What changed in COLONY BANKCORP INC's 10-K — 2022 vs 2023
vs
Paragraph-level year-over-year comparison of COLONY BANKCORP INC's 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.
+577 added−542 removedSource: 10-K (2024-03-14) vs 10-K (2023-03-16)
Top changes in COLONY BANKCORP INC's 2023 10-K
577 paragraphs added · 542 removed · 354 edited across 1 sections
- Item 1A. Risk Factors+577 / −542 · 354 edited
Item 1A. Risk Factors
Risk Factors — what could go wrong, per management
354 edited+223 added−188 removed359 unchanged
Item 1A. Risk Factors
Risk Factors — what could go wrong, per management
354 edited+223 added−188 removed359 unchanged
2022 filing
2023 filing
Biggest changeFactors used in assessing the ability to hold these securities to maturity were future liquidity needs and sources of funding. 83 Information pertaining to available-for-sale securities with gross unrealized losses at December 31, 2022 and December 31, 2021 aggregated by investment category and length of time that securities have been in a continuous unrealized loss position are summarized as follows: Less Than 12 Months 12 Months or More Total (dollars in thousands) Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses December 31, 2022 U.S. treasury securities $ 1,377 $ (17) $ 245 $ (5) $ 1,622 $ (22) U.S. agency 3,221 (257) 1,364 (193) 4,585 (450) Asset backed securities 10,780 (319) 19,208 (1,161) 29,988 (1,480) State, county and municipal securities 29,284 (3,629) 75,472 (17,734) 104,756 (21,363) Corporate debt securities 17,258 (1,463) 30,651 (3,857) 47,909 (5,320) Mortgage-backed securities 122,031 (7,890) 119,409 (21,301) 241,440 (29,191) Total debt securities $ 183,951 $ (13,575) $ 246,349 $ (44,251) $ 430,300 $ (57,826) December 31, 2021 U.S. treasury securities $ 87,302 $ (1,087) $ — $ — $ 87,302 $ (1,087) U.S. agency 10,969 (140) — — 10,969 (140) State, county and municipal securities 180,551 (3,131) 5,970 (225) 186,521 $ (3,356) Corporate debt securities 31,977 (265) — — 31,977 (265) Mortgage-backed securities 377,413 (6,421) 21,129 (640) 398,542 (7,061) Total debt securities $ 688,212 $ (11,044) $ 27,099 $ (865) $ 715,311 $ (11,909) Information pertaining to held-to-maturity securities with gross unrealized losses at December 31, 2022 aggregated by investment category and length of time that individual securities have been in a continuous loss position is summarized as follows: Less Than 12 Months 12 Months or Greater Total (dollars in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses December 31, 2022 U.S.
Biggest changeInformation pertaining to available-for-sale securities with gross unrealized losses at December 31, 2023 and December 31, 2022 aggregated by investment category and length of time that securities have been in a continuous unrealized loss position are summarized as follows: Less Than 12 Months 12 Months or More Total (dollars in thousands) Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses December 31, 2023 U.S. treasury securities $ — $ — $ 498 $ (2) $ 498 $ (2) U.S. agency securities — — 4,139 (361) 4,139 (361) Asset backed securities 6,196 (75) 17,424 (330) 23,620 (405) State, county and municipal securities 1,033 (138) 107,443 (15,356) 108,476 (15,494) Corporate debt securities 1,446 (105) 45,044 (6,355) 46,490 (6,460) Mortgage-backed securities 5,921 (49) 212,876 (25,199) 218,797 (25,248) Total debt securities $ 14,596 $ (367) $ 387,424 $ (47,603) $ 402,020 $ (47,970) December 31, 2022 U.S. treasury securities $ 1,377 $ (17) $ 245 $ (5) $ 1,622 $ (22) U.S. agency securities 3,221 (257) 1,364 (193) 4,585 (450) Asset backed securities 10,780 (319) 19,208 (1,161) 29,988 $ (1,480) State, county and municipal securities 29,284 (3,629) 75,472 (17,734) 104,756 $ (21,363) Corporate debt securities 17,258 (1,463) 30,651 (3,857) 47,909 (5,320) Mortgage-backed securities 122,031 (7,890) 119,409 (21,301) 241,440 (29,191) Total debt securities $ 183,951 $ (13,575) $ 246,349 $ (44,251) $ 430,300 $ (57,826) 80 Information pertaining to held-to-maturity securities with gross unrealized losses at December 31, 2023 and December 31, 2022 aggregated by investment category and length of time that individual securities have been in a continuous loss position is summarized as follows: Less Than 12 Months 12 Months or Greater Total (dollars in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses December 31, 2023 U.S. treasury securities $ — $ — $ 90,094 $ (3,212) $ 90,094 $ (3,212) U.S. agency securities — — 14,858 (1,424) 14,858 (1,424) State, county & municipal securities 1,461 (78) 103,500 (13,781) 104,961 (13,859) Mortgage-backed securities — — 177,442 (25,316) 177,442 (25,316) $ 1,461 $ (78) $ 385,894 $ (43,733) $ 387,355 $ (43,811) December 31, 2022 U.S. treasury securities $ — $ — $ 87,466 $ (4,149) $ 87,466 $ (4,149) U.S. agency securities — — 14,571 (1,838) 14,571 (1,838) State, county & municipal securities 9,858 (1,392) 105,734 (18,126) 115,592 (19,518) Mortgage-backed securities 13,580 (729) 178,995 (28,392) 192,575 (29,121) $ 23,438 $ (2,121) $ 386,766 $ (52,505) $ 410,204 $ (54,626) Management evaluates available for sale securities in an unrealized loss position at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation to determine if credit-related impairment exists.
