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Net Income

Colony Bankcorp, Inc. reported net income of $10.857 million for the second quarter of 2026, an increase from $8.204 million in the first quarter of 2026 and $7.978 million in the second quarter of 2025. For the six months ended June 30, 2026, net income was $19.061 million, up from $14.591 million for the same period in 2025.

Operating Net Income (Non-GAAP)

Operating net income was $11.0 million for the second quarter of 2026, compared to $9.5 million in the first quarter of 2026 and $8.0 million in the second quarter of 2025. Operating net income was $11.036 million in the second quarter of 2026, up from $9.485 million in the first quarter of 2026 and $7.978 million in the second quarter of 2025.

Provision for Credit Losses

The provision for credit losses was $1.90 million in the second quarter of 2026, an increase from $1.75 million in the first quarter of 2026 and $450,000 in the second quarter of 2025. For the six months ended June 30, 2026, the provision was $3.650 million, compared to $1.950 million for the same period in 2025.

Total Loans (excluding loans held for sale)

Total loans, excluding loans held for sale, reached $2.46 billion at June 30, 2026, an increase of $51.4 million, or 2.13%, from the prior quarter. The total loan portfolio was $2,464.8 million as of June 30, 2026.

Total Deposits

Total deposits were $2.97 billion at June 30, 2026, a decrease of $76.2 million from $3.05 billion at March 31, 2026. This decrease included $31.2 million in noninterest-bearing demand deposits, $27.2 million in interest-bearing demand deposits, and $26.5 million in savings and money market deposits, partially offset by an $8.7 million increase in time deposits. The cost of deposits was 1.75% in the second quarter of 2026.

Mortgage Production and Sales

Mortgage production was $115.4 million and mortgage sales totaled $67.3 million in the second quarter of 2026, up from $88.5 million and $61.4 million, respectively, in the first quarter of 2026.

Small Business Specialty Lending (SBSL)

SBSL closed $13.0 million in Small Business Administration (SBA) loans and sold $5.5 million in SBA loans in the second quarter of 2026, compared to $13.1 million and $10.4 million, respectively, in the first quarter of 2026.

Quarterly Cash Dividend

A quarterly cash dividend of $0.12 per share was declared on July 22, 2026, payable on August 19, 2026, to shareholders of record as of August 5, 2026.

Total Assets

Total assets were $3.627 billion at June 30, 2026, a decrease of $93.0 million from $3.720 billion at March 31, 2026. Colony Bankcorp, Inc. reported total assets of $3.6 billion as of June 30, 2026.

Total Borrowings

Total borrowings were $233.2 million at June 30, 2026, a decrease of $25.0 million compared to March 31, 2026.

Allowance for Credit Losses

The allowance for credit losses was $22.0 million, or 0.89% of total loans, at June 30, 2026, compared to $21.7 million, or 0.90% of total loans, at March 31, 2026.

Capital Ratios (at June 30, 2026)

• Tier one leverage ratio: 10.20%
• Tier one capital ratio: 13.87% (13.9% per )
• Total risk-based capital ratio: 16.18% (16.2% per )
• Common equity tier one capital ratio: 12.96% (13.0% per )

Net Interest Income (Tax-Equivalent Basis)

Net interest income totaled $30.0 million for the second quarter of 2026, up from $22.6 million for the second quarter of 2025. For the six months ended June 30, 2026, it totaled $59.4 million, up from $43.7 million for the same period in 2025.

Net Interest Margin

Net interest margin was 3.52% for the second quarter of 2026, compared to 3.12% for the second quarter of 2025. For the six months ended June 30, 2026, it was 3.50%, compared to 3.02% for the same period in 2025. The net interest margin expanded to 3.52% in the second quarter of 2026, up from 3.48% in the first quarter of 2026 and 3.12% in the second quarter of 2025, marking its seventh consecutive quarter of expansion.

