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Colony Bankcorp, Inc.: Colony Bankcorp, Inc. Announces Third Quarter Results

Fri, 20 Oct 2006 5:00:00 PDT

FITZGERALD, GA -- (MARKET WIRE) -- 10/20/2006 -- Colony Bankcorp, Inc. (NASDAQ: CBAN), today reported record quarterly net income of $2,622,000 for the third quarter of 2006, up 16.48 percent from third quarter 2005 net income of $2,251,000. Diluted earnings per share for the third quarter of 2006 were $0.36 per share compared to $0.31 per share for the same year ago period or an increase of 16.13 percent. Annualized return on assets for the quarter was 0.90 percent and return on equity was 14.45 percent, compared to 0.87 percent and 13.60 percent for the same year ago period, respectively. Net interest margin increased to 3.93 percent for third quarter 2006 compared to 3.82 percent for the same year ago period.

Net income for the nine months ended September 30, 2006 was $7,541,000 or $1.05 per share as compared to $6,672,000, or $0.93 per share for the same year ago period. Earnings per share reflect an increase of 12.90 percent from a year ago. Annualized return on assets for the nine months ended September 30, 2006 was 0.88 percent and return on equity was 14.22 percent, compared to 0.88 percent and 13.83 percent for the nine months ended September 30, 2005, respectively. Net interest margin increased to 3.89 percent for the nine months ended September 30, 2006 compared to 3.82 percent for the same year ago period.

Total assets increased 11.58 percent to $1,186,382,000 on September 30, 2006 from $1,063,211,000 a year ago. Net loans increased 11.41 percent to $926,332,000 on September 30, 2006 from $831,493,000 a year ago. Total deposits increased 12.83 percent to $1,016,327,000 on September 30, 2006 from $900,731,000 a year ago. Shareholders' equity on September 30, 2006 was $74,352,000 and equaled 6.27 percent of total assets.

The company's focus on credit quality resulted in an outstanding quarter as the ratio of non-performing assets to loans and other real estate on September 30, 2006 was 0.84 percent as compared to 1.40 percent on September 30, 2005 and 1.25 percent on December 31, 2005. The third quarter 2006 provision for loan losses were $1,021,000 compared to $869,000 for the same period in 2005, while year to date 2006 provision for loan losses were $2,990,000 compared to $2,702,000 for the same year ago period. Net charge-offs for third quarter 2006 and 2005 were 0.04 percent of average loans, while net charge-offs for the nine months ended September 30, 2006 were 0.14 percent, down from 0.25 percent for the same year ago period. The loan loss reserve of $12,308,000 on September 30, 2006 was 1.31 percent of total loans, which provided coverage of 167.11 percent of non-performing loans and 155.46 percent of non-performing assets, compared to 116.50 percent and 90.00 percent on September 30, 2005, respectively.

During the quarter the board of directors increased the quarterly cash dividend to $0.0825 per share compared to $0.08 per share in the second quarter of 2006 and to the cash dividend of $0.072 per share in the third quarter of 2005. The third quarter dividend payment represents an increase of 14.58 percent over the dividend payment in third quarter 2005.

Colony Bankcorp, Inc. is a multi-bank holding company headquartered in Fitzgerald, Georgia that consists of the following subsidiaries: Colony Bank of Fitzgerald, Colony Bank Wilcox, Colony Bank Ashburn, Colony Bank of Dodge County, Colony Bank Worth, Colony Bank Southeast, Colony Bank Quitman, FSB, Georgia First Mortgage Company and Colony Management Services, Inc. The Company conducts a general full service commercial, consumer and mortgage banking business through twenty-nine offices located in the middle and south Georgia cities of Fitzgerald, Warner Robins, Ashburn, Leesburg, Cordele, Albany, Thomaston, Columbus, Sylvester, Tifton, Moultrie, Douglas, Broxton, Savannah, Eastman, Chester, Soperton, Rochelle, Pitts, Quitman and Valdosta, Georgia.

Colony Bankcorp, Inc. Common Stock is quoted on the Nasdaq National Market under the symbol "CBAN."

Certain statements contained in the preceding release 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) 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; 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. 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 are cautioned not to place undue reliance on these forward-looking statements.

