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Colony Bank(CBAN) - 2025 Q2 - Quarterly Report
2025-08-08 17:01
PART I – Financial Information [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Presents Colony Bankcorp's unaudited consolidated financial statements for Q2 2025 and audited balance sheet for YE 2024, including detailed accounting notes [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheets (in thousands) | Metric (in thousands) | June 30, 2025 (Unaudited) | December 31, 2024 (Audited) | | :--------------------------------------- | :-------------------------- | :-------------------------- | | **ASSETS** | | | | Cash and cash equivalents | $112,145 | $231,034 | | Investment securities available-for-sale | $373,572 | $366,049 | | Investment securities held-to-maturity | $409,634 | $430,077 | | Loans, net | $1,974,427 | $1,824,000 | | Total assets | $3,115,617 | $3,109,782 | | **LIABILITIES AND STOCKHOLDERS' EQUITY** | | | | Deposits | $2,556,230 | $2,567,943 | | Federal Home Loan Bank advances | $185,000 | $185,000 | | Total liabilities | $2,821,760 | $2,831,107 | | Total stockholders' equity | $293,857 | $278,675 | - Total assets remained stable at **$3.1 billion** at June 30, 2025, compared to December 31, 2024. Loans, net, increased by **$150.4 million (8.2%)** from **$1.82 billion** to **$1.97 billion**, while cash and cash equivalents decreased by **$118.9 million (51.5%)** from **$231.0 million** to **$112.1 million**[9](index=9&type=chunk)[72](index=72&type=chunk)[73](index=73&type=chunk) - Total deposits decreased by **$11.7 million (0.5%)** from **$2.57 billion** to **$2.56 billion**, primarily due to seasonality. Stockholders' equity increased by **$15.2 million (5.5%)** from **$278.7 million** to **$293.9 million**[9](index=9&type=chunk)[295](index=295&type=chunk) [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) Consolidated Statements of Income (in thousands, except per share) | Metric (in thousands, except per share) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net interest income | $22,385 | $18,409 | $43,337 | $37,063 | | Provision for credit losses | $450 | $650 | $1,950 | $1,650 | | Total noninterest income | $10,098 | $9,497 | $19,142 | $18,984 | | Total noninterest expense | $22,004 | $20,330 | $42,225 | $40,727 | | Net income | $7,978 | $5,474 | $14,591 | $10,807 | | Basic EPS | $0.46 | $0.31 | $0.83 | $0.62 | | Diluted EPS | $0.46 | $0.31 | $0.83 | $0.62 | | Dividends declared per share | $0.1150 | $0.1125 | $0.2300 | $0.2250 | - Net income increased by **45.7%** to **$8.0 million** for Q2 2025 compared to **$5.5 million** for Q2 2024. For the six months ended June 30, 2025, net income increased by **35.0%** to **$14.6 million** from **$10.8 million** in the prior year[11](index=11&type=chunk)[227](index=227&type=chunk)[238](index=238&type=chunk) - Basic and diluted EPS increased to **$0.46** for Q2 2025 from **$0.31** for Q2 2024, and to **$0.83** for the six months ended June 30, 2025, from **$0.62** for the same period in 2024[11](index=11&type=chunk)[227](index=227&type=chunk)[238](index=238&type=chunk) [Consolidated Statements of Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Consolidated Statements of Comprehensive Income (in thousands) | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $7,978 | $5,474 | $14,591 | $10,807 | | Total other comprehensive income | $1,742 | $1,170 | $5,909 | $2,459 | | Comprehensive income | $9,720 | $6,644 | $20,500 | $13,266 | - Comprehensive income increased by **46.3%** to **$9.7 million** for Q2 2025 from **$6.6 million** for Q2 2024. For the six months ended June 30, 2025, comprehensive income increased by **54.5%** to **$20.5 million** from **$13.3 million** in the prior year[13](index=13&type=chunk) - Net unrealized gains on securities arising during the period significantly increased to **$1.4 million** for Q2 2025 from a loss of **$0.3 million** in Q2 2024, and to **$6.3 million** for the six months ended June 30, 2025, from a loss of **$1.1 million** in the prior year[13](index=13&type=chunk) [Consolidated Statements of Changes in Stockholder's Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholder%27s%20Equity) Consolidated Statements of Changes in Stockholder's Equity (in thousands) | Metric (in thousands) | Balance, December 31, 2024 | Balance, June 30, 2025 | | :--------------------- | :------------------------- | :--------------------- | | Common Stock | $17,520 | $17,417 | | Paid-In Capital | $168,353 | $167,160 | | Retained Earnings | $140,369 | $150,938 | | Accumulated Other Comprehensive Income (Loss) | $(47,567) | $(41,658) | | Total Stockholders' Equity | $278,675 | $293,857 | - Total stockholders' equity increased by **$15.2 million** to **$293.9 million** at June 30, 2025, from **$278.7 million** at December 31, 2024. This increase was primarily driven by net income of **$14.6 million** and other comprehensive income of **$5.9 million**, partially offset by dividends paid of **$4.0 million** and share repurchases of **$1.6 million**[17](index=17&type=chunk)[9](index=9&type=chunk) - The Company repurchased and retired **100,324 shares** for **$1.6 million** during the six months ended June 30, 2025[17](index=17&type=chunk) [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Consolidated Statements