Colony Bankcorp Reports Second Quarter 2025 Results

Declares Quarterly Cash Dividend of $0.1150 Per Share

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

Financial Highlights:

• Net income increased to $8.0 million, or $0.46 per diluted share, for the second quarter of 2025, compared to $6.6 million, or $0.38 per diluted share, for the first quarter of 2025, and $5.5 million, or $0.31 per diluted share, for the second quarter of 2024.
• Operating net income was $8.0 million, or $0.46 of adjusted earnings per diluted share, for the second quarter of 2025, compared to $6.6 million, or $0.38 of adjusted earnings per diluted share, for the first quarter of 2025, and $6.0 million, or $0.34 of adjusted earnings per diluted share, for the second quarter of 2024. (See Reconciliation of Non-GAAP Measures).
• Provision for credit losses of $450,000 was recorded in the second quarter of 2025 compared to $1.5 million in the first quarter of 2025, and $650,000 in the second quarter of 2024.
• Total loans, excluding loans held for sale, were $1.99 billion at June 30, 2025, an increase of $72.3 million, or 3.76%, from the prior quarter.
• Total deposits were $2.56 billion and $2.62 billion at June 30, 2025 and March 31, 2025, respectively, a decrease of $66.3 million.
• Mortgage production was $94.9 million, and mortgage sales totaled $65.3 million in the second quarter of 2025 compared to $72.0 million and $55.9 million, respectively, for the first quarter of 2025.
• Small Business Specialty Lending ("SBSL") closed $15.8 million in Small Business Administration ("SBA") loans and sold $17.9 million in SBA loans in the second quarter of 2025 compared to $15.4 million and $12.1 million, respectively, for the first quarter of 2025.

The Company also announced that on July 22, 2025, the Board of Directors declared a quarterly cash dividend of $0.1150 per share, to be paid on its common stock on August 20, 2025, to shareholders of record as of the close of business on August 6, 2025. The Company had 17,461,032 shares of its common stock outstanding as of July 21, 2025.

"We are very pleased with our second-quarter results reflecting continued strength in core earnings and disciplined execution across the organization. Net interest margin expanded meaningfully, supported by a well-positioned balance sheet and stable funding costs, while return on assets improved as we maintained strong operating leverage. Additionally, our sustained loan growth demonstrates healthy demand across our markets," said Heath Fountain, Chief Executive Officer.

"Credit quality remains solid, with improvements in several key metrics, underscoring the resilience of our portfolio and prudent underwriting. We remain focused on driving long-term value through consistent, high-quality growth."

"In addition to our strong financial performance, we're also excited to announce our strategic acquisition of TC Bancshares, Inc., detailed in a separate release issued today. This combination represents a compelling opportunity to further strengthen our franchise, expand our reach in key markets, and enhance long-term value for our shareholders."

Balance Sheet

• Total assets were $3.12 billion at June 30, 2025, a decrease of $56.2 million from March 31, 2025.
• Total loans, excluding loans held for sale, were $1.99 billion at June 30, 2025, an increase of $72.3 million from the quarter ended March 31, 2025.
• Total deposits were $2.56 billion and $2.62 billion at June 30, 2025 and March 31, 2025, respectively, a decrease of $66.3 million. Decreases were seen in interest bearing demand deposits of $34.6 million and savings and money market deposits of $22.3 million, partially offset by an increase in time deposits of $5.7 million, from March 31, 2025 to June 30, 2025. Total deposits increased $96.0 million from the period ended June 30, 2024, with increases seen in interest bearing demand deposits of $49.9 million and time deposits of $52.7 million, partially offset by a decrease in savings and money market deposits of $3.7 million.
• Total borrowings at June 30, 2025 totaled $248.1 million, an increase of $24,000 compared to March 31, 2025, 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 62,017 shares of Company common stock were repurchased during the second quarter of 2025 at an average price of $15.46 per share and a total value of $959,092.
• Preliminary tier one leverage ratio, tier one capital ratio, total risk-based capital ratio and common equity tier one capital ratio were 9.61%, 13.42%, 16.06%, and 12.34%, respectively, at June 30, 2025.

