UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 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 COLONY BANKCORP, INC. (Exact Name of Registrant as Specified in Its Charter) Georgia 58-1492391 (State or Other ...

NEW YORK, July 24, 2025 /PRNewswire/ -- Halper Sadeh LLC, an investor rights law firm, is investigating the following companies for potential violations of the federal securities laws and/or breaches of fiduciary duties to shareholders relating to:City Office REIT, Inc. (NYSE: CIO)'s sale to MCME Carell Holdings, LP and MCME Carell Holdings, LLC for $7.00 per share in cash. If you are a City Office shareholder, click here to learn more about your legal rights and options.Colony Bankcorp, Inc. (NYSE: CBAN)'s ...

Financial Data and Key Metrics Changes - Core earnings improved significantly in Q2 2025, supported by loan growth and operational efficiency [4] - Return on assets (ROA) for the quarter was 1.02%, an improvement from the previous quarter, achieving the short-term target earlier than projected [6] - Net interest margin increased to 3.12%, with expectations for further increases in the second half of the year [7][12] - Net income increased by $1.4 million compared to the first quarter, driven by higher net interest income and lower provision expenses [11][12] Business Line Data and Key Metrics Changes - Strong loan growth of 15% annualized rate in Q2, with expectations for moderation to 10% to 12% in the second half of the year [5][16] - Noninterest income improved quarter over quarter, particularly in mortgage and Marine and RV lending [7][13] - Noninterest expenses increased by $1.8 million, primarily due to variable compensation expenses [14] Market Data and Key Metrics Changes - Total deposits decreased by $66 million during the quarter, consistent with seasonal trends, but year-over-year deposits increased by over $75 million [17][18] - The weighted average new and renewed loan rate for Q2 was 7.78%, positively impacting portfolio yield [16] Company Strategy and Development Direction - The company announced a definitive merger agreement with TC Bancshares, enhancing its market presence in South Georgia and North Florida [4][5] - The merger is expected to be immediately accretive to earnings per share and enhance the company's earnings power and balance sheet strength [24][28] - The company aims to leverage opportunities for further acquisitions in the future while focusing on the successful integration of TC Bancshares [39][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining a ROA of 1% or better and moving towards an intermediate goal of 1.2% [6] - The company anticipates a healthy loan pipeline despite expected moderation in growth rates [5] - Management noted stable credit quality with improvements in nonperforming assets and classified loans [8][16] Other Important Information - The company celebrated its fiftieth anniversary by ringing the opening bell at the New York Stock Exchange [10] - A quarterly cash dividend of $0.01 per share was declared [19] Q&A Session Summary Question: Update on loan pipelines and growth rates - Management indicated loan growth was 15% in the last quarter and expected to trend towards 10% to 12% for the remainder of the year, with deposits flattening out [34][35] Question: Details on merger accretion and systems conversion - The change in accretion from 2026 to 2027 is influenced by expense changes and continued organic growth, with the systems conversion expected in the first quarter [37][38] Question: Health of the loan portfolio, particularly in SBA lending - Management reported stable credit quality with some elevated charge-offs in the SBA segment, but overall performance remains strong [42][45] Question: Additional runway for loan repricing - There is still potential for asset repricing, with new loans being issued at favorable rates, although margin expansion may moderate [48][50]

Company Profile & Strategy - Colony Bank had $31 billion in assets as of June 30, 2025[10] - The company aims to achieve a return on assets target of 100% in the short term[15] - The company expects to return to an 8-12% organic growth run rate by the end of 2025[16] - The company is proactively seeking M&A opportunities, noting 319 banks under $600 million and 87 banks between $600 million and $12 billion[19] Financial Performance & Portfolio - The Small Business Specialty Lending (SBSL) group's loan portfolio breakdown shows $812 million with 483% in Commercial RE, 11% in Residential RE, 376% in Commercial, financial & agriculture, and 3% in Construction[24] - The current indicated annual dividend rate is $046 per share, equating to a yield of 