Colony Bankcorp Reports Fourth Quarter 2025 Results Increases Quarterly Cash Dividend to $0.12 Per Share

FITZGERALD, Ga., January 28, 2026--(BUSINESS WIRE)--Colony Bankcorp, Inc. (NYSE: CBAN) ("Colony" or the "Company") today reported financial results for the fourth quarter of 2025. Financial highlights are shown below.

Financial Highlights:

• Net income was $7.8 million, or $0.42 per diluted share, for the fourth quarter of 2025, compared to $5.8 million, or $0.33 per diluted share, for the third quarter of 2025, and $7.4 million, or $0.42 per diluted share, for the fourth quarter of 2024.

• Operating net income was $8.9 million, or $0.48 of adjusted earnings per diluted share, for the fourth quarter of 2025, compared to $8.2 million, or $0.47 of adjusted earnings per diluted share, for the third quarter of 2025, and $7.8 million, or $0.44 of adjusted earnings per diluted share, for the fourth quarter of 2024. (See Reconciliation of Non-GAAP Measures).

• Provision for credit losses of $1.65 million was recorded in the fourth quarter of 2025 compared to $900,000 in the third quarter of 2025, and $650,000 in the fourth quarter of 2024.

• Total loans, excluding loans held for sale, were $2.38 billion at December 31, 2025, an increase of $344.2 million, or 16.90%, from the prior quarter. Organic loan growth was 10.5% when compared to December 31, 2024 and flat compared to the prior quarter.

• Total deposits were $3.07 billion and $2.58 billion at December 31, 2025 and September 30, 2025, respectively, an increase of $483.2 million. Organic deposit growth, excluding wholesale deposits, was flat for the year and $24.3 million in the fourth quarter.

• Mortgage production was $89.5 million, and mortgage sales totaled $68.1 million in the fourth quarter of 2025 compared to $87.3 million and $65.1 million, respectively, for the third quarter of 2025.

• Small Business Specialty Lending ("SBSL") closed $29.1 million in Small Business Administration ("SBA") loans and sold $16.8 million in SBA loans in the fourth quarter of 2025 compared to $28.4 million and $18.2 million, respectively, for the third quarter of 2025.

The Company also announced that on January 28, 2026, the Board of Directors declared a quarterly cash dividend of $0.12 per share, to be paid on its common stock on February 25, 2026, to shareholders of record as of the close of business on February 11, 2026. The Company had 21,251,424 shares of its common stock outstanding as of January 26, 2026.

"We are pleased to deliver another consecutive quarter of improved performance and a strong finish to 2025. The discipline and effort demonstrated by our team continue to translate into solid results and steady progress toward our long-term goals," said Heath Fountain, Chief Executive Officer. "Our results this quarter reflect the effectiveness of our strategic execution across the organization and our ability to carry that momentum into 2026."

"We are also proud to have completed the merger with TC Federal, a significant milestone that advances our growth and expands what we can achieve together as a combined institution. We welcome our new team members and expect the planned systems conversion to fully integrate customers in the first quarter.

"Margin continues to expand at a steady pace and we are well positioned to see that continue over the next year. Credit quality remains stable overall, despite some quarter-to-quarter variability in the fourth quarter. The portfolio continues to reflect solid fundamentals, and we remain focused on maintaining strong credit discipline. Additionally, fourth quarter noninterest income performed well compared to the same quarter in the prior year, reflecting strength in our diversified revenue streams.

"The year ahead presents tremendous opportunities for growth and progress. We are energized by the potential to build on our accomplishments, further strengthen our business, and make a positive impact for our customers and communities."

Balance Sheet

• Total assets were $3.74 billion at December 31, 2025, an increase of $582.7 million from September 30, 2025.

• Total loans, excluding loans held for sale, were $2.38 billion at December 31, 2025, an increase of $344.2 million from September 30, 2025.

• Total deposits were $3.07 billion and $2.58 billion at December 31, 2025 and September 30, 2025, respectively, an increase of $483.2 million. Increases were seen in interest-bearing demand deposits of $121.2 million, savings and money market deposits of $143.5 million and time deposits of $133.8 million, from September 30, 2025 to December 31, 2025. Total deposits increased $499.6 million from the period ended December 31, 2024, with increases seen in interest-bearing demand deposits of $118.5 million, savings and money market deposits of $100.2 million and time deposits of $216.4 million.

