Colony Bankcorp (CBAN) investor relations material

Executive summary

• Achieved operating net income of $9.5 million for Q1 2026, with sixth consecutive quarter of net interest margin expansion to 3.48%.

• Operating return on average assets reached 1.04% and operating return on average equity was 10.13%.

• Loans increased by $32.2 million, while total deposits decreased by $19.1 million compared to the previous quarter.

• Tangible book value per common share rose to $14.65.

• Successful integration of TC Federal customers and core systems, enhancing operational efficiency.

Financial highlights

• Operating net income rose to $9.5 million in Q1 2026; operating pre-provision net revenue increased to $13.9 million.

• Net interest income (tax-equivalent) rose to $29.4 million, up $3.3 million quarter-over-quarter and from $21.1 million year-over-year.

• Net interest margin improved to 3.48% from 2.93% year-over-year; core margin (excluding accelerated accretion) was 3.41%.

• Operating non-interest income was $10.7 million, up $1.7 million year-over-year.

• Operating non-interest expenses were $26 million, including $1.6 million in merger-related costs.

Outlook and guidance

• Short-term objectives include achieving a 1.20% return on assets and growing core deposits.

• Loan growth for 2026 projected at around 8%, at the lower end of the 8%-12% target, due to early payoffs and lighter demand.

• Anticipate additional cost savings and improved operating leverage as merger-related expenses subside.

• Focus on scaling complementary business lines and leveraging industry consolidation.

• Margin expected to trend slightly lower in Q2 without accelerated accretion, but core margin should remain stable.