When did Colony Bankcorp Inc file this 10-Q?

Colony Bankcorp Inc (CBAN) filed this Quarterly Report (Form 10-Q) with the SEC on May 8, 2026. The accession number assigned by EDGAR is 0001104659-26-057671.

What does a 10-Q disclose?

Form 10-Q is the SEC's quarterly report. Public companies file it after each of the first three fiscal quarters to disclose unaudited financial statements and management's discussion of operations. The fourth-quarter results are rolled into the annual 10-K instead.

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Where can I find Colony Bankcorp Inc's prior quarterly reports on EDGAR?

The SEC EDGAR browser lists every 10-Q Colony Bankcorp Inc has filed under CIK 711669, sortable by date. Use the "View on SEC EDGAR" link in the page header, or browse directly via https://www.sec.gov/cgi-bin/browse-edgar.

Colony Bankcorp Inc (CBAN) 10-Q filed May 8, 2026

COLONY BANKCORP, INC._March 31, 2026

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2026

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____ to _____

Commission File Number: 001-42397

COLONY BANKCORP, INC.

(Exact Name of Registrant as Specified in Its Charter)


Georgia	58-1492391
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)

115 South Grant Street, Fitzgerald, Georgia 31750

(Address of principal executive offices) (Zip Code)

(229) 426-6000

(Registrant’s Telephone Number, Including Area Code)

Securities Registered Pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, Par Value $1.00 per share	CBAN	The New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934 during the 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerate Filer ☐ Accelerated Filer ☒ Non-accelerated Filer ☐

Smaller Reporting Company ☐ Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with the new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: As of May 6, 2026, the registrant had 21,159,669 shares of common stock, $1.00 par value per share, issued and outstanding.

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TABLE OF CONTENTS


		Page
PART I – Financial Information

Item 1.	Financial Statements

	Consolidated Balance Sheets – March 31, 2026 (unaudited) and December 31, 2025 (audited)	3

	Consolidated Statements of Income – For the Three Months Ended March 31, 2026 and 2025 (unaudited)	4

	Consolidated Statements of Comprehensive Income – For the Three Months Ended March 31, 2026 and 2025 (unaudited)	5

	Consolidated Statements of Changes in Stockholder’s Equity – For the Three Months Ended March 31, 2026 and 2025 (unaudited)	6

	Consolidated Statements of Cash Flows – For the Three Months Ended March 31, 2026 and 2025 (unaudited)	7

	Notes to Consolidated Financial Statements (unaudited)	9

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	38

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	58

Item 4.	Controls and Procedures	58

PART II – Other Information

Item 1.	Legal Proceedings	59

Item 1A.	Risk Factors	59

Item 2.	Unregistered Sale of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	59

Item 3.	Defaults Upon Senior Securities	60

Item 4.	Mine Safety Disclosures	60

Item 5.	Other Information	60

Item 6.	Exhibits	61

Signatures		62

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PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

COLONY BANKCORP, INC. AND SUBSIDIARIES

Consolidated Balance Sheets


		March 31, 2026			December 31, 2025
(dollars in thousands, except per share data)		(Unaudited)			(Audited)
ASSETS
Cash and due from banks		$	24,349		$	27,307
Interest-bearing deposits in banks and federal funds sold			271,457			230,333
Cash and cash equivalents			295,806			257,640
Investment securities available-for-sale, at fair value (amortized cost $404,817 and $412,395 respectively)			375,340			383,817
Investment securities held-to-maturity, at amortized cost (fair value $337,978 and $354,290, respectively)			371,918			386,618
Other investments			19,286			19,176
Loans held for sale			16,536			78,990
Loans, net of unearned income			2,413,465			2,381,224
Allowance for credit losses			(21,705)			(23,014)
Loans, net			2,391,760			2,358,210
Premises and equipment			36,842			37,045
Other real estate owned			1,873			1,048
Goodwill			63,047			63,873
Other intangible assets			7,396			7,851
Bank-owned life insurance			68,936			68,457
Deferred income taxes, net			18,804			19,582
Other assets			53,069			53,094
Total assets		$	3,720,613		$	3,735,401

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Deposits
Noninterest-bearing		$	495,234		$	526,803
Interest-bearing			2,553,185			2,540,718
Total deposits			3,048,419			3,067,521
Federal Home Loan Bank advances			194,981			194,972
Other borrowings			63,156			63,132
Other liabilities			33,654			33,856
Total liabilities			3,340,210			3,359,481

Stockholders’ equity:
Preferred stock, no par value; 10,000,000 shares authorized, none issued or outstanding as of March 31, 2026 and December 31, 2025, respectively			—			—
Common stock, par value $1.00 per share; 50,000,000 shares authorized, 21,162,104 and 21,251,695 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively			21,162			21,252
Paid-in capital			227,071			228,577
Retained earnings			166,237			160,584
Accumulated other comprehensive loss, net of tax			(34,067)			(34,493)
Total stockholders’ equity			380,403			375,920
Total liabilities and stockholders’ equity		$	3,720,613		$	3,735,401

See accompanying notes to consolidated financial statements (unaudited).

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COLONY BANKCORP, INC. AND SUBSIDIARIES

Consolidated Statements of Income (unaudited)


		Three Months Ended
(dollars in thousands, except per share data)		March 31, 2026			March 31, 2025
Interest income
Loans, including fees		$	37,974		$	27,976
Investment securities			4,923			5,227
Deposits with other banks and short term investments			1,993			2,322
Total interest income			44,890			35,525

Interest expense
Deposits			12,814			11,773
Federal Home Loan Bank advances			1,985			1,873
Other borrowings			888			927
Total interest expense			15,687			14,573

Net interest income			29,203			20,952
Provision for credit losses			1,750			1,500
Net interest income after provision for credit losses			27,453			19,452

Noninterest income
Service charges on deposits			2,561			2,172
Mortgage fee income			1,935			1,579
Gain on sales of SBA loans			962			1,035
Other SBA income			714			656
Interchange fees			2,186			1,938
BOLI income			477			396
Insurance commissions			844			469
Other			1,013			799
Total noninterest income			10,692			9,044

Noninterest expense
Salaries and employee benefits			15,923			11,905
Occupancy and equipment			1,957			1,580
Acquisition related expenses			1,637			—
Information technology expense			2,774			2,477
Professional fees			1,120			748
Advertising and public relations			1,106			805
Communications			224			205
Other			2,933			2,501
Total noninterest expense			27,674			20,221
Income before income taxes			10,471			8,275
Income taxes			2,267			1,662
Net income		$	8,204		$	6,613
Earnings per common share:
Basic		$	0.39		$	0.38
Diluted			0.39			0.38
Dividends declared per share			0.1200			0.1150
Weighted average common shares outstanding:
Basic			21,222,237			17,509,059
Diluted			21,222,237			17,509,059

See accompanying notes to consolidated financial statements (unaudited).

