FITZGERALD, GA—Colony Bankcorp Inc. (NASDAQ:CBAN), a state commercial bank, announced today the renewal of its employment agreement with R. Dallis Copeland, Jr., who will continue serving as the President of both the holding company and its subsidiary, Colony Bank. The new contract, effective today, replaces the previous agreement dated September 13, 2022.
Under the new two-year term, Mr. Copeland will receive an annual base salary of $365,000, with the potential for additional bonuses tied to performance goals set by the Compensation Committee. The agreement also includes standard benefits for similarly positioned employees at the Bank, as well as eligibility for paid time off (PTO) and holidays in line with the Bank’s policies.
The agreement outlines conditions for severance payments in the event of a change in control of the Company. If Mr. Copeland's employment is terminated without cause or disability, or if he resigns for good reason within twelve months following a change in control, he will be entitled to a lump sum equal to one and a half times his current base salary plus the previous year's bonus.
This payment is contingent upon adherence to certain restrictive covenants and the execution of a general release of claims against the Company.
If termination occurs before a change in control or more than twelve months after, the severance equals one year's base salary, paid over twelve months, subject to similar conditions. The employment agreement also imposes non-competition and non-solicitation covenants during and for a minimum of twelve months post-employment.
In other recent news, Colony Bank reported growth and improved credit quality in its Q2 earnings call. The bank saw an increase in operating net income by nearly $200,000 and overall profitability, despite a slight drop in net interest income due to higher funding costs. The mortgage banking group had its most profitable quarter, and the small business and specialty lending division also performed strongly.
However, Colony Bank noted a decrease in total deposits and a sluggish performance in the Marine/RV Lending sector. The bank also reported a securities loss but remains optimistic about future growth, especially in commercial real estate, anticipating an annual growth rate of 8% to 12% in the long term.
These are just a few of the recent developments at Colony Bank. The bank has repurchased 20,000 shares for $238,000 and expects margin expansion in the second half of the year and into 2025. Despite some challenges, Colony Bank is positioning itself for a stronger second half of 2024 and beyond.
InvestingPro Insights
As Colony Bankcorp Inc. (NASDAQ:CBAN) reinforces its executive leadership with the renewed employment agreement for President R. Dallis Copeland, Jr., the company's financial metrics offer additional insights. According to InvestingPro data, Colony Bankcorp has a market capitalization of approximately $270.53 million and is trading at a price-to-earnings (P/E) ratio of 12.17, which is noteworthy considering that the company is trading at a high P/E ratio relative to near-term earnings growth, according to an InvestingPro Tip. This could indicate investor confidence in the bank's future profitability, as analysts predict the company will be profitable this year. Moreover, the company has demonstrated strong performance with a high return over the last year, and it is currently trading near its 52-week high, with a price that is 97.15% of the peak.
InvestingPro Tips also highlight that Colony Bankcorp has raised its dividend for 7 consecutive years, which may appeal to income-focused investors, especially with a current dividend yield of 3.01%. This commitment to returning value to shareholders is complemented by a robust return on assets of 0.73% over the last twelve months as of Q2 2024. For those interested in further in-depth analysis, InvestingPro offers additional tips on Colony Bankcorp, which can be found at https://www.investing.com/pro/CBAN.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.