In This Article:
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Operating Net Income Increase: $238,000 increase during the quarter.
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Net Interest Income Increase: Approximately $132,000 increase in the third quarter.
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Interest Income Increase: Over $1.2 million increase in the third quarter.
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Interest Expense on Deposits: Increased by about $1 million.
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Noninterest Income Increase: Approximately $417,000 increase, led by mortgage banking.
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Operating Noninterest Expense: Increased by about $240,000.
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Provision Expense: Totaled $750,000 for the quarter.
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Total Loans Held for Investment Increase: $20 million increase from the prior quarter, roughly 4% annualized.
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Total Deposits Increase: About $64.7 million increase.
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Mortgage Net Income: $275,000 for the second quarter, an increase of $137,000 from the prior quarter.
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Small Business Specialty Lending Division Net Income: $1.5 million during the quarter, $174,000 increase from the prior quarter.
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Stock Repurchase: 35,000 shares at an average price of $15.05.
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Quarterly Cash Dividend: $11.25 per share declared.
Release Date: October 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Colony Bankcorp Inc (NASDAQ:CBAN) reported an increase in operating net income by $238,000 during the third quarter, driven by increases in both net interest income and noninterest income.
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The company experienced a 20% increase in pretax net income from its complementary lines of business, all of which were profitable in the third quarter.
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Net interest income increased by approximately $132,000, marking the first quarter-over-quarter increase in the past year.
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Total deposits grew in the third quarter, with a return of customer deposits after seasonal fluctuations.
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Colony Bankcorp Inc (NASDAQ:CBAN) launched a new digital online banking platform, enhancing customer experience and supporting future growth and expansion.
Negative Points
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The company experienced a slight decrease in margin during the quarter, despite the increase in net interest income.
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There was a mix shift in deposits, with an increase in CDs and money market accounts and a decrease in DDAs, negatively impacting the margin.
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Nonperforming loans increased during the quarter, although they were coming off historic lows.
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Mortgage banking, while having a good quarter, faces challenges due to fluctuating mortgage rates and inventory challenges.
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The company expects some large loan payoffs in the fourth quarter, which could pressure loan growth.
Q & A Highlights
Q: Can we annualize the core earnings for 2025 based on the current quarter's performance? A: Derek Shelnutt, CFO, confirmed that it is reasonable to annualize the current quarter's core earnings for 2025. The company is seeing improvements in complementary lines of business and expects a conservative increase in margin, coupled with growth, to provide a solid foundation for the next year.