                          COLONY BANKCORP, INC.
                   FINANCIAL HIGHLIGHTS (UNAUDITED)
               DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA

                                    QUARTER ENDED        YEAR-TO-DATE
      EARNINGS SUMMARY            09/30/06  09/30/05  09/30/06  09/30/05
                                  --------  --------  --------  --------
Net Interest Income               $ 10,794  $ 9,266   $ 31,407  $ 27,363
Provision for Loan Losses            1,021      869      2,990     2,702
Non-interest Income                  1,898    1,533      5,524     4,634
Non-interest Expense                 7,680    6,491     22,366    19,067
Income Taxes                         1,369    1,188      4,034     3,556
Net Income                           2,622    2,251      7,541     6,672
Operating Income                     2,622    2,251      7,541     6,672


                          COLONY BANKCORP, INC.
                        FINANCIAL HIGHLIGHTS (UNAUDITED)
               DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA


                                     QUARTER ENDED          YEAR-TO-DATE
  PER SHARE SUMMARY (2)           09/30/06   09/30/05   09/30/06   09/30/05
                                  --------   --------   --------   --------
Common Shares Outstanding        7,190,187  7,181,320  7,190,187  7,181,320
Weighted Average Diluted Shares  7,181,894  7,171,622  7,177,042  7,173,602
Net Income Per Weighted
  Average Diluted Shares        $     0.36 $     0.31 $     1.05 $     0.93
Operating Income Per Weighted
  Average Diluted Shares        $     0.36 $     0.31 $     1.05 $     0.93
Dividends Declared Per Share    $   0.0825 $    0.072 $     0.24 $     0.21


                                     QUARTER ENDED          YEAR-TO-DATE
  OPERATING RATIOS (1)            09/30/06   09/30/05   09/30/06   09/30/05
                                  --------   --------   --------   --------
Net Interest Margin (a)              3.93%      3.82%      3.89%      3.82%
Return on Average Assets
  Based on Net Income                0.90%      0.87%      0.88%      0.88%
Return on Average Assets
  Based on Operating Income          0.90%      0.87%      0.88%      0.88%
Return on Average Equity
  Based on Net Income               14.45%     13.60%     14.22%     13.83%
Return on Average Equity
  Based on Operating Income         14.45%     13.60%     14.22%     13.83%
Efficiency (b)                      60.17%     59.78%     60.26%     59.28%


                                                   QUARTER ENDED
  ENDING BALANCES (2)                       09/30/06         09/30/05
                                            --------         --------
Total Assets                              $1,186,382       $1,063,211
Loans, Net of Reserves                       926,332          831,493
Allowance for Loan Losses                     12,308           10,663
Goodwill                                       2,412            2,412
Intangible Assets                                448              545
Deposits                                   1,016,327          900,731
Stockholders' Equity                          74,352           66,893
Book Value Per Share                      $    10.34       $     9.31
Tangible Book Value Per Share             $     9.94       $     8.90
Shareholders' Equity to Total Assets            6.27%            6.29%
(1) Annualized.
(2) All Per Share Data has been adjusted to reflect 5-for-4 stock split
    effective May 16, 2005.
(a) Computed using fully taxable-equivalent net income.
(b) Computed by dividing non-interest expense by the sum of fully
    taxable-equivalent net interest income and non-interest income and
    excluding any security gains/losses.


                          COLONY BANKCORP, INC.
                      FINANCIAL HIGHLIGHTS (UNAUDITED)
                  DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA

                                     QUARTER ENDED          YEAR-TO-DATE
  AVERAGE BALANCES                09/30/06   09/30/05   09/30/06   09/30/05
                                  --------   --------   --------   --------

Total Assets                    $1,164,579 $1,033,371 $1,145,853 $1,013,793
Loans, Net of Reserves             912,300    819,698    890,616    798,335
Deposits                         1,002,788    872,363    976,570    859,068
Stockholders' Equity                72,592    66,219      70,705     64,323

