FITZGERALD, Ga.--(BUSINESS WIRE)--Colony Bankcorp, Inc. (NYSE: CBAN) ("Colony†or the "Company†) announced today that the Company's ratings were affirmed by the Kroll Bond Rating Agency (KBRA) in its press release dated March 24, 2026. KBRA affirmed the senior unsecured debt rating of BBB, the subordinated debt rating of BBB-, and the short-term debt rating of K3 for the Company. KBRA also affirmed the ratings of Colony Bank, including a BBB+ rating for deposits and senior unsecured debt, a BBB. ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from _____________to ______________ Commission File Number 001-42397 (229) 426-6000 Registrant's Telephone Number, Including Area Code Securities Registered Pursuant to Section 12 ...

Core Insights - The company reported an increase in operating net income by $675,000 compared to the third quarter, attributed to improved net interest margins and strong non-interest income [1] - The company achieved a 1% operating return on assets (ROA) for the fiscal year 2025 and aims for a 1.20% ROA in 2026 [6][7] Financial Performance - Net interest income rose by approximately $3.2 million quarter-over-quarter, with net interest margin widening by 15 basis points to 3.32% [6][7] - Core loan growth for 2025 was strong at 10.5% excluding TC Federal, although competition is expected to push growth closer to the lower end of the target range of 8% to 12% [5][9] Acquisition and Integration - The legal close of the TC Federal acquisition occurred in December, with systems conversion expected in Q1 2026 and most cost savings anticipated to be realized starting in Q2 2026 [4][6] - The company now projects earnback from the acquisition in less than 2.5 years, with tangible book value dilution being less than initially expected [3][6] Credit Quality and Trends - Provision expense for the quarter was $1.65 million, up from $900,000 in the prior quarter, while net charge-offs were $1.6 million, slightly lower than the previous quarter [11] - Classified and criticized loans increased, primarily due to the TC Federal acquisition, with non-performing loans also rising [12] Non-Interest Income and Business Lines - Operating non-interest income was $11.1 million, reflecting strong performance in complementary business lines, particularly mortgage and SBSL [13] - The company expects to sell an additional $30 million of portfolio mortgage loans in Q1 2026, citing improving market conditions [13] Funding and Expenses - Deposits increased by approximately $24.3 million in Q4, with a focus on building a deposit-first relationship banking culture [16] - Operating non-interest expenses were $24.4 million, primarily due to the TC Federal acquisition, with expectations for expenses to decrease post-systems conversion [17] Capital Actions and M&A Outlook - The board declared a quarterly dividend of $0.12 per share, marking consecutive years of dividend growth, and share repurchases totaled $47,000 [18] - The company is actively pursuing additional M&A opportunities, focusing on Georgia and contiguous states, with a preference for negotiated transactions [19]

