Colony Bankcorp (CBAN) investor relations material

Executive summary

• Net income rose to $8.0 million ($0.46 per diluted share) in Q2 2025, up from $5.5 million ($0.31) in Q2 2024, reflecting strong core earnings and operating leverage.

• Announced a definitive merger agreement with TC Bancshares, Inc., a stock-and-cash deal valued at $86.1 million, expected to close in Q4 2025 and be immediately accretive to EPS, expanding presence in South Georgia and North Florida.

• Operates nearly 40 locations across Georgia, Alabama, and Florida, with $3.12 billion in assets as of June 30, 2025.

• Celebrated 50th anniversary by ringing the NYSE opening bell, marking a significant milestone and emphasizing community banking and innovation.

• Focused on organic growth, efficiency, and leveraging technology for customer experience and operational improvements.

Financial highlights

• Net interest income for Q2 2025 was $22.4 million, up from $18.4 million in Q2 2024, with net interest margin increasing to 3.12% from 2.68%.

• Noninterest income for Q2 2025 was $10.1 million, a 6.3% increase year-over-year, led by mortgage and service charge revenue.

• Noninterest expense for Q2 2025 was $22.0 million, up 8.2% year-over-year, mainly due to higher salaries, benefits, and IT expenses.

• Provision for credit losses was $450,000 in Q2 2025, down from $650,000 in Q2 2024.

• Total loans grew to $1.99 billion and total deposits were $2.56 billion at June 30, 2025.

Outlook and guidance

• The TC Bancshares acquisition is expected to increase total assets to $3.8 billion, loans to $2.4 billion, and deposits to $3.1 billion, with immediate EPS accretion (excluding transaction costs).

• Loan growth expected to moderate to 10–12% annualized in the second half of the year, with a healthy pipeline.

• Margins anticipated to continue increasing, but at a more moderate pace.

• Noninterest expenses projected to rise slightly to $21–22M per quarter, offset by higher noninterest and interest income.

• Management expects stable economic and unemployment conditions in its markets, with delinquencies returning to normalized levels over the next year.