Colony Bankcorp Reports First Quarter 2025 Results

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Apr 23, 2025

Colony Bankcorp, Inc. (NYSE: CBAN) (“Colony” or the “Company”) today reported financial results for the first quarter of 2025. Financial highlights are shown below.

Financial Highlights:

  • Net income was $6.6 million, or $0.38 per diluted share, for the first quarter of 2025, compared to $7.4 million, or $0.42 per diluted share, for the fourth quarter of 2024, and $5.3 million, or $0.30 per diluted share, for the first quarter of 2024.
  • Operating net income was $6.6 million, or $0.38 of adjusted earnings per diluted share, for the first quarter of 2025, compared to $7.8 million, or $0.44 of adjusted earnings per diluted share, for the fourth quarter of 2024, and $5.8 million, or $0.33 of adjusted earnings per diluted share, for the first quarter of 2024. (See Reconciliation of Non-GAAP Measures).
  • Provision for credit losses of $1.5 million was recorded in first quarter of 2025 compared to $650,000 in fourth quarter of 2024, and $1.0 million in first quarter of 2024.
  • Total loans, excluding loans held for sale, were $1.92 billion at March 31, 2025, an increase of $78.3 million, or 4.25%, from the prior quarter.
  • Total deposits were $2.62 billion and $2.57 billion at March 31, 2025 and December 31, 2024, respectively, an increase of $54.6 million.
  • Mortgage production was $72.0 million, and mortgage sales totaled $55.9 million in the first quarter of 2025 compared to $76.9 million and $51.4 million, respectively, for the fourth quarter of 2024.
  • Small Business Specialty Lending (“SBSL”) closed $15.4 million in Small Business Administration (“SBA”) loans and sold $12.1 million in SBA loans in the first quarter of 2025 compared to $22.2 million and $30.0 million, respectively, for the fourth quarter of 2024.

The Company also announced that on April 23, 2025, the Board of Directors declared a quarterly cash dividend of $0.1150 per share, to be paid on its common stock on May 21, 2025, to shareholders of record as of the close of business on May 7, 2025. The Company had 17,481,709 shares of its common stock outstanding as of April 21, 2025.

“We are pleased to report strong financial results for the first quarter along with continued improvement in our margin and better than expected loan growth. We also had a great quarter for low cost deposit growth which contributed to a lower cost of funds as we continue building customer deposit relationships. We believe our growth in both loans and deposits in the first quarter sets a solid foundation for us to perform well in the future.” said Heath Fountain, Chief Executive Officer.

“Noninterest income came in lighter during the first quarter, which is consistent with the seasonal trends we typically see early in the year. This is a normal pattern for our business, and we remain optimistic in our outlook, expecting revenue to strengthen in the coming quarters as seasonal activity picks up. We are also excited about the acquisition of the Ellerbee Agency, which was announced and closed in April, and look forward to their success as part of Colony Insurance.”

"While recent market volatility has created a more dynamic environment, we remain confident in the strength and resilience of our operations, as well as those of our customers. Our long-term fundamentals are solid, we continue to make progress on strategic initiatives and we are well-positioned to navigate changing market conditions."

Balance Sheet

  • Total assets were $3.17 billion at March 31, 2025, an increase of $62.0 million from December 31, 2024.
  • Total loans, excluding loans held for sale, were at $1.92 billion at March 31, 2025, an increase of $78.3 million from the quarter ended December 31, 2024.
  • Total deposits were $2.62 billion and $2.57 billion at March 31, 2025 and December 31, 2024, respectively, an increase of $54.6 million. Increases were seen in interest bearing demand deposits of $59.4 million, savings and money market deposits of $1.8 million and time deposits of $5.8 million, from December 31, 2024 to March 31, 2025.
  • Total borrowings at March 31, 2025 totaled $248.1 million, an increase of $23,000 compared to December 31, 2024, related to a minimal increase in other borrowed money.

Capital

  • Colony continues to maintain a strong capital position, with ratios that exceed regulatory minimums required to be considered as “well-capitalized.”
  • Under the Company’s approved stock repurchase program, a total of 38,307 shares of Company common stock were repurchased during the first quarter of 2025 at an average price of $16.45 per share and a total value of $629,983.
  • Preliminary tier one leverage ratio, tier one capital ratio, total risk-based capital ratio and common equity tier one capital ratio were 9.43%, 13.75%, 16.52%, and 12.62%, respectively, at March 31, 2025.

First Quarter 2025 Results of Operations

  • Net interest income, on a tax-equivalent basis, totaled $21.1 million for the first quarter ended March 31, 2025 compared to $18.8 million for the same period in 2024. Income on interest earning assets increased while expenses on interest bearing liabilities decreased slightly due to the decrease in rates in the latter part of 2024. Income on interest earning assets increased $2.2 million, to $35.7 million for the first quarter of 2025 compared to the respective period in 2024. Expense on interest bearing liabilities decreased $83,143, to $14.6 million for the first quarter of 2025 compared to the respective period in 2024.
  • Net interest margin for the first quarter of 2025 was 2.93% compared to 2.69% for the first quarter of 2024. This increase was primarily related to an increase in interest earning assets and period over period, partially offset by the rate decreases in interest bearing liabilities.
  • Noninterest income totaled $9.0 million for the first quarter ended March 31, 2025, a decrease of $443,000, or 4.67%, compared to the same period in 2024. This decrease was primarily related to decreases in service charges on deposit accounts, gains on sales of SBA loans and income on merchant and wealth advisory services which is included in other noninterest income, which were partially offset by increases in mortgage fee income and decreases on losses on the sales of investment securities.
  • Noninterest expense totaled $20.2 million for the first quarter ended March 31, 2025, compared to $20.4 million for the same period in 2024. This slight decrease was a result of decreases in salaries and employee benefits, professional fees and advertising and public relations expenses partially offset by increases in occupancy and equipment and information technology expenses.