Strong competition and changing banking environment may limit growth and profitability. Competition in the banking and financial services industry is intense. We compete with commercial banks, savings institutions, mortgage brokerage firms, credit unions, finance companies, mutual funds, insurance companies, brokerage and investment 19 banking firms operating locally and elsewhere, and non-traditional financial institutions, including fintech companies, non-depository financial services providers.
Strong competition and changing banking environment may limit growth and profitability. Competition in the banking and financial services industry is intense. We compete with commercial banks, savings institutions, mortgage brokerage firms, credit unions, finance companies, mutual funds, insurance companies, brokerage and investment 19 banking firms operating locally and elsewhere, non-traditional financial institutions, including fintech companies, and non-depository financial services providers.
Exhibit Index 2.1 Agreement and Plan of Merger by and between Colony Bankcorp, Inc. and SouthCrest Financial Group, Inc., dated as of April 22, 2021 -filed as Exhibit 2.1 to the Registrant’s Current Report on Form 8-K (File No. 0-12436), filed with the Commission on April 22, 2021 and incorporated herein by reference. 3.1 Articles of Incorporation, as amended -filed as Exhibit99.1 to the Registrant's Quarterly Report on Form 10-Q (File No. 0-12436), filed with the Commission on August 4, 2014 and incorporated herein by reference. 3.2 Articles of Amendment to Articles of Incorporation, as amended -filed as Exhibit 3.2 to the Registrant's Quarterly Report on Form 10-Q (File No. 0-12436), filed with the Commission on August 12, 2022 and incorporated herein by reference. 3.3 Amended and Restated Bylaws -filed as Exhibit 3.1 to the Registrant’s Current Report on Form 8-K (File No. 0-12436), filed with the Commission on September 18, 2020 and incorporated herein by reference. 4.1 Description of Securities 4.2 Form of 5.25% Fixed to Floating Rate Subordinated Note due 2032 -filed as Exhibit 4.1 to the Registrant’s Current Report on Form 8-K (File No. 0-12436), filed with the Commission on May 23, 2022 and incorporated herein by reference. 10.1 Deferred Compensation Plan and Sample Director Agreement† -filed as Exhibit 10(a) to the Registrant's Registration Statement on Form 10 (File No. 0-18486), filed with the Commission on April 25, 1990 and incorporated herein by reference. 10.2 Profit-Sharing Plan Dated January 1, 1979† -filed as Exhibit 10(b) to the Registrant's Registration Statement on Form 10 (File No. 0-18486), filed with the Commission on April 25, 1990 and incorporated herein by reference. 10.3 1999 Restricted Stock Grant Plan and Restricted Stock Grant Agreement† -filed as Exhibit 10.C to the Registrant's Annual Report on Form 10-K405 (File 000-12436), filed with the Commission on March 30, 2001 and incorporated herein by reference. 10.4 2004 Restricted Stock Grant Plan and Restricted Stock Grant Agreement† -filed as Exhibit C to the Registrant's Definitive Proxy Statement for Annual Meeting of Stockholders held on April 27, 2004, filed with the Commission on March 3, 2004 (File No. 000-12436) and incorporated herein by reference. 10.5 Restricted Stock Award Between T.
Exhibit Index 2.1 Agreement and Plan of Merger by and between Colony Bankcorp, Inc. and SouthCrest Financial Group, Inc., dated as of April 22, 2021 -filed as Exhibit 2.1 to the Registrant’s Current Report on Form 8-K (File No. 0-12436), filed with the Commission on April 22, 2021 and incorporated herein by reference. 3.1 Articles of Incorporation, as amended -filed as Exhibit99.1 to the Registrant's Quarterly Report on Form 10-Q (File No. 0-12436), filed with the Commission on August 4, 2014 and incorporated herein by reference. 3.2 Articles of Amendment to Articles of Incorporation, as amended -filed as Exhibit 3.2 to the Registrant's Quarterly Report on Form 10-Q (File No. 0-12436), filed with the Commission on August 12, 2022 and incorporated herein by reference. 3.3 Amended and Restated Bylaws -filed as Exhibit 3.1 to the Registrant’s Current Report on Form 8-K (File No. 0-12436), filed with the Commission on September 18, 2020 and incorporated herein by reference. 4.1 Description of Securities 4.2 Form of 5.25% Fixed to Floating Rate Subordinated Note due 2032 -filed as Exhibit 4.1 to the Registrant’s Current Report on Form 8-K (File No. 0-12436), filed with the Commission on May 23, 2022 and incorporated herein by reference. 10.1 Deferred Compensation Plan and Sample Director Agreement† -filed as Exhibit 10(a) to the Registrant's Registration Statement on Form 10 (File No. 0-18486), filed with the Commission on April 25, 1990 and incorporated herein by reference. 10.2 Profit-Sharing Plan Dated January 1, 1979† -filed as Exhibit 10(b) to the Registrant's Registration Statement on Form 10 (File No. 0-18486), filed with the Commission on April 25, 1990 and incorporated herein by reference. 117 10.3 1999 Restricted Stock Grant Plan and Restricted Stock Grant Agreement† -filed as Exhibit 10.C to the Registrant's Annual Report on Form 10-K405 (File 000-12436), filed with the Commission on March 30, 2001 and incorporated herein by reference. 10.4 2004 Restricted Stock Grant Plan and Restricted Stock Grant Agreement† -filed as Exhibit C to the Registrant's Definitive Proxy Statement for Annual Meeting of Stockholders held on April 27, 2004, filed with the Commission on March 3, 2004 (File No. 000-12436) and incorporated herein by reference. 10.5 Restricted Stock Award Between T.
These actions include the power to enjoin “unsafe or unsound” practices, to require affirmative action to correct any conditions resulting from any violation or practice, to issue an administrative order that can be judicially enforced, to direct an increase in our capital, to restrict our growth, to assess civil money penalties, to fine or remove officers and directors and, if it is concluded that such conditions cannot be corrected or there is an imminent risk of loss to depositors, to terminate our deposit insurance and place us into receivership or conservatorship.
