Financial Analysis

"BUSINESS COMBINATION Acquisition of The Ellerbee Agency On April 1, 2025, the Company acquired The Ellerbee Agency, an Allstate appointed consumer property and casualty insurance agency which became part of Colony's insurance division and expanded our insurance footprint and customer base into two new locations in Monroe and Greensboro, Georgia. The Company paid cash consideration of $3.5 million and recorded a customer relationship intangible of $1.4 million, which is being amortized over ten years, and $1.9 million in goodwill. The goodwill was solely assigned to the Bank segment and is not expected to be deductible for income tax purposes. Acquisition of TC Federal Bancshares, Inc. On December 1, 2025, the Company completed its acquisition of TC Bancshares, Inc. (TCBC), a bank holding company headquartered in Thomasville, Georgia. Upon consummation of the acquisition, TCBC was merged with and into the Company, with Colony Bankcorp, Inc. as the surviving entity in the merger. Immediately following the holding company merger, TCBCs wholly owned bank subsidiary, TC Federal Bank was also merged with and into the Bank. The acquisition expanded the Companys market presence, as TC Federal Bank had four full-service banking locations in Thomasville and Savannah, Georgia and in Tallahassee and Jacksonville, Florida. Under the terms of the Agreement and Plan of Merger, each TCBC shareholder had the option to receive either $21.25 in cash or 1.25 shares of the Companys common stock …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

COMMITMENTS AND CONTINGENCIES Credit-Related Financial Instruments. The Company is a party to credit-related financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, standby letters of credit and commercial letters of credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The Companys exposure to credit loss is represented by the contractual amount of these commitments. The Company follows the same credit policies in making commitments as it does for on-balance sheet instruments. At December 31, 2025 and 2024, the following financial instruments were outstanding whose contract amounts represent credit risk: Contract Amount 2025 2024 (dollars in thousands) Commitments to extend credit $ 422,592 $ 329,924 Standby letters of credit 5,382 5,947 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The commitments for equity lines of credit may expire without being drawn upon. Therefore, the total commitment amounts do not necessarily represent future cash requirements. The amount of collateral obtained, if it is deemed necessary by th …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"COMPENSATION PLANS The Company offers a defined contribution 401(k) Profit Sharing Plan (the ""Plan"") which covers substantially all employees who meet certain age and service requirements. The Plan allows employees to make voluntary pre-tax salary deferrals to the Plan. The Company, at its discretion, may elect to make an annual contribution to the Plan equal to a percentage of each participating employees salary. Such discretionary contributions must be approved by the Companys board of directors. Employees are fully vested in the Company contributions after six years of service. In 2025 and 2024, the Company made total contributions of $1.8 million and $1.7 million to the Plan, respectively. Colony Bank, the wholly-owned subsidiary, has deferred compensation plans covering certain former directors and certain officers choosing to participate through individual deferred compensation contracts. In accordance with terms of the contracts, the Bank is committed to pay the participants deferred compensation over a specified number of years, beginning at age 65. In the event of a participants death before age 65, payments are made to the participants named beneficiary over a specified number of years, beginning on the first day of the month following the death of the participant. Liabilities accrued under the plans totaled $778,000 and $930,000 as of December 31, 2025 and 2024, respectively. Monthly benefit accruals under the contracts totaled $65,000 in 2025 and $(32,000) in 2 …

CompensationAndEmployeeBenefitPlansTextBlock · excerpt; the full note is in the filing

BORROWINGS The following table presents information regarding the Companys outstanding borrowings at December 31, 2025: Description Maturity Date Amount Interest Rate (dollars in thousands) FHLB Advances December 22, 2027 $ 15,000 4.00% FHLB Advances January 28, 2028 20,000 3.87% FHLB Advances February 15, 2028 20,000 3.83% FHLB Advances April 5, 2028 25,000 3.69% FHLB Advances April 6, 2026 25,000 3.90% FHLB Advances May 2, 2029 30,000 4.73% FHLB Advances March 25, 2026 25,000 3.78% FHLB Advances March 26, 2026 25,000 3.78% FHLB Advances November 6, 2026 10,000 4.14% Fair Value Adjustment for FHLB Borrowings assumed (28) N/A Subordinated notes, net of issuance costs May 20, 2032 38,903 5.25% Subordinated debentures (1) 24,229 (1) Total borrowings $ 258,104 (1) See individual maturity dates and interest rates in table below. The following table presents information regarding the Companys outstanding borrowings at December 31, 2024: Description Maturity Date Amount Interest Rate (dollars in thousands) FHLB Advances December 22, 2027 $ 15,000 4.00% FHLB Advances January 28, 2028 20,000 3.87% FHLB Advances February 15, 2028 20,000 3.83% FHLB Advances April 5, 2028 25,000 3.69% FHLB Advances April 6, 2026 25,000 3.90% FHLB Advances May 2, 2029 30,000 4.73% FHLB Advances March 25, 2025 25,000 4.46% FHLB Advances March 26, 2025 25,000 4.46% Subordinated notes May 20, 2032 38,810 5.25% Subordinated debentures (1) 24,229 (1) Total borrowings $ 248,039 (1) See individual maturity date …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