Asset Quality

  • Nonperforming assets totaled $13.0 million and $11.3 million at March 31, 2025 and December 31, 2024, respectively, an increase of $1.7 million.
  • Other real estate owned and repossessed assets totaled $528,000 at March 31, 2025 and $530,000 at December 31, 2024.
  • Net loans charged-off were $606,000, or 0.13% of average loans for the first quarter of 2025, compared to $1.5 million or 0.33% for the fourth quarter of 2024.
  • The credit loss reserve was $20.0 million, or 1.04% of total loans, at March 31, 2025, compared to $19.0 million, or 1.03% of total loans at December 31, 2024.

Earnings call information

The Company will host an earnings conference call at 9:00 a.m. ET on Thursday, April 24, 2025, to discuss the recent results and answer appropriate questions. The conference call can be accessed by dialing 1-800-549-8228 and using the Conference ID: 68027. A replay of the call will be available until Thursday, May 1, 2025. To listen to the replay, dial 1-888-660-6264 and entering the passcode 68027#.

About Colony Bankcorp

Colony Bankcorp, Inc. is the bank holding company for Colony Bank. Founded in Fitzgerald, Georgia in 1975, Colony operates locations throughout Georgia as well as in Birmingham, Alabama; Tallahassee, Florida; and the Florida Panhandle. Colony Bank offers a range of banking solutions for personal and business customers. In addition to traditional banking services, Colony provides specialized solutions including mortgage lending, government guaranteed lending, consumer insurance, wealth management, credit cards and merchant services. Colony’s common stock is traded on the New York Stock Exchange (“NYSE”) under the symbol “CBAN.” For more information, please visit www.colony.bank. You can also follow the Company on social media.

Forward-Looking Statements

Certain statements contained in this press release that are not statements of historical fact constitute “forward-looking statements” within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In addition, certain statements may be contained in the Company’s future filings with the SEC, in press releases, and in oral and written statements made by or with the approval of the Company that are not statements of historical fact and constitute “forward-looking statements” within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Examples of forward-looking statements include, but are not limited to: (i) projections and/or expectations of revenues, income or loss, earnings or loss per share, the payment or nonpayment of dividends, capital structure and other financial items; (ii) statement of plans and objectives of Colony Bankcorp, Inc. or its management or Board of Directors, including those relating to products or services; (iii) statements of future economic performance; (iv) statements regarding growth strategy, capital management, liquidity and funding, and future profitability; and (v) statements of assumptions underlying such statements. Words such as “may”, “will”, “anticipate”, “assume”, “should”, “support”, “indicate”, “would”, “believe”, “contemplate”, “expect”, “estimate”, “continue”, “further”, “plan”, “point to”, “project”, “could”, “intend”, “target” and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements.

Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties. Factors that might cause such differences include, but are not limited to: the impact of current and future economic conditions, particularly those affecting the financial services industry, including the effects of declines in the real estate market, tariffs or trade wars (including the resulting reduced consumer spending, lower economic growth or recession, reduced demand for U.S. exports, disruptions to supply chains, and decreased demand for other banking products and services), high unemployment rates, inflationary pressures, changes in interest rates (including the impact of prolonged elevated interest rates on our financial projections and models) and slowdowns in economic growth, as well as the financial stress on borrowers as a result of the foregoing; the risk of reductions in benchmark interest rates and the resulting impacts on net interest income; potential impacts of adverse developments in the banking industry highlighted by high-profile bank failures, including impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto; risks arising from media coverage of the banking industry; risks arising from perceived instability in the banking sector; the risks of changes in interest rates and their effects on the level, cost, and composition of, and competition for, deposits, loan demand and timing of payments, the values of loan collateral, securities, and interest sensitive assets and liabilities; the ability to attract new or retain existing deposits, to retain or grow loans or additional interest and fee income, or to control noninterest expense; the effect of pricing pressures on the Company’s net interest margin; the failure of assumptions underlying the establishment of reserves for possible credit losses, fair value for loans and other real estate owned; changes in real estate values; the Company’s ability to implement its various strategic and growth initiatives; increased competition in the financial services industry, particularly from regional and national institutions, as well as from fintech companies; economic conditions, either nationally or locally, in areas in which the Company conducts operations being less favorable than expected; changes in the prices, values and sales volumes of residential and commercial real estate; developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance; legislation or regulatory changes which adversely affect the ability of the consolidated Company to conduct business combinations or new operations; adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions, including as a result of the Company’s participation in and execution of government programs; significant turbulence or a disruption in the capital or financial markets and the effect of a fall in the stock market prices on our investment securities; the effects of war or other conflicts; general risks related to the Company’s merger and acquisition activity, including risks associated with integrating and realizing the expected financial benefits of previous acquisitions, and the Company’s pursuit of future acquisitions; the impact of generative artificial intelligence; fraud or misconduct by internal or external actors, and system failures, cybersecurity threats or security breaches and the cost of defending against them; a deterioration of the credit rating for U.S. long-term sovereign debt, actions that the U.S. government may take to avoid exceeding the debt ceiling, and uncertainties surrounding debt ceiling and the federal budget; a potential U.S. federal government shutdown and the resulting impacts; and general competitive, economic, political and market conditions or other unexpected factors or events. These and other factors, risks and uncertainties could cause the actual results, performance or achievements of the Company to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. Many of these factors are beyond the Company’s ability to control or predict.

