Colony Bankcorp Q2 operating EPS rises on higher service charges

Overview

• U.S. regional bank's Q2 operating EPS rose to $0.52 from $0.46 a year ago

• Loan growth accelerated in Q2, while deposits declined due to seasonal patterns

• Company declared a quarterly cash dividend of $0.12 per share, unchanged from prior quarter

Outlook

• Colony expects to maintain operating return on average assets at 1.20% going forward

• Company remains on track to close merger with First Reliance in fourth qtr

• Colony expects loan growth to stay within annualized 8% to 12% target range

Result Drivers

• LOAN GROWTH AND PRICING - Co said accelerated loan growth and disciplined pricing on new production and renewals drove margin expansion

• NONINTEREST INCOME GAINS - Higher service charges, mortgage fee income, interchange fees, insurance commissions and wealth advisor income boosted noninterest income, partly offset by lower SBA loan sales gains and higher securities losses

• EFFICIENCY IMPROVEMENT - Co attributed improved operating efficiency to capturing efficiencies following the TC Federal integration

Company press release: ID:nBw1vgRP5a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Colony Bankcorp Inc is $24.50, about 17.5% above its July 21 closing price of $20.85

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads

• July 21 - Southern First Bancshares' Q2 profit rises on loan growth and margin expansion

• July 20 - ServisFirst Bancshares Q2 EPS rises 40% on loan growth, higher net interest margin

• July 21 - First Financial Bancorp Q2 adjusted EPS hits record on loan growth

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)