These actions include the power to enjoin “unsafe or unsound” practices, to require affirmative action to correct any conditions resulting from any violation or practice, to issue an administrative order that can be judicially enforced, to direct an increase in our capital, to restrict our growth, to assess civil money penalties, to fine or remove officers and directors and, if it is concluded that such conditions cannot be corrected or there is an imminent risk of loss to 29 depositors, to terminate our deposit insurance and place us into receivership or conservatorship.
Because the risk rating of the loans is dependent on some subjective information and subject to changes in the borrower's credit risk profile, evolving local market conditions and other factors, it can be difficult for us to predict the effects that those factors 22 will have on the classifications assigned to the loan portfolio, and thus difficult to anticipate the velocity or volume of the migration of loans through the classification process and effect on the level of the allowance for loan losses.
Because the risk rating of the loans is dependent on some subjective information and subject to changes in the borrower's credit risk profile, evolving local market conditions and other factors, it can be difficult for us to predict the effects that those factors will have on the classifications assigned to the loan portfolio, and thus difficult to anticipate the velocity or volume of the migration of loans through the classification process and effect on the level of the allowance for credit losses.
In some cases, we could be required to apply a new or revised standard retrospectively, or apply an existing standard differently, also retrospectively, in each case resulting in our needing to revise or restate prior period financial statements. Failure to maintain effective internal controls over financial reporting could have a material adverse effect on our business and stock price.
In some cases, we could be required to apply a new or revised standard retrospectively, or apply an existing standard differently, also retrospectively, in each case resulting in our needing to revise or restate prior period financial statements. 27 Failure to maintain effective internal controls over financial reporting could have a material adverse effect on our business and stock price.
Although we have employment agreements with certain of our executive officers, there is no guarantee that these officers and other key personnel will remain employed with the Company. 25 We are a community bank and our ability to maintain our reputation is critical to the success of our business and the failure to do so may materially adversely affect our performance.
Although we have employment agreements with certain of our executive officers, there is no guarantee that these officers and other key personnel will remain employed with the Company. We are a community bank and our ability to maintain our reputation is critical to the success of our business and the failure to do so may materially adversely affect our performance.
Any increases in the provision or allowance for loan losses will result in a decrease in our net income and, potentially, capital, and may have a material adverse effect on our financial condition or results of operations. We may not be able to meet our unfunded credit commitments, or adequately reserve for losses associated with our unfunded credit commitments .
Any increases in the provision or allowance for credit losses will result in a decrease in our net income and, potentially, capital, and may have a material adverse effect on our financial condition or results of operations. We may not be able to meet our unfunded credit commitments, or adequately reserve for losses associated with our unfunded credit commitments .
New regulations, increased regulatory reviews may be introduced and may increase costs and make it more difficult to operate a residential mortgage origination business. 24 Nonperforming assets take significant time to resolve and adversely affect our results of operations and financial condition, and could result in further losses in the future.
New regulations and increased regulatory reviews may be introduced and may increase costs and make it more difficult to operate a residential mortgage origination business. Nonperforming assets take significant time to resolve and adversely affect our results of operations and financial condition, and could result in further losses in the future.
Because our decision to incur debt and issue securities in future offerings will depend on market conditions and other factors beyond our control, we cannot predict or estimate the amount, timing or nature of our future offerings and debt financings. Further, market conditions could require us to accept less favorable terms for the issuance of our securities in the future.
Because our decision to incur debt and issue securities in future offerings will depend on market conditions and other factors beyond our control, we cannot predict or estimate the amount, timing or nature of our future offerings and debt financings. 28 Further, market conditions could require us to accept less favorable terms for the issuance of our securities in the future.
Heath Fountain and Colony Bankcorp, Inc.† -filed as Exhibit 10.1 to the Registrant’s Registration Statement on Form S-8 (File No. 333-226984), filed with the Commission on August 23, 2018 and incorporated herein by reference. 118 10.6 Employment Agreement, Dated July 30, 2021, Between T.
Heath Fountain and Colony Bankcorp, Inc.† -filed as Exhibit 10.1 to the Registrant’s Registration Statement on Form S-8 (File No. 333-226984), filed with the Commission on August 23, 2018 and incorporated herein by reference. 10.6 Employment Agreement, Dated July 30, 2021, Between T.
Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. 101 The Company’s exposure to credit loss is represented by the contractual amount of these commitments. The Company follows the same credit policies in making commitments as it does for on-balance sheet instruments.
Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The Company’s exposure to credit loss is represented by the contractual amount of these commitments. The Company follows the same credit policies in making commitments as it does for on-balance sheet instruments.
Investment in our common stock is inherently risky for the reasons described herein, and is subject to the same market forces that affect the price of common stock in any company. As a result, if you acquire our common stock, you could lose some or all of your investment. Our stock price may be volatile.
Investment in our common stock is inherently risky for the reasons described herein, and is subject to the same market forces that affect the price of common stock in any company. As a result, if you acquire our common stock, you could lose some or all of your investment. 30 Our stock price may be volatile.
Management believes these non-GAAP financial measures also enhance investors' ability to compare period-to-period financial results and allow investors and company management to view our operating results excluding the impact of items that are not reflective of the underlying operating performance. Tax-equivalent net interest income, net interest margin and net interest spread .
Management believes these non-GAAP financial measures also enhance investors' ability to compare period-to-period financial results and allow investors and company management to view our operating results excluding the impact of items that are not reflective of the underlying operating performance. 36 Tax-equivalent net interest income, net interest margin and net interest spread .
Loans - The fair value of fixed rate loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings. For variable rate loans, the carrying amount is a reasonable estimate of fair value. Loans are classified as Level 3.
Loans, net - The fair value of fixed rate loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings. For variable rate loans, the carrying amount is a reasonable estimate of fair value. Loans are classified as Level 3.