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COLONY BANKCORP, INC. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income (unaudited)


		Three Months Ended
(dollars in thousands)		March 31, 2026			March 31, 2025
Net income		$	8,204		$	6,613
Other comprehensive income:
Net unrealized gains (losses) on securities arising during the period			(618)			4,887
Tax effect			157			(1,245)
Reclassification adjustment for amortization of unrealized holding losses from the transfer of securities from available-for-sale to held-to-maturity			953			1,143
Tax effect			(243)			(291)
Unrealized gains (losses) on derivative instruments designated as cash flow hedges			278			(360)
Tax effect			(70)			92
Realized gains on derivative instruments recognized in net income			(41)			(79)
Tax effect			10			20
Total other comprehensive income			426			4,167
Comprehensive income		$	8,630		$	10,780

See accompanying notes to consolidated financial statements (unaudited).

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COLONY BANKCORP, INC. AND SUBSIDIARIES

Consolidated Statements of Changes in Stockholders’ Equity (unaudited)


													Accumulated
													Other
(dollars in thousands, except per share data)		Common Stock					Paid-In			Retained			Comprehensive
Three Months Ended		Shares		Amount			Capital			Earnings			Income (Loss)			Total
Balance, December 31, 2025		21,251,695		$	21,252		$	228,577		$	160,584		$	(34,493)		$	375,920
Other comprehensive income		—			—			—			—			426			426
Dividends on common shares ($0.1200 per share)		—			—			—			(2,551)			—			(2,551)
Issuance of restricted stock, net of forfeitures		789			1			(1)			—			—			—
Tax withholding related to vesting of restricted stock		(1,271)			(2)			(21)			—			—			(23)
Repurchase and retirement of shares		(89,109)			(89)			(1,677)			—			—			(1,766)
Stock-based compensation expense, net		—			—			193			—			—			193
Net income		—			—			—			8,204			—			8,204
Balance, March 31, 2026		21,162,104		$	21,162		$	227,071		$	166,237		$	(34,067)		$	380,403

Balance, December 31, 2024		17,519,884		$	17,520		$	168,353		$	140,369		$	(47,567)		$	278,675
Other comprehensive income		—			—			—			—			4,167			4,167
Dividends on common shares ($0.1150 per share)		—			—			—			(2,015)			—			(2,015)
Issuance of restricted stock, net of forfeitures		4,880			5			(5)			—			—			—
Tax withholding related to vesting of restricted stock		(4,748)			(5)			(72)			—			—			(77)
Repurchase and retirement of shares		(38,307)			(38)			(592)			—			—			(630)
Stock-based compensation expense, net		—			—			192			—			—			192
Net income		—			—			—			6,613			—			6,613
Balance, March 31, 2025		17,481,709		$	17,482		$	167,876		$	144,967		$	(43,400)		$	286,925

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COLONY BANKCORP, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows (unaudited)


		Three Months Ended
(dollars in thousands)		March 31, 2026			March 31, 2025
Operating Activities
Net income		$	8,204		$	6,613
Adjustments reconciling net income to net cash provided by operating activities:
Provision for credit losses			1,750			1,500
Depreciation, amortization, and accretion			3,188			1,778
Equity method investment loss			(36)			(90)
Stock-based compensation expense			193			192
Net change in servicing asset			3			38
Gain on sales of SBA loans			(962)			(1,035)
Gain on sales of other real estate owned and repossessions			(6)			—
Gain on sales of premises & equipment			(10)			—
Originations of loans held for sale			(30,143)			(51,987)
Proceeds from sales of loans held for sale			71,885			67,964
Change in bank-owned life insurance			(479)			(412)
Deferred tax expense			359			62
Change in other assets			11			(5,780)
Change in other liabilities			296			(898)
Net cash provided by operating activities			54,253			17,945
Investing Activities
Purchases of investment securities, available-for-sale			(4,825)			(22,372)
Proceeds from maturities, calls, and paydowns of investment securities, available-for-sale			12,192			12,798
Proceeds from maturities, calls and paydowns of securities, held-to-maturity			15,089			8,744
Change in loans, net			(15,360)			(79,229)
Purchase of premises and equipment			(421)			(346)
Proceeds from sales of premises and equipment			27			—
Proceeds from insurance related to fire at bank branch			—			803
Proceeds from sales of other real estate owned and repossessions			727			—
Purchase of Federal Home Loan Bank Stock			(74)			(38)
Net cash provided by (used in) investing activities			7,355			(79,640)
Financing Activities
Change in noninterest-bearing customer deposits			(31,569)			(12,465)
Change in interest-bearing customer deposits			12,467			67,053
Dividends paid for common stock			(2,551)			(2,015)
Repayments on Federal Home Loan Bank advances			(50,000)			(50,000)
Proceeds from Federal Home Loan Bank advances			50,000			50,000
Repurchase and retirement of shares			(1,766)			(630)
Tax withholding related to vesting of restricted stock			(23)			(77)
Net cash provided by (used in) financing activities			(23,442)			51,866
Net increase (decrease) in cash and cash equivalents			38,166			(9,829)
Cash and cash equivalents at beginning of period			257,640			231,034
Cash and cash equivalents at end of period		$	295,806		$	221,205

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COLONY BANKCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOW (unaudited)


		Three Months Ended
(dollars in thousands)		March 31, 2026			March 31, 2025
Supplemental Disclosure of Cash Flow Information
Cash paid during the period for interest		$	14,931		$	14,020
Cash paid during the period for income taxes			19			7
Noncash Investing and Financing Activities
Transfers to other real estate			1,506			320
Adjustments to goodwill			(826)			—

See accompanying notes to consolidated financial statements (unaudited).

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COLONY BANKCORP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

(1) Summary of Significant Accounting Policies

Presentation

Colony Bankcorp, Inc. (the “Company” or “Colony”) is a bank holding company located in Fitzgerald, Georgia. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Colony Bank, Fitzgerald, Georgia (the “Bank”). The “Company” or “our,” as used herein, includes Colony Bank, except where the context requires otherwise.

All adjustments consisting of normal recurring accruals which are, in the opinion of management, necessary for fair presentation of the interim consolidated financial statements, have been included and fairly and accurately present the financial position, results of operations and cash flows of the Company. All significant intercompany accounts have been eliminated in consolidation.

