COLONY BANKCORP INC
For the period ended Dec 31, 2025. Filed Mar 13, 2026.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2025 · Filed Mar 13, 2026
CBAN$20.24+1.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-K
Period ended 2024-12-31; filed 2025-03-14.
0000711669-25-000046
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-K
Period ended 2025-12-31; filed 2026-03-13.
0000711669-26-000007
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 158 previous paragraphs and 157 current paragraphs.
105 unchanged; 46 reworded; 5 added; 6 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 22 previous and 22 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (5)
Current report
Effective October 1, 2025, the Company early adopted ASU 2025-08, Financial Instruments - Credit Losses (Topic 326): Purchased Loans, which amended the accounting for certain purchased financial assets. Under the new guidance, the Company is allowed to apply the 'gross-up' approach to acquired loans that meet the definition of 'purchased seasoned loans' (PSLs), whereby an allowance for credit losses is recognized at the acquisition date with an offsetting adjustment to the amortized cost basis of the assets. This aligns the accounting for PSLs with the treatment of purchased financial assets with credit deterioration (PCD assets). This change eliminated the immediate recognition of day-one credit loss expense and resulted in an increase to the allowance for credit losses on loans of $4.6 million and an increase to the allowance for unfunded commitments of $134,000.
Current report
Noninterest expense in 2025 increased by$9.7 million, or 11.72% from 2024. All variances were impacted by the acquisition of TC Bancshares, Inc. on December 1, 2025. The Company's increases were seen in salaries and employee benefits, occupancy and equipment, acquisition related expenses, information technology, professional fees, advertising and public relations and other noninterest expense. These increases were offset by a decrease in communications expense. The increase in salaries and employee benefits was primarily due to the aforementioned acquisitions of the Ellerbee Insurance Agency and TC
Current report
Bancshares, Inc. as well as employee insurance and bonus expense which was partially offset by a decrease in stock award expense and an increase in deferred costs accounted for under ASC 310-20 due to loan growth. The increase in occupancy and equipment expenses can be seen in increases in repair and maintenance expense as well as lease expenses. Acquisition expenses in 2025 were all related to the TC Bancshares, Inc. acquisition and consisted primarily of professional and information technology expenses. The increase in information technology expense is due to increases in software and ATM expense. Professional fees saw increases in accounting and consulting fees, partially offset by decreases in legal fees, excluding acquisition related legal fees. The increase in advertising and public relations is primarily related to increases in subscription services and business development expenses, partially offset by decreases in appraisal fees. The increase in other noninterest expense of$1.8 millionis primarily the result of a nonrecoverable loss of $1.3 million related to a wire fraud incident recorded in the third quarter of 2025 as well as changes in the valuation of the SBA servicing asset. The decrease in communications expense can be explained by fluctuations in data circuit fees
Current report
Construction, land & land development. Construction, land and land development loans increased by $97.5 million, or 47.5%, at December 31, 2025 to $302.5 million from$205.0 million at December 31, 2024. This increase was primarily attributable to the acquisition of TC Bancshares, Inc. and the continued growth of the business in 2025.
Current report
Residential Real Estate Loans. Residential real estate loans increased by$115.4 million or 33.5%, at December 31, 2025 to $459.5 million from $344.2 million at December 31, 2024. This increase was primarily attributable to the acquisition of TC
Removed paragraphs (6)
Previous report
Income Taxes
Previous report
The assessment of income tax assets and liabilities involves the use of estimates, assumptions, interpretation, and judgment concerning certain accounting pronouncements and federal and state tax codes. There can be no assurance that future events, such as court decisions or positions of federal and state taxing authorities, will not differ from management’s current assessment, the impact of which could be significant to the consolidated results of operations and reported earnings.
Previous report
Colony files a consolidated federal income tax return and a combined state income tax return (both of which include Colony and its wholly owned subsidiaries). Accordingly, amounts equal to tax benefits of those companies having taxable federal losses or credits are reimbursed by the companies that incur federal tax liabilities. Amounts provided for income tax expense are based on income reported for financial statement purposes and do not necessarily represent amounts currently payable under tax laws. Deferred income tax assets and liabilities are computed quarterly for differences between the financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax law rates applicable to the periods in which the differences are expected to affect taxable income. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through provision for income tax expense. Valuation allowances are established when it is more likely than not that a portion of the full amount of the deferred tax asset will not be realized. In assessing the ability to realize deferred tax assets, management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies. Colony may also recognize a liability for unrecognized tax benefits from uncertainty in income taxes. Unrecognized tax benefits represent the differences between a tax position taken or expected to be taken in a tax return and the benefit recognized and measured in the financial statements. Penalties related to unrecognized tax benefits are classified as income tax expense.
Previous report
(a)Changes in net interest income for the periods, based on either changes in average balances or changes in average rates for interest-earning assets and interest-bearing liabilities, are shown on this table. During each year there are numerous and simultaneous balance and rate changes; therefore, it is not possible to precisely allocate the changes between balances and rates. For the purpose of this table, changes that are not exclusively due to balance changes or rate changes have been attributed to rates.
Previous report
Noninterest expense in 2024 decreased slightly by$231,000, or 0.28% from 2023. The Company's decreases were seen in occupancy and equipment, professional fees, communications and other noninterest expense. These decreases were offset by increases in salaries and employee benefits, information technology, and advertising and public relations. The decrease in occupancy and equipment expenses can be seen in decreases in repair and maintenance expense as well as rental and lease expenses. The decrease in professional fees is the result of lower accounting, legal and consulting fees in 2024 compared to 2023. The decrease in other noninterest expense of$1.2 millionis the result of decreases in the FDIC assessment, amortization of intangibles, stationery and supplies and other deposit related losses. An increase was seen in salaries and employee benefits which was primarily attributable to increased bonus and commission expenses. The increase in information technology expense was related to increased software expenses and advertising and public relations saw increases in advertising and contribution expenses during 2024.