FAIR VALUE OF FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS Generally accepted accounting standards in the U.S. require disclosure of fair value information about financial instruments, whether or not recognized on the face of the balance sheet, for which it is practicable to estimate that value. The assumptions used in the estimation of the fair value of Colony Bancorp, Inc. and subsidiaries financial instruments are detailed hereafter. Where quoted prices are not available, fair values are based on estimates using discounted cash flows and other valuation techniques. The use of discounted cash flows can be significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Generally accepted accounting principles related to Fair Value Measurements define fair value, establish a framework for measuring fair value, establish a three-level valuation hierarchy for disclosure of fair value measurement and enhance disclosure requirements for fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows: Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or l …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"INCOME TAXES The Company adopted ASU No. 2023-09, Income Taxes (Topic 740) Improvements to Income Tax Disclosures (""ASU 2023-09"") on January 1, 2025 on a prospective basis. Cash Taxes Paid in Current Period Year ended December 31, (dollars in thousands) 2025 Federal $ 4,210 States Other 226 Foreign Total $ 4,436 Income Taxes The Company files tax returns in the U.S federal jurisdiction and required states. With few exceptions, the Bank is no longer subject to tax examination by tax authorities for years prior to 2022. The provision for income taxes from continuing operations consists of the following components: Year ended December 31, (dollars in thousands) 2025 Current Federal $ 4,607 State 211 Total current tax provision 4,818 Deferred Federal 1,699 State 365 Total deferred tax provision 2,064 Total tax provision from continuing operations* $ 6,882 *The Company does not have pretax income from continuing foreign operations or foreign tax expense. Components of Tax Expense Year ended December 31, (dollars in thousands) 2024 Current federal expense $ 4,808 Deferred federal expense 759 Federal income tax expense 5,567 Current state expense 136 Deferred state expense (4) State income tax expense 132 Provision for income taxes $ 5,699 Income tax expense for the years ended December 31, 2025, 2024 and 2023 differed from the federal statutory rate applied to income before income taxes for the following reasons in accordance with ASU 2023-09: Year ended December 31, 2025 (dolla …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

LEASES A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. On January 1, 2019, the Company adopted ASU No. 2016-2 and all subsequent ASUs that modified this topic (collectively referred to as Topic 842). For the Company, Topic 842 primarily affected the accounting treatment for operating lease agreements in which the Company is the lessee. Substantially all of the leases in which the Company is the lessee are comprised of real estate for branches and office space with terms extending through 2040. All of our leases are classified as operating leases, and therefore, were previously not recognized on the Companys consolidated balance sheet. With the adoption of Topic 842, operating lease arrangements are required to be recognized on the consolidated balance sheet as a right-of-use (ROU) asset and a corresponding lease liability. The following table represents the consolidated balance sheet classification of the Companys ROU assets and liabilities. The Company elected not to include short-term leases (i.e., leases with initial terms of twelve months or less), or equipment leases (deemed immaterial) on the consolidated balance sheet. (dollars in thousands) Classification December 31, 2025 December 31, 2024 Assets Operating lease right-of-use assets Other assets $ 10,257 $ 1,225 Liabilities Operating lease liabilities Other liabilities $ 10, …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"Accounting Standards Updates In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280) Improvements to Reportable Segment Disclosures (""ASU 2023-07""). This ASU was issued to improve segment reporting disclosures. The amendments in this ASU improve financial reporting by requiring disclosure of incremental segment information including significant segment expenses regularly provided to the chief operating decision maker as well as the amount and composition of other segment items on an annual and interim basis for all public entities to enable investors to develop more decision-useful financial analyses. Retrospective application is required in all prior periods unless impracticable to do so. The Company adopted the new disclosure requirements for the annual period beginning on January 1, 2024 and for interim periods beginning on January 1, 2025. The adoption of this standard did not have a material impact on the Company's financial statements. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740) Improvements to Income Tax Disclosures (""ASU 2023-09""). This ASU was issued to enhance the transparency and decision usefulness of income tax disclosures. The ASU addresses investor requests for more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information. The Company adopted this standard effective January 1, 2025 on a pros …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