of Cash Flows (in thousands) | Metric (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $33,788 | $6,149 | | Net cash provided by (used in) investing activities | $(135,276) | $51,852 | | Net cash used in financing activities | $(17,401) | $(59,321) | | Net decrease in cash and cash equivalents | $(118,889) | $(1,320) | | Cash and cash equivalents at end of period | $112,145 | $82,002 | - Net cash provided by operating activities significantly increased to **$33.8 million** for the six months ended June 30, 2025, from **$6.1 million** in the prior year, primarily due to higher net income and changes in other assets/liabilities[20](index=20&type=chunk) - Investing activities shifted from providing **$51.9 million** in cash in 2024 to using **$135.3 million** in 2025, mainly due to a **$153.1 million** change in loans, net (originations exceeding proceeds from sales)[20](index=20&type=chunk) - Financing activities used **$17.4 million** in cash for the six months ended June 30, 2025, a decrease from **$59.3 million** used in the prior year, driven by changes in customer deposits and FHLB advances[20](index=20&type=chunk) [Notes to Consolidated Financial Statements (Unaudited)](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements%20%28Unaudited%29) [ (1) Summary of Significant Accounting Policies](index=11&type=section&id=%281%29%20Summary%20of%20Significant%20Accounting%20Policies) - The Company is a bank holding company based in Fitzgerald, Georgia, offering a full range of retail, commercial, and mortgage banking services, government guaranteed lending, consumer insurance, wealth management, credit cards, and merchant services primarily in Georgia, Alabama, and Florida[25](index=25&type=chunk)[29](index=29&type=chunk) - Key accounting estimates include the allowance for credit losses, valuation of real estate acquired in foreclosures, and fair value of assets/liabilities in business combinations, including goodwill impairment[30](index=30&type=chunk) - Approximately **83%** of the Company's loan portfolio was concentrated in real estate loans at June 30, 2025, posing a credit risk dependent on the real estate economic sector[33](index=33&type=chunk) - The Company adopted ASU No. 2023-07 (Segment Reporting) for interim periods beginning January 1, 2025, with no material impact on financial statements, and is evaluating ASU No. 2023-09 (Income Taxes) for its annual report[59](index=59&type=chunk)[60](index=60&type=chunk) [ (2) Investment Securities](index=19&type=section&id=%282%29%20Investment%20Securities) Investment Securities (in thousands) | Metric (in thousands) | June 30, 2025 Amortized Cost | June 30, 2025 Fair Value | December 31, 2024 Amortized Cost | December 31, 2024 Fair Value | | :--------------------- | :--------------------------- | :----------------------- | :------------------------------- | :--------------------------- | | **Available-for-Sale** | | | | | | Total | $409,912 | $373,572 | $409,380 | $366,049 | | Gross Unrealized Gains | $714 | | $225 | | | Gross Unrealized Losses | $(37,054) | | $(43,556) | | | **Held-to-Maturity** | | | | | | Total | $409,634 | $369,103 | $430,077 | $383,020 | | Gross Unrealized Gains | $— | | $— | | | Gross Unrealized Losses | $(40,531) | | $(47,057) | | - The fair value of available-for-sale securities increased by **$7.5 million** to **$373.6 million** at June 30, 2025, from **$366.0 million** at December 31, 2024, while held-to-maturity securities decreased by **$13.9 million** to **$369.1 million** from **$383.0 million**[62](index=62&type=chunk) - Gross unrealized losses on available-for-sale securities decreased from **$(43.6) million** to **$(37.1) million**, and on held-to-maturity securities decreased from **$(47.1) million** to **$(40.5) million**, primarily due to increases in market interest rates[62](index=62&type=chunk)[76](index=76&type=chunk) - The Company had no sales of investment securities for the three and six months ended June 30, 2025, compared to gross realized losses of **$0.4 million** and **$1.0 million**, respectively, in 2024 from restructuring underperforming assets[67](index=67&type=chunk) [ (3) Loans](index=24&type=section&id=%283%29%20Loans) Loans (in thousands) | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :--------------------- | :------------ | :---------------- | | Construction, land & land development | $238,078 | $205,046 | | Other commercial real estate | $1,059,149 | $990,648 | | Residential real estate | $356,515 | $344,167 | | Commercial, financial & agricultural | $212,872 | $213,910 | | Consumer and other | $126,966 | $89,209 | | Total loans | $1,993,580 | $1,842,980 | - Gross loans outstanding increased by **$150.6 million (8.2%)** to **$1.99 billion** at June 30, 2025, from **$1.84 billion** at December 31, 2024. Commercial real estate loans constitute **65.1%** of the total loan portfolio[73](index=73&type=chunk)[74](index=74&type=chunk) - Nonaccrual loans decreased slightly to **$10.6 million** at June 30, 2025, from **$10.7 million** at December 31, 2024. Total nonperforming assets increased to **0.37%** of total assets at June 30, 2025, from **0.36%** at December 31, 2024[290](index=290&type=chunk)[293](index=293&type=chunk) - The Company had no loans modified due to financial difficulty during the three and