The accounting and reporting policies of the Company conform to U.S. generally accepted accounting principles (“GAAP”) utilized in the commercial banking industry for interim financial information and Regulation S-X. Accordingly, the accompanying unaudited interim consolidated financial statements do not include all of the information or notes required for complete financial statements.

The results of operations for the three months ended March 31, 2026 are not necessarily indicative of the results which may be expected for the year ending December 31, 2026. These statements should be read in conjunction with the consolidated financial statements and notes thereto in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 (“2025 Form 10-K”).

Nature of Operations

Colony Bank provides a full range of banking solutions for personal and business customers. In addition to traditional banking services, the Bank provides specialized solutions including mortgage lending, government guaranteed lending, consumer insurance, wealth management, credit cards and merchant services. The Bank conducts its business through full-service banking centers and loan production offices located throughout Georgia, Alabama and Florida. The Bank is headquartered in Fitzgerald, Georgia with locations in the Georgia cities of Albany, Ashburn, Athens, Atlanta, Augusta, Broxton, Cedartown, Centerville, Chickamauga, Columbus, Cordele, Covington, Douglas, Eastman, Fayetteville, Fitzgerald, Greensboro, LaGrange, Leesburg, Macon, Manchester, Monroe, Moultrie, Quitman, Rochelle, Rockmart, Savannah, Statesboro, Sylvester, Thomaston, Thomasville, Tifton, Valdosta and Warner Robins. The Bank also operates locations in Birmingham, Alabama, and Jacksonville, Santa Rosa Beach and Tallahassee, Florida.

Use of Estimates

In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the balance sheet date and revenues and expenses for the period. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for credit losses, the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans and fair value of assets acquired and liabilities assumed in a business combination, including goodwill impairment.

Reclassifications

In certain instances, amounts reported in prior years’ consolidated financial statements have been reclassified to conform to statement presentations selected for 2026. Such reclassifications have not materially affected previously reported stockholders’ equity or net income.

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COLONY BANKCORP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

Concentrations of Credit Risk

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 March 31, 2026, approximately 84% 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. Management continues to monitor these concentrations and has considered these concentrations in its allowance for credit loss analysis.

The success of the Company is dependent, to a certain extent, upon the economic conditions in the geographic markets it serves. Adverse changes in the economic conditions in these geographic markets would likely have a material adverse effect on the Company’s results of operations and financial condition. The operating results of the Company depend primarily on its net interest income. Accordingly, operations are subject to risks and uncertainties surrounding the exposure to changes in the interest rate environment.

At times, the Company may have cash and cash equivalents at financial institutions in excess of federal deposit insurance limits. The Company places its cash and cash equivalents with high credit quality financial institutions whose credit ratings are monitored by management to minimize credit risk.

Allowance for Credit Losses (“ACL”) – Loans

The current expected credit loss (“CECL”) approach requires an estimate of the credit losses expected over the life of an exposure (or pool of exposures). It replaced the incurred loss approach’s threshold that delayed the recognition of a credit loss until it was probable a loss event was incurred. The estimate of expected credit losses is based on relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amounts. Historical loss experience is generally the starting point for estimating expected credit losses. The Company then considers whether the historical loss experience should be adjusted for asset-specific risk characteristics or current conditions at the reporting date that did not exist over the historical period used. The Company also considers future economic conditions and portfolio performance as part of a reasonable and supportable forecast period.

The ACL is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the ACL when management believes the uncollectibility of a loan balance is confirmed. Accrued interest receivable is excluded from the estimate of credit losses.

Management determines the ACL balance using relevant available information from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit behaviors along with model judgments provide the basis for the estimation of expected credit losses. Adjustments to modeled loss estimates may be made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level, or term as well as for changes in environmental conditions, such as changes in economic conditions, property values, or other relevant factors. The Company estimates the quantitative collective ACL utilizing a discounted cash flow (DCF) methodology applied to our loan pools segregated by similar risk characteristics. The Company’s DCF methodology generates cash flow projections at the loan level wherein payment expectations are adjusted for estimated prepayment speeds, curtailments, time to recovery, probability of default (PD), and loss given default (LGD). The modeling of expected prepayment speeds and curtailment rates are based on historical internal data and consider current conditions and reasonable and supportable forecasts of future economic conditions. The Company uses regression analysis of historical internal and peer loss data to determine suitable macroeconomic variables to utilize when modeling lifetime PD and LGD. This analysis also determines how expected PD and LGD will react to forecasted levels of the macroeconomic variables over a reasonable and supportable forecast period. At the end of the four-quarter reasonable and supportable forecast period, the Company reverts to a historical loss rate on a straight-

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COLONY BANKCORP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

line basis over eight quarters. For loans that have elevated risk characteristics when compared to the collectively pooled loans, they are evaluated on an individual basis.

The qualitative component is comprised of measurements used to quantify the risks within each of these loans classes and are subjectively selected by management but measured by objective measurements period over period. The data for each measurement is obtained from internal and external sources. These adjustments are based upon quarterly trend assessments in certain economic factors as well as loan segment specific risks that cannot be addressed in the quantitative methods.

The Company has identified the following portfolio segments and calculates the ACL for each using a discounted cash flow methodology at the loan level, with loss rates, prepayment assumptions and curtailment assumptions driven by each loan’s collateral type:

●

Construction, land & land development - Risks common to construction, land & development loans are cost overruns, changes in market demand for property, inadequate long-term financing arrangements and declines in real estate values.

●

Other commercial real estate - Loans in this category are susceptible to business failures and declines in general economic conditions, including declines in real estate value, declines in occupancy rates, and lack of suitable alternative use for the property.

●

Residential real estate - Residential real estate loans are susceptible to weakening general economic conditions, increases in unemployment rates and declining real estate values.

●

Commercial, financial & agricultural - Risks to this loan category include the inability to monitor the condition of the collateral, which often consists of inventory, accounts receivable and other non-real estate assets. Equipment and inventory obsolescence can also pose a risk. Declines in general economic conditions and other events can cause cash flows to fall to levels insufficient to service debt.

●

Consumer and other - Risks common to consumer direct loans include unemployment and changes in local economic conditions as well as the inability to monitor collateral consisting of personal property.

When management determines that foreclosure is probable or when the borrower is experiencing financial difficulty at the reporting date and repayment is expected to be provided substantially through the operation or sale of the collateral, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate.

Allowance for Credit Losses – Off-Balance Sheet Credit Exposures

Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and standby letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded.

