The following is a summary of the Colony Bankcorp, Inc. (CBAN) Q4 2023 Earnings Call Transcript:
Financial Performance:
Colony Bankcorp reported a Q4 decrease in net income by $206,000 quarter-over-quarter, with net interest income declining approximately by $744,000.
Noninterest income fell by $414,000 due to a drop in mortgage-related income.
Noninterest expenses decreased by about $1.3 million, and the company anticipates noninterest expenses to be around $20 million per quarter.
Total loans rose around 4% to approximately $18.5 million, while total deposits saw a decrease by $46.5 million as a result of the paydown of broker deposits.
The fair value of the investment portfolio increased by over $16 million from the previous quarter, translating to a $12 million improvement in Other Comprehensive Income (OCI).
Business Progress:
The bank is focusing on reaching the break-even point for its mortgage division, with potential improvements expected when the market conditions improve.
Colony Bankcorp has made a strategic decision to decrease its reliance on more expensive wholesale funding and paid down Federal Home Loan Bank (FHLB) advances by $10 million.
Significant growth is anticipated in the small express loans sector in the upcoming year 2024.
The bank has announced its expansion into Northwest Florida and increased its quarterly dividends to $0.1125 per share.
The bank foresees some benefits on some deposits if rates decline, but this might take a quarter or two. It is also working to generate business and price its products appropriately.
More detailed: Colony Bankcorp IR
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