Colony Bankcorp, Inc. · NYSE:CBAN
Colony Bankcorp — Investor Presentation (May 2025)
34 slides from Colony Bankcorp's investor presentation, May 27, 2025
Slide 1: First Quarter 2025 - Mid-Quarter Update
a t J 202 5 tony DO COLONY First Quarter 2025 - Mid-Quarter Update May 2025
Slide 2: Cautionary Statements
2 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
Slide 3: Company Profile
3 (1) Community bank defined as having less than $10.0 billion in total assets and providing a full suite of consumer and commercial products. Source: FDIC (Federal Deposit Insurance Corporation) • Georgia’s largest community bank by deposit market share(1) • $3.2 billion in assets as of March 31, 2
Slide 4: 50 years of Colony Bank
Rei 5. BANKCORP, INC. YEARS Since 1975, Colony Bank has been empowering progress for individuals, families, and businesses. What began as a single vision in Fitzgerald, Georgia, has transformed into a five-decade journey marked by trust, growth, and innovation. Today, we proudly serve customers acro
Slide 5: Purpose, mission and core values
The Colony Bank logo features a symbolic lotus flower within its icon, representing the Company's strength and resilience. Paired with upward rays of sunshine, it signifies the potential for a new day and highlights our commitment to supporting our customers’ needs. This design further reflects our
Slide 6: Executive Leadership Team
6 Name Position Years In Banking Years With Colony Edward "Lee" Bagwell EVP, Chief Risk Officer and General Counsel 21 21 Leonard H. "Lenny" Bateman EVP, Chief Credit Officer 28 5 Ed Canup EVP, Chief Banking Officer 42 2 R. Dallis "D" Copeland, Jr. President 33 3 Kimberly Dockery EVP, Chief of Staff
Slide 7: Objectives and Focus
7 OBJECTIVES AND FOCUS • Achieve performance objectives in complementary lines of business • Maintain noninterest expense discipline to align with growth expectations • Achieve return on assets target of 1.00% • Focus on growing core deposits and customer relationships • Growing wallet share and rev
Slide 8: Organic Growth
8 ORGANIC GROWTH • Presence in dynamic growth markets of Atlanta, Augusta, Birmingham, North Florida and Savannah provides opportunity for above average growth • Second-tier MSA markets of Albany, Columbus, Macon and Valdosta have significant market share held by large regional and national banks, c
Slide 9: M&A Strategy
9 M&A STRATEGY • Colony seeks to benefit from industry consolidation and become the acquirer of choice in Georgia and contiguous states • 319 banks under $600 million • 87 banks between $600 million and $1.2 billion • Proactive outreach effort to generate opportunities • Management team with deep M&
Slide 10: Ellerbee Agency Acquisition
10 ELLERBEE AGENCY ACQUISITION • Expansion of Colony Insurance into additional markets of Monroe, Greensboro, and Lake Oconee • Creates a scalable operation that can continue to grow organically and by leveraging future bank acquisitions • Purchase price of $3.5 million and immediately accretive to
Slide 11: Efficiency and Scaling
11 EFFICIENCY AND SCALING • Focused on process improvement and ensuring it is easy to do business with Colony Bank • Hired a Director of Optimization with experience from a large regional bank to oversee process improvement and customer experience • Utilization of Robotic Process Automation ("RPA")
Slide 12: Innovation and Data Strategy