Forward-looking statements speak only as of the date on which such statements are made. These forward-looking statements are based upon information presently known to the Company’s management and are inherently subjective, uncertain and subject to change due to any number of risks and uncertainties, including, without limitation, the risks and other factors set forth in the Company’s filings with the Securities and Exchange Commission, the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, under the captions “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors,” and in the Company’s quarterly reports on Form 10-Q and current reports on Form 8-K. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events. Readers are cautioned not to place undue reliance on these forward-looking statements.

Explanation of Certain Unaudited Non-GAAP Financial Measures

The measures entitled operating noninterest income, operating noninterest expense, operating net income, adjusted earnings per diluted share, operating return on average assets, operating return on average equity, tangible book value per common share, tangible equity to tangible assets, operating efficiency ratio, operating net noninterest expense to average assets and pre-provision net revenue are not measures recognized under U.S. generally accepted accounting principles (GAAP) and therefore are considered non-GAAP financial measures. The most comparable GAAP measures are noninterest income, noninterest expense, net income, diluted earnings per share, return on average assets, return on average equity, book value per common share, total equity to total assets, efficiency ratio, net noninterest expense to average assets and net interest income before provision for credit losses, respectively. Operating noninterest income excludes gain on sale of bank premises and loss on sales of securities. Operating noninterest expense excludes acquisition-related expenses and severance costs. Operating net income, operating return on average assets, operating return on average equity and operating efficiency ratio all exclude acquisition-related expenses, severance costs, gain on sale of bank premises and loss on sales of securities from net income, return on average assets, return on average equity and efficiency ratio, respectively. Operating net noninterest expense to average assets ratio excludes from net noninterest expense, severance costs, acquisition-related expenses, gain on sale of bank premises and loss on sales of securities. Acquisition-related expenses includes fees associated with acquisitions and vendor contract buyouts. Severance costs includes costs associated with termination and retirement of employees. Adjusted earnings per diluted share includes the adjustments to operating net income. Tangible book value per common share and tangible equity to tangible assets exclude goodwill and other intangibles from book value per common share and total equity to total assets, respectively. Pre-provision net revenue is calculated by adding noninterest income to net interest income before provision for credit losses, and subtracting noninterest expense.

Management uses these non-GAAP financial measures in its analysis of the Company's performance and believes these presentations provide useful supplemental information, and a clearer understanding of the Company's performance, and if not provided would be requested by the investor community. The Company believes the non-GAAP measures enhance investors' understanding of the Company's business and performance. These measures are also useful in understanding performance trends and facilitate comparisons with the performance of other financial institutions. The limitations associated with operating measures are the risk that persons might disagree as to the appropriateness of items comprising these measures and that different companies might calculate these measures differently.

These disclosures should not be considered an alternative to GAAP. The computations of operating noninterest income, operating noninterest expense, operating net income, adjusted earnings per diluted share, operating return on average assets, operating return on average equity, tangible book value per common share, tangible equity to tangible assets, operating efficiency ratio, operating net noninterest expense to average assets and pre-provision net revenue and the reconciliation of these measures to noninterest income, noninterest expense, net income, diluted earnings per share, return on average assets, return on average equity, book value per common share, total equity to total assets, efficiency ratio, net noninterest expense to average assets and net interest income before provision for credit losses are set forth in the table below.

Colony Bankcorp, Inc.

Reconciliation of Non-GAAP Measures

2025

2024

(dollars in thousands, except per share data)

First Quarter

Fourth Quarter

Third Quarter

Second Quarter

First Quarter

Operating noninterest income reconciliation

Noninterest income (GAAP)

$

9,044

$

10,309

$

10,082

$

9,497

$

9,487

Writedown of bank premises

197

Loss on sales of securities

401

454

425

555

Operating noninterest income

$

9,044

$

10,710

$

10,536

$

10,119

$

10,042

Operating noninterest expense reconciliation

Noninterest expense (GAAP)

$

20,221

$

21,272

$

20,835

$

20,330

$

20,397

Severance costs

(265

)

(23

)

Operating noninterest expense

$

20,221

$

21,272

$

20,570

$

20,330

$

20,374

Operating net income reconciliation

Net income (GAAP)

$

6,613

$

7,432

$

5,629

$

5,474

$

5,333

Severance costs

265

23

Writedown of bank premises

197

Loss on sales of securities

401

454

425

555

Income tax benefit

(77

)

(143

)

(129

)

(121

)

Operating net income

$

6,613

$

7,756

$

6,205

$

5,967

$

5,790

Weighted average diluted shares

17,509,059

17,531,808

17,587,902

17,551,007

17,560,210

Adjusted earnings per diluted share

$

0.38

$

0.44

$

0.35

$

0.34

$

0.33

Operating return on average assets reconciliation

Return on average assets (GAAP)

