UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 Securities Registered Pursuant to Section 12(b) of the Act: FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission File Number: 000-12436 COLONY BANKCORP, INC. (Exact Name of Registrant ...

Financial Data and Key Metrics Changes - The company reported an improvement in earnings in Q3 2022 compared to Q2 2022, with core banking business contributing approximately 93% of earnings this quarter, up from about 75% in the previous two years [4] - Loan growth increased over 9% from the previous quarter, translating to an annualized growth rate of approximately 37% [5] - The loan-to-deposit ratio improved from 62% last quarter to 66% this quarter, up from 56% at the end of the previous year [6] - Net interest income increased by 9% from the previous quarter, with the margin rising from 3.15% to 3.25% [6] Business Line Data and Key Metrics Changes - Mortgage origination was slightly down from the previous quarter but remained strong given the current rate environment, with a noted shortage of inventory in key markets [8] - The government guaranteed business, referred to as SBSL, experienced a slight decline compared to the previous quarter, but the company expects a strong finish to the year [9] - The company is focusing on improving profitability in new business lines, which currently incur a drag of about $800,000 in net expenses per quarter [11] Market Data and Key Metrics Changes - The company is seeing loan growth across various markets, including Atlanta, Middle Georgia, Coastal Georgia, and Birmingham, with strong pipelines in these areas [18][20] - Birmingham is identified as a new market with significant growth potential, expected to compete well against larger regional banks [22] Company Strategy and Development Direction - The company aims to achieve a return on assets (ROA) of 1.20% by the end of 2024, currently at 0.75% [9] - A stock buyback plan of $12 million has been authorized, representing about 5% of shares outstanding, to take advantage of current market conditions [16] - The company is focused on organic funding strategies and will resort to wholesale funding only if necessary [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving near-term loan growth and emphasized the importance of maintaining a strong credit quality despite tightening credit boxes [14][40] - The company is monitoring the potential negative impact on its accumulated other comprehensive income (AOCI) due to declining securities values in a rising rate environment [15] - Management acknowledged the challenges posed by the current deposit environment but remains optimistic about the company's ability to grow loans and manage expenses effectively [31][32] Other Important Information - The company moved $190 million of securities to held-to-maturity to mitigate potential negative impacts from rising interest rates [15] - The cost of funds at the end of the quarter was approximately 50 to 55 basis points [59] Q&A Session Summary Question: Loan growth by market - Management noted strength in loan growth across various markets, including Birmingham, with expectations for continued growth [18][20] Question: Potential of Birmingham market - Management believes Birmingham has significant growth potential and can become as large as Middle Georgia and Coastal Georgia over time [21][22] Question: Margin expansion and funding capabilities - Management discussed the balance between loan growth and funding capabilities, indicating a focus on organic funding [27][29] Question: Operating expense outlook - Management anticipates some pressure on personnel expenses but believes overall operating expenses will remain stable in the near term [31][32] Question: Loan segments growth - Management reported loan growth across all segments, particularly in commercial real estate and mortgage categories [34][35] Question: Impact of new business lines on profitability - Management aims to eliminate the drag from new business lines by late 2023, with a focus on profitability [53] Question: Builder finance segment and inventory management - Builders in key markets are managing inventory conservatively, with a positive outlook despite challenges from rising rates [55][56]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission File Number: 000-12436 COLONY BANKCORP, INC. (Exact Name of Registrant as Specified in Its Charter) Georgia 58-1492391 (State or Other ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission File Number: 000-12436 COLONY BANKCORP, INC. (Exact Name of Registrant as Specified in Its Charter) Georgia 58-1492391 (State or Other ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from _____________to ______________ Commission File Number 000-12436 COLONY BANKCORP, INC. (Exact Name of Registrant Specified in its Charter) | --- | |--------------------------- ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 000-12436 COLONY BANKCORP, INC. (Exact Name of Registrant as Specified in Its Charter) Georgia 58-1492391 (State or Other Jurisdiction of Incorporation or Organizatio ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 000-12436 COLONY BANKCORP, INC. (Exact Name of Registrant as Specified in Its Charter) Georgia 58-1492391 (State or Other Jurisdiction of Incorporation or Organization) (I ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 000-12436 COLONY BANKCORP, INC. (Exact Name of Registrant as Specified in Its Charter) Georgia 58-1492391 (State or Other Jurisdiction of Incorporation or Organization) ( ...

Part I [Business](index=6&type=section&id=Item%201.%20Business) Colony Bankcorp, Inc. is a Georgia-based bank holding company operating through Colony Bank, providing diverse banking services with **$1.8 billion in assets** as of December 31, 2020 - Colony Bankcorp, Inc. is a bank holding company conducting business through its wholly-owned subsidiary, Colony Bank, with **28 banking offices** in Georgia[18](index=18&type=chunk)[20](index=20&type=chunk) Financial Snapshot as of December 31, 2020 | Metric | Value (USD) | | :--- | :--- | | Total Assets | $1.8 billion | | Total Loans | $1.1 billion | | Total Deposits | $1.4 billion | | Stockholder's Equity | $144.5 million | - Recent strategic activities in 2020 include the acquisition of the East Georgia Homebuilder Finance loan portfolio, a plan to close five branches (**18% of the network**) by April 2021, and the sale of the Thomaston branch which transferred **~$3 million in loans** and **~$40 million in deposits**[27](index=27&type=chunk)[28](index=28&type=chunk)[29](index=29&type=chunk) - The company is extensively regulated by federal and state authorities, including the Federal Reserve and the FDIC, which impacts its operations, capital requirements, and dividend policies[40](index=40&type=chunk)[42](index=42&type=chunk)[74](index=74&type=chunk) [General Overview and Recent Developments](index=6&type=section&id=1.1%20General%20Overview%20and%20Recent%20Developments) Colony Bankcorp, Inc. operates through Colony Bank, offering comprehensive services across **28 Georgia offices**, with 2020 marked by strategic acquisitions and branch realignment - Acquired the East Georgia Homebuilder Finance loan portfolio from Cadence on February 26, 2020, to expand its presence in the Savannah and Augusta markets[27](index=27&type=chunk) - Announced a strategic branch network realignment on December 10, 2020, involving the closure of five branches (**18% of the network**) by April 30, 2021[28](index=28&type=chunk) - Completed the sale of its Thomaston branch on December 30, 2020, transferring approximately **$3 million in loans** and **$40 million in deposits**[29](index=29&type=chunk) Quarterly Dividend Per Common Stock | Year | Dividend per Share | | :--- | :--- | | 2020 | $0.10 | | 2019 | $0.075 | [Supervision and Regulation](index=8&type=section&id=1.2%20Supervision%20and%20Regulation) The company and its bank subsidiary are extensively regulated at federal and state levels, primarily by the Federal Reserve and FDIC, covering capital adequacy and anti-money laundering - As a financial holding company, Colony is subject to comprehensive supervision by the Federal Reserve and must remain "well-capitalized" and "well-managed" to engage in a broad range of financial activities[42](index=42&type=chunk)[43](index=43&type=chunk) Well-Capitalized Minimum Ratios for Colony Bank | Capital Ratio | Minimum Requirement | | :--- | :--- | | CET1 to risk-weighted assets | 6.5% | | Tier 1 capital to risk-weighted assets | 8.0% | | Total capital to risk-weighted assets | 10.0% | | Leverage ratio | 5.0% | - As of December 31, 2020, Colony Bank's regulatory capital ratios were above the well-capitalized standards[63](index=63&type=chunk) - The company is subject to guidance on Concentrations in Commercial Real Estate (CRE) Lending, triggered if CRE loans exceed certain percentages of total risk-based capital, with policies