Financial Data and Key Metrics Changes - The company reported an increase in operating net income of $675,000 compared to the third quarter, driven by strong operating performance and the completion of the TC Federal acquisition [3][15] - Operating return on assets (ROA) achieved 1% for the fiscal year 2025, with a target of reaching 1.20% in 2026 [4][15] - Net interest margin increased by 15 basis points to 3.32% in the fourth quarter, with net interest income rising approximately $3.2 million compared to the prior quarter [15][16] Business Line Data and Key Metrics Changes - Core loan growth for 2025 was 10.5%, with expectations for 2026 to be closer to the lower end of the 8%-12% target due to increased competition [5][23] - Non-interest income for the fourth quarter was $11.1 million, reflecting strong performance in mortgage and SBSL lines [17] - Operating non-interest expenses increased to $24.4 million, primarily due to the TC Federal acquisition [19] Market Data and Key Metrics Changes - Deposits increased for the quarter, with organic growth being flat year-over-year, excluding the TC Federal acquisition [7][24] - The company is focused on building a deposit-first culture, with a strategy to grow core customer relationships [7][24] - The Southeast regional economy remains strong, contributing to competitive pricing in the market [44] Company Strategy and Development Direction - The company is actively pursuing M&A opportunities, with plans to announce another transaction in 2026 [14] - The transition to a dual-employee model for financial advisors is expected to enhance income opportunities and improve earnings power [11] - The company aims to maintain disciplined expense management while executing strategic initiatives to improve operating efficiency [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing strong operating performance and the successful integration of TC Federal [3][14] - The competitive landscape is becoming more challenging, but the company is focused on maintaining margin improvement while pursuing growth [44][48] - Management expects to see improvements in non-interest income and deposit growth as rates stabilize [7][52] Other Important Information - The board declared an increase in the quarterly dividend to $0.12 per share, marking another consecutive year of dividend increases [12] - The company was recognized as one of American Banker's Best Banks to Work For in 2025, reflecting its commitment to culture and team members [13] Q&A Session Summary Question: Insights on small business lending and charge-offs - Management acknowledged that small business lending is high-risk but can yield better returns, with expectations for improvement in the coming years [31][32] Question: M&A competition and strategy - Management hopes for negotiated transactions rather than competitive bids, focusing on partnerships that align with their strategic goals [34][36] Question: Organic growth and competitive environment - Management noted that while organic growth may slip towards the lower end of guidance, they are focused on maintaining margin improvement despite increased competition [44][46] Question: Deposit growth and funding loan growth - Management is optimistic about organic deposit growth, emphasizing a focus on non-interest-bearing accounts and relationship building [52][53] Question: Geographic expansion and target size for M&A - Management is open to expanding into contiguous states and is prepared to pursue larger transactions, although smaller deals may be more frequent due to market conditions [58][60]

Financial Data and Key Metrics Changes - The company reported a net income increase of $675,000 in the fourth quarter, driven by the TC Federal acquisition and improved margins [3][15] - Operating pre-provision net revenue improved significantly compared to the fourth quarter of 2024 [15] - Net interest income increased by approximately $3.2 million compared to the prior quarter, with net interest margin rising 15 basis points to 3.32% [15][16] - The tangible common equity (TCE) ratio at the end of the quarter was 8.30%, up from 8% in the prior quarter [25] Business Line Data and Key Metrics Changes - Core loan growth for 2025 was reported at 10.5%, with expectations for 2026 to be closer to the lower end of the 8%-12% target [5][23] - Operating non-interest income for the fourth quarter was $11.1 million, reflecting strong performance in mortgage and SBSL [17] - The company executed a portfolio mortgage pool sale of around $10 million, generating a gain of over $100,000 [7] Market Data and Key Metrics Changes - Deposits increased for the quarter and were organically flat year-over-year, excluding the TC Federal acquisition [6][24] - The company noted increased competition in lending across its footprint, impacting loan growth expectations [5][36] Company Strategy and Development Direction - The company is focused on integrating the TC Federal acquisition and expects to realize cost savings post-systems conversion in the second quarter of 2026 [8][26] - There is an ongoing strategy to enhance performance through disciplined execution and improvement, with a focus on M&A opportunities [12][13] - The company aims to maintain a disciplined approach to pricing and credit while growing core customer relationships [5] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the economic environment in the Southeast and the potential for M&A activity to drive growth [39][48] - The company anticipates a modest increase in net interest margin throughout 2026, supported by loan repricing and deposit growth [24][45] - Management acknowledged the competitive landscape and the need to balance growth with margin improvement [36][40] Other Important Information - The board declared an increase in the quarterly dividend to $0.12 per share, marking another consecutive year of dividend increases [11] - The company was recognized as one of American Banker's 2025 Best Banks to Work For, highlighting its commitment to culture and team members [12] Q&A Session Summary Question: Concerns about small business lending and charge-offs - Management acknowledged that small business lending is high-risk but can offer better returns, and they expect it to improve from current levels [28][29] Question: M&A competition and strategy - Management hopes for negotiated transactions rather than competitive bidding, focusing on partnerships that align with their goals [31][33] Question: Organic growth and competitive environment - Management noted increased competition but emphasized a disciplined approach to pricing and maintaining margins [36][38] Question: Deposit growth and funding loan growth - Management is optimistic about organic deposit growth and plans to leverage non-interest-bearing accounts to fund loans [42][44] Question: Future M&A targets and geographic expansion - Management is open to pursuing larger targets and expanding into contiguous states, while also considering the competitive landscape [46][48] Question: Effective tax rate and expense management - Management expects the effective tax rate to remain around 21% and aims to reduce net operating expenses to historical averages later in the year [50]

