in SBIC income, partially offset by a $358,000 increase in servicing charges and other fees.

Noninterest expense for the fourth quarter of 2022 increased $212,000, or 1.3%, to $16.3 million compared to $16.1 million for the prior quarter 2022 and increased $2.6 million, or 18.6%, compared to $13.8 million for the same quarter in 2021. The increase in noninterest expense for the current quarter compared to the prior quarter 2022 was primarily due to a $565,000 increase in salaries and employee benefits as a result of increases in salaries and wages in 2022 due to upward market pressure on wages in 2022 and year-end accrual adjustments related to other employee benefits. The increase was partially offset by a $47,000 decrease in occupancy and equipment expenses, a $95,000 decrease in data processing fees and a $211,000 decrease in other noninterest expense. Noninterest expenses for the fourth quarter of 2022 increased compared to the same quarter in 2021 primarily due to $2.1 million increase in salaries and employee benefits as a result of an increase in the number of full-time equivalent employees, reflecting our acquisition of Pacific Enterprise Bancorp (“PEB”) and its bank subsidiary, Pacific Enterprise Bank, in February, 2022, coupled with retention incentives and salary adjustments due to upward market pressure on wages in 2022. The increase was also a result of increases in occupancy and equipment expense of $222,000, data processing fees of $137,000 and other noninterest expenses of $68,000.

The provision for income taxes was $3.0 million for both the fourth quarter 2022 and third quarter of 2022 and increased $920,000 compared to $2.1 million for the fourth quarter of 2021 primarily due to increased pre-tax income. The effective tax rate for the fourth quarter of 2022 was 27.1%, compared to 29.0% for the prior quarter 2022, and 27.7% for the same quarter in 2021. The effective tax rate was lower for the fourth quarter of 2022 compared to the prior quarter 2022 due to year-end true-up adjustments related to non-taxable interest income on tax exempt municipal securities.

Loans and Credit Quality

Loans, net of deferred fees, increased $26.2 million to $2.0 billion at December 31, 2022, compared to September 30, 2022, and increased $356.2 million compared to $1.7 billion at December 31, 2021. The increase in loans at December 31, 2022 compared to September 30, 2022 primarily was due to $127.3 million of new loan originations, partially offset by $101.3 million of loan repayments, including $24.3 million in PPP loan repayments. At December 31, 2022, there was a total of 51 PPP loans outstanding totaling $11.1 million, compared to 138 loans totaling $35.4 million at September 30, 2022.

Nonperforming loans, consisting of non-accrual loans and accruing loans that are 90 days or more past due, totaled $15.2 million or 0.75% of total loans at December 31, 2022, compared to $19.7 million or 0.99% of total loans at September 30, 2022, and $6.9 million or 0.41% of total loans at December 31, 2021. The decrease in nonperforming loans from the prior quarter was primarily due to repayment of $3.3 million in accruing SBA guaranteed PPP loans which were 90 days or more past due and in the process of forgiveness at September 30, 2022, and repayment of a $1.7 million participation interest in a shared national credit, which was restructured as a TDR and placed on non-accrual during the first quarter of 2022. The portion of nonaccrual loans guaranteed by government agencies totaled $839,000, $862,000, and $822,000 at December 31, 2022, September 30, 2022, and December 31, 2021, respectively. There was one loan totaling $934,000 that was 90 days or more past due, still accruing and in the process of collection at December 31, 2022, compared to $3.3 million in accruing SBA guaranteed PPP loans which were 90 days or more past due and in the process of forgiveness at September 30, 2022. Accruing loans past due between 30 and 89 days at December 31, 2022, were $1.5 million, compared to $5.3 million at September 30, 2022, and $3.8 million at December 31, 2021.

At December 31, 2022, the Company’s allowance for loan losses was $18.9 million, or 0.94% of total loans, compared to $18.1 million, or 0.90% of total loans, at September 30, 2022 and $17.7 million, or 1.06% of total loans, at December 31, 2021. The decrease in the allowance for loan losses as a percentage of total loans outstanding at December 31, 2022, as compared to December 31, 2021, was due to the Company’s acquisition of PEB and related acquisition accounting as acquired loans were recorded at their estimate fair value at acquisition and no allowance for loan losses was recorded. We recorded net recoveries of $233,000 for the fourth quarter of 2022, compared to net charge-offs of $944,000 in the prior quarter 2022 and net charge-offs of $95,000 in the same quarter in 2021.

In accordance with acquisition accounting, loans acquired from acquisitions were recorded at their estimated fair value, which resulted in a net discount to the loans contractual amounts. Credit discounts are included in the determination of fair value and as a result, no allowance for loan losses is recorded for acquired loans at the acquisition date. However, the allowance for loan loss includes an estimate for credit deterioration of acquired loans that occurs after the date of acquisition, which is included in the loan loss provision in the period that the deterioration occurred. The discount recorded on the acquired loans is not reflected in the allowance for loan losses or related allowance coverage ratios. As of December 31, 2022, acquired loans net of their discount totaled $257.9 million with a remaining net discount on these loans of $522,000, compared to $299.4 million of acquired loans with a remaining net discount of $480,000 at September 30, 2022, and $53.4 million of acquired loans with a remaining net discount of $2.1 million at December 31, 2021. The net discount includes a credit discount based on estimated losses in the acquired loans partially offset a premium, if any, based market interest rates on the date of acquisition.

Deposits and Borrowings

Deposits totaled $2.1 billion at both December 31, 2022, and September 30, 2022, and $2.0 billion at December 31, 2021. At December 31, 2022, noninterest bearing deposits totaled $773.3 million, or 37.1% of total deposits, compared to $813.5 million, or 38.5% of total deposits at September 30, 2022, and $710.1 million, or 35.8% of total deposits at December 31, 2021.

At both December 31, 2022 and September 30, 2022, the Company had outstanding junior subordinated debt, net of marked-to-market adjustments, related to junior subordinated deferrable interest debentures assumed in connection with its previous acquisitions totaling $8.5 million, compared to $8.4 million at December 31, 2021. At both December 31, 2022 and September 30, 2022, the Company also had outstanding subordinated debt, net of costs to issue, totaling $63.7 million compared to $63.5 million at December 31, 2021.

At December 31, 2022, September 30, 2022 and December 31, 2021, the Company had no other borrowings outstanding.

Shareholders’ Equity

Shareholders’ equity totaled $317.1 million at December 31, 2022, compared to $314.4 million at September 30, 2022, and $262.6 million at December 31, 2021. The increase from the prior period of 2022 reflects net income earned during the quarter, offset by repurchases of $4.2 million of common stock and $644,000 of accrued cash dividends payable for the quarter. In addition, shareholder’s equity was adversely impacted by increased unrealized losses on available for sale securities reflecting the increase in market interest rates during the current quarter, resulting in a $481,000 increase in accumulated other comprehensive loss, net of tax. At December 31, 2022, 480,773 shares remained available for future purchases under the current stock repurchase plan.

About BayCom Corp

The Company, through its wholly owned operating subsidiary, United Business Bank, offers a full-range of loans, including SBA, CalCAP, FSA and USDA guaranteed loans, and deposit products and services to businesses and its affiliates in California, Washington, New Mexico and Colorado. The Bank is an Equal Housing Lender and a member of FDIC. The Company is traded on the NASDAQ under the symbol “BCML”. For more information, go to www.unitedbusinessbank.com.

Forward-Looking Statements

This release, as well as other public or shareholder communications released by the Company, may contain forward-looking statements, including, but not limited to, (i) statements regarding the financial condition, results of operations and business of the Company, (ii) statements about the Company’s plans, objectives, expectations and intentions and other statements that are not historical facts and (iii) other statements identified by the words or phrases “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “intends” or similar expressions that are intended to identify “forward-looking statements”, within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts but instead are based on current beliefs and expectations of the Company’s management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company’s control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change.