Previous report
Construction, land & land development. Construction, land and land development loans decreased by $42.1 million, or 17.0%, at December 31, 2024 to $205.0 million from$247.1 million at December 31, 2023. This decrease was partially due to interest rates remaining at higher levels throughout the first nine months of 2024 resulting in a decrease in consumer residential construction loans.
Reworded paragraphs (46)
Previous wording
Colony Bankcorp, Inc. is a bank holding company headquartered in Fitzgerald, Georgia that provides, through its wholly-owned subsidiary Colony Bank (collectively referred to as the Company), a broad array of products and services throughout north, central, south and coastal Georgia markets, Birmingham, Alabama and Tallahassee, Florida. The Company offers commercial and consumer banking services as well as specialized solutions including mortgage, government guaranteed lending, consumer insurance, wealth management and merchant services.
Current wording
Colony Bankcorp, Inc. is a bank holding company headquartered in Fitzgerald, Georgia that provides, through its wholly-owned subsidiary Colony Bank (collectively referred to as the Company), a broad array of products and services throughout north, central, south and coastal Georgia markets, Birmingham, Alabama and Santa Rosa Beach, Tallahassee and Jacksonville, Florida. The Company offers commercial and consumer banking services as well as specialized solutions including mortgage, government guaranteed lending, consumer insurance, credit cards, wealth management and merchant services.
Previous wording
The Company paid dividends to its shareholders throughout 2024 and 2023 on a quarterly basis. In 2024, we had a quarterly dividend of$0.1125 per share of common stock and in 2023, we had a quarterly dividend of $0.1100 per share of common stock.
Current wording
The Company paid dividends to its shareholders throughout 2025 and 2024 on a quarterly basis. In 2025, we had a quarterly dividend of$0.1150 per share of common stock and in 2024, we had a quarterly dividend of $0.1125 per share of common stock.
Previous wording
Going forward, the impact of utilizing the CECL approach to calculate the allowance for credit losses will be significantly influenced by the composition, characteristics and quality of our loan portfolio, as well as the prevailing economic conditions and forecasts utilized. Material changes to these and other relevant factors may result in greater volatility to the provision for credit losses, and therefore, greater volatility to our reported earnings. See Notes 1 and 4, included elsewhere in this Form 10-K, for additional information on the allowance for credit losses and the allowance for unfunded commitments.
Current wording
Going forward, the impact of utilizing the CECL approach to calculate the allowance for credit losses will be significantly influenced by the composition, characteristics and quality of our loan portfolio, as well as the prevailing economic conditions and forecasts utilized. Material changes to these and other relevant factors may result in greater volatility to the provision for credit losses, and therefore, greater volatility to our reported earnings. See Notes 1 and 5, included elsewhere in this Form 10-K, for additional information on the allowance for credit losses and the allowance for unfunded commitments.
Previous wording
The Company’s results of operations are determined by its ability to effectively manage interest income and expense, to minimize loan and investment losses, to generate noninterest income and to control noninterest expense. Since market forces and economic conditions beyond the control of the Company determine interest rates, the ability to generate net interest income is dependent upon the Company’s ability to obtain an adequate spread between the rate earned on interest-earning assets and the rate paid on interest-bearing liabilities. Thus, the key performance for net interest income is the interest margin or net yield, which is taxable-equivalent net interest income divided by average interest-earning assets. Net income available to common shareholders totaled $23.9 million, or $1.36 per diluted shares in 2024, compared to $21.7 million, or $1.24 per diluted shares in 2023.
Current wording
The Company’s results of operations are determined by its ability to effectively manage interest income and expense, to minimize loan and investment losses, to generate noninterest income and to control noninterest expense. Since market forces and economic conditions beyond the control of the Company determine interest rates, the ability to generate net interest income is dependent upon the Company’s ability to obtain an adequate spread between the rate earned on interest-earning assets and the rate paid on interest-bearing liabilities. Thus, the key performance for net interest income is the interest margin or net yield, which is taxable-equivalent net interest income divided by average interest-earning assets. Net income available to common shareholders totaled $28.3 million, or $1.59 per diluted shares in 2025, compared to $23.9 million, or $1.36 per diluted shares in 2024.
Previous wording
Net interest income is the difference between interest income on earning assets, such as loans and securities, and interest expense on liabilities, such as deposits and borrowings, which are used to fund those assets. Net interest income is the Company’s largest component of income, representing 65.9% of total income during 2024 and 68.7% of total income during 2023.
Current wording
Net interest income is the difference between interest income on earning assets, such as loans and securities, and interest expense on liabilities, such as deposits and borrowings, which are used to fund those assets. Net interest income is the Company’s largest component of income, representing 69.5% of total income during 2025 and 65.9% of total income during 2024.
Previous wording
The Company’s loan portfolio is significantly affected by changes in the prime interest rate. The prime interest rate, which is the rate offered on loans to borrowers with strong credit, was 7.50% as of December 31, 2024 and 8.50% as of December 31, 2023. The Federal Reserve Board sets general market rates of interest, including the deposit and loan rates offered by many financial institutions. During 2024, the prime interest rate decreased 1.00%. During 2023, the prime interest rate increased 1.00%.
Current wording
The Company’s loan portfolio is significantly affected by changes in the prime interest rate. The prime interest rate, which is the rate offered on loans to borrowers with strong credit, was 6.75% as of December 31, 2025 and 7.50% as of December 31, 2024. The Federal Reserve Board sets general market rates of interest, including the deposit and loan rates offered by many financial institutions. During 2025, the prime interest rate decreased 0.75%. During 2024, the prime interest rate decreased 1.00%.
Previous wording
The Company maintains about 21.74% of its loan portfolio in adjustable rate loans that reprice with prime rate changes, while a little over half of its other loans mature within 5 years. The liabilities to fund assets are primarily in non-maturing core deposits and short-term certificates of deposit that mature within one year. During 2024, Federal Reserve rates decreased 100 basis points. During 2023, Federal Reserve rates increased 100 basis points. We have seen the net interest margin decrease to 2.72% for 2024, compared to 2.83% for 2023 primarily due to the rates on interest bearing liabilities continuing to outpace the rates on interest earning assets.