• The primary driver of increases in assets, loans held for investment, and deposits was the acquisition of TC Bancshares, Inc. ("TC Federal") which closed on December 1, 2025.

• Total borrowings at December 31, 2025 totaled $258.1 million, an increase of $10.0 million compared to September 30, 2025.

Capital

• Colony continues to maintain a strong capital position, with ratios that exceed regulatory minimums required to be considered as "well-capitalized."

• Under the Company’s approved stock repurchase program, a total of 46,973 shares of the Company common stock were repurchased during the fourth quarter of 2025 at an average price of $16.50 per share and a total value of $775,064 thousand.

• Preliminary tier one leverage ratio, tier one capital ratio, total risk-based capital ratio and common equity tier one capital ratio were 10.78%, 13.60%, 15.95%, and 12.68%, respectively, at December 31, 2025.

Fourth Quarter and Full Year 2025 Results of Operations

• Net interest income, on a tax-equivalent basis, totaled $26.0 million for the fourth quarter ended December 31, 2025 compared to $20.6 million for the same period in 2024. Net interest income, on a tax-equivalent basis, for the twelve months ended December 31, 2025 totaled $92.6 million, compared to $76.8 million for the twelve months ended December 31, 2024. For both periods, increases occurred in income on interest earning assets, and decreases were seen in interest bearing liabilities. Income on interest earning assets increased $4.7 million to $40.9 million for the fourth quarter of 2025 compared to the same period in 2024. Expense on interest bearing liabilities decreased $684,000 to $14.8 million for the fourth quarter of 2025 compared to the same period in 2024. Income on interest earning assets increased $12.8 million to $150.7 million for the twelve month period ended December 31, 2025 compared to the same period in 2024. Expense on interest bearing liabilities decreased $3.1 million, to $58.1 million for the twelve month period ended December 31, 2025 compared to the same period in 2024.

• Net interest margin for the fourth quarter of 2025 was 3.32% compared to 2.84% for the fourth quarter of 2024. Net interest margin was 3.14% for the twelve months ended December 31, 2025 compared to 2.72% for the twelve months ended December 31, 2024. The increase for both periods was primarily related to increases in interest earning assets period over period, partially offset by the rate decreases in interest bearing liabilities.

• Noninterest income totaled $11.0 million for the fourth quarter ended December 31, 2025, an increase of $738,000, or 7.16%, compared to the same period in 2024. Noninterest income totaled $40.3 million for the twelve months ended December 31, 2025, an increase of $905,000, or 2.30%, compared to the same period in 2024. Increases for both periods occurred in service charges on deposits, mortgage fee income, interchange fees, insurance commissions, decreases in losses on the sales of investment securities and an increase in wealth advisor income included in other noninterest income, partially offset by decreases in gains on sales of SBA loans.

• Noninterest expense totaled $25.7 million for the fourth quarter ended December 31, 2025, compared to $21.3 million for the same period in 2024. Noninterest expense totaled $92.5 million for the twelve months ended December 31, 2025, compared to $82.8 million for the same period in 2024. These increases were a result of increases in salaries and employee benefits, occupancy and equipment, information technology expenses, professional fees, acquisition related expenses related to the acquisition of TC Bancshares, Inc. and a loss related to a wire fraud incident included in other noninterest expense.

Asset Quality

• Nonperforming assets totaled $24.7 million and $15.2 million at December 31, 2025 and September 30, 2025, respectively, an increase of $9.5 million which includes additions from the TC Federal acquisition.

• Other real estate owned and repossessed assets totaled $1.2 million at December 31, 2025 and $870,000 at September 30, 2025.

• Net loans charged-off were $1.6 million, or 0.30% of average loans for the fourth quarter of 2025, compared to $1.8 million, or 0.36% for the third quarter of 2025.

• The credit loss reserve was $23.0 million, or 0.97% of total loans, at December 31, 2025, compared to $18.1 million, or 0.89% of total loans at September 30, 2025. The Company adopted ASU 2025-08 during the fourth quarter of 2025. The adoption permits the recognition of an initial allowance for credit losses on all loans acquired from TC Federal Bank following the merger. The estimated initial allowance for credit losses related to the TC Federal Bank acquired loan portfolio was $4.6 million.

Earnings call information

The Company will host an earnings conference call at 9:00 a.m. ET on Thursday, January 29, 2026, to discuss the recent results and answer relevant questions. The conference call can be accessed by dialing 1-800-549-8228 and using the Conference ID: 10460. A replay of the call will be available until Thursday, February 5, 2026. To listen to the replay, dial 1-888-660-6264 and entering the passcode 10460#.