There are a number of important factors that could cause future results to differ materially from historical performance and these forward-looking statements. Factors which could cause actual results to differ materially from the results anticipated or implied by our forward-looking statements include, but are not limited to, potential adverse impacts to economic conditions in our local market areas, other markets where the Company has lending relationships, or other aspects of the Company’s business operations or financial markets, including, without limitation, as a result of employment levels, labor shortages and the effects of inflation, a potential recession or slowed economic growth caused by increasing political instability from acts of war including Russia’s invasion of Ukraine, as well as increasing prices and supply chain disruptions, and any governmental or societal responses to new COVID-19 variants; expected revenues, cost savings, synergies and other benefits from our recent acquisition of PEB might not be realized within the expected time frames or at all and costs or difficulties relating to integration matters, including but not limited to customer and employee retention, might be greater than expected; future acquisitions by the Company of other depository institutions or lines of business; future acquisitions by the Company of other depository institutions or lines of business; fluctuations in interest rates, including the effects of inflation; the risks of lending and investing activities, including changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for loan losses; the Company’s ability to access cost-effective funding; fluctuations in real estate values and both residential and commercial real estate market conditions; demand for loans and deposits in the Company’s market area; increased competitive pressures; changes in management’s business strategies; and other factors described in the Company’s latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission (“SEC”) that are available on our website at www.unitedbusinessbank.com and on the SEC’s website at www.sec.gov.

The factors listed above could materially affect the Company’s financial performance and could cause the Company’s actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements.

The Company does not undertake – and specifically declines any obligation – to publicly release the result of any revisions, which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated eventswhether as a result of new information, future events or otherwise, except as may be required by law or NASDAQ rules. When considering forward-looking statements, you should keep in mind these risks and uncertainties. You should not place undue reliance on any forward-looking statement, which speaks only as of the date made.

BAYCOM CORP
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
(Dollars in thousands, except per share data)
		Three months ended												Year ended
		December 31,				September 30,				December 31,				December 31,				December 31,
		2022				2022				2021				2022				2021
Interest income
Loans, including fees		$	25,801			$	24,010			$	19,751			$	95,722			$	76,099
Investment securities			1,602				1,555				1,179				6,085				3,893
Fed funds sold and interest-bearing balances in banks			1,722				1,286				186				4,025				665
FHLB dividends			217				160				148				684				494
FRB dividends			162				126				117				549				458
Total interest and dividend income			29,504				27,137				21,381				107,065				81,609
Interest expense
Deposits			1,963				1,387				1,201				6,273				4,875
Subordinated debt			896				896				896				3,582				3,582
Junior subordinated debt			176				129				84				496				345
Total interest expense			3,035				2,412				2,181				10,351				8,802
Net interest income			26,469				24,725				19,200				96,714				72,807
Provision for loan losses			617				1,194				496				4,441				466
Net interest income after provision for loan losses			25,852				23,531				18,704				92,273				72,341
Noninterest income
Gain on sale of loans			33				1,278				1,090				2,747				4,795
Service charges and other fees			942				817				584				3,107				2,403
Loan servicing fees and other fees			507				488				410				2,176				1,833
(Loss) income on investment in SBIC fund			(225	)			(63	)			253				(70	)			1,274
Bargain purchase gain			—				—				—				1,665				—
Other income and fees			252				224				232				1,048				963
Total noninterest income			1,509				2,744				2,569				10,673				11,268
Noninterest expense
Salaries and employee benefits			10,729				10,164				8,603				40,480				33,761
Occupancy and equipment			1,996				2,043				1,774				8,384				7,384
Data processing			1,467				1,562				1,330				6,969				5,565
Other expense			2,116				2,327				2,048				10,102				8,419
Total noninterest expense			16,308				16,096				13,755				65,935				55,129
Income before provision for income taxes			11,052				10,179				7,518				37,011				28,480
Provision for income taxes			3,000				2,950				2,080				10,024				7,789
Net income		$	8,047			$	7,229			$	5,438			$	26,987			$	20,691
Net income per common share:
Basic		$	0.62			$	0.54			$	0.51			$	2.06			$	1.90
Diluted			0.62				0.54				0.51				2.06				1.90
Weighted average shares used to compute net income per common share:
Basic			12,960,723				13,307,555				10,683,702				13,124,179				10,882,344
Diluted			12,960,723				13,307,555				10,683,702				13,124,179				10,882,344
Comprehensive income
Net income		$	8,047			$	7,229			$	5,438			$	26,987			$	20,691
Other comprehensive income (loss):
Change in unrealized loss on available-for-sale securities			(677	)			(7,198	)			(458	)			(23,848	)			(740	)
Deferred tax benefit			196				2,071				132				6,864				209
Other comprehensive loss, net of tax			(481	)			(5,127	)			(326	)			(16,984	)			(531	)
Comprehensive income		$	7,566			$	2,102			$	5,112			$	10,003			$	20,160

BAYCOM CORP
STATEMENTS OF CONDITION (UNAUDITED)
At December 31, 2022, September 30, 2022, December 31, 2021
(Dollars in thousands)
		December 31,				September 30,				December 31,
		2022				2022				2021
Assets
Cash and due from banks		$	26,980			$	32,206			$	21,178
Federal funds sold and interest-bearing balances in banks			149,835				192,475				358,509
Cash and cash equivalents			176,815				224,681				379,687
Time deposits in banks			2,241				2,490				3,585
Investment securities available-for-sale			167,761				167,213				174,435
Federal Home Loan Bank (“FHLB”) stock, at par			10,679				10,679				8,385
Federal Reserve Bank (“FRB”) stock, at par			9,602				9,595				7,650
Loans held for sale			2,380				3,491				6,470
Loans, net of deferred fees			2,021,124				1,994,966				1,664,890
Allowance for loans losses			(18,900	)			(18,050	)			(17,700	)
Premises and equipment, net			13,278				13,697				14,370
Other real estate owned (“OREO”)			21				21				21
Core deposit intangible			5,201				5,718				6,489
Cash surrender value of bank owned life insurance policies, net			22,193				22,043				21,590
Right-of-use assets			16,569				15,875				12,127
Goodwill			38,838				38,838				38,838
Interest receivable and other assets			45,532				43,241				29,860
Total Assets		$	2,513,334			$	2,534,498			$	2,350,697
Liabilities and Shareholders’ Equity
Noninterest bearing deposits		$	773,274			$	813,510			$	710,137
Interest bearing deposits
Transaction accounts and savings			837,289				937,076				916,379
Premium money market			181,567				140,377				136,563
Time deposits			293,349				224,488				222,160
Total deposits			2,085,479				2,115,451				1,985,239
Junior subordinated deferrable interest debentures, net			8,484				8,464				8,403
Subordinated debt, net			63,711				63,669				63,542
Salary continuation plans			4,840				4,724				4,393
Lease liabilities			17,138				16,411				12,657
Interest payable and other liabilities			16,533				11,376				13,856
Total liabilities			2,196,185				2,220,095				2,088,090
Shareholders’ Equity
Common stock, no par value			204,588				208,770				157,385
Retained earnings			127,379				119,971				103,056
Accumulated other comprehensive (loss) income, net of tax			(14,818	)			(14,338	)			2,166
Total shareholders’ equity			317,149				314,403				262,607
Total Liabilities and Shareholders’ Equity		$	2,513,334			$	2,534,498			$	2,350,697

