Colony Bank(US:CBAN)2025-10-23 14:00Financial Data and Key Metrics Changes - Operating net income increased by $252,000 from the prior quarter, attributed to higher net interest income and operating non-interest income, offset by increased provision and operating non-interest expenses [14] - Net interest income rose by $314,000 compared to the prior quarter, driven by continued asset repricing and loan growth [14] - Net interest margin increased by five basis points from the prior quarter, with expectations for further growth due to the Fed rate cuts [15][14] - Tangible book value per share increased to $14.20 from $12.76 a year ago, reflecting consistent growth in tangible capital [23] Business Line Data and Key Metrics Changes - Non-interest income increased over $1 million from the prior quarter, with significant contributions from service charge and fee income, as well as interchange income [6][16] - Mortgage and government-guaranteed lending (SBSL) activity slowed, with mortgage production down slightly compared to the second quarter [23] - Pre-tax income for both merchant services and Colony Wealth Advisors increased significantly from the prior quarter, indicating strong performance in these business lines [24] Market Data and Key Metrics Changes - Loan growth for the quarter was around 9% annualized, lower than the first and second quarters, but still around a 14% annualized growth rate for the year [5] - Total deposits increased by $28.1 million during the quarter, reflecting strategic use of brokered funding [21] Company Strategy and Development Direction - The company is focused on strategic investments for future growth while maintaining margin improvement [5] - The pending merger with TC Bancshares, Inc. and TC Federal Bank is progressing as planned, with expectations for closure in the fourth quarter [9][10] - The company is optimistic about future M&A opportunities and is actively seeking strategic fits [10][11] Management's Comments on Operating Environment and Future Outlook - Management does not foresee a material impact from the government shutdown on the business or credit quality, although they are monitoring the situation closely [8][28] - The company expects loan growth to moderate but remain within the long-term target of 8% to 12% annually [5][6] - Management expressed confidence in balancing cost control with strategic investments for long-term growth [17] Other Important Information - Operating expenses increased by $624,000 quarter over quarter due to investments in talent and growth initiatives [16] - A wire fraud incident resulted in a recognized loss of $1.25 million related to disputed insurance coverage [18] Q&A Session Summary Question: Given the disruption in D.C., are there any impacts on borrowers and the local economy? - Management does not see a significant impact at this time and has provided resources to customers to mitigate potential issues [28] Question: What is the average roll-on versus roll-rate this quarter, and how does the NIM outlook look? - The roll-off yields were in the 5% range, with a new and renewed rate of 7.83% for the quarter, indicating potential for net interest margin growth [29][30] Question: Is there any NDFI loan exposure? - Management confirmed there is no meaningful exposure to NDFI loans, focusing instead on relationship-based lending [31]