Our business or results of operations may be adversely affected by these and other negative effects of natural or man-made disasters. 28 We may need to rely on the financial markets to provide needed capital. Our common stock is listed and traded on the NASDAQ Global Market.
Our business or results of operations may be adversely affected by these and other negative effects of natural or man-made disasters. We may need to rely on the financial markets to provide needed capital. Our common stock is listed and traded on the NASDAQ Global Market.
The determination of the appropriate level of the provision and allowance for loan losses inherently involves a high degree of subjectivity and requires us to make significant estimates of current credit risks suing existing qualitative and quantitative information and future trends, all of which may undergo material changes.
The determination of the appropriate level of the provision and allowance for credit losses inherently involves a high degree of subjectivity and requires us to make significant estimates of current credit risks suing existing qualitative and quantitative information and future trends, all of which may undergo material changes.
Assumptions for repricing are expressed as a beta relative to the change in the prime rate. For instance, a 25% beta would correspond to a deposit rate that would increase 0.25% for every 1% increase in the prime rate. Projected betas for interest 60 bearing non-maturity deposit repricing are a key component of determining the Company's interest rate risk position.
Assumptions for repricing are expressed as a beta relative to the change in the prime rate. For instance, a 25% beta would correspond to a deposit rate that would increase 0.25% for every 1% increase in the prime rate. Projected betas for interest bearing non-maturity deposit repricing are a key component of determining the Company's interest rate risk position.
Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the Audit Committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved especially challenging, subjective, or complex judgements.
Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the Audit Committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved especially challenging, subjective, or complex judgements.
Description Date Amount Added Points Maturity 5-Year Call Option (dollars in thousands) Colony Bankcorp Statutory Trust III June 16, 2004 $ 4,640 2.68% June 14, 2034 June 17, 2009 Colony Bankcorp Capital Trust I April 13, 2006 5,155 1.50% April 13, 2036 April 13, 2011 Colony Bankcorp Capital Trust II March 12, 2007 9,279 1.65% March 12, 2037 March 12, 2012 Colony Bankcorp Capital Trust III September 14, 2007 5,155 1.40% September 14, 2037 September 14, 2012 The Trust Preferred Securities are recorded as subordinated debentures on the consolidated balance sheets, and subject to certain limitations, qualify as Tier 1 Capital for regulatory capital purposes.
Description Date Amount Added Points Maturity 5-Year Call Option (dollars in thousands) Colony Bankcorp Statutory Trust III June 16, 2004 $ 4,640 2.68% June 17, 2034 June 17, 2009 Colony Bankcorp Capital Trust I April 13, 2006 5,155 1.50% June 30, 2036 April 13, 2011 Colony Bankcorp Capital Trust II March 12, 2007 9,279 1.65% March 30, 2037 March 12, 2012 Colony Bankcorp Capital Trust III September 14, 2007 5,155 1.40% October 30, 2037 September 14, 2012 The Trust Preferred Securities are recorded as subordinated debentures on the consolidated balance sheets and, subject to certain limitations, qualify as Tier 1 Capital for regulatory capital purposes.
The Company seeks to ensure its funding needs are met by maintaining a level of liquid funds through asset/liability management. Asset liquidity is provided by liquid assets which are readily marketable or pledgeable or which will mature in the near future.
The Company seeks to ensure its funding needs are met by maintaining a level of liquid funds through asset/liability management. 56 Asset liquidity is provided by liquid assets which are readily marketable or pledgeable or which will mature in the near future.
We believe that our banking offices are in good condition and are suitable and adequate to our needs. Item 3 Legal Proceedings The Company and its subsidiary may become parties to various legal proceedings arising from the normal course of business.
We believe that our banking offices are in good condition and are suitable and adequate to our needs. 33 Item 3 Legal Proceedings The Company and its subsidiary may become parties to various legal proceedings arising from the normal course of business.
The Company is a party to credit-related financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, standby letters of credit and commercial letters of credit.
The Company is a party to credit-related financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments 100 to extend credit, standby letters of credit and commercial letters of credit.
In addition, due to the declining economic conditions, our customers may not be able to repay their loans according to the original terms, and the collateral securing the payment of those loans may be insufficient to pay any remaining loan balance.
In addition, due 22 to the declining economic conditions, our customers may not be able to repay their loans according to the original terms, and the collateral securing the payment of those loans may be insufficient to pay any remaining loan balance.
These occurrences could have a material adverse effect on our net interest income or our results of operations. The implementation of other new lines of business or new products and services may subject us to additional risk.
These occurrences could have a material adverse effect on our net interest income or our results of operations. 24 The implementation of other new lines of business or new products and services may subject us to additional risk.
As a result, financial institutions continue to be affected by uncertainty in the real estate market, the credit markets, and the national financial market generally. We retain direct exposure to the commercial and residential real estate markets, and we are affected by events in these markets.
As a result, financial institutions continue to be affected by uncertainty, including in the real estate market, the credit markets, and the national financial market generally. We retain direct exposure to the commercial and residential real estate markets, and we are affected by events in these markets.
As the 76 majority of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate at the commencement date in determining the present value of lease payments. The incremental borrowing rate is based on the term of the lease.
As the majority of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate at the commencement date in determining the present value of lease payments. The incremental borrowing rate is based on the term of the lease.
Estimates that are particularly susceptible to significant change include the valuation of loan acquisition transactions, as well as the determination of the allowance for loan losses and income taxes and, therefore, are critical accounting policies.
Estimates that are particularly susceptible to significant change include the valuation of loan acquisition transactions, as well as the determination of the allowance for credit losses and income taxes and, therefore, are critical accounting policies.
As cyber threats continue to evolve, we may be required to expend significant additional resources to continue to modify 26 or enhance our protective measures or to investigate and remediate any information security vulnerabilities.
As cyber threats continue to evolve, we may be required to expend significant additional resources to continue to modify or enhance our protective measures or to investigate and remediate any information security vulnerabilities.
The level of interest rates and the volume and mix of interest-earning assets and interest-bearing liabilities impact net interest income and net interest margin. 41 The Company’s loan portfolio is significantly affected by changes in the prime interest rate.
The level of interest rates and the volume and mix of interest-earning assets and interest-bearing liabilities impact net interest income and net interest margin. The Company’s loan portfolio is significantly affected by changes in the prime interest rate.
The following disclosures should not be considered a surrogate of the liquidation value of the Company, but rather a good-faith estimate of the increase or decrease in value of financial instruments held by the Company since purchase, origination or issuance. 103 Cash and short-term investments - For cash, due from banks, bank-owned deposits and federal funds sold, the carrying amount is a reasonable estimate of fair value and is classified Level 1.
The following disclosures should not be considered a surrogate of the liquidation value of the Company, but rather a good-faith estimate of the increase or decrease in value of financial instruments held by the Company since purchase, origination or issuance. 102 Cash and short-term investments - For cash, due from banks, bank-owned deposits and federal funds sold, the carrying amount is a reasonable estimate of fair value and is classified Level 1.
The maximum potential amount of future payments the Company could be required to make is represented by the contractual amount of the commitment. If the commitment is funded, the Company would be entitled to seek recovery from the customer.
The maximum potential amount of future payments the Company could be required to make is represented by the contractual amount of the commitment. If the 54 commitment is funded, the Company would be entitled to seek recovery from the customer.
The risk ranges from loans with no significant weaknesses in repayment capacity and collateral protection to acceptable loans with one or more risk factors considered to be more than average.
The risk ranges from loans with no significant weaknesses in repayment capacity and collateral protection to 83 acceptable loans with one or more risk factors considered to be more than average.
The global credit and financial markets have from time to time experienced extreme volatility and disruptions, including severely diminished liquidity and credit availability, declines in consumer confidence, declines in economic growth, increases in unemployment rates, high rates of inflation, the U.S. government’s decisions regarding its debt ceiling and the possibility that the U.S. could default on its debt obligations, fluctuations in debt and equity capital markets, increased delinquencies on mortgage, commercial and consumer loans, residential and commercial real estate price declines, and lower home sales and commercial activity, changes in securities markets and uncertainty about economic stability.
The global credit and financial markets have from time to time experienced extreme volatility and disruptions, including as a result of severely diminished liquidity and credit availability, declines in consumer confidence, declines in economic growth, increases in unemployment rates, high rates of inflation, the U.S. government’s decisions regarding its debt ceiling and the possibility that the U.S. could default on its debt obligations, fluctuations in debt and equity capital markets, increased delinquencies on mortgage, commercial and consumer loans, residential and commercial real estate price declines, and lower home sales and commercial activity, changes in securities markets and uncertainty about economic stability.
We make various assumptions and judgments about the collectability of our loan and lease portfolio and utilize these assumptions and judgments when determining the provision and allowance for loan losses.
We make various assumptions and judgments about the collectability of our loan and lease portfolio and utilize these assumptions and judgments when determining the provision and allowance for credit losses.
Amounts provided for income tax expense are based on income reported for financial statement purposes and do not necessarily represent amounts currently payable under tax laws.
Amounts provided for income tax expense are based on income reported for financial statement purposes and do not necessarily represent amounts currently payable under 39 tax laws.
These loans are also included in into the “pass” classification. 86 • Grade 6 - This grade includes “special mention” loans on management’s watch list and is intended to be used on a temporary basis for pass grade loans where risk-modifying action is intended in the short-term. • Grades 7 and 8 - These grades includes “substandard” loans in accordance with regulatory guidelines.
These loans are also included in the “pass” classification. • Grade 6 - This grade includes “special mention” loans on management’s watch list and is intended to be used on a temporary basis for pass grade loans where risk-modifying action is intended in the short-term. • Grades 7 and 8 - These grades includes “substandard” loans in accordance with regulatory guidelines.
The Company may be required to pledge additional qualifying collateral in order to utilize the full amount of the remaining credit line. At December 31, 2022 and 2021, the Company also has available federal funds lines of credit with various financial institutions totaling $64.5 million, of which there were none outstanding at December 31, 2022 and 2021.
The Company may be required to pledge additional qualifying collateral in order to utilize the full amount of the remaining credit line. At December 31, 2023 and 2022, the Company also has available federal funds lines of credit with various financial institutions totaling $64.5 million, of which there were none outstanding at December 31, 2023 and 2022.
Management believes, as of December 31, 2022, the Company meets all capital adequacy requirements to which it is subject under the regulatory framework for prompt corrective action. In the opinion of management, there are no conditions or events since prior notification of capital adequacy from the regulators that have changed the institution’s category.
Management believes, as of December 31, 2023, the Company meets all capital adequacy requirements to which it is subject under the regulatory framework for prompt corrective action. In the opinion of management, there are no conditions or events since prior notification of capital adequacy from the regulators that have changed the institution’s category.
During the year ended December 31, 2022, there were no changes in the Company’s internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Rules 13a-15 or 15d-15 of the Exchange Act that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.
During the year ended December 31, 2023, there were no changes in the Company’s internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Rules 13a-15 or 15d-15 of the Exchange Act that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.
Report of Independent Registered Accounting Firm Consolidated Balance Sheets - December 31, 202 2 and 202 1 Consolidated Statements of Income – Years ended December 31, 202 2 and 202 1 Consolidated Statements of Comprehensive Income (Loss) – Years ended December 31, 202 2 and 202 1 Consolidated Statements of Changes in |Stockholders’ Equity– Years ended December 31, 202 2 and 202 1 Consolidated Statements of Cash Flows –Years ended December 31, 202 2 and 202 1 Notes to Consolidated Financial Statements (2) Financial Statements Schedules: All schedules are omitted as the required information is inapplicable or the information is presented in the financial statements or the related notes.