BAYCOM CORP
FINANCIAL HIGHLIGHTS (UNAUDITED)
(Dollars in thousands, except per share data)
		At and for the three months ended													At and for the year ended
		December 31,				September 30,				December 31,					December 31,				December 31,
Selected Financial Ratios and Other Data:		2022				2022				2021					2022				2021
Performance Ratios:
Return on average assets (1)			1.28	%			1.11	%			0.92	%				1.03	%			0.89	%
Return on average equity (1)			10.15				8.97				8.33					8.50				8.06
Yield on earning assets (1)			4.91				4.38				3.79					4.31				3.74
Rate paid on average interest-bearing liabilities			0.89				0.66				0.64					0.70				0.67
Interest rate spread – average during the period			4.02				3.72				3.15					3.61				3.07
Net interest margin (1)			4.40				3.99				3.41					3.90				3.34
Loan to deposit ratio			96.91				94.30				83.86					96.91				83.86
Efficiency ratio (2)			58.29				58.60				63.19					61.40				65.57
(Recoveries)/charge-offs, net		$	(233	)		$	944			$	95				$	3,241			$	266
Per Share Data:
Shares outstanding at end of period			12,838,462				13,075,447				10,680,386					12,838,462				10,680,386
Average diluted shares outstanding			12,960,723				13,307,555				10,683,702					13,124,179				10,882,344
Diluted earnings per share		$	0.62			$	0.54			$	0.51				$	2.06			$	1.90
Book value per share			24.70				24.05				24.59					24.70				24.14
Tangible book value per share (3)			21.27				20.64				20.34					21.27				20.34
Asset Quality Data:
Nonperforming assets to total assets (4)			0.61	%			0.78	%			0.29	%
Nonperforming loans to total loans (5)			0.75	%			0.99	%			0.41	%
Allowance for loan losses to nonperforming loans (5)			124.16	%			91.70	%			256.98	%
Allowance for loan losses to total loans			0.94	%			0.90	%			1.06	%
Classified assets (graded substandard and doubtful)		$	20,355			$	23,904			$	13,062
Total accruing loans 30‑89 days past due			1,497				5,343				3,832
Total loans 90 days past due and still accruing			934				3,315				—
Capital Ratios (6):
Tier 1 leverage ratio – Bank			13.64	%			12.90	%			10.87	%
Common equity tier 1 – Bank			16.42	%			16.16	%			14.60	%
Tier 1 capital ratio – Bank			16.42	%			16.16	%			14.60	%
Total capital ratio – Bank			17.36	%			17.07	%			15.65	%
Equity to total assets at end of period			12.62	%			12.40	%			11.17	%
Loans:
Real estate		$	1,806,187			$	1,746,157			$	1,407,860
Non-real estate			201,252				233,178				254,131
Nonaccrual loans			14,289				16,369				6,888
Mark to fair value at acquisition			(522	)			(480	)			(2,086	)
Total Loans			2,021,206				1,995,224				1,666,793
Net deferred fees on loans (7)			(82	)			(258	)			(1,903	)
Loans, net of deferred fees		$	2,021,124			$	1,994,966			$	1,664,890
Other Data:
Number of full-service offices			34				34				33
Number of full-time equivalent employees			374				375				307

(1)		Annualized.
(2)		Total noninterest expense as a percentage of net interest income and total noninterest income.
(3)		Tangible book value per share using outstanding common shares excludes goodwill and intangible assets. This ratio represents a non-GAAP financial measure. See “Non-GAAP Financial Measures” below.
(4)		Nonperforming assets consist of nonaccrual loans, accruing loans that are 90 days or more past due, and other real estate owned.
(5)		Nonperforming loans consist of nonaccrual loans and accruing loans that are 90 days or more past due.
(6)		Capital ratios are for United Business Bank only.
(7)		Deferred fees include $94,000, $227,000 and $2.0 million as of December 31, 2022, September 30, 2022, and December 31, 2021, respectively, in fees related to PPP loans.

Non-GAAP Financial Measures:

In addition to results presented in accordance with generally accepted accounting principles utilized in the United States (“GAAP”), this earnings release contains the tangible book value per share, a non-GAAP financial measure. Tangible book value per share is calculated by dividing tangible common shareholders’ equity by the number of common shares outstanding at the end of the period. Tangible common shareholders’ equity is calculated by excluding intangible assets from shareholders’ equity. For this financial measure, the Company’s intangible assets are goodwill and core deposit intangibles. The Company believes that this measure is consistent with the capital treatment by our bank regulatory agencies, which excludes intangible assets from the calculation of risk-based capital ratios, and presents this measure to facilitate comparison of the quality and composition of the Company’s capital over time in comparison to its competitors. Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Further, these non-GAAP financial measure should not be considered in isolation or as a substitute for the comparable financial measures determined in accordance with GAAP and may not be comparable to a similarly titled measure reported by other companies.

Reconciliation of the GAAP and non-GAAP financial measures is presented below:

		Non-GAAP Measures
		(Dollars in thousands, except per share data)
		December 31,				September 30,				December 31,
		2022				2022				2021
Tangible Book Value:
Total common shareholders’ equity		$	317,149			$	314,404			$	262,607
less: Goodwill and other intangibles			44,039				44,556				45,327
Tangible common shareholders’ equity		$	273,110			$	269,848			$	217,280
Total assets		$	2,513,334			$	2,534,498			$	2,350,697
less: Goodwill and other intangibles			44,039				44,556				45,327
Total tangible assets		$	2,469,295			$	2,489,942			$	2,305,370
Tangible equity to tangible assets			11.06	%			10.84	%			9.42	%
Average equity to average assets			12.12	%			11.96	%			11.05	%
Tangible book value per share		$	21.27			$	20.64			$	20.34

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230126005921/en/

BayCom Corp

Keary Colwell, 925-476-1800

[email protected]

KEYWORDS: California United States North America

INDUSTRY KEYWORDS: Banking Professional Services Finance

MEDIA:

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Invitation Homes Announces Dates for Fourth Quarter 2022 Earnings Release and Conference Call

DALLAS–(BUSINESS WIRE)–
Invitation Homes Inc. (NYSE: INVH) (“Invitation Homes” or the “Company”) today announced that it will release its fourth quarter 2022 financial and operating results on Wednesday, February 15, 2023, after the market closes. The Company will host a conference call on Thursday, February 16, 2023, at 11:00 a.m. Eastern Time to review fourth quarter results, discuss recent events, and conduct a question-and-answer session.

The conference call will be available via webcast on the Invitation Homes Investor Relations website at www.invh.com.

To participate in the live telephone conference call:

Domestic Dial-in Number: 1-844-200-6205

International Dial-in Number: 1-929-526-1599

Access Code: 890734

To access a telephone replay of the call:

Domestic Dial-in Number: 1-866-813-9403

International Dial-in Number: 1-929-458-6194

Access Code: 635351

Date Accessible Through: March 18, 2023

About Invitation Homes:

Invitation Homes, an S&P 500 company, is the nation’s premier single-family home leasing company, meeting changing lifestyle demands by providing access to high-quality, updated homes with valued features such as close proximity to jobs and access to good schools. The company’s mission, “Together with you, we make a house a home,” reflects its commitment to providing homes where individuals and families can thrive and high-touch service that continuously enhances residents’ living experiences.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230126005933/en/

Investor Relations Contact:

Scott McLaughlin

844.456.INVH (4684)

[email protected]

Media Relations Contact:

Kristi DesJarlais

972.421.3587

[email protected]

KEYWORDS: United States North America Texas

INDUSTRY KEYWORDS: Construction & Property Residential Building & Real Estate

MEDIA:

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Colony Bankcorp Reports Fourth Quarter and Year Ended 2022 Results

Declares Quarterly Cash Dividend of $0.11 Per Share

FITZGERALD, Ga.–(BUSINESS WIRE)–
Colony Bankcorp, Inc. (Nasdaq: CBAN) (“Colony” or the “Company”) today reported financial results for the fourth quarter of 2022 and for the year ended December 31, 2022. Financial highlights are shown below.