Current wording
The Company maintains about 41.60% of its loan portfolio in adjustable rate loans that reprice with prime rate changes, while a little over half of its other loans mature within 5 years. The liabilities to fund assets are primarily in non-maturing core deposits and short-term certificates of deposit that mature within one year. During 2025, Federal Reserve rates decreased 75 basis points. During 2024, Federal Reserve rates decreased 100 basis points. We have seen the net interest margin increase to 3.14% for 2025, compared to 2.72% for 2024 primarily due to lower rates paid on interest bearing liabilities while maintaining increased rates on loans.
Previous wording
Taxable-equivalent net interest income for 2024 decreased by $2.2 million or 2.8%, compared to 2023, primarily due to increases in loan volume and rates, offset by increases in deposit rates and increases in borrowings to fund loan growth. The average volume of interest-earning assets during 2024 increased $36.8 million compared to 2023, primarily related to increases in loans and deposits in banks and short-term investments. The total yield on interest-earning assets increased year over year with increases in loan and deposits in banks and short-term investments volume, partially offset by decreases in investment securities balances along with increased rates on loan and deposits in banks.
Current wording
Taxable-equivalent net interest income for 2025 increased by $15.9 million or 20.7%, compared to 2024, primarily due to increases in loan volume and rates along with decreases in deposit rates. The average volume of interest-earning assets during 2025 increased $127.1 million compared to 2024, primarily related to increases in loans and deposits in banks and short-term investments. The total yield on interest-earning assets increased year over year with increases in loan and deposits in banks and short-term investments volume, partially offset by decreases in investment securities balances along with increased rates on loans in banks.
Previous wording
The average volume of loans increased $50.3 million in 2024 compared to 2023, which primarily reflects organic loan growth in the first half of 2024. The average yield on loans increased by 51 basis points in 2024 compared to 2023, primarily due to the increased loan volume in addition to the previous year's increase in rates. The average volume of interest-bearing deposits increased $58.1 million in 2024 compared to 2023. Average savings and interest-bearing demand deposits increased $74.1 million offset by a decrease in average time deposits of $16.0 million in 2024 compared to 2023.
Current wording
The average volume of loans increased $131.8 million in 2025 compared to 2024, which reflects a combination of organic and acquired loan growth in 2025. The average yield on loans increased by 24 basis points in 2025 compared to 2024, primarily due to the increased loan volume. The average volume of interest-bearing deposits increased $106.1 million in 2025 compared to 2024. Average savings and interest-bearing demand deposits increased $65.1 million and average time deposits increased $41.0 million in 2025 compared to 2024. Increases in average balances attributable to the acquisition of TC Bancshares, Inc. on December 1, 2025, were $34.7 million in loans, $20.3 million in interest-bearing demand and savings deposits and $11.0 million in time deposits.
Previous wording
Accordingly, the ratio of average interest-bearing deposits to total average deposits was 81.81% in 2024 and 79.47% in 2023. For 2024, this deposit mix, combined with an increase in interest rates, had the effect of increasing the average cost of total deposits by 66 basis points in 2024 compared to 2023. This was partially offset by a decrease of 13 basis points in other interest-bearing liabilities in 2024 compared to 2023 due to 2024 borrowings being at lower interest rates.
Current wording
Accordingly, the ratio of average interest-bearing deposits to total average deposits was 83.01% in 2025 and 81.81% in 2024. For 2025, this deposit mix, combined with a decrease in interest rates, had the effect of decreasing the average cost of total deposits by 27 basis points in 2025 compared to 2024. Other interest-bearing liabilities also decreased by 11 basis points for the same periods.
Previous wording
The Company’s net interest spread, which represents the difference between the average rate earned on interest-earning assets and the average rate paid on interest-bearing liabilities, decreased to 2.23% in 2024 from 2.42% in 2023 and was also a result of deposit rate increases and an increase in borrowings, partially offset by increases in loan volume and rates. The net interest spread, as well as the net interest margin, will be impacted by future changes in short-term and long-term interest rate levels, as well as the impact from the competitive environment. A discussion of the effects of changing interest rates on net interest income is set forth in "Market Risk and Interest Rate Sensitivity" included elsewhere in this report.
Current wording
The Company’s net interest spread, which represents the difference between the average rate earned on interest-earning assets and the average rate paid on interest-bearing liabilities, increased to 2.70% in 2025 from 2.23% in 2024 and was also a result of deposit rate decreases as well as increases in loan volume and rates. The net interest spread, as well as the net interest margin, will be impacted by future changes in short-term and long-term interest rate levels, as well as the impact from the competitive environment. A discussion of the effects of changing interest rates on net interest income is set forth in "Market Risk and Interest Rate Sensitivity" included elsewhere in this report.
Previous wording
(1)The average balance of loans includes the average balance of nonaccrual loans. Income on such loans is recognized and recorded on the cash basis. Taxable-equivalent adjustments totaling $229,000 and $216,000 for the years ended December 31, 2024 and 2023, respectively, are calculated using the statutory federal tax rate and are included in income and fees on loans. Accretion income of $47,000 and $165,000 for the years ended December 31, 2024 and 2023 are also included in income and fees on loans.
Current wording
(1)The average balance of loans includes the average balance of nonaccrual loans. Income on such loans is recognized and recorded on the cash basis. Taxable-equivalent adjustments totaling $330,000 and $229,000 for the years ended December 31, 2025 and 2024, respectively, are calculated using the statutory federal tax rate and are included in income and fees on loans. Accretion income of $489,000 and $47,000 for the years ended December 31, 2025 and 2024 are also included in income and fees on loans.
Previous wording
(2)Taxable-equivalent adjustments totaling $453,000 and $513,000 for the years ended December 31, 2024 and 2023, respectively, are calculated using the statutory federal tax rate and are included in tax-exempt interest on investment securities.