26%[30] - Total liquidity sources as of June 30, 2025, were $12669 million, including $747 million in FRB Reserves and $3271 million in unencumbered securities[34] - As of June 30, 2025, commercial/business accounts represent 135% of accounts and 445% of total deposits balance, while consumer accounts represent 865% of accounts and 555% of total deposits balance[47] Loan Portfolio & Investment Securities - As of June 30, 2025, the loan portfolio totaled $19936 million, with 829% in Real Estate, 64% in Consumer and Other, 98% in Commercial, and 09% in Agriculture[56] - Investment securities portfolio composition as of June 30, 2025, includes 40% in US Agency MBS/CMO ($336962 thousand) and 31% in Municipal securities ($256256 thousand)[72]

Financial Performance - Colony Bankcorp (CBAN) reported quarterly earnings of $0.46 per share, exceeding the Zacks Consensus Estimate of $0.40 per share, and up from $0.34 per share a year ago, representing an earnings surprise of +15.00% [1] - The company posted revenues of $32.48 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 4.68%, compared to year-ago revenues of $27.91 million [2] Market Performance - Colony Bankcorp shares have increased approximately 9.9% since the beginning of the year, outperforming the S&P 500's gain of 7.3% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.41 on revenues of $31.66 million, and for the current fiscal year, it is $1.60 on revenues of $124.31 million [7] - The estimate revisions trend for Colony Bankcorp was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Banks - Southeast industry, to which Colony Bankcorp belongs, is currently in the top 14% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

[Second Quarter 2025 Financial Highlights & Overview](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights%20%26%20Overview) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) Colony Bankcorp reported strong Q2 2025 results, featuring significant growth in net income and EPS, expanded net interest margin, and a strategic acquisition Q2 2025 Key Financial Results | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Income | $8.0 million | $6.6 million | $5.5 million | | Diluted EPS | $0.46 | $0.38 | $0.31 | | Operating Net Income | $8.0 million | $6.6 million | $6.0 million | | Adjusted Diluted EPS | $0.46 | $0.38 | $0.34 | | Provision for Credit Losses | $450,000 | $1.5 million | $650,000 | - The Board of Directors declared a quarterly cash dividend of **$0.1150 per share**, payable on August 20, 2025, to shareholders of record as of August 6, 2025[4](index=4&type=chunk) - Total loans (excluding held for sale) increased by **$72.3 million (3.76%)** from the previous quarter to **$1.99 billion**, while total deposits decreased by **$66.3 million** to **$2.56 billion**[7](index=7&type=chunk) - The company announced a **strategic acquisition of TC Bancshares, Inc.**, aimed at strengthening its franchise and expanding its market reach[6](index=6&type=chunk) - CEO Heath Fountain highlighted the **meaningful expansion of the net interest margin**, supported by a well-positioned balance sheet and stable funding costs[5](index=5&type=chunk) [Financial Condition and Results of Operations](index=2&type=section&id=Financial%20Condition%20and%20Results%20of%20Operations) [Balance Sheet](index=2&type=section&id=Balance%20Sheet) Total assets slightly decreased to $3.12 billion as of June 30, 2025, with robust loan growth offset by a decline in total deposits Balance Sheet Summary (as of June 30, 2025) | Metric | Q2 2025 | Q1 2025 | Change | | :--- | :--- | :--- | :--- | | Total Assets | $3.12 billion | $3.17 billion | -$56.2 million | | Total Loans (excl. HFS) | $1.99 billion | $1.92 billion | +$72.3 million | | Total Deposits | $2.56 billion | $2.62 billion | -$66.3 million | - The decrease in deposits was driven by a **$34.6 million** fall in interest-bearing demand deposits and a **$22.3 million** drop in savings and money market deposits, partially offset by a **$5.7 million** rise in time deposits compared to Q1 2025[11](index=11&type=chunk) - Year-over-year, total deposits increased by **$96.0 million** from June 30, 2024[11](index=11&type=chunk) [Capital](index=2&type=section&id=Capital) The company maintained a strong capital position, with all regulatory capital ratios exceeding 'well-capitalized' minimums, and repurchased common stock Preliminary Capital Ratios (as of June 30, 2025) | Ratio | Percentage | | :--- | :--- | | Tier One Leverage Ratio | 9.61% | | Tier One Capital Ratio | 13.42% | | Total Risk-Based Capital Ratio | 16.06% | | Common Equity Tier One Capital Ratio | 12.34% | - A total of **$959,092** was spent