CAUTIONARY STATEMENTS This presentation contains "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 Colony Bankcorp, Inc.'s (the "Company" or "Colony") future filings with the Securities and Exchange Commission (the "SEC"), in press releases, and in oral and written statements made by or with the app ...

For additional information, contact: Derek Shelnutt EVP & Chief Financial Officer 229-426-6000, extension 6119 COLONY BANKCORP REPORTS FOURTH QUARTER 2025 RESULTS INCREASES QUARTERLY CASH DIVIDEND TO $0.12 PER SHARE FITZGERALD, GA. (January 28, 2026) – Colony Bankcorp, Inc. (NYSE: CBAN) ("Colony" or the "Company") today reported financial results for the fourth quarter of 2025. Financial highlights are shown below. Financial Highlights: The Company also announced that on January 28, 2026, the Board of Direc ...

Core Viewpoint - Colony Bankcorp, Inc. is set to release its fourth quarter 2025 financial results on January 28, 2026, after market close, indicating a scheduled timeline for financial disclosures [1] Financial Results Announcement - The financial results will be announced on January 28, 2026, after the stock market closes [1] - A live conference call is scheduled for January 29, 2026, at 9:00 AM ET to discuss the results [1] - Participants can access the conference call by dialing 1-800-549-8228 and using Conference ID: 10460, with a recommendation to join 15 minutes early [1]

Core Insights - Colony Bankcorp is identified as a superior stock compared to Bay Banks of Virginia based on various financial metrics and analyst recommendations [1] Profitability - Colony Bankcorp has a net margin of 13.51%, return on equity of 9.64%, and return on assets of 0.85% [2] Valuation and Earnings - Colony Bankcorp's gross revenue is $126.05 million with a price/sales ratio of 2.53, and net income of $23.87 million, resulting in earnings per share (EPS) of $1.59 and a price/earnings ratio of 11.51 - In contrast, Bay Banks of Virginia has a gross revenue of $55.38 million and net income of $7.06 million, but lacks available EPS and price/earnings ratio data [4] Analyst Recommendations - Colony Bankcorp has a consensus price target of $21.00, indicating a potential upside of 14.75%, with one buy rating and a rating score of 3.00 - Bay Banks of Virginia has no buy, hold, or sell ratings, resulting in a rating score of 0.00 [6] Institutional & Insider Ownership - 50.4% of Colony Bankcorp shares are owned by institutional investors, while 6.6% are owned by company insiders - In comparison, 7.6% of Bay Banks of Virginia shares are owned by company insiders [7] Summary - Colony Bankcorp outperforms Bay Banks of Virginia in 10 out of 11 financial factors compared [8]