0.85

%

0.95

%

0.74

%

0.73

%

0.71

%

Severance costs

0.03

Writedown of bank premises

0.03

Loss on sales of securities

0.05

0.06

0.06

0.07

Tax effect of adjustment items

(0.01

)

(0.02

)

(0.02

)

(0.02

)

Operating return on average assets

0.85

%

0.99

%

0.81

%

0.80

%

0.76

%

Operating return on average equity reconciliation

Return on average equity (GAAP)

9.63

%

10.71

%

8.33

%

8.46

%

8.38

%

Severance costs

0.39

0.04

Writedown of bank premises

0.30

Loss on sales of securities

0.58

0.67

0.66

0.87

Tax effect of adjustment items

(0.11

)

(0.21

)

(0.20

)

(0.19

)

Operating return on average equity

9.63

%

11.18

%

9.18

%

9.22

%

9.10

%

Tangible book value per common share reconciliation

Book value per common share (GAAP)

$

16.41

$

15.91

$

15.73

$

15.09

$

14.80

Effect of goodwill and other intangibles

(2.95

)

(2.96

)

(2.97

)

(2.99

)

(3.01

)

Tangible book value per common share

$

13.46

$

12.95

$

12.76

$

12.10

$

11.79

Tangible equity to tangible assets reconciliation

Equity to assets (GAAP)

9.05

%

8.96

%

9.01

%

8.80

%

8.62

%

Effect of goodwill and other intangibles

(1.51

)

(1.54

)

(1.58

)

(1.62

)

(1.63

)

Tangible equity to tangible assets

7.54

%

7.42

%

7.43

%

7.18

%

6.99

%

Operating efficiency ratio calculation

Efficiency ratio (GAAP)

67.41

%

69.11

%

72.79

%

72.85

%

72.48

%

Severance costs

(0.93

)

(0.08

)

Writedown of bank premises

(0.71

)

Loss on sales of securities

(1.31

)

(1.59

)

(1.52

)

(1.97

)

Operating efficiency ratio

67.41

%

67.80

%

70.27

%

70.62

%

70.43

%

Operating net noninterest expense(1) to average assets calculation

Net noninterest expense to average assets

1.44

%

1.40

%

1.41

%

1.45

%

1.45

%

Severance costs

(0.03

)

Writedown of bank premises

(0.03

)

Loss on sales of securities

(0.05

)

(0.06

)

(0.06

)

(0.07

)

Operating net noninterest expense to average assets

1.44

%

1.35

%

1.32

%

1.36

%

1.38

%

Pre-provision net revenue

Net interest income before provision for credit losses

$

20,952

$

20,472

$

18,541

$

18,409

$

18,654

Noninterest income

9,044

10,309

10,082

9,497

9,487

Total income

29,996

30,781

28,623

27,906

28,141

Noninterest expense

20,221

21,272

20,835

20,330

20,397

Pre-provision net revenue

$

9,775

$

9,509

$

7,788

$

7,576

$

7,744

(1) Net noninterest expense is defined as noninterest expense less noninterest income.

Colony Bankcorp, Inc.

Selected Financial Information

2025

2024

(dollars in thousands, except per share data)

First Quarter

Fourth Quarter

Third Quarter

Second Quarter

First Quarter

EARNINGS SUMMARY

Net interest income

$

20,952

$

20,472

$

18,541

$

18,409

$

18,654

Provision for credit losses

1,500

650

750

650

1,000

Noninterest income

9,044

10,309

10,082

9,497

9,487

Noninterest expense

20,221

21,272

20,835

20,330

20,397

Income taxes

1,662

1,427

1,409

1,452

1,411

Net income

$

6,613

$

7,432

$

5,629

$

5,474

$

5,333

PERFORMANCE MEASURES

Per common share:

Common shares outstanding

17,481,709

17,519,884

17,554,884

17,538,611

17,558,611

Weighted average basic shares

17,509,059

17,531,808

17,587,902

17,551,007

17,560,210

Weighted average diluted shares

17,509,059

17,531,808

17,587,902

17,551,007

17,560,210

Earnings per basic share

$

0.38

$

0.42

$

0.32

$

0.31

$

0.30

Earnings per diluted share

0.38

0.42

0.32

0.31

0.30

Adjusted earnings per diluted share(b)

0.38

0.44

0.35

0.34

0.33

Cash dividends declared per share

0.1150

0.1125

0.1125

0.1125

0.1125

Common book value per share

16.41

15.91

15.73

15.09

14.80

Tangible book value per common share(b)

13.46

12.95

12.76

12.10

11.79

Pre-provision net revenue(b)

$

9,775

$

9,509

$

7,788

$

7,576

$

7,744

Performance ratios:

Net interest margin (a)

2.93

%

2.84

%

2.64

%

2.68

%

2.69

%

Return on average assets

0.85

0.95

0.74

0.73

0.71

Operating return on average assets (b)

0.85

0.99

0.81

0.80

0.76

Return on average total equity

9.63

10.71

8.33

8.46

8.38

Operating return on average total equity (b)

9.63

11.18

9.18

9.22

9.10

Total equity to total assets

9.05

8.96

9.01

8.80

8.62

Tangible equity to tangible assets (b)