on repurchasing **62,017 shares** of common stock in Q2 2025 under the approved stock repurchase program[11](index=11&type=chunk) [Results of Operations](index=2&type=section&id=Second%20Quarter%202025%20Results%20of%20Operations) Q2 2025 profitability significantly improved, driven by higher net interest income and a wider net interest margin, despite increased noninterest expenses Q2 2025 vs. Q2 2024 Performance | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Net Interest Income (tax-equivalent) | $22.6 million | $18.6 million | +$4.0 million | | Net Interest Margin | 3.12% | 2.68% | +44 bps | | Noninterest Income | $10.1 million | $9.5 million | +6.33% | | Noninterest Expense | $22.0 million | $20.3 million | +$1.7 million | - The increase in net interest income was primarily due to a **$3.5 million** rise in income on interest-earning assets, while expense on interest-bearing liabilities decreased by **$477,000** compared to Q2 2024[11](index=11&type=chunk) [Asset Quality](index=2&type=section&id=Asset%20Quality) Asset quality remained solid with decreased nonperforming assets and a lower credit loss reserve, though net loans charged-off increased Asset Quality Metrics | Metric | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | Nonperforming Assets | $11.4 million | $13.0 million | | Credit Loss Reserve / Total Loans | 0.96% | 1.04% | | Net Loans Charged-off (Q2'25 vs Q1'25) | $1.0 million (0.21%) | $606,000 (0.13%) | - The credit loss reserve stood at **$19.2 million** at the end of Q2 2025, down from **$20.0 million** at the end of Q1 2025[16](index=16&type=chunk) [Financial Tables](index=6&type=section&id=Financial%20Tables) [Reconciliation of Non-GAAP Measures](index=6&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) Non-GAAP measures like operating net income and adjusted EPS are used to provide a clearer understanding of core performance by excluding specific items Q2 2025 Non-GAAP Reconciliation Highlights (in thousands) | Metric | GAAP | Adjustments | Non-GAAP (Operating) | | :--- | :--- | :--- | :--- | | Net Income | $7,978 | $0 | $7,978 | | Diluted EPS | $0.46 | $0.00 | $0.46 | | Return on Average Assets | 1.02% | 0.00% | 1.02% | | Efficiency Ratio | 67.74% | 0.00% | 67.74% | [Selected Financial Information](index=8&type=section&id=Selected%20Financial%20Information) This section summarizes key earnings, performance ratios, and balance sheet data, showing improved profitability and tangible book value per share in Q2 2025 Quarterly Performance Ratios | Ratio | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Interest Margin | 3.12% | 2.93% | 2.68% | | Return on Average Assets | 1.02% | 0.85% | 0.73% | | Return on Average Equity | 11.14% | 9.63% | 8.46% | | Tangible Book Value/Share | $13.73 | $13.46 | $12.10 | Quarterly Asset Quality Ratios | Ratio | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | NPAs to Total Assets | 0.37% | 0.41% | 0.24% | | NPLs to Total Loans | 0.54% | 0.65% | 0.36% | | Net Charge-offs to Avg. Loans | 0.21% | 0.13% | 0.14% | [Average Balance Sheet and Net Interest Analysis](index=10&type=section&id=Average%20Balance%20Sheet%20and%20Net%20Interest%20Analysis) Net interest margin significantly expanded in Q2 2025, driven by higher asset yields and lower liability costs, with average interest-earning assets growing YoY Net Interest Margin Analysis (Three Months Ended June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Yield on Interest-Earning Assets | 5.11% | 4.83% | | Cost of Interest-Bearing Liabilities | 2.42% | 2.64% | | Interest Rate Spread | 2.69% | 2.19% | | Net Interest Margin | 3.12% | 2.68% | [Segment Reporting](index=12&type=section&id=Segment%20Reporting) The company operates through Banking, Mortgage Banking, and SBSL segments, with Banking as the primary income contributor and Mortgage Banking showing significant growth Segment Income (in thousands) | Segment | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Banking Division | $7,441 | $6,201 | $4,012 | | Mortgage Banking Division | $249 | $21 | $138 | | Small Business Specialty Lending | $288 | $391 | $1,324 | [Consolidated Financial Statements](index=13&type=section&id=Consolidated%20Financial%20Statements) Consolidated financial statements show total assets of $3.12 billion, net loans of $1.97 billion, and total deposits of $2.56 billion, with Q2 2025 net income up 46% YoY Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total Assets | $3,115,617 | $3,109,782 | | Loans, net | $1,974,427 | $1,824,000 | | Total Deposits | $2,556,230 | $2,567,943 | | Total Stockholders' Equity | $293,857 | $278,675 | Consolidated Income Statement Highlights (Three Months Ended June 30, in