Colony Bankcorp (CBAN) Q4 2025 earnings summary

Executive summary

• Achieved operating net income of $8.9 million in Q4 2025, with adjusted EPS of $0.48 and operating ROAA of 1.05%.

• Net income for Q4 2025 was $7.8 million ($0.42 per diluted share), up from $5.8 million in Q3 2025 and $7.4 million in Q4 2024.

• Completed the merger with TC Federal/TC Bancshares in December, significantly expanding assets and deposits and presence in Georgia and Florida.

• Fifth consecutive quarter of net interest margin expansion, reaching 3.32%.

• Quarterly cash dividend increased to $0.12 per share.

Financial highlights

• Net interest income for Q4 2025 was $26.0 million, up from $20.6 million in Q4 2024, driven by improved asset yields, lower funding costs, and the TC Federal acquisition.

• Total assets reached $3.74 billion at December 31, 2025, up $582.7 million from September 30, 2025.

• Total loans (excluding held for sale) were $2.38 billion, up $344.2 million from the prior quarter; deposits were $3.07 billion, up $483.2 million.

• Operating non-interest income was $11.1 million, with mortgage-related revenue up $270,000 and a $108,000 gain from a $10 million mortgage pool sale.

• Noninterest expense for Q4 2025 was $25.7 million, up from $21.3 million in Q4 2024, driven by higher salaries, acquisition costs, and a wire fraud loss.

Outlook and guidance

• Expect to achieve 1.20% ROA quarterly starting Q2 2026 as merger synergies are realized.

• Project modest net interest margin increases each quarter in 2026, with loan growth at the lower end of the 8%-12% target.

• Integration of TC Federal customers is planned for completion in Q1 2026.

• Operating expense ratio targeted to return to 1.45% by Q2 2026 as cost savings from the merger are captured.

• Effective tax rate expected to remain around 21%.