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.

• Successfully closed the TC Federal/TC Bancshares merger in December, expanding presence in Georgia and Florida, with systems conversion on track for Q1 2026.

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

• Maintained 1% operating ROA for 2025, targeting 1.20% ROA on a quarterly basis starting Q2 2026.

Financial highlights

• Net interest income for Q4 2025 was $26.0 million, up from $20.6 million in Q4 2024, with net interest margin up 15 bps to 3.32%.

• Total loans increased by $344.2 million and deposits grew by $483.2 million year-over-year.

• Operating non-interest income was $11.1 million, with mortgage-related non-interest revenue up $270,000 sequentially.

• Operating non-interest expenses were $24.4 million, elevated due to merger-related costs, with $1.3 million in merger expenses.

• Tangible book value per share rose to $14.31, and TCE ratio improved to 8.30%.

Outlook and guidance

• Projecting modest net interest margin increases each quarter in 2026, with margin growth in the mid-single digits.

• Organic loan growth expected at the lower end of the 8%-12% target for 2026 due to increased competition.

• Non-interest income expected to improve slightly in 2026, with continued focus on fee income and business line growth.

• Anticipate operating expense ratio to return to 1.45% by Q2 2026 as cost savings from the merger are realized.

• Short-term focus on achieving 1.20% ROAA, growing core deposits, and maintaining expense discipline.