Second Quarter 2025 Results of Operations

• Net interest income, on a tax-equivalent basis, totaled $22.6 million for the second quarter ended June 30, 2025 compared to $18.6 million for the same period in 2024. Net interest income, on a tax-equivalent basis, for the six months ended June 30, 2025 totaled $43.7 million, compared to $37.4 million for the six months ended June 30, 2024. For both periods, increases occurred in income on interest earning assets while expenses on interest bearing liabilities decreased slightly. Income on interest earning assets increased $3.5 million, to $37.0 million for the second quarter of 2025 compared to the respective period in 2024. Expense on interest bearing liabilities decreased $477,000, to $14.4 million for the second quarter of 2025 compared to the respective period in 2024. Income on interest earning assets increased $5.7 million to $72.7 million for the six month period ended June 30, 2025 compared to the respective period in 2024. Expense on interest bearing liabilities decreased $559,000, to $29.0 million for the six month period ended June 30, 2025 compared to the respective period in 2024.
• Net interest margin for the second quarter of 2025 was 3.12% compared to 2.68% for the second quarter of 2024. Net interest margin was 3.02% for the six months ended June 30, 2025 compared to 2.69% for the six months ended June 30, 2024. The increase for both periods was primarily related to increases in interest earning assets period over period, partially offset by the rate decreases in interest bearing liabilities.
• Noninterest income totaled $10.1 million for the second quarter ended June 30, 2025, an increase of $601,000, or 6.33%, compared to the same period in 2024. Noninterest income totaled $19.1 million for the six months ended June 30, 2025, an increase of $158,000, or 0.83%, compared to the same period in 2024. These increases were primarily related to increases in mortgage fee income, insurance commissions and decreases on losses on the sales of investment securities partially offset by decreases in service charges on deposit accounts and gains on sales of SBA loans.
• Noninterest expense totaled $22.0 million for the second quarter ended June 30, 2025, compared to $20.3 million for the same period in 2024. Noninterest expense totaled $42.2 million for the six months ended June 30, 2025, compared to $40.7 million for the same period in 2024. These increases were a result of increases in salaries and employee benefits, occupancy and equipment, information technology expenses along with the valuation on SBSL servicing assets partially offset by decreases in advertising and public relations and communications expense.

Asset Quality

• Nonperforming assets totaled $11.4 million and $13.0 million at June 30, 2025 and March 31, 2025, respectively, a decrease of $1.6 million.
• Other real estate owned and repossessed assets totaled $731,000 at June 30, 2025 and $528,000 at March 31, 2025.
• Net loans charged-off were $1.0 million, or 0.21% of average loans for the second quarter of 2025, compared to $606,000, or 0.13% for the first quarter of 2025.
• The credit loss reserve was $19.2 million, or 0.96% of total loans, at June 30, 2025, compared to $20.0 million, or 1.04% of total loans at March 31, 2025.

Earnings call information

The Company will host an earnings conference call at 9:00 a.m. ET on Thursday, July 24, 2025, to discuss the recent results and answer relevant questions. The conference call can be accessed by dialing 1-800-549-8228 and using the Conference ID: 22154. A replay of the call will be available until Thursday, July 31, 2025. To listen to the replay, dial 1-888-660-6264 and entering the passcode 22154#.

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 Securities and Exchange Commission (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 or pending 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.

Additional Information About the Proposed Merger and Where to Find It

This document does not constitute an offer to sell or the solicitation of an offer to buy any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. In connection with the proposed merger, the Company will file with the SEC a registration statement on Form S-4 that will include a joint proxy statement of TC Bancshares, Inc. ("TC Bancshares") and the Company and a prospectus of the Company, as well as other relevant documents concerning the proposed transaction. WE URGE INVESTORS AND SECURITY HOLDERS TO READ THE REGISTRATION STATEMENT ON FORM S-4, THE JOINT PROXY STATEMENT/PROSPECTUS INCLUDED WITHIN THE REGISTRATION STATEMENT ON FORM S-4 AND ANY OTHER RELEVANT DOCUMENTS TO BE FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED MERGER BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE COMPANY, TC BANCSHARES AND THE PROPOSED MERGER. The joint proxy statement/prospectus will be sent to the shareholders of TC Bancshares seeking the required shareholder approval. Investors and security holders will be able to obtain free copies of the registration statement on Form S-4 and the related joint proxy statement/prospectus, when filed, as well as other documents filed with the SEC by the Company through the web site maintained by the SEC at www.sec.gov. Documents filed with the SEC by the Company will also be available free of charge by directing a written request to Colony Bankcorp, Inc., 115 South Grant Street, Fitzgerald, Georgia 31750, Attn: Derek Shelnutt and on the Company's website, colony.bank, under Investor Relations. The Company's telephone number is (229) 426-6000.

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.