12 INNOVATION AND DATA STRATEGY • Successful digital banking implementation offering customers an elevated, seamless and convenient banking experience • Research and develop all potential technology-based opportunities • Increase customer wallet share through data gathering and analytics • Full impl
Slide 13: Complementary Lines of Business
13 COMPLEMENTARY LINES OF BUSINESS 1Q 2024 2Q 2024 3Q 2024 4Q 2024 1Q 2025 (Dollars in thousands) Pre-tax Profit/ Loss Pre-tax Profit/ Loss Pre-tax Profit/ Loss Pre-tax Profit/ Loss Pre-tax Profit/ Loss Mortgage $ (13) $ 180 $ 346 $ (101) $ 31 SBSL 1,109 1,674 1,819 2,242 492 Marine/RV Lending (71)
Slide 14: Small Business Specialty Lending Group
14 SMALL BUSINESS SPECIALTY LENDING GROUP (Dollars in millions) Production and Sales Volume $35.6 $25.8 $30.1 $22.2 $15.4 $24.0 $27.0 $27.2 $30.0 $12.1 Production Sales 1Q 2024 2Q 2024 3Q 2024 4Q 2024 1Q 2025 Loan Portfolio Breakdown - $88.4 million Construction 3% Commercial RE 48.3% Residential RE
Slide 15: Mortgage Division
15 MORTGAGE DIVISION (Dollars in millions) • Stable mortgage production relative to the continued market rate changes • Remain focused on secondary market products and gain on sale of mortgage loans • Continue to adjust staffing levels, delivery models and product set to maintain profitability $50.1
Slide 16: Shareholder Focused Dividend Policy
16 The current indicated annual rate is $0.46 per share, equating to a yield of 3.1%.(2) SHAREHOLDER FOCUSED DIVIDEND POLICY (1) The Board of Directors declared a dividend to be paid on its common stock on May 21, 2025, to shareholders of record as of the close of business on May 7, 2025. (2) Yield
Slide 17: Capital Ratios
17 CAPITAL RATIOS 9.2% 9.4% 9.5% 9.5% 9.4% 13.0% 13.4% 13.7% 14.3% 13.8% 15.8% 16.2% 16.5% 17.1% 16.5% 11.9% 12.3% 12.5% 13.1% 12.6% Tier One Leverage Ratio Tier One Ratio Total Risk-based Capital Ratio Common Equity Tier One Capital Ratio 1Q 2024 2Q 2024 3Q 2024 4Q 2024 1Q 2025
Slide 18: Strength in Our Liquidity Position
18 STRENGTH IN OUR LIQUIDITY POSITION Significant liquidity sources (dollars in millions) FRB Reserves $ 185.7 Other Cash and Due from Banks 31.8 Unencumbered Securities 341.7 FHLB Borrowing Capacity 589.6 Fed Fund Lines 64.5 FRB Discount Window 104.4 Total Liquidity Sources $ 1,317.7 $24.2 $24.2 $2
Slide 19: Annual Noninterest Income Mix
19 30% 35% 30% 31% 34% Service Charges & Fees Mortgage Loans & Related Fees SBA & Related Fees Insurance Division Merchant Services Wealth Management Interchange Income Other Total Non Int. Income/Total Income 2020 2021 2022 2023 2024 0% 20% 40% 60% 80% 100% ANNUAL NONINTEREST INCOME MIX *Wealth Man
Slide 20: Quarterly Noninterest Income Mix
20 34% 34% 35% 33% 30% Service Charges & Fees Mortgage Loans & Related Fees SBA & Related Fees Insurance Division Merchant Services Wealth Management Interchange Income Other Total Non Int. Income/Total Income 1Q 2024 2Q 2024 3Q 2024 4Q 2024 1Q 2025 0% 25% 50% 75% 100% QUARTERLY NONINTEREST INCOME M
Slide 21: Annual Deposit Mix and Pricing
21 0.51% 0.19% 0.32% 1.76% 2.42% Noninterest-bearing Interest-bearing Savings/money market Time Cost of interest-bearing deposits 2020 2021 2022 2023 2024 ANNUAL DEPOSIT MIX AND PRICING
Slide 22: Quarterly Deposit Mix and Pricing
22 2.36% 2.40% 2.54% 2.38% 2.22% Noninterest-bearing Interest-bearing Savings/money market Time Cost of interest-bearing deposits 1Q 2024 2Q 2024 3Q 2024 4Q 2024 1Q 2025 QUARTERLY DEPOSIT MIX AND PRICING
Slide 23: Average Deposit Balance per Account