Current wording
(2)Taxable-equivalent adjustments totaling $412,000 and $453,000 for the years ended December 31, 2025 and 2024, respectively, are calculated using the statutory federal tax rate and are included in tax-exempt interest on investment securities.
Previous wording
Provision for credit losses totaled $3.1 million in 2024 compared to $3.6 million in 2023. The amount of provision expense recorded in each period was the amount required such that the total allowance for credit losses reflected the appropriate balance, in the estimation of management, sufficient to cover expected credit losses over the expected life of a loan exposure and unfunded commitments where the likelihood is that funding will occur. The provision for credit losses for the years ended December 31, 2024 and 2023 includes $3.6 million and $3.9 million, respectively, in credit losses on loans and $562,000 and $286,000, respectively, in release of credit losses on unfunded commitments. See the section captioned “Allowance for Credit Losses” elsewhere in this discussion for further analysis of the provision for credit losses. The decrease in provision for credit losses for the year ended December 31, 2024 compared to 2023 is relatedto the change in our loan balances year over year. See the sections captioned “Loans" and "Allowance for Credit Losses” elsewhere in this discussion for further analysis of the provision for credit losses. Net charge-offs for the year ended December 31, 2024 were$3.0 million compared to$1.6 million for the same period in 2023. As of December 31, 2024, Colony’s allowance for credit losses was $19.0 million, or 1.03% of total loans, compared to $18.4 million, or 0.98% of total loans, at December 31, 2023. At December 31, 2024 and 2023, nonperforming assets were $11.3 million and $10.7 million, or 0.36% and 0.35% of total assets, respectively, with credit quality in the overall loan portfolio remaining strong.
Current wording
Provision for credit losses totaled $4.5 million in 2025 compared to $3.1 million in 2024. The amount of provision expense recorded in each period was the amount required such that the total allowance for credit losses reflected the appropriate balance, in the estimation of management, sufficient to cover expected credit losses over the expected life of a loan exposure and unfunded commitments where the likelihood is that funding will occur. The provision for credit losses for the years ended December 31, 2025 and 2024 includes $4.5 million and $3.6 million, respectively, in credit losses on loans and $3,000 in provision for and $562,000 in release of, respectively, credit losses on unfunded commitments. See the section captioned “Allowance for Credit Losses” elsewhere in this discussion for further analysis of the provision for credit losses. The increase in provision for credit losses for the year ended December 31, 2025 compared to 2024 is primarily relatedto the change in our loan balances year over year which was impacted by the acquisition of TC Bancshares, Inc. on December 1, 2025, with the addition of $412.7 million in loan balances. See the sections captioned “Loans" and "Allowance for Credit Losses” elsewhere in this discussion for further analysis of the provision for credit losses. Net charge-offs for the year ended December 31, 2025 were$5.1 million compared to$3.0 million for the same period in 2024. As of December 31, 2025, Colony’s allowance for credit losses was $23.0 million, or 0.97% of total loans, compared to $19.0 million, or 1.03% of total loans, at December 31,
Previous wording
Noninterest income in 2024 increased$3.7 million, or 10.50% from 2023. The Company's increases were primarily seen in service charges on deposit accounts, gains on sales of SBA loans, BOLI income and other noninterest income, which included increases in equity investment income and income on wealth advisory and merchant services. These increases were offset by losses on sales of investment securities and decreases in mortgage fee income, interchange fees and insurance commissions. The increase in service charges on deposit accounts can be attributed to our ability to continue to grow deposits, particularly lower cost transactional deposit accounts despite the challenging rate environment. The increase of$4.2 million in gain on sales of SBA loans is due to the sale of 451 loans in 2024 compared to 81 loans in 2023. The increase of $766,000 in other noninterest income was attributable to equity investment market valuation gains of$270,000 in 2024 compared to$156,000 in 2023, an increase of$235,000 in wealth advisory and merchant services along with increases in SBA servicing and other related fee income of$671,000, offset by a decrease in sales of assets of $446,000. The decrease in mortgage fee income was a result of lower mortgage production year over year and interchange fees decreased due to fluctuations in the buying habits of consumers. Investment securities were sold in 2024 for the purpose of restructuring underperforming assets in order to reinvest at higher yields and resulted in losses of$1.8 million. There were no sales of investment securities in 2023.
Current wording
Noninterest income in 2025 increased$905,000, or 2.30% from 2024. All variances were impacted by the acquisition of TC Bancshares, Inc. on December 1, 2025. Increases were seen in service charges on deposit accounts, mortgage fee income, losses on sales of investment securities, interchange fees, BOLI income, insurance commission and other noninterest income, which included increases in equity investment income and income on wealth advisory and merchant services . These increases were offset by a decrease in gain on sales of SBA loans. The increase in service charges on deposit accounts is primarily a result of increased deposit account fees implemented in June 2025 as well as our ability to continue to grow deposits. The increase in mortgage fee income was a result of higher mortgage production year over year and interchange fees increased as a result of customer use of our card programs andfluctuating purchase habits between periods. Insurance commissions increased$1.1 million which was driven by increased volume in the Company's insurance division, impacted by the acquisition of the Ellerbee Insurance Agency in the second quarter of 2025. The increase of $881,000 in other noninterest income was attributable to equity investment market valuation gains of$300,000 in 2025 compared to$270,000 in 2024, an increase of$235,000 in wealth advisory and merchant services along with increases in SBA servicing and other related fee income of$156,000. Investment securities were sold in 2025 and 2024 for the purpose of restructuring underperforming assets in order to reinvest at higher yields and resulted in losses of$1.0 million and $1.8 million, respectively. The decrease of$3.9 million in gain on sales of SBA loans is due to the sale of only 208 loans in 2025 compared to 451 loans in 2024.
Previous wording
The following table illustrates, during the years presented, the mix of the Company’s funding sources and the assets in which those funds are invested as a percentage of the Company’s average total assets for the period indicated. Average assets totaled $3.05 billion in 2024 compared to $3.02 billion in 2023.