Financial Highlights:

• Net income increased to $5.6 million, or $0.31 per diluted share, for the fourth quarter of 2022, compared to $5.3 million, or $0.30 per diluted share, for the third quarter of 2022, and $4.2 million, or $0.30 per diluted share, for the fourth quarter of 2021.
• Operating net income of $5.6 million, or $0.31 per diluted share remained stable for the fourth quarter of 2022 as compared to $5.3 million, or $0.30 per diluted share, for the third quarter of 2022, and $5.2 million, or $0.40 per diluted share, for the fourth quarter of 2021 (see Reconciliation of Non-GAAP Measures).
• The tax rate for the quarter was meaningfully lower than trend due to the Company’s $500,000 contribution in a Georgia tax credit program with local hospitals. The tax rate for 2023 is estimated to be 18%.
• Provision for loan losses of $900,000 was recorded in fourth quarter of 2022, compared to $1.3 million in the third quarter of 2022, and $50,000 recorded in fourth quarter of 2021.
• Total loans were $1.74 billion at December 31, 2022, an increase of $150.5 million, or 9.49% from the prior quarter.
• Mortgage production was $92.6 million, and mortgage sales totaled $38.1 million in the fourth quarter of 2022 compared to $99.4 million and $68.5 million, respectively, for the third quarter of 2022. For the twelve months ended December 31, 2022, mortgage production was $402.9 million and mortgage sales totaled $280.1 million.
• Small Business Specialty Lending (“SBSL”) closed $29.0 million in Small Business Administration (“SBA”) loans and sold $18.0 million in SBA loans in the fourth quarter of 2022 compared to $19.4 million and $14.8 million, respectively, for the third quarter of 2022. For the twelve months ended December 31, 2022, SBA loans closed were $75.1 million and SBA loans sold were $64.5 million.

The Company also announced that on January 26, 2023, the Board of Directors declared a quarterly cash dividend of $0.11 per share, to be paid on its common stock on February 23, 2023, to shareholders of record as of the close of business on February 9, 2023. The Company had 17,598,123 shares of its common stock outstanding as of January 25, 2023.

In addition, the Company announced today that Terry L. Hester passed away on January 22, 2023. Terry began his career with Colony in 1978 and served as Executive Vice President and Chief Financial Officer at the time of his retirement in 2019. He was currently serving on the Board of Directors of the Company.

Today the Company also announced that Chief Financial Officer Andy Borrmann is leaving the Company to pursue other career opportunities. The Company has appointed Chief Executive Officer T. Heath Fountain to the additional role of Acting Chief Financial Officer of the Company, and current Chief Accounting Officer, Derek Shelnutt to the additional role of Acting Chief Financial Officer of Colony Bank. Shelnutt joined the Company in September of 2020, and has served in many roles in the treasury and finance areas, including Controller and Treasurer, before being named Chief Accounting Officer in May of 2022. He is a Certified Public Accountant and has experience in both banking and public accounting. The Company has initiated a search process for a new Chief Financial Officer.

Fountain continued, “I would like to thank Andy Borrmann for his contributions to the Company since joining us in 2021 through the SouthCrest merger. Andy has contributed significantly to our success, and we wish him well in his future endeavors.”

Commenting on today’s announcement, Heath Fountain, Chief Executive Officer, said, “We were also saddened to learn the recent news of the passing of our director Terry Hester. Our deepest sympathies go out to his family. Terry’s hard work ethic and dedication will leave a long lasting impact on the Colony team. He will be sorely missed by his colleagues in the Company and throughout the banking industry.”

Fountain added, “We are pleased to announce improved results for the 4th quarter of 2022. We continued to experience strong loan growth during the quarter. Our mortgage team also continued to deliver strong production, despite the higher interest environment we experienced in the late third and early fourth quarters. However, as mortgage rates rose, adjustable rate portfolio loan products became more attractive, and our production efforts shifted more toward this portfolio, meaningfully decreasing our secondary market production and thus our gain on sales revenue included within mortgage fee income for the quarter.”

“Earnings quality has also improved during the year, with 93% of our year to date earnings coming from the core bank as compared to 75% in 2021 and 2020. Investments in new lines of business continued to be a short term drag on earnings, reducing our return on assets by approximately 6 basis points in the fourth quarter and 4 basis points year to date.”

“Net interest margin decreased slightly during the quarter as we funded some of our loan growth with higher cost borrowings. We are pleased that we were able to grow core deposits during the quarter 2.5% in a very challenging rate environment. We have placed our bankers’ focus on growing deposits, and we believe our strong retail banking center footprint, combined with our enhanced calling efforts, can continue to profitably fund our loan growth.”

“We expect loan growth to slow considerably in the coming quarters, and should be more in line with our long term goal of 8 – 12% by the second half of the year. We are seeing our loan pipelines decrease as we continue to increase loan pricing, maintain strong credit standards and shift our focus away from commercial real estate lending. We continued to see strong asset quality, as nonperforming loans to total loans remained stable and levels of criticized and classified loans decreased.”

Balance Sheet

• Total assets were $2.94 billion at December 31, 2022, an increase of $130.7 million from September 30, 2022.
• Total loans, including loans held for sale, were at $1.75 billion at December 31, 2022, an increase of $144.3 million from the quarter ended September 30, 2022.
• Total deposits were $2.49 billion and $2.41 billion at December 31, 2022 and September 30, 2022, respectively, an increase of $81.3 million.
• Total borrowings at December 31, 2022 totaled $203.4 million, an increase of $45.0 million or, 28.4%, compared to September 30, 2022 related to additional Federal Home Loan Bank advances and borrowings from the Federal Reserve Bank.

Capital

• Colony continues to maintain a strong capital position, with ratios that exceed regulatory minimums required to be considered as “well-capitalized.”
• Preliminary tier one leverage ratio, tier one capital ratio, total risk-based capital ratio and common equity tier one capital ratio were 9.21%, 12.54%, 15.16%, and 11.39%, respectively, at December 31, 2022.

Fourth Quarter and December 31, 2022 Year to Date Results of Operations

• Net interest income, on a tax-equivalent basis, for the fourth quarter of 2022 totaled $21.5 million, compared to $19.2 million for the fourth quarter of 2021. Net interest income, on a tax-equivalent basis, for the twelve months ended December 31, 2022 totaled $81.1 million, compared to $66.7 million for the twelve months ended December 31, 2021. The increase during the quarter and twelve months ended December 31, 2022 compared to the same periods in 2021 is primarily attributable to increases in loan volume and purchases of investment securities, offset by increases in deposit rates and increases in borrowings to fund loan growth.
• Net interest margin for the quarter increased 7 basis points from the fourth quarter of 2021. This is primarily due to the purchase of higher yielding investment securities and an increase in rates paid on deposits with the Federal Reserve, partially offset by an increase in deposit rates and volume along with an increase in borrowings. Net interest margin for the twelve months ended December 31, 2022 decreased 19 basis points from the twelve months ended December 31, 2021. The decrease is the result of increased deposit rates along with an increase in borrowings.
• Noninterest income totaled $7.7 million for the fourth quarter ended December 31, 2022, a decrease of $3.1 million, or 28.9%, compared to the same period in 2021. The decrease was primarily attributable to decreases in mortgage fee income and SBSL loan sales. Noninterest income totaled $35.1 million for the twelve months ended December 31, 2022, a decrease of $1.2 million, or 3.4%, compared to the same period in 2021. The decrease was primarily attributable to decreases in mortgage fee income and SBSL loan sales, offset by growth in interchange fee income, service charges on deposits and insurance commissions.
• Noninterest expense totaled $21.8 million for the fourth quarter ended December 31, 2022, compared to $24.5 million for the same period in 2021. The decrease was attributable to acquisition costs in the prior period as well as a decrease in salaries. Noninterest expense totaled $89.5 million for the twelve months ended December 31, 2022, compared to $78.6 million for the same period in 2021. The increase for the twelve month period was primarily related to increases in salaries and information technology related to the acquisition of SouthCrest Financial Group, Inc. (“SouthCrest”) in August of 2021.