7.54

7.42

7.43

7.18

6.99

Efficiency ratio

67.41

69.11

72.79

72.85

72.48

Operating efficiency ratio (b)

67.41

67.80

70.27

70.62

70.43

Net noninterest expense to average assets

1.44

1.40

1.41

1.45

1.45

Operating net noninterest expense to average assets(b)

1.44

1.35

1.32

1.36

1.38

ASSET QUALITY

Nonperforming portfolio loans

$

7,538

$

5,024

$

6,273

$

3,653

$

3,674

Nonperforming SBA government loans-guaranteed portion

3,647

4,293

4,514

2,309

2,148

Nonperforming SBA government loans-unguaranteed portion

1,271

1,343

1,428

707

609

Loans 90 days past due and still accruing

22

152

44

41

Total nonperforming loans (NPLs)

12,478

10,812

12,259

6,710

6,431

Other real estate owned

522

202

227

582

562

Repossessed assets

6

328

9

13

Total nonperforming assets (NPAs)

13,006

11,342

12,495

7,305

6,993

Classified loans

26,453

20,103

20,918

22,355

25,965

Criticized loans

55,823

49,387

52,062

44,850

55,065

Net loan charge-offs (recoveries)

606

1,534

139

667

664

Allowance for credit losses to total loans

1.04

%

1.03

%

1.04

%

1.01

%

1.00

%

Allowance for credit losses to total NPLs

160.26

175.55

160.40

280.27

290.11

Allowance for credit losses to total NPAs

153.75

167.34

157.37

257.44

266.80

Net charge-offs (recoveries) to average loans, net

0.13

0.33

0.03

0.14

0.14

NPLs to total loans

0.65

0.59

0.65

0.36

0.35

NPAs to total assets

0.41

0.36

0.41

0.24

0.23

NPAs to total loans and foreclosed assets

0.68

0.62

0.66

0.39

0.38

ACTUAL BALANCES

Total assets

$

3,171,825

$

3,109,782

$

3,065,103

$

3,007,907

$

3,015,509

Loans held for sale

24,844

39,786

27,760

40,132

31,102

Loans, net of unearned income

1,921,263

1,842,980

1,886,037

1,865,574

1,859,018

Deposits

2,622,531

2,567,943

2,524,970

2,460,225

2,522,748

Total stockholders’ equity

286,925

278,675

276,052

264,743

259,914

AVERAGE BALANCES

Total assets

$

3,149,321

$

3,108,762

$

3,038,947

$

3,010,486

$

3,036,093

Loans held for sale

23,253

35,299

34,533

33,024

24,612

Loans, net of unearned income

1,869,476

1,851,628

1,881,842

1,869,178

1,871,402

Deposits

2,606,706

2,568,824

2,504,101

2,492,479

2,543,259

Total stockholders’ equity

278,551

276,082

268,769

260,162

255,927

(a) Computed using fully taxable-equivalent net income.

(b) Non-GAAP measure - see “Explanation of Certain Unaudited Non-GAAP Financial Measures” for more information and reconciliation to GAAP.

Colony Bankcorp, Inc.

Average Balance Sheet and Net Interest Analysis

Three Months Ended March 31,

2025

2024

(dollars in thousands)

Average

Balances

Income/

Expense

Yields/

Rates

Average

Balances

Income/

Expense

Yields/

Rates

Assets

Interest-earning assets:

Loans held for sale

$

23,253

$

328

5.73

%

$

24,612

$

434

7.09

%

Loans, net of unearned income 1

1,869,476

27,716

6.01

%

1,871,402

26,711

5.74

%

Investment securities, taxable

710,293

4,837

2.76

%

737,257

5,042

2.75

%

Investment securities, tax-exempt 2

94,379

494

2.12

%

106,819

605

2.28

%

Deposits in banks and short term investments

229,016

2,322

4.11

%

71,431

693

3.90

%

Total interest-earning assets

2,926,417

35,697

4.95

%

2,811,521

33,485

4.79

%

Noninterest-earning assets

222,904

224,572

Total assets

$

3,149,321

$

3,036,093

Liabilities and stockholders' equity

Interest-bearing liabilities:

Interest-bearing demand and savings

$

1,549,509

$

6,468

1.69

%

$

1,451,490

$

6,408

1.78

%

Other time

601,920

5,305

3.57

%

612,241

5,683

3.73

%

Total interest-bearing deposits

2,151,429

11,773

2.22

%

2,063,731

12,091

2.36

%

Federal funds purchased

%

13

%

Federal Home Loan Bank advances

185,000

1,873

4.10

%

156,978

1,572

4.03

%

Other borrowings

63,048

927

5.97

%

63,086

993

6.33

%

Total other interest-bearing liabilities

248,048

2,800

4.58

%

220,077

2,565

4.69

%

Total interest-bearing liabilities

2,399,477

14,573

2.46

%

2,283,808

14,656

2.58

%

Noninterest-bearing liabilities:

Demand deposits

455,277

$

479,528

Other liabilities

16,016

16,830

Stockholders' equity

278,551

255,927

Total noninterest-bearing liabilities and stockholders' equity

749,844

752,285

Total liabilities and stockholders' equity

$

3,149,321

$

3,036,093

Interest rate spread

2.49

%

2.21

%

Net interest income

$

21,124

$

18,829

Net interest margin

2.93

%

2.69

%

1 The average balance of loans includes the average balance of nonaccrual loans. Income on such loans is recognized and recorded on the cash basis. Taxable-equivalent adjustments totaling $68,000 and $48,000 for the quarters ended March 31, 2025 and 2024, respectively, are calculated using the statutory federal tax rate and are included in income and fees on loans. Accretion income of $20,000 and expense of $5,000 for the quarters ended March 31, 2025 and 2024, respectively, are also included in income and fees on loans.