Report of Independent Registered Accounting Firm Consolidated Balance Sheets - December 31, 202 3 and 202 2 Consolidated Statements of Income – Years ended December 31, 202 3 and 202 2 Consolidated Statements of Comprehensive Income (Loss) – Years ended December 31, 202 3 and 202 2 Consolidated Statements of Changes in |Stockholders’ Equity– Years ended December 31, 202 3 and 202 2 Consolidated Statements of Cash Flows –Years ended December 31, 202 3 and 202 2 Notes to Consolidated Financial Statements (2) Financial Statements Schedules: All schedules are omitted as the required information is inapplicable or the information is presented in the financial statements or the related notes.
Peer comparisons, industry comparisons, and regulatory guidelines are also used in the determination of the general valuation allowance. Loans identified as losses by management, internal loan review, and/or bank examiners are charged off. Additional information about the Company’s allowance for loan losses is provided in the Notes to the Consolidated Financial Statements for Allowance for Loan Losses.
Peer comparisons, industry comparisons, and regulatory guidelines are also used in the determination of the valuation allowance. Loans identified as losses by management, internal loan review, and/or bank examiners are charged off. Additional information about the Company’s allowance for credit losses is provided in the Notes to the Consolidated Financial Statements for Allowance for Credit Losses.
Basis for Opinion These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits.
Basis for Opinion These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits.
Securities are classified as available for sale when they might be sold before maturity. Securities available for sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income. The Company had both held to maturity and available for sale securities in the investment portfolio at December 31, 2022.
Securities are classified as available for sale when they might be sold before maturity. Securities available for sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income. The Company had both held to maturity and available for sale securities in the investment portfolio at December 31, 2023.
The subsidiary pays its proportional share of federal income taxes to the Company based on its taxable income. The Company’s federal and state income tax returns for tax years 2022, 2021, 2020 and 2019 are subject to examination by the Internal Revenue Service (IRS) and the Georgia Department of Revenue, generally for three years after filing.
The subsidiary pays its proportional share of federal income taxes to the Company based on its taxable income. The Company’s federal and state income tax returns for tax years 2023, 2022, 2021 and 2020 are subject to examination by the Internal Revenue Service (IRS) and the Georgia Department of Revenue, generally for three years after filing.
See “Item 1 – Business – Supervision and Regulation – Regulation of the Company – Payment of Dividends.” Issuer Purchase of Equity Securities On October 20, 2022, the Board of Directors of the Company authorized a stock buyback program, under which the Company may repurchase up to $12 million of its outstanding common stock.
See “Item 1 – Business – Supervision and Regulation – Regulation of the Company – Payment of Dividends.” Issuer Purchase of Equity Securities On October 20, 2022, the Board of Directors of the Company authorized a stock buyback program, under which the Company could repurchase up to $12 million of its outstanding common stock.
Leases with an initial term of 12 months or less are not recorded on the balance sheet. For these short-term leases, lease expense is recognized on a straight-line basis over the lease term. At December 31, 2022, the Company had no leases classified as finance leases.
Leases with an initial term of 12 months or less are not recorded on the balance sheet. For these short-term leases, lease expense is recognized on a straight-line basis over the lease term. At December 31, 2023, the Company had no leases classified as finance leases.
Potential common shares consist of restricted shares for the years ended December 31, 2022 and 2021, and are determined using the treasury stock method. The Company has determined that its outstanding non-vested stock awards are participating securities, and all dividends on these awards are paid similar to other dividends.
Potential common shares consist of restricted shares for the years ended December 31, 2023 and 2022, and are determined using the treasury stock method. The Company has determined that its outstanding non-vested stock awards are participating securities, and all dividends on these awards are paid similar to other dividends.
Other borrowings is classified as Level 2 due to their expected maturities. 104 Disclosures of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis, are required in the financial statements.
Other borrowings is classified as Level 2 due to their expected maturities. 103 Disclosures of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis, are required in the financial statements.
Our evaluation included a review of the documentation of controls, evaluations of the design of the internal control system and tests of the effectiveness of internal controls. Based on our assessment, management concluded that as of December 31, 2022, Colony Bankcorp, Inc.’s internal control over financial reporting is effective based on those criteria.
Our evaluation included a review of the documentation of controls, evaluations of the design of the internal control system and tests of the effectiveness of internal controls. Based on our assessment, management concluded that as of December 31, 2023, Colony Bankcorp, Inc.’s internal control over financial reporting is effective based on those criteria.
The effectiveness of the Company’s internal control over financial reporting as of December 31, 2022 has been audited by Mauldin and Jenkins, LLC, an independent registered public accounting firm, as stated in their report which appears herein. /s/ T. Heath Fountain T.
The effectiveness of the Company’s internal control over financial reporting as of December 31, 2023 has been audited by Mauldin and Jenkins, LLC, an independent registered public accounting firm, as stated in their report which appears herein. /s/ T. Heath Fountain T.
In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2022 and 2021, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.
In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.
FINANCIAL INFORMATION OF COLONY BANKCORP, INC. (PARENT ONLY) The parent company’s balance sheets as of December 31, 2022 and 2021 and the related statements of operations and comprehensive income (loss) and cash flows for each of the years in the two-year period then ended are as follows: COLONY BANKCORP, INC.
FINANCIAL INFORMATION OF COLONY BANKCORP, INC. (PARENT ONLY) The parent company’s balance sheets as of December 31, 2023 and 2022 and the related statements of operations and comprehensive income (loss) and cash flows for each of the years in the two-year period then ended are as follows: COLONY BANKCORP, INC.