Asset Quality

• Nonperforming assets totaled $6.4 million and $5.5 million at December 31, 2022 and September 30, 2022, respectively, an increase of $813,000.
• Other real estate owned and repossessed assets totaled approximately $651,000 at December 31, 2022, and $246,000 at September 30, 2022, an increase of $405,000.
• Net loans charged-off were $154,000, or 0.04% of average loans for the fourth quarter of 2022, compared to net charge-offs of $198,000 or 0.05% for the third quarter of 2022.
• The loan loss reserve was $16.1 million, or 0.93% of total loans, at December 31, 2022, compared to $15.2 million, or 0.96% of total loans at September 30, 2022, and $12.9 million, or 0.96% of total loans, at December 31, 2021.

As noted above and in the table on page 8, overall asset quality remains strong.

Stock Buyback Authorization

On October 20, 2022, the Board of Directors of the Company authorized a stock buyback program, under which the Company may repurchase up to $12 million of its outstanding common stock. Repurchases under this program may be made from time to time through open market purchases, privately negotiated transactions or such other manners as will comply with applicable laws and regulations. The timing and actual number of shares repurchased will depend on a variety of factors including price, corporate and regulatory requirements, market conditions and other corporate liquidity requirements and priorities. The buyback program does not obligate the Company to purchase any particular number of shares and there is no guarantee as to the exact number of shares that will be repurchased by the Company. The buyback program is intended to expire at the end of 2023 but may be suspended, modified or terminated by the Company at any time and for any reason, without prior notice. As of December 31, 2022, 40,000 shares had been repurchased at a price of $13.50, leaving $11.5 million available for future repurchase.

Earnings call information

The Company will host an earnings conference call at 9:00 a.m. EST on Friday, January 27, 2023, to discuss the recent results and answer appropriate questions. The conference call can be accessed by dialing 1-844-200-6205 (or 1-929-526-1599 for international participants). The conference call access code is 430149. A replay of the call will be available until Friday, February 3, 2023. To listen to the replay, dial 1-866-813-9403 and enter the access code 892811.

About Colony Bankcorp

Colony Bankcorp, Inc. is the bank holding company for Colony Bank. Founded in 1975 and headquartered in Fitzgerald, Georgia, Colony operates 35 locations throughout Georgia. At Colony Bank, we offer a wide range of banking services including personal banking, business banking, mortgage solutions, government guaranteed lending solutions, and more. We have expanded our services to also include consumer insurance products, such as automotive, homeowners, and other insurance needs for our community. Colony’s common stock is traded on the NASDAQ Global Market under the symbol “CBAN.” For more information, please visit www.colony.bank. You can also follow the Company on social media.

Forward-Looking Statements

Certain statements contained in this press release that are not statements of historical fact constitute “forward-looking statements” within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. 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, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Examples of forward-looking statements include, but are not limited to: (i) projections and/or expectations of revenues, income or loss, earnings or loss per share, the payment or nonpayment of dividends, capital structure and other financial items; (ii) statement of plans and objectives of Colony Bankcorp, Inc. or its management or Board of Directors, including those relating to products or services; (iii) statements of future economic performance; (iv) statements regarding growth strategy, capital management, liquidity and funding, and future profitability; (v) statements regarding the effects of the COVID-19 pandemic and related variants on the Company’s business and financial results and conditions; and (vi) 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.

Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties. Factors that might cause such differences include, but are not limited to: the impact of current and economic conditions, particularly those affecting the financial services industry, including the effects of declines in the real estate market, high unemployment rates, inflationary pressures, elevated interest rates and slowdowns in economic growth, as well as the financial stress on borrowers as a result of the foregoing; the risks of changes in interest rates and their effects on the level, cost, and composition of, and competition for, deposits, loan demand and timing of payments, the values of loan collateral, securities, and interest sensitive assets and liabilities; the ability to attract new or retain existing deposits, to retain or grow loans or additional interest and fee income, or to control noninterest expense; the effect of pricing pressures on the Company’s net interest margin; the failure of assumptions underlying the establishment of reserves for possible credit losses, fair value for loans and other real estate owned; changes in real estate values; the Company’s ability to implement its various strategic and growth initiatives; increased competition in the financial services industry, particularly from regional and national institutions, as well as from fintech companies; economic conditions, either nationally or locally, in areas in which the Company conducts operations being less favorable than expected; changes in the prices, values and sales volumes of residential and commercial real estate; developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance; legislation or regulatory changes which adversely affect the ability of the consolidated Company to conduct business combinations or new operations; the continued impact of the COVID-19 pandemic and related variants on the Company’s assets, business, cash flows, financial condition, liquidity, prospects and results of operations; adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions, including as a result of the Company’s participation in and execution of government programs related to the COVID-19 pandemic and related variants; potential impact of the phase-out of the London Interbank Offered Rate (“LIBOR”) or other changes involving LIBOR; a deterioration of the credit rating for U.S. long-term sovereign debt, actions that the U.S. government may take to avoid exceeding the debt ceiling, or uncertainties surrounding the debt ceiling and the federal budget; significant turbulence or a disruption in the capital or financial markets and the effect of a fall in the stock market prices on our investment securities; the effects of war or other conflicts including the impacts related to or resulting from Russia’s military action in Ukraine; risks related to the Company’s recently completed acquisitions, including that the anticipated benefits from the recently completed acquisitions are not realized in the time frame anticipated or at all as a result of changes in general economic and market conditions or other unexpected factors or events; the risks associated with the Company’s pursuit of future acquisitions; and general competitive, economic, political and market conditions or other unexpected factors or events. These and other factors, risks and uncertainties could cause the actual results, performance or achievements of the Company to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. Many of these factors are beyond the Company’s ability to control or predict.

Forward-looking statements speak only as of the date on which such statements are made. These forward-looking statements are based upon information presently known to the Company’s management and are inherently subjective, uncertain and subject to change due to any number of risks and uncertainties, including, without limitation, the risks and other factors set forth in the Company’s filings with the Securities and Exchange Commission, the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, under the captions “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors,” and in the Company’s quarterly reports on Form 10-Q and current reports on Form 8-K. 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 are cautioned not to place undue reliance on these forward-looking statements.

Explanation of Certain Unaudited Non-GAAP Financial Measures

The measures entitled operating net income, adjusted earnings per diluted share, tangible book value per common share, tangible equity to tangible assets, operating efficiency ratio and pre-provision net revenue are not measures recognized under U.S. generally accepted accounting principles (GAAP) and therefore are considered non-GAAP financial measures. The most comparable GAAP measures are net income, diluted earnings per share, book value per common share, total equity to total assets, efficiency ratio, and net interest income before provision for credit losses, respectively. Operating net income and operating efficiency ratio both exclude acquisition-related expenses. Acquisition-related expenses include fees associated with current period acquisitions and ongoing amortization of intangibles related to prior acquisitions. Adjusted earnings per diluted share includes the adjustments to operating net income. Tangible book value per common share and tangible equity to tangible assets exclude goodwill and other intangibles. Pre-provision net revenue is calculated by adding noninterest income to net interest income before provision for credit losses, and subtracting noninterest expense.