2Taxable-equivalent adjustments totaling $104,000 and $127,000 for the quarters ended March 31, 2025 and 2024, respectively, are calculated using the statutory federal tax rate and are included in tax-exempt interest on investment securities.

Colony Bankcorp, Inc.

Segment Reporting

2025

2024

(dollars in thousands)

First Quarter

Fourth Quarter

Third Quarter

Second Quarter

First Quarter

Banking Division

Net interest income

$

19,989

$

19,191

$

17,152

$

17,217

$

17,552

Provision for credit losses

1,221

309

698

96

455

Noninterest income

5,774

5,452

5,494

5,086

5,680

Noninterest expenses

16,790

17,616

17,075

17,135

17,129

Income taxes

1,551

927

1,017

1,060

1,166

Segment income

$

6,201

$

5,791

$

3,856

$

4,012

$

4,482

Total segment assets

$

3,065,385

$

2,985,856

$

2,955,145

$

2,889,013

$

2,910,102

Full time employees

366

376

375

385

377

Mortgage Banking Division

Net interest income

$

53

$

53

$

67

$

50

$

40

Provision for credit losses

Noninterest income

1,579

1,545

1,812

1,456

1,165

Noninterest expenses

1,601

1,699

1,533

1,326

1,218

Income taxes

10

(12

)

71

42

1

Segment income

$

21

$

(89

)

$

275

$

138

$

(14

)

Total segment assets

$

16,041

$

17,970

$

9,300

$

19,004

$

8,011

Variable noninterest expense(1)

$

880

$

764

$

1,005

$

807

$

603

Fixed noninterest expense

721

935

528

519

615

Full time employees

42

45

44

42

43

Small Business Specialty Lending Division

Net interest income

$

910

$

1,228

$

1,322

$

1,142

$

1,062

Provision for credit losses

279

341

52

554

545

Noninterest income

1,691

3,312

2,776

2,955

2,642

Noninterest expenses

1,830

1,957

2,227

1,869

2,050

Income taxes

101

512

321

350

244

Segment income

$

391

$

1,730

$

1,498

$

1,324

$

865

Total segment assets

$

90,399

$

105,956

$

100,658

$

99,890

$

97,396

Full time employees

35

34

33

33

31

Total Consolidated

Net interest income

$

20,952

$

20,472

$

18,541

$

18,409

$

18,654

Provision for credit losses

1,500

650

750

650

1,000

Noninterest income

9,044

10,309

10,082

9,497

9,487

Noninterest expenses

20,221

21,272

20,835

20,330

20,397

Income taxes

1,662

1,427

1,409

1,452

1,411

Segment income

$

6,613

$

7,432

$

5,629

$

5,474

$

5,333

Total segment assets

$

3,171,825

$

3,109,782

$

3,065,103

$

3,007,907

$

3,015,509

Full time employees

443

455

452

460

451

(1) Variable noninterest expense includes commission based salary expenses and volume based loan related fees.

Colony Bankcorp, Inc.

Consolidated Balance Sheets

March 31, 2025

December 31, 2024

(dollars in thousands)

(unaudited)

(audited)

ASSETS

Cash and due from banks

$

26,093

$

26,045

Interest-bearing deposits in banks and federal funds sold

195,112

204,989

Cash and cash equivalents

221,205

231,034

Investment securities available for sale, at fair value

380,705

366,049

Investment securities held to maturity, at amortized cost

421,894

430,077

Other investments

17,822

17,694

Loans held for sale

24,844

39,786

Loans, net of unearned income

1,921,263

1,842,980

Allowance for credit losses

(19,997

)

(18,980

)

Loans, net

1,901,266

1,824,000

Premises and equipment

36,433

37,831

Other real estate

522

202

Goodwill

48,923

48,923

Other intangible assets

2,702

2,975

Bank owned life insurance

58,382

57,970

Deferred income taxes, net

20,404

21,891

Other assets

36,723

31,350

Total assets

$

3,171,825

$

3,109,782

LIABILITIES AND STOCKHOLDERS’ EQUITY

Liabilities:

Deposits:

Noninterest-bearing

$

449,818

$

462,283

Interest-bearing

2,172,713

2,105,660

Total deposits

2,622,531

2,567,943

Federal Home Loan Bank advances

185,000

185,000

Other borrowed money

63,062

63,039

Accrued expenses and other liabilities

14,307

15,125

Total liabilities

2,884,900

2,831,107

Stockholders’ equity

Common stock, $1 par value; 50,000,000 shares authorized, 17,481,709 and 17,519,884 issued and outstanding, respectively

17,482

17,520

Paid in capital

167,876

168,353

Retained earnings

144,967

140,369

Accumulated other comprehensive loss, net of tax

(43,400

)

(47,567

)

Total stockholders’ equity

286,925

278,675

Total liabilities and stockholders’ equity

$

3,171,825

$

3,109,782

Colony Bankcorp, Inc.

