Colony Bankcorp Reports Third Quarter 2025 Results

Declares Quarterly Cash Dividend of $0.1150 Per Share

Colony Bankcorp, Inc. (NYSE:CBAN) ("Colony" or the "Company") today reported financial results for the third quarter of 2025. Financial highlights are shown below.

Financial Highlights:

• Net income was $5.8 million, or $0.33 per diluted share, for the third quarter of 2025, compared to $8.0 million, or $0.46 per diluted share, for the second quarter of 2025, and $5.6 million, or $0.32 per diluted share, for the third quarter of 2024.
• Operating net income was $8.2 million, or $0.47 of adjusted earnings per diluted share, for the third quarter of 2025, compared to $8.0 million, or $0.46 of adjusted earnings per diluted share, for the second quarter of 2025, and $6.2 million, or $0.35 of adjusted earnings per diluted share, for the third quarter of 2024. (See Reconciliation of Non-GAAP Measures).
• Provision for credit losses of $900,000 was recorded in the third quarter of 2025 compared to $450,000 in the second quarter of 2025, and $750,000 in the third quarter of 2024.
• Total loans, excluding loans held for sale, were $2.04 billion at September 30, 2025, an increase of $43.5 million, or 2.18%, from the prior quarter.
• Total deposits were $2.58 billion and $2.56 billion at September 30, 2025 and June 30, 2025, respectively, an increase of $28.1 million.
• Mortgage production was $87.3 million, and mortgage sales totaled $65.1 million in the third quarter of 2025 compared to $94.9 million and $65.3 million, respectively, for the second quarter of 2025.
• Small Business Specialty Lending ("SBSL") closed $28.4 million in Small Business Administration ("SBA") loans and sold $18.2 million in SBA loans in the third quarter of 2025 compared to $15.8 million and $17.9 million, respectively, for the second quarter of 2025.

The Company also announced that on October 22, 2025, the Board of Directors declared a quarterly cash dividend of $0.1150 per share, to be paid on its common stock on November 19, 2025, to shareholders of record as of the close of business on November 5, 2025. The Company had 17,461,284 shares of its common stock outstanding as of October 20, 2025.

"We are proud of our performance in the third quarter, which demonstrates the success of our team in executing our strategic priorities while continuing to provide a superior level of service to our customers," said Heath Fountain, Chief Executive Officer. "Our financial performance this quarter was highlighted by an increase in our operating revenue, driven by another consecutive quarter of net interest margin expansion and strong noninterest income."

"Loan growth has been especially strong this year, reflecting healthy customer demand and the strength of our lending teams across our markets. As expected, we are now seeing that momentum moderate to a more normalized pace consistent with our growth strategy, which positions us well for balanced, sustainable performance."

"Our planned merger with TC Federal Bank is progressing smoothly and in line with expectations. We continue to anticipate closing the transaction in the fourth quarter and completing the systems conversion in the first quarter of next year, positioning us to realize the strategic benefits of the combination early next year."

"Looking ahead, we are excited about the future growth trajectory of the company. Our strategic investment in talent is proceeding exceptionally well, with the successful addition of highly experienced bankers in several key markets. We are confident that these investments will deliver significant long-term value to our shareholders."

Balance Sheet

• Total assets were $3.15 billion at September 30, 2025, an increase of $37.1 million from June 30, 2025.
• Total loans, excluding loans held for sale, were $2.04 billion at September 30, 2025, an increase of $43.5 million from the quarter ended June 30, 2025.
• Total deposits were $2.58 billion and $2.56 billion at September 30, 2025 and June 30, 2025, respectively, an increase of $28.1 million. Decreases were seen in interest bearing demand deposits of $27.5 million and savings and money market deposits of $22.8 million, offset by an increase in time deposits of $71.1 million, from June 30, 2025 to September 30, 2025. Total deposits increased $59.4 million from the period ended September 30, 2024, with increases seen in interest bearing demand deposits of $41.9 million and time deposits of $55.3 million, partially offset by a decrease in savings and money market deposits of $40.1 million.
• Total borrowings at September 30, 2025 totaled $248.1 million, an increase of $23,000 compared to June 30, 2025, related to a minimal increase in other borrowed money.

Capital

• Colony continues to maintain a strong capital position, with ratios that exceed regulatory minimums required to be considered as "well-capitalized."
• Preliminary tier one leverage ratio, tier one capital ratio, total risk-based capital ratio and common equity tier one capital ratio were 9.91%, 13.44%, 16.00%, and 12.37%, respectively, at September 30, 2025.