thousands) | Account | 2025 | 2024 | | :--- | :--- | :--- | | Net Interest Income | $22,385 | $18,409 | | Noninterest Income | $10,098 | $9,497 | | Noninterest Expense | $22,004 | $20,330 | | Net Income | $7,978 | $5,474 | [Loan and Deposit Analysis](index=16&type=section&id=Loan%20and%20Deposit%20Analysis) Loan and deposit schedules detail a QoQ decrease in deposits to $2.56 billion and an increase in loans to $1.99 billion, with regional concentrations - Total deposits decreased by **$66.3 million** QoQ, with declines in interest-bearing demand and savings accounts, and reciprocal deposits also decreased by **$13.2 million**[37](index=37&type=chunk)[38](index=38&type=chunk) - Total loans increased by **$72.3 million** QoQ, led by a **$29.2 million** increase in Construction, land & land development loans and a **$21.4 million** increase in Consumer and other loans[39](index=39&type=chunk)[40](index=40&type=chunk) - By location, the Atlanta and North Georgia loan portfolio is the largest at **$445.9 million**, while the South Georgia region holds the most deposits at **$1.20 billion**[38](index=38&type=chunk)[41](index=41&type=chunk) [Credit Quality Details](index=18&type=section&id=Credit%20Quality%20Details) Detailed tables show total classified loans decreased to $25.1 million and criticized loans to $54.8 million in Q2 2025, with commercial real estate as the largest portion Classified and Criticized Loans (in thousands) | Category | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Classified Loans | $25,112 | $26,453 | $22,355 | | Criticized Loans | $54,814 | $55,823 | $44,850 | - Other commercial real estate loans constitute the largest portion of both classified (**$16.7 million**) and criticized (**$30.0 million**) loans[42](index=42&type=chunk)[43](index=43&type=chunk) [Company Information & Disclosures](index=3&type=section&id=Company%20Information%20%26%20Disclosures) [About Colony Bankcorp](index=3&type=section&id=About%20Colony%20Bankcorp) Colony Bankcorp, founded in 1975, is a bank holding company operating across Georgia, Alabama, and Florida, offering diverse personal and business banking services - Colony Bankcorp operates locations in Georgia, Birmingham (Alabama), Tallahassee (Florida), and the Florida Panhandle[13](index=13&type=chunk) - Specialized services include mortgage lending, government guaranteed lending, consumer insurance, wealth management, credit cards, and merchant services[13](index=13&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section cautions that forward-looking statements are subject to risks and uncertainties, including economic conditions, interest rate changes, and competition - The document cautions investors that forward-looking statements are subject to risks and uncertainties and are not guarantees of future performance[14](index=14&type=chunk)[15](index=15&type=chunk) - Key risk factors mentioned include economic conditions, interest rate volatility, competition from regional institutions and fintechs, and risks related to integrating acquisitions[15](index=15&type=chunk)[17](index=17&type=chunk) [Explanation of Non-GAAP Financial Measures](index=5&type=section&id=Explanation%20of%20Certain%20Unaudited%20Non-GAAP%20Financial%20Measures) Non-GAAP financial measures are used to provide supplemental information and enhance investors' understanding by excluding certain non-recurring or non-operational items - Non-GAAP measures are used by management to analyze company performance and are believed to provide a clearer understanding for investors[21](index=21&type=chunk) - Examples of non-GAAP measures used include operating net income, adjusted earnings per diluted share, tangible book value per common share, and operating efficiency ratio[20](index=20&type=chunk)

Core Viewpoint - Three stocks have been added to the Zacks Rank 5 (Strong Sell) List, indicating a negative outlook for these companies based on recent earnings estimate revisions Group 1: Company Summaries - Americold Realty Trust, Inc. (COLD) is a temperature-controlled logistics real estate and value-added services company, with a current year earnings estimate revised downward by 5.9% over the last 60 days [1] - Colony Bankcorp, Inc. (CBAN) is the bank holding company for Colony Bank, experiencing a 6.4% downward revision in its current year earnings estimate over the last 60 days [1] - DoubleDown Interactive Co., Ltd. (DDI) is a digital gaming company, with its current year earnings estimate revised downward by 5.8% over the last 60 days [2]

Group 1 - Colony Bankcorp Inc's earnings for the last two quarters have exceeded expectations [1] - The company is now expected to report an EPS of $1.59 for 2025, an increase from previous estimates [1]