Noninterest Income

Noninterest income totaled $12.2 million for the second quarter of 2026, an increase of $2.1 million (20.4%) compared to the second quarter of 2025. For the six months ended June 30, 2026, it totaled $22.9 million, an increase of $3.7 million (19.4%) compared to the same period in 2025.

Noninterest Expense

Noninterest expense totaled $26.4 million for the second quarter of 2026, compared to $22.0 million for the second quarter of 2025. For the six months ended June 30, 2026, it totaled $54.1 million, compared to $42.2 million for the same period in 2025. Operating net noninterest expenses to average assets improved to 1.51% in the second quarter of 2026 from 1.68% in the first quarter of 2026 and 1.52% in the second quarter of 2025.

Nonperforming Assets (NPAs)

Nonperforming assets totaled $20.9 million at June 30, 2026, an increase of $1.0 million from $19.9 million at March 31, 2026.

Other Real Estate Owned and Repossessed Assets

These assets totaled $2.0 million at June 30, 2026, compared to $2.1 million at March 31, 2026.

Net Loans Charged-off

Net loans charged-off were $1.8 million, or 0.29% of average loans, for the second quarter of 2026, consistent with $1.7 million, or 0.29%, for the first quarter of 2026.

Segment Performance (Second Quarter 2026)

• Banking Division: Net interest income was $28.435 million, provision for credit losses was $801 thousand, noninterest income was $8.777 million, noninterest expenses were $23.335 million, and net income was $10.373 million. Total assets for the Banking Division were $3.521 billion with 441 full-time employees.
• Mortgage Banking Division: Net interest income was $78 thousand, noninterest income was $2.182 million, noninterest expenses were $1.828 million, and net income was $337 thousand. Total assets for the Mortgage Banking Division were $15.077 million with 53 full-time employees.
• Small Business Specialty Lending Division: Net interest income was $1.356 million, provision for credit losses was $1.099 million, noninterest income was $1.199 million, noninterest expenses were $1.268 million, and net income was $147 thousand. Total assets for the Small Business Specialty Lending Division were $91.175 million with 34 full-time employees.

Complementary Lines of Business Pre-tax Profit/Loss (Second Quarter 2026)

• Mortgage segment: $432 thousand pre-tax profit, up from $222 thousand in Q1 2026.
• Small Business Specialty Lending (SBSL) segment: $188 thousand pre-tax profit, up from $95 thousand in Q1 2026.
• Marine/RV Lending: $511 thousand pre-tax profit, up from $459 thousand in Q1 2026.
• Merchant Services: $134 thousand pre-tax profit, compared to $120 thousand in Q1 2026.
• Colony Financial Advisors: $469 thousand pre-tax profit, significantly increased from $103 thousand in Q1 2026.
• Colony Insurance: $117 thousand pre-tax profit, up from $104 thousand in Q1 2026.
• Total pre-tax profit from complementary lines of business: $1,851 thousand in Q2 2026, an increase from $1,103 thousand in Q1 2026.

Capital and Liquidity

Total liquidity sources amounted to $1,752.5 million as of June 30, 2026, including $118.5 million in FRB Reserves, $39.7 million in Other Cash and Due from Banks, $375.4 million in Unencumbered Securities, $941.5 million in FHLB Borrowing Capacity, $143.0 million in Fed Fund Lines, and $134.4 million in FRB Discount Window. Pre-tax unrealized losses on securities were -$29.7 million in Q2 2026, decreasing from -$37.1 million in Q2 2025.

Outlook and Guidance

Colony Bankcorp, Inc. is confident in maintaining its achieved operating return on average assets of 1.20% and expects the First Reliance merger to create significant opportunities for scalable, long-term growth, with a legal close targeted for the fourth quarter of 2026. The company aims for a return on assets greater than 1.35% and plans to grow its customer base by 8-12% per year, while also developing five complementary lines of business to each generate over $1 million in net income. Loan growth accelerated within the company’s annualized target range of 8% to 12% during the quarter.