Colony Bankcorp, Inc. (NYSE: CBAN) (“Colony” or the “Company”) today reported financial results for the third quarter of 2026. Financial highlights are shown below.

Financial Highlights:

• Net income was $10.5 million, or $0.50 per diluted share, for the third quarter of 2026, compared to $10.9 million, or $0.51 per diluted share, for the second quarter of 2026, and $5.8 million, or $0.33 per diluted share, for the third quarter of 2025.
• Operating net income was $11.6 million, or $0.54 of operating earnings per diluted share, for the third quarter of 2026, compared to $11.0 million, or $0.52 of operating earnings per diluted share, for the second quarter of 2026, and $8.2 million, or $0.47 of operating earnings per diluted share, for the third quarter of 2025. (See Reconciliation of Non-GAAP Measures).
• Provision for credit losses of $1.7 million was recorded in the third quarter of 2026 compared to $1.9 million in the second quarter of 2026, and $900,000 in the third quarter of 2025.
• Total loans, excluding loans held for sale, were $2.48 billion at September 30, 2026, an increase of $12.3 million, or 0.50%, from the prior quarter.
• Total deposits were $2.96 billion and $2.97 billion at September 30, 2026 and June 30, 2026, respectively, a decrease of $14.5 million.
• Mortgage production was $96.5 million, and mortgage sales totaled $69.2 million in the third quarter of 2026 compared to $115.4 million and $67.3 million, respectively, for the second quarter of 2026.
• Small Business Specialty Lending (“SBSL”) closed $29.9 million in Small Business Administration (“SBA”) loans and sold $12.7 million in SBA loans in the third quarter of 2026 compared to $13.0 million and $5.5 million, respectively, for the second quarter of 2026.

The Company also announced that on October 28, 2026, the Board of Directors declared a quarterly cash dividend of $0.12 per share, to be paid on its common stock on November 25, 2026, to shareholders of record as of the close of business on November 11, 2026. The Company had 21,220,149 shares of its common stock outstanding as of October 26, 2026.

“We are pleased to report improved financial performance in the third quarter, driven by solid execution and sustained profitability across our core franchise,” said Heath Fountain, Chief Executive Officer. “The momentum built over recent quarters reflects the resilience of our business model and our focus on disciplined balance sheet management, efficiency, and sound credit quality. As we move through the remainder of the year and complete our partnership with First Reliance, we believe we are well positioned to capitalize on the opportunities that will allow us to deliver consistent results.”

“Loan growth was lower in the third quarter and is reflective of our commitment to pricing discipline in a changing rate environment. Margin continues to improve, which is a result of increasing earning asset yields and consistent pricing on our new and renewed loans. While our long-term target for loan growth remains unchanged, we are likely to see softer growth in the near-term.”

“We previously announced that all necessary regulatory approvals and shareholder approvals have been obtained for our partnership with First Reliance. Both teams have been working to ensure a smooth transition at legal close as well as preparing for our systems conversion and customer integration currently expected in the second quarter of 2027 and we remain on track to successfully achieve our goals.”

“As we look ahead, our outlook remains bright. Uniting our teams and strengths allows us to build on our momentum, sharpen our focus on operational excellence, and deliver even greater long-term value to our shareholders, customers, and communities.”

Balance Sheet

• Total assets were $3.65 billion at September 30, 2026, an increase of $20.3 million from June 30, 2026.
• Total loans, excluding loans held for sale, were $2.48 billion at September 30, 2026, an increase of $12.3 million from June 30, 2026.
• Total deposits were $2.96 billion and $2.97 billion at September 30, 2026 and June 30, 2026, respectively, a decrease of $14.5 million. Decreases were seen in noninterest-bearing demand deposits of $6.8 million and interest-bearing demand deposits of $44.1 million partially offset by increases in savings and money market deposits of $15.1 million and time deposits of $21.4 million, from June 30, 2026 to September 30, 2026.
• Total borrowings at September 30, 2026 were $263.2 million, an increase of $30.0 million compared to June 30, 2026.

Capital

• Colony continues to maintain a strong capital position, with ratios that exceed applicable regulatory minimums required to be considered as “well-capitalized.”
• The Company’s preliminary consolidated tier one leverage ratio, tier one capital ratio, total risk-based capital ratio and common equity tier one capital ratio were 10.57%, 14.41%, 16.78%, and 13.50%, respectively, at September 30, 2026.