six months ended June 30, 2025[110](index=110&type=chunk)[294](index=294&type=chunk) [ (4) Allowance for Credit Losses](index=38&type=section&id=%284%29%20Allowance%20for%20Credit%20Losses) Allowance for Credit Losses (in thousands) | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :--------------------- | :------------ | :---------------- | | Allowance for credit losses on loans | $19,153 | $18,980 | | Allowance for credit losses on unfunded commitments | $935 | $813 | | Total ACL | $20,088 | $19,793 | - The allowance for credit losses on loans increased to **$19.2 million** at June 30, 2025, from **$19.0 million** at December 31, 2024. As a percentage of total loans, it decreased to **0.96%** from **1.03%**[120](index=120&type=chunk)[229](index=229&type=chunk)[282](index=282&type=chunk) - Net charge-offs for the six months ended June 30, 2025, were **$1.7 million**, up from **$1.3 million** for the same period in 2024[229](index=229&type=chunk)[288](index=288&type=chunk) - The provision for credit losses for the six months ended June 30, 2025, was **$1.95 million**, including **$1.83 million** for loans and **$0.1 million** for unfunded commitments[250](index=250&type=chunk)[282](index=282&type=chunk) [ (5) Derivatives](index=40&type=section&id=%285%29%20Derivatives) - The Company uses interest rate swaps to manage interest rate risk, designating them as cash flow hedges for variable rate liabilities and fair value hedges for fixed rate assets[128](index=128&type=chunk)[131](index=131&type=chunk) - As of June 30, 2025, derivative assets totaled **$0.01 million** (all cash flow hedges), and derivative liabilities totaled **$0.56 million** (**$0.36 million** cash flow hedges, **$0.20 million** fair value hedges)[132](index=132&type=chunk) - Gains on swap transactions recognized as a component of interest expense were **$0.08 million** for Q2 2025 and **$0.16 million** for the six months ended June 30, 2025[133](index=133&type=chunk) [ (6) Borrowings](index=42&type=section&id=%286%29%20Borrowings) Borrowings (in thousands) | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :--------------------- | :------------ | :---------------- | | Federal Home Loan Bank advances | $185,000 | $185,000 | | Other borrowings | $63,086 | $63,039 | | Total borrowings | $248,086 | $248,039 | - FHLB advances remained stable at **$185.0 million**, with maturities ranging from 2025 to 2029 and interest rates from **3.69%** to **4.73%**. The Company had **$605.1 million** in remaining credit availability from the FHLB at June 30, 2025[138](index=138&type=chunk)[305](index=305&type=chunk) - Other borrowings include **$24.2 million** in debentures underlying trust preferred securities (Tier 1 capital) and **$38.9 million** in fixed-to-floating rate subordinated notes due 2032 (Tier 2 capital)[139](index=139&type=chunk)[140](index=140&type=chunk) - The Company has available federal funds lines of credit totaling **$114.5 million** and **$109.4 million** borrowing capacity from the Federal Reserve Bank, with no outstanding balances at June 30, 2025[141](index=141&type=chunk)[142](index=142&type=chunk)[306](index=306&type=chunk) [ (7) Earnings Per Share](index=44&type=section&id=%287%29%20Earnings%20Per%20Share) Earnings Per Share (in thousands, except per share) | Metric (in thousands, except per share) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income available to common stockholders | $7,978 | $5,474 | $14,591 | $10,807 | | Basic EPS | $0.46 | $0.31 | $0.83 | $0.62 | | Diluted EPS | $0.46 | $0.31 | $0.83 | $0.62 | - Basic and diluted earnings per share increased to **$0.46** for the three months ended June 30, 2025, from **$0.31** in the prior year, and to **$0.83** for the six months ended June 30, 2025, from **$0.62** in the prior year[147](index=147&type=chunk) [ (8) Commitments and Contingencies](index=44&type=section&id=%288%29%20Commitments%20and%20Contingencies) Commitments and Contingencies (in thousands) | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :--------------------- | :------------ | :---------------- | | Loan commitments | $384,801 | $329,924 | | Letters of credit | $5,438 | $5,947 | - Loan commitments increased by **$54.9 million (16.6%)** to **$384.8 million** at June 30, 2025, from **$329.9 million** at December 31, 2024[150](index=150&type=chunk) - In March 2025, the Company experienced a wire fraud incident, but it did not impact customer accounts or data. The Company recognized a **$2.9 million** receivable for unrecovered funds, believing it is collectible under insurance policies[156](index=156&type=chunk)[157](index=157&type=chunk) - The Company is subject to various legal proceedings in the ordinary course of business, but management believes the aggregate liabilities would not have a material adverse effect on its financial position[155](index=155&type=chunk)[320](index=320&type=chunk) [ (9) Fair Value of Financial Instruments and Fair Value Measurements](index=46&type=section&id=%289%29%20Fair%20Value%20of%20Financial%20Instruments%20and%20Fair%20Value%20Measurements) - Fair value measurements are categorized into a three-level hierarchy: Level 1 (quoted prices in active markets), Level 2 (observable inputs other than Level 1), and Level 3 (unobservable inputs)[159](index=159&type=chunk) Fair Value of