believed to be appropriate[87](index=87&type=chunk)[89](index=89&type=chunk)[90](index=90&type=chunk) - The company will be required to adopt the Current Expected Credit Losses (CECL) accounting standard, replacing the incurred loss methodology, effective for the first quarter of 2023[67](index=67&type=chunk) [Risk Factors](index=17&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks including the COVID-19 pandemic, economic downturns, interest rate fluctuations, credit concentration, operational vulnerabilities, and extensive regulatory changes [Risks Related to Our Business](index=17&type=section&id=1A.1%20Risks%20Related%20to%20Our%20Business) The company's business faces risks from the COVID-19 pandemic, local economic downturns, interest rate fluctuations, credit concentration in commercial real estate, and operational vulnerabilities - The COVID-19 pandemic poses a significant risk, potentially leading to decreased loan repayment, lower collateral values, and reduced demand for services, with approximately **25.4% of the loan portfolio** in vulnerable sectors like hotels and restaurants[101](index=101&type=chunk)[103](index=103&type=chunk)[108](index=108&type=chunk) - The company's concentration in Georgia makes it vulnerable to local economic conditions, which could reduce demand for loans and increase delinquencies[115](index=115&type=chunk)[116](index=116&type=chunk) - The transition away from LIBOR after 2021 creates uncertainty and could adversely affect revenue, expenses, and the value of financial instruments tied to LIBOR[124](index=124&type=chunk)[125](index=125&type=chunk)[127](index=127&type=chunk) - At December 31, 2020, commercial real estate and commercial/financial/agricultural loans totaled **$824.5 million**, representing **77.8% of total loans**, increasing exposure to credit risks[134](index=134&type=chunk) - The upcoming implementation of the Current Expected Credit Loss (CECL) standard, effective in 2023, will require significant data and methodological changes and could lead to an increase in the allowance for loan losses[144](index=144&type=chunk)[145](index=145&type=chunk) [Risks Related to Legislative and Regulatory Events](index=28&type=section&id=1A.2%20Risks%20Related%20to%20Legislative%20and%20Regulatory%20Events) The company operates in a highly regulated environment, with changes in laws or adverse examination findings from regulators potentially increasing costs, restricting activities, and leading to penalties - The company is subject to extensive government regulation, and changes in laws or adverse examination findings from regulators like the Federal Reserve and FDIC could restrict activities and increase costs[190](index=190&type=chunk)[191](index=191&type=chunk) - There is a growing risk of enforcement actions related to anti-discrimination statutes (Fair Housing Act, ECOA) based on the "disparate impact" theory, which could lead to significant liability[194](index=194&type=chunk)[195](index=195&type=chunk)[196](index=196&type=chunk) - Failure to comply with anti-money laundering regulations, such as the Bank Secrecy Act, could result in serious penalties, reputational harm, and restrictions on business plans[198](index=198&type=chunk)[199](index=199&type=chunk) - The Federal Reserve's "source of strength" doctrine may require the holding company to inject capital into the bank, potentially at times when resources are unavailable, which could adversely affect the company's financial condition[200](index=200&type=chunk) [Risks Related to Our Common Stock](index=31&type=section&id=1A.3%20Risks%20Related%20to%20Our%20Common%20Stock) Investment in the company's common stock carries risks including price volatility due to limited trading volume, dividend payment uncertainty, and potential dilution from future equity issuances - The ability to pay dividends is dependent on the subsidiary Bank's results and regulatory approval, and there is no guarantee of future dividend payments[207](index=207&type=chunk)[208](index=208&type=chunk) - The common stock price may be volatile due to limited trading volume, with an average of approximately **198 trades per day** in 2020[205](index=205&type=chunk) - Future equity issuances could dilute the value of existing common stock[213](index=213&type=chunk) [Unresolved Staff Comments](index=31&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that there are no unresolved staff comments - None[215](index=215&type=chunk) [Properties](index=31&type=section&id=Item%202.