Financial Performance - The company reported net income of $3.1 million, or $0.33 per diluted share, for Q3 2020, compared to net income of $2.5 million, or $0.27 per diluted share, for Q3 2019[236]. - Net interest income increased to $13.8 million for Q3 2020, compared to $12.7 million for Q3 2019, driven by increased loan fee income from PPP loan originations[237]. - Noninterest income for Q3 2020 was $7.6 million, an increase of $3.5 million or 86.9% compared to Q3 2019[242]. - Net income for Q3 2020 was $3.1 million, compared to $2.5 million for Q3 2019, representing an increase of 24%[250]. - Operating net income for Q3 2020 was $3.7 million, compared to $3.2 million for the same period in 2019[251]. - Adjusted earnings per diluted share for Q3 2020 was $0.39, up from $0.34 in Q3 2019[248]. Asset and Loan Metrics - As of September 30, 2020, the company had total consolidated assets of $1.8 billion, total loans of $1.1 billion, total deposits of $1.4 billion, and shareholders' equity of $140.3 million[236]. - Total assets as of Q3 2020 were $1.77 billion, compared to $1.49 billion in Q3 2019[254]. - Total loans reached $1,101.6 million as of September 30, 2020, compared to $968.8 million at December 31, 2019[1]. - Gross loans outstanding increased to $1.1 billion at September 30, 2020, up $132.8 million, or 13.7%, from $968.8 million at December 31, 2019[286]. - Average assets increased by $184.3 million, or 19.3%, and average liabilities increased by $147.9 million since Q3 2019[258]. Interest Income and Margin - The net interest margin decreased to 3.34% for Q3 2020 from 3.62% for Q3 2019, primarily due to an increase in loan production at lower rates from PPP loans[237]. - Net interest income for Q3 2020 was $13.9 million, an increase of $1.2 million, or 9.4%, compared to Q3 2019[259]. - The yield on total interest-bearing liabilities decreased from 1.23% in Q3 2019 to 0.52% in Q3 2020[260]. - Deposit costs decreased from 1.06% in Q3 2019 to 0.42% in Q3 2020, influenced by falling interest rates[261]. - Total interest-earning assets for Q3 2020 were $1.658 billion, generating $15.635 million in income, with a yield of 3.74%[262]. Loan Loss Provisions and Allowances - The provision for loan losses was $1.1 million for Q3 2020, compared to $214,000 for Q3 2019, reflecting increased risk due to the COVID-19 pandemic[239]. - As of September 30, 2020, the allowance for loan losses was $11.0 million, or 1.00% of total loans, up from $6.9 million, or 0.71% of total loans, at December 31, 2019[239]. - The allowance for loan losses to total loans ratio was 1.00% in Q3 2020, up from 0.69% in Q3 2019[252]. - The provision for loan loss for the nine months ended September 30, 2020, was $5.3 million, compared to $524,000 for the same period in 2019[298]. - The company has incorporated additional qualitative measures in the allowance for loan losses calculation due to the ongoing impact of the COVID-19 pandemic[294]. Nonperforming Assets - Nonperforming assets were $11.8 million as of September 30, 2020, or 0.67% of total assets, compared to $10.5 million, or 0.69% of total assets, at December 31, 2019[239]. - Nonperforming loans (NPLs) decreased to $9.9 million in Q3 2020 from $10.1 million in Q3 2019[252]. - Nonaccrual loans totaled $9.9 million at September 30, 2020, an increase of $0.7 million, or 8.1%, from $9.2 million at December 31, 2019[300]. - Total nonperforming assets as a percentage of total assets decreased to 0.67% at September 30, 2020, from 0.69% at December 31, 2019[300]. - Nonperforming assets (NPAs) as a percentage of total loans and other real estate owned (OREO) decreased to 1.07% as of September 30, 2020, from 1.08% as of December 31, 2019[306]. Capital and Deposits - The Company reported a Common Equity Tier 1 (CET1) risk-based capital ratio of 12.16% as of September 30, 2020, up from 10.33% as of December 31, 2019[325]. - Total capital ratio was 15.29% as of September 30, 2020, compared to 13.17% as of December 31, 2019, indicating improved capital adequacy[325]. - Total deposits increased to $1.416 billion as of September 30, 2020, compared to $1.294 billion as of December 31, 2019, representing a growth of approximately 9.5%[309]. - The Company had $76.0 million in brokered deposits as of September 30, 2020, a significant increase from $2.0 million as of December 31, 2019[310]. - Cash and cash equivalents rose to $148.8 million as of September 30, 2020, compared to $104.1 million as of December 31, 2019, reflecting an increase of 42.7%[318]. COVID-19 Impact - The company closed approximately 1,630 PPP loans for an aggregate amount exceeding $137.8 million, with loan fees collected of approximately $5.5 million[233]. - The Company had approximately $12.6 million in loans under modified terms due to COVID-19 as of September 30, 2020[307]. - The company remains focused on improving shareholder value, managing credit exposure, and enhancing the customer experience amid the ongoing pandemic[230]. - 5.8% of the loan portfolio, or $63.9 million, is in the hotel sector, which is expected to be most sensitive to the COVID-19 pandemic[301]. - The provision for loan losses for the three months ended September 30, 2020 was $1.1 million, significantly higher than $214,000 for the same period in 2019, reflecting economic disruptions due to COVID-19[270]. Expense Management - Noninterest expense for Q3 2020 was $16.3 million, up $3.0 million or 22.1% from the same period in 2019[243]. - Salaries and employee benefits increased by $1.9 million, or 26.7%, for the three months ended September 30, 2020, compared to the same period in 2019[281]. - Total noninterest expense for the third quarter of 2020 was $16.3 million, up $3.0 million, or 22.1%, from $13.4 million in the same period in 2019[280].
Colony Bank(CBAN) - 2020 Q3 - Quarterly Report