Colony Bankcorp, Inc. (NYSE:CBAN) Q1 2025 Earnings Conference Call April 24, 2025 9:00 AM ET Company Participants Brantley Collins – Communications Manager Heath Fountain – Chief Executive Officer Derek Shelnutt – Executive Vice President and Chief Financial Officer Conference Call Participants Operator Good morning, ladies and gentlemen, and welcome to the Colony Bank First Quarter 2025 Conference Call. At this time all lines are in listen-only mode. Following the presentation, we will conduct a question-a ...

2 2 0 5 E A R S Y INVESTOR PRESENTATION First Quarter 2025 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") future filings with the Securities and Exchange Commission (the "SEC"), in press releases, and in oral ...

Group 1: Earnings Performance - Colony Bankcorp reported quarterly earnings of $0.38 per share, missing the Zacks Consensus Estimate of $0.40 per share, but showing an increase from $0.33 per share a year ago, representing an earnings surprise of -5% [1] - The company posted revenues of $30 million for the quarter, missing the Zacks Consensus Estimate by 3.92%, compared to year-ago revenues of $28.14 million [2] - Over the last four quarters, Colony Bankcorp has surpassed consensus EPS estimates three times [2] Group 2: Stock Performance and Outlook - Colony Bankcorp shares have declined approximately 5.7% since the beginning of the year, while the S&P 500 has decreased by 10.1% [3] - The current consensus EPS estimate for the upcoming quarter is $0.42 on revenues of $31.86 million, and for the current fiscal year, it is $1.71 on revenues of $128.12 million [7] - The Zacks Rank for Colony Bankcorp is currently 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Group 3: Industry Context - The Banks - Southeast industry, to which Colony Bankcorp belongs, is currently in the top 29% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor decisions [5]

For additional information, contact: Derek Shelnutt EVP & Chief Financial Officer 229-426-6000, extension 6119 COLONY BANKCORP REPORTS FIRST QUARTER 2025 RESULTS DECLARES QUARTERLY CASH DIVIDEND OF $0.1150 PER SHARE FITZGERALD, GA. (April 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: The Company also announced that on April 23, 2025, the Board of Directors ...

Financial Performance and Capital Management - The Company completed a private placement of $39.5 million in subordinated notes with a fixed rate of 5.25% for the first five years, resetting quarterly thereafter[27]. - As of December 31, 2024, the Company had repurchased a total of 171,481 shares for $2,249,000, leaving $9,751,000 available for further repurchases under the stock buyback program[29]. - The Company surpassed the $3 billion asset threshold in 2023, which requires compliance with minimum regulatory capital levels[62]. - The Company is required to maintain a minimum Tier 1 risk-based capital ratio of 6.0% and a total risk-based capital ratio of 10.0% to be considered well-capitalized[60]. - As of December 31, 2024, the Company's and the Bank's regulatory capital ratios were above the applicable well-capitalized standards and met the then-applicable capital conservation buffer[63]. - The capital conservation buffer of 2.5% must be maintained above each minimum capital ratio requirement to allow for dividend payments and share buybacks[57]. - The Company must seek approval from the Georgia Department of Banking and Finance to pay dividends if certain capital ratios are not met[67]. Regulatory Compliance and Governance - The Company recognizes the importance of compliance with governmental and regulatory requirements, including the Dodd-Frank Act[40]. - The Company must comply with various corporate governance and financial reporting requirements under the Sarbanes-Oxley Act of 2002[49]. - The Dodd-Frank Act mandates that public companies provide shareholders with advisory votes on executive compensation at least every three years[52]. - The Company is subject to oversight by the SEC, FINRA, PCAOB, and various state securities regulators[53]. - The Federal Reserve has not yet revised the well-capitalized standard for bank holding companies to reflect higher capital requirements[60]. - The Company has undertaken efforts to ensure that incentive compensation plans do not encourage inappropriate risks, consistent with regulatory principles[51]. Banking Operations and Market Environment - The Bank operates through 34 offices across Georgia and has a corporate banking office in Birmingham, Alabama, and a loan production office in Tallahassee, Florida[26]. - The banking industry is highly competitive, with pressures from larger regional banks, smaller community banks, and nonbank financial institutions[30]. - The Company maintains correspondent relationships with several banks to facilitate business transactions in markets without a physical presence[32]. - The Company offers a variety of deposit products designed to meet the needs of individuals and businesses, focusing on expanding core deposits[25]. Employee and Talent Management - The Company had a total of 465 employees as of December 31, 2024, with 455 being full-time equivalent employees[34]. - The Company emphasizes talent acquisition, development, and retention as a strategic priority, focusing on inclusivity and professional development initiatives[35]. Risk Management and Credit Regulations - The Bank is required to notify regulators within 36 hours of a "computer-security incident" that qualifies as a "notification incident"[90]. - The CFPB's ATR/QM rule requires lenders to consider income, employment status, assets, payment amounts, and credit history before mortgage approval[91]. - Qualified mortgages must have a total debt-to-income ratio of less than or equal to 43%[91]. - The CFPB mandates that securitizers retain at least 5% of the credit risk for asset-backed securities unless exempted[91]. - The Bank is subject to the Equal Credit Opportunity Act and Fair Housing Act, prohibiting discrimination in credit transactions[92]. - The DOJ has intensified efforts to prosecute violations of the ECOA and FHA[92]. - New rules limit interest and charges on credit cards and debit card overdrafts[92]. - The Bank must provide disclosures to help the public assess its fulfillment of community housing needs[92]. - The Bank is prohibited from discriminatory practices when extending credit[92]. - The Bank must comply with new standards for error correction and information disclosure regarding mortgage servicing[91]. Market Risk and Interest Rate Sensitivity - The information on market risk and interest rate sensitivity is detailed in Item 7 of the report[328].