RELATED PARTY TRANSACTIONS The following table reflects the activity and aggregate balance of direct and indirect loans to directors, executive officers or principal holders of equity securities of the Company. All such loans were made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other persons and do not involve more than a normal risk of collectability. A summary of activity of related party loans is shown below: (dollars in thousands) 2025 2024 Balance, Beginning $ 3,809 $ 6,107 New loans 2,977 3,250 Repayments (3,721) (3,829) Transactions due to changes in directors 1,181 (1,719) Balance, Ending $ 4,246 $ 3,809

RelatedPartyTransactionsDisclosureTextBlock

SEGMENT INFORMATION ASC Topic 280 - Segment Reporting identifies operating segments as components of an enterprise which are evaluated regularly by the Company's Chief Operating Decision Maker, our Chief Executive Officer, in deciding how to allocate resources and assess performance. The Company has applied the aggregation criterion set forth in this codification to the results of its operations. The Companys operating segments include banking, mortgage banking and small business specialty lending division. The reportable segments are determined by the products and services offered, and internal reporting. The Bank segment derives its revenues from the delivery of full-service financial services, including retail and commercial banking services and deposit accounts. The Mortgage Banking segment derives its revenues from the origination and sales of residential mortgage loans held for sale. The Small Business Specialty Lending Division segment derives its revenue from the origination, sales and servicing of Small Business Administration loans and other government guaranteed loans. Segment performance is evaluated using net interest income and noninterest income. Income taxes are allocated based on income before income taxes, and indirect expenses (includes management fees) are allocated based on various internal factors for each segment. Transactions among segments are made at fair value. The following tables present information reported internally for performance assessment a …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Business Colony Bankcorp, Inc. and subsidiaries (the Company) is a financial holding company headquartered in Fitzgerald, Georgia, whose primary business is presently conducted by Colony Bank, its wholly owned banking subsidiary (the Bank). The Company operates locations throughout Georgia as well as in Birmingham, Alabama and Jacksonville, Santa Rosa Beach and Tallahassee, Florida. Through the Bank, the Company offers a broad range of banking solutions for personal and business customers. In addition to traditional banking services, the Bank provides specialized solutions including mortgage lending, government guaranteed lending, wealth management, credit cards and merchant services. The Company also provides an option for its customers to purchase insurance services including vehicle, home, renters and life insurance. Additionally, Colony Risk Management, Inc. is a subsidiary of the Company and is located in Las Vegas, Nevada. It is a captive insurance subsidiary which insures various liability and property damage policies for the Company and its related subsidiaries. Colony Risk Management is regulated by the State of Nevada Division of Insurance. The Company is subject to the regulations of certain state and federal agencies and are periodically examined by those regulatory agencies. Basis of Presentation and Accounting Estimates The consolidated financial statements include the accounts of Colony Bankcorp, Inc. and it …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Commitments and Contingencies Credit-Related Financial Instruments. The Company is a party to credit related financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, standby letters of credit and commercial letters of credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The Companys exposure to credit loss is represented by the contractual amount of these commitments. The Company follows the same credit policies in making commitments as it does for on-balance sheet instruments. The Company evaluates each customers creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary, upon extension of credit, is based on managements credit evaluation of the borrower. Collateral held varies, but may include cash or cash equivalents, negotiable instruments, real estate, accounts receivable, inventory, oil, gas and mineral interests, property, plant, and equipment. At September 30, 2025 and December 31, 2024 the following financial instruments were outstanding whose contract amounts represent credit risk: Contract Amount (dollars in thousands) September 30, 2025 December 31, 2024 Loan commitments $ 415,462 $ 329,924 Letters of credit 4,700 5,947 Commitments to extend credit are agreements to lend to a cus …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"Borrowings The following table presents information regarding the Companys outstanding borrowings at September 30, 2025 and December 31, 2024: (dollars in thousands) September 30, 2025 December 31, 2024 Federal Home Loan Bank advances 185,000 185,000 Other borrowings 63,109 63,039 $ 248,109 $ 248,039 Advances from the Federal Home Loan Bank (FHLB) have maturities ranging from 2025 to 2029 and interest rates ranging from 3.69% to 4.73%. As collateral on the outstanding FHLB advances, the Company has provided a blanket lien on its portfolio of qualifying residential first mortgage loans, commercial real estate loans, farmland loans, multifamily loans and HELOC loans. At September 30, 2025, the lendable collateral value of those loans pledged is $224.1 million. At September 30, 2025, the Company had remaining credit availability from the FHLB of $590.6 million. The Company may be required to pledge additional qualifying collateral in order to utilize the full amount of the remaining credit line. The Company's debentures issued in connection with trust preferred securities are recorded as other borrowings on the consolidated balance sheets, but, subject to certain limitations, qualify as Tier 1 capital for regulatory capital purposes. At September 30, 2025 and December 31, 2024, $24.2 million of debentures underlying trust preferred securities were outstanding. The proceeds from the offerings were used to fund certain acquisitions, pay off holding company debt and inject capital …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Fair Value of Financial Instruments and Fair Value Measurements Generally accepted accounting standards in the U.S. require disclosure of fair value information about financial instruments, whether or not recognized on the face of the balance sheet, for which it is practicable to estimate that value. The assumptions used in the estimation of the fair value of the Company and the Banks financial instruments are detailed hereafter. Where quoted prices are not available, fair values are based on estimates using discounted cash flows and other valuation techniques. The use of discounted cash flows can be significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Generally accepted accounting principles related to Fair Value Measurements define fair value, establish a framework for measuring fair value, establish a three-level valuation hierarchy for disclosure of fair value measurement and enhance disclosure requirements for fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows: Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, ei …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