Management estimates expected credit losses on commitments to extend credit over the contractual period during which the Company is exposed to credit risk on the underlying commitments. The ACL on off-balance sheet credit exposures is adjusted as a provision for credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. The ACL is calculated using the same aggregate reserve rates calculated for the funded portion of loans at the portfolio level applied to the amount of commitments expected to fund.

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COLONY BANKCORP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

Allowance for Credit Losses – Held-to-Maturity (“HTM”) Securities

Management measures current expected credit losses on HTM debt securities on a collective basis by major security type. The estimate of current expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. Management classifies the HTM portfolio into the following major security types: U.S. treasury securities, U.S. agency securities, State, county & municipal securities, and Mortgage-backed securities. Accrued interest receivable on HTM debt is excluded from the estimate of credit losses.

All of the residential and commercial mortgage-backed securities held by the Company as HTM are issued by U.S. government agencies and government sponsored entities. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies and have a long history of no credit losses. The state and political subdivision securities are also highly rated by major rating agencies.

Allowance for Credit Losses – Available-for-Sale (“AFS”) Securities

For AFS debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or whether it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For AFS debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an ACL is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any amount of unrealized loss that has not been recorded through an ACL is recognized in other comprehensive income. Accrued interest receivable on AFS debt securities is excluded from the estimate of credit losses.

Changes in the ACL are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the ACL when management believes the uncollectibility of an AFS security is confirmed or when either of the criteria regarding intent or requirement to sell is met.

Derivatives

At the inception of a derivative contract, the Company designates the derivative as one of three types based on the Company’s intentions and belief as to likely effectiveness as a hedge. These three types are (1) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability (“cash flow hedge”), (2) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment (“fair value hedge”), or (3) an instrument with no hedging designation (“non-designated derivative”). For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. For a fair value hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item attributable to the hedged risk, are recognized in current earnings as fair values change. Changes in the fair value of derivatives not designated are reported currently in earnings, as noninterest income.

Net cash settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in noninterest income or noninterest expense. Cash flows from hedges are classified in the consolidated statements of cash flows in the same manner as the items being hedged.

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COLONY BANKCORP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

The Company formally documents the relationship between derivatives and hedged items, as well as the risk management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking cash flow hedges to specific assets and liabilities on the balance sheet or to specific firm commitments or forecasted transactions. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative instruments that are used are highly effective in offsetting changes in cash flows of the hedged item. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in cash flows of the hedged item, the derivative is settled or terminated, a hedged forecasted transaction is no longer probable, a hedged firm commitment is no longer firm or treatment of the derivative as a hedge is no longer appropriate or intended.

When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as interest expense. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income (“OCI”) are amortized into earnings over the same periods which the hedged transactions will affect earnings.

Changes in Accounting Principles

In November 2024, the FASB issued ASU No. 2024-03, Income Statement (Topic 220): Disaggregation of Income Statement Expenses ("ASU 2024-03"). This ASU was issued to improve the disclosures over expenses and address requests from investors for more detailed information about the types of expenses in commonly presented expense captions. The ASU addresses investors' requests for more disaggregated expense information to better understand an entity's performance, better assess the entity's prospects for future cash flows, and compare an entity's performance over time and with that of other entities. This ASU requires disclosure in the notes to the financial statements of specified information about certain costs and expenses. Retrospective application in all periods is permitted. The Company will adopt the new disclosure requirements for the annual period beginning on January 1, 2027, and interim periods starting on January 1, 2028. The Company is still evaluating the impact of these additional disclosure requirements.

(2) Investment Securities

The amortized cost and estimated fair value of securities available-for-sale and held-to-maturity along with gross unrealized gains and losses are summarized as follows:


			Gross		Gross
(dollars in thousands)	Amortized		Unrealized		Unrealized
March 31, 2026	Cost		Gains		Losses		Fair Value
Securities Available-for-Sale:
U.S. treasury securities	$	4,818	$	—	$	(19)	$	4,799
U.S. agency securities		3,190		—		(125)		3,065
Asset backed securities		14,021		22		(181)		13,862
State, county & municipal securities		117,918		9		(11,298)		106,629
Corporate debt securities		47,681		81		(3,672)		44,090
Mortgage-backed securities		217,189		288		(14,582)		202,895
Total	$	404,817	$	400	$	(29,877)	$	375,340


					Gross			Gross
		Amortized			Unrealized			Unrealized
March 31, 2026		Cost			Gains			Losses			Fair Value
Securities Held-to-Maturity:
U.S. treasury securities		$	53,683		$	—		$	(1,142)		$	52,541
U.S. agency securities			8,934			—			(709)			8,225
State, county & municipal securities			137,689			18			(12,763)			124,944
Mortgage-backed securities			171,612			—			(19,344)			152,268
Total		$	371,918		$	18		$	(33,958)		$	337,978

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COLONY BANKCORP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)


					Gross			Gross
		Amortized			Unrealized			Unrealized
December 31, 2025		Cost			Gains			Losses			Fair Value
Securities Available-for-Sale:
U.S. treasury securities		$	5,570		$	12		$	—		$	5,582
U.S. agency securities			3,304			—			(108)			3,196
Asset backed securities			14,622			6			(145)			14,483
State, county & municipal securities			118,204			58			(11,032)			107,230
Corporate debt securities			52,660			336			(4,189)			48,807
Mortgage-backed securities			218,035			525			(14,041)			204,519
Total		$	412,395		$	937		$	(29,515)		$	383,817


					Gross			Gross
		Amortized			Unrealized			Unrealized
December 31, 2025		Cost			Gains			Losses			Fair Value
Securities Held-to-Maturity:
U.S. treasury securities		$	65,408		$	—		$	(958)		$	64,450
U.S. agency securities			8,991			—			(682)			8,309
State, county & municipal securities			137,591			76			(11,675)			125,992
Mortgage-backed securities			174,628			—			(19,089)			155,539
Total		$	386,618		$	76		$	(32,404)		$	354,290

The Company elected to exclude accrued interest receivable from the amortized cost basis of available-for-sale and held-to-maturity securities disclosed throughout this note. As of March 31, 2026 and December 31, 2025, accrued interest receivable for available-for-sale and held-to-maturity securities totaled $1.9 million and $2.3 million, and $1.7 million and $1.7 million, respectively, and is included in the “Other assets” line item on the Company’s consolidated balance sheet.

The amortized cost and fair value of investment securities as of March 31, 2026, by contractual maturity, are shown hereafter. Expected maturities may differ from contractual maturities for certain investments because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. This is often the case with mortgage-backed securities, which are disclosed separately in the table below.