Financial Instruments and Fair Value Measurements (in thousands) | Metric (in thousands) | June 30, 2025 Fair Value | Level 1 | Level 2 | Level 3 | | :--------------------- | :----------------------- | :------ | :------ | :------ | | **Assets** | | | | | | Cash and short-term investments | $112,145 | $112,145 | $— | $— | | Investment securities available-for-sale | $373,572 | $— | $366,761 | $6,811 | | Loans, net | $1,876,358 | $— | $— | $1,876,358 | | **Liabilities** | | | | | | Deposits | $2,552,984 | $— | $2,552,984 | $— | | Federal Home Loan Bank advances | $184,233 | $— | $184,233 | $— | - Collateral-dependent loans and other real estate owned are classified as Level 3 fair values, with a **10%** discount rate applied to appraised values to reflect estimated selling costs and market conditions[178](index=178&type=chunk)[179](index=179&type=chunk)[186](index=186&type=chunk) [ (10) Segment Information](index=55&type=section&id=%2810%29%20Segment%20Information) - The Company operates in three reportable segments: Banking (full-service financial services), Mortgage Banking (residential mortgage loan origination and sales), and Small Business Specialty Lending Division (SBA and government guaranteed loans)[192](index=192&type=chunk) Segment Profit (Q2 2025, in thousands) | Metric (in thousands) | Bank Segment Profit (Q2 2025) | Mortgage Banking Segment Profit (Q2 2025) | Small Business Specialty Lending Division Profit (Q2 2025) | Total Segment Profit (Q2 2025) | | :--------------------- | :---------------------------- | :---------------------------------------- | :--------------------------------------------------------- | :----------------------------- | | Net Interest Income | $21,319 | $44 | $1,022 | $22,385 | | Total Noninterest Income | $5,969 | $1,984 | $2,145 | $10,098 | | Total Noninterest Expense | $18,269 | $1,710 | $2,025 | $22,004 | | Segment Profit | $7,441 | $249 | $288 | $7,978 | - For the six months ended June 30, 2025, the Bank segment generated **$13.6 million** in profit, Mortgage Banking **$0.3 million**, and Small Business Specialty Lending Division **$0.7 million**, totaling **$14.6 million**[197](index=197&type=chunk) - As of June 30, 2025, the Bank segment held **$3.01 billion** in assets, Mortgage Banking **$14.3 million**, and Small Business Specialty Lending Division **$90.9 million**, totaling **$3.12 billion**[197](index=197&type=chunk) [ (11) Regulatory Capital Matters](index=59&type=section&id=%2811%29%20Regulatory%20Capital%20Matters) - As of June 30, 2025, the Company and Colony Bank were categorized as 'well-capitalized' under regulatory frameworks, exceeding all minimum requirements[206](index=206&type=chunk)[309](index=309&type=chunk) Regulatory Capital Ratios (in thousands) | Metric (in thousands) | Actual Amount (Consolidated) | Actual Ratio (Consolidated) | Well Capitalized Ratio | | :--------------------- | :--------------------------- | :-------------------------- | :--------------------- | | Total Capital to Risk-Weighted Assets | $358,717 | 16.06% | 10.00% | | Tier 1 Capital to Risk-Weighted Assets | $299,773 | 13.42% | 8.00% | | Common Equity Tier 1 Capital to Risk-Weighted Assets | $275,544 | 12.34% | 6.50% | | Tier 1 Capital to Average Assets | $299,773 | 9.61% | 5.00% | - Consolidated Common Equity Tier 1 (CET1) risk-based capital ratio was **12.34%** at June 30, 2025, down from **13.08%** at December 31, 2024, but still well above the **6.50%** well-capitalized threshold[208](index=208&type=chunk)[311](index=311&type=chunk) [ (12) Subsequent Events](index=60&type=section&id=%2812%29%20Subsequent%20Events) - On July 22, 2025, the Board declared a quarterly cash dividend of **$0.1150 per share**, payable on August 20, 2025[211](index=211&type=chunk) - On July 23, 2025, the Company announced an agreement to acquire TC Bancshares, Inc. for approximately **$86.1 million** in a combined stock-and-cash transaction. The acquisition is expected to close in Q4 2025, subject to regulatory and shareholder approvals[212](index=212&type=chunk)[213](index=213&type=chunk)[222](index=222&type=chunk) - Upon completion, the combined organization is projected to have approximately **$3.8 billion** in total assets, **$2.4 billion** in total loans, and **$3.1 billion** in total deposits, and is expected to be immediately accretive to the Company's earnings per share (excluding transaction costs)[212](index=212&type=chunk)[222](index=222&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=62&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Analyzes Colony Bankcorp's financial condition and results of operations for Q2 2025 and YE 2024, focusing on performance drivers, accounting policies, liquidity, and capital [Forward-looking Statements](index=62&type=section&id=Forward-looking%20Statements) - The report contains forward-looking statements regarding future events, financial performance, and the proposed merger with TC Bancshares, Inc., which are subject to various risks and uncertainties[217](index=217&type=chunk) - Key risk factors include economic and market conditions (inflation, interest rates), geopolitical events, compliance with capital/liquidity requirements, credit quality of the loan portfolio (real estate concentration), and the ability to manage growth and operational efficiency[218](index=218&type=chunk)[219](index=219&type=chunk) - Risks related to the proposed TCBC merger include integration challenges, potential litigation, and the realization of expected cost savings and revenue synergies[220](index=220&type=chunk) [Proposed Acquisition of TC Bancshares, Inc. and TC Federal Bank](index=65&type=section&id=Proposed%20Acquisition%20of%20TC%20Bancshares%2C%20Inc.