Colony Bankcorp, Inc. Announces First Quarter Results

Market Wire, April, 2007

Colony Bankcorp, Inc. (NASDAQ: CBAN) today reported quarterly net income of $2,474,000 for the first quarter of 2007, up 7.15 percent from first quarter 2006 net income of $2,309,000. Diluted earnings per share for the first quarter of 2007 were $0.34 per share compared to $0.32 per share for the same year ago period or an increase of 6.25 percent. Earnings per share were negatively impacted $0.02 per share during first quarter 2007 when the Company refinanced $9 million in trust preferred securities and had to expense unamortized loan placement fees on the original issuance. Though the Company incurred after-tax expense of approximately $121 thousand on the unamortized loan placement fees, the Company will realize annual interest savings on the thirty year instrument of approximately $115 thousand (after-tax). This will allow the Company to recoup the unamortized loan placement fees expense in twelve months while also realizing the annual interest savings over the remaining twenty-nine year term. Annualized return on assets for the quarter was 0.82 percent and return on equity was 12.76 percent, compared to 0.83 percent and 13.39 percent for the same year ago period, respectively. Due to the inverted yield curve and sluggish first quarter loan activity, net interest margin was 3.70 percent for first quarter 2007 compared to 3.80 percent for first quarter 2006.

Total assets increased 4.04 percent to $1,191,407,000 on March 31, 2007 from $1,145,186,000 a year ago. Net loans increased 4.09 percent to $917,984,000 on March 31, 2007 from $881,897,000 a year ago. Total deposits increased 5.13 percent to $1,024,632,000 on March 31, 2007 from $974,672,000 a year ago. Shareholders' equity on March 31, 2007 was $78,553,000 and equaled 6.59 percent of total assets.

The company's focus on credit quality resulted in significant improvement during first quarter 2007 as the ratio of non-performing assets to loans and other real estate on March 31, 2007 was 0.86 percent as compared to 1.22 percent on March 31, 2006 and 0.96 percent on December 31, 2006. Total nonperforming assets decreased $1,009,000 to $8,039,000 on March 31, 2007 from $9,048,000 on December 31, 2006, or a decrease of 11.15 percent. The first quarter 2007 provision for loan losses were $914,000 compared to $922,000 for the same period in 2006. Net charge-offs for the quarter were 0.08 percent of average loans, down from 0.11 percent for the first quarter of 2006. The loan loss reserve of $12,170,000 on March 31, 2007 was 1.31 percent of total loans, which provided coverage of 187.92 percent of non-performing loans and 151.39 percent of non-performing assets, compared to 122.08 percent and 98.31 percent on March 31, 2006, respectively.

During the quarter the board of directors increased the quarterly cash dividend to $0.0875 per share compared to $0.085 per share in the fourth quarter of 2006 and to the cash dividend of $0.0775 per share in the first quarter of 2006. The first quarter dividend payment represents an increase of 12.90 percent over the dividend payment in first quarter 2006.

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.