Colony Bankcorp Inc. in Fitzgerald, Ga., said its fourth-quarter earnings fell 71% from a year earlier, to $752,000, missing analysts' expectations by a wide margin.
Earnings per share declined 72%, to 10 cents, Colony said Wednesday. The average estimate of analysts had called for earnings of 33 cents, Thomson Financial said.
The $1.2 billion-asset Colony, which operates seven banks, attributed the drop to problems in the residential real estate and land development market.
Colony said it added $3.2 million to its loan-loss reserve in the fourth quarter, after nonperforming assets jumped 81%, to $16.3 million, or 1.73% of total loans. At yearend its reserve was $15.5 million, or 1.64% of total loans.
"Although we are disappointed to report these credit issues, I am pleased with the progress we have made during the quarter in assessing the current credit risk, refocusing management's activities, and maintaining adequate reserve levels," Al D. Ross, Colony Bankcorp's chief executive officer, said in a press release.
Colony's stock remained at $14.82 a share Wednesday with no trading. It had hit a 52-week low of $12.51 last week.