About Colony Bankcorp

Colony Bankcorp, Inc. is the bank holding company for Colony Bank. Founded in Fitzgerald, Georgia in 1975, Colony operates locations throughout Georgia as well as in Birmingham, Alabama; Tallahassee, Florida; and the Florida Panhandle. Colony Bank offers a range of banking solutions for personal and business customers. In addition to traditional banking services, Colony provides specialized solutions including mortgage lending, government guaranteed lending, consumer insurance, wealth management, credit cards and merchant services. Colony’s common stock is traded on the New York Stock Exchange ("NYSE") under the symbol "CBAN." For more information, please visit www.colony.bank. You can also follow the Company on social media.

Forward-Looking Statements

Certain statements contained in this press release that are not statements of historical fact constitute "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 the Company’s future filings with the Securities and Exchange Commission (the "SEC"), in press releases, and in oral and written statements made by or with the approval of the Company that are not statements of historical fact and constitute "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. Examples of forward-looking statements include, but are not limited to: (i) projections and/or expectations of revenues, income or loss, earnings or loss per share, the payment or nonpayment of dividends, capital structure and other financial items; (ii) statement of plans and objectives of Colony Bankcorp, Inc. or its management or Board of Directors, including those relating to products or services; (iii) statements of future economic performance; (iv) statements regarding growth strategy, capital management, liquidity and funding, and future profitability; (v) statements relating to the timing, benefits, costs, and synergies of the recently completed acquisition of TC Bancshares, Inc. ("TC Bancshares") (the "Merger"), and (vi) statements of assumptions underlying such statements. Words such as "may", "will", "anticipate", "assume", "should", "support", "indicate", "would", "believe", "contemplate", "expect", "estimate", "continue", "further", "plan", "point to", "project", "could", "intend", "target" and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements.

Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties. Factors that might cause such differences include, but are not limited to: the impact of current and future economic conditions, particularly those affecting the financial services industry, including the effects of declines in the real estate market, tariffs or trade wars (including the resulting reduced consumer spending, lower economic growth or recession, reduced demand for U.S. exports, disruptions to supply chains, and decreased demand for other banking products and services), high unemployment rates, inflationary pressures, changes in interest rates (including the impact of prolonged elevated interest rates on our financial projections and models) and slowdowns in economic growth, as well as the financial stress on borrowers as a result of the foregoing; the risk of reductions in benchmark interest rates and the resulting impacts on net interest income; potential impacts of adverse developments in the banking industry highlighted by high-profile bank failures, including impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto; risks arising from negative media coverage and perceived instability in the banking industry; risks arising from perceived instability in the banking sector; the risks of changes in interest rates and their effects on the level, cost, and composition of, and competition for, deposits, loan demand and timing of payments, the values of loan collateral, securities, and interest sensitive assets and liabilities; the ability to attract new or retain existing deposits, to retain or grow loans or additional interest and fee income, or to control noninterest expense; the effect of pricing pressures on the Company’s net interest margin; the failure of assumptions underlying the establishment of reserves for possible credit losses, fair value for loans and other real estate owned; changes in real estate values; the Company’s ability to implement its various strategic and growth initiatives; increased competition in the financial services industry, particularly from regional and national institutions, as well as from fintech companies; economic conditions, either nationally or locally, in areas in which the Company conducts operations being less favorable than expected; changes in the prices, values and sales volumes of residential and commercial real estate; developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance; legislation or regulatory changes which adversely affect the ability of the consolidated Company to conduct business combinations or new operations; adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions, including as a result of the Company’s participation in and execution of government programs, those related to credit card interest rates, and legislative, regulatory or supervisory actions related to so-called "de-banking," including any new prohibitions, requirements or enforcement priorities that could affect customer relationships, compliance obligations, or operational practices; significant turbulence or a disruption in the capital or financial markets and the effect of a fall in the stock market prices on our investment securities; the effects of war or other conflicts, including civil unrest; general risks related to the Company’s merger and acquisition activity, including risks associated with integrating and realizing the expected financial benefits of previous or pending acquisitions, and the Company’s pursuit of future acquisitions; risks associated with the recent Merger, including the risk that the cost savings and any revenue synergies may not be realized or take longer than anticipated to be realized as well as disruption with customers, suppliers, employee or other business partners relationships; the risk of successful integration of TC Bancshares’ business into the Company; the reaction of each of the Company’s and TC Bancshares’ customers, suppliers, employees or other business partners to the Merger; the risk that the integration of TC Bancshares’ operations into the operations of the Company will be materially delayed or will be more costly or difficult than expected; the timing and achievement of expected cost reductions following the Merger; the timing and achievement of the recovery of the reduction of tangible book value resulting from the Merger; general competitive, economic, political, and market conditions; the impact of emerging technologies, such as generative artificial intelligence; fraud or misconduct by internal or external actors, and system failures, cybersecurity threats or security breaches and the cost of defending against them; a deterioration of the credit rating for U.S. long-term sovereign debt, actions that the U.S. government may take to avoid exceeding the debt ceiling, and uncertainties surrounding debt ceiling and the federal budget; and general competitive, economic, political and market conditions or other unexpected factors or events. These and other factors, risks and uncertainties could cause the actual results, performance or achievements of the Company to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. Many of these factors are beyond the Company’s ability to control or predict.