Third Quarter 2025 Results of Operations

• Net interest income, on a tax-equivalent basis, totaled $22.9 million for the third quarter ended September 30, 2025 compared to $18.7 million for the same period in 2024. Net interest income, on a tax-equivalent basis, for the nine months ended September 30, 2025 totaled $66.6 million, compared to $56.1 million for the nine months ended September 30, 2024. For both periods, increases occurred in income on interest earning assets, and decreases were seen in interest bearing liabilities. Income on interest earning assets increased $2.3 million, to $37.1 million for the third quarter of 2025 compared to the same period in 2024. Expense on interest bearing liabilities decreased $1.9 million, to $14.2 million for the third quarter of 2025 compared to the same period in 2024. Income on interest earning assets increased $8.1 million to $109.8 million for the nine month period ended September 30, 2025 compared to the same period in 2024. Expense on interest bearing liabilities decreased $2.4 million, to $43.2 million for the nine month period ended September 30, 2025 compared to the same period in 2024.
• Net interest margin for the third quarter of 2025 was 3.17% compared to 2.64% for the third quarter of 2024. Net interest margin was 3.07% for the nine months ended September 30, 2025 compared to 2.67% for the nine months ended September 30, 2024. The increase for both periods was primarily related to increases in interest earning assets period over period, partially offset by the rate decreases in interest bearing liabilities.
• Noninterest income totaled $10.1 million for the third quarter ended September 30, 2025, an increase of $9,000, or 0.09%, compared to the same period in 2024. This increase was primarily related to increases in service charges on deposits, mortgage fee income and insurance commissions, partially offset by decreases in gains on sales of SBA loans and an increase in losses on the sales of investment securities. Noninterest income totaled $29.2 million for the nine months ended September 30, 2025, an increase of $167,000, or 0.57%, compared to the same period in 2024. This increase was primarily related to increases in mortgage fee income, insurance commissions and decreases in losses on the sales of investment securities, partially offset by decreases in gains on sales of SBA loans.
• Noninterest expense totaled $24.6 million for the third quarter ended September 30, 2025, compared to $20.8 million for the same period in 2024. Noninterest expense totaled $66.8 million for the nine months ended September 30, 2025, compared to $61.6 million for the same period in 2024. These increases were a result of increases in salaries and employee benefits, occupancy and equipment, information technology expenses, professional fees, acquisition related expenses and a loss related to a wire fraud incident included in other noninterest expense, partially offset by changes in the valuation on SBSL servicing assets.

Asset Quality

• Nonperforming assets totaled $15.2 million and $11.4 million at September 30, 2025 and June 30, 2025, respectively, an increase of $3.8 million.
• Other real estate owned and repossessed assets totaled $870,000 at September 30, 2025 and $731,000 at June 30, 2025.
• Net loans charged-off were $1.8 million, or 0.36% of average loans for the third quarter of 2025, compared to $1.0 million, or 0.21% for the second quarter of 2025.
• The credit loss reserve was $18.1 million, or 0.89% of total loans, at September 30, 2025, compared to $19.2 million, or 0.96% of total loans at June 30, 2025.

Earnings call information

The Company will host an earnings conference call at 9:00 a.m. ET on Thursday, October 23, 2025, to discuss the recent results and answer relevant questions. The conference call can be accessed by dialing 1-800-549-8228 and using the Conference ID: 48107. A replay of the call will be available until Thursday, October 30, 2025. To listen to the replay, dial 1-888-660-6264 and entering the passcode 48107#.

About Colony Bankcorp

Colony Bankcorp, Inc. is the bank holding company for Colony Bank. Founded in Fitzgerald, Georgia in 1975, Colony operates locations throughout Georgia as well as in Birmingham, Alabama; Tallahassee, Florida; and the Florida Panhandle. Colony Bank offers a range of banking solutions for personal and business customers. In addition to traditional banking services, Colony provides specialized solutions including mortgage lending, government guaranteed lending, consumer insurance, wealth management, credit cards and merchant services. Colony's common stock is traded on the New York Stock Exchange ("NYSE") under the symbol "CBAN." For more information, please visit www.colony.bank. You can also follow the Company on social media.

Forward-Looking Statements

Certain statements contained in this press release that are not statements of historical fact constitute "forward-looking statements" within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. In addition, certain statements may be contained in the Company's future filings with the Securities and Exchange Commission (the "SEC"), in press releases, and in oral and written statements made by or with the approval of the Company that are not statements of historical fact and constitute "forward-looking statements" within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Examples of forward-looking statements include, but are not limited to: (i) projections and/or expectations of revenues, income or loss, earnings or loss per share, the payment or nonpayment of dividends, capital structure and other financial items; (ii) statement of plans and objectives of Colony Bankcorp, Inc. or its management or Board of Directors, including those relating to products or services; (iii) statements of future economic performance; (iv) statements regarding growth strategy, capital management, liquidity and funding, and future profitability; (v) statements regarding the proposed merger of TC Bancshares, Inc. ("TC Bancshares") with the Company (the "Proposed Merger") and expectations with regard to the benefit of the Proposed Merger, and (vi) statements of assumptions underlying such statements. Words such as "may", "will", "anticipate", "assume", "should", "support", "indicate", "would", "believe", "contemplate", "expect", "estimate", "continue", "further", "plan", "point to", "project", "could", "intend", "target" and similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements.

Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties. Factors that might cause such differences include, but are not limited to: the impact of current and future economic conditions, particularly those affecting the financial services industry, including the effects of declines in the real estate market, tariffs or trade wars (including the resulting reduced consumer spending, lower economic growth or recession, reduced demand for U.S. exports, disruptions to supply chains, and decreased demand for other banking products and services), high unemployment rates, inflationary pressures, changes in interest rates (including the impact of prolonged elevated interest rates on our financial projections and models) and slowdowns in economic growth, as well as the financial stress on borrowers as a result of the foregoing; the risk of reductions in benchmark interest rates and the resulting impacts on net interest income; potential impacts of adverse developments in the banking industry highlighted by high-profile bank failures, including impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto; risks arising from negative media coverage and perceived instability in the banking industry; risks arising from perceived instability in the banking sector; the risks of changes in interest rates and their effects on the level, cost, and composition of, and competition for, deposits, loan demand and timing of payments, the values of loan collateral, securities, and interest sensitive assets and liabilities; the ability to attract new or retain existing deposits, to retain or grow loans or additional interest and fee income, or to control noninterest expense; the effect of pricing pressures on the Company's net interest margin; the failure of assumptions underlying the establishment of reserves for possible credit losses, fair value for loans and other real estate owned; changes in real estate values; the Company's ability to implement its various strategic and growth initiatives; increased competition in the financial services industry, particularly from regional and national institutions, as well as from fintech companies; economic conditions, either nationally or locally, in areas in which the Company conducts operations being less favorable than expected; changes in the prices, values and sales volumes of residential and commercial real estate; developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance; legislation or regulatory changes which adversely affect the ability of the consolidated Company to conduct business combinations or new operations; adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions, including as a result of the Company's participation in and execution of government programs; significant turbulence or a disruption in the capital or financial markets and the effect of a fall in the stock market prices on our investment securities; the effects of war or other conflicts; general risks related to the Company's merger and acquisition activity, including risks associated with integrating and realizing the expected financial benefits of previous or pending acquisitions, and the Company's pursuit of future acquisitions; risks associated with the Proposed Merger, including (a) the risk that the cost savings and any revenue synergies from the Proposed Merger may not be realized or take longer than anticipated to be realized, (b) disruption from the Proposed Merger with customers, suppliers, employee or other business partners relationships, (c) the occurrence of any event, change or other circumstances that could give rise to the termination of the Agreement and Plan of Merger by and between the Company and TC Bancshares, (d) the risk of successful integration of TC Bancshares' business into the Company, (e) the failure to obtain the necessary approvals by the shareholders of TC Bancshares or the Company, (f) the amount of the costs, fees, expenses and charges related to the Proposed Merger, (g) the ability by the Company to obtain required governmental approvals of the Proposed Merger, (h) reputational risk and the reaction of each of the companies' customers, suppliers, employees or other business partners to the Proposed Merger, (i) the failure of the closing conditions in the Agreement and Plan of Merger to be satisfied, or any unexpected delay in closing of the Proposed Merger, (j) the risk that the integration of TC Bancshares' operations into the operations of the Company will be materially delayed or will be more costly or difficult than expected, (k) the possibility that the Proposed Merger may be more expensive to complete than anticipated, including as a result of unexpected factors or events, (l) the dilution caused by the Company's issuance of additional shares of its common stock in the Proposed Merger, and (m) general competitive, economic, political, and market conditions; the impact of emerging technologies, such as generative artificial intelligence; fraud or misconduct by internal or external actors, and system failures, cybersecurity threats or security breaches and the cost of defending against them; a deterioration of the credit rating for U.S. long-term sovereign debt, actions that the U.S. government may take to avoid exceeding the debt ceiling, and uncertainties surrounding debt ceiling and the federal budget; a potential U.S. federal government shutdown and the resulting impacts; and general competitive, economic, political and market conditions or other unexpected factors or events. These and other factors, risks and uncertainties could cause the actual results, performance or achievements of the Company to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. Many of these factors are beyond the Company's ability to control or predict.

Forward-looking statements speak only as of the date on which such statements are made. These forward-looking statements are based upon information presently known to the Company's management and are inherently subjective, uncertain and subject to change due to any number of risks and uncertainties, including, without limitation, the risks and other factors set forth in the Company's filings with the Securities and Exchange Commission, the Company's Annual Report on Form 10-K for the year ended December 31, 2024, under the captions "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors," and in the Company's quarterly reports on Form 10-Q and current reports on Form 8-K. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events, except as required by applicable law. Readers are cautioned not to place undue reliance on these forward-looking statements.