	Available-for-Sale				Held-to-Maturity
(dollars in thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	5,653	$	5,482	$	—	$	—
Due after one year through five years		35,854		34,320		64,924		63,396
Due after five years through ten years		96,638		87,195		78,315		71,974
Due after ten years		49,483		45,448		57,067		50,340
	$	187,628	$	172,445	$	200,306	$	185,710

Mortgage-backed securities		217,189		202,895		171,612		152,268
	$	404,817	$	375,340	$	371,918	$	337,978

For both the three month periods ended March 31, 2026 and 2025, the Company had no sales of investment securities.

Investment securities having a carrying value of approximately $373.0 million and $397.2 million were pledged to secure public deposits and for other purposes as of March 31, 2026 and December 31, 2025, respectively.

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COLONY BANKCORP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

Information pertaining to available-for-sale securities with gross unrealized losses at March 31, 2026 and December 31, 2025 aggregated by investment category and length of time that individual securities have been in a continuous loss position is as follows:


	Less Than 12 Months				12 Months or Greater				Total
			Gross				Gross				Gross
(dollars in thousands)	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
March 31, 2026	Value		Losses		Value		Losses		Value		Losses
U.S. treasury securities	$	4,799	$	(19)	$	—	$	—	$	4,799	$	(19)
U.S. agency securities		973		(5)		1,942		(120)		2,915		(125)
Asset backed securities		2,285		(4)		7,839		(177)		10,124		(181)
State, county & municipal securities		9,279		(306)		95,537		(10,992)		104,816		(11,298)
Corporate debt securities		4,659		(150)		31,171		(3,522)		35,830		(3,672)
Mortgage-backed securities		58,253		(384)		122,104		(14,198)		180,357		(14,582)
	$	80,248	$	(868)	$	258,593	$	(29,009)	$	338,841	$	(29,877)

December 31, 2025
U.S. treasury securities		—		—		—		—		—		—
U.S. agency securities		1,182		(2)		2,014		(106)		3,196		(108)
Asset backed securities		5,001		(8)		8,265		(137)		13,266		(145)
State, county & municipal securities		5,219		(545)		94,080		(10,487)		99,299		(11,032)
Corporate debt securities		3,955		(45)		34,550		(4,144)		38,505		(4,189)
Mortgage-backed securities		27,089		(134)		125,920		(13,907)		153,009		(14,041)
	$	42,446	$	(734)	$	264,829	$	(28,781)	$	307,275	$	(29,515)

Information pertaining to held-to-maturity securities with gross unrealized losses at March 31, 2026 and December 31, 2025 aggregated by investment category and length of time that individual securities have been in a continuous loss position is as follows:


	Less Than 12 Months				12 Months or Greater				Total
			Gross				Gross				Gross
(dollars in thousands)	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
March 31, 2026	Value		Losses		Value		Losses		Value		Losses
U.S. treasury securities	$	—	$	—	$	52,541	$	(1,142)	$	52,541	$	(1,142)
U.S. agency securities		—		—		8,225		(709)		8,225		(709)
State, county & municipal securities		10,191		(94)		108,068		(12,669)		118,259		(12,763)
Mortgage-backed securities		—		—		152,268		(19,344)		152,268		(19,344)
	$	10,191	$	(94)	$	321,102	$	(33,864)	$	331,293	$	(33,958)

December 31, 2025
U.S. treasury securities	$	—	$	—	$	64,450	$	(958)	$	64,450	$	(958)
U.S. agency securities		—		—		8,309		(682)		8,309		(682)
State, county & municipal securities		441		(3)		116,706		(11,672)		117,147		(11,675)
Mortgage-backed securities		—		—		155,539		(19,089)		155,539		(19,089)
	$	441	$	(3)	$	345,004	$	(32,401)	$	345,445	$	(32,404)

Management evaluates available-for-sale securities in an unrealized loss position at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation to determine if credit-related impairment exists. Management first evaluates whether they intend to sell or more likely than not will be required to sell an impaired security before recovering its amortized cost basis. If either criteria is met, the entire amount of unrealized loss is recognized in earnings with a corresponding adjustment to the security’s amortized cost basis. If either of the above criteria is not met, management evaluates whether the decline in fair value is attributable to credit or resulted from other

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COLONY BANKCORP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

factors. The Company does not intend to sell these investment securities in an unrealized loss position as of March 31, 2026, and it is more likely than not that the Company will not be required to sell these securities prior to recovery or maturity. Based on management’s review, the Company’s available-for-sale securities have no expected credit losses and no related allowance for credit losses has been established.

The Company uses a systematic methodology to determine its ACL for debt securities held-to-maturity considering the effects of past events, current conditions, and reasonable and supportable forecasts on the collectibility of the portfolio. The ACL is a valuation account that is deducted from the amortized cost basis to present the net amount expected to be collected on the held-to-maturity portfolio. The Company monitors the held-to-maturity portfolio on a quarterly basis to determine whether a valuation account would need to be recorded. Based on management’s review, the Company’s held-to-maturity securities have no expected credit losses and no related allowance for credit losses has been established.

At March 31, 2026, there were 270 available-for-sale securities and 144 held-to-maturity securities that had unrealized losses. These securities are guaranteed by either the U.S. Government, other governments or U.S. corporations. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred and the results of reviews of the issuer’s financial condition. The unrealized losses are largely due to increases in market interest rates over the yields available at the time the underlying securities were purchased. As management has the ability and intent to hold debt securities until maturity, or for the foreseeable future if classified as available-for-sale, no declines are due to reasons of credit quality.

As part of the Company’s calculated credit losses, the allowance for credit losses on investment securities was determined to be de minimis due to the high credit quality of the portfolio, which includes securities issued or guaranteed by the U.S. treasury and U.S. government agencies and high quality municipalities. Therefore, no allowance for credit losses was recorded as of March 31, 2026. See Note 1 for additional details on the allowance for credit losses as it relates to the securities portfolio.

(3) Loans

The following table presents the composition of loans, segregated by class of loans, as of March 31, 2026 and December 31, 2025.


(dollars in thousands)		March 31, 2026			December 31, 2025
Construction, land & land development		$	309,161		$	302,512
Other commercial real estate			1,240,210			1,249,720
Total commercial real estate			1,549,371			1,552,232
Residential real estate			483,247			459,549
Commercial, financial & agricultural			220,933			218,532
Consumer and other			159,914			150,911
Total loans		$	2,413,465		$	2,381,224

Included in the above table are government guaranteed loans totaling $83.3 million at March 31, 2026 and $84.9 million at December 31, 2025. The following table presents the composition of government guaranteed loans segregated by class of loans for each respective period.