Forward-looking statements speak only as of the date on which such statements are made. These forward-looking statements are based upon information presently known to the Company’s management and are inherently subjective, uncertain and subject to change due to any number of risks and uncertainties, including, without limitation, the risks and other factors set forth in the Company’s filings with the Securities and Exchange Commission, the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, under the captions "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors," and in the Company’s quarterly reports on Form 10-Q and current reports on Form 8-K. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events, except as required by applicable law. Readers are cautioned not to place undue reliance on these forward-looking statements.

Explanation of Certain Unaudited Non-GAAP Financial Measures

The measures entitled operating noninterest income, operating noninterest expense, operating net income, adjusted earnings per diluted share, operating return on average assets, operating return on average equity, tangible book value per common share, tangible equity to tangible assets, operating efficiency ratio, operating net noninterest expense to average assets and pre-provision net revenue are not measures recognized under U.S. generally accepted accounting principles ("GAAP") and therefore are considered non-GAAP financial measures. The most comparable GAAP measures are noninterest income, noninterest expense, net income, diluted earnings per share, return on average assets, return on average equity, book value per common share, total equity to total assets, efficiency ratio, net noninterest expense to average assets and net interest income before provision for credit losses, respectively. Operating noninterest income excludes loss on sales of securities. Operating noninterest expense excludes acquisition-related expenses, severance costs and loss related to wire fraud incident. Operating net income, operating return on average assets, operating return on average equity and operating efficiency ratio all exclude acquisition-related expenses, severance costs, loss on sales of securities and loss related to wire fraud incident from net income, return on average assets, return on average equity and efficiency ratio, respectively. Operating net noninterest expense to average assets ratio excludes from net noninterest expense, severance costs, acquisition-related expenses, loss on sales of securities and loss related to wire fraud incident. Acquisition-related expenses includes fees associated with acquisitions and vendor contract buyouts. Severance costs includes costs associated with termination and retirement of employees. Adjusted earnings per diluted share includes the adjustments to operating net income. Tangible book value per common share and tangible equity to tangible assets exclude goodwill and other intangibles from book value per common share and total equity to total assets, respectively. Pre-provision net revenue is calculated by adding noninterest income to net interest income before provision for credit losses, and subtracting noninterest expense.

Management uses these non-GAAP financial measures in its analysis of the Company's performance and believes these presentations provide useful supplemental information, and a clearer understanding of the Company's performance, and if not provided would be requested by the investor community. The Company believes the non-GAAP measures enhance investors' understanding of the Company's business and performance. These measures are also useful in understanding performance trends and facilitate comparisons with the performance of other financial institutions. The limitations associated with operating measures are the risk that persons might disagree as to the appropriateness of items comprising these measures and that different companies might calculate these measures differently.

These disclosures should not be considered an alternative to GAAP. The computations of operating noninterest income, operating noninterest expense, operating net income, adjusted earnings per diluted share, operating return on average assets, operating return on average equity, tangible book value per common share, tangible equity to tangible assets, operating efficiency ratio, operating net noninterest expense to average assets and pre-provision net revenue and the reconciliation of these measures to noninterest income, noninterest expense, net income, diluted earnings per share, return on average assets, return on average equity, book value per common share, total equity to total assets, efficiency ratio, net noninterest expense to average assets and net interest income before provision for credit losses are set forth in the table below.