23 AVERAGE DEPOSIT BALANCE PER ACCOUNT $14.0 $12.8 $13.0 $13.7 $13.2 $19.6 $19.6 $19.3 $20.4 $22.2 $35.0 $36.5 $37.5 $39.5 $39.1 $47.9 $48.4 $51.6 $51.2 $52.0 Noninterest-bearing Interest-bearing Savings/money market Time 1Q 2024 2Q 2024 3Q 2024 4Q 2024 1Q 2025 DEPOSIT BALANCE DATA • Commercial/busi
Slide 24: Diversity of Business Deposit Base
24 DIVERSITY OF BUSINESS DEPOSIT BASE As of March 31, 2025 Public Administration 19.6% Construction 12.3% Educational Services 8.7% Real Estate and Rental and Leasing 9.0% Other Services(except Public Administration) 7.4% Health Care and Social Assistance 4.1% Agriculture, Forestry, Fishing and Hunt
Slide 25: Uninsured Deposits
25 Uninsured Deposits Estimate Adjusted Uninsured Deposits Estimate * Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% UNINSURED DEPOSITS *Adjusted uninsured deposit estimate excludes deposits collateralized by public funds or internal accounts. All deposits are held at C
Slide 26: Loan Portfolio Breakdown
26 LOAN PORTFOLIO BREAKDOWN As of March 31, 2025 $1,921.3 million Real Estate 83.6% Consumer and Other 5.3% Commercial 10.3% Agriculture 0.8% $1,607.4 million Multifamily real estate 4.8% Residential real estate 21.5% Construction 13.0% Farmland 4.2% Nonowner occupied real estate 34.1% Owner occupie
Slide 27: Loan Portfolio
27 LOAN PORTFOLIO (Dollars in millions) Organic Loan Growth $1,859 $1,866 $1,886 $1,843 $1,921 8.65% 8.47% 8.23% 8.02% 7.72% Organic Purchased Loans Weighted average rate on new & renewed loans 1Q2024 2Q2024 3Q2024 4Q2024 1Q2025 Weighted Average Loan to Values 72.4% 72.2% 72.9% 67.0% 68.8% 45.5% 47.
Slide 28: Commercial Real Estate by Type
28 COMMERCIAL REAL ESTATE BY TYPE Retail 26% Multifamily 13% Office 14% Industrial & Warehouse 11% Hotel/Motel 11% Convenience Store 2% Daycare 3% Civic/Event Center 4% Mini-warehouse 8% Government Guaranteed:SBSL 2% Specialty and Other 6% Type Outstanding Balance Average Deal Size Retail $ 165,088
Slide 29: Repricing Schedule
29 REPRICING SCHEDULE Quarterly Fiscal Year 2028 & (Dollars in millions) 2Q 2025 3Q 2025 4Q 2025 1Q 2026 2026 2027 Beyond Loan Maturity & Repricing Schedule: Fixed Rate Loans $ 60 $ 54 $ 69 $ 78 $ 174 $ 273 $ 916 Weighted Average Rate 7.71 % 6.83 % 6.51 % 6.96 % 6.26 % 5.50 % 5.62 % Adjustable & Var
Slide 30: Investment Securities
30 INVESTMENT SECURITIES Description Book Value Percentage U.S. Agency MBS/CMO $ 337,845 39 % Municipal 256,890 30 % Private Label MBS 78,470 9 % U.S. Treasuries 97,969 12 % Corporates 53,317 6 % SBA and Asset-Backed Securities 18,801 2 % U.S. Government Agencies 16,266 2 % (Dollars in thousands) Po
Slide 31: Investment Securities
31 INVESTMENT SECURITIES (Dollars in thousands) Rating: Number of Securities Book Value Market Value Unrealized Loss AAA 22 $ 68,760 $ 61,081 $ (7,679) Aa3 1 3,061 2,815 (246) NR 4 6,649 6,582 (67) TOTAL 27 $ 78,470 $ 70,478 $ (7,992) Private Label MBS March 31, 2025 Type Book Value Market Value Unr
Slide 32: Investment Securities
32 INVESTMENT SECURITIES As of: Average Life Effective Duration Book Yield 3/31/2024 7.37 5.20 2.52% 6/30/2024 6.96 4.89 2.50% 9/30/2024 6.62 4.86 2.37% 12/31/2024 6.54 4.85 2.41% 3/31/2025 5.59 4.41 2.98% Other Portfolio Metrics Unrealized Losses on Securities (in millions) AFS/HTM Available for Sa
Slide 33: Investment Considerations
33 INVESTMENT CONSIDERATIONS • Premier Southeast community bank located in growing markets • Core deposit funded with minimal reliance on wholesale funding • Diversified sources of revenue • Improving earnings outlook as new business lines and markets mature • Upside to tangible book value as unreal
Slide 34: YEARS
2 0 2 YEARS Righthorowsith you. NYSE: CBAN