Management uses these non-GAAP financial measures in its analysis of the Company’s performance and believes these presentations provide useful supplemental information, and a clearer understanding of the Company’s performance, and if not provided would be requested by the investor community. The Company believes the non-GAAP measures enhance investors’ understanding of the Company’s business and performance. These measures are also useful in understanding performance trends and facilitate comparisons with the performance of other financial institutions. The limitations associated with operating measures are the risk that persons might disagree as to the appropriateness of items comprising these measures and that different companies might calculate these measures differently.

These disclosures should not be considered an alternative to GAAP. The computations of operating net income, adjusted earnings per diluted share, tangible book value per common share, tangible equity to tangible assets, operating efficiency ratio, and pre-provision net revenue and the reconciliation of these measures to net income, diluted earnings per share, book value per common share, total equity to total assets, efficiency ratio, and net interest income before provision for credit losses are set forth in the table below.

Colony Bankcorp, Inc.
Reconciliation of Non-GAAP Measures
		2022																2021
(dollars in thousands, except per share data)		Fourth Quarter				Third Quarter				Second Quarter				First Quarter				Fourth Quarter
Operating net income reconciliation
Net income (GAAP)		$	5,551			$	5,252			$	3,415			$	5,324			$	4,160
FHLB mark from called borrowings			—				—				751				—				—
Severance costs			—				—				1,346				—				—
Acquisition-related expenses			—				2				1				139				1,261
Writedown of bank premises			—				—				—				—				90
Income tax benefit			—				—				(272	)			(26	)			(284	)
Operating net income		$	5,551			$	5,254			$	5,241			$	5,437			$	5,227
Weighted average diluted shares			17,630,971				17,645,119				17,586,276				15,877,695				13,673,998
Adjusted earnings per diluted share		$	0.31			$	0.30			$	0.30			$	0.37			$	0.40
Tangible book value per common share reconciliation
Book value per common share (GAAP)		$	13.08			$	12.81			$	13.34			$	14.23			$	15.92
Effect of goodwill and other intangibles			(3.10	)			(3.12	)			(3.44	)			(3.40	)			(4.51	)
Tangible book value per common share		$	9.98			$	9.69			$	9.90			$	10.83			$	11.41
Tangible equity to tangible assets reconciliation
Equity to assets (GAAP)			7.84	%			8.06	%			8.60	%			9.32	%			8.09	%
Effect of goodwill and other intangibles			(1.74	) %			(1.84	) %			(2.08	) %			(2.07	) %			(2.15	) %
Tangible equity to tangible assets			6.10	%			6.22	%			6.52	%			7.25	%			5.93	%
Operating efficiency ratio calculation
Efficiency ratio (GAAP)			75.03	%			73.57	%			83.75	%			76.94	%			82.15	%
Severance costs			—				—				(4.61	)			—				—
Acquisition-related expenses			—				(0.01	)			—				(2.20	)			(5.33	)
Writedown of bank premises			—				—				—				—				(0.30	)
Operating efficiency ratio			75.03	%			73.56	%			79.14	%			74.74	%			76.52	%
Pre-provision net revenue
Net interest income before provision for credit losses		$	21,400			$	20,865			$	19,167			$	19,188			$	19,022
Noninterest income			7,688				8,179				10,058				9,152				10,815
		$	29,088			$	29,044			$	29,225			$	28,340			$	29,837
Noninterest expense			21,826				21,367				24,476				21,805				24,512
Pre-provision net revenue		$	7,262			$	7,677			$	4,749			$	6,535			$	5,325

Colony Bankcorp, Inc.
Selected Financial Information
		2022																2021
(dollars in thousands, except per share data)		Fourth Quarter				Third Quarter				Second Quarter				First Quarter				Fourth Quarter
EARNINGS SUMMARY
Net interest income		$	21,400			$	20,865			$	19,167			$	19,188			$	19,022
Provision for loan losses			900				1,320				1,100				50				50
Noninterest income			7,688				8,179				10,058				9,152				10,815
Noninterest expense			21,826				21,367				24,476				21,805				24,512
Income taxes			811				1,105				234				1,161				1,116
Net income			5,551				5,252				3,415				5,324				4,159
PERFORMANCE MEASURES
Per common share:
Common shares outstanding			17,598,123				17,641,123				17,581,212				17,586,333				13,673,898
Weighted average basic shares			17,630,971				17,645,119				17,586,276				15,877,695				13,673,998
Weighted average diluted shares			17,630,971				17,645,119				17,586,276				15,877,695				13,673,998
Earnings per basic share		$	0.31			$	0.30			$	0.19			$	0.34			$	0.30
Earnings per diluted share			0.31				0.30				0.19				0.34				0.30
Adjusted earnings per diluted share(b)			0.31				0.30				0.30				0.37				0.40
Cash dividends declared per share			0.1075				0.1075				0.1075				0.1075				0.1025
Common book value per share			13.08				12.81				13.34				14.23				15.92
Tangible book value per common share(b)			9.98				9.69				9.90				10.83				11.41
Pre-provision net revenue(b)		$	7,262			$	7,677			$	4,749			$	6,535			$	5,325
Performance ratios:
Net interest margin (a)			3.23	%			3.25	%			3.15	%			3.13	%			3.16	%
Return on average assets			0.77				0.75				0.51				0.81				0.64
Return on average total equity			9.76				8.85				5.68				8.88				7.65
Efficiency ratio			75.03				73.56				83.75				76.94				82.15
Operating efficiency ratio (b)			75.03				73.56				79.14				74.74				76.52
ASSET QUALITY
Nonperforming loans (NPLs)		$	5,710			$	5,302			$	4,948			$	6,171			$	5,449
Other real estate owned			651				246				246				246				281
Repossessed assets			—				—				47				48				49
Total nonperforming assets (NPAs)			6,361				5,548				5,241				6,465				5,779
Classified loans			14,414				17,755				19,247				18,306				19,016
Criticized loans			39,760				43,377				49,204				52,859				58,938
Net loan (recoveries)/charge-offs			154				198				58				41				(17	)
Allowance for loan losses to total loans			0.93	%			0.96	%			0.96	%			0.95	%			0.96	%
Allowance for loan losses to total NPLs			282.45				286.34				282.19				209.35				236.92
Allowance for loan losses to total NPAs			253.55				273.65				266.42				199.83				223.40
Net (recoveries)/charge-offs to average loans			0.04				0.05				0.02				0.01				(0.01	)
NPLs to total loans			0.33				0.33				0.34				0.46				0.41
NPAs to total assets			0.22				0.20				0.19				0.24				0.21
NPAs to total loans and foreclosed assets			0.37				0.35				0.36				0.48				0.43
AVERAGE BALANCES
Total assets			2,863,046				2,777,390				2,676,612				2,679,242				2,589,908
Loans, net			1,637,034				1,509,202				1,384,795				1,333,784				1,306,796
Loans, held for sale			22,644				30,238				29,843				28,650				38,543
Deposits			2,460,664				2,366,710				2,325,756				2,341,357				2,274,910
Total stockholders’ equity			225,639				235,557				241,281				243,120				215,783
(a) Computed using fully taxable-equivalent net income.
(b) Non-GAAP measure – see “Explanation of Certain Unaudited Non-GAAP Financial Measures” for more information and reconciliation to GAAP.