"Changes in Accounting Principles In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280) Improvements to Reportable Segment Disclosures (""ASU 2023-07""). This ASU was issued to improve segment reporting disclosures. The amendments in this ASU improve financial reporting by requiring disclosure of incremental segment information including significant segment expenses regularly provided to the chief operating decision maker as well as the amount and composition of other segment items on an annual and interim basis for all public entities to enable investors to develop more decision-useful financial analyses. Retrospective application is required in all prior periods unless impracticable to do so. The amendments in this standard will be effective for the Company for the fiscal year ended December 31, 2024 and subsequent interim periods. The Company adopted the new disclosure requirements for the interim periods beginning on January 1, 2025. The adoption of this standard did not have a material impact on the Company's financial statements. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740) Improvements to Income Tax Disclosures (""ASU 2023-09""). This ASU was issued to enhance the transparency and decision usefulness of income tax disclosures. The ASU addresses investor requests for more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and incom …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Segment Information ASC Topic 820 - Segment Reporting identifies operating segments as components of an enterprise which are evaluated regularly by the Company's Chief Operating Decision Maker, our Chief Executive Officer, in deciding how to allocate resources and assess performance. The Company has applied the aggregation criterion set forth in this codification to the results of its operations. The Companys operating segments include banking, mortgage banking and small business specialty lending division. The reportable segments are determined by the products and services offered, and internal reporting. The Bank segment derives its revenues from the delivery of full-service financial services, including retail and commercial banking services and deposit accounts. The Mortgage Banking segment derives its revenues from the origination and sales of residential mortgage loans held for sale. The Small Business Specialty Lending Division segment derives its revenue from the origination, sales and servicing of Small Business Administration loans and other government guaranteed loans. Segment performance is evaluated using net interest income and noninterest income. Income taxes are assessed based on income before income taxes, and indirect expenses (including management fees) are allocated based on various internal factors for each segment. Transactions among segments are made at fair value. The following tables present information reported internally for performance assessment f …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"Summary of Significant Accounting Policies Presentation Colony Bankcorp, Inc. (the Company) is a bank holding company located in Fitzgerald, Georgia. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Colony Bank, Fitzgerald, Georgia (the Bank). The Company or our, as used herein, includes Colony Bank, except where the context requires otherwise. All adjustments consisting of normal recurring accruals which are, in the opinion of management, necessary for fair presentation of the interim consolidated financial statements, have been included and fairly and accurately present the financial position, results of operations and cash flows of the Company. All significant intercompany accounts have been eliminated in consolidation. The accounting and reporting policies of the Company conform to U.S. generally accepted accounting principles (""GAAP"") utilized in the commercial banking industry for interim financial information and Regulation S-X. Accordingly, the accompanying unaudited interim consolidated financial statements do not include all of the information or notes required for complete financial statements. The results of operations for the three and nine months ended September 30, 2025 are not necessarily indicative of the results which may be expected for the year ending December 31, 2025. These statements should be read in conjunction with the consolidated financial statements and notes thereto in the Company's Ann …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

"Subsequent Events Dividend 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. At-The-Market Offering On November 3, 2025, the Company entered into an Equity Distribution Agreement with Piper Sandler & Co., as placement agent, pursuant to which the Company may sell from time to time shares of the Company's common stock, par value $1.00, having an aggregate gross sale price of up to $40,000,000. Sales of common stock under the Equity Distribution Agreement may be made in any transactions that are deemed to be ""at-the-market offerings"" as defined in Rule 415(a)(4) under the Securities Act of 1933, as amended (the ""Securities Act"") or, subject to the Company's consent, in privately negotiated transactions."

SubsequentEventsTextBlock