On July 24, 2024, Colony Bankcorp Inc (CBAN, Financial) released its 8-K filing detailing the financial results for the second quarter of 2024. Colony Bankcorp Inc is a bank holding company that provides a broad range of banking services to retail and commercial customers. The company operates through segments including the Banking Division, Retail Mortgage Division, and Small Business Specialty Lending divisions, generating maximum revenue from the Banking Division.
Performance Overview
Colony Bankcorp Inc reported a net income of $5.5 million, or $0.31 per diluted share, for Q2 2024, aligning with the analyst estimate of $0.31 per share. This represents a slight increase from the $5.3 million, or $0.30 per diluted share, reported in both Q1 2024 and Q2 2023. Operating net income also saw an uptick to $6.0 million, or $0.34 per adjusted diluted share, compared to $5.8 million, or $0.33 per adjusted diluted share, in Q1 2024.
Key Financial Metrics
Colony Bankcorp Inc's total loans increased to $1.87 billion as of June 30, 2024, a 0.35% rise from the previous quarter. However, total deposits decreased by $62.5 million to $2.46 billion over the same period. Mortgage production and sales also saw significant activity, with $65.1 million in mortgage production and $45.2 million in mortgage sales for Q2 2024.
| Metric | Q2 2024 | Q1 2024 | Q2 2023 |
|---|---|---|---|
| Net Income | $5.5 million | $5.3 million | $5.3 million |
| Earnings Per Share (EPS) | $0.31 | $0.30 | $0.30 |
| Total Loans | $1.87 billion | $1.86 billion | $1.81 billion |
| Total Deposits | $2.46 billion | $2.52 billion | $2.52 billion |
Financial Achievements and Challenges
Colony Bankcorp Inc's provision for credit losses decreased to $650,000 in Q2 2024 from $1.0 million in Q1 2024, indicating improved credit quality. The company's net interest margin, however, declined slightly to 2.68% from 2.77% in Q1 2024, reflecting the challenges posed by rising interest rates on interest-bearing liabilities.
"We are excited to announce our improved operating results in the second quarter as we continue to see the impacts of our team’s progress toward our strategic goals," said Heath Fountain, Chief Executive Officer.
Balance Sheet and Capital Position
As of June 30, 2024, Colony Bankcorp Inc's total assets stood at $3.01 billion, a slight decrease from $3.02 billion at the end of Q1 2024. The company maintained a strong capital position with a tier one leverage ratio of 9.44% and a total risk-based capital ratio of 16.17%, both exceeding regulatory minimums.
Income and Expense Analysis
Net interest income for Q2 2024 was $18.6 million, down from $19.3 million in Q2 2023. Noninterest income increased by 6.09% to $9.5 million, driven by gains on sales of SBA loans and income from wealth advisory services. Noninterest expense decreased to $20.3 million from $21.4 million in Q2 2023, primarily due to reduced salaries and employee benefits.
Asset Quality
Nonperforming assets totaled $7.3 million at the end of Q2 2024, a slight increase from $7.0 million in Q1 2024. The allowance for credit losses was $18.8 million, or 1.01% of total loans, up from $18.7 million, or 1.00%, in the previous quarter.
Conclusion
Colony Bankcorp Inc's Q2 2024 earnings report demonstrates steady financial performance and strategic growth, aligning with analyst estimates. The company's focus on improving noninterest income and maintaining strong credit quality positions it well for future growth. For more detailed insights, visit the full 8-K filing.
Explore the complete 8-K earnings release (here) from Colony Bankcorp Inc for further details.