Financial Data and Key Metrics Changes - The company expressed satisfaction with the results achieved in the fourth quarter and highlighted progress towards performance goals throughout 2024 [6]. Business Line Data and Key Metrics Changes - Specific details regarding changes in various business lines were not provided in the available content. Market Data and Key Metrics Changes - Information on market data and key metrics changes was not included in the provided content. Company Strategy and Development Direction and Industry Competition - The company emphasized its commitment to maintaining progress towards performance goals, indicating a strategic focus on operational efficiency and growth [6]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the accomplishments made during 2024 and the overall performance in the fourth quarter, suggesting a positive outlook for the future [6]. Other Important Information - The call included standard disclosures regarding forward-looking statements and the associated risks and uncertainties [3][4]. Q&A Session All Questions and Answers - No specific questions and answers from the Q&A session were provided in the available content.

2 5 2 0 E A R S Y INVESTOR PRESENTATION Fourth Quarter 2024 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") future filings with the Securities and Exchange Commission (the "SEC"), in press releases, and in oral ...

Group 1 - Colony Bankcorp reported quarterly earnings of $0.44 per share, exceeding the Zacks Consensus Estimate of $0.36 per share, and up from $0.31 per share a year ago, representing an earnings surprise of 22.22% [1] - The company posted revenues of $30.78 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 6.55%, compared to $28.18 million in the same quarter last year [2] - Colony Bankcorp has surpassed consensus EPS estimates three times over the last four quarters, while it has topped consensus revenue estimates only once in the same period [2] Group 2 - The stock has underperformed the market, losing about 0.7% since the beginning of the year, while the S&P 500 has gained 2.9% [3] - The current consensus EPS estimate for the upcoming quarter is $0.38 on revenues of $29.32 million, and for the current fiscal year, it is $1.57 on revenues of $120.52 million [7] - The Zacks Industry Rank for Banks - Southeast is currently in the top 24% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Financial Performance - Net income for Q4 2024 increased to $7.4 million, or $0.42 per diluted share, compared to $5.6 million, or $0.32 per diluted share, in Q3 2024[6] - Net income for Q4 2024 was $7,432,000, compared to $5,629,000 in Q3 2024, reflecting a 32.0% increase[24] - Operating net income for Q4 2024 was $7,756,000, up from $6,205,000 in Q3 2024, a 24.97% increase[24] - Net income for Q4 2024 reached $7,432,000, representing a significant increase of 32.5% from $5,629,000 in Q3 2024[26] - Net income for Q4 2024 reached $7,432,000, representing a 32.7% increase compared to $5,598,000 in Q4 2023[36] - Earnings per share (EPS) for Q4 2024 was $0.42, up from $0.32 in Q4 2023, marking a 31.3% increase[36] Income and Revenue - Noninterest income for Q4 2024 totaled $10.3 million, a 10.79% increase from the same period in 2023[10] - Operating noninterest income for Q4 2024 was $10,710,000, up from $10,536,000 in Q3 2024, representing a 1.64% increase[24] - Total income for Q4 2024 