Current wording
The following table illustrates, during the years presented, the mix of the Company’s funding sources and the assets in which those funds are invested as a percentage of the Company’s average total assets for the period indicated. Average assets totaled $3.18 billion in 2025 compared to $3.05 billion in 2024.
Previous wording
Deposits continue to be the Company’s primary source of funding. Over the comparable periods, interest-bearing deposits continues to be the largest component of the Company's mix of deposits. Average interest-bearing deposits totaled 81.8% in 2024 compared to 79.5% of total average deposits in 2023.
Current wording
Deposits continue to be the Company’s primary source of funding. Over the comparable periods, interest-bearing deposits continues to be the largest component of the Company's mix of deposits. Average interest-bearing deposits totaled 83.0% in 2025 compared to 81.8% of total average deposits in 2024.
Previous wording
Overview. Loans totaled $1.8 billion at December 31, 2024, a decrease of 2.1% from $1.9 billion at December 31, 2023. The majority of the Company’s loan portfolio is comprised of real estate loans. Commercial and residential real estate which is primarily 1-4 family residential properties, nonfarm nonresidential properties and real estate construction loans made up 83.6% and 83.8% of total loans at December 31, 2024 and December 31, 2023, respectively. Commercial, financial and agriculture loans represents 11.6% of the loans at December 31, 2024 and 2023. Consumer and other loans increased to 4.8% of total loans at December 31, 2024 from 3.3% at December 31, 2023.
Current wording
Overview. Loans totaled $2.4 billion at December 31, 2025, an increase of 29.2% from $1.8 billion at December 31, 2024, which was attributable to a combination of organic growth and the TC Bancshares, Inc. acquisition. The majority of the Company’s loan portfolio is comprised of real estate loans. Commercial and residential real estate loans which is primarily for 1-4 family residential properties, nonfarm nonresidential properties and real estate construction loans made up 84.5% and 83.6% of total loans at December 31, 2025 and December 31, 2024, respectively. Commercial, financial and agriculture loans represents 9.2% of total loans at December 31, 2025 and 11.6% at December 31, 2024. Consumer and other loans increased to 6.3% of total loans at December 31, 2025 from 4.8% at December 31, 2024. All categories of loans reflect increases as a result of the acquisition of TC Bancshares, Inc. in December 2025.
Previous wording
Commercial, financial & agricultural. Commercial, financial and agricultural loans at December 31, 2024 decreased by $28.8 million, or 11.9% to $213.9 million from December 31, 2023 at $242.8 million. This decrease was related to loan payoffs during 2024 of a small number of larger commercial and industrial loans. The Company’s commercial, financial and agricultural loans are a diverse group of loans to small, medium and large businesses. The purpose of these loans varies from supporting seasonal working capital needs to term financing of equipment. These agricultural lines typically reduce in size at year end as crops are sold. While some short-term loans may be made on an unsecured basis, most are secured by the assets being financed with collateral margins that are consistent with the Company’s loan policy guidelines.
Current wording
Commercial, financial & agricultural. Commercial, financial and agricultural loans at December 31, 2025 increased by $4.6 million, or 2.2% to $218.5 million from December 31, 2024 at $213.9 million. This increase was related to the acquisition of TC Bancshares, Inc. mentioned above partially offset by loan payoffs during the year. The Company’s commercial, financial and agricultural loans are a diverse group of loans to small, medium and large businesses. The purpose of these loans varies from supporting seasonal working capital needs to term financing of equipment. These agricultural lines typically reduce in size at year end as crops are sold. While some short-term loans may be made on an unsecured basis, most are secured by the assets being financed with collateral margins that are consistent with the Company’s loan policy guidelines.
Previous wording
Other commercial real estate. Other commercial real estate loans increased by $16.3 million, or 1.7%, at December 31, 2024 to $990.6 million from$974.4 million at December 31, 2023. This increase was primarily attributable to increases in owner occupied commercial real estate and farmland loans partially offset by decreases in non-owner occupied commercial real estate and multifamily loans. Also, the increase was impacted by the current lending environment, rate environment, and the Company's lending appetite. At December 31, 2024, the Company's other commercial real estate loans were comprised of 58.7% of non-owner occupied loans and 41.3% of owner occupied loans.
Current wording
Other commercial real estate. Other commercial real estate loans increased by $259.1 million, or 26.2%, at December 31, 2025 to $1,249.7 million from$990.6 million at December 31, 2024. This increase was primarily attributable to the acquisition of TC Bancshares, Inc. as well as growth of the business in 2025 despite the impact of the current lending and rate environment. At December 31, 2025, the Company's other commercial real estate loans were comprised of 61.6% of non-owner occupied loans and 38.4% of owner occupied loans.
Previous wording
The Company's non-owner occupied portfolio is well diversified as can be seen in the table below as of December 31, 2024.
Current wording
The Company's non-owner occupied portfolio is well diversified as can be seen in the table below as of December 31, 2025 and 2024.
Previous wording
Residential Real Estate Loans. Residential real estate loans decreased by$12.1 million or 3.4%, at December 31, 2024 to $344.2 million from $356.2 million at December 31, 2023. This decrease was attributable to a decline in portfolio 1-4 family residential real estate loans. Residential real estate loans consist of revolving, open-end and closed-end loans as well as those secured by closed-end first and junior liens.
Current wording
Bancshares, Inc. and the continued growth of the business in 2025. Residential real estate loans consist of revolving, open-end and closed-end loans as well as those secured by closed-end first and junior liens.
Previous wording
Consumer and other. Consumer and other loans include loans to individuals for personal and household purposes, including secured and unsecured installment loans and revolving lines of credit. Consumer and other loans at December 31, 2024 increased $26.3 million or 41.7% to $89.2 million from $63.0 million at December 31, 2023. This increase was primarily attributable to increases in the Company's marine and RV lending division as well as an increase in Upstart loans, consumer loans to individuals with no or limited credit history.