Consolidated Statements of Income (unaudited)

Three months ended March 31,

2025

2024

(dollars in thousands, except per share data)

Interest income:

Loans, including fees

$

27,976

$

27,097

Investment securities

5,227

5,520

Deposits in banks and short term investments

2,322

693

Total interest income

35,525

33,310

Interest expense:

Deposits

11,773

12,091

Federal funds purchased

Federal Home Loan Bank advances

1,873

1,572

Other borrowings

927

993

Total interest expense

14,573

14,656

Net interest income

20,952

18,654

Provision for credit losses

1,500

1,000

Net interest income after provision for credit losses

19,452

17,654

Noninterest income:

Service charges on deposits

2,172

2,373

Mortgage fee income

1,579

1,249

Gain on sales of SBA loans

1,035

2,046

Loss on sales of securities

(555

)

Interchange fees

1,938

2,028

BOLI income

396

533

Insurance commissions

469

465

Other

1,455

1,348

Total noninterest income

9,044

9,487

Noninterest expense:

Salaries and employee benefits

11,905

12,018

Occupancy and equipment

1,580

1,507

Information technology expenses

2,477

2,110

Professional fees

748

834

Advertising and public relations

805

960

Communications

205

226

Other

2,501

2,742

Total noninterest expense

20,221

20,397

Income before income taxes

8,275

6,744

Income taxes

1,662

1,411

Net income

$

6,613

$

5,333

Earnings per common share:

Basic

$

0.38

$

0.30

Diluted

0.38

0.30

Dividends declared per share

0.1150

0.1125

Weighted average common shares outstanding:

Basic

17,509,059

17,560,210

Diluted

17,509,059

17,560,210

Colony Bankcorp, Inc.

Quarterly Consolidated Statements of Income

2025

2024

First Quarter

Fourth Quarter

Third Quarter

Second Quarter

First Quarter

(dollars in thousands, except per share data)

(unaudited)

(unaudited)

(unaudited)

(unaudited)

(unaudited)

Interest income:

Loans, including fees

$

27,976

$

28,473

$

28,501

$

27,604

$

27,097

Investment securities

5,227

5,158

5,248

5,048

5,520

Deposits in banks and short term investments

2,322

2,360

855

684

693

Total interest income

35,525

35,991

34,604

33,336

33,310

Interest expense:

Deposits

11,773

12,656

13,154

12,106

12,091

Federal funds purchased

Federal Home Loan Bank advances

1,873

1,905

1,913

1,821

1,572

Other borrowings

927

958

996

1,000

993

Total interest expense

14,573

15,519

16,063

14,927

14,656

Net interest income

20,952

20,472

18,541

18,409

18,654

Provision for credit losses

1,500

650

750

650

1,000

Net interest income after provision for credit losses

19,452

19,822

17,791

17,759

17,654

Noninterest income:

Service charges on deposits

2,172

2,302

2,401

2,288

2,373

Mortgage fee income

1,579

1,545

1,812

1,442

1,249

Gain on sales of SBA loans

1,035

2,622

2,227

2,347

2,046

Loss on sales of securities

(401

)

(454

)

(425

)

(555

)

Interchange fees

1,938

2,030

2,163

2,078

2,028

BOLI income

396

412

383

398

533

Insurance commissions

469

471

433

420

465

Other

1,455

1,328

1,117

949

1,348

Total noninterest income

9,044

10,309

10,082

9,497

9,487

Noninterest expense:

Salaries and employee benefits

11,905

12,877

12,594

12,277

12,018

Occupancy and equipment

1,580

1,645

1,523

1,475

1,507

Information technology expenses

2,477

2,491

2,150

2,227

2,110

Professional fees

748

539

748

704

834

Advertising and public relations

805

1,118

965

967

960

Communications

205

213

210

216

226

Other

2,501

2,389

2,645

2,464

2,742

Total noninterest expense

20,221

21,272

20,835

20,330

20,397

Income before income taxes

8,275

8,859

7,038

6,926

6,744

Income taxes

1,662

1,427

1,409

1,452

1,411

Net income

$

6,613

$

7,432

$

5,629

$

5,474

$

5,333

Earnings per common share:

Basic

$

0.38

$

0.42

$

0.32

$

0.31

$

0.30

Diluted

0.38

0.42

0.32

0.31

0.30

Dividends declared per share

0.1150

0.1125

0.1125

0.1125

0.1125

Weighted average common shares outstanding:

Basic

17,509,059

17,531,808

17,587,902

17,551,007

17,560,210

Diluted

17,509,059

17,531,808

17,587,902

17,551,007

17,560,210

Colony Bankcorp, Inc.

Quarterly Deposits Composition Comparison

2025

2024

(dollars in thousands)

First Quarter

Fourth Quarter

Third Quarter

Second Quarter

First Quarter

Noninterest-bearing demand

$

449,818

$

462,283

$

439,892

$

437,623

$

476,413

Interest-bearing demand

873,156

813,783

769,123

788,674

802,596

Savings

689,446

687,603

684,371

670,848

650,188

Time over $250,000

189,466

185,176

198,942

168,856

173,386

Other time

420,645

419,098

432,642

394,224

420,165

Total

$

2,622,531

$

2,567,943

$

2,524,970

$

2,460,225

$

2,522,748

Colony Bankcorp, Inc.

