Third Quarter 2026
Filed Oct 28, 2026COLONY BANKCORP, INC. REPORTS THIRD QUARTER 2026 RESULTS DECLARES QUARTERLY CASH DIVIDEND OF $0.12 PER SHARE
Third-quarter operating earnings, net interest income, net interest margin and noninterest income improved from the prior-year period, while reported net income declined sequentially and asset-quality measures weakened.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net income, third quarter 2026GAAP | $10.5M | – | – |
| Diluted earnings per share, third quarter 2026GAAP | $0.50 per diluted share | – | – |
| Operating net income, third quarter 2026non-GAAP | $11.6M | – | – |
| Operating earnings per diluted share, third quarter 2026non-GAAP | $0.54 of operating earnings per diluted share | – | – |
| Net interest income, third quarter 2026GAAP | $30.38M | – | – |
| Net interest income, on a tax-equivalent basis, third quarter 2026non-GAAP | $30.5M | – | – |
| Net interest income, nine months ended September 30, 2026GAAP | $89.45M | – | – |
| Net interest income, on a tax-equivalent basis, nine months ended September 30, 2026non-GAAP | $89.9M | – | – |
| Net interest margin, third quarter 2026non-GAAP | 3.59% | – | – |
| Net interest margin, nine months ended September 30, 2026non-GAAP | 3.53% | – | – |
| Provision for credit losses, third quarter 2026GAAP | $1.7M | – | – |
| Provision for credit losses, nine months ended September 30, 2026GAAP | $5.3M | – | – |
| Noninterest income, third quarter 2026GAAP | $12.3M | – | 21.6% |
| Noninterest income, nine months ended September 30, 2026GAAP | $35.1M | – | 20.1% |
| Noninterest expense, third quarter 2026GAAP | $27.6M | – | – |
| Noninterest expense, nine months ended September 30, 2026GAAP | $81.8M | – | – |
| Income taxes, third quarter 2026GAAP | $2.82M | – | – |
| Net income, nine months ended September 30, 2026GAAP | $29.58M | – | – |
| Diluted earnings per share, nine months ended September 30, 2026GAAP | $ 1.40 | – | – |
| Return on average assets, third quarter 2026GAAP | 1.14 % | – | – |
| Return on average equity, third quarter 2026GAAP | 10.66 % | – | – |
| Operating return on average assets, third quarter 2026non-GAAP | 1.26 % | – | – |
| Operating return on average equity, third quarter 2026non-GAAP | 11.71 % | – | – |
| Operating efficiency ratio, third quarter 2026non-GAAP | 61.89 % | – | – |
| Pre-provision net revenue, third quarter 2026non-GAAP | $14.99M | – | – |
| Operating pre-provision net revenue, third quarter 2026non-GAAP | $16.28M | – | – |
| Total assets at September 30, 2026GAAP | $3.65B | increase of $20.3 million | – |
| Loans, net of unearned income at September 30, 2026GAAP | $2.48B | increase of $12.3 million, or 0.50% | – |
| Total deposits at September 30, 2026GAAP | $2.96B | decrease of $14.5 million | – |
| Total borrowings at September 30, 2026GAAP | $263.2M | increase of $30.0 million | – |
| Total stockholders’ equity at September 30, 2026GAAP | $391.8M | – | – |
| Tangible book value per common share, third quarter 2026non-GAAP | $ 15.16 | – | – |
| Total nonperforming assets at September 30, 2026GAAP | $25M | increase of $4.1 million | – |
| Net loan charge-offs, third quarter 2026GAAP | $1.7 million, or 0.27% of average loans | – | – |
| Allowance for credit losses on loans at September 30, 2026GAAP | $22.5 million, or 0.91% of total loans | – | – |
| Classified loans at September 30, 2026GAAP | $53.89M | – | – |
| Criticized loans at September 30, 2026GAAP | $103.9M | – | – |
| Preliminary consolidated tier one leverage ratio at September 30, 2026other | 10.57% | – | – |
| Preliminary consolidated tier one capital ratio at September 30, 2026other | 14.41% | – | – |
| Preliminary consolidated total risk-based capital ratio at September 30, 2026other | 16.78% | – | – |
| Preliminary consolidated common equity tier one capital ratio at September 30, 2026other | 13.50% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Banking DivisionNet income was $ 10,192 (dollars in thousands). | Net interest income: $ 29,182 (dollars in thousands); Noninterest income: $ 8,336 (dollars in thousands) | – | – |
| Mortgage Banking DivisionMortgage production was $96.5 million and mortgage sales totaled $69.2 million in the third quarter of 2026. | Net interest income: $ 59 (dollars in thousands); Noninterest income: $ 2,063 (dollars in thousands) | – | – |
| Small Business Specialty Lending DivisionClosed $29.9 million in SBA loans and sold $12.7 million in SBA loans in the third quarter of 2026. | Net interest income: $ 1,136 (dollars in thousands); Noninterest income: $ 1,867 (dollars in thousands) | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- Quarterly cash dividend of $0.12 per share declared on October 28, 2026.
- Dividend to be paid 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.
What drove it
- Net interest income, on a tax-equivalent basis, increased as income on interest earning assets rose and was partially offset by higher expense on interest bearing liabilities.
- Net interest margin improvement reflected the acquisition of TC Bancshares, Inc., higher interest earning asset yields and decreased cost of funds.
