Colony Bankcorp (CBAN) investor relations material

Executive summary

• Q3 GAAP net income was $10.521 million, or $0.50 diluted EPS, versus $5.819 million and $0.33 YoY; operating net income was $11.559 million, or $0.54 per share.

• Tax-equivalent NIM expanded to 3.59% from 3.17% YoY; operating ROAA was 1.26%.

• First Reliance merger closed Nov. 1, after quarter-end; systems conversion and customer integration are expected in Q2 2027.

• Near-term loan growth guidance is ~5%, below the long-term 8%-12% target, as pricing discipline and profitability remain priorities.

Financial highlights

• Q3 net interest income was $30.4 million GAAP and $30.5 million tax-equivalent, versus $22.7 million and $22.9 million, respectively, YoY.

• Noninterest income rose 21.6% YoY to $12.3 million; operating noninterest income increased $702,000 QoQ.

• Noninterest expense was $27.6 million versus $24.6 million YoY, driven partly by compensation, occupancy and acquisition costs.

• Provision expense was $1.65 million, lower QoQ but above $0.9 million YoY; net charge-offs declined QoQ, including a $450,000 reduction in SBSL charge-offs.

• Loans increased $12.3 million QoQ; deposits declined $14.5 million QoQ to $2.96 billion.

Outlook and guidance

• ROA may decline 10-15 bps over the next few quarters from dual-core costs; the target remains 1.35% or better after merger savings begin in Q3 2027.

• First Reliance is projected to add ~20% earnings accretion when fully realized savings are included; projected savings equal ~35% of 2028 noninterest expense, phased in 60% in 2027 and 100% thereafter.

• Q4 margin was expected to increase, largely in line with initial projections, from purchase accounting and accretion after merger close.

• Merger cost savings remain in line with projections but are expected after systems conversion in Q3 2027.

• Sale-leaseback and securities repositioning are expected to support recurring earnings; reinvestment assumes a 5.5% weighted-average yield, with more than half of proceeds targeted for loans.