Financial Performance - The company reported net income of $6.6 million, or $0.38 per diluted share, for Q1 2025, compared to net income of $5.3 million, or $0.30 per diluted share, for Q1 2024, reflecting an increase of 24.53% in net income[210]. - Noninterest income for Q1 2025 was $9.0 million, a decrease of $443,000, or 4.67%, from Q1 2024, primarily due to declines in service charges and gains on sales of loans[214]. - Total noninterest income decreased to $9.044 million for the three months ended March 31, 2025, down 4.7% from $9.487 million in 2024[236]. - Mortgage fee income increased by 26.4% to $1.579 million for the three months ended March 31, 2025, compared to $1.249 million in 2024[236]. - The effective tax rate for the three months ended March 31, 2025 was 20.1%, a decrease from 20.9% for the same period in 2024[252]. Asset and Liability Management - As of March 31, 2025, the company had total consolidated assets of $3.2 billion, total loans of $1.9 billion, total deposits of $2.6 billion, and stockholders' equity of $286.9 million[210]. - Total assets increased to $3.2 billion as of March 31, 2025, up from $3.1 billion at December 31, 2024[253]. - Total loans outstanding increased to $1.92 billion at March 31, 2025, a rise of $78.3 million or 4.25% from $1.84 billion at December 31, 2024[254]. - Total deposits increased by $54.6 million to $2.622 billion at March 31, 2025, compared to $2.568 billion at December 31, 2024, with noninterest-bearing deposits comprising 17.2% of total deposits[275]. - Cash and cash equivalents decreased to $221.2 million at March 31, 2025, from $231.0 million at December 31, 2024, primarily due to increases in loans[284]. Interest Income and Expense - Net interest income on a tax-equivalent basis increased to $21.1 million for Q1 2025, up from $18.8 million in Q1 2024, representing a growth of 12.23%[211]. - Fully taxable equivalent net interest income increased to $21.1 million in Q1 2025 from $18.8 million in Q1 2024, reflecting a growth of 12.83%[225]. - The net interest margin improved to 2.93% in Q1 2025 from 2.69% in Q1 2024, primarily due to increases in loan and deposit rates[225]. - Income on interest-earning assets increased by $2.2 million to $35.7 million for Q1 2025 compared to the same period in 2024[211]. - Expense on interest-bearing liabilities decreased by $83,000 to $14.6 million for Q1 2025 compared to Q1 2024[211]. Credit Losses and Nonperforming Assets - Provision for credit losses for Q1 2025 was $1.5 million, compared to $1.0 million in Q1 2024, indicating a 50% increase in provisions[212]. - Nonperforming assets were $13.0 million, or 0.41% of total assets, as of March 31, 2025, compared to $11.3 million, or 0.36% of total assets, at December 31, 2024[212]. - The allowance for credit losses on loans was $20.0 million, or 1.04% of total loans, as of March 31, 2025, compared to $19.0 million, or 1.03% of total loans, at December 31, 2024[212]. - The Company reported an increase in net charge-offs to $606,000 for the three months ended March 31, 2025, compared to $664,000 for the same period in 2024, with a net charge-off to average loans ratio of 0.13%[267]. - Nonaccrual loans as a percentage of total loans increased to 0.65% at March 31, 2025, from 0.58% at December 31, 2024[272]. Regulatory Capital and Liquidity - The Company and the Bank exceeded all regulatory capital requirements and were considered "well-capitalized" as of March 31, 2025, and December 31, 2024[289]. - Common equity tier 1 capital (CET1) ratio was 12.62% as of March 31, 2025, compared to 13.08% as of December 31, 2024[291]. - Tier 1 risk-based capital ratio decreased from 14.26% on December 31, 2024, to 13.75% on March 31, 2025[291]. - Total risk-based capital ratio declined from 17.10% as of December 31, 2024, to 16.52% as of March 31, 2025[291]. - The leverage ratio was 9.43% as of March 31, 2025, slightly down from 9.50% as of December 31, 2024[291]. Interest Rate Risk Management - A 200 basis point increase in interest rates would result in a 5.59% increase in net interest income as of March 31, 2025[295]. - A 100 basis point decrease in interest rates would lead to a decrease of 1.16% in net interest income as of March 31, 2025[295]. - The Company operates under an Asset Liability Management Policy to manage interest rate risk, approved by the Asset/Liability Management Committee[293]. - The Company continues to monitor interest rate risk and implement strategies to achieve its risk objectives[293]. - There were no material changes to market risk disclosures during the period covered by the report[296].

