Colony Bankcorp, Inc. Announces Third Quarter Results

Market Wire, October, 2006

Colony Bankcorp, Inc. (NASDAQ: CBAN), today reported record quarterly net income of $2,622,000 for the third quarter of 2006, up 16.48 percent from third quarter 2005 net income of $2,251,000. Diluted earnings per share for the third quarter of 2006 were $0.36 per share compared to $0.31 per share for the same year ago period or an increase of 16.13 percent. Annualized return on assets for the quarter was 0.90 percent and return on equity was 14.45 percent, compared to 0.87 percent and 13.60 percent for the same year ago period, respectively. Net interest margin increased to 3.93 percent for third quarter 2006 compared to 3.82 percent for the same year ago period.

Net income for the nine months ended September 30, 2006 was $7,541,000 or $1.05 per share as compared to $6,672,000, or $0.93 per share for the same year ago period. Earnings per share reflect an increase of 12.90 percent from a year ago. Annualized return on assets for the nine months ended September 30, 2006 was 0.88 percent and return on equity was 14.22 percent, compared to 0.88 percent and 13.83 percent for the nine months ended September 30, 2005, respectively. Net interest margin increased to 3.89 percent for the nine months ended September 30, 2006 compared to 3.82 percent for the same year ago period.

Total assets increased 11.58 percent to $1,186,382,000 on September 30, 2006 from $1,063,211,000 a year ago. Net loans increased 11.41 percent to $926,332,000 on September 30, 2006 from $831,493,000 a year ago. Total deposits increased 12.83 percent to $1,016,327,000 on September 30, 2006 from $900,731,000 a year ago. Shareholders' equity on September 30, 2006 was $74,352,000 and equaled 6.27 percent of total assets.

The company's focus on credit quality resulted in an outstanding quarter as the ratio of non-performing assets to loans and other real estate on September 30, 2006 was 0.84 percent as compared to 1.40 percent on September 30, 2005 and 1.25 percent on December 31, 2005. The third quarter 2006 provision for loan losses were $1,021,000 compared to $869,000 for the same period in 2005, while year to date 2006 provision for loan losses were $2,990,000 compared to $2,702,000 for the same year ago period. Net charge-offs for third quarter 2006 and 2005 were 0.04 percent of average loans, while net charge-offs for the nine months ended September 30, 2006 were 0.14 percent, down from 0.25 percent for the same year ago period. The loan loss reserve of $12,308,000 on September 30, 2006 was 1.31 percent of total loans, which provided coverage of 167.11 percent of non-performing loans and 155.46 percent of non-performing assets, compared to 116.50 percent and 90.00 percent on September 30, 2005, respectively.

During the quarter the board of directors increased the quarterly cash dividend to $0.0825 per share compared to $0.08 per share in the second quarter of 2006 and to the cash dividend of $0.072 per share in the third quarter of 2005. The third quarter dividend payment represents an increase of 14.58 percent over the dividend payment in third quarter 2005.

Colony Bankcorp, Inc. is a multi-bank holding company headquartered in Fitzgerald, Georgia that consists of the following subsidiaries: Colony Bank of Fitzgerald, Colony Bank Wilcox, Colony Bank Ashburn, Colony Bank of Dodge County, Colony Bank Worth, Colony Bank Southeast, Colony Bank Quitman, FSB, Georgia First Mortgage Company and Colony Management Services, Inc. The Company conducts a general full service commercial, consumer and mortgage banking business through twenty-nine offices located in the middle and south Georgia cities of Fitzgerald, Warner Robins, Ashburn, Leesburg, Cordele, Albany, Thomaston, Columbus, Sylvester, Tifton, Moultrie, Douglas, Broxton, Savannah, Eastman, Chester, Soperton, Rochelle, Pitts, Quitman and Valdosta, Georgia.

Colony Bankcorp, Inc. Common Stock is quoted on the Nasdaq National Market under the symbol "CBAN."

Certain statements contained in the preceding release that are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"), notwithstanding that such statements are not specifically identified. In addition, certain statements may be contained in the Company's future filings with the SEC, in press releases, and in oral and written statements made by or with the approval of the Company that are not statements of historical fact and constitute forward-looking statements within the meaning of the Act. Examples of forward-looking statements include, but are not limited to: (i) projections of revenues, income or loss, earnings or loss per share, the payment or nonpayment of dividends, capital structure and other financial items; (ii) statement of plans and objectives of Colony Bankcorp, Inc. or its management or Board of Directors, including those relating to products or services; (iii) statements of future economic performance; and (iv) statements of assumptions underlying such statements. Words such as "believes," "anticipates," "expects," "intends," "targeted" and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements.