----

----

| DECEMBER 31                                                                                                  |   |
|--------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                         |   |
|                                                                                                         |   |
| ASSETS                                                                                                       |   |
|                                                                                                         |   |   |   |   |   |   |
|                                                                                                         |   | 2009 |   |   | 2008 |   |
|                                                                                                         |   |   |   |   |   |   |
| Cash and Cash Equivalents                                                                                    |   |   |   |   |   |   |
| Cash and Due from Banks                                                                                      |   | $ | 25,995,486 |   |   | $ | 29,427,430 |   |
| Federal Funds Sold                                                                                           |   |   | 16,433,256 |   |   |   | 30,941 |   |
|                                                                                                         |   |   |   |   |   |   |   |   |
|                                                                                                         |   |   | 42,428,742 |   |   |   | 29,458,371 |   |
|                                                                                                         |   |   |   |   |   |   |   |   |
| Interest-Bearing Deposits                                                                                    |   |   | 6,478,801 |   |   |   | 146,987 |   |
|                                                                                                         |   |   |   |   |   |   |   |   |
| Investment Securities                                                                                        |   |   |   |   |   |   |   |   |
| Available for Sale, at Fair Value                                                                            |   |   | 267,246,673 |   |   |   | 207,644,579 |   |
| Held to Maturity, at Cost (Fair Value of $56,999 and $63,254 as of December 31, 2009 and 2008, Respectively) |   |   | 53,906 |   |   |   | 59,886 |   |
|                                                                                                         |   |   |   |   |   |   |   |   |
|                                                                                                         |   |   | 267,300,579 |   |   |   | 207,704,465 |   |
|                                                                                                         |   |   |   |   |   |   |   |   |
| Federal Home Loan Bank Stock, at Cost                                                                        |   |   | 6,345,400 |   |   |   | 6,272,400 |   |
|                                                                                                         |   |   |   |   |   |   |   |   |
| Loans                                                                                                        |   |   | 931,391,626 |   |   |   | 961,036,525 |   |
| Allowance for Loan Losses                                                                                    |   |   | (31,400,641 | ) |   |   | (17,015,883 | ) |
| Unearned Interest and Fees                                                                                   |   |   | (139,597 | ) |   |   | (179,257 | ) |
|                                                                                                         |   |   |   |   |   |   |   |   |
|                                                                                                         |   |   | 899,851,388 |   |   |   | 943,841,385 |   |
|                                                                                                         |   |   |   |   |   |   |   |   |
| Premises and Equipment                                                                                       |   |   | 28,826,350 |   |   |   | 29,671,881 |   |
|                                                                                                         |   |   |   |   |   |   |   |   |
| Other Real Estate (Net of Allowance of $467,408 and $0 in 2009 and 2008, Respectively)                       |   |   | 19,705,044 |   |   |   | 12,811,819 |   |
|                                                                                                         |   |   |   |   |   |   |   |   |
| Goodwill                                                                                                     |   |   | - |   |   |   | 2,412,338 |   |
|                                                                                                         |   |   |   |   |   |   |   |   |
| Other Intangible Assets                                                                                      |   |   | 330,756 |   |   |   | 366,505 |   |
|                                                                                                         |   |   |   |   |   |   |   |   |
| Other Assets                                                                                                 |   |   | 35,822,274 |   |   |   | 20,095,784 |   |
|                                                                                                         |   |   |   |   |   |   |   |   |
| Total Assets                                                                                                 |   | $ | 1,307,089,334 |   |   | $ | 1,252,781,935 |   |

----

| DECEMBER 31                                                                                                                                    |   |
|------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                           |   |
|                                                                                                                                           |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                     |   |
|                                                                                                                                           |   |   |   |   |   |   |
|                                                                                                                                           |   | 2009 |   |   | 2008 |   |
|                                                                                                                                           |   |   |   |   |   |   |
| Deposits                                                                                                                                       |   |   |   |   |   |   |
| Noninterest-Bearing                                                                                                                            |   | $ | 84,238,839 |   |   | $ | 77,496,891 |   |
| Interest-Bearing                                                                                                                               |   |   | 973,347,642 |   |   |   | 929,494,577 |   |
|                                                                                                                                           |   |   |   |   |   |   |   |   |
|                                                                                                                                           |   |   | 1,057,586,481 |   |   |   | 1,006,991,468 |   |
|                                                                                                                                           |   |   |   |   |   |   |   |   |
| Borrowed Money                                                                                                                                 |   |   |   |   |   |   |   |   |
| Federal Funds Purchased                                                                                                                        |   |   | - |   |   |   | 2,274,000 |   |
| Securities Sold Under Agreements to Repurchase                                                                                                 |   |   | 40,000,000 |   |   |   | 40,000,000 |   |
| Subordinated Debentures                                                                                                                        |   |   | 24,229,000 |   |   |   | 24,229,000 |   |
| Other Borrowed Money                                                                                                                           |   |   | 91,000,000 |   |   |   | 91,000,000 |   |
|                                                                                                                                           |   |   |   |   |   |   |   |   |
|                                                                                                                                           |   |   | 155,229,000 |   |   |   | 157,503,000 |   |
|                                                                                                                                           |   |   |   |   |   |   |   |   |
| Other Liabilities                                                                                                                              |   |   | 4,999,229 |   |   |   | 5,072,312 |   |
|                                                                                                                                           |   |   |   |   |   |   |   |   |
|                                                                                                                                           |   |   |   |   |   |   |   |   |
| Commitments and Contingencies                                                                                                                  |   |   |   |   |   |   |   |   |
|                                                                                                                                           |   |   |   |   |   |   |   |   |
|                                                                                                                                           |   |   |   |   |   |   |   |   |
| Stockholders’ Equity                                                                                                                     |   |   |   |   |   |   |   |   |
| Preferred Stock, No Par Value; Authorized 10,000,000 Shares, Issued 28,000 Shares                                                              |   |   | 27,356,964 |   |   |   | - |   |
| Common Stock, Par Value $1; Authorized 20,000,000 Shares, Issued 7,229,163 and 7,212,313 Shares as of December 31, 2009 and 2008, Respectively |   |   | 7,229,163 |   |   |   | 7,212,313 |   |
| Paid-In Capital                                                                                                                                |   |   | 25,392,913 |   |   |   | 24,535,683 |   |
| Retained Earnings                                                                                                                              |   |   | 29,553,941 |   |   |   | 51,302,025 |   |
| Restricted Stock – Unearned Compensation                                                                                                 |   |   | (158,548 | ) |   |   | (210,993 | ) |
| Accumulated Other Comprehensive Income, Net of Tax                                                                                             |   |   | (99,809 | ) |   |   | 376,127 |   |
|                                                                                                                                           |   |   |   |   |   |   |   |   |
|                                                                                                                                           |   |   | 89,274,624 |   |   |   | 83,215,155 |   |
|                                                                                                                                           |   |   |   |   |   |   |   |   |
|                                                                                                                                           |   |   |   |   |   |   |   |   |
| Total Liabilities and Stockholders’ Equity                                                                                               |   | $ | 1,307,089,334 |   |   | $ | 1,252,781,935 |   |

----

| FOR THE YEARS ENDED DECEMBER 31             |   |
|------------------------------------------------------------|--------|
|                                                       |   |   |   |   |   |   |   |   |   |
|                                                       |   | 2009 |   |   | 2008 |   |   | 2007 |   |
| Interest Income                                            |   |   |   |   |   |   |   |   |   |
| Loans, Including Fees                                      |   | $ | 57,620,911 |   |   | $ | 66,732,488 |   |   | $ | 80,973,666 |   |
| Federal Funds Sold                                         |   |   | 24,438 |   |   |   | 273,476 |   |   |   | 1,477,985 |   |
| Deposits with Other Banks                                  |   |   | 553 |   |   |   | 27,452 |   |   |   | 142,785 |   |
| Investment Securities                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| U. S. Government Agencies                                  |   |   | 7,626,856 |   |   |   | 7,140,902 |   |   |   | 6,437,743 |   |
| State, County and Municipal                                |   |   | 258,545 |   |   |   | 410,298 |   |   |   | 549,031 |   |
| Corporate Obligations                                      |   |   | 296,273 |   |   |   | 414,319 |   |   |   | 269,283 |   |
| Dividends on Other Investments                             |   |   | 19,846 |   |   |   | 298,264 |   |   |   | 308,840 |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                       |   |   | 65,847,422 |   |   |   | 75,297,199 |   |   |   | 90,159,333 |   |
| Interest Expense                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                                   |   |   | 21,642,734 |   |   |   | 32,801,362 |   |   |   | 42,730,760 |   |
| Federal Funds Purchased                                    |   |   | 876,484 |   |   |   | 513,961 |   |   |   | 59,145 |   |
| Borrowed Money                                             |   |   | 3,761,924 |   |   |   | 4,607,347 |   |   |   | 4,910,945 |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                       |   |   | 26,281,142 |   |   |   | 37,922,670 |   |   |   | 47,700,850 |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Interest Income                                        |   |   | 39,566,280 |   |   |   | 37,374,529 |   |   |   | 42,458,483 |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Provision for Loan Losses                                  |   |   | 43,445,000 |   |   |   | 12,937,750 |   |   |   | 5,930,756 |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Interest Income (Loss) After Provision for Loan Losses |   |   | (3,878,720 | ) |   |   | 24,436,779 |   |   |   | 36,527,727 |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest Income                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Service Charges on Deposits                                |   |   | 4,198,019 |   |   |   | 4,699,616 |   |   |   | 4,771,239 |   |
| Other Service Charges, Commissions and Fees                |   |   | 986,392 |   |   |   | 981,124 |   |   |   | 921,502 |   |
| Mortgage Fee Income                                        |   |   | 447,989 |   |   |   | 609,044 |   |   |   | 966,897 |   |
| Securities Gains                                           |   |   | 2,625,867 |   |   |   | 1,195,314 |   |   |   | 183,656 |   |
| Other                                                      |   |   | 1,285,920 |   |   |   | 1,520,092 |   |   |   | 973,687 |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                       |   |   | 9,544,187 |   |   |   | 9,005,190 |   |   |   | 7,816,981 |   |
| Noninterest Expenses                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Salaries and Employee Benefits                             |   |   | 14,483,306 |   |   |   | 16,238,080 |   |   |   | 17,866,304 |   |
| Occupancy and Equipment                                    |   |   | 4,287,006 |   |   |   | 4,190,845 |   |   |   | 4,039,327 |   |
| Directors’ Fees                                      |   |   | 502,575 |   |   |   | 578,315 |   |   |   | 632,547 |   |
| Legal and Professional Fees                                |   |   | 1,362,536 |   |   |   | 1,379,696 |   |   |   | 1,144,229 |   |
| Foreclosed Property                                        |   |   | 2,270,792 |   |   |   | 382,312 |   |   |   | 149,343 |   |
| FDIC Assessment                                            |   |   | 2,662,042 |   |   |   | 603,093 |   |   |   | 189,635 |   |
| Goodwill Impairment                                        |   |   | 2,412,338 |   |   |   | - |   |   |   | - |   |
| Other                                                      |   |   | 6,863,627 |   |   |   | 7,483,574 |   |   |   | 7,557,904 |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                       |   |   | 34,844,222 |   |   |   | 30,855,915 |   |   |   | 31,579,289 |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Income (Loss) Before Income Taxes                          |   |   | (29,178,755 | ) |   |   | 2,586,054 |   |   |   | 12,765,419 |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Income Taxes (Benefits)                                    |   |   | (9,994,881 | ) |   |   | 557,230 |   |   |   | 4,218,463 |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Income (Loss)                                          |   |   | (19,183,874 | ) |   |   | 2,028,824 |   |   |   | 8,546,956 |   |
| Preferred Stock Dividends                                  |   |   | 1,365,000 |   |   |   | - |   |   |   | - |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Income (Loss) Available to Common Stockholders         |   | $ | (20,548,874 | ) |   | $ | 2,028,824 |   |   | $ | 8,546,956 |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Income (Loss) Per Share of Common Stock                |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                      |   | $ | (2.85 | ) |   | $ | 0.28 |   |   | $ | 1.19 |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted                                                    |   | $ | (2.85 | ) |   | $ | 0.28 |   |   | $ | 1.19 |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash Dividends Declared Per Share of Common Stock          |   | $ | 0.146 |   |   | $ | 0.39 |   |   | $ | 0.365 |   |
|                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted Average Shares Outstanding                        |   |   | 7,213,430 |   |   |   | 7,199,121 |   |   |   | 7,188,696 |   |

----

|                                                                                                                         |   |
|------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                         |   |   |   |   |   |   |   |   |   |
|                                                                                                                         |   | 2009 |   |   | 2008 |   |   | 2007 |   |
|                                                                                                                         |   |   |   |   |   |   |   |   |   |
| Net Income (Loss)                                                                                                            |   | $ | (19,183,874 | ) |   | $ | 2,028,824 |   |   | $ | 8,546,956 |   |
|                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Other Comprehensive Income, Net of Tax                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Gains on Securities Arising During the Year                                                                                  |   |   | 1,257,136 |   |   |   | 893,158 |   |   |   | 1,367,910 |   |
| Reclassification Adjustment                                                                                                  |   |   | (1,733,072 | ) |   |   | (788,907 | ) |   |   | (121,213 | ) |
|                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Change in Net Unrealized Gains (Losses) on Securities Available for Sale, Net of Reclassification Adjustment and Tax Effects |   |   | (475,936 | ) |   |   | 104,251 |   |   |   | 1,246,697 |   |
|                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive Income (Loss)                                                                                                  |   | $ | (19,659,810 | ) |   | $ | 2,133,075 |   |   | $ | 9,793,653 |   |
|                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |

----

| COLONY BANKCORP, INC. AND SUBSIDIARYCONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITYFOR THE YEARS ENDED DECEMBER 31, 2009, 2008 AND 2007 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                     |   | PreferredStock |   |   |  SharesIssued |   |   |  CommonStock |   |   |  Paid-InCapital |   |   |  RetainedEarnings |   |   | RestrictedStock -UnearnedCompensation |   |   | Accumulated Other Comprehensive Income (Loss) |   |   |   Total |   |
|                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2006                                                                                                                               |   | $ | - |   |   |   | 7,189,937 |   |   | $ | 7,189,937 |   |   | $ | 24,257,392 |   |   | $ | 46,416,571 |   |   | $ | (277,918 | ) |   | $ | (974,821 | ) |   | $ | 76,611,161 |   |
|                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cumulative Effect of Change in Accounting for Uncertainty in Income Taxes                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (247,312 | ) |   |   |   |   |   |   |   |   |   |   | (247,312 | ) |
| Issuance of Restricted Stock                                                                                                                             |   |   |   |   |   |   | 16,175 |   |   |   | 16,175 |   |   |   | 270,122 |   |   |   |   |   |   |   | (286,297 | ) |   |   |   |   |   |   | - |   |
| Forfeiture of Restricted Stock                                                                                                                           |   |   |   |   |   |   | (5,199 | ) |   |   | (5,199 | ) |   |   | (110,514 | ) |   |   |   |   |   |   | 115,713 |   |   |   |   |   |   |   | - |   |
| Tax Benefit of Restricted Stock                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 3,497 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 3,497 |   |
| Amortization of Unearned Compensation                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 211,500 |   |   |   |   |   |   |   | 211,500 |   |
| Change in Net Unrealized Gains (Losses) on Securities Available for Sale, Net of Reclassification Adjustment and Tax Effects                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 1,246,697 |   |   |   | 1,246,697 |   |
| Dividends on Common Stock                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (2,629,381 | ) |   |   |   |   |   |   |   |   |   |   | (2,629,381 | ) |
| Net Income                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 8,546,956 |   |   |   |   |   |   |   |   |   |   |   | 8,546,956 |   |
|                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2007                                                                                                                               |   |   | - |   |   |   | 7,200,913 |   |   |   | 7,200,913 |   |   |   | 24,420,497 |   |   |   | 52,086,834 |   |   |   | (237,002 | ) |   |   | 271,876 |   |   |   | 83,743,118 |   |
|                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance of Restricted Stock                                                                                                                             |   |   |   |   |   |   | 15,500 |   |   |   | 15,500 |   |   |   | 220,100 |   |   |   |   |   |   |   | (235,600 | ) |   |   |   |   |   |   | - |   |
| Forfeiture of Restricted Stock                                                                                                                           |   |   |   |   |   |   | (4,100 | ) |   |   | (4,100 | ) |   |   | (69,070 | ) |   |   |   |   |   |   | 73,170 |   |   |   |   |   |   |   | - |   |
| Tax Loss on Restricted Stock                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (35,844 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (35,844 | ) |
| Amortization of Unearned Compensation                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 188,439 |   |   |   |   |   |   |   | 188,439 |   |
| Change in Net Unrealized Gains (Losses) on Securities Available for Sale, Net of Reclassification Adjustment and Tax Effects                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 104,251 |   |   |   | 104,251 |   |
| Dividends on Common Stock                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (2,813,633 | ) |   |   |   |   |   |   |   |   |   |   | (2,813,633 | ) |
| Net Income                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 2,028,824 |   |   |   |   |   |   |   |   |   |   |   | 2,028,824 |   |
|                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2008                                                                                                                               |   |   | - |   |   |   | 7,212,313 |   |   |   | 7,212,313 |   |   |   | 24,535,683 |   |   |   | 51,302,025 |   |   |   | (210,993 | ) |   |   | 376,127 |   |   |   | 83,215,155 |   |
|                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Issuance of Preferred Stock                                                                                                                              |   |   | 27,215,218 |   |   |   |   |   |   |   |   |   |   |   | 784,782 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 28,000,000 |   |
| Issuance of Restricted Stock                                                                                                                             |   |   |   |   |   |   | 18,850 |   |   |   | 18,850 |   |   |   | 132,421 |   |   |   |   |   |   |   | (151,271 | ) |   |   |   |   |   |   | - |   |
| Forfeiture of Restricted Stock                                                                                                                           |   |   |   |   |   |   | (2,000 | ) |   |   | (2,000 | ) |   |   | (14,050 | ) |   |   |   |   |   |   | 16,050 |   |   |   |   |   |   |   | - |   |
| Tax Loss on Restricted Stock                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (45,923 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (45,923 | ) |
| Amortization of Unearned Compensation                                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 187,666 |   |   |   |   |   |   |   | 187,666 |   |
| Change in Net Unrealized Gains (Losses) on Securities Available for Sale, Net of Reclassification Adjustment and Tax Effects                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (475,936 | ) |   |   | (475,936 | ) |
| Accretion of Fair Value of Warrant                                                                                                                       |   |   | 141,746 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (141,746 | ) |   |   |   |   |   |   |   |   |   |   | - |   |
| Dividends on Preferred Shares                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (1,365,000 | ) |   |   |   |   |   |   |   |   |   |   | (1,365,000 | ) |
| Dividends on Common Stock                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (1,057,464 | ) |   |   |   |   |   |   |   |   |   |   | (1,057,464 | ) |
| Net Income (Loss) Available to Common Stockholders                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (19,183,874 | ) |   |   |   |   |   |   |   |   |   |   | (19,183,874 | ) |
|                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2009                                                                                                                               |   | $ | 27,356,964 |   |   |   | 7,229,163 |   |   | $ | 7,229,163 |   |   | $ | 25,392,913 |   |   | $ | 29,553,941 |   |   | $ | (158,548 | ) |   | $ | (99,809 | ) |   | $ | 89,274,624 |   |

----

| COLONY BANKCORP, INC. AND SUBSIDIARYCONSOLIDATED STATEMENTS OF CASH FLOWSFOR THE YEARS ENDED DECEMBER 31 |   |
|----------------------------------------------------------------------------------------------------------|--------|
|                                                                                                     |   |
|                                                                                                     |   | 2009 |   |   | 2008 |   |   | 2007 |   |
| Cash Flows from Operating Activities                                                                     |   |   |   |   |   |   |   |   |   |
| Net Income (Loss)                                                                                        |   | $ | (19,183,874 | ) |   | $ | 2,028,824 |   |   | $ | 8,546,956 |   |
| Adjustments to Reconcile Net Income (Loss) to Net                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash Provided from Operating Activities                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation                                                                                             |   |   | 2,092,845 |   |   |   | 2,028,158 |   |   |   | 1,875,779 |   |
| Amortization and Accretion                                                                               |   |   | 3,807,011 |   |   |   | 777,051 |   |   |   | 529,805 |   |
| Goodwill Impairment                                                                                      |   |   | 2,412,338 |   |   |   | - |   |   |   | - |   |
| Provision for Loan Losses                                                                                |   |   | 43,445,000 |   |   |   | 12,937,750 |   |   |   | 5,930,756 |   |
| Deferred Income Taxes                                                                                    |   |   | (5,869,055 | ) |   |   | (250,215 | ) |   |   | (1,233,259 | ) |
| Securities Gains                                                                                         |   |   | (2,625,867 | ) |   |   | (1,195,314 | ) |   |   | (183,656 | ) |
| Gain on Sale of Equipment                                                                                |   |   | (82,503 | ) |   |   | (857 | ) |   |   | (5,813 | ) |
| Loss on Sale of Other Real Estate and Repossessions                                                      |   |   | 163,642 |   |   |   | 59,623 |   |   |   | 53,851 |   |
| Unrealized Loss on Other Real Estate                                                                     |   |   | 467,408 |   |   |   | - |   |   |   | - |   |
| Increase in Cash Surrender Value of Life Insurance                                                       |   |   | (184,905 | ) |   |   | (235,305 | ) |   |   | (15,427 | ) |
| Change In                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest Receivable                                                                                      |   |   | 699,018 |   |   |   | 2,875,146 |   |   |   | 362,311 |   |
| Prepaid Expenses                                                                                         |   |   | (5,785,826 | ) |   |   | 18,698 |   |   |   | 144,931 |   |
| Interest Payable                                                                                         |   |   | (1,256,460 | ) |   |   | (816,819 | ) |   |   | 291,225 |   |
| Accrued Expenses and Accounts Payable                                                                    |   |   | 315,879 |   |   |   | (815,214 | ) |   |   | (109,441 | ) |
| Other                                                                                                    |   |   | (3,360,614 | ) |   |   | (121,645 | ) |   |   | (1,018,977 | ) |
|                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                     |   |   | 15,054,037 |   |   |   | 17,289,881 |   |   |   | 15,169,041 |   |
| Cash Flows from Investing Activities                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-Bearing Deposits in Other Banks                                                                 |   |   | (6,331,814 | ) |   |   | 1,319,703 |   |   |   | 1,608,791 |   |
| Purchase of Investment Securities                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Available for Sale                                                                                       |   |   | (488,257,181 | ) |   |   | (157,485,718 | ) |   |   | (60,521,076 | ) |
| Proceeds from Sale of Investment Securities                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Available for Sale                                                                                       |   |   | 368,575,701 |   |   |   | 65,298,695 |   |   |   | 16,984,665 |   |
| Proceeds from Maturities, Calls and Paydowns of Investment Securities                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Available for Sale                                                                                       |   |   | 58,599,391 |   |   |   | 52,666,161 |   |   |   | 27,603,088 |   |
| Held to Maturity                                                                                         |   |   | 12,688 |   |   |   | 13,573 |   |   |   | 12,054 |   |
| Proceeds from Sale of Premises and Equipment                                                             |   |   | 125,512 |   |   |   | 29,888 |   |   |   | 267,120 |   |
| Net Loans to Customers                                                                                   |   |   | (18,973,081 | ) |   |   | (42,435,526 | ) |   |   | (8,333,042 | ) |
| Purchase of Premises and Equipment                                                                       |   |   | (1,290,324 | ) |   |   | (3,920,230 | ) |   |   | (2,492,797 | ) |
| Proceeds from Sale of Other Real Estate and Repossessions                                                |   |   | 12,158,095 |   |   |   | 3,392,500 |   |   |   | 2,318,696 |   |
| Federal Home Loan Bank Stock                                                                             |   |   | (73,000 | ) |   |   | (739,700 | ) |   |   | (445,900 | ) |
| Investment in Capital Trusts                                                                             |   |   | - |   |   |   | - |   |   |   | (434,000 | ) |
| Liquidation of Statutory Trusts                                                                          |   |   | - |   |   |   | - |   |   |   | 434,000 |   |
| Other Investments                                                                                        |   |   | - |   |   |   | - |   |   |   | (420,560 | ) |
|                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                     |   |   | (75,454,013 | ) |   |   | (81,860,654 | ) |   |   | (23,418,961 | ) |
| Cash Flows from Financing Activities                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-Bearing Customer Deposits                                                                       |   |   | 43,853,063 |   |   |   | (2,995,624 | ) |   |   | (32,620,017 | ) |
| Noninterest-Bearing Customer Deposits                                                                    |   |   | 6,741,949 |   |   |   | (8,614,892 | ) |   |   | 8,776,104 |   |
| Proceeds from Other Borrowed Money                                                                       |   |   | 19,000,000 |   |   |   | 122,400,000 |   |   |   | 41,100,000 |   |
| Principal Payments on Other Borrowed Money                                                               |   |   | (19,000,000 | ) |   |   | (65,000,000 | ) |   |   | (29,000,000 | ) |
| Dividends Paid on Preferred Stock                                                                        |   |   | (1,190,000 | ) |   |   | - |   |   |   | - |   |
| Dividends Paid on Common Stock                                                                           |   |   | (1,760,665 | ) |   |   | (2,794,520 | ) |   |   | (2,556,438 | ) |
| Proceeds from Issuance of Subordinated Debentures                                                        |   |   | - |   |   |   | - |   |   |   | 14,434,000 |   |
| Principal Payments of Subordinated Debentures                                                            |   |   | - |   |   |   | - |   |   |   | (14,434,000 | ) |
| Federal Funds Purchased                                                                                  |   |   | (2,274,000 | ) |   |   | 928,000 |   |   |   | 276,000 |   |
| Proceeds Allocated to Issuance of Preferred Stock                                                        |   |   | 27,215,218 |   |   |   | - |   |   |   | - |   |
| Proceeds Allocated to Warrants Issued                                                                    |   |   | 784,782 |   |   |   | - |   |   |   | - |   |
|                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                     |   |   | 73,370,347 |   |   |   | 43,922,964 |   |   |   | (14,024,351 | ) |
|                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Increase (Decrease) in Cash and Cash Equivalents                                                     |   |   | 12,970,371 |   |   |   | (20,647,809 | ) |   |   | (22,274,271 | ) |
|                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and Cash Equivalents, Beginning                                                                     |   |   | 29,458,371 |   |   |   | 50,106,180 |   |   |   | 72,380,451 |   |
|                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and Cash Equivalents, Ending                                                                        |   | $ | 42,428,742 |   |   | $ | 29,458,371 |   |   | $ | 50,106,180 |   |

----

----

----

----

| Description             |   | Life in Years |   | Method                        |
|-------------------------|--------|---------------|--------|-------------------------------|
|                    |   |          |   |                          |
| Banking Premises        |   | 15-40         |   | Straight-Line and Accelerated |
| Furniture and Equipment |   | 5-10          |   | Straight-Line and Accelerated |

----

----

----

----

----

|                                          |   | 2009   |       |   | 2008   |   |
|-----------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                          |   |   |       |   |   |   |
| Cash on Hand and Cash Items                   |   | $      | 8,773,237  |   |   | $      | 9,227,763 |   |
| Noninterest-Bearing Deposits with Other Banks |   |   | 17,222,249 |   |   |   | 20,199,667 |   |
|                                          |   |   |       |   |   |   |   |   |
|                                          |   | $      | 25,995,486 |   |   | $      | 29,427,430 |   |

|                                     |   | AmortizedCost |        |   | GrossUnrealizedGains |   |      | GrossUnrealizedLosses |   |   | FairValue  |   |
|------------------------------------------|--------|---------------|-------------|--------|----------------------|--------|-----------|-----------------------|--------|--------|------------|--------|
| Securities Available for Sale            |   |          |        |   |                 |   |      |                  |   |   |       |   |
| U.S. Government Agencies Mortgage-Backed |   | $             | 258,432,952 |   |                 | $      | 1,535,588 |                  |   | $      | (1,059,532 | )      |   | $ | 258,909,008 |   |
| State, County and Municipal              |   |          | 4,027,322   |   |                 |   | 74,749    |                  |   |   | (34,843    | )      |   |   | 4,067,228 |   |
| Corporate Obligations                    |   |          | 4,458,376   |   |                 |   | 64,810    |                  |   |   | (385,176   | )      |   |   | 4,138,010 |   |
| Asset-Backed Securities                  |   |          | 479,249     |   |                 |   | -         |                  |   |   | (346,822   | )      |   |   | 132,427 |   |
|                                     |   |          |        |   |                 |   |      |                  |   |   |       |   |   |   |   |   |
|                                     |   | $             | 267,397,899 |   |                 | $      | 1,675,147 |                  |   | $      | (1,826,373 | )      |   | $ | 267,246,673 |   |
| Securities Held to Maturity              |   |          |        |   |                 |   |      |                  |   |   |       |   |   |   |   |   |
| State, County and Municipal              |   | $             | 53,906      |   |                 | $      | 3,093     |                  |   | $      | -          |   |   | $ | 56,999 |   |

----

|                                   |   | Securities         |        |
|----------------------------------------|--------|--------------------|-------------|
|                                   |   | Available for Sale |        |   | Held to Maturity |   |
|                                   |   | AmortizedCost      |        |   | FairValue |   |   | AmortizedCost |   |   | FairValue |   |
|                                   |   |               |        |   |   |   |   |   |   |   |   |   |
| Due in One Year or Less                |   | $                  | 100,505     |   |   | $ | 100,997 |   |   | $ | - |   |   | $ | - |   |
| Due After One Year Through Five Years  |   |               | 2,813,820   |   |   |   | 2,588,480 |   |   |   | - |   |   |   | - |   |
| Due After Five Years Through Ten Years |   |               | 3,553,063   |   |   |   | 3,676,447 |   |   |   | 53,906 |   |   |   | 56,999 |   |
| Due After Ten Years                    |   |               | 2,497,559   |   |   |   | 1,971,741 |   |   |   | - |   |   |   | - |   |
|                                   |   |               |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                   |   |               | 8,964,947   |   |   |   | 8,337,665 |   |   |   | 53,906 |   |   |   | 56,999 |   |
| Mortgage-Backed Securities             |   |               | 258,432,952 |   |   |   | 258,909,008 |   |   |   | - |   |   |   | - |   |
|                                   |   |               |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                   |   | $                  | 267,397,899 |   |   | $ | 267,246,673 |   |   | $ | 53,906 |   |   | $ | 56,999 |   |

|                                     |   | AmortizedCost |        |   | GrossUnrealizedGains |   |      | GrossUnrealizedLosses |   |   | FairValue  |   |
|------------------------------------------|--------|---------------|-------------|--------|----------------------|--------|-----------|-----------------------|--------|--------|------------|--------|
|                                     |   |          |        |   |                 |   |      |                  |   |   |       |   |
| Securities Available for Sale            |   |          |        |   |                 |   |      |                  |   |   |       |   |
| U.S. Government Agencies Mortgage-Backed |   | $             | 190,197,764 |   |                 | $      | 1,861,970 |                  |   | $      | (309,684   | )      |   | $ | 191,750,050 |   |
| State, County and Municipal              |   |          | 9,226,505   |   |                 |   | 44,138    |                  |   |   | (219,856   | )      |   |   | 9,050,787 |   |
| Corporate Obligations                    |   |          | 6,650,420   |   |                 |   | 155,230   |                  |   |   | (629,628   | )      |   |   | 6,176,022 |   |
| Asset-Backed Securities                  |   |          | 1,000,000   |   |                 |   | -         |                  |   |   | (332,280   | )      |   |   | 667,720 |   |
|                                     |   |          |        |   |                 |   |      |                  |   |   |       |   |   |   |   |   |
|                                     |   | $             | 207,074,689 |   |                 | $      | 2,061,338 |                  |   | $      | (1,491,448 | )      |   | $ | 207,644,579 |   |
| Securities Held to Maturity              |   |          |        |   |                 |   |      |                  |   |   |       |   |   |   |   |   |
| State, County and Municipal              |   | $             | 59,886      |   |                 | $      | 3,368     |                  |   | $      | -          |   |   | $ | 63,254 |   |

----

|                                     |   | Less Than 12 Months |        |   | 12 Months or Greater    |   |       | Total     |   |
|------------------------------------------|--------|---------------------|-------------|--------|-------------------------|--------|------------|-----------|--------|
|                                     |   | FairValue           |        |   | Gross Unrealized Losses |   |       | FairValue |   |   | Gross Unrealized Losses |   |   | FairValue |   |   | Gross Unrealized Losses |   |
| December 31, 2009                        |   |                |        |   |                    |   |       |      |   |   |   |   |   |   |   |   |   |   |
| U.S. Government Agencies Mortgage-Backed |   | $                   | 114,222,812 |   |                    | $      | (1,056,502 | )         |   | $ | 419,159 |   |   | $ | (3,030 | ) |   | $ | 114,641,971 |   |   | $ | (1,059,532 | ) |
| State, County and Municipal              |   |                | -           |   |                    |   | -          |      |   |   | 1,424,697 |   |   |   | (34,843 | ) |   |   | 1,424,697 |   |   |   | (34,843 | ) |
| Corporate Obligations                    |   |                | -           |   |                    |   | -          |      |   |   | 3,073,200 |   |   |   | (385,176 | ) |   |   | 3,073,200 |   |   |   | (385,176 | ) |
| Asset-Backed Securities                  |   |                | -           |   |                    |   | -          |      |   |   | 132,427 |   |   |   | (346,822 | ) |   |   | 132,427 |   |   |   | (346,822 | ) |
|                                     |   |                |        |   |                    |   |       |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   | $                   | 114,222,812 |   |                    | $      | (1,056,502 | )         |   | $ | 5,049,483 |   |   | $ | (769,871 | ) |   | $ | 119,272,295 |   |   | $ | (1,826,373 | ) |
| December 31, 2008                        |   |                |        |   |                    |   |       |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Government Agencies Mortgage-Backed |   | $                   | 52,276,619  |   |                    | $      | (266,923   | )         |   | $ | 708,302 |   |   | $ | (42,761 | ) |   | $ | 52,984,921 |   |   | $ | (309,684 | ) |
| State, County and Municipal              |   |                | 5,053,601   |   |                    |   | (211,683   | )         |   |   | 91,827 |   |   |   | (8,173 | ) |   |   | 5,145,428 |   |   |   | (219,856 | ) |
| Corporate Obligations                    |   |                | 5,020,792   |   |                    |   | (629,628   | )         |   |   | - |   |   |   | - |   |   |   | 5,020,792 |   |   |   | (629,628 | ) |
| Asset-Backed Securities                  |   |                | 667,720     |   |                    |   | (332,280   | )         |   |   | - |   |   |   | - |   |   |   | 667,720 |   |   |   | (332,280 | ) |
|                                     |   |                |        |   |                    |   |       |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   | $                   | 63,018,732  |   |                    | $      | (1,440,514 | )         |   | $ | 800,129 |   |   | $ | (50,934 | ) |   | $ | 63,818,861 |   |   | $ | (1,491,448 | ) |

----

|                                   |   | 2009   |        |   | 2008   |   |
|----------------------------------------|--------|--------|-------------|--------|--------|--------|
|                                   |   |   |        |   |   |   |
| Commercial, Financial and Agricultural |   | $      | 80,984,410  |   |   | $      | 86,378,778 |   |
| Real Estate-Construction               |   |   | 113,117,056 |   |   |   | 160,373,797 |   |
| Real Estate-Farmland                   |   |   | 54,965,260  |   |   |   | 54,158,907 |   |
| Real Estate-Other                      |   |   | 626,993,440 |   |   |   | 600,653,523 |   |
| Installment Loans to Individuals       |   |   | 38,382,831  |   |   |   | 44,163,516 |   |
| All Other Loans                        |   |   | 16,948,629  |   |   |   | 15,308,004 |   |
|                                   |   |   |        |   |   |   |   |   |
|                                   |   | $      | 931,391,626 |   |   | $      | 961,036,525 |   |

|                                    |   | 2009   |       |   | 2008   |   |
|-----------------------------------------|--------|--------|------------|--------|--------|--------|
|                                    |   |   |       |   |   |   |
| Total Investment in Impaired Loans      |   | $      | 33,535,160 |   |   | $      | 35,123,955 |   |
|                                    |   |   |       |   |   |   |   |   |
| Less Allowance for Impaired Loan Losses |   |   | (17,000    | )      |   |   | (1,721,131 | ) |
|                                    |   |   |       |   |   |   |   |   |
| Net Investment, December 31             |   | $      | 33,518,160 |   |   | $      | 33,402,824 |   |
|                                    |   |   |       |   |   |   |   |   |
| Average Investment during the Year      |   | $      | 36,394,731 |   |   | $      | 24,291,239 |   |
|                                    |   |   |       |   |   |   |   |   |
| Income Recognized during the Year       |   | $      | 684,940    |   |   | $      | 1,301,500 |   |
|                                    |   |   |       |   |   |   |   |   |
| Income Collected during the Year        |   | $      | 913,255    |   |   | $      | 1,496,785 |   |

----

|                                    |   | 2009   |        |   | 2008   |   |        | 2007   |   |
|-----------------------------------------|--------|--------|-------------|--------|--------|--------|-------------|--------|--------|
|                                    |   |   |        |   |   |   |        |   |   |
| Balance, Beginning                      |   | $      | 17,015,883  |   |   | $      | 15,512,940  |   |   | $ | 11,989,359 |   |
|                                    |   |   |        |   |   |   |        |   |   |   |   |   |
| Provision Charged to Operating Expenses |   |   | 43,445,000  |   |   |   | 12,937,750  |   |   |   | 5,930,756 |   |
| Loans Charged Off                       |   |   | (29,493,324 | )      |   |   | (11,966,439 | )      |   |   | (3,908,011 | ) |
| Loan Recoveries                         |   |   | 433,082     |   |   |   | 531,632     |   |   |   | 1,500,836 |   |
|                                    |   |   |        |   |   |   |        |   |   |   |   |   |
| Balance, Ending                         |   | $      | 31,400,641  |   |   | $      | 17,015,883  |   |   | $ | 15,512,940 |   |

|                              |   | 2009   |        |   | 2008   |   |
|-----------------------------------|--------|--------|-------------|--------|--------|--------|
|                              |   |   |        |   |   |   |
| Land                              |   | $      | 7,805,167   |   |   | $      | 7,805,167 |   |
| Building                          |   |   | 23,642,043  |   |   |   | 23,460,842 |   |
| Furniture, Fixtures and Equipment |   |   | 14,365,687  |   |   |   | 13,529,356 |   |
| Leasehold Improvements            |   |   | 993,086     |   |   |   | 990,198 |   |
| Construction in Progress          |   |   | 6,775       |   |   |   | 127,155 |   |
|                              |   |   |        |   |   |   |   |   |
|                              |   |   | 46,812,758  |   |   |   | 45,912,718 |   |
| Accumulated Depreciation          |   |   | (17,986,408 | )      |   |   | (16,240,837 | ) |
|                              |   |   |        |   |   |   |   |   |
|                              |   | $      | 28,826,350  |   |   | $      | 29,671,881 |   |

| Year Ending December 31 |   | Amount |    |
|-------------------------|--------|--------|---------|
|                    |   |   |    |
| 2010                    |   | $      | 129,138 |   |
| 2011                    |   |   | 125,918 |   |
| 2012                    |   |   | 122,813 |   |
| 2013                    |   |   | 88,658  |   |
| 2014 and Thereafter     |   |   | 10,139  |   |
|                    |   |   |    |   |
|                    |   | $      | 476,666 |   |

----

|                        |   | 2009   |       |   | 2008   |   |
|-----------------------------|--------|--------|------------|--------|--------|--------|
|                        |   |   |       |   |   |   |
| Goodwill                    |   |   |       |   |   |   |
| Balance, Beginning          |   | $      | 2,412,338  |   |   | $      | 2,412,338 |   |
| Goodwill Impairment Expense |   |   | (2,412,338 | )      |   |   | - |   |
|                        |   |   |       |   |   |   |   |   |
| Balance, Ending             |   | $      | -          |   |   | $      | 2,412,338 |   |

|                       |   | Core Deposit Intangible |      |   | Accumulated Amortization |   |     | Net Core Deposit Intangible |   |
|----------------------------|--------|-------------------------|-----------|--------|--------------------------|--------|----------|-----------------------------|--------|
|                       |   |                    |      |   |                     |   |     |                        |   |
| Core Deposit Intangible    |   |                    |      |   |                     |   |     |                        |   |
| Balance, December 31, 2008 |   | $                       | 1,056,693 |   |                     | $      | (690,188 | )                           |   | $ | 366,505 |   |
|                       |   |                    |      |   |                     |   |     |                        |   |   |   |   |
| Amortization Expense       |   |                    | -         |   |                     |   | (35,749  | )                           |   |   | (35,749 | ) |
|                       |   |                    |      |   |                     |   |     |                        |   |   |   |   |
| Balance, December 31, 2009 |   | $                       | 1,056,693 |   |                     | $      | (725,937 | )                           |   | $ | 330,756 |   |

| 2010                |   | $      | 35,749  |   |
|---------------------|--------|--------|---------|--------|
| 2011                |   |   | 35,749  |   |
| 2012                |   |   | 35,749  |   |
| 2013                |   |   | 35,749  |   |
| 2014 and Thereafter |   |   | 187,760 |   |
|                |   |   |    |   |
|                |   | $      | 330,756 |   |

----

|                                       |   | 2009   |       |   | 2008   |   |     | 2007   |   |
|--------------------------------------------|--------|--------|------------|--------|--------|--------|----------|--------|--------|
|                                       |   |   |       |   |   |   |     |   |   |
| Current Federal (Benefit) Expense          |   | $      | (4,075,442 | )      |   | $      | 861,723  |   |   | $ | 5,339,925 |   |
| Deferred Federal (Benefit) Expense         |   |   | (5,869,055 | )      |   |   | (250,215 | )      |   |   | (1,233,259 | ) |
|                                       |   |   |       |   |   |   |     |   |   |   |   |   |
| Federal Income Tax (Benefit) Expense       |   |   | (9,944,497 | )      |   |   | 611,508  |   |   |   | 4,106,666 |   |
| Current State Income Tax (Benefit) Expense |   |   | (50,384    | )      |   |   | (54,278  | )      |   |   | 111,797 |   |
|                                       |   |   |       |   |   |   |     |   |   |   |   |   |
|                                       |   | $      | (9,994,881 | )      |   | $      | 557,230  |   |   | $ | 4,218,463 |   |

|                                       |   | 2009   |       |   | 2008   |   |     | 2007   |   |
|--------------------------------------------|--------|--------|------------|--------|--------|--------|----------|--------|--------|
|                                       |   |   |       |   |   |   |     |   |   |
| Statutory Federal Income Taxes             |   | $      | (9,920,776 | )      |   | $      | 879,258  |   |   | $ | 4,340,243 |   |
| Tax-Exempt Interest                        |   |   | (185,775   | )      |   |   | (239,097 | )      |   |   | (234,863 | ) |
| Interest Expense Disallowance              |   |   | 16,729     |   |   |   | 35,869   |   |   |   | 46,847 |   |
| Premiums on Officers’ Life Insurance |   |   | (58,906    | )      |   |   | (54,464  | )      |   |   | (47,369 | ) |
| Meal and Entertainment Disallowance        |   |   | 32,068     |   |   |   | 13,810   |   |   |   | 14,488 |   |
| State Income Taxes                         |   |   | -          |   |   |   | -        |   |   |   | (2,281 | ) |
| Goodwill                                   |   |   | 58,507     |   |   |   | -        |   |   |   | - |   |
| Other                                      |   |   | 113,656    |   |   |   | (23,868  | )      |   |   | (10,399 | ) |
|                                       |   |   |       |   |   |   |     |   |   |   |   |   |
| Actual Federal Income Taxes                |   | $      | (9,944,497 | )      |   | $      | 611,508  |   |   | $ | 4,106,666 |   |

----

|                                                                      |   | 2009   |       |   | 2008   |   |
|---------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Deferred Tax Assets                                                       |   |   |       |   |   |   |
| Allowance for Loan Losses                                                 |   | $      | 10,676,218 |   |   | $      | 5,785,400 |   |
| Deferred Compensation                                                     |   |   | 441,514    |   |   |   | 381,896 |   |
| Restricted Stock                                                          |   |   | 475,045    |   |   |   | 411,238 |   |
| Goodwill                                                                  |   |   | 486,077    |   |   |   | - |   |
| Other                                                                     |   |   | 606,391    |   |   |   | 298,390 |   |
|                                                                      |   |   |       |   |   |   |   |   |
|                                                                      |   |   | 12,685,245 |   |   |   | 6,876,924 |   |
| Deferred Tax Liabilities                                                  |   |   |       |   |   |   |   |   |
| Premises and Equipment                                                    |   |   | (1,340,773 | )      |   |   | (1,237,807 | ) |
| Vested Restricted Stock                                                   |   |   | (337,039   | )      |   |   | (269,014 | ) |
| Other                                                                     |   |   | (4,185     | )      |   |   | (236,107 | ) |
|                                                                      |   |   |       |   |   |   |   |   |
|                                                                      |   |   | (1,681,997 | )      |   |   | (1,742,928 | ) |
| Deferred Tax Assets (Liabilities) on Unrealized Securities Gains (Losses) |   |   | 51,417     |   |   |   | (193,763 | ) |
|                                                                      |   |   |       |   |   |   |   |   |
| Net Deferred Tax Assets                                                   |   | $      | 11,054,665 |   |   | $      | 4,940,233 |   |

| Balance, Beginning                                        |   | $      | 296,821 |   |
|-----------------------------------------------------------|--------|--------|---------|--------|
|                                                      |   |   |    |   |
| Positions Taken During the Current Year                   |   |   | 22,222  |   |
| Reductions Resulting from Lapse of Statutes of Limitation |   |   | (97,459 | )      |
|                                                      |   |   |    |   |
| Balance, Ending                                           |   | $      | 221,584 |   |

|   | ■ | Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------|

|   | ■ | Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ■ | Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement. |
|--------|---------|-------------------------------------------------------------------------------------------------------------|

----

|                                     |   |             |        |   | Fair Value Measurements at Reporting Date Using            |   |
|------------------------------------------|--------|------------------|-------------|--------|------------------------------------------------------------|--------|
|                                     |   | December 31,2009 |        |   | Quoted Pricesin ActiveMarkets forIdentical Assets(Level 1) |   |   | Significant Other ObservableInputs(Level 2) |   |   | SignificantUnobservableInputs(Level 3) |   |
| Recurring                                |   |             |        |   |                                                       |   |   |   |   |   |   |   |
| Securities Available for Sale            |   |             |        |   |                                                       |   |   |   |   |   |   |   |
| U.S. Government Agencies Mortgage-Backed |   | $                | 258,909,008 |   |                                                       | $      | - |   |   | $ | 258,909,008 |   |   | $ | - |   |
| State, County and Municipal              |   |             | 4,067,228   |   |                                                       |   | - |   |   |   | 4,067,228 |   |   |   | - |   |
| Corporate Obligations                    |   |             | 4,138,010   |   |                                                       |   | - |   |   |   | 3,288,010 |   |   |   | 850,000 |   |
| Asset-Backed Securities                  |   |             | 132,427     |   |                                                       |   | - |   |   |   | - |   |   |   | 132,427 |   |
|                                     |   |             |        |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
|                                     |   | $                | 267,246,673 |   |                                                       | $      | - |   |   | $ | 266,264,246 |   |   | $ | 982,427 |   |
| Nonrecurring                             |   |             |        |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
| Impaired Loans                           |   | $                | 33,518,160  |   |                                                       | $      | - |   |   | $ | - |   |   | $ | 33,518,160 |   |
|                                     |   |             |        |   |                                                       |   |   |   |   |   |   |   |   |   |   |   |
| Other Real Estate                        |   | $                | 19,705,044  |   |                                                       | $      | - |   |   | $ | 19,705,044 |   |   | $ | - |   |

----

|                                                 |   | Available forSale Securities |      |
|------------------------------------------------------|--------|------------------------------|-----------|
|                                                 |   |                         |      |
| Balance, Beginning                                   |   | $                            | 1,426,220 |   |
| Total Realized/Unrealized Gains (Losses) Included In |   |                         |      |   |
| Loss on OTTI Impairment                              |   |                         | (520,751  | ) |
| Other Comprehensive Income                           |   |                         | 76,958    |   |
| Purchases, Sales, Issuances and Settlements, Net     |   |                         | -         |   |
| Transfers In and (Out) of Level 3                    |   |                         | -         |   |
|                                                 |   |                         |      |   |
| Balance, Ending                                      |   | $                            | 982,427   |   |

|                    |   | 2009   |        |   | 2008   |   |
|-------------------------|--------|--------|-------------|--------|--------|--------|
|                    |   |   |        |   |   |   |
| Interest-Bearing Demand |   | $      | 220,168,255 |   |   | $      | 194,210,807 |   |
| Savings                 |   |   | 34,850,882  |   |   |   | 33,349,191 |   |
| Time, $100,000 and Over |   |   | 364,064,083 |   |   |   | 333,498,421 |   |
| Other Time              |   |   | 354,264,422 |   |   |   | 368,436,158 |   |
|                    |   |   |        |   |   |   |   |   |
|                    |   | $      | 973,347,642 |   |   | $      | 929,494,577 |   |

----

| Year                |   | Amount |        |
|---------------------|--------|--------|-------------|
|                |   |   |        |
| 2010                |   | $      | 620,164,923 |   |
| 2011                |   |   | 40,162,422  |   |
| 2012                |   |   | 53,891,905  |   |
| 2013                |   |   | 2,576,112   |   |
| 2014 and Thereafter |   |   | 1,533,143   |   |
|                |   |   |        |   |
|                |   | $      | 718,328,505 |   |

|                            |   | 2009   |       |   | 2008   |   |
|---------------------------------|--------|--------|------------|--------|--------|--------|
|                            |   |   |       |   |   |   |
| Federal Home Loan Bank Advances |   | $      | 91,000,000 |   |   | $      | 91,000,000 |   |

----

| Year                |   | Amount |       |
|---------------------|--------|--------|------------|
|                |   |   |       |
| 2010                |   | $      | 20,000,000 |   |
| 2011                |   |   | -          |   |
| 2012                |   |   | 41,000,000 |   |
| 2013                |   |   | -          |   |
| 2014 and Thereafter |   |   | 30,000,000 |   |
|                |   |   |       |   |
|                |   | $      | 91,000,000 |   |

----

----

|                         |   | Contract Amount |       |
|------------------------------|--------|-----------------|------------|
|                         |   | 2009            |       |   | 2008 |   |
|                         |   |            |       |   |   |   |
| Commitments to Extend Credit |   | $               | 56,100,000 |   |   | $ | 73,610,000 |   |
| Standby Letters of Credit    |   |            | 1,475,000  |   |   |   | 2,710,000 |   |

----

----

|             |   | 2009   |       |   | 2008   |   |       | 2007   |   |
|------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
|             |   |   |       |   |   |   |       |   |   |
| Interest Expense |   | $      | 27,537,602 |   |   | $      | 38,739,489 |   |   | $ | 47,409,625 |   |
|             |   |   |       |   |   |   |       |   |   |   |   |   |
| Income Taxes     |   | $      | -          |   |   | $      | 1,875,000  |   |   | $ | 6,380,000 |   |

|                                                  |   | 2009   |       |   | 2008   |   |       | 2007   |   |
|-------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
|                                                  |   |   |       |   |   |   |       |   |   |   |   |   |
| Acquisitions of Real Estate Through Loan Foreclosures |   | $      | 19,258,910 |   |   | $      | 14,748,105 |   |   | $ | 2,576,332 |   |
|                                                  |   |   |       |   |   |   |       |   |   |   |   |   |
| Unrealized (Gain) Loss on Investment Securities       |   | $      | 721,116    |   |   | $      | (157,957   | )      |   | $ | (1,888,934 | ) |

|                                     |   | 2009   |       |   | 2008   |   |
|------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                     |   |   |       |   |   |   |
| Balance, Beginning                       |   | $      | 7,641,037  |   |   | $      | 16,544,057 |   |
| New Loans                                |   |   | 4,829,291  |   |   |   | 5,871,138 |   |
| Repayments                               |   |   | (5,997,090 | )      |   |   | (4,282,192 | ) |
| Transactions Due to Changes in Directors |   |   | -          |   |   |   | (10,491,966 | ) |
|                                     |   |   |       |   |   |   |   |   |
| Balance, Ending                          |   | $      | 6,473,238  |   |   | $      | 7,641,037 |   |

----

----

|                                           |   | 2009           |      |   | 2008       |   |
|------------------------------------------------|--------|----------------|-----------|--------|------------|--------|
|                                           |   | Carrying       |      |   | Estimated  |   |   | Carrying |   |   | Estimated |   |
|                                           |   | Amount         |      |   | Fair Value |   |   | Amount |   |   | Fair Value |   |
|                                           |   | (in Thousands) |      |
| Assets                                         |   |           |      |   |       |   |   |   |   |   |   |   |
| Cash and Short-Term Investments                |   | $              | 48,908    |   |       | $      | 48,908 |   |   | $ | 29,605 |   |   | $ | 29,605 |   |
| Investment Securities Available for Sale       |   |           | 267,247   |   |       |   | 267,247 |   |   |   | 207,645 |   |   |   | 207,645 |   |
| Investment Securities Held to Maturity         |   |           | 54        |   |       |   | 57 |   |   |   | 60 |   |   |   | 63 |   |
| Federal Home Loan Bank Stock                   |   |           | 6,345     |   |       |   | 6,345 |   |   |   | 6,272 |   |   |   | 6,272 |   |
| Loans, Net                                     |   |           | 899,851   |   |       |   | 908,638 |   |   |   | 943,841 |   |   |   | 959,613 |   |
|                                           |   |           |      |   |       |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities                                    |   |           |      |   |       |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                       |   |           | 1,057,586 |   |       |   | 1,059,037 |   |   |   | 1,006,991 |   |   |   | 1,009,967 |   |
| Federal Funds Purchased                        |   |           | -         |   |       |   | - |   |   |   | 2,274 |   |   |   | 2,274 |   |
| Subordinated Debentures                        |   |           | 24,229    |   |       |   | 24,229 |   |   |   | 24,229 |   |   |   | 24,229 |   |
| Securities Sold Under Agreements to Repurchase |   |           | 40,000    |   |       |   | 40,671 |   |   |   | 40,000 |   |   |   | 40,765 |   |
| Other Borrowed Money                           |   |           | 91,000    |   |       |   | 91,703 |   |   |   | 91,000 |   |   |   | 94,067 |   |

----

----

|                                   |   | Actual         |    |   | For Capital Adequacy Purposes |   |   | To Be Well Capitalized Under Prompt Corrective Action Provisions |   |
|----------------------------------------|--------|----------------|---------|--------|-------------------------------|--------|--------|------------------------------------------------------------------|--------|
|                                   |   | Amount         |    |   | Ratio                         |   |   | Amount                                                           |   |   | Ratio |   |   | Amount |   |   | Ratio |   |
| As of December 31, 2009                |   | (In Thousands) |    |
|                                   |   |           |    |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |
| Total Capital to Risk-Weighted Assets  |   |           |    |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |
| Consolidated                           |   | $              | 118,848 |   |                          |   | 13.07  | %                                                                |   | $ | 72,768 |   |   |   | 8.00 | % |   |   | N/A |   |   |   | N/A |   |
| Colony Bank                            |   |           | 117,756 |   |                          |   | 12.97  |                                                             |   |   | 72,622 |   |   |   | 8.00 |   |   | $ | 90,777 |   |   |   | 10.00 | % |
|                                   |   |           |    |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier I Capital to Risk-Weighted Assets |   |           |    |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                           |   |           | 107,231 |   |                          |   | 11.79  |                                                             |   |   | 36,384 |   |   |   | 4.00 |   |   |   | N/A |   |   |   | N/A |   |
| Colony Bank                            |   |           | 106,161 |   |                          |   | 11.69  |                                                             |   |   | 36,311 |   |   |   | 4.00 |   |   |   | 54,466 |   |   |   | 6.00 |   |
|                                   |   |           |    |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier I Capital to Average Assets       |   |           |    |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                           |   |           | 107,231 |   |                          |   | 8.30   |                                                             |   |   | 51,708 |   |   |   | 4.00 |   |   |   | N/A |   |   |   | N/A |   |
| Colony Bank                            |   |           | 106,161 |   |                          |   | 8.22   |                                                             |   |   | 51,641 |   |   |   | 4.00 |   |   |   | 64,551 |   |   |   | 5.00 |   |
|                                   |   |           |    |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| As of December 31, 2008                |   |           |    |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                   |   |           |    |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Capital to Risk-Weighted Assets  |   |           |    |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                           |   |           | 115,604 |   |                          |   | 12.06  |                                                             |   |   | 76,684 |   |   |   | 8.00 |   |   |   | N/A |   |   |   | N/A |   |
| Colony Bank                            |   |           | 114,545 |   |                          |   | 11.97  |                                                             |   |   | 76,547 |   |   |   | 8.00 |   |   |   | 95,684 |   |   |   | 10.00 |   |
|                                   |   |           |    |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier I Capital to Risk-Weighted Assets |   |           |    |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                           |   |           | 103,560 |   |                          |   | 10.80  |                                                             |   |   | 38,342 |   |   |   | 4.00 |   |   |   | N/A |   |   |   | N/A |   |
| Colony Bank                            |   |           | 102,522 |   |                          |   | 10.71  |                                                             |   |   | 38,273 |   |   |   | 4.00 |   |   |   | 57,470 |   |   |   | 6.00 |   |
|                                   |   |           |    |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier I Capital to Average Assets       |   |           |    |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consolidated                           |   |           | 103,560 |   |                          |   | 8.39   |                                                             |   |   | 49,380 |   |   |   | 4.00 |   |   |   | N/A |   |   |   | N/A |   |
| Colony Bank                            |   |           | 102,522 |   |                          |   | 8.33   |                                                             |   |   | 49,205 |   |   |   | 4.00 |   |   |   | 61,506 |   |   |   | 5.00 |   |

----

| ASSETS                                                                                                                                         |   |
|------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                           |   |   |   |   |   |   |
|                                                                                                                                           |   | 2009 |   |   | 2008 |   |
|                                                                                                                                           |   |   |   |   |   |   |
| Cash                                                                                                                                           |   | $ | 556,209 |   |   | $ | 2,227 |   |
| Premises and Equipment, Net                                                                                                                    |   |   | 1,553,652 |   |   |   | 1,542,040 |   |
| Investment in Subsidiary, at Equity                                                                                                            |   |   | 111,450,651 |   |   |   | 105,506,392 |   |
| Other                                                                                                                                          |   |   | 257,252 |   |   |   | 1,293,424 |   |
|                                                                                                                                           |   |   |   |   |   |   |   |   |
| Total Assets                                                                                                                                   |   | $ | 113,817,764 |   |   | $ | 108,344,083 |   |
|                                                                                                                                           |   |   |   |   |   |   |   |   |
|                                                                                                                                           |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                     |   |
|                                                                                                                                           |   |   |   |   |   |   |   |   |
| Liabilities                                                                                                                                    |   |   |   |   |   |   |   |   |
| Dividends Payable                                                                                                                              |   | $ | 175,000 |   |   | $ | 703,201 |   |
| Other                                                                                                                                          |   |   | 139,140 |   |   |   | 196,727 |   |
|                                                                                                                                           |   |   |   |   |   |   |   |   |
|                                                                                                                                           |   |   | 314,140 |   |   |   | 899,928 |   |
|                                                                                                                                           |   |   |   |   |   |   |   |   |
| Subordinated Debt                                                                                                                              |   |   | 24,229,000 |   |   |   | 24,229,000 |   |
|                                                                                                                                           |   |   |   |   |   |   |   |   |
| Stockholders’ Equity                                                                                                                     |   |   |   |   |   |   |   |   |
| Preferred Stock, No Par Value; Authorized 10,000,000 Shares, Issued 28,000 Shares                                                              |   |   | 27,356,964 |   |   |   | - |   |
| Common Stock, Par Value $1; Authorized 20,000,000 Shares, Issued 7,229,163 and 7,212,313 Shares as of December 31, 2009 and 2008, Respectively |   |   | 7,229,163 |   |   |   | 7,212,313 |   |
| Paid-In Capital                                                                                                                                |   |   | 25,392,913 |   |   |   | 24,535,683 |   |
| Retained Earnings                                                                                                                              |   |   | 29,553,940 |   |   |   | 51,302,025 |   |
| Restricted Stock – Unearned Compensation                                                                                                 |   |   | (158,547 | ) |   |   | (210,993 | ) |
| Accumulated Other Comprehensive Income, Net of Tax                                                                                             |   |   | (99,809 | ) |   |   | 376,127 |   |
|                                                                                                                                           |   |   |   |   |   |   |   |   |
|                                                                                                                                           |   |   | 89,274,624 |   |   |   | 83,215,155 |   |
|                                                                                                                                           |   |   |   |   |   |   |   |   |
| Total Liabilities and Stockholders’ Equity                                                                                               |   | $ | 113,817,764 |   |   | $ | 108,344,083 |   |

----

| COLONY BANKCORP, INC. (PARENT ONLY)STATEMENTS OF OPERATIONSFOR THE YEARS ENDED DECEMBER 31 |   |
|--------------------------------------------------------------------------------------------|--------|
|                                                                                       |   |   |   |   |   |   |   |   |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |
|                                                                                       |   | 2009 |   |   | 2008 |   |   | 2007 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |
| Income                                                                                     |   |   |   |   |   |   |   |   |   |
| Dividends from Subsidiary                                                                  |   | $ | 2,170,827 |   |   | $ | 5,038,854 |   |   | $ | 5,662,500 |   |
| Management Fees                                                                            |   |   | 227,620 |   |   |   | - |   |   |   | - |   |
| Other                                                                                      |   |   | 100,157 |   |   |   | 92,111 |   |   |   | 281,885 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                       |   |   | 2,498,604 |   |   |   | 5,130,965 |   |   |   | 5,944,385 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Expenses                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                                                                                   |   |   | 659,456 |   |   |   | 1,270,942 |   |   |   | 2,005,971 |   |
| Amortization                                                                               |   |   | 2,250 |   |   |   | 2,250 |   |   |   | 295,093 |   |
| Salaries and Employee Benefits                                                             |   |   | 848,076 |   |   |   | 876,166 |   |   |   | 974,524 |   |
| Goodwill Impairment                                                                        |   |   | 172,029 |   |   |   | - |   |   |   | - |   |
| Other                                                                                      |   |   | 799,924 |   |   |   | 1,240,339 |   |   |   | 889,093 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                       |   |   | 2,481,735 |   |   |   | 3,389,697 |   |   |   | 4,164,681 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Income Before Taxes and Equity in Undistributed Earnings of Subsidiary                     |   |   | 16,869 |   |   |   | 1,741,268 |   |   |   | 1,779,704 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Income Tax Benefits                                                                        |   |   | 608,062 |   |   |   | 979,911 |   |   |   | 1,213,835 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Income Before Equity in Undistributed Earnings of Subsidiary                               |   |   | 624,931 |   |   |   | 2,721,179 |   |   |   | 2,993,539 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity in Undistributed Earnings (Losses) of Subsidiary                                    |   |   | (19,808,805 | ) |   |   | (692,355 | ) |   |   | 5,553,417 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Income (Loss)                                                                          |   |   | (19,183,874 | ) |   |   | 2,028,824 |   |   |   | 8,546,956 |   |
| Preferred Stock Dividends                                                                  |   |   | 1,365,000 |   |   |   | - |   |   |   | - |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Income (Loss) Available to Common Stockholders                                         |   | $ | (20,548,874 | ) |   | $ | 2,028,824 |   |   | $ | 8,546,956 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |

----

| COLONY BANKCORP, INC. (PARENT ONLY)STATEMENTS OF COMPREHENSIVE INCOME (LOSS)FOR THE YEARS ENDED DECEMBER 31                  |   |
|------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                         |   |   |   |   |   |   |   |   |   |
|                                                                                                                         |   |   |   |   |   |   |   |   |   |
|                                                                                                                         |   | 2009 |   |   | 2008 |   |   | 2007 |   |
|                                                                                                                         |   |   |   |   |   |   |   |   |   |
| Net Income (Loss)                                                                                                            |   | $ | (19,183,874 | ) |   | $ | 2,028,824 |   |   | $ | 8,546,956 |   |
|                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Other Comprehensive Income, Net of Tax                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Gains on Securities Arising During the Year                                                                                  |   |   | 1,257,136 |   |   |   | 893,158 |   |   |   | 1,367,910 |   |
| Reclassification Adjustment                                                                                                  |   |   | (1,733,072 | ) |   |   | (788,907 | ) |   |   | (121,213 | ) |
|                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Change in Net Unrealized Gains (Losses) on Securities Available for Sale, Net of Reclassification Adjustment and Tax Effects |   |   | (475,936 | ) |   |   | 104,251 |   |   |   | 1,246,697 |   |
|                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive Income (Loss)                                                                                                  |   | $ | (19,659,810 | ) |   | $ | 2,133,075 |   |   | $ | 9,793,653 |   |

----

| COLONY BANKCORP, INC. (PARENT ONLY)STATEMENTS OF CASH FLOWSFOR THE YEARS ENDED DECEMBER 31 |   |
|--------------------------------------------------------------------------------------------|--------|
|                                                                                       |   |   |   |   |   |   |   |   |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |
|                                                                                       |   | 2009 |   |   | 2008 |   |   | 2007 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |
| Cash Flows from Operating Activities                                                       |   |   |   |   |   |   |   |   |   |
| Net Income (Loss)                                                                          |   | $ | (19,183,874 | ) |   | $ | 2,028,824 |   |   | $ | 8,546,956 |   |
| Adjustments to Reconcile Net Income (Loss) to                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Cash Provided from Operating Activities                                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation and Amortization                                                              |   |   | 295,209 |   |   |   | 275,299 |   |   |   | 294,121 |   |
| Goodwill Impairment                                                                        |   |   | 172,029 |   |   |   | - |   |   |   | - |   |
| Equity in Undistributed (Earnings) Losses of Subsidiary                                    |   |   | 19,808,805 |   |   |   | 692,355 |   |   |   | (5,553,417 | ) |
| Other                                                                                      |   |   | 31,634 |   |   |   | 720,701 |   |   |   | (436,928 | ) |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                       |   |   | 1,123,803 |   |   |   | 3,717,179 |   |   |   | 2,850,732 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash Flows from Investing Activities                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital Infusion in Subsidiary                                                             |   |   | (25,500,000 | ) |   |   | (1,500,000 | ) |   |   | (1,500,000 | ) |
| Purchases of Premises and Equipment                                                        |   |   | (119,156 | ) |   |   | (393,392 | ) |   |   | (44,915 | ) |
| Investment in Capital Trusts                                                               |   |   | - |   |   |   | - |   |   |   | (434,000 | ) |
| Liquidation of Statutory Trusts                                                            |   |   | - |   |   |   | - |   |   |   | 434,000 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                       |   |   | (25,619,156 | ) |   |   | (1,893,392 | ) |   |   | (1,544,915 | ) |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash Flows from Financing Activities                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividends Paid on Preferred Stock                                                          |   |   | (1,190,000 | ) |   |   | - |   |   |   | - |   |
| Dividends Paid on Common Stock                                                             |   |   | (1,760,665 | ) |   |   | (2,794,520 | ) |   |   | (2,556,438 | ) |
| Principal Payments on Notes and Debentures                                                 |   |   | - |   |   |   | - |   |   |   | (14,434,000 | ) |
| Proceeds from Notes and Debentures                                                         |   |   | - |   |   |   | - |   |   |   | 14,434,000 |   |
| Proceeds Allocated to Issuance of Preferred Stock                                          |   |   | 27,215,218 |   |   |   | - |   |   |   | - |   |
| Proceeds Allocated to Warrants Issued                                                      |   |   | 784,782 |   |   |   | - |   |   |   | - |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                       |   |   | 25,049,335 |   |   |   | (2,794,520 | ) |   |   | (2,556,438 | ) |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Increase (Decrease) in Cash                                                                |   |   | 553,982 |   |   |   | (970,733 | ) |   |   | (1,250,621 | ) |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash, Beginning                                                                            |   |   | 2,227 |   |   |   | 972,960 |   |   |   | 2,223,581 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash, Ending                                                                               |   | $ | 556,209 |   |   | $ | 2,227 |   |   | $ | 972,960 |   |

----

|  December 31, 2009                                                                         |   | Income Numerator |        |   | CommonSharesDenominator |   |      |  EPS |   |
|-------------------------------------------------------------------------------------------------|--------|------------------|-------------|--------|-------------------------|--------|-----------|-----------|--------|
|                                                                                            |   |             |        |   |                    |   |      |      |   |
| Basic EPS                                                                                       |   |             |        |   |                    |   |      |      |   |
| Income (Loss) Available to Common Stockholders                                                  |   | $                | (20,548,874 | )      |                    |   | 7,213,430 |      |   | $ | (2.85 | ) |
|                                                                                            |   |             |        |   |                    |   |      |      |   |   |   |   |
| Dilutive Effect of Potential Common Stock                                                       |   |             |        |   |                    |   |      |      |   |   |   |   |
| Restricted Stock                                                                                |   |             |        |   |                    |   | -         |      |   |   |   |   |
|                                                                                            |   |             |        |   |                    |   |      |      |   |   |   |   |
| Diluted EPS                                                                                     |   |             |        |   |                    |   |      |      |   |   |   |   |
| Income (Loss) Available to Common Stockholders After Assumed Conversions of Dilutive Securities |   | $                | (20,548,874 | )      |                    |   | 7,213,430 |      |   | $ | (2.85 | ) |
|                                                                                            |   |             |        |   |                    |   |      |      |   |   |   |   |
| December 31, 2008                                                                               |   |             |        |   |                    |   |      |      |   |   |   |   |
|                                                                                            |   |             |        |   |                    |   |      |      |   |   |   |   |
| Basic EPS                                                                                       |   |             |        |   |                    |   |      |      |   |   |   |   |
| Income Available to Common Stockholders                                                         |   | $                | 2,028,824   |   |                    |   | 7,199,121 |      |   | $ | 0.28 |   |
|                                                                                            |   |             |        |   |                    |   |      |      |   |   |   |   |
| Dilutive Effect of Potential Common Stock                                                       |   |             |        |   |                    |   |      |      |   |   |   |   |
| Restricted Stock                                                                                |   |             |        |   |                    |   | -         |      |   |   |   |   |
|                                                                                            |   |             |        |   |                    |   |      |      |   |   |   |   |
| Diluted EPS                                                                                     |   |             |        |   |                    |   |      |      |   |   |   |   |
| Income Available to Common Stockholders After Assumed Conversions of Dilutive Securities        |   | $                | 2,028,824   |   |                    |   | 7,199,121 |      |   | $ | 0.28 |   |
|                                                                                            |   |             |        |   |                    |   |      |      |   |   |   |   |
| December 31, 2007                                                                               |   |             |        |   |                    |   |      |      |   |   |   |   |
|                                                                                            |   |             |        |   |                    |   |      |      |   |   |   |   |
| Basic EPS                                                                                       |   |             |        |   |                    |   |      |      |   |   |   |   |
| Income Available to Common Stockholders                                                         |   | $                | 8,546,956   |   |                    |   | 7,188,696 |      |   | $ | 1.19 |   |
|                                                                                            |   |             |        |   |                    |   |      |      |   |   |   |   |
| Dilutive Effect of Potential Common Stock                                                       |   |             |        |   |                    |   |      |      |   |   |   |   |
| Restricted Stock                                                                                |   |             |        |   |                    |   | 8,635     |      |   |   |   |   |
|                                                                                            |   |             |        |   |                    |   |      |      |   |   |   |   |
| Diluted EPS                                                                                     |   |             |        |   |                    |   |      |      |   |   |   |   |
| Income Available to Common Stockholders After Assumed Conversions of Dilutive Securities        |   | $                | 8,546,956   |   |                    |   | 7,197,331 |      |   | $ | 1.19 |   |

----