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 - Quarterly Report