Interest rates are highly sensitive to many factors including, without limitation: the rate of inflation; economic conditions; federal monetary policies; and stability of domestic and foreign markets. Interest rates increased significantly in 2022 as the Federal Reserve attempted to slow economic growth and counteract rising inflation.
Interest rates are highly sensitive to many factors including, without limitation: the rate of inflation; economic conditions; federal monetary policies; and stability of domestic and foreign markets. Interest rates increased significantly in 2023 as the Federal Reserve attempted to slow economic growth and counteract rising inflation.
The Small Business Specialty Lending Division derives its revenues from origination, sales and servicing of SBA and USDA government guaranteed loans. 78 The Banking, Retail Mortgage and Small Business Specialty Lending Divisions are managed as separate business units because of the different products and services they provide.
The Small Business Specialty Lending Division derives its revenues from origination, sales and servicing of SBA and USDA government guaranteed loans. 76 The Banking, Retail Mortgage and Small Business Specialty Lending Divisions are managed as separate business units because of the different products and services they provide.
The employees will have the right to vote all shares subject to such grant and receive all dividends with respect to such shares, whether or not the shares have vested. The following table presents the outstanding balance for restricted stock awards as of December 31, 2022 and 2021.
The employees will have the right to vote all shares subject to such grant and receive all dividends with respect to such shares, whether or not the shares have vested. The following table presents the outstanding balance for restricted stock awards as of December 31, 2023 and 2022.
Management’s assessment of the effectiveness of our internal control over financial reporting as of December 31, 2022 is included in Part II, Item 8 of this Report under the heading “Management’s Report on Internal Control Over Financial Reporting.” Our independent auditors have issued an audit report on management’s assessment of internal controls over financial reporting.
Management’s assessment of the effectiveness of our internal control over financial reporting as of December 31, 2023 is included in Part II, Item 8 of this Report under the heading “Management’s Report on Internal Control Over Financial Reporting.” Our independent auditors have issued an audit report on management’s assessment of internal controls over financial reporting.
The following table presents the maturity distribution of the Company’s loans at December 31, 2022. The table also presents the portion of loans that have fixed interest rates or variable interest rates that fluctuate over the life of the loans in accordance with changes in an interest rate index such as the prime rate.
The following table presents the maturity distribution of the Company’s loans at December 31, 2023. The table also presents the portion of loans that have fixed interest rates or variable interest rates that fluctuate over the life of the loans in accordance with changes in an interest rate index such as the prime rate.
As of December 31, 2022, the interim final Basel III rules (Basel III) require the Company to also maintain minimum amounts and ratios of common equity Tier 1 capital to risk weighted assets. These amounts and ratios as defined in regulations are presented hereafter.
As of December 31, 2023, the interim final Basel III rules (Basel III) require the Company to also maintain minimum amounts and ratios of common equity Tier 1 capital to risk weighted assets. These amounts and ratios as defined in regulations are presented hereafter.
Deterioration in economic conditions affecting borrowers, new information regarding existing loans, identification of additional problem loans and other factors, both within and outside of our control, may require an increase in the amount reserved in the allowance for loan losses.
Deterioration in economic conditions affecting borrowers, new information regarding existing loans, identification of additional problem loans and other factors, both within and outside of our control, may require an increase in the amount reserved in the allowance for credit losses.
Management has assessed the effectiveness of the internal control over financial reporting as of December 31, 2022. In making this assessment, we used the criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Management has assessed the effectiveness of the internal control over financial reporting as of December 31, 2023. In making this assessment, we used the criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
The unemployment rates are reviewed on a quarterly basis as part of the allowance for loan loss determination. Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due.
The unemployment rates are reviewed on a quarterly basis as part of the allowance for credit loss determination. Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due.
Assets Measured at Fair Value on a Recurring and Nonrecurring Basis - The following table presents the recorded amount of the Company’s assets measured at fair value on a recurring and nonrecurring basis as of December 31, 2022 and 2021, aggregated by the level in the fair value hierarchy within which those measurements fall.
Assets Measured at Fair Value on a Recurring and Nonrecurring Basis - The following table presents the recorded amount of the Company’s assets measured at fair value on a recurring and nonrecurring basis as of December 31, 2023 and 2022, aggregated by the level in the fair value hierarchy within which those measurements fall.
The Company’s policies generally require that standby letters of credit arrangements contain security and debt covenants similar to those contained in loan agreements. Standby letters of credit outstanding at December 31, 2022 are included in the preceding table.
The Company’s policies generally require that standby letters of credit arrangements contain security and debt covenants similar to those contained in loan agreements. Standby letters of credit outstanding at December 31, 2023 are included in the preceding table.
Sanctions imposed by the United States and other countries in response to such conflict could further adversely impact the financial markets and the global economy, and any economic countermeasures by the affected countries or others could exacerbate market and economic instability.
Sanctions imposed by the United States and other countries in response to such conflicts could further adversely impact the financial markets and the global economy, and any economic countermeasures by the affected countries or others could exacerbate market and economic instability.
In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2022, based on the criteria established in Internal Control – Integrated Framework (2013) issued by COSO.
In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2023, based on the criteria established in Internal Control – Integrated Framework (2013) issued by COSO.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of Colony Bankcorp, Inc. and Subsidiaries (the “Company”) as of December 31, 2022 and 2021 and the related consolidated statements of income, comprehensive income (loss), changes in stockholders’ equity, and cash flows for the years then ended, and the related notes to the consolidated financial statements (collectively, the financial statements) and our report dated March 15, 2023 expressed an unqualified opinion.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of Colony Bankcorp, Inc. and Subsidiaries (the “Company”) as of December 31, 2023 and 2022 and the related consolidated statements of income, comprehensive income (loss), changes in stockholders’ equity, and cash flows for the years then ended, and the related notes to the consolidated financial statements (collectively, the financial statements) and our report dated March 14, 2024 expressed an unqualified opinion.
