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]

Company Profile & Strategy - Colony Bank had $3.2 billion in assets as of March 31, 2025 and operates across nearly 40 locations in Georgia, Alabama, and Florida[12] - The company aims to achieve a return on assets target of 1% and grow its customer base by 8-12% per year[22] - Colony Bank intends to return to an 8-12% organic growth run rate by the end of 2025[23] - The company seeks to benefit from industry consolidation and become an acquirer of choice in Georgia and contiguous states, noting 319 banks under $600 million and 87 banks between $600 million and $1.2 billion[26] Financial Performance & Metrics - The company's Small Business Specialty Lending (SBSL) group's pre-tax profit was $492 thousand in 1Q 2025[30] - The mortgage division had stable production and sales volume, remaining focused on secondary market products[36] - The current indicated annual dividend rate is $0.46 per share, equating to a yield of 3.1% based on the closing stock price on April 21, 2025 of $14.74[39] - Total liquidity sources as of March 31, 2025, were $1.3177 billion, including $185.7 million in FRB Reserves and $341.7 million in unencumbered securities[43] Loan & Deposit Portfolio - As of March 31, 2025, the loan portfolio totaled $1.9213 billion, with real estate comprising 83.6% of the portfolio[62] - Commercial/business accounts represent 13.6% of accounts and 45.1% of total deposits balance as of March 31, 2025[55]

Financial Data and Key Metrics Changes - The company reported a first quarter annualized loan growth of 17%, which was better than expected, with future quarters likely to normalize to a range of 8% to 12% [5][6] - Total deposits increased by approximately $54.6 million during the quarter, reflecting an annualized growth of about 8.5% [6][21] - Operating net income declined by $1.1 million in the first quarter, primarily due to seasonal declines in noninterest income [14] - Net interest income increased by approximately $480,000, driven by loan growth and a reduction in the cost of funds [15] - The net interest margin increased by 9 basis points to 2.93% from 2.84% in the prior quarter [15] Business Line Data and Key Metrics Changes - Noninterest income decreased by about $1.7 million, largely due to reduced activity in the SBSL division [16] - Revenues in the mortgage division were slightly higher, and the division remained profitable [16] - The company is optimistic about the SPSL division, expecting a return to previous levels of activity as the year progresses [32] Market Data and Key Metrics Changes - The company noted that it has not seen significant impacts on its loan portfolio from recent market volatility and trade dynamics [10][11] - Nonperforming assets were reported at $12.4 million, with classified loans at $26.4 million, indicating historically low levels [19] Company Strategy and Development Direction - The company is focused on growing its noninterest income through acquisitions, such as the recent acquisition of the LOB agency [7][8] - A new credit card program for both consumer and commercial markets was launched, aimed at generating significant interest income over time [9] - The company is actively monitoring market conditions and is prepared to engage in M&A activities as opportunities arise [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate current market conditions, emphasizing proactive communication with customers [10][11] - There is an expectation of continued loan growth, although it may not match the high levels seen in the first quarter [20] - Management remains optimistic about the long-term outlook despite short-term disruptions due to trade policies [31] Other Important Information - The company repurchased 38,000 shares at an average price of $16.45 as part of its stock repurchase program [23] - A quarterly cash dividend of 11.5¢ per share was declared by the board [23] - The company plans to establish an active shelf registration for future capital management flexibility [24] Q&A Session Summary Question: What are the trends and expectations for SPSL, loan growth, and asset quality? - Management noted that they are vigilant regarding the impact of tariffs and trade policies on customers, but customers have become more aware of their supply chains post-COVID, which is expected to mitigate disruptions [29][30][31] - There is good activity in the SPSL pipeline, and management expects a return to historical levels of production [32] Question: What net interest margin impact do you expect from a 25 basis point rate cut? - Management believes they are well-positioned for potential rate cuts, which could improve margins through repricing of assets and a reduction in the cost of funds [33][34] - The company anticipates that earning asset yields will increase while costs decrease, positively impacting overall margins [36]

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]