reached $30,781,000, compared to $28,623,000 in Q3 2024, marking a 7.53% increase[25] - Total noninterest income for the twelve months ended December 31, 2024, was $39,375,000, a 10.3% increase from $35,634,000 in 2023[36] - Noninterest income for the fourth quarter of 2024 was $10,309,000, compared to $9,305,000 in the fourth quarter of 2023, reflecting an increase of 10.77%[34] Assets and Deposits - Total assets increased to $3.11 billion at December 31, 2024, up by $44.7 million from September 30, 2024[10] - Total assets grew to $3,108,762,000 in Q4 2024, compared to $3,038,947,000 in Q3 2024, marking an increase of 2.3%[27] - Total assets as of December 31, 2024, were $3,109,782,000, up from $3,053,422,000 in Q4 2023, reflecting a growth of 1.8%[38] - Total deposits rose to $2.57 billion at December 31, 2024, an increase of $43.0 million from $2.52 billion at September 30, 2024[10] - Total deposits for Q4 2024 reached $2,567,943, an increase of 1.7% from Q3 2024's $2,524,970[39] - Total deposits rose to $2,567,943,000 in 2024, compared to $2,544,790,000 in 2023, marking an increase of 0.91%[35] Loans and Credit Quality - Total loans, excluding loans held for sale, were $1.84 billion at December 31, 2024, a decrease of $43.1 million, or 2.28%, from the prior quarter[6] - Total loans decreased to $1,842,980 in Q4 2024 from $1,886,037 in Q3 2024, representing a decline of 2.3%[41] - Core loans for Q4 2024 amounted to $1,720,444, a decrease of 2.2% compared to $1,759,600 in Q3 2024[41] - The provision for credit losses was $650,000 in Q4 2024, down from $750,000 in Q3 2024[6] - The provision for credit losses in the fourth quarter of 2024 was $650,000, a decrease from $1,500,000 in the fourth quarter of 2023, indicating improved credit quality[34] - Total nonperforming loans (NPLs) decreased to $10,812,000 in Q4 2024 from $12,259,000 in Q3 2024, a reduction of 11.8%[27] Efficiency and Profitability - Operating return on average assets improved to 0.99% in Q4 2024 from 0.81% in Q3 2024[24] - Return on average assets increased to 0.95% in Q4 2024, up from 0.74% in Q3 2024, showing enhanced profitability[26] - The efficiency ratio improved to 69.11% in Q4 2024, compared to 72.79% in Q3 2024, indicating better cost management[26] - Operating efficiency ratio decreased to 67.80% in Q4 2024 from 70.27% in Q3 2024, indicating improved cost management[25] Dividends - The company declared a quarterly cash dividend of $0.1150 per share, to be paid on February 19, 2025[4] - Cash dividends declared per share remained stable at $0.1125 for Q4 2024, consistent with Q3 2024[26] - The company declared dividends of $0.1125 per share for Q4 2024, compared to $0.1100 per share in Q4 2023[36]

Group 1: Stock Recommendations - Peoples Financial Services Corp. (PFIS) has seen a 27.3% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Premier, Inc. (PINC) has experienced a 5.7% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Colony Bankcorp, Inc. (CBAN) has had a 3.8% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3] Group 2: Dividend Yields - Peoples Financial Services Corp. (PFIS) offers a dividend yield of 4.5%, significantly higher than the industry average of 2.4% [2] - Premier, Inc. (PINC) has a dividend yield of 3.9%, compared to the industry average of 0.0% [3] - Colony Bankcorp, Inc. (CBAN) provides a dividend yield of 2.6%, slightly above the industry average of 2.3% [4]