The proceeds from these offerings were used to fund certain acquisitions, pay off holding company debt and inject capital into the Bank subsidiary. The Trust Preferred Securities pay interest quarterly. 99 NOTE 12.
The proceeds from these offerings were used to fund certain acquisitions, pay off holding company debt and inject capital into the Bank subsidiary. The Trust Preferred Securities pay interest quarterly. 98 NOTE 12.
Other investments - The fair value of other bank stock approximates carrying value and is classified as Level 2. Fair values for investment funds are based on quoted market prices where available and classified as Level 1.
Other investments, at cost - The fair value of other bank stock approximates carrying value and is classified as Level 2. Fair values for investment funds are based on quoted market prices where available and classified as Level 1.
December 31, 2022 (dollars in thousands) Fair Value Valuation Techniques Unobservable Inputs Range (Weighted Avg) Available for sale securities $ 15,596 Discounted Cash Flow Discount Rate or Yield N/A* Other investments $ 790 Discounted Cash Flow Discount Rate or Yield N/A* * The Company relies on a third-party pricing service to value its securities.
December 31, 2023 (dollars in thousands) Fair Value Valuation Techniques Unobservable Inputs Range (Weighted Avg) Available for sale securities $ 10,814 Discounted Cash Flow Discount Rate or Yield N/A* December 31, 2022 (dollars in thousands) Fair Value Valuation Techniques Unobservable Inputs Range (Weighted Avg) Available for sale securities $ 15,596 Discounted Cash Flow Discount Rate or Yield N/A* Other investments $ 790 Discounted Cash Flow Discount Rate or Yield N/A* * The Company relies on a third-party pricing service to value its securities.
Item 16. Form 10-K Summary None. 119 SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, Colony Bankcorp, Inc. has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized: COLONY BANKCORP, INC. /s/ T. Heath Fountain T.
Form 10-K Summary None. SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, Colony Bankcorp, Inc. has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized: COLONY BANKCORP, INC. /s/ T. Heath Fountain T.
Overview The following discussion and analysis present the more significant factors affecting the Company’s financial condition as of December 31, 2022 and 2021 and results of operations for each of the two year-periods ended December 31, 2022.
Overview The following discussion and analysis present the more significant factors affecting the Company’s financial condition as of December 31, 2023 and 2022 and results of operations for each of the two year-periods ended December 31, 2023.
In the event of a participant’s death before age 65, payments are made to the participant’s named beneficiary over a specified number of years, beginning on the first day of the month following the death of the participant. Liabilities accrued under the plans totaled $1.1 million and $1.2 million as of December 31, 2022 and 2021, respectively.
In the event of a participant’s death before age 65, payments are made to the participant’s named beneficiary over a specified number of years, beginning on the first day of the month following the death of the participant. Liabilities accrued under the plans totaled $1.1 million and $1.1 million as of December 31, 2023 and 2022, respectively.
The amortized cost and fair value of investment securities as of December 31, 2022, by contractual maturity, are shown hereafter. Expected maturities may differ from contractual maturities for certain investments because issuers may have the right 84 to call or prepay obligations with or without call or prepayment penalties.
The amortized cost and fair value of investment securities as of December 31, 2023, by contractual maturity, are shown hereafter. Expected maturities may differ from contractual maturities for certain investments because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.
In addition, a large portion of the Company’s foreclosed assets are also located in these same geographic markets, making the recovery of the 48 carrying amount of foreclosed assets susceptible to changes in market conditions. Management continues to monitor these concentrations and has considered these concentrations in its allowance for loan loss analysis.
In addition, a large portion of the Company’s foreclosed assets are also located in these same geographic markets, making the recovery of the carrying amount of foreclosed assets susceptible to changes in market conditions. Management continues to monitor these concentrations and has considered these concentrations in its allowance for credit loss analysis.
This category includes borrowers with well-defined weaknesses that jeopardize the payment of the debt in accordance with the agreed terms. Loans considered to be impaired are assigned grade 8, and these loans often have assigned loss allocations as part of the allowance for loan and lease losses.
This category includes borrowers with well-defined weaknesses that jeopardize the payment of the debt in accordance with the agreed terms. Loans considered to be impaired are assigned grade 8, and these loans often have assigned loss allocations as part of the allowance for credit losses.
Our provision and allowance for loan losses may not cover actual losses, and we may be required to materially increase our allowance, which may adversely affect our capital, financial condition and results of operations.
Our provision and allowance for credit losses may not cover actual losses, and we may be required to materially increase our allowance, which may adversely affect our capital, financial condition and results of operations.
Tier 2 capital consists of certain convertible, subordinated and other qualifying debt and the allowance for loan losses up to 1.25% of risk-weighted assets. The Company's Tier 2 capital consists of subordinated notes and the allowance for loan losses.
Tier 2 capital consists of certain convertible, subordinated and other qualifying debt and the allowance for credit losses up to 1.25% of risk-weighted assets. The Company's Tier 2 capital consists of subordinated notes and the allowance for credit losses.
Item 8 Financial Statements and Supplemental Data 61 MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING The management of Colony Bankcorp is responsible for establishing and maintaining adequate internal control over financial reporting.
Item 8 Financial Statements and Supplemental Data 59 MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING The management of Colony Bankcorp is responsible for establishing and maintaining adequate internal control over financial reporting.
The differences relate primarily to depreciable assets (use of different depreciation methods for financial statement and income tax purposes) and allowance for loan losses (use of the allowance method for financial statement purposes and the direct write-off method for tax purposes).
The differences relate primarily to depreciable assets (use of different depreciation methods for financial statement and income tax purposes) and allowance for credit losses (use of the allowance method for financial statement purposes and the direct write-off method for tax purposes).
… 685 more changes not shown on this page.