Current wording
Consumer and other. Consumer and other loans include loans to individuals for personal and household purposes, including secured and unsecured installment loans and revolving lines of credit. Consumer and other loans at December 31, 2025 increased $61.7 million or 69.2% to $150.9 million from $89.2 million at December 31, 2024. This increase was primarily attributable to the acquisition of TC Bancshares, Inc. as well as increases in the Company's marine and RV lending division and increases in Upstart loans, consumer loans to individuals with no or limited credit history.
Previous wording
Collateral concentrations. Concentrations of credit risk can exist in relation to individual borrowers or groups of borrowers, certain types of collateral, certain types of industries, or certain geographic regions. The Company has a concentration in real estate loans as well as a geographic concentration that could pose an adverse credit risk. At December 31, 2024, approximately 83.6% of the Company’s loan portfolio was concentrated in loans secured by real estate. A substantial portion of borrowers’ ability to honor their contractual obligations is dependent upon the viability of the real estate economic sector. In addition, a large portion of the Company’s foreclosed assets are also located in these same geographic markets, making the recovery of the carrying amount of foreclosed assets susceptible to changes in market conditions. Management continues to monitor these concentrations and has considered these concentrations in its allowance for credit loss analysis. In recent years, we have seen real estate values stabilizing in our markets. The stabilization of rates has resulted in a decrease in the number of loans being classified as impaired over the past several years.
Current wording
Collateral concentrations. Concentrations of credit risk can exist in relation to individual borrowers or groups of borrowers, certain types of collateral, certain types of industries, or certain geographic regions. The Company has a concentration in real estate loans as well as a geographic concentration that could pose an adverse credit risk. At December 31, 2025, approximately 84.5% of the Company’s loan portfolio was concentrated in loans secured by real estate. A substantial portion of borrowers’ ability to honor their contractual obligations is dependent upon the viability of the real estate economic sector. In addition, a large portion of the Company’s foreclosed assets are also located in these same geographic markets, making the recovery of the carrying amount of foreclosed assets susceptible to changes in market conditions. Management continues to monitor these concentrations and has considered these concentrations in its allowance for credit loss analysis. In recent years, we have seen real estate values stabilizing in our markets.
Previous wording
Large credit relationships. The Company currently operates 34 locations in north, central, south and coastal Georgia andalso expanded its presence in 2023 into Birmingham, Alabama as well as Tallahassee and the Florida panhandle. As a result, the Company originates and maintains large credit relationships with several commercial customers in the ordinary course of business. The required approval of loans (new or renewal) is based on the total credit exposure of a borrower, the type of loan, combined with whether or not there are any material policy exceptions on the loan. For non-owner occupied commercial real estate loans, the DLC approves loans $18 million or greater with material exceptions and loans $26 million or greater without exceptions. For other loans that are not commercial real estate, the DLC approves loans $21 million or greater with material exceptions and loans $30 million or greater with no exceptions. At December 31, 2024, our largest 20 relationships consisted of loans and loan commitments, where the total committed balance was $304.5 million with $286.1 million outstanding. At December 31, 2023, our largest 20 relationships had total committed balance of $354.1 million with $266.7 million outstanding.
Current wording
Large credit relationships. The Company currently operates locations in north, central, south and coastal Georgia as well as Birmingham, Alabama and Jacksonville, Santa Rosa Beach and Tallahassee, Florida. As a result, the Company originates and maintains large credit relationships with several commercial customers in the ordinary course of business. The required approval of loans (new or renewal) is based on the total credit exposure of a borrower, the type of loan, combined with whether or not there are any material policy exceptions on the loan. For non-owner occupied commercial real estate loans, the DLC approves loans $18 million or greater with material exceptions and loans $26 million or greater without exceptions. For other loans that are not commercial real estate, the DLC approves loans $21 million or greater with material exceptions and loans $30 million or greater with no exceptions. At December 31, 2025, our largest 20 relationships consisted of loans and loan commitments, where the total committed balance was $359.9 million with $312.0 million outstanding. At December 31, 2024, our largest 20 relationships had total committed balance of $304.5 million with $286.1 million outstanding.
Previous wording
Asset quality experienced a slight decrease during the year ended December 31, 2024. Nonperforming assets include nonaccrual loans, accruing loans contractually past due 90 days or more, repossessed personal property and other real estate owned ("OREO"). Nonaccrual loans totaled $10.7 million at December 31, 2024, an increase of$821,000, or 8.3%, from $9.8 million at December 31, 2023. There were six loans contractually past due 90 days or more and still accruing totaling $152,000 at December 31, 2024 and two loans totaling $370,000 at December 31, 2023. At December 31, 2024, OREO totaled $202,000, a decrease of $246,000, or 54.9%, compared with $448,000 at December 31, 2023. The change in OREO is primarily the result of five properties added to other real estate totaling $1.2 million offset by $1.4 million from the sale of six OREO properties. At the end of the year ended December 31, 2024, total nonperforming assets as a percentage of total assets increased to 0.36% compared with 0.35% at December 31, 2023. The increase in nonperforming assets was primarily the result of increases in commercial, financial & agricultural loans as well as SBSL government guaranteed loans in various call codes, partially offset by repayments, payoffs and charged off loans.
Current wording
Asset quality experienced a slight decrease during the year ended December 31, 2025. Nonperforming assets include nonaccrual loans, accruing loans contractually past due 90 days or more, repossessed personal property and other real estate owned ("OREO"). Nonaccrual loans totaled $23.4 million at December 31, 2025, an increase of$12.7 million, or 119.3%, from $10.7 million at December 31, 2024. There were eight loans contractually past due 90 days or more and still accruing totaling $95,000 at December 31, 2025 and six loans totaling $152,000 at December 31, 2024. At December 31, 2025, OREO totaled $1.0 million, an increase of $846,000, or 418.8%, compared with $202,000 at December 31, 2024. The change in OREO is primarily the result of four properties added to other real estate totaling $1.15 million offset by $310,000 from the sale of two OREO properties. At the end of the year ended December 31, 2025, total nonperforming assets as a percentage of total assets increased to 0.66% compared with 0.36% at December 31, 2024. The increase in nonperforming assets was primarily the result of increases in construction, land & land development, commercial real estate and residential real estate loans as well as the addition of $5.7 million of loans acquired in the acquisition of TC Bancshares, Inc., partially offset by repayments, payoffs and charged off loans.