                                     QUARTER ENDED          YEAR-TO-DATE
  ASSET QUALITY                   09/30/06   09/30/05   09/30/06   09/30/05
                                  --------   --------   --------   --------
Nonperforming Loans            $    7,365 $    9,153 $    7,365 $    9,153
Nonperforming Assets                7,917     11,848      7,917     11,848
Net Loan Chg-offs (Recoveries)        371        325      1,444      2,051
Reserve for Loan Loss to Gross
 Loans                               1.31%      1.27%      1.31%      1.27%
Reserve for Loan Loss to Non-
 performing Loans                  167.11%    116.50%    167.11%    116.50%
Reserve for Loan Loss to Non-
 performing Assets                 155.46%     90.00%    155.46%     90.00%
Net Loan Chg-offs (Recoveries)
 to Avg. Gross Loans                 0.04%      0.04%      0.14%      0.25%
Nonperforming Loans to Gross
 Loans                               0.78%      1.09%      0.78%      1.09%
Nonperforming Assets to Total
 Assets                              0.67%      1.11%      0.67%      1.11%
Nonperforming Assets to Loans
 and Other Real Estate               0.84%      1.40%      0.84%      1.40%


Quarterly Comparative Data (in thousands, except per share data)

                    3Q2006      2Q2006      1Q2006      4Q2005      3Q2005

Assets          $1,186,382  $1,169,161  $1,145,186  $1,108,338  $1,063,211
Loans              926,332     900,781     881,897     848,053     831,493
Deposits         1,016,327   1,005,086     974,672     944,365     900,731
Equity              74,352      71,051      69,625      68,128      66,893
Net Income           2,622       2,610       2,309       2,305       2,251
Net Income Per
 Share (1)            0.36        0.36        0.32        0.32        0.31
Dividends
 Declared Per
 Share (1)          0.0825        0.08      0.0775       0.075       0.072

Key Performance
 Ratios             3Q2006      2Q2006      1Q2006      4Q2005      3Q2005

Return on Assets      0.90%       0.90%       0.83%       0.84%       0.87%
Return on Equity     14.45%      14.80%      13.39%      13.64%      13.60%
Equity/Assets         6.27%       6.08%       6.08%       6.15%       6.29%
Net Interest Margin   3.93%       3.95%       3.80%       3.79%       3.82%

(1) All per share data has been adjusted to reflect 5-for-4 stock split
    effective May 16, 2005.


Consolidated Balance Sheets Colony Bankcorp, Inc.
 (in thousands)
                                              Sept 30, 2006  Sept 30, 2005
                                               (unaudited)    (unaudited)

ASSETS
Cash and Cash Equivalents
  Cash and Due from Banks                       $    23,254    $    23,064
  Federal Funds Sold                                 35,577         43,204
                                                -----------    -----------
                                                     58,831         66,268
                                                -----------    -----------
Interest-Bearing Deposits                             3,156          4,233
                                                -----------    -----------
Investment Securities
  Available for Sale, at Fair Value                 140,010        107,910
  Held for Maturity, at Cost (Fair Value
   of $78 and $80 as of Sept. 30, 2006 and
   Sept. 30, 2005, Respectively)                         78             80
                                                -----------    -----------
                                                    140,088        107,990
                                                -----------    -----------
Federal Home Loan Bank Stock, at Cost                 5,222          5,102
                                                -----------    -----------
Loans                                               939,139        842,354
  Allowance for Loan Losses                         (12,308)       (10,663)
  Unearned Interest and Fees                           (499)          (198)
                                                -----------    -----------
                                                    926,332        831,493
                                                -----------    -----------

Premises and Equipment                               27,558         24,461
                                                -----------    -----------
Other Real Estate                                       552          2,695
                                                -----------    -----------
Goodwill                                              2,412          2,412
                                                -----------    -----------
Other Intangible Assets                                 448            545
                                                -----------    -----------
Other Assets                                         21,783         18,012
                                                -----------    -----------
Total Assets                                    $ 1,186,382    $ 1,063,211
                                                ===========    ===========

LIABILITIES AND STOCKHOLDERS' EQUITY

Deposits
  Noninterest-Bearing                           $    72,033    $    66,381
  Interest-Bearing                                  944,294        834,350
                                                  1,016,327        900,731
                                                -----------    -----------

Borrowed Money
  Subordinated Debentures                            24,229         19,074
  Other Borrowed Money                               63,500         70,781
                                                -----------    -----------
                                                     87,729         89,855
                                                -----------    -----------