%20and%20TC%20Federal%20Bank) - Colony Bankcorp, Inc. announced the acquisition of TC Bancshares, Inc. for approximately **$86.1 million** in a combined stock-and-cash transaction, expected to close in Q4 2025[212](index=212&type=chunk)[222](index=222&type=chunk) - The combined entity is projected to have **$3.8 billion** in total assets, **$2.4 billion** in total loans, and **$3.1 billion** in total deposits, with the transaction expected to be immediately accretive to EPS (excluding transaction costs)[212](index=212&type=chunk)[222](index=222&type=chunk) - TCBC shareholders will receive either **$21.25** in cash or **1.25 shares** of Colony's common stock per share, subject to proration (**20%** cash, **80%** stock)[214](index=214&type=chunk)[225](index=225&type=chunk) [Overview](index=66&type=section&id=Overview) Overview - Balance Sheet | Metric | June 30, 2025 | December 31, 2024 | | :----- | :------------ | :---------------- | | Total consolidated assets | $3.1 billion | $3.1 billion | | Total loans, net | $2.0 billion | $1.8 billion | | Total deposits | $2.6 billion | $2.6 billion | | Stockholders' equity | $293.9 million | $278.7 million | Overview - Income Statement | Metric | Q2 2025 | Q2 2024 | YTD Q2 2025 | YTD Q2 2024 | | :----- | :------ | :------ | :---------- | :---------- | | Net income | $8.0 million | $5.5 million | $14.6 million | $10.8 million | | Diluted EPS | $0.46 | $0.31 | $0.83 | $0.62 | - The increase in net income for both the three and six months ended June 30, 2025, was primarily driven by higher interest income (loans, investments, deposits in banks) and noninterest income, coupled with a slight decrease in interest expense, partially offset by increased noninterest expense[227](index=227&type=chunk) [Critical Accounting Policies](index=67&type=section&id=Critical%20Accounting%20Policies) - Critical accounting policies include business combinations, allowance for credit losses (ACL), and income taxes, which require significant judgment and complex estimates[233](index=233&type=chunk) - The Company adopted ASU No. 2016-13 (CECL) on January 1, 2023, which changed the methodology for estimating credit losses from an 'incurred loss' to an 'expected loss' approach, considering past events, current conditions, and reasonable forecasts[235](index=235&type=chunk) - Management's evaluation of the ACL is a critical estimate, relying on credit risk ratings, expected future cash flows, historical loss rates, and qualitative/quantitative economic factors[236](index=236&type=chunk) [Results of Operations](index=68&type=section&id=Results%20of%20Operations) [ Net Interest Income](index=68&type=section&id=Net%20Interest%20Income) Net Interest Income | Metric | Q2 2025 | Q2 2024 | YTD Q2 2025 | YTD Q2 2024 | | :----- | :------ | :------ | :---------- | :---------- | | Fully taxable equivalent net interest income | $22.6 million | $18.6 million | $43.7 million | $37.4 million | | Net interest margin | 3.12% | 2.68% | 3.02% | 2.69% | - Net interest income (FTE) increased by **$4.0 million (21.5%)** for Q2 2025 and **$6.3 million (16.8%)** for YTD Q2 2025, driven by higher income on interest-earning assets and decreased expense on interest-bearing liabilities[228](index=228&type=chunk)[241](index=241&type=chunk) - The net interest margin improved to **3.12%** for Q2 2025 and **3.02%** for YTD Q2 2025, primarily due to increased rates on loans and taxable investment securities, and decreased rates paid on deposits and other borrowings[241](index=241&type=chunk) - The yield on total interest-bearing liabilities decreased from **2.64%** in Q2 2024 to **2.42%** in Q2 2025, and from **2.61%** to **2.44%** for the six-month periods, attributed to a **100 basis point** decrease in federal funds interest rate and low-cost deposit growth[243](index=243&type=chunk) [ Provision for Credit Losses](index=71&type=section&id=Provision%20for%20Credit%20Losses) Provision for Credit Losses (in thousands) | Metric (in thousands) | Q2 2025 | Q2 2024 | YTD Q2 2025 | YTD Q2 2024 | | :--------------------- | :------ | :------ | :---------- | :---------- | | Provision for credit losses | $450 | $650 | $2,000 | $1,700 | | - on loans | $205 | $816 | $1,830 | $1,800 | | - on unfunded commitments | $245 | $(166) | $122 | $(116) | - The provision for credit losses decreased for Q2 2025 to **$0.45 million** from **$0.65 million** in Q2 2024, but increased for YTD Q2 2025 to **$2.0 million** from **$1.7 million** in YTD Q2 2024[250](index=250&type=chunk) - The Q2 2025 provision included **$0.25 million** for unfunded commitments, compared to a release of **$0.17 million** in Q2 2024[250](index=250&type=chunk) [ Noninterest Income](index=72&type=section&id=Noninterest%20Income) Noninterest Income (in thousands) | Metric (in thousands) | Q2 2025 | Q2 2024 | Change (Amount, in thousands) | Change (%) | YTD Q2 2025 | YTD Q2 2024 | Change (Amount, in thousands) | Change (%) | | :--------------------- | :------ | :------ | :-------------- | :--------- | :---------- | :---------- | :-------------- | :--------- | | Total noninterest income | $10,098 | $9,497 | $601 | 6.3% | $19,142 | $18,984 | $158 | 0.8% | | Mortgage fee income | $1,984 | $1,442 | $542 | 37.6% | $3,563 | $2,691 | $872 | 32.4% | | Gain on sales of SBA loans | $1,550 | $2,347 | $(797) | (34.0)% | $2,585 | $4,393 | $(1,808) | (41.2)% | | Loss on sales of securities | $— | $(425) | $425 | 100.0% | $— | $(980) | $980 | (100.0)% | | Insurance commissions | $766 | $420 | $346 | 82.4% | $1,235 | $885 | $350 | 39.5% | - Noninterest income increased by **$0.6 million (6.3%)** for Q2 2025 and **$0.16 million (0.8%)** for YTD Q2 2025, primarily due to higher mortgage fee income and insurance commissions, and reduced losses on securities sales[230](index=230&type=chunk)[252](index=252&type=chunk) - Mortgage fee income increased significantly by **37.6%** for Q2 2025 and **32.4%** for YTD Q2 2025 due to higher mortgage production. Gains on sales of SBA loans decreased by **34.0%** and **41.2%** respectively, due to decreased production and sales[254](index=254&type=chunk)[255](index=255&type=chunk) - Insurance commissions increased by **82.4%** for Q2 2025 and **39.5%** for YTD Q2 2025, driven by volume and the acquisition of Ellerbee Insurance Agency[258](index=258&type=chunk) [ Noninterest Expense](index=73&type=section&id=Noninterest%20Expense) Noninterest Expense (in thousands) | Metric (in thousands) | Q2 2025 | Q2 2024 | Change (Amount, in thousands) | Change (%) | YTD Q2 2025 | YTD Q2 2024 | Change (Amount, in thousands) | Change (%) | | :--------------------- | :------ | :------ | :-------------- | :--------- | :---------- | :---------- | :-------------- | :--------- | | Total noninterest expense | $22,004 | $20,330 | $1,674 | 8.2% | $42,225 | $40,727 | $1,498 | 3.7% | | Salaries and employee benefits | $12,865 | $12,278 | $587 | 4.8% | $24,770 | $24,296 | $474 | 2.0% | | Information technology expenses | $2,592 | $2,227 | $365 | 16.4% | $5,069 | $4,337 | $732 | 16.9% | - Noninterest expense increased by **$1.7 million (8.2%)** for Q2 2025 and **$1.5 million (3.7%)** for YTD Q2 2025[231](index=231&type=chunk)[263](index=263&type=chunk) - Salaries and employee benefits increased due to the Ellerbee Insurance Agency acquisition, partially offset by decreased stock award expense and increased FAS91-deferred costs[264](index=264&type=chunk) - Information technology expenses rose by **16.4%** for Q2 2025 and **16.9%** for YTD Q2 2025, mainly due to increased software expenses[266](index=266&type=chunk) [ Income Tax Expense](index=73&type=section&id=Income%20Tax%20Expense) Income Tax Expense (in thousands) | Metric (in thousands) | Q2 2025 | Q2 2024 | YTD Q2 2025 | YTD Q2 2024 | | :--------------------- | :------ | :------ | :---------- | :---------- | | Income tax expense | $2,100 | $1,500 | $3,700 | $2,900 | | Effective tax rate | 20.5% | 21.0% | 20.3% | 20.9% | - Income tax expense increased for both periods, with effective tax rates of **20.5%** for Q2 2025 and **20.3%** for YTD Q2 2025, slightly lower than the prior year due to tax-exempt income from BOLI and tax-exempt interest[270](index=270&type=chunk)[271](index=271&type=chunk) [Balance Sheet Review](index=74&type=section&id=Balance%20Sheet%20Review) [ Loans and Allowance for Credit Losses](index=74&type=section&id=Loans%20and%20Allowance%20for%20Credit%20Losses) Loans and Allowance for Credit Losses (in thousands) | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :--------------------- | :------------ | :---------------- | | Gross loans outstanding | $1,993,580 | $1,842,980 | | Allowance for credit losses on loans | $19,153 | $18,980 | | ACL as % of total loans | 0.96% | 1.03% | - Gross loans outstanding increased by **$150.6 million (8.2%)** to **$1.99 billion** at June 30, 2025, with commercial real estate loans comprising **65.1%** of the portfolio[73](index=73&type=chunk)[74](index=74&type=chunk) - The allowance for credit losses on loans increased to **$19.2 million** at June 30, 2025, from **$19.0 million** at December 31, 2024, but decreased as a percentage of total loans to **0.96%** from **1.03%**[229](index=229&type=chunk)[282](index=282&type=chunk) - Net charge-offs to average loans (annualized) for the six months ended June 30, 2025, was **0.17%**, up from **0.14%** in the prior year[288](index=288&type=chunk) [ Nonperforming Assets](index=77&type=section&id=Nonperforming%20Assets) Nonperforming Assets (in thousands) | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :--------------------- | :------------ | :---------------- | | Nonaccrual loans | $10,584 | $10,660 | | Loans past due 90 days and accruing | $107 | $152 | | Other real estate owned | $710 | $202 | | Repossessed assets | $21 | $328 | | Total nonperforming assets | $11,422 | $11,342 | | NPAs as a percentage of total assets | 0.37% | 0.36% | - Total nonperforming assets increased slightly to **$11.4 million** at June 30, 2025, from **$11.3 million** at December 31, 2024, representing **0.37%** of total assets (up from **0.36%**)[290](index=290&type=chunk)[293](index=293&type=chunk) - Nonaccrual loans decreased by **$0.08 million (0.7%)** to **$10.6 million**, while Other Real Estate Owned (OREO) increased to **$0.71 million** from **$0.20 million**[290](index=290&type=chunk)[293](index=293&type=chunk) [ Deposits](index=78&type=section&id=Deposits) Deposits (in thousands) | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :--------------------- | :------------ | :---------------- | | Noninterest-bearing deposits | $434,785 | $462,283 | | Interest-bearing deposits | $2,121,445 | $2,105,660 | | Total deposits | $2,556,230 | $2,567,943 | - Total deposits decreased by **$11.7 million (0.5%)** to **$2.56 billion** at June 30, 2025, from **$2.57 billion** at December 31, 2024, primarily due to seasonality[295](index=295&type=chunk) - Noninterest-bearing deposits comprised **17.0%** of total deposits at June 30, 2025, down from **18.0%** at December 31, 2024[295](index=295&type=chunk) - Estimated uninsured deposits were **$839.8 million (32.42%)** of total Bank deposits at June 30, 2025, slightly down from **$857.6 million (33.03%)** at December 31, 2024[297](index=297&type=chunk) [ Off-Balance Sheet Arrangements](index=78&type=section&id=Off-Balance%20Sheet%20Arrangements) - The Company is party to credit-related financial instruments with off-balance sheet risk, including commitments to extend credit and letters of credit, to meet customer financing needs[298](index=298&type=chunk) - The exposure to credit loss is represented by the contractual amount of these commitments, with collateral obtained based on management's credit evaluation[299](index=299&type=chunk) [ Liquidity](index=78&type=section&id=Liquidity) - The Company maintains strong liquidity with approximately **$1.3 billion** in available funding sources at June 30, 2025[237](index=237&type=chunk) - Primary liquidity sources include customer deposits, FHLB advances, and federal funds lines of credit. Cash and cash equivalents decreased to **$112.1 million** at June 30, 2025, from **$231.0 million** at December 31, 2024, mainly due to loan growth[302](index=302&type=chunk)[304](index=304&type=chunk) - At June 30, 2025, the Company had **$605.1 million** of additional borrowing availability with the FHLB and **$109.4 million** from the Federal Reserve Discount Window, with no outstanding balances[305](index=305&type=chunk)[306](index=306&type=chunk) [ Capital Resources](index=79&type=section&id=Capital%20Resources) - The Company and Colony Bank are required to maintain minimum capital levels and were considered 'well-capitalized' as of June 30, 2025, exceeding all regulatory requirements[308](index=308&type=chunk)[309](index=309&type=chunk) Capital Ratios | Capital Ratio | Company (June 30, 2025) | Company (December 31, 2024) | Colony Bank (June 30, 2025) | Colony Bank (December 31, 2024) | | :------------ | :---------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | CET1 risk-based capital ratio | 12.34% | 13.08% | 13.24% | 14.33% | | Tier 1 risk-based capital ratio | 13.42% | 14.26% | 13.24% | 14.33% | | Total risk-based capital ratio | 16.06% | 17.10% | 14.14% | 15.29% | | Leverage ratio | 9.61% | 9.50% | 9.48% | 9.55% | - Consolidated Common Equity Tier 1 (CET1) and total capital ratios were **12.34%** and **16.06%**, respectively, at June 30, 2025, indicating strong capital adequacy[237](index=237&type=chunk)[311](index=311&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=61&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Outlines the Company's primary market risk exposures, including credit, interest rate, and liquidity risks, managed via Asset Liability Management Policy and simulation models - The Company's primary market risk exposures are credit risk, interest rate risk, and liquidity risk, managed through an Asset Liability Management Policy and simulation models[313](index=313&type=chunk) Impact of Interest Rate Changes on Net Interest Income | Changes in rates | Increase (Decrease) in Net Interest Income from Base Scenario at June 30, 2025 | | :--------------- | :-------------------------------------------------------------------------- | | 200 basis point increase | 4.89% | | 100 basis point increase | 2.50% | | 100 basis point decrease | (0.25)% | | 200 basis point decrease | (0.57)% | - There were no material changes to market and interest rate risk disclosures during the period covered by this report compared to the 2024 Form 10-K[316](index=316&type=chunk) [Item 4. Controls and Procedures](index=61&type=section&id=Item%204.%20Controls%20and%20Procedures) Confirms effective disclosure controls and procedures as of June 30, 2025, with no material changes in internal control over financial reporting during the quarter - The Company's disclosure controls and procedures were evaluated and deemed effective as of June 30, 2025, ensuring timely and accurate reporting[317](index=317&type=chunk) - No material changes in internal control over financial reporting were identified during the quarter ended June 30, 2025[318](index=318&type=chunk) PART II – Other Information [Item 1. Legal Proceedings](index=62&type=section&id=Item%201.%20Legal%20Proceedings) Details the Company's ordinary course legal proceedings, with management assessing no material adverse effect on financial position - Various legal proceedings are pending against the Company and the Bank in the ordinary course of business[320](index=320&type=chunk) - Management's opinion is that any aggregate liabilities from these proceedings would not materially adversely affect the Company's consolidated financial position[320](index=320&type=chunk) [Item 1A. Risk Factors](index=62&type=section&id=Item%201A.