Financial Performance - Net income for Q1 2025 was $6.6 million, or $0.38 per diluted share, compared to $7.4 million, or $0.42 per diluted share in Q4 2024, and $5.3 million, or $0.30 per diluted share in Q1 2024[7]. - Net income for Q1 2025 was $6,613,000, down 11.03% from $7,432,000 in Q4 2024[24]. - Net income for Q1 2025 was $6,613,000, compared to $5,333,000 in Q1 2024, reflecting an increase of 24.0%[29]. - Earnings per share for Q1 2025 were $0.38, up from $0.30 in Q1 2024, representing a growth of 26.7%[29]. - Earnings per share for Q1 2025 were $0.38, down from $0.42 in Q4 2024, reflecting a decrease of 9.5%[30]. - Operating net income for Q1 2025 was $6,613,000, up from $7,756,000 in Q4 2024[22]. Loan and Deposit Growth - Total loans reached $1.92 billion at March 31, 2025, an increase of $78.3 million, or 4.25%, from the previous quarter[7]. - Total deposits increased to $2.62 billion at March 31, 2025, up by $54.6 million from $2.57 billion at December 31, 2024[11]. - Total deposits increased to $2,622,531,000 in Q1 2025 from $2,567,943,000 at the end of 2024, a rise of 2.1%[28]. - Core loans for Q1 2025 reached $1,808,879,000, an increase of 5.1% from $1,720,444,000 in Q4 2024[33]. Income and Expense Analysis - Net interest income for Q1 2025 was $21.1 million, compared to $18.8 million for the same period in 2024, reflecting an increase in interest earning assets[11]. - Noninterest income totaled $9.0 million for Q1 2025, a decrease of $443,000, or 4.67%, compared to Q1 2024[11]. - Operating noninterest income for Q1 2025 was $9,044,000, a decrease from $10,710,000 in Q4 2024[22]. - Operating noninterest expense for Q1 2025 was $20,221,000, compared to $21,272,000 in Q4 2024[22]. - Total noninterest expenses for Q1 2025 were $20,221,000, slightly down from $20,397,000 in Q1 2024, a decrease of 0.9%[29]. Credit Quality and Loss Provisions - The provision for credit losses was $1.5 million in Q1 2025, compared to $650,000 in Q4 2024 and $1.0 million in Q1 2024[7]. - Nonperforming assets increased to $13.0 million at March 31, 2025, from $11.3 million at December 31, 2024[11]. - The credit loss reserve was $20.0 million, or 1.04% of total loans, at March 31, 2025, compared to $19.0 million, or 1.03% of total loans at December 31, 2024[11]. - Total nonperforming loans (NPLs) rose to $12,478,000 in Q1 2025, up 15.39% from $10,812,000 in Q4 2024[25]. - The provision for credit losses in Q1 2025 was $1,500,000, significantly higher than $650,000 in Q4 2024, indicating increased risk management measures[30]. Operational Efficiency - Efficiency ratio for Q1 2025 was 67.41%, an improvement from 67.80% in Q4 2024[23]. - Operating return on average assets for Q1 2025 was 0.85%, slightly down from 0.99% in Q4 2024[22]. - Operating net noninterest expense to average assets ratio for Q1 2025 was 1.44%, compared to 1.35% in Q4 2024[23]. - The efficiency ratio improved to 67.41% in Q1 2025 from 69.11% in Q4 2024, indicating better cost management[24]. Asset Growth - Total assets increased to $3,171,825,000 in Q1 2025 from $3,109,782,000 in Q4 2024, reflecting a growth of 1.93%[25]. - Total assets as of March 31, 2025, reached $3,171,825,000, up from $3,109,782,000 at the end of 2024, indicating a growth of 2.0%[28]. - Tangible book value per common share increased to $13.46 in Q1 2025 from $12.95 in Q4 2024[22]. Dividend Declaration - The company declared a quarterly cash dividend of $0.1150 per share, to be paid on May 21, 2025[4]. - Cash dividends declared per share increased to $0.1150 in Q1 2025 from $0.1125 in Q4 2024, reflecting a 2.22% increase[24]. Acquisition - Colony completed the acquisition of the Ellerbee Agency in April 2025, which is expected to enhance its insurance operations[6].

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.