Financial Data and Key Metrics Changes - Operating net income declined by $1.1 million in the first quarter due to seasonal declines in noninterest income lines, particularly in SBSL [18] - Pre-provision net revenue increased by almost $1.5 million on an operating basis compared to the first quarter of 2024, indicating improvement in core earning fundamentals [19] - Net interest income increased by approximately $480,000 in the first quarter, driven by loan growth and a reduction in the cost of funds [19] - Cost of funds for the quarter was 2.07%, a decline of 12 basis points from the previous quarter and 25 basis points from the third quarter of 2024 [20] - Margin increased by 9 basis points to 2.93%, up from 2.84% in the prior quarter [20] Business Line Data and Key Metrics Changes - First quarter annualized loan growth was 17%, with expectations for future quarters to be in the range of 8% to 12% [7][8] - Operating non-interest income decreased by about $1.7 million, primarily due to decreased activity in the SBSL division [21] - Revenues in the mortgage division were slightly higher, and expenses were slightly lower, resulting in profitability for the division [22] - Non-interest expenses decreased around $1 million, attributed to lower variable expenses and advertising costs [23] Market Data and Key Metrics Changes - Total deposits increased by $54.6 million in the quarter, with a focus on a deposit-first culture [29] - The company is experiencing cooling deposit competition, which is expected to help keep cost pressures minimal [30] - Cash to assets was a little over 7% at the end of the quarter, providing room for continued funding of loan growth [31] Company Strategy and Development Direction - The company is excited about the acquisition of Ellerbee Agency, which is expected to be EPS accretive and enhance the Insurance division [10][11] - A credit card program for both consumer and commercial credit cards was launched, aimed at generating significant noninterest income over time [12] - The company is maintaining a proactive approach to monitor market volatility and its impact on customers, especially in sectors exposed to trade dynamics [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the loan growth pipeline for the rest of the year, despite seasonal fluctuations [9][28] - There are no indicators of large-scale disruptions affecting credit quality, with isolated issues in agricultural production and trucking loans [26] - Management remains optimistic about the M&A environment in banking, with ongoing discussions with potential targets [15] Other Important Information - The effective tax rate for the quarter was a little over 20%, consistent with previous guidance [24] - The company repurchased 38,000 shares at an average price of $16.45 as part of its stock repurchase program [32] - A quarterly cash dividend of $0.115 per share was declared [33] Q&A Session Summary Question: What are the trends and expectations for SBSL, loan growth, and asset quality as well as pricing for the rest of the year? - Management is vigilant about the impact of tariffs and trade policy on customers, noting that many have become more aware of their supply chains post-COVID [36][39] - There is good activity in SBSL, with expectations to return to previous levels of production [43][44] Question: What net interest margin impacts do you expect from a 25 basis point rate cut? - Management feels well-positioned for potential rate cuts, expecting improved margins from repricing of assets and reduced costs [45][46] - The loan portfolio yield is around 6%, with new weighted average rates in the mid- to high-7s, indicating favorable conditions for margin improvement [47][50]