Merger and Acquisition - The Company announced a proposed merger with TC Bancshares, Inc. valued at approximately $86.1 million, expected to create a combined organization with total assets of approximately $3.8 billion[220]. - Upon completion of the merger, the combined entity is projected to have total loans of $2.4 billion and total deposits of $3.1 billion[222]. - Each TCBC shareholder can elect to receive either $21.25 in cash or 1.25 shares of the Company's common stock for each share of TCBC common stock, with approximately 20% of shares converted to cash and 80% to stock[223]. - The merger is anticipated to be immediately accretive to the Company's earnings per share, excluding transaction costs[222]. - The transaction is subject to customary conditions, including regulatory approval and shareholder approval, with closing expected in the fourth quarter of 2025[222]. Financial Performance - Net income for the third quarter of 2025 was $5.8 million, or $0.33 per diluted share, compared to $5.6 million, or $0.32 per diluted share for the same period in 2024, representing a year-over-year increase of 3.57% in net income[237]. - Net interest income on a tax equivalent basis increased to $22.9 million for the third quarter of 2025, up from $18.7 million in the third quarter of 2024, marking a 22.45% increase[226]. - The net interest margin improved to 3.17% for the third quarter of 2025, compared to 2.64% for the same period in 2024, reflecting better loan rates and lower deposit costs[240]. - Noninterest income for the third quarter of 2025 was $10.1 million, a slight increase of 0.09% from the same period in 2024[228]. - For the nine months ended September 30, 2025, net interest income was $66,600, an increase from $56,114 in the same period of 2024[245]. Credit Risk and Allowance - The Company is focused on managing credit risk and maintaining adequate reserves for credit losses, which are critical for financial stability[217]. - Provision for credit losses for the three months ended September 30, 2025, was $900,000, compared to $750,000 for the same period in 2024, indicating a rise in credit loss provisions[227]. - The allowance for credit losses on loans was $18.1 million, or 0.89% of total loans, as of September 30, 2025, down from $19.0 million, or 1.03% of total loans, at December 31, 2024[227]. - Nonaccrual loans increased to $14.3 million at September 30, 2025, a rise of $3.6 million or 33.8% from $10.7 million at December 31, 2024[292]. - The allowance for credit losses on loans decreased to $18.1 million at September 30, 2025, down from $19.7 million at September 30, 2024, representing an 8.0% decline[283]. Deposits and Liquidity - The Company's uninsured deposits represented 31.52% of total bank deposits at September 30, 2025, down from 33.03% at December 31, 2024[236]. - The Company maintained strong liquidity with available funding sources of approximately $1.3 billion as of September 30, 2025[236]. - Total deposits rose by $16.4 million to $2.58 billion at September 30, 2025, compared to $2.57 billion at December 31, 2024[297]. - Brokered deposits increased significantly to $130.0 million at September 30, 2025, up from $59.5 million at December 31, 2024[298]. - Cash and cash equivalents decreased to $200.0 million at September 30, 2025, from $231.0 million at December 31, 2024, primarily due to increases in loans[306]. Capital Ratios - CET1 risk-based capital ratio was 12.37% as of September 30, 2025, down from 13.08% at December 31, 2024[313]. - Total risk-based capital ratio decreased to 16.00% at September 30, 2025, from 17.10% at December 31, 2024[313]. - The Company exceeded all regulatory capital requirements and was considered "well-capitalized" as of September 30, 2025[311]. Economic and Competitive Environment - The Company faces risks from economic conditions, including inflation, interest rate changes, and potential economic downturns that could impact financial performance[216]. - The Company emphasizes the importance of attracting and retaining experienced bankers to support its operations and growth strategies[218]. - The Company is navigating challenges related to competition from fintech companies and other financial institutions, which may affect market positioning[218]. Noninterest Expenses - Noninterest expense for the third quarter of 2025 was $24.6 million, an increase of 18.13% from the same period in 2024, driven by higher salaries, employee benefits, and technology expenses[230]. - Total noninterest expense for the three months ended September 30, 2025, was $24,612 thousand, an increase of 18.1% from $20,835 thousand in 2024[261]. - Salaries and employee benefits increased by 7.4% for the three months ended September 30, 2025, totaling $13,532 thousand compared to $12,594 thousand in 2024[261]. Interest Rate Sensitivity - A 200 basis point increase in interest rates would result in a 6.93% increase in net interest income as of September 30, 2025[317].