Other Liabilities                                     7,974          5,732
                                                -----------    -----------

Stockholders' Equity
  Common Stock, Par Value $1, Authorized
   20,000,000 Shares, Issued 7,190,187 and
   7,181,320 Shares as of Sept. 30, 2006
   and Sept. 30, 2005, Respectively                   7,190          7,181
  Paid in Capital                                    24,202         24,000
  Retained Earnings                                  44,417         36,834
  Restricted Stock- Unearned Compensation              (346)          (358)
  Accumulated Other Comprehensive Loss,
   Net of Tax                                        (1,111)          (764)
                                                -----------    -----------
                                                     74,352         66,893
                                                -----------    -----------
Total Liabilities and Stockholders' Equity      $ 1,186,382    $ 1,063,211
                                                ===========    ===========


Consolidated Statements of Income Colony Bankcorp, Inc.
 (in thousands except per share data)
                                 Quarter                Year-to-Date
                             Three Months Ended      Three Months Ended
                             09/30/06   09/30/05     09/30/06    09/30/05
                           ----------   ----------  ---------  ----------
                           (unaudited) (unaudited) (unaudited) (unaudited)
Interest Income
  Loans, Including Fees    $    19,665  $   15,065  $   55,070  $   42,179
  Federal Funds Sold               462         241       1,458         669
  Deposits with Other
   Banks                            38          23          92          57
  Investment Securities
    U. S. Government
     Agencies                    1,370         782       3,716       2,420
    State, County and
     Municipal                      95          60         274         178
    Corporate Obligations           43          36         116         102
    Dividends on Other
     Investments                    75          55         203         136
                            ----------   ----------  ---------  ----------
                                21,748      16,262      60,929      45,741
                            ----------   ----------  ---------  ----------
Interest Expense
  Deposits                       9,762        5,984     25,938      15,531
  Federal Funds Purchased           12            8         28          15
  Borrowed Money                 1,180        1,004      3,556       2,832
                            ----------   ----------  ---------  ----------
                                10,954        6,996     29,522      18,378
                            ----------   ----------  ---------  ----------
Net Interest Income             10,794        9,266     31,407      27,363
  Provision for Loan
   Losses                        1,021          869      2,990       2,702
                            ----------   ----------  ---------  ----------
Net Interest Income After
 Provision for Loan Losses       9,773        8,397     28,417      24,661
                            ----------   ----------  ---------  ----------

Noninterest Income
  Service Charges on
   Deposits                      1,193        1,077      3,380       3,057
  Other Service Charges,
   Commissions and Fees            207          186        625         539
  Mortgage Fee Income              180          146        516         379
  Other                            318          124      1,003         659
                            ----------   ----------  ---------  ----------
                                 1,898        1,533      5,524       4,634
                            ----------   ----------  ---------  ----------
Noninterest Expense
  Salaries and Employee
   Benefits                      4,350        3,580     12,676      10,454
  Occupancy and Equipment        1,047          994      3,035       2,819
  Other                          2,283        1,917      6,655       5,794
                            ----------   ----------  ---------  ----------
                                 7,680        6,491     22,366      19,067
                            ----------   ----------  ---------  ----------

Income Before Income
 Taxes                          3,991        3,439      11,575      10,228
Income Taxes                    1,369        1,188       4,034       3,556
                            ----------   ----------  ---------  ----------
Net Income                 $    2,622   $    2,251  $    7,541  $    6,672
                           ==========   ==========  ==========  ==========
Net Income Per Share of
 Common Stock
  Basic                    $     0.36   $     0.32  $     1.05  $     0.93
                           ==========   ==========  ==========  ==========
  Diluted                  $     0.36   $     0.31  $     1.05  $     0.93
                           ==========   ==========  ==========  ==========
Weighted Average Basic
 Shares Outstanding         7,181,894    7,143,741   7,176,186   7,143,741
                           ==========   ==========  ==========  ==========
Weighted Average Diluted
 Shares Outstanding         7,181,894    7,171,622   7,177,042   7,173,602
                           ==========   ==========  ==========  ==========


Per Share Data has been adjusted to reflect 5-for-4 stock split
effective May 16, 2005.

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