Colony Bankcorp, Inc.
Average Balance Sheet and Net Interest Analysis
	Three Months Ended December 31,
	2022									2021
(dollars in thousands)	Average Balances			Income/ Expense			Yields/ Rates			Average Balances			Income/ Expense			Yields/ Rates
Assets
Interest-earning assets:
Loans, net of unearned income 1	$	1,675,324		$	20,320		4.81	%		$	1,345,339		$	16,489		4.86	%
Investment securities, taxable		787,471			5,159		2.60	%			782,906			3,332		1.69	%
Investment securities, tax-exempt 2		114,785			567		1.96	%			101,941			485		1.89	%
Deposits in banks and short term investments		63,320			450		2.82	%			180,784			59		0.13	%
Total interest-earning assets		2,640,900			26,496		3.98	%			2,410,970			20,365		3.35	%
Noninterest-earning assets		222,147									178,938
Total assets	$	2,863,046								$	2,589,908
Liabilities and stockholders’ equity
Interest-bearing liabilities:
Interest-earning demand and savings	$	1,458,051		$	1,706		0.46	%		$	1,357,634		$	299		0.09	%
Other time		438,599			1,496		1.35	%			354,663			381		0.43	%
Total interest-bearing deposits		1,896,650			3,202		0.67	%			1,712,297			680		0.16	%
Federal funds purchased		2,878			32		4.34	%			—			—		—	%
Federal Home Loan Bank advances		90,978			818		3.57	%			51,621			252		1.94	%
Other borrowings		68,295			930		5.40	%			37,038			247		2.64	%
Total other interest-bearing liabilities		162,151			1,780		4.35	%			88,659			499		2.23	%
Total interest-bearing liabilities		2,058,801			4,982		0.96	%			1,800,956			1,179		0.26	%
Noninterest-bearing liabilities:
Demand deposits		564,014								$	562,613
Other liabilities		14,592									10,556
Stockholders’ equity		225,639									215,783
Total noninterest-bearing liabilities and stockholders’ equity		804,245									788,952
Total liabilities and stockholders’ equity	$	2,863,046								$	2,589,908
Interest rate spread							3.02	%								3.09	%
Net interest income				$	21,515								$	19,186
Net interest margin							3.23	%								3.16	%

1The 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 $35,000 and $61,000 for the quarters ended December 31, 2022 and 2021, respectively, are included in income and fees on loans. Accretion income of $40,000 and $95,000 for the quarter ended December 31, 2022 and 2021 are also included in income and fees on loans.

2Taxable-equivalent adjustments totaling $79,000 and $102,000 for the quarters ended December 31, 2022 and 2021, respectively, are included in tax-exempt interest on investment securities.

Colony Bankcorp, Inc.
Average Balance Sheet and Net Interest Analysis
	Twelve months ended December 31,
	2022									2021
(dollars in thousands)	Average Balances			Income/ Expense			Yields/ Rates			Average Balances			Income/ Expense			Yields/ Rates
Assets
Interest-earning assets:
Loans, net of unearned income 3	$	1,505,792		$	70,856		4.71	%		$	1,186,919		$	60,380		5.09	%
Investment securities, taxable		820,356			17,954		2.19	%			547,793			9,343		1.71	%
Investment securities, tax-exempt 4		116,154			2,247		1.93	%			61,476			1,161		1.89	%
Deposits in banks and short term investments		91,825			887		0.97	%			169,188			214		0.13	%
Total interest-earning assets		2,534,127			91,944		3.63	%			1,965,376			71,098		3.62	%
Noninterest-earning assets		215,722									135,916
Total assets	$	2,749,849								$	2,101,292
Liabilities and stockholders’ equity
Interest-bearing liabilities:
Interest-earning demand and savings	$	1,439,234		$	3,047		0.21	%		$	1,073,824		$	929		0.09	%
Other time		370,375			2,829		0.76	%			297,704			1,672		0.56	%
Total interest-bearing deposits		1,809,609			5,876		0.32	%			1,371,528			2,601		0.19	%
Federal funds purchased		2,835			54		1.89	%			—			—		—	%
Federal Home Loan Bank advances5		71,690			2,564		3.58	%			34,849			691		1.98	%
Paycheck Protection Program Liquidity Facility		—			—		—	%			25,546			93		0.36	%
Other borrowings		52,872			2,371		4.48	%			32,686			1,012		3.10	%
Total other interest-bearing liabilities		127,397			4,989		3.92	%			93,081			1,796		1.93	%
Total interest-bearing liabilities		1,937,006			10,865		0.56	%			1,464,609			4,397		0.30	%
Noninterest-bearing liabilities:
Demand deposits	$	564,322								$	449,445
Other liabilities		12,174									11,195
Stockholders’ equity		236,349									176,043
Total noninterest-bearing liabilities and stockholders’ equity		812,845									636,683
Total liabilities and stockholders’ equity	$	2,749,851								$	2,101,292
Interest rate spread							3.07	%								3.32	%
Net interest income				$	81,079								$	66,701
Net interest margin							3.20	%								3.39	%

3 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 $139,000 and $268,000 for the twelve months ended December 31, 2022 and 2021, respectively, are included in income and fees on loans. Accretion income of $590,000 and $470,000 for the twelve months ended December 31, 2022 and 2021 are also included in income and fees on loans.

4 Taxable-equivalent adjustments totaling $315,000 and $244,000 for the twelve months ended December 31, 2022 and 2021, respectively, are included in tax-exempt interest on investment securities.

5Federal Home Loan Bank advances interest expense includes $751,000 for the twelve months ended December 31, 2022 and is the recognized mark on two advances that were acquired in the SouthCrest acquisition that were called early.

Colony Bankcorp, Inc.
Segment Reporting
		2022														2021
(dollars in thousands)		Fourth Quarter				Third Quarter			Second Quarter				First Quarter			Fourth Quarter
Banking Division
Net interest income		$	21,037			$	20,508		$	18,819			$	18,824		$	18,316
Provision for loan losses			900				1,320			1,100				50			50
Noninterest income			4,312				4,288			5,187				4,300			4,480
Noninterest expenses			18,038				17,537			19,504				17,701			19,280
Income taxes			837				1,047			227				900			475
Segment income		$	5,574			$	4,892		$	3,175			$	4,473		$	2,991
Total segment assets		$	2,857,893			$	2,738,082		$	2,664,966			$	2,627,450		$	2,620,501
Full time employees			427				396			396				404			400
Mortgage Banking Division
Net interest income		$	(43	)		$	17		$	57			$	71		$	114
Provision for loan losses			—				—			—				—			—
Noninterest income			1,637				2,345			2,736				2,912			3,102
Noninterest expenses			1,936				2,289			2,799				2,711			2,869
Income taxes			(6	)			10			(7	)			101			334
Segment income		$	(336	)		$	63		$	1			$	171		$	13
Total segment assets		$	18,221			$	16,905		$	20,183			$	19,417		$	25,149
Full time employees			65				61			59				62			55
Small Business Specialty Lending Division
Net interest income		$	406			$	340		$	291			$	293		$	592
Provision for loan losses			—				—			—				—			—
Noninterest income			1,739				1,546			2,135				1,940			3,233
Noninterest expenses			1,852				1,541			2,173				1,393			2,363
Income taxes			(20	)			48			14				160			307
Segment income		$	313			$	297		$	239			$	680		$	1,155
Total segment assets		$	60,456			$	50,925		$	43,553			$	39,921		$	46,065
Full time employees			30				29			28				28			26
Total Consolidated
Net interest income		$	21,400			$	20,865		$	19,167			$	19,188		$	19,022
Provision for loan losses			900				1,320			1,100				50			50
Noninterest income			7,688				8,179			10,058				9,152			10,815
Noninterest expenses			21,826				21,367			24,476				21,805			24,512
Income taxes			811				1,105			234				1,161			1,116
Segment income		$	5,551			$	5,252		$	3,415			$	5,324		$	4,159
Total segment assets		$	2,936,570			$	2,805,912		$	2,728,702			$	2,686,788		$	2,691,715
Full time employees			522				486			483				494			481

