CAUTIONARY STATEMENTS This presentation contains "forward-looking statements" within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In addition, certain statements may be contained in Colony Bankcorp, Inc.'s (the "Company" or "Colony") future filings with the Securities and Exchange Commission (the "SEC"), in press releases, and in oral and written statements made by or with the app ...

Fourth Quarter and Full Year 2025 Earnings January 28, 2026 © 2026 Deluxe Corporation Brian Anderson Vice President, Strategy & Investor Relations 2 Today's Presenters Barry McCarthy President and Chief Executive Officer Chip Zint Senior Vice President and Chief Financial Officer Brian Anderson Vice President, Strategy & Investor Relations 3 Cautionary Statement Statements made in this presentation regarding Deluxe, the company's,or management's intentions, expectations, outlook, or predictions about future ...

Financial Performance Highlights - Q3 2025 revenue increased to $540.2 million, a 2.2% increase compared to Q3 2024[16] - Comparable adjusted revenue increased by 2.5% compared to Q3 2024[16] - Net income for Q3 2025 was $33.7 million, up from $8.9 million in Q3 2024[16] - Adjusted EBITDA for Q3 2025 reached $118.9 million, a 13.8% increase compared to Q3 2024, with a margin of 22.0%[16] - Comparable adjusted EPS was $1.09, a 29.8% increase compared to Q3 2024[17] Segment Performance - Data Solutions revenue increased by 46.0% compared to Q3 2024[17] - Merchant Services revenue increased by 4.8% compared to Q3 2024[17] - B2B Payments revenue decreased by 2.7% compared to Q3 2024[17] - Print revenue decreased by 5.9%, with Check revenue down by 2.1% compared to Q3 2024[17] Balance Sheet and Cash Flow - Net debt decreased by $44.7 million compared to year-end 2024[17] - Leverage ratio reached 3.3x in Q3 2025[17] - Cash flow from operations year-to-date was $168.5 million, a 25.7% increase compared to YTD Q3 2024[17] 2025 Guidance - Revenue is projected to be between $2.11 billion and $2.13 billion, flat to a 1% increase compared to 2024[46] - Adjusted EBITDA is expected to be between $425 million and $435 million, a 5% to 7% increase compared to 2024[46] - Adjusted EPS is projected to be between $3.45 and $3.60, a 6% to 10% increase compared to 2024[46] - Free cash flow is expected to be between $140 million and $150 million, a 40% to 50% increase compared to 2024[46]