- Noninterest income growth included service charges on deposits, mortgage fee income, interchange fees, BOLI income, wealth advisor income and an insurance gain of $813 thousand related to a previous branch building fire.
- Core loans were $ 2,048,239 (dollars in thousands) and purchased loans were $ 428,852 (dollars in thousands) at September 30, 2026.
- Savings and money market deposits increased $15.1 million and time deposits increased $21.4 million from June 30, 2026 to September 30, 2026.
Concerns
- Loan growth was lower in the third quarter and management said softer growth is likely in the near-term.
- Nonperforming assets increased to $25.0 million from $20.9 million, and classified and criticized loans increased from the prior quarter.
- The increase in classified and criticized loans was primarily driven by the downgrade of one construction relationship with circumstances unique to the individual borrower.
- Noninterest expense increased to $27.6 million from $24.6 million in the third quarter of 2025, including acquisition and integration-related expenses.
- Total deposits decreased $14.5 million from June 30, 2026, including decreases in noninterest-bearing demand deposits and interest-bearing demand deposits.
What to watch
- Near-term loan growth under the Company’s stated pricing discipline.
- Asset-quality trends following the downgrade of one construction relationship.
- Deposit mix, funding costs and the sustainability of net interest margin improvement.
- Legal close, systems conversion and customer integration for First Reliance, currently expected in the second quarter of 2027.
- Execution of the planned sale-leaseback and investment securities portfolio repositioning, including the expected effects on liquidity, tangible book value per share and recurring earnings.
Balance sheet and cash flow
- Cash and cash equivalents were $ 189,308 (dollars in thousands) at September 30, 2026.
- Total assets were $3.65 billion at September 30, 2026.
- Total deposits were $2.96 billion at September 30, 2026.
- Total borrowings were $263.2 million at September 30, 2026.
- On October 27, 2026, the Bank entered into a Purchase and Sale Agreement for three retail banking branch properties for an aggregate gross purchase price of approximately $19.9 million.
- Aggregate first-year base rent under the triple-net lease is approximately $1.65 million, subject to 2.0% annual escalations.
- The Company estimates an aggregate pre-tax gain of approximately $15 million from the sale-leaseback transaction, expected to be offset by realized losses from a planned repositioning of the investment securities portfolio.
Analysis
Colony reported third-quarter GAAP net income of $10.5 million, or $0.50 per diluted share, compared with $5.8 million, or $0.33 per diluted share, in the third quarter of 2025. Operating net income was $11.6 million and operating earnings per diluted share were $0.54, compared with $8.2 million and $0.47, respectively, a year earlier. Sequentially, GAAP net income declined from $10.9 million and $0.51 per diluted share, while operating net income increased from $11.0 million and operating earnings per diluted share increased from $0.52.
Core earnings benefited from materially higher net interest income. Tax-equivalent net interest income was $30.5 million versus $22.9 million in the prior-year quarter, while net interest margin was 3.59% versus 3.17%. Management attributed margin expansion to the TC Bancshares acquisition, higher earning-asset yields and decreased cost of funds. Loan balances were $2.48 billion at September 30, 2026, up $12.3 million, or 0.50%, from the prior quarter, but management said loan growth was lower and expects softer near-term growth under its pricing discipline.
Fee income also supported results, with GAAP noninterest income of $12.3 million, up $2.2 million, or 21.6%, from the third quarter of 2025. The quarter included an insurance gain of $813 thousand associated with a previous branch building fire, while noninterest income also benefited from service charges, mortgage fee income, interchange fees, BOLI income and wealth advisor income. GAAP noninterest expense was $27.6 million versus $24.6 million a year earlier, reflecting salaries and employee benefits, occupancy and equipment, information technology, and acquisition and integration-related expenses.
Credit metrics require attention. Nonperforming assets rose to $25.0 million from $20.9 million in the second quarter, classified loans rose to $53.9 million from $33.6 million, and criticized loans rose to $103.9 million from $86.7 million. Management identified the downgrade of one construction relationship as the principal reason for higher classified and criticized loans. Net loan charge-offs were $1.7 million, or 0.27% of average loans, versus $1.8 million, or 0.29%, in the prior quarter, and the allowance for credit losses was $22.5 million, or 0.91% of total loans.
Capital and liquidity remained key strategic themes. Total deposits were $2.96 billion, down $14.5 million from June 30, while total borrowings increased $30.0 million to $263.2 million. The Board declared a $0.12 per share quarterly dividend. Separately, Colony announced an approximately $19.9 million branch-property sale-leaseback, estimating an aggregate pre-tax gain of approximately $15 million that is expected to be offset by realized losses on a planned securities repositioning. The Company intends to use net proceeds to enhance liquidity, support future loan growth and improve balance-sheet flexibility and interest-rate-risk profile, while First Reliance systems conversion and customer integration are currently expected in the second quarter of 2027.
Management, verbatim
We are pleased to report improved financial performance in the third quarter, driven by solid execution and sustained profitability across our core franchise.
Heath Fountain, Chief Executive Officer
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.
Heath Fountain, Chief Executive Officer
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.
Heath Fountain, Chief Executive Officer
Not in the filing
stated, not guessed- Total revenue was not reported.
- Gross margin was not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Share repurchases were not reported.
- Forward revenue, earnings, expense, tax-rate or margin guidance was not reported.
- Prior outlook section was not provided.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.