%20Properties) The company's headquarters is in Fitzgerald, Georgia, with its subsidiary operating **28 banking offices** and two corporate operations offices in Georgia, mostly owned - The company operates **28 banking offices** and two corporate operations offices, with all properties owned except for three leased banking offices in Valdosta, Albany, and Douglas[216](index=216&type=chunk) [Legal Proceedings](index=32&type=section&id=Item%203.%20Legal%20Proceedings) As of December 31, 2020, the company and its subsidiary are not party to any material pending legal proceedings - There are no material pending legal proceedings to which the Company or its subsidiary are a party as of December 31, 2020[218](index=218&type=chunk) [Mine Safety Disclosures](index=32&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[219](index=219&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=32&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Colony Bankcorp, Inc.'s common stock trades on NASDAQ under "CBAN", with **9.5 million shares outstanding** as of March 22, 2021, and paid **$3.8 million in dividends** in 2020 - The company's common stock trades on the NASDAQ Global Market under the symbol "CBAN", with **9,498,783 shares outstanding** as of March 22, 2021[221](index=221&type=chunk)[222](index=222&type=chunk) Cash Dividends Paid | Year | Total Dividends Paid (in millions) | | :--- | :--- | | 2020 | $3.8 | | 2019 | $2.7 | - The company did not purchase any of its own common stock during the year ended December 31, 2020[224](index=224&type=chunk) Cumulative Total Return Performance Graph (2015-2020) | Index | 12/31/15 | 12/31/16 | 12/31/17 | 12/31/18 | 12/31/19 | 12/31/20 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Colony Bankcorp, Inc. | 100.00 | 138.51 | 154.33 | 156.23 | 179.85 | 164.94 | | NASDAQ Composite Index | 100.00 | 108.87 | 141.13 | 137.12 | 187.44 | 271.64 | | SNL Southeast Bank Index | 100.00 | 132.75 | 164.21 | 135.67 | 191.06 | 172.07 | [Selected Financial Data](index=33&type=section&id=Item%206.%20Selected%20Financial%20Data) This section summarizes key financial data, showing net income increased to **$11.8 million** in 2020, total assets grew to **$1.76 billion**, and the allowance for loan losses significantly increased to **1.14%** Selected Financial Data (in thousands, except per share data) | Metric | 2020 | 2019 | | :--- | :--- | :--- | | **Earnings Summary** | | | | Net interest income | $55,245 | $47,845 | | Provision for loan losses | $6,558 | $1,104 | | Net income | $11,815 | $10,211 | | **Per Common Share** | | | | Earnings per diluted share | $1.24 | $1.12 | | Cash dividends declared per share | $0.40 | $0.30 | | Common book value per share | $15.21 | $13.74 | | **Performance Ratios** | | | | Net interest margin | 3.50% | 3.61% | | Return on average assets | 0.70% | 0.72% | | Return on average total equity | 8.56% | 8.73% | | **Asset Quality** | | | | Total nonperforming assets (NPAs) | $10,134 | $11,147 | | Allowance for loan losses to total loans | 1.14% | 0.71% | | NPAs to total assets | 0.58% | 0.74% | | **Average Balances** | | | | Total assets | $1,691,235 | $1,411,331 | | Loans, net | $1,092,009 | $896,098 | | Total stockholders' equity | $137,954 | $117,118 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion highlights a year of significant activity, with net income rising to **$11.8 million** in 2020, driven by increased net interest and noninterest income, despite higher expenses and loan loss provisions [COVID-19 Pandemic Impact](index=37&type=section&id=7.1%20COVID-19%20Pandemic%20Impact) In response to COVID-19, the company implemented loan deferral programs and actively participated in the PPP, approving over **$137.8 million in loans** and collecting **$2.8 million in fees** - Implemented loan deferral programs for customers impacted by COVID-19, with one commercial customer in the hotel industry having an outstanding loan balance of **$1.9 million** with an active payment deferral as of December 31, 2020[252](index=252&type=chunk) - Participated in the Paycheck Protection Program (PPP), approving **1,630 loans** for an aggregate of over **$137.8 million** as of December 31, 2020, and collecting approximately **$2.8 million in related fees**[253](index=253&type=chunk) - Began participating in the new round of PPP funding authorized by the Economic Aid Act, approving and funding **410 loans** totaling **$30.4 