Q2 2025 Financial Performance - Priority Technology Holdings' total revenue increased by 9% to $239.8 million in Q2 2025[14] - Adjusted Gross Profit increased by 13% to $92.4 million, with Adjusted Gross Profit margin increasing by 135 basis points to 38.5%[16, 17] - Adjusted EBITDA increased by 9% to $56.0 million[20] - Year-to-date revenue increased by 9% to $464.4 million[24] - Year-to-date Adjusted Gross Profit increased by 14% to $179.7 million, with Adjusted Gross Profit margin increasing by 150 basis points to 38.7%[26, 27] - Year-to-date Adjusted EBITDA increased by 10% to $107.3 million[30] Segment Performance in Q2 2025 - SMB revenue was $163.2 million, a 5% year-over-year increase, with Adjusted Gross Profit of $35.4 million and Adjusted EBITDA of $27.7 million[47] - B2B revenue was $25.0 million, a 14% year-over-year increase, with Adjusted Gross Profit of $7.3 million and Adjusted EBITDA of $3.8 million[53] - Enterprise revenue was $52.7 million, a 21% year-over-year increase, with Adjusted Gross Profit of $49.7 million and Adjusted EBITDA of $45.6 million[59] - B2B and Enterprise segments represented approximately 62% of Adjusted Gross Profit[44] Capital Structure and Guidance - As of June 30, 2025, the company's total debt balance was $935.5 million, with a net debt of $884.9 million and a net leverage ratio of 4.1x[68, 69] - The company revised its 2025 financial guidance, projecting total revenue between $970 million and $990 million, Adjusted Gross Profit between $365 million and $380 million, and Adjusted EBITDA between $222.5 million and $227.5 million[9, 74, 76]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $521 million, down 2.5% year-over-year, attributed mainly to the low-margin promotional portion of Print [4][17] - Comparable adjusted EBITDA increased by 4.5% year-over-year to $106 million, with EBITDA margin expanding by 140 basis points to just above 20% [4][5] - Comparable adjusted EPS rose by 3.5% to $0.88, and year-to-date free cash flow expanded by over 200% to more than $34 million compared to 2024 [5][17] - The leverage ratio improved to 3.5 times, with a target to be below 3 times next year [5][28] Business Segment Data and Key Metrics Changes - Data Solutions segment revenue grew by over 18% in Q2, continuing to be a standout performer [5][22] - Merchant Services revenue increased by 2.9% year-over-year to $101.4 million, with adjusted EBITDA improving by 13% to $21.7 million [18][19] - B2B payments segment revenues were $71 million, up 1.1% year-over-year, with adjusted EBITDA expanding by 11.4% [20] - Print segment revenue declined by 9% year-over-year to $281.1 million, with adjusted EBITDA declining by 3.7% but maintaining a margin of 32.2% [23][26] Market Data and Key Metrics Changes - The overall revenue ratio remains modestly weighted toward Print at 54% to 46% for the year [10] - Payments and Data segments combined have expanded year-over-year by a blended rate of just under 7.5% [10] Company Strategy and Development Direction - The company is focused on transforming from a paper payments company to a digital payments and data company, with ongoing investments in technology and partnerships [15][11] - The acquisition of CheckMatch is expected to enhance the Deluxe Payment Network, creating revenue and cost synergy opportunities [11][12] - The company aims to maintain strong margins in Print while avoiding low-margin promotional deals [8][27] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing macroeconomic uncertainty but expressed confidence in affirming revenue and earnings guidance while increasing free cash flow expectations [30][33] - The company expects to see continued growth in the Data Solutions segment and a solid exit growth rate for B2B payments as it enters 2026 [21][30] Other Important Information - The company ended Q2 with a net debt level of $1.44 billion, a reduction from previous levels, and aims for a leverage ratio of three times or better by 2026 [28][29] - A quarterly dividend of $0.30 per share was approved, payable on September 2, 2025 [30] Q&A Session Summary Question: What has driven the efficiency in the merchant business? - Management highlighted a focus on operating efficiency, pricing strategies, and new market expansions as key drivers for margin improvement [35][36] Question: Has Brian Mahoney implemented any ideas in the merchant business? - Management confirmed that Mahoney has made significant progress and is already seeing positive results from his initiatives [37][39] Question: What are the key drivers for the increase in free cash flow? - The increase is attributed to improved profitability, reduced restructuring spend, and better working capital efficiency [40][42] Question: What continues to drive growth in the Data Solutions segment? - Growth is driven by helping financial institutions target low-cost deposits and expanding into non-FI verticals [46][48] Question: What does the CheckMatch acquisition bring to the company? - CheckMatch enhances the existing Deluxe Payment Network by adding more lockboxes, allowing for digital payment processing and improved cash flow [49][51] Question: What is the outlook for future acquisition opportunities? - The company remains disciplined in capital allocation and will consider opportunities that align with its strategy for growth [60][62] Question: How is the company managing macroeconomic challenges? - Management noted a continuation of consumer hesitancy but emphasized good forecast accuracy and performance across the business [55][57]

Q2 2025 Financial Performance - Total revenue was $521.3 million, a decrease of 3.1% compared to Q2 2024[28] - Net income was $22.4 million, or $0.50 per share on a diluted basis, up from $20.5 million, or $0.46 per share in Q2 2024[28] - Adjusted EBITDA increased 4.6% to $106.5 million, with an adjusted EBITDA margin of 20.4%, up 140 basis points versus Q2 2024[28] - Adjusted diluted EPS was $0.88, up 3.5% compared to Q2 2024[28] Segment Performance - Merchant Services revenue increased 2.9% to $101.4 million, with an adjusted EBITDA margin of 21.4%, up 190 basis points year-over-year[29, 31] - B2B Payments revenue increased 1.1% to $71.0 million, with an adjusted EBITDA margin of 22.0%, up 210 basis points year-over-year[32, 34] - Data Solutions revenue increased 18.1% to $67.8 million, with an adjusted EBITDA margin of 30.1%, up 260 basis points year-over-year[35, 37] - Print revenue decreased 9.0%, with an adjusted EBITDA margin of 32.2%, expanding 180 basis points year-over-year[45, 47] Balance Sheet and Cash Flow - Net debt was $1,444.6 million as of June 30, 2025, with a net debt to adjusted EBITDA ratio of 3.5x[49] - Free cash flow for the six months ended June 30, 2025, was $52.1 million, compared to $17.6 million for the same period in 2024[49] 2025 Guidance - Revenue is projected to be between $2.090 billion and $2.155 billion, representing a decline of 1% to an increase of 2%[52] - Adjusted EBITDA is expected to be between $415 million and $435 million, an increase of 2% to 7%[52] - Adjusted EPS is projected to be between $3.25 and $3.55, flat to an increase of 9%[52] - Free cash flow is expected to be between $130 million and $150 million, an increase of 30% to 50%[52]

