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1. Company Snapshot

1.a. Company Description

Colony Bankcorp, Inc.operates as the bank holding company for Colony Bank that provides various banking products and services to commercial and consumer customers.The company offers various deposit products, including demand, savings, and time deposits.


It also provides loans to small and medium-sized businesses; residential and commercial construction, and land development loans; commercial real estate loans; commercial loans; agri-business and production loans; residential mortgage loans; home equity loans; and consumer loans.In addition, the company offers internet banking services, electronic bill payment services, safe deposit box rentals, telephone banking, credit and debit card services, and remote depository products, as well as access to a network of ATMs. As of January 20, 2022, it operated 39 locations throughout Georgia.The company was founded in 1975 and is headquartered in Fitzgerald, Georgia.

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1.b. Last Insights on CBAN

Colony Bankcorp, Inc.'s recent performance was negatively impacted by investigations into the fairness of its merger with TC Bancshares, Inc. Halper Sadeh LLC and Kahn Swick & Foti, LLC are probing the transaction, citing potential breaches of fiduciary duties to shareholders. The proposed sale of TC Bancshares to Colony Bankcorp raised concerns about the adequacy of price and process. Additionally, Colony Bankcorp's high-profile merger and acquisition activity may have created uncertainty among investors. The company's upcoming Q3 2025 earnings release and conference call may provide further insights.

1.c. Company Highlights

2. Colony Bank's Q3 2025 Earnings: A Strong Performance

Colony Bank's third-quarter 2025 operating performance was robust, driven by a 5 basis point expansion in net interest margin to 3.19% and a $314,000 increase in net interest income. Operating net income rose by $252,000 from the prior quarter, with operating pre-provision net revenue showing sustained growth. Earnings per share (EPS) came in at $0.47, in line with analyst estimates. The bank's financial performance was characterized by a significant pickup in yield, with a new and renewed rate of 7.83% for the quarter, up from a roll-off yield in the 5% range previously.

Publication Date: Nov -23

📋 Highlights
  • Net Interest Margin Expansion:: Rose 5 bps to 3.19%, driven by $314,000 increase in net interest income.
  • Operating Net Income Growth:: Increased $252,000 QoQ, supported by higher pre-provision revenue.
  • Loan & Deposit Growth:: Loans up $43.5M at 7.83% rate; deposits rose $28.1M via strategic funding.
  • Merger Progress:: TC Bancshares deal on track for Q4 close, with regulatory approvals filed and shareholder vote in November.
  • Noninterest Income Growth:: Merchant Services and Wealth Advisors saw significant pretax income gains QoQ.

Loan and Deposit Growth

Loans held for investment grew by $43.5 million, driven by a weighted average rate on new and renewed loans of 7.83%. Total deposits increased by $28.1 million, partly due to the strategic use of brokered funding. The bank's tangible book value per share rose to $14.20, up from $12.76 a year ago, reflecting a strong capital position.

Asset Quality and Provisioning

The bank reported a $900,000 provision expense, driven by loan growth and charge-offs in the SBSL division. However, past due and classified loans improved quarter-over-quarter, reflecting strong credit discipline. The bank's focus on lending to customers it knows and has relationships with has resulted in minimal exposure to NDFI loans.

Merger Update and Outlook

The pending merger with TC Bancshares and TC Federal Bank is progressing as planned, with regulatory applications filed and shareholder approval expected in November. The transaction is set to close in the fourth quarter, with system conversion planned for the first quarter of next year. Analysts estimate next year's revenue growth at 7.6%, driven by the bank's continued focus on growth and strong performance.

Valuation and Dividend Yield

With a Price-to-Tangible Book Value (P/TBV) ratio of approximately 0.97, the bank's valuation appears reasonable. The Dividend Yield stands at 2.73%, providing a relatively attractive return for income investors. The bank's operating net noninterest expense to average assets improved 4 basis points to 1.48%, and a quarterly dividend of $0.115 per share was declared. The TCE ratio was 8%, up from 7.43% a year ago, indicating a strong capital position.

3. NewsRoom

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Colony Bankcorp, Inc. Announces Completion of Merger With TC Bancshares, Inc.