million** as of February 28, 2021[254](index=254&type=chunk) [Results of Operations](index=38&type=section&id=7.2%20Results%20of%20Operations) For 2020, net income increased to **$11.8 million**, driven by a **$7.5 million** rise in net interest income and a **$10.2 million** increase in noninterest income, partially offset by a **$6.6 million** surge in loan loss provision Key Performance Indicators | Metric | 2020 | 2019 | | :--- | :--- | :--- | | Net Income | $11.8 million | $10.2 million | | Diluted EPS | $1.24 | $1.12 | | Taxable-equivalent Net Interest Income | $55.6 million | $48.0 million | | Net Interest Margin | 3.50% | 3.61% | - The provision for loan losses increased to **$6.6 million** in 2020 from **$1.1 million** in 2019, largely due to economic disruptions from the COVID-19 pandemic[276](index=276&type=chunk) Noninterest Income Breakdown (in thousands) | Component | 2020 | 2019 | $ Variance | | :--- | :--- | :--- | :--- | | Service charges on deposit accounts | $5,293 | $5,593 | ($300) | | Mortgage fee income | $9,149 | $3,199 | $5,950 | | Gain on sale of SBA loans | $1,600 | $— | $1,600 | | Interchange fees | $4,988 | $3,768 | $1,220 | | **Total Noninterest Income** | **$24,244** | **$14,004** | **$10,240** | Noninterest Expense Breakdown (in thousands) | Component | 2020 | 2019 | $ Variance | | :--- | :--- | :--- | :--- | | Salaries and employee benefits | $34,141 | $26,218 | $7,923 | | Acquisition related expenses | $862 | $2,733 | ($1,871) | | Information technology | $5,746 | $4,353 | $1,393 | | FHLB prepayment penalty | $925 | $— | $925 | | **Total Noninterest Expense** | **$58,301** | **$48,136** | **$10,165** | [Financial Condition Analysis](index=43&type=section&id=7.3%20Financial%20Condition%20Analysis) The company's financial condition strengthened in 2020, with total assets growing to **$1.7 billion**, the loan portfolio increasing by **9.4%**, and the allowance for loan losses significantly increased to **1.14%** Loan Portfolio Composition (in thousands) | Loan Type | Dec 31, 2020 | Dec 31, 2019 | | :--- | :--- | :--- | | Total commercial real estate | $641,484 | $636,336 | | Residential real estate | $183,021 | $194,796 | | Commercial, financial, & agricultural | $213,380 | $114,360 | | Consumer & other | $21,618 | $23,322 | | **Total loans** | **$1,059,503** | **$968,814** | - The increase in Commercial, financial, & agricultural loans was primarily due to **$101.1 million** in gross PPP loans outstanding at December 31, 2020[289](index=289&type=chunk) Nonperforming Assets (in thousands) | Metric | Dec 31, 2020 | Dec 31, 2019 | | :--- | :--- | :--- | | Nonaccrual loans | $9,128 | $9,827 | | Other real estate foreclosed | $1,006 | $1,320 | | **Total nonperforming assets** | **$10,134** | **$11,147** | | NPAs as a % of Total Assets | 0.58% | 0.74% | - The allowance for loan losses increased from **$6.9 million** (**0.71% of total loans**) at year-end 2019 to **$12.1 million** (**1.14% of total loans**) at year-end 2020, primarily due to economic uncertainties from the COVID-19 pandemic[327](index=327&type=chunk)[328](index=328&type=chunk) - Average deposits increased by **$176.6 million** in 2020, driven by government stimulus programs, PPP loan proceeds, and changes in customer savings habits due to the pandemic[338](index=338&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=57&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's most significant market risk is interest rate risk, managed by the Risk Management Committee, with a modeled **100 basis point increase** in rates projected to increase net interest income by **6.71%** - The company's primary market risk is interest rate risk, which is managed by the Risk Management Committee to achieve stability in net interest income[378](index=378&type=chunk)[379](index=379&type=chunk) Twelve Month Net Interest Income Sensitivity Analysis | Change in Short-term Interest Rates (bps) | Estimated Change in NII (2020) | Estimated Change in NII (2019) | | :--- | :--- | :--- | | +200 | 12.55% | 3.87% | | +100 | 6.71% | 2.54% | | Flat | —% | —% | | -100 | -2.91% | -4.12% | - The company is also exposed to market risk through its mortgage banking operations, as loan originations are sensitive to mortgage interest rate levels[385](index=385&type=chunk) [Financial Statements and Supplementary Data](index=57&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section includes the consolidated financial statements for 2020 and 