Additional Information About the Proposed Merger and Where to Find It

This document does not constitute an offer to sell or the solicitation of an offer to buy any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. In connection with the proposed merger, the Company has filed with the SEC a registration statement on Form S-4 that included a joint proxy statement of TC Bancshares and the Company and a prospectus of the Company, as well as other relevant documents concerning the proposed transaction. WE URGE INVESTORS AND SECURITY HOLDERS TO READ THE REGISTRATION STATEMENT ON FORM S-4, THE JOINT PROXY STATEMENT/PROSPECTUS INCLUDED WITHIN THE REGISTRATION STATEMENT ON FORM S-4 AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED MERGER BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT THE COMPANY, TC BANCSHARES AND THE PROPOSED MERGER. The joint proxy statement/prospectus was sent to the shareholders of TC Bancshares seeking the required shareholder approval. Investors and security holders may obtain free copies of the registration statement on Form S-4 and the related joint proxy statement/prospectus, as well as other documents filed with the SEC by the Company through the web site maintained by the SEC at www.sec.gov. Documents filed with the SEC by the Company are also available free of charge by directing a written request to Colony Bankcorp, Inc., 115 South Grant Street, Fitzgerald, Georgia 31750, Attn: Derek Shelnutt and on the Company's website, colony.bank, under Investor Relations. The Company's telephone number is (229) 426-6000.

Participants in the Transaction

Colony, TC Bancshares and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of TC Bancshares and Colony in connection with the Proposed Merger. Certain information regarding the interests of these participants and a description of their direct and indirect interests, by security holdings or otherwise, is included in the joint proxy statement/prospectus regarding the proposed transaction. Additional information about Colony and its directors and officers may be found in the definitive proxy statement of Colony relating to its 2025 Annual Meeting of Shareholders filed with the SEC on April 17, 2025.

Explanation of Certain Unaudited Non-GAAP Financial Measures

The measures entitled operating noninterest income, operating noninterest expense, operating net income, adjusted earnings per diluted share, operating return on average assets, operating return on average equity, tangible book value per common share, tangible equity to tangible assets, operating efficiency ratio, operating net noninterest expense to average assets and pre-provision net revenue are not measures recognized under U.S. generally accepted accounting principles ("GAAP") and therefore are considered non-GAAP financial measures. The most comparable GAAP measures are noninterest income, noninterest expense, net income, diluted earnings per share, return on average assets, return on average equity, book value per common share, total equity to total assets, efficiency ratio, net noninterest expense to average assets and net interest income before provision for credit losses, respectively. Operating noninterest income excludes loss on sales of securities. Operating noninterest expense excludes acquisition-related expenses, severance costs and loss related to wire fraud incident. Operating net income, operating return on average assets, operating return on average equity and operating efficiency ratio all exclude acquisition-related expenses, severance costs, loss on sales of securities and loss related to wire fraud incident from net income, return on average assets, return on average equity and efficiency ratio, respectively. Operating net noninterest expense to average assets ratio excludes from net noninterest expense, severance costs, acquisition-related expenses, loss on sales of securities and loss related to wire fraud incident. Acquisition-related expenses includes fees associated with acquisitions and vendor contract buyouts. Severance costs includes costs associated with termination and retirement of employees. Adjusted earnings per diluted share includes the adjustments to operating net income. Tangible book value per common share and tangible equity to tangible assets exclude goodwill and other intangibles from book value per common share and total equity to total assets, respectively. Pre-provision net revenue is calculated by adding noninterest income to net interest income before provision for credit losses, and subtracting noninterest expense.

Management uses these non-GAAP financial measures in its analysis of the Company's performance and believes these presentations provide useful supplemental information, and a clearer understanding of the Company's performance, and if not provided would be requested by the investor community. The Company believes the non-GAAP measures enhance investors' understanding of the Company's business and performance. These measures are also useful in understanding performance trends and facilitate comparisons with the performance of other financial institutions. The limitations associated with operating measures are the risk that persons might disagree as to the appropriateness of items comprising these measures and that different companies might calculate these measures differently.

These disclosures should not be considered an alternative to GAAP. The computations of operating noninterest income, operating noninterest expense, operating net income, adjusted earnings per diluted share, operating return on average assets, operating return on average equity, tangible book value per common share, tangible equity to tangible assets, operating efficiency ratio, operating net noninterest expense to average assets and pre-provision net revenue and the reconciliation of these measures to noninterest income, noninterest expense, net income, diluted earnings per share, return on average assets, return on average equity, book value per common share, total equity to total assets, efficiency ratio, net noninterest expense to average assets and net interest income before provision for credit losses are set forth in the table below.