Colony Bankcorp, Inc. Announces Fourth Quarter Results

Colony Bankcorp, Inc. (NASDAQ: CBAN) reached a milestone surpassing $10 million in earnings with net income of $10,152,000 for 2006, up 13.09 percent from 2005 net income of $8,977,000. Diluted earnings per share for 2006 were $1.41 per share compared to $1.25 per share for 2005 or an increase of 12.80 percent. Return on assets for 2006 was 0.87 percent and return on equity was 14.10 percent, compared to 0.87 percent and 13.78 percent for 2005, respectively. Net interest margin had a slight increase to 3.84 percent for 2006 compared to 3.81 percent for 2005.

Net income for the three months ended December 31, 2006 was $2,611,000 or $0.36 per share as compared to $2,305,000, or $0.32 per share for the same year ago period. Earnings per share reflect an increase of 12.50 percent from a year ago. Annualized return on assets for the three months ended December 31, 2006 was 0.87 percent and return on equity was 13.83 percent, compared to 0.84 percent and 13.63 percent for the three months ended December 31, 2005, respectively. Net interest margin decreased to 3.70 percent for the three months ended December 31, 2006 compared to 3.79 percent for the same year ago period.

Total assets increased 9.49 percent to $1,213,504,000 on December 31, 2006 from $1,108,338,000 a year ago. Net loans increased 9.64 percent to $929,783,000 on December 31, 2006 from $848,053,000 a year ago. Total deposits increased 10.39 percent to $1,042,446,000 on December 31, 2006 from $944,365,000 a year ago. Shareholders' equity on December 31, 2006 was $76,611,000 and equaled 6.31 percent of total assets.

The company's focus on credit quality resulted in continued improvement during 2006 as the ratio of non-performing assets to loans and other real estate on December 31, 2006 was 0.96 percent as compared to 1.25 percent on December 31, 2005. Total nonperforming assets decreased $1,717,000 to $9,048,000 on December 31, 2006 from $10,765,000 on December 31, 2005, or a decrease of 15.95 percent. Total 2006 provision for loan losses were $3,987,000 compared to $3,444,000 for 2005. Net charge-offs for 2006 were 0.30 percent of average loans, while net charge-offs for 2005 were 0.33 percent. During fourth quarter 2006, net charge-offs were 0.14 percent of average loans as the company recognized losses primarily in commercial real estate and commercial business loans. The loan loss reserve of $11,989,000 on December 31, 2006 was 1.27 percent of total loans, which provided coverage of 148.42 percent of non-performing loans and 132.50 percent of non-performing assets, compared to 125.21 percent and 99.97 percent on December 31, 2005, respectively.

During the quarter the board of directors increased the quarterly cash dividend to $0.085 per share compared to $0.0825 per share in the third quarter of 2006 and to the cash dividend of $0.075 per share in the fourth quarter of 2005. The fourth quarter dividend payment represents an increase of 13.33 percent over the dividend payment in fourth quarter 2005. Total dividends for 2006 were $0.325 per share compared to $0.285 for 2005, or an increase of 14.04 percent.

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, Centerville, 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.