Third Quarter and Nine-Months Ended September 30, 2026 Results of Operations

• Net interest income, on a tax-equivalent basis, totaled $30.5 million for the third quarter ended September 30, 2026 compared to $22.9 million for the same period in 2025. Net interest income, on a tax-equivalent basis, totaled $89.9 million for the nine months ended September 30, 2026 compared to $66.6 million for the same period in 2025. For both periods, increases occurred in income on interest earning assets which was partially offset by increases in expense on interest bearing liabilities. Income on interest earning assets increased $9.5 million to $46.6 million for the third quarter of 2026 compared to the same period in 2025. Expense on interest bearing liabilities increased $1.9 million to $16.1 million for the third quarter of 2026 compared to the same period in 2025. Income on interest earning assets increased $27.8 million to $137.6 million for the nine months ended September 30, 2026 compared to the same period in 2025. Expense on interest bearing liabilities increased $4.5 million to $47.7 million for the nine months ended September 30, 2026 compared to the same period in 2025.

• Net interest margin for the third quarter of 2026 was 3.59% compared to 3.17% for the third quarter of 2025. Net interest margin for the nine months ended September 30, 2026 was 3.53% compared to 3.07% for the nine months ended September 30, 2025. The increase for both periods was impacted by the Company’s acquisition of TC Bancshares, Inc. in the fourth quarter of 2025, and was also impacted by increases in interest earning asset yields period over period, as well as the decreased cost of funds.
• Noninterest income totaled $12.3 million for the third quarter of 2026, an increase of $2.2 million, or 21.6%, compared to the same period in 2025. Noninterest income totaled $35.1 million for the nine months ended September 30, 2026, an increase of $5.9 million, or 20.1%, compared to the same period in 2025. For both periods, increases occurred in service charges on deposits, mortgage fee income, interchange fees, BOLI income, which included a tax-free gain of $706 thousand in the second quarter of 2026, along with an increase in wealth advisor income and an insurance gain of $813 thousand in the third quarter of 2026 related to a previous branch building fire, both which are included in other noninterest income, partially offset by decreases in gains on sales of SBA loans.
• Noninterest expense totaled $27.6 million for the third quarter of 2026, compared to $24.6 million for the same period in 2025. Noninterest expense totaled $81.8 million for the nine months ended September 30, 2026, compared to $66.8 million for the same period in 2025. Increases for both periods occurred in salaries and employee benefits, occupancy and equipment, information technology expenses and acquisition and integration-related expenses related to the acquisition of TC Bancshares, Inc. which occurred in the fourth quarter of 2025 as well as expenses related to the upcoming merger with First Reliance Bancshares, Inc.

Asset Quality

• Nonperforming assets totaled $25.0 million and $20.9 million at September 30, 2026 and June 30, 2026, respectively, an increase of $4.1 million.
• Other real estate owned and repossessed assets totaled $3.9 million at September 30, 2026 and $2.0 million at June 30, 2026.
• Net loans charged-off were $1.7 million, or 0.27% of average loans for the third quarter of 2026, compared to $1.8 million, or 0.29% for the second quarter of 2026.
• The allowance for credit losses on loans was $22.5 million, or 0.91% of total loans, at September 30, 2026, compared to $22.0 million, or 0.89% of total loans at June 30, 2026.
• The increase in classified and criticized loans is primarily driven by the downgrade of one construction relationship with circumstances unique to the individual borrower.

Subsequent Event: Strategic Sale-Leaseback and Balance Sheet Repositioning

On October 27, 2026, Colony Bank (the “Bank”), a Georgia state-chartered bank and wholly-owned subsidiary of the Company, entered into a Purchase and Sale Agreement for the sale of three retail banking branch properties for an aggregate gross purchase price of approximately $19.9 million. The Bank entered into a 15-year master lease agreement to lease back each property, with Bank options to extend the term for an additional 15 years. Aggregate first-year base rent under the triple-net lease is approximately $1.65 million, subject to 2.0% annual escalations. The Bank will not close any branches or exit any markets in connection with this transaction. The Company estimates that the sale-leaseback transaction will result in an aggregate pre-tax gain of approximately $15 million, which is expected to be offset by realized losses from a planned repositioning of the Bank’s investment securities portfolio. The Bank intends to use available net proceeds to enhance liquidity, support future loan growth, and improve the Company's overall balance sheet flexibility and interest rate risk profile. The combined transactions are expected to be accretive to tangible book value per share and recurring earnings.