2019, along with the independent auditor's unqualified opinion, which identified the Allowance for Loan Losses as a critical audit matter [Report of Independent Registered Public Accounting Firm](index=57&type=section&id=8.1%20Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) The independent auditor issued an unqualified opinion on the consolidated financial statements, identifying the Allowance for Loan Losses as a critical audit matter due to significant subjective judgments - The auditor issued an unqualified opinion, stating the financial statements present fairly, in all material respects, the financial position and results of operations of the Company[388](index=388&type=chunk) - The Allowance for Loan Losses was identified as a Critical Audit Matter due to the high degree of subjectivity and complex judgments required in its estimation, particularly regarding qualitative factors[395](index=395&type=chunk)[396](index=396&type=chunk) [Consolidated Financial Statements](index=59&type=section&id=8.2%20Consolidated%20Financial%20Statements) The consolidated financial statements show total assets grew to **$1.76 billion** in 2020 from **$1.52 billion** in 2019, with net income reaching **$11.8 million** for 2020 Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 31, 2020 | Dec 31, 2019 | | :--- | :--- | :--- | | Total Assets | $1,763,974 | $1,515,313 | | Net Loans | $1,047,376 | $961,951 | | Total Deposits | $1,445,027 | $1,293,742 | | Total Liabilities | $1,619,486 | $1,384,807 | | Total Stockholders' Equity | $144,488 | $130,506 | Consolidated Income Statement Highlights (in thousands) | Account | 2020 | 2019 | | :--- | :--- | :--- | | Net Interest Income | $55,245 | $47,845 | | Provision for Loan Losses | $6,558 | $1,104 | | Noninterest Income | $24,244 | $14,004 | | Noninterest Expense | $58,301 | $48,136 | | Net Income | $11,815 | $10,211 | [Notes to Consolidated Financial Statements](index=64&type=section&id=8.3%20Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of accounting policies and financial results, including the 2019 acquisition of LBC Bancshares, investment and loan portfolios, allowance for loan losses, and regulatory capital ratios - The company will adopt the CECL credit loss standard for fiscal years beginning after December 15, 2022[469](index=469&type=chunk) - In 2019, the company acquired LBC Bancshares, Inc. for total consideration of **$33.5 million**, resulting in **$15.2 million of goodwill**[471](index=471&type=chunk)[475](index=475&type=chunk) Segment Net Income/(Loss) (in thousands) | Segment | 2020 | 2019 | | :--- | :--- | :--- | | Bank | $11,176 | $13,217 | | Mortgage | $1,248 | $36 | | Small Business Specialty Lending | ($609) | ($959) | | **Total Net Income** | **$11,815** | **$10,211** | Colony Bank Regulatory Capital Ratios (Actual) | Ratio | Dec 31, 2020 | Dec 31, 2019 | | :--- | :--- | :--- | | Total Capital to Risk-Weighted Assets | 13.78% | 13.22% | | Tier I Capital to Risk-Weighted Assets | 13.53% | 12.71% | | Common Equity Tier 1 to Risk-Weighted Assets | 13.53% | 12.71% | | Tier I Capital to Average Assets | 8.49% | 9.64% | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=107&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no change in auditors in 2020 and no disagreements with them on accounting principles, financial disclosure, or auditing scope - The Company did not change auditors in 2020 and there were no disagreements with the current auditors on accounting or financial disclosure[629](index=629&type=chunk) [Controls and Procedures](index=107&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2020 - The CEO and CFO concluded that the Company's disclosure controls and procedures were effective as of the end of the period covered by the report[630](index=630&type=chunk) - Management assessed the effectiveness of internal control over financial reporting based on the COSO framework and determined it was effective as of December 31, 2020[634](index=634&type=chunk) - No changes in internal control over financial reporting occurred during the period that materially affected, or are reasonably likely to materially affect, these controls[631](index=631&type=chunk)[635](index=635&type=chunk) [Other Information](index=108&type=section&id=Item%209B.%20Other%20Information) The company reports that there is no other information to disclose for this item - None[639](index=639&type=chunk) Part III [Directors and Executive Officers and Corporate Governance](index=108&type=section&id=Item%2010.