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]

Core Insights - Chino Commercial Bancorp reported strong financial performance for the second quarter of 2025, achieving record levels in total assets, deposits, net earnings, and total capital [3][4]. Financial Performance - Net earnings for Q2 2025 were $1.54 million, a 25.04% increase from $1.23 million in Q2 2024 [2][17]. - Year-to-date net earnings increased by 16.85% to $2.89 million compared to $2.48 million in the same period last year [2][17]. - Basic and diluted earnings per share rose to $0.48 in Q2 2025 from $0.38 in Q2 2024 [2][17]. Financial Condition - Total assets reached $481.9 million, up $15.3 million or 3.3% from $466.7 million at the end of 2024 [4][13]. - Total deposits increased by $22.7 million or 6.5% to $371.6 million from $348.9 million at the end of 2024 [4][13]. - Core deposits constituted 97.01% of total deposits as of June 30, 2025 [4][19]. Loan Quality - Gross loans increased by $1.02 million or 0.5% to $206.3 million as of June 30, 2025 [5]. - The bank reported no delinquent loans and three non-performing loans on non-accrual status [5][18]. Earnings Breakdown - Net interest income for Q2 2025 was $3.7 million, compared to $3.2 million in Q2 2024 [6]. - The net interest margin improved to 3.69% in Q2 2025 from 2.95% in Q2 2024 [6][18]. - Non-interest income totaled $1.0 million, a 23.0% increase from $822.0 thousand in Q2 2024, driven by higher service charges and fees [7][18]. Expenses and Tax - General and administrative expenses rose to $2.7 million in Q2 2025 from $2.3 million in Q2 2024, with salaries and benefits being the largest component [8]. - Income tax expense for the quarter was $614.9 thousand, reflecting a 26.7% increase compared to $485.5 thousand in the same period last year [9]. Key Financial Ratios - Annualized return on average equity was 13.88% for Q2 2025, up from 12.61% in Q2 2024 [18]. - Annualized return on average assets improved to 1.41% from 1.08% year-over-year [18]. - The core efficiency ratio decreased to 55.25% from 57.09% in the same period last year [18].

Q1 2025 Financial Performance - Total revenue reached $536.5 million, a 0.3% increase compared to Q1 2024[25] - Comparable adjusted revenue increased by 1.4% compared to Q1 2024[25] - Adjusted EBITDA increased by 3.4% to $100.2 million compared to Q1 2024[25] - Adjusted EBITDA margin increased by 40 basis points to 18.7% compared to Q1 2024[25] - Adjusted diluted EPS increased by 4.2% to $0.75 compared to Q1 2024[25] - Net income attributable to Deluxe was $14.0 million, or $0.31 per share, up from $10.8 million in Q1 2024[25,60] Segment Performance - Data Solutions revenue increased significantly by 29.3%[33] - Data Solutions adjusted EBITDA margin increased by 50 basis points to 25.5%[34] - Print segment revenue decreased by 4.0%[39] - Print segment adjusted EBITDA margin expanded by 120 basis points to 31.2%[41] Balance Sheet and Cash Flow - Net debt to adjusted EBITDA ratio remained at 3.6x[43] - Free cash flow increased significantly to $24.3 million, compared to $6.2 million in Q1 2024[43] 2025 Guidance - Revenue is projected to be between $2.090 billion and $2.155 billion, representing a comparable adjusted growth of -1% to +2%[46] - Adjusted EBITDA is expected to be between $415 million and $435 million, a growth of +2% to +7%[46] - Adjusted EPS is projected to be between $3.25 and $3.55, representing a growth of 0% to +9%[46] - Free cash flow is expected to be between $120 million and $140 million, a growth of +20% to +40%[46]