(dollars in thousands)		March 31, 2026			December 31, 2025
Construction, land & land development		$	43		$	2,277
Other commercial real estate			45,727			43,251
Total commercial real estate			45,770			45,528
Residential real estate			9,626			10,050
Commercial, financial & agricultural			27,892			29,350
Total loans		$	83,288		$	84,928

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COLONY BANKCORP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

The Company elected to exclude accrued interest receivable from the amortized cost basis of loans disclosed throughout this note. As of March 31, 2026 and December 31, 2025, accrued interest receivable for loans totaled $10.5 million and $11.4 million, respectively, and is included in the “Other assets” line item on the Company’s consolidated balance sheet.

Commercial, financial & agricultural loans are extended to a diverse group of businesses within the Company’s market area. These loans are often underwritten based on the borrower’s ability to service the debt from income from the business. Real estate construction loans often require loan funds to be advanced prior to completion of the project. Due to uncertainties inherent in estimating construction costs, changes in interest rates and other economic conditions, these loans often pose a higher risk than other types of loans. Consumer and other loans are originated at the Bank level.

Credit Quality Indicators. As part of the ongoing monitoring of the credit quality of the loan portfolio, management tracks certain credit quality indicators including trends related to (1) the risk grade assigned to commercial and consumer loans, (2) the level of classified commercial loans, (3) net charge-offs, (4) nonperforming loans, and (5) the general economic conditions in the Company’s geographic markets.

The Company uses a risk grading matrix to assign a risk grade to each of its loans. For commercial loans over $500,000, loans are graded on a scale of 1 to 10. A description of the general characteristics of the grades is as follows:

●

Grades 1, 2 and 3 - Loans with these assigned risk grades range from virtual absence of risk to minimal risk. Such loans may be secured by Company-issued and controlled certificates of deposit or properly margined equity securities or bonds. Other loans comprising these grades are made to companies that have been in existence for a long period of time with many years of consecutive profits and strong equity, good liquidity, excellent debt service ability and unblemished past performance, or to exceptionally strong individuals with collateral of unquestioned value that fully secures the loans. Loans in this category fall into the “pass” classification.

●

Grades 4 and 5 - Loans assigned these “pass” risk grades are made to borrowers with acceptable credit quality and risk. The risk ranges from loans with no significant weaknesses in repayment capacity and collateral protection to acceptable loans with one or more risk factors considered to be more than average. These loans are also included in the “pass” classification.

●

Grade 6 - This grade includes “special mention” loans on management’s watch list and is intended to be used on a temporary basis for pass grade loans where risk-modifying action is intended in the short-term.

●

Grades 7 and 8 - These grades include “substandard” loans in accordance with regulatory guidelines. This category includes borrowers with well-defined weaknesses that jeopardize the payment of the debt in accordance with the agreed terms. Loans considered to be impaired are assigned grade 8, and these loans often have assigned loss allocations as part of the allowance for credit losses. Generally, loans on which interest accrual has been stopped would be included in this grade range.

●

Grades 9 and 10 - These grades correspond to regulatory classification definitions of “doubtful” and “loss,” respectively. In practice, any loan with these grades would be for a very short period of time, and generally the Company has no loans with these assigned grades. Management manages the Company’s problem loans in such a way that uncollectible loans or uncollectible portions of loans are charged off immediately with any residual, collectible amounts assigned a risk grade of 7 or 8.

For smaller commercial loans (under $500,000) and consumer loans, the Company began using behavioral based risk grades during the second quarter of 2024. These loans are assigned risk grades of 98 or 99 based on payment performance with the Company.

Grade 98 - Loans assigned this risk grade indicates a “pass” credit.

Grade 99 - Loans assigned this risk grade indicates a “substandard” credit and is moved to a nonaccrual status.

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COLONY BANKCORP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

The following tables present the loan portfolio segregated by class of loans and the risk category of term loans by vintage year, which is the year of origination or most recent renewal, as of March 31, 2026 and December 31, 2025. Those loans with a risk grade of 1, 2, 3, 4, 5 and 98 have been combined in the pass line for presentation purposes. Loans with a risk grade of 7, 8 and 99 have been combined in the substandard line. There were no loans with a risk rating of “doubtful” or “loss” at March 31, 2026 or December 31, 2025.


																							Revolvers
		Term Loans Amortized Cost Basis by Origination Year																					converted
(dollars in thousands)		2026			2025			2024			2023			2022			Prior			Revolvers			to term loans			Total
March 31, 2026
Construction, land & land development
Risk rating
Pass		$	33,055		$	191,730		$	46,137		$	3,713		$	9,212		$	7,615		$	11,124		$	—		$	302,586
Special Mention			—			2,864			815			1,693			602			387			—			—			6,361
Substandard			—			—			122			—			92			—			—			—			214
Total Construction, land & land development			33,055			194,594			47,074			5,406			9,906			8,002			11,124			—			309,161

Current period gross write offs		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—

Other commercial real estate
Risk rating
Pass			37,130			232,234			112,068			99,732			348,059			338,573			16,430			1,463			1,185,689
Special Mention			2,219			996			8,137			5,636			2,015			11,038			—			515			30,556
Substandard			566			6,523			4,918			4,764			2,949			4,142			—			103			23,965
Total Other commercial real estate			39,915			239,753			125,123			110,132			353,023			353,753			16,430			2,081			1,240,210

Current period gross write offs			—			—			—			475			—			—			—			—			475

Residential real estate
Risk rating
Pass			19,639			63,948			46,567			65,372			111,292			118,064			44,529			1,314			470,725
Special Mention			—			771			94			1,271			—			4,058			168			—			6,362
Substandard			—			790			52			2,527			1,662			1,071			58			—			6,160
Total Residential real estate			19,639			65,509			46,713			69,170			112,954			123,193			44,755			1,314			483,247

Current period gross write offs			—			—			—			—			45			5			—			—			50

Commercial, financial & agricultural
Risk rating
Pass			12,002			41,436			23,218			28,006			22,035			20,345			60,174			825			208,041
Special Mention			—			—			—			85			120			—			4,033			—			4,238
Substandard			171			1,034			2,287			2,842			1,594			601			125			—			8,654
Total Commercial, financial & agricultural			12,173			42,470			25,505			30,933			23,749			20,946			64,332			825			220,933

