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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's recent momentum is driven by its solid Q4 2025 earnings, with net income of $7.8 million, or $0.42 per diluted share. The company also increased its quarterly cash dividend to $0.12 per share. Additionally, the completion of its merger with TC Bancshares and the appointment of Christi Rubio as Chief of Brand and Business Development are expected to enhance brand awareness and drive sales initiatives. Institutional investors, such as Campbell & CO Investment Adviser LLC and Bailard Inc., have also acquired new positions in the company.

1.c. Company Highlights

2. Colony Bank's Q4 2025 Earnings: A Strong Finish to a Successful Year

Colony Bank reported a significant improvement in its fourth-quarter 2025 operating earnings, with operating net income rising $675,000 from the third quarter. The bank's operating ROA for the 2025 fiscal year stood at 1%, and it has set a new goal of achieving a 1.20% ROA on a quarterly basis starting in the second quarter of 2026. The bank's net interest margin increased 15 basis points to 3.32%, driven by higher earning asset yields and lower cost of funds. The actual EPS came out at $0.48, beating estimates of $0.46. Revenue growth is estimated to be around 4.8% next year.

Publication Date: Mar -09

📋 Highlights
  • Operating Earnings Growth: Q4 operating net income rose $675,000 from Q3, reflecting improved performance.
  • ROA Target: 2025 operating ROA was 1%, with a new goal of 1.20% quarterly ROA starting Q2 2026.
  • TC Federal Merger Progress: Systems conversion on track for Q1 2026, with expected cost savings in <2.5 years.
  • Loan Growth Momentum: Core organic loan growth hit 10.5% in 2025; 2026 growth projected at 8%.
  • Dividend Increase: Quarterly dividend raised to $0.12/share ($0.02 increase YoY), reflecting confidence in stability.

Loan Growth and Credit Quality

The bank reported core loan growth of 10.5% in 2025, excluding the TC Federal acquisition, and expects 2026 loan growth to be around 8%, driven by a strong pipeline. The bank's credit quality remains stable, with classified and criticized loans increasing, but 68% of the increase attributed to TC Federal. The provision expense was $1.65 million, with net charge-offs at $1.6 million, primarily driven by SBA and marketplace loans.

Merger Update and Synergies

The TC Federal merger, which closed in December, is on track, with the integration process expected to be completed in the first quarter. The bank expects to achieve projected cost savings from the merger, with the deal economics remaining strong. The merger is expected to drive growth, particularly in the small business lending line, although it's considered a higher-risk business.

Valuation and Dividend

With a P/TBV ratio of 0.98, the bank's stock appears to be fairly valued. The dividend yield stands at 2.36%, with the Board declaring an increase to the quarterly dividend to $0.12 per share. The bank's ROIC stands at 5.48%, and ROE at 8.98%, indicating a decent return on capital and equity. The net operating expense ratio is expected to improve to the mid-140s by the second quarter, driven by the integration of TC Federal.

Outlook and Growth Prospects

The bank is confident in its ability to fund loan growth with deposits, with a focus on noninterest-bearing and interest-bearing DDA. The investment portfolio is rolling off, and the bank expects to see deposit growth pick up. The effective tax rate is expected to remain around 21% for the year, with no anticipated changes due to the merger. The bank is focused on organic growth, but is also open to M&A opportunities, particularly in Georgia and contiguous states.

3. NewsRoom

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Allen Mooney & Barnes Investment Advisors LLC Makes New Investment in Colony Bankcorp, Inc. $CBAN

Apr -06

Source: defenseworld.net

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Colony Bankcorp, Inc. Announces Date for First Quarter 2026 Earnings Release and Conference Call

Apr -02

Source: businesswire.com

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Colony Bankcorp, Inc. Announces That KBRA Affirms the Company's Ratings

Mar -26

Source: businesswire.com

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Touchstone Bankshares (OTCMKTS:TSBA) and Colony Bankcorp (NASDAQ:CBAN) Financial Comparison

Mar -07

Source: defenseworld.net

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Head to Head Review: Colony Bankcorp (NYSE:CBAN) vs. City (NASDAQ:CHCO)

Feb -20

Source: defenseworld.net

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Colony Bankcorp, Inc. (CBAN) Q4 2025 Earnings Call Transcript

Jan -29

Source: seekingalpha.com

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Colony Bankcorp Reports Fourth Quarter 2025 Results Increases Quarterly Cash Dividend to $0.12 Per Share

Jan -28

Source: businesswire.com

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Financial Comparison: Colony Bankcorp (NASDAQ:CBAN) vs. Equity Bancshares (NASDAQ:EQBK)

Jan -11

Source: defenseworld.net

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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Home Bancorp

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Value: 7.0

Growth: 5.9

Quality: 6.3

Yield: 4.0

Momentum: 7.0

Volatility: 7.3

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ChoiceOne Financial Services

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Value: 5.6

Growth: 7.6

Quality: 5.8

Yield: 8.0

Momentum: 2.5

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Byline Bancorp

A-Score: 6.0/10

Value: 6.2

Growth: 7.9

Quality: 7.7

Yield: 2.0

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Colony Bankcorp

A-Score: 5.7/10

Value: 7.4

Growth: 4.1

Quality: 4.9

Yield: 5.0

Momentum: 4.5

Volatility: 8.0

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A-Score: 5.4/10

Value: 5.2

Growth: 8.2

Quality: 7.8

Yield: 0.0

Momentum: 5.0

Volatility: 6.0

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Primis Financial

A-Score: 5.1/10

Value: 5.3

Growth: 3.9

Quality: 4.5

Yield: 7.0

Momentum: 4.0

Volatility: 6.0

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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

20.99$

Current Price

20.99$

Potential

-0.00%

Expected Cash-Flows