%20Risk%20Factors) Refers to 2024 Form 10-K risk factors, confirming no material changes during the current reporting period - Readers should consider the risk factors discussed in the Company's 2024 Form 10-K[321](index=321&type=chunk) - No material changes to the previously disclosed risk factors occurred during the period covered by this report[322](index=322&type=chunk) [Item 2. Unregistered Sale of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](index=62&type=section&id=Item%202.%20Unregistered%20Sale%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Reports no unregistered common stock sales in Q2 2025 and details share repurchase activity under the extended buyback program - No unregistered shares of common stock were sold during the three-month period ended June 30, 2025[323](index=323&type=chunk) Issuer Purchases of Equity Securities | Period | Total Number of Shares Repurchased | Average Price Paid per Share | Maximum Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in thousands) | | :----- | :------------------------------- | :--------------------------- | :------------------------------------------------------------------------------------------- | | May 1, 2025 to May 31, 2025 | 38,134 | $15.63 | $8,525 | | June 1, 2025 to June 30, 2025 | 23,883 | $15.20 | $8,162 | | Total | 62,017 | $15.46 | $8,162 | - The Board of Directors extended the stock buyback program on December 18, 2024, authorizing repurchases of up to **$9.8 million** of outstanding common stock until the end of 2025[324](index=324&type=chunk) [Item 3. Defaults Upon Senior Securities](index=83&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) Confirms no defaults upon senior securities occurred during the reporting period - There were no defaults upon senior securities[325](index=325&type=chunk) [Item 4. Mine Safety Disclosures](index=83&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) States that mine safety disclosures are not applicable to the Company - Mine safety disclosures are not applicable to the Company[326](index=326&type=chunk) [Item 5. Other Information](index=83&type=section&id=Item%205.%20Other%20Information) Confirms no directors or executive officers adopted, terminated, or modified Rule 10b5-1 or non-Rule 10b5-1 trading arrangements in Q2 2025 - No directors or executive officers adopted, terminated, or modified Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the three months ended June 30, 2025[327](index=327&type=chunk) [Item 6. Exhibits](index=83&type=section&id=Item%206.%20Exhibits) Lists Form 10-Q exhibits, including the Merger Agreement, corporate governance documents, CEO/CFO certifications, and Interactive Data Files - Exhibits include the Agreement and Plan of Merger with TC Bancshares, Inc., corporate governance documents (Articles of Incorporation, Bylaws), CEO and CFO certifications (Sections 302 and 906 of Sarbanes-Oxley Act), and Interactive Data Files (Inline XBRL)[329](index=329&type=chunk) [Signatures](index=84&type=section&id=Signatures) Contains the duly authorized signatures of Colony Bankcorp's CEO and CFO, certifying the report's submission - The report is signed by T. Heath Fountain, Chief Executive Officer, and Derek Shelnutt, Executive Vice President and Chief Financial Officer, on August 8, 2025[332](index=332&type=chunk)
SHAREHOLDER INVESTIGATION: Halper Sadeh LLC Investigates CIO and CBAN on Behalf of Shareholders
Prnewswire· 2025-07-24 20:21
Group 1 - Halper Sadeh LLC is investigating City Office REIT, Inc. for potential violations related to its sale to MCME Carell Holdings at $7.00 per share in cash [1] - Colony Bankcorp, Inc. is involved in a merger with TC Bancshares, Inc., and Halper Sadeh LLC may seek increased consideration for shareholders [2] - The firm offers free consultations for shareholders to discuss their legal rights and options [3] Group 2 - Halper Sadeh LLC represents investors globally who have experienced securities fraud and corporate misconduct, recovering millions for defrauded investors [3]
Colony Bank(CBAN) - 2025 Q2 - Earnings Call Transcript
2025-07-24 14:00
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]
Colony Bank(CBAN) - 2025 Q2 - Earnings Call Presentation
2025-07-24 13:00
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]
Colony Bankcorp (CBAN) Q2 Earnings and Revenues Surpass Estimates
ZACKS· 2025-07-23 23:10
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]
Colony Bank(CBAN) - 2025 Q2 - Quarterly Results
2025-07-23 21:03
[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)
New Strong Sell Stocks for July 2nd
ZACKS· 2025-07-02 10:41
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]
Colony Bankcorp: Upgrading To Buy After Earnings Beat Expectations For Two Quarters Straight
Seeking Alpha· 2025-06-23 22:36
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]
Colony Bank(CBAN) - 2025 Q1 - Quarterly Report
2025-05-09 14:34
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].
Colony Bank(CBAN) - 2025 Q1 - Earnings Call Transcript
2025-04-24 17:48
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]