Current period gross write offs			—			41			279			413			7			1			—			—			741

Consumer and other
Risk rating
Pass			24,670			74,184			31,888			26,618			1,025			459			820			20			159,684
Special Mention			—			—			—						—			—			—			—			—
Substandard			—			—			116			114			—			—			—			—			230
Total Consumer and other			24,670			74,184			32,004			26,732			1,025			459			820			20			159,914

Current period gross write offs			—			223			224			72			—			—			—			—			519

Total Loans
Risk rating
Pass			126,496			603,532			259,878			223,441			491,623			485,056			133,077			3,622			2,326,725
Special Mention			2,219			4,631			9,046			8,685			2,737			15,483			4,201			515			47,517
Substandard			737			8,347			7,495			10,247			6,297			5,814			183			103			39,223
Total Loans		$	129,452		$	616,510		$	276,419		$	242,373		$	500,657		$	506,353		$	137,461		$	4,240		$	2,413,465

Total current period gross write offs		$	—		$	264		$	503		$	960		$	52		$	6		$	—		$	—		$	1,785

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COLONY BANKCORP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)


																							Revolvers
		Term Loans Amortized Cost Basis by Origination Year																					converted
(dollars in thousands)		2025			2024			2023			2022			2021			Prior			Revolvers			to term loans			Total
December 31, 2025
Construction, land & land development
Risk rating
Pass		$	190,131		$	63,730		$	8,065		$	12,914		$	8,517		$	1,440		$	110		$	—		$	284,907
Special Mention			16,167			—			—			—			—			—			—			—			16,167
Substandard			54			122			1,132			92			—			38			—			—			1,438
Total Construction, land & land development			206,352			63,852			9,197			13,006			8,517			1,478			110			—			302,512

Current period gross write offs		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—

Other commercial real estate
Risk rating
Pass			235,989			121,779			113,731			351,954			191,620			177,904			15,173			1,498			1,209,648
Special Mention			6,452			—			4,680			3,110			—			2,441			—			518			17,201
Substandard			5,135			6,327			4,117			3,036			799			2,638			616			203			22,871
Total Other commercial real estate			247,576			128,106			122,528			358,100			192,419			182,983			15,789			2,219			1,249,720

Current period gross write offs			—			—			206			278			5			20			—			—			509

Residential real estate
Risk rating
Pass			21,212			62,992			79,928			121,472			58,367			72,633			30,633			799			448,036
Special Mention			777			94			247			—			1,283			2,803			195			—			5,399
Substandard			566			52			2,534			1,674			261			1,027			—			—			6,114
Total Residential real estate			22,555			63,138			82,709			123,146			59,911			76,463			30,828			799			459,549

Current period gross write offs			—			—			—			140			—			43			—			—			183

Commercial, financial & agricultural
Risk rating
Pass			46,062			26,351			32,121			26,463			6,811			16,282			48,395			849			203,334
Special Mention			1,666			—			95			132			—			—			3,448			—			5,341
Substandard			123			2,291			3,277			1,571			2,173			136			286			—			9,857
Total Commercial, financial & agricultural			47,851			28,642			35,493			28,166			8,984			16,418			52,129			849			218,532

Current period gross write offs			178			597			1,206			915			433			60			—			—			3,389

Consumer and other
Risk rating
Pass			83,905			35,690			28,544			1,272			150			408			589			22			150,580
Special Mention			—			131			—			—			—			—			—			—			131
Substandard			—			114			86			—			—			—			—			—			200
Total Consumer and other			83,905			35,935			28,630			1,272			150			408			589			22			150,911

Current period gross write offs			244			1,071			274			17			—			12			—			—			1,618

Total Loans
Risk rating
Pass			577,299			310,542			262,389			514,075			265,465			268,667			94,900			3,168			2,296,505
Special Mention			25,062			225			5,022			3,242			1,283			5,244			3,643			518			44,239
Substandard			5,878			8,906			11,146			6,373			3,233			3,839			902			203			40,480
Total Loans		$	608,239		$	319,673		$	278,557		$	523,690		$	269,981		$	277,750		$	99,445		$	3,889		$	2,381,224

Total current period gross write offs		$	422		$	1,668		$	1,686		$	1,350		$	438		$	135		$	—		$	—		$	5,699

A loan’s risk grade is assigned at the inception of the loan and is based on the financial strength of the borrower and the type of collateral. Loan risk grades are subject to review at various times throughout the year as part of the Company’s ongoing loan review process. Loans with an assigned risk grade of 7, 8, 9, 10 or 99 and an outstanding balance of $500,000 or more are reassessed on a quarterly basis. During this reassessment process individual reserves may be identified and placed against certain loans which are not considered impaired.

In assessing the overall economic condition of the markets in which it operates, the Company monitors the unemployment rates for its major service areas. The unemployment rates are reviewed on a quarterly basis as part of the allowance for credit loss determination.

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COLONY BANKCORP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Generally, loans are placed on nonaccrual status if principal or interest payments become 90 days past due or when, in management’s opinion, the borrower may be unable to meet payment obligations as they become due, as well as when required by regulatory provision. Loans may be placed on nonaccrual status regardless of whether or not such loans are considered past due.

Loans are classified as collateral-dependent when the borrower is experiencing financial difficulty, and we expect repayment to be provided substantially through the operation or sale of collateral. Our commercial loans have collateral that is comprised of real estate and business assets. Our consumer loans have collateral that is substantially comprised of residential real estate. The Company had $9.2 million and $7.2 million in collateral-dependent loans at March 31, 2026 and December 31, 2025, respectively.

There were no significant changes in the extent to which collateral secures our collateral-dependent loans during the three month periods ended March 31, 2026 and March 31, 2025.

The following table presents an age analysis of past due loans and nonaccrual loans, segregated by class of loans, as of March 31, 2026 and December 31, 2025:


								Total
					90 Days			Accruing
		30‑89 Days			or More			Loans Past			Nonaccrual			Current			Total
(dollars in thousands)		Past Due			Past Due			Due			Loans			Loans			Loans
March 31, 2026
Construction, land & land development		$	244		$	—		$	244		$	92		$	308,825		$	309,161
Other commercial real estate			552			—			552			6,629			1,233,029			1,240,210
Total commercial real estate			796			—			796			6,721			1,541,854			1,549,371
Residential real estate			2,980			—			2,980			4,662			475,605			483,247
Commercial, financial & agricultural			1,627			—			1,627			5,985			213,321			220,933
Consumer and other			1,189			178			1,367			231			158,316			159,914
Total Loans		$	6,592		$	178		$	6,770		$	17,599		$	2,389,096		$	2,413,465

December 31, 2025
Construction, land & land development		$	269		$	—		$	269		$	1,132		$	301,111		$	302,512
Other commercial real estate			4,183			—			4,183			9,663			1,235,874			1,249,720
Total commercial real estate			4,452			—			4,452			10,795			1,536,985			1,552,232
Residential real estate			3,558			—			3,558			4,501			451,490			459,549
Commercial, financial & agricultural			925			—			925			7,883			209,724			218,532
Consumer and other			915			95			1,010			201			149,700			150,911
Total Loans		$	9,850		$	95		$	9,945		$	23,380		$	2,347,899		$	2,381,224

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COLONY BANKCORP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

The following tables display a summary of the Company’s nonaccrual loans by major categories for the periods indicated.