Colony Bankcorp, Inc.
Consolidated Balance Sheets
		December 31, 2022				December 31, 2021
(dollars in thousands)		(unaudited)				(audited)
ASSETS
Cash and due from banks		$	20,584			$	18,975
Interest-bearing deposits in banks and federal funds sold			60,094				178,257
Cash and cash equivalents			80,678				197,232
Investment securities available for sale, at fair value			432,553				938,164
Investment securities held to maturity, at amortized cost			465,858				—
Other investments, at cost			13,793				14,012
Loans held for sale			17,743				38,150
Loans, net of unearned income			1,737,106				1,337,977
Allowance for loan losses			(16,128	)			(12,910	)
Loans, net			1,720,978				1,325,067
Premises and equipment			41,606				43,033
Other real estate			651				281
Goodwill			48,923				52,906
Other intangible assets			5,664				7,389
Bank owned life insurance			55,504				55,159
Deferred income taxes, net			28,199				3,644
Other assets			24,420				16,678
Total assets		$	2,936,570			$	2,691,715
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Deposits:
Noninterest-bearing		$	569,170			$	552,576
Interest-bearing			1,921,827				1,822,032
Total deposits			2,490,997				2,374,608
Federal Home Loan Bank advances			125,000				51,656
Other borrowed money			78,352				36,792
Accrued expenses and other liabilities			11,953				10,952
Total liabilities		$	2,706,302			$	2,474,008
Stockholders’ equity
Common stock, $1 par value; 50,000,000 and 20,000,000 shares authorized, 17,598,123 and 13,673,898 issued and outstanding, respectively		$	17,598			$	13,674
Paid in capital			167,537				111,021
Retained earnings			111,573				99,189
Accumulated other comprehensive loss, net of tax			(66,440	)			(6,177	)
Total stockholders’ equity			230,268				217,707
Total liabilities and stockholders’ equity		$	2,936,570			$	2,691,715

Colony Bankcorp, Inc.
Consolidated Statements of Income (unaudited)
		Three months ended December 31,								Twelve months ended December 31,
		2022				2021				2022				2021
(dollars in thousands, except per share data)
Interest income:
Loans, including fees		$	20,285				16,428			$	70,717				60,112
Investment securities			5,647				3,715				19,887				10,260
Deposits in banks and short term investments			450				58				886				214
Total interest income			26,382				20,201				91,490				70,586
Interest expense:
Deposits			3,202				679				5,876				2,601
Federal funds purchased			32				—				54				—
Federal Home Loan Bank advances			818				253				2,564				691
Paycheck Protection Program Liquidity Facility			—				—				—				93
Other borrowings			930				247				2,371				1,012
Total interest expense			4,982				1,179				10,865				4,397
Net interest income			21,400				19,022				80,625				66,189
Provision for loan losses			900				50				3,370				700
Net interest income after provision for loan losses			20,500				18,972				77,255				65,489
Noninterest income:
Service charges on deposits			2,052				1,935				7,875				6,213
Mortgage fee income			1,194				3,106				8,550				13,213
Gain on sale of SBA loans			1,411				2,999				6,216				7,547
(Loss)/Gain on sale of securities			(10	)			(224	)			(82	)			(87	)
Interchange fees			2,043				1,988				8,381				6,929
BOLI income			336				331				1,313				1,041
Other			662				680				2,819				1,434
Total noninterest income			7,688				10,815				35,072				36,290
Noninterest expense:
Salaries and employee benefits			12,311				13,689				52,809				45,596
Occupancy and equipment			1,663				1,979				6,534				6,149
Acquisition related			1				1,592				142				4,617
Information technology expenses			2,552				2,180				9,947				7,673
Professional fees			659				976				3,432				2,951
Advertising and public relations			1,259				840				3,664				2,657
Communications			277				536				1,602				1,373
Writedown of bank premises			—				90				—				90
Other			3,104				2,630				11,345				7,519
Total noninterest expense			21,826				24,512				89,475				78,625
Income before income taxes			6,362				5,275				22,852				23,154
Income taxes			811				1,116				3,310				4,495
Net income		$	5,551			$	4,159			$	19,542			$	18,659
Earnings per common share:
Basic		$	0.31			$	0.30			$	1.14			$	1.66
Diluted			0.31				0.30				1.14				1.66
Dividends declared per share			0.1075				0.1025				0.43				0.41
Weighted average common shares outstanding:
Basic			17,630,971				13,673,898				17,191,079				11,254,130
Diluted			17,630,971				13,673,898				17,191,079				11,254,130

Colony Bankcorp, Inc.
Quarterly Comparison
		2022																2021
(dollars in thousands, except per share data)		Fourth Quarter				Third Quarter				Second Quarter				First Quarter				Fourth Quarter
Assets		$	2,936,570			$	2,805,912			$	2,728,702			$	2,686,788			$	2,691,715
Loans, net			1,720,978				1,571,431				1,438,842				1,341,113				1,325,067
Deposits			2,490,997				2,409,662				2,331,511				2,350,786				2,374,608
Total equity			230,268				226,067				234,595				250,277				217,707
Net income			5,551				5,252				3,415				5,324				4,160
Earnings per basic share		$	0.31			$	0.30			$	0.19			$	0.34			$	0.30
Key Performance Ratios:
Return on average assets			0.77	%			0.75	%			0.51	%			0.81	%			0.64	%
Return on average total equity			9.76	%			8.85	%			5.68	%			8.88	%			7.65	%
Total equity to total assets			7.84	%			8.06	%			8.60	%			9.32	%			8.09	%
Tangible equity to tangible assets (a)			6.10	%			6.22	%			6.52	%			7.25	%			5.93	%
Net interest margin			3.23	%			3.25	%			3.15	%			3.13	%			3.16	%
(a) Non-GAAP measure – see “Explanation of Certain Unaudited Non-GAAP Financial Measures” for more information and reconciliation to GAAP.

Colony Bankcorp, Inc.
Quarterly Loan Comparison
		2022												2021
(dollars in thousands)		Fourth Quarter			Third Quarter			Second Quarter			First Quarter			Fourth Quarter
Core		$	1,540,466		$	1,372,159		$	1,217,498		$	1,093,126		$	990,063
Paycheck Protection Program (“PPP”)			95			98			128			387			8,486
Purchased			196,545			214,356			235,179			260,519			339,428
Total		$	1,737,106		$	1,586,613		$	1,452,805		$	1,354,032		$	1,337,977

Colony Bankcorp, Inc.
Quarterly Loans by Location Comparison
		2022																2021
(dollars in thousands)		Fourth Quarter				Third Quarter				Second Quarter				First Quarter				Fourth Quarter
Atlanta		$	355,010			$	342,944			$	287,460			$	246,629			$	281,040
Augusta			58,042				47,532				36,545				38,462				36,268
Alabama			21,438				7,291				2,255				—				—
Middle Georgia			185,985				168,725				146,159				117,336				117,788
Northwest Georgia			63,994				45,482				38,520				38,430				27,167
Coastal Georgia			280,516				266,626				259,248				237,621				235,799
South Central Georgia			360,435				354,746				348,273				345,421				336,849
Southwest Georgia			130,100				125,309				127,783				118,263				105,937
West Georgia			234,224				191,371				181,791				168,071				161,678
Small Business Specialty Lending			45,849				35,169				23,411				39,934				23,101
Paycheck Protection Program			95				98				128				387				8,486
Purchase Accounting			(452	)			(492	)			(614	)			(697	)			(948	)
Other			1,870				1,812				1,846				4,175				4,812
Total		$	1,737,106			$	1,586,613			$	1,452,805			$	1,354,032			$	1,337,977

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20230126005898/en/

T. Heath Fountain

Chief Executive Officer

229-426-6000, extension 6012

KEYWORDS: United States North America Georgia

INDUSTRY KEYWORDS: Banking Fintech Professional Services Finance

MEDIA:

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