%20Directors%20and%20Executive%20Officers%20and%20Corporate%20Governance) Information for this item, including details on directors, executive officers, and the Code of Ethics, is incorporated by reference from the 2021 Proxy Statement - The required information is incorporated by reference from the Registrant's Proxy Statement for the 2021 Annual Meeting of Shareholders[642](index=642&type=chunk) [Executive Compensation](index=108&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the company's definitive Proxy Statement for the 2021 Annual Meeting of Shareholders - The required information is incorporated by reference from the Registrant's Proxy Statement for the 2021 Annual Meeting of Shareholders[643](index=643&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=108&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information on security ownership of beneficial owners and management, and equity compensation plans, is incorporated by reference from the 2021 Proxy Statement - The required information is incorporated by reference from the Registrant's Proxy Statement for the 2021 Annual Meeting of Shareholders[644](index=644&type=chunk) [Certain Relationships and Related Transactions and Director Independence](index=108&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%20and%20Director%20Independence) Information concerning related party transactions and director independence is incorporated by reference from the company's definitive Proxy Statement for the 2021 Annual Meeting of Shareholders - The required information is incorporated by reference from the Registrant's Proxy Statement for the 2021 Annual Meeting of Shareholders[645](index=645&type=chunk) [Principal Accounting Fees and Services](index=108&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information regarding fees paid to the principal accountant and services rendered is incorporated by reference from the 2021 Proxy Statement - The required information is incorporated by reference from the Registrant's Proxy Statement for the 2021 Annual Meeting of Shareholders[647](index=647&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=108&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists documents filed as part of the Form 10-K report, including consolidated financial statements and an index of exhibits, with financial statement schedules omitted - The consolidated financial statements of Colony Bankcorp, Inc. and its subsidiaries are filed as part of this report[648](index=648&type=chunk) - All financial statement schedules are omitted because the required information is either inapplicable or already presented in the financial statements or notes[648](index=648&type=chunk) - An index of exhibits required by Item 601 of Regulation S-K is included, listing documents such as corporate governance papers, employment agreements, and Sarbanes-Oxley certifications[648](index=648&type=chunk)[651](index=651&type=chunk) [Form 10-K Summary](index=110&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company reports that there is no Form 10-K summary - None[654](index=654&type=chunk)

Financial Performance - The company reported net income of $3.1 million, or $0.33 per diluted share, for Q3 2020, compared to net income of $2.5 million, or $0.27 per diluted share, for Q3 2019[236]. - Net interest income increased to $13.8 million for Q3 2020, compared to $12.7 million for Q3 2019, driven by increased loan fee income from PPP loan originations[237]. - Noninterest income for Q3 2020 was $7.6 million, an increase of $3.5 million or 86.9% compared to Q3 2019[242]. - Net income for Q3 2020 was $3.1 million, compared to $2.5 million for Q3 2019, representing an increase of 24%[250]. - Operating net income for Q3 2020 was $3.7 million, compared to $3.2 million for the same period in 2019[251]. - Adjusted earnings per diluted share for Q3 2020 was $0.39, up from $0.34 in Q3 2019[248]. Asset and Loan Metrics - As of September 30, 2020, the company had total consolidated assets of $1.8 billion, total loans of $1.1 billion, total deposits of $1.4 billion, and shareholders' equity of $140.3 million[236]. - Total assets as of Q3 2020 were $1.77 billion, compared to $1.49 billion in Q3 2019[254]. - Total loans reached $1,101.6 million as of September 30, 2020, compared to $968.8 million at December 31, 2019[1]. - Gross loans outstanding increased to $1.1 billion at September 30, 2020, up $132.8 