Previous wording
Nonperforming assets include nonaccrual loans, loans past due 90 days or more, foreclosed real estate, repossessed assets and nonaccrual securities. Nonperforming assets at December 31, 2024 increased 6.4% from December 31, 2023, as a result of the increase in nonaccrual loans and repossessed assets, offset by decreases in loans accruing past due 90 days or more and other real estate owned property.
Current wording
Nonperforming assets include nonaccrual loans, loans past due 90 days or more, foreclosed real estate and repossessed assets. Nonperforming assets at December 31, 2025 increased 117.9% from December 31, 2024, as a result of the increase in nonaccrual loans and other real estate, offset by decreases in loans accruing past due 90 days or more and repossessed assets.
Previous wording
The Company had nine loans modified due to financial difficulty during the year ended December 31, 2024. See Note 3. Loans, for additional details on loan modifications.
Current wording
The Company had five loans modified due to financial difficulty during the year ended December 31, 2025. See Note 4. Loans, for additional details on loan modifications.
Previous wording
The allowance for credit losses on loans increased from $18.4 million or 0.98% of total loans at December 31, 2023 to $19.0 million, or 1.03% of total loans at December 31, 2024. The provision for credit losses on loans reflects loan quality trends, including the level of net charge-offs or recoveries, among other factors. The primary reason for the increase year over year was due to the increase in charge-offs. These charge-offs represent a small number of loans and circumstances, and management has no concern that there are systemic issues across the portfolio.
Current wording
The allowance for credit losses on loans increased from $19.0 million or 1.03% of total loans at December 31, 2024 to $23.0 million, or 0.97% of total loans at December 31, 2025. The provision for credit losses on loans reflects loan quality trends, including the level of net charge-offs or recoveries, among other factors. Although net charge-offs were slightly higher which impacted the provision for credit losses, the primary reason for the year over year increase was due to the adoption of ASU 2025-08 which resulted in an addition of $4.6 million to the allowance in 2025.
Previous wording
The average yield of the securities portfolio was 2.61% in 2024 and 2.72% in 2023. The decrease in the average yield from 2023 to 2024 was primarily attributed to the decrease in average balances of investment securities related to paydowns and the sales of investments securities during 2024.
Current wording
The average yield of the securities portfolio was 2.60% in 2025 and 2.61% in 2024. The slight decrease in the average yield from 2024 to 2025 was primarily attributed to the decrease in average balances of investment securities related to paydowns and the sales of investments securities during both periods.
Previous wording
Average deposits decreased $1.3 million in 2024 compared to 2023. The decrease in 2024 included decreases of $16.0 million, or 2.6% in time deposits and $59.4 million, or 11.4% in noninterest-bearing deposits, which were partially offset by an increase in interest-bearing demand and savings deposits of $74.1 million, or 5.3%. The increase in our overall deposits is due primarily to the Company's ability to attract interest-bearing demand and savings deposits despite the challenging interest rate environment.
Current wording
Average deposits increased $91.1 million in 2025 compared to 2024. The increase in 2025 included increases of $41.0 million, or 6.8% in time deposits and an increase in interest-bearing demand and savings deposits of $65.1 million, or 4.4%, partially offset by a decrease of $15.0 million, or 3.3% in noninterest-bearing deposits. The increase in our overall deposits is due primarily to the acquisition of TC Bancshares, Inc The Company continues to focus on the importance of customer relationships and our ability to attract noninterest-bearing demand and interest-bearing demand and savings deposits despite the challenging interest rate environment.
Previous wording
As of December 31, 2023 and 2022,$857.6 million and $777.8 million, respectively, of our deposit portfolio was uninsured. The uninsured amounts are estimated based on the methodologies and assumptions used for the Bank's regulatory reporting requirements.
Current wording
As of December 31, 2025 and 2024,$980.0 million and $857.6 million, respectively, of our deposit portfolio was uninsured. The uninsured amounts are estimated based on the methodologies and assumptions used for the Bank's regulatory reporting requirements. The adjusted uninsured deposit estimate (which excludes deposits collateralized by public funds and internal accounts) was$576.5 million as of December 31, 2025 compared to $457.3 million as of December 31, 2024, Adjusted uninsured deposits represents a small percentage of our overall deposits, which increases the stability of our deposit base and lowers our overall funding risk.
Previous wording
The Company supplements deposit sources with brokered deposits. As of December 31, 2024, the Company had $59.5 million, or 2.32% of total deposits, in brokered certificates of deposit attracted by external third parties. Additional information is provided in the Notes to Consolidated Financial Statements for Deposits.
Current wording
The Company supplements deposit sources with brokered deposits. As of December 31, 2025, the Company had $131.9 million, or 4.30% of total deposits, in brokered certificates of deposit attracted by external third parties. Additional information is provided in the Notes to Consolidated Financial Statements for Deposits.
Previous wording
At December 31, 2024, shareholders’ equity totaled $278.7 million compared to $254.9 million at December 31, 2023. In addition to net income of $23.9 million, another significant change in shareholders’ equity during 2024 included $7.9 million of dividends declared on common stock. The accumulated other comprehensive loss component of stockholders’ equity totaled $47.6 million at December 31, 2024 compared to $55.6 million at December 31, 2023. This fluctuation was mostly related to the after-tax effect of changes in the fair value of securities available-for-sale. Under regulatory requirements, the unrealized gain or loss on securities available for sale does not increase or reduce regulatory capital and is not included in the calculation of risk-based capital and leverage ratios. Regulatory agencies for banks and bank holding companies utilize capital guidelines designed to measure Tier 1 and total capital and take into consideration the risk inherent in both on-balance sheet and off-balance sheet items.
