Financial Performance:
- Net income amounted to $5.3 million, or $0.30 per diluted share, for Q1 2024. This showed a decrease from $5.6 million, or $0.32 per diluted share, in Q4 2023, but an increase from $5.0 million, or $0.29 per diluted share, in Q1 2023.
- Operating net income increased to $5.8 million, or $0.33 adjusted earnings per diluted share, for Q1 2024, compared to $5.4 million, or $0.31 adjusted earnings per diluted share, in Q4 2023, and $5.5 million, or $0.31 adjusted earnings per diluted share, in Q1 2023.
Financial Position and Operations:
- Colony maintained strong liquidity, with available funding sources of approximately $1.3 billion as of March 31, 2024. No overnight borrowings were utilized at the time.
- Uninsured deposits stood at $785.6 million, comprising 30.82% of total bank deposits, with an adjusted estimate of $459.9 million, or 18.04% of total bank deposits.
- The provision for credit losses totaled $1.0 million in Q1 2024, compared to $1.5 million in Q4 2023, and $900,000 in Q1 2023.
- Total loans decreased to $1.86 billion at March 31, 2024, a decline of $24.5 million, or 1.30%, from the prior quarter.
- Total deposits amounted to $2.52 billion at March 31, 2024, down $22.0 million from December 31, 2023.
- Mortgage production was $50.1 million, with mortgage sales totaling $36.6 million in Q1 2024.
- Small Business Specialty Lending (SBSL) closed $35.6 million in Small Business Administration (SBA) loans and sold $24.0 million in SBA loans in Q1 2024.
Dividend Declaration:
- The Board of Directors declared a quarterly cash dividend of $0.1125 per share, payable on May 22, 2024, to shareholders of record as of May 8, 2024. The Company had 17,558,611 shares of its common stock outstanding as of April 23, 2024.
CEO Statement: Heath Fountain, Chief Executive Officer, expressed satisfaction with the improved operating results for Q1, highlighting the continued enhancement in complementary lines of business contributing to increased noninterest income. Despite a slight decline in margin and total loans, Fountain expressed optimism about modest loan growth for the remainder of the year.
Balance Sheet and Capital:
- Total assets decreased to $3.02 billion at March 31, 2024, a decline of $37.9 million from December 31, 2023.
- Total loans, including loans held for sale, were at $1.89 billion at March 31, 2024, down $21.3 million from December 31, 2023.
- Total deposits decreased to $2.52 billion at March 31, 2024, compared to $2.54 billion at December 31, 2023.
- Colony maintained a strong capital position, with ratios exceeding regulatory minimums required to be considered as “well-capitalized.”
Operational Results:
- Net interest income totaled $18.8 million for Q1 2024, compared to $20.7 million for the same period in 2023.
- Noninterest income amounted to $9.5 million for Q1 2024, reflecting an increase of $1.8 million, or 23.87%, compared to the same period in 2023.
- Noninterest expense totaled $20.4 million for Q1 2024, down from $21.2 million for the same period in 2023.
Asset Quality:
- Nonperforming assets totaled $7.0 million at March 31, 2024, a decrease from $10.7 million at December 31, 2023.
- Net loans charged-off were $664,000 for Q1 2024, compared to $692,000 for Q4 2023.
- The credit loss reserve was $18.7 million, or 1.00% of total loans, at March 31, 2024, compared to $18.4 million, or 0.98% of total loans at December 31, 2023.
Earnings Call Information:
- The Company will host an earnings conference call at 9:00 a.m. ET on Thursday, April 25, 2024, accessible by dial
