Colony Bankcorp (CBAN) investor relations material

Executive summary

• Achieved operating net income of $11.0 million for Q2 2026, with seventh consecutive quarter of net interest margin expansion to 3.52%.

• Operating ROA reached 1.20%, meeting internal targets and exceeding external expectations.

• Announced merger with First Reliance Bancshares, expected to close in Q4 2026, expanding presence into South Carolina.

• Tangible book value per share increased to $15.12.

• Board declared a $0.12 per share quarterly dividend.

Financial highlights

• Operating earnings per share of $0.52, up from $0.51 in Q1 2026 and $0.46 in Q2 2025.

• Net interest income (tax-equivalent) was $30.0 million in Q2 2026, up from $22.6 million in Q2 2025.

• Operating non-interest income grew to $12.2 million, up 20.4% year-over-year.

• Operating non-interest expense declined by over $500,000 from Q1, but rose year-over-year due to higher salaries and merger costs.

• Provision for credit losses was $1.90 million, up from $1.75 million in Q1 2026.

Outlook and guidance

• Loan growth is within the lower end of the annualized 8%–12% target range due to disciplined pricing and competition.

• Margin expected to see modest increases, contingent on competitive dynamics for loans and deposits.

• Expense levels anticipated to remain stable through Q3, with an increase post-First Reliance legal close, then trending back toward targets after full integration.

• Focus remains on deposit generation as the top priority amid a competitive funding environment.

• Management targets a sustainable operating return on average assets of 1.20%.