million, or 13.7%, from $968.8 million at December 31, 2019[286]. - Average assets increased by $184.3 million, or 19.3%, and average liabilities increased by $147.9 million since Q3 2019[258]. Interest Income and Margin - The net interest margin decreased to 3.34% for Q3 2020 from 3.62% for Q3 2019, primarily due to an increase in loan production at lower rates from PPP loans[237]. - Net interest income for Q3 2020 was $13.9 million, an increase of $1.2 million, or 9.4%, compared to Q3 2019[259]. - The yield on total interest-bearing liabilities decreased from 1.23% in Q3 2019 to 0.52% in Q3 2020[260]. - Deposit costs decreased from 1.06% in Q3 2019 to 0.42% in Q3 2020, influenced by falling interest rates[261]. - Total interest-earning assets for Q3 2020 were $1.658 billion, generating $15.635 million in income, with a yield of 3.74%[262]. Loan Loss Provisions and Allowances - The provision for loan losses was $1.1 million for Q3 2020, compared to $214,000 for Q3 2019, reflecting increased risk due to the COVID-19 pandemic[239]. - As of September 30, 2020, the allowance for loan losses was $11.0 million, or 1.00% of total loans, up from $6.9 million, or 0.71% of total loans, at December 31, 2019[239]. - The allowance for loan losses to total loans ratio was 1.00% in Q3 2020, up from 0.69% in Q3 2019[252]. - The provision for loan loss for the nine months ended September 30, 2020, was $5.3 million, compared to $524,000 for the same period in 2019[298]. - The company has incorporated additional qualitative measures in the allowance for loan losses calculation due to the ongoing impact of the COVID-19 pandemic[294]. Nonperforming Assets - Nonperforming assets were $11.8 million as of September 30, 2020, or 0.67% of total assets, compared to $10.5 million, or 0.69% of total assets, at December 31, 2019[239]. - Nonperforming loans (NPLs) decreased to $9.9 million in Q3 2020 from $10.1 million in Q3 2019[252]. - Nonaccrual loans totaled $9.9 million at September 30, 2020, an increase of $0.7 million, or 8.1%, from $9.2 million at December 31, 2019[300]. - Total nonperforming assets as a percentage of total assets decreased to 0.67% at September 30, 2020, from 0.69% at December 31, 2019[300]. - Nonperforming assets (NPAs) as a percentage of total loans and other real estate owned (OREO) decreased to 1.07% as of September 30, 2020, from 1.08% as of December 31, 2019[306]. Capital and Deposits - The Company reported a Common Equity Tier 1 (CET1) risk-based capital ratio of 12.16% as of September 30, 2020, up from 10.33% as of December 31, 2019[325]. - Total capital ratio was 15.29% as of September 30, 2020, compared to 13.17% as of December 31, 2019, indicating improved capital adequacy[325]. - Total deposits increased to $1.416 billion as of September 30, 2020, compared to $1.294 billion as of December 31, 2019, representing a growth of approximately 9.5%[309]. - The Company had $76.0 million in brokered deposits as of September 30, 2020, a significant increase from $2.0 million as of December 31, 2019[310]. - Cash and cash equivalents rose to $148.8 million as of September 30, 2020, compared to $104.1 million as of December 31, 2019, reflecting an increase of 42.7%[318]. COVID-19 Impact - The company closed approximately 1,630 PPP loans for an aggregate amount exceeding $137.8 million, with loan fees collected of approximately $5.5 million[233]. - The Company had approximately $12.6 million in loans under modified terms due to COVID-19 as of September 30, 2020[307]. - The company remains focused on improving shareholder value, managing credit exposure, and enhancing the customer experience amid the ongoing pandemic[230]. - 5.8% of the loan portfolio, or $63.9 million, is in the hotel sector, which is expected to be most sensitive to the COVID-19 pandemic[301]. - The provision for loan losses for the three months ended September 30, 2020 was $1.1 million, significantly higher than $214,000 for the same period in 2019, reflecting economic disruptions due to COVID-19[270]. Expense Management - Noninterest expense for Q3 2020 was $16.3 million, up $3.0 million or 22.1% from the same period in 2019[243]. - Salaries and employee benefits increased by $1.9 million, or 26.7%, for the three months ended September 30, 2020, compared to the same period in 2019[281]. - Total noninterest expense for the third quarter of 2020 was $16.3 million, up $3.0 million, or 22.1%, from $13.4 million in the same period in 2019[280].