Current wording
At December 31, 2025, shareholders’ equity totaled $375.9 million compared to $278.7 million at December 31, 2024. The primary driver of the increase was the issuance of common stock of $65.9 million as a result of the acquisition of TC Bancshares, Inc. in December 2025. In addition to net income of $28.3 million, another significant change in shareholders’ equity during 2025 included $8.0 million of dividends declared on common stock. The accumulated other comprehensive loss component of stockholders’ equity totaled $34.5 million at December 31, 2025 compared to $47.6 million at December 31, 2024. This fluctuation was mostly related to the after-tax effect of changes in the fair value of securities available-for-sale. Under regulatory requirements, the unrealized gain or loss on securities available for sale does not increase or reduce regulatory capital and is not included in the calculation of risk-based capital and leverage ratios. Regulatory agencies for banks and bank holding companies utilize capital guidelines designed to measure Tier 1 and total capital and take into consideration the risk inherent in both on-balance sheet and off-balance sheet items.
Previous wording
Using the capital requirements presently in effect, the Tier 1 ratio as of December 31, 2024 was 14.26% and total Tier 1 and 2 risk-based capital was 17.10%. Both of these measures compare favorably with the regulatory minimum of 6.0% for Tier 1 and 8% for total risk-based capital. The Company’s common equity Tier 1 ratio as of December 31, 2024 was 13.08%, which exceeds the regulatory minimum of 4.50%. The Company’s Tier 1 leverage ratio as of December 31, 2024 was 9.50%, which exceeds the required ratio standard of 4.0%.
Current wording
Using the capital requirements presently in effect, the Tier 1 ratio as of December 31, 2025 was 13.60% and total Tier 1 and 2 risk-based capital was 15.95%. Both of these measures compare favorably with the regulatory minimum of 6.0% for Tier 1 and 8% for total risk-based capital. The Company’s common equity Tier 1 ratio as of December 31, 2025 was 12.67%, which exceeds the regulatory minimum of 4.50%. The Company’s Tier 1 leverage ratio as of December 31, 2025 was 10.78%, which exceeds the required ratio standard of 4.0%.
Previous wording
For the year ended December 31, 2024, average capital was $265.3 million representing 8.7% of average assets for the year. This compares to average capital of $238.9 million, representing 7.9% of average assets for 2023.
Current wording
For the year ended December 31, 2025, average capital was $297.6 million representing 9.3% of average assets for the year. This compares to average capital of $265.3 million, representing 8.7% of average assets for 2024.
Previous wording
The Company granted 74,358 and 55,210 restricted shares of common stock for the years ended December 31, 2024 and 2023, respectively. All restricted shares vest over a three year period.
Current wording
The Company granted 63,426 and 74,358 restricted shares of common stock for the years ended December 31, 2025 and 2024, respectively. All restricted shares vest over a three year period.
Previous wording
A cash dividend of $7.9 million and $7.7 million was paid for the year ended December 31, 2024 and 2023, respectively.
Current wording
A cash dividend of $8.0 million and $7.9 million was paid for the years ended December 31, 2025 and 2024, respectively.
Previous wording
Cash and cash equivalents at December 31, 2024 and 2023 were $231.0 million and $83.3 million, respectively. The increase in cash and cash equivalents was partially due to sales and paydowns of investment securities, paydowns and maturities of loans, as well as increases in deposits and other borrowings. Management believes the various funding sources discussed above are adequate to meet the Company’s liquidity needs in these unsettled times without any material adverse impact on our operating results.
Current wording
Cash and cash equivalents at December 31, 2025 and 2024 were $257.6 million and $231.0 million, respectively. The increase in cash and cash equivalents was partially due to sales and paydowns of investment securities, paydowns and maturities of loans, as well as increases in deposits and other borrowings. Management believes the various funding sources discussed above are adequate to meet the Company’s liquidity needs in these unsettled times without any material adverse impact on our operating results.
Previous wording
The investment portfolio provides a ready means to raise cash if liquidity needs arise. As of December 31, 2024, the available-for-sale bond portfolio totaled $366.0 million. At December 31, 2023, the available-for-sale bond portfolio totaled $407.4 million. This decrease is primarily attributable to sales along with maturities, calls and paydowns on the portfolio during 2024. Only marketable investment grade bonds are purchased. Although approximately 56.7% of the Bank’s bond portfolio is encumbered as pledges to secure various public funds deposits, repurchase agreements, and for other purposes, management can restructure and free up investment securities for sale if required to meet liquidity needs.
Current wording
The investment portfolio provides a ready means to raise cash if liquidity needs arise. As of December 31, 2025, the available-for-sale bond portfolio totaled $383.8 million. At December 31, 2024, the available-for-sale bond portfolio totaled $366.0 million. This increase is primarily attributable to available-for-sale investment securities acquired in the acquisition of TC Bancshares, Inc. in December 2025. Only marketable investment grade bonds are purchased. Although approximately 51.5% of the Bank’s bond portfolio is encumbered as pledges to secure various public funds deposits, repurchase agreements, and for other purposes, management can restructure and free up investment securities for sale if required to meet liquidity needs.
Showing the first 40 of 46 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
At December 31, 2025 and 2024, nonperforming assets were $24.7 million and $11.3 million, or 0.66% and 0.36% of total assets, respectively, with credit quality in the overall loan portfolio remaining strong.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Assumptions for repricing are expressed as a beta relative to the change in the prime rate. For instance, a 25% beta would correspond to a deposit rate that would increase 0.25% for every 1% increase in the prime rate. Projected betas for interest bearing non-maturity deposit repricing are a key component of determining the Company's interest rate risk position. Should realized betas be higher than projected betas, the expected benefit from higher interest rates would be reduced.