Dec -01

Source: businesswire.com

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22,618 Shares in Colony Bankcorp, Inc. $CBAN Acquired by Campbell & CO Investment Adviser LLC

Nov -17

Source: defenseworld.net

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Bailard Inc. Acquires 14,100 Shares of Colony Bankcorp, Inc. $CBAN

Nov -15

Source: defenseworld.net

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Analyzing Colony Bankcorp (CBAN) and Its Peers

Oct -26

Source: defenseworld.net

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Colony Bankcorp, Inc. (CBAN) Q3 2025 Earnings Call Transcript

Oct -23

Source: seekingalpha.com

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Colony Bankcorp Reports Third Quarter 2025 Results

Oct -22

Source: businesswire.com

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Colony Bankcorp, Inc. Announces Date for Third Quarter 2025 Earnings Release and Conference Call

Oct -06

Source: businesswire.com

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TC BANCSHARES INVESTOR ALERT by the Former Attorney General of Louisiana: Kahn Swick & Foti, LLC Investigates Adequacy of Price and Process in Proposed Sale of TC Bancshares, Inc. - TCBC

Sep -26

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.77%)

6. Segments

Bank

Expected Growth: 5.4%

Colony Bankcorp, Inc.'s 5.4% growth is driven by strategic expansion into new markets, increased commercial lending, and a focus on digital banking. Additionally, the bank's strong asset quality, efficient cost structure, and solid capital position have contributed to its growth momentum.

Small Business Specialty Lending

Expected Growth: 8.4%

Colony Bankcorp's Small Business Specialty Lending growth of 8.4% is driven by increasing demand for customized loan solutions, expansion into new markets, strategic partnerships, and a strong online presence. Additionally, the bank's expertise in niche industries, such as healthcare and technology, has enabled it to capitalize on emerging opportunities, further fueling growth.

Mortgage

Expected Growth: 7.4%

Colony Bankcorp, Inc.'s 7.4% mortgage growth is driven by a strong economy, low unemployment, and increasing housing demand. Additionally, the bank's competitive interest rates, expanded digital lending platform, and strategic partnerships with real estate companies have contributed to the growth. Furthermore, the bank's focus on customer service and community development has led to increased customer loyalty and retention.

7. Detailed Products

Commercial Loans

Colony Bankcorp, Inc. offers a range of commercial loans to businesses, including lines of credit, term loans, and construction loans, to help them achieve their financial goals.

Mortgage Loans

Colony Bankcorp, Inc. offers a variety of mortgage loan options, including fixed-rate and adjustable-rate loans, to help individuals and families achieve homeownership.

Consumer Loans

Colony Bankcorp, Inc. offers personal loans, auto loans, and other consumer loans to help individuals finance their personal expenses and purchases.

Deposit Accounts

Colony Bankcorp, Inc. offers a range of deposit accounts, including checking and savings accounts, to help individuals and businesses manage their finances.

Treasury Management Services

Colony Bankcorp, Inc. offers treasury management services, including cash management, wire transfer, and ACH services, to help businesses manage their cash flow and optimize their financial operations.

Wealth Management Services

Colony Bankcorp, Inc. offers wealth management services, including investment and trust services, to help individuals and families achieve their long-term financial goals.

8. Colony Bankcorp, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Colony Bankcorp, Inc. is medium due to the presence of alternative financial institutions and digital payment platforms. However, the company's strong brand recognition and customer loyalty mitigate this threat to some extent.

Bargaining Power Of Customers

The bargaining power of customers is low for Colony Bankcorp, Inc. due to the lack of concentration in the banking industry and the company's diversified customer base.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low for Colony Bankcorp, Inc. due to the company's strong financial position and its ability to negotiate favorable terms with its suppliers.

Threat Of New Entrants

The threat of new entrants is low for Colony Bankcorp, Inc. due to the high barriers to entry in the banking industry, including regulatory hurdles and capital requirements.

Intensity Of Rivalry

The intensity of rivalry is high for Colony Bankcorp, Inc. due to the competitive nature of the banking industry, with many established players vying for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 48.40%
Debt Cost 5.76%
Equity Weight 51.60%
Equity Cost 6.64%
WACC 6.21%
Leverage 93.78%

11. Quality Control: Colony Bankcorp, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Byline Bancorp

A-Score: 6.6/10

Value: 7.5

Growth: 7.9

Quality: 7.0

Yield: 3.0

Momentum: 6.0

Volatility: 8.3

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Home Bancorp

A-Score: 6.5/10

Value: 7.3

Growth: 5.9

Quality: 6.2

Yield: 4.0

Momentum: 8.5

Volatility: 7.3

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ChoiceOne Financial Services

A-Score: 6.1/10

Value: 5.5

Growth: 7.7

Quality: 5.4

Yield: 8.0

Momentum: 3.5

Volatility: 6.7

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Colony Bankcorp

A-Score: 6.0/10

Value: 7.3

Growth: 4.1

Quality: 5.2

Yield: 5.0

Momentum: 6.5

Volatility: 7.7

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CrossFirst Bankshares

A-Score: 5.6/10

Value: 6.3

Growth: 8.3

Quality: 7.8

Yield: 0.0

Momentum: 5.0

Volatility: 6.0

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Primis Financial

A-Score: 5.0/10

Value: 5.0

Growth: 3.9

Quality: 4.3

Yield: 8.0

Momentum: 2.5

Volatility: 6.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

17.11$

Current Price

17.11$

Potential

-0.00%

Expected Cash-Flows