Quarterly Deposits by Location Comparison

2025

2024

(dollars in thousands)

First Quarter

Fourth Quarter

Third Quarter

Second Quarter

First Quarter

Coastal Georgia

$

142,230

$

145,828

$

142,580

$

144,021

$

138,103

Middle Georgia

283,149

279,360

269,144

275,758

286,697

Atlanta and North Georgia

333,845

318,927

321,808

336,338

333,856

South Georgia

1,249,192

1,217,433

1,165,529

1,110,049

1,132,701

West Georgia

335,438

337,818

357,450

365,380

378,764

Brokered deposits

59,499

59,499

70,999

39,240

59,019

Reciprocal deposits

219,178

209,078

197,460

189,439

193,608

Total

$

2,622,531

$

2,567,943

$

2,524,970

$

2,460,225

$

2,522,748

Colony Bankcorp, Inc.

Quarterly Loan Comparison

2025

2024

(dollars in thousands)

First Quarter

Fourth Quarter

Third Quarter

Second Quarter

First Quarter

Core

$

1,808,879

$

1,720,444

$

1,759,600

$

1,732,843

$

1,718,284

Purchased

112,384

122,536

126,437

132,731

140,734

Loans, net of unearned income

$

1,921,263

$

1,842,980

$

1,886,037

$

1,865,574

$

1,859,018

Colony Bankcorp, Inc.

Quarterly Loans by Composition Comparison

2025

2024

(dollars in thousands)

First Quarter

Fourth Quarter

Third Quarter

Second Quarter

First Quarter

Construction, land & land development

$

208,872

$

205,046

$

196,390

$

199,916

$

234,000

Other commercial real estate

1,052,967

990,648

1,012,466

985,102

971,205

Total commercial real estate

1,261,839

1,195,694

1,208,856

1,185,018

1,205,205

Residential real estate

345,521

344,167

349,777

360,847

347,277

Commercial, financial & agricultural

213,355

213,910

242,389

242,205

239,837

Consumer and other

100,548

89,209

85,015

77,504

66,699

Loans, net of unearned income

$

1,921,263

$

1,842,980

$

1,886,037

$

1,865,574

$

1,859,018

Colony Bankcorp, Inc.

Quarterly Loans by Location Comparison

2025

2024

(dollars in thousands)

First Quarter

Fourth Quarter

Third Quarter

Second Quarter

First Quarter

Alabama

$

52,183

$

45,365

$

46,630

$

44,575

$

44,806

Florida

19,490

13,135

12,280

2,753

1,579

Augusta

91,758

76,492

59,557

64,465

71,483

Coastal Georgia

230,242

224,609

220,452

228,844

232,557

Middle Georgia

130,302

121,059

120,843

124,268

121,131

Atlanta and North Georgia

441,323

427,046

432,377

427,568

425,753

South Georgia

398,295

384,907

427,887

413,098

409,681

West Georgia

168,851

169,699

184,634

184,365

183,679

Small Business Specialty Lending

79,517

81,636

79,967

75,182

71,196

Consumer Portfolio Mortgages

251,816

250,555

253,481

257,772

261,204

Marine/RV Lending

55,033

46,941

45,785

41,922

35,017

Other

2,453

1,536

2,144

762

932

Loans, net of unearned income

$

1,921,263

$

1,842,980

$

1,886,037

$

1,865,574

$

1,859,018

Colony Bankcorp, Inc.

Classified Loans

2025

2024

(dollars in thousands)

First Quarter

Fourth Quarter

Third Quarter

Second Quarter

First Quarter

$

#

$

#

$

#

$

#

$

#

Construction, land & land development

$

126

4

$

$

$

54

3

$

572

11

Other commercial real estate

18,578

51

13,367

38

13,338

36

13,990

34

13,918

46

Residential real estate

1,670

76

1,265

83

1,554

85

2,168

104

5,896

183

Commercial, financial & agricultural

6,077

58

5,407

70

6,005

61

6,075

54

5,487

70

Consumer and other

2

25

64

22

21

23

68

24

92

67

TOTAL

$

26,453

214

$

20,103

213

$

20,918

205

$

22,355

219

$

25,965

377

Classified loans to total loans

1.38

%

1.09

%

1.11

%

1.20

%

1.40

%

Colony Bankcorp, Inc.

Criticized Loans

2025

2024

(dollars in thousands)

First Quarter

Fourth Quarter

Third Quarter

Second Quarter

First Quarter

$

#

$

#

$

#

$

#

$

#

Construction, land & land development

$

4,028

11

$

2,865

9

$

4,418

9

$

626

6

$

1,543

18

Other commercial real estate

28,869

70

32,077

65

32,790

64

31,544

59

31,498

46

Residential real estate

8,289

83

5,504

89

5,389

90

5,431

107

13,050

249

Commercial, financial & agricultural

14,501

82

8,877

76

9,444

68

7,181

59

8,609

114

Consumer and other

136

26

64

22

21

23

68

24

365

85

TOTAL

$

55,823

272

$

49,387

261

$

52,062

254

$

44,850

255

$

55,065

512

Criticized loans to total loans

2.91

%

2.68

%

2.76

%

2.40

%

2.96

%

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