		March 31, 2026
		Nonaccrual			Nonaccrual Loans			Total
		Loans with No			with a Related			Nonaccrual
(dollars in thousands)		Related ACL			ACL			Loans
Construction, land & land development		$	—		$	92		$	92
Other commercial real estate			4,492			2,137			6,629
Total commercial real estate			4,492			2,229			6,721
Residential real estate			2,315			2,347			4,662
Commercial, financial & agricultural			2,296			3,689			5,985
Consumer and other			—			231			231
Total Loans		$	9,103		$	8,496		$	17,599


	December 31, 2025
	Nonaccrual Loans		Nonaccrual Loans		Total
	with No Related		with a Related		Nonaccrual
(dollars in thousands)	ACL		ACL		Loans
Construction, land & land development	$	—	$	1,132	$	1,132
Other commercial real estate		8,231		1,432		9,663
Total commercial real estate		8,231		2,564		10,795
Residential real estate		1,807		2,694		4,501
Commercial, financial & agricultural		4,296		3,587		7,883
Consumer and other		—		201		201
Total Loans	$	14,334	$	9,046	$	23,380

As of March 31, 2026 and March 31, 2025, the Company had no loans in the process of foreclosure.

Interest income recorded on nonaccrual loans during the three months ended March 31, 2026 and 2025 was $241,000 and $234,000, respectively.

The allowance for credit losses incorporates an estimate of lifetime expected credit losses and is recorded on each asset upon asset origination or acquisition. The starting point for the estimate of the allowance for credit losses is historical loss information, which includes losses from modifications of receivables to borrowers experiencing financial difficulty. The Company uses a discounted cash flow model to determine the allowance for credit losses. An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification.

Because the effect of most modifications made to borrowers experiencing financial difficulty is already included in the allowance for credit losses because of the measurement methodologies used to estimate the allowance, a change to the allowance for credit losses is generally not recorded upon modification. Occasionally, the Company modifies loans by providing principal forgiveness on certain of its real estate loans. When principal forgiveness is provided, the amortized cost basis of the asset is written off against the allowance for credit losses. The amount of the principal forgiveness is deemed to be uncollectible; therefore, that portion of the loan is written off, resulting in a reduction of the amortized cost basis and a corresponding adjustment to the allowance for credit losses.

In some cases, the Company will modify a certain loan by providing multiple types of concessions. Typically, one type of concession, such as a term extension, is granted initially. If the borrower continues to experience financial difficulty, another concession, such as principal forgiveness, may be granted. Upon the Company’s determination that a modified loan, or portion of a loan, has subsequently been deemed uncollectible, the loan, or portion of the loan, is written off.

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COLONY BANKCORP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

There were no loans modified due to a financial difficulty under the above terms during the three month periods ended March 31, 2026 and March 31, 2025.

There were no loans that subsequently defaulted during the three month period ended March 31, 2026. The Company had one commercial, financial & agricultural loan that subsequently defaulted during the three month period ended March 31, 2025 due to late payments. This loan had been given a payment delay as well as a term extension.

(4) Allowance for Credit Losses

The ACL for loans represents management’s estimate of life of loan credit losses in the portfolio as of the end of the period. The ACL related to unfunded commitments is included in other liabilities in the consolidated balance sheet. The following tables present the balance sheet activity in the ACL by portfolio segment for loans for the three month periods ended March 31, 2026 and March 31, 2025.


	Balance						Adjustment		Provision for		Balance,
	December 31,						on acquired		credit losses		March 31,
(dollars in thousands)	2025		Charge-Offs		Recoveries		loans		on loans		2026
Three Months Ended March 31, 2026
Construction, land & land development	$	2,474	$	—	$	1	$	—	$	(223)		2,252
Other commercial real estate		7,715		(475)		—		(1,092)		161		6,309
Total commercial real estate		10,189		(475)		1		(1,092)		(62)		8,561
Residential real estate		5,488		(50)		1		(8)		44		5,475
Commercial, financial & agricultural		3,894		(741)		42		—		917		4,112
Consumer and other		3,443		(519)		32		—		601		3,557
Total allowance for credit losses on loans	$	23,014	$	(1,785)	$	76	$	(1,100)	$	1,500	$	21,705


	Balance						Provision for		Balance,
	December 31,						credit losses		March 31,
(dollars in thousands)	2024		Charge-Offs		Recoveries		on loans		2025
Three Months Ended March 31, 2025
Construction, land & land development	$	1,306	$	—	$	1	$	(229)	$	1,078
Other commercial real estate		6,459		(180)		5		231		6,515
Total commercial real estate		7,765		(180)		6		2		7,593
Residential real estate		5,502		(1)		40		212		5,753
Commercial, financial & agricultural		2,904		(262)		55		848		3,545
Consumer and other		2,809		(276)		12		561		3,106
Total allowance for loan losses	$	18,980	$	(719)	$	113	$	1,623	$	19,997

Within the one-year measurement period allowed under ASC 805, the Company recorded a measurement period adjustment in Q1 2026 related to a Purchased Financial Asset with Credit Deterioration (PCD) acquired in a recent business combination. The adjustment was triggered by an updated, independent third-party appraisal for the collateral securing the loan, which provided better information about conditions that existed at the acquisition date. This appraisal reflected a $1.1 million increase in collateral value, which reduced the required Allowance for Credit Losses (ACL). In accordance with ASC 805-10-25-15, the credit for the reduction in the ACL was recognized by a corresponding decrease in Goodwill, net of deferred tax effects, as ASC 326-20-30-13 requires that measurement period adjustments to a PCD asset's ACL be applied against its amortized cost basis (Goodwill) rather than through the Provision for Credit Losses in the income statement.

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COLONY BANKCORP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

Colony used a one-year reasonable and supportable forecast period. The changes in loss rates used as the basis for the estimate of credit losses during this period were modeled using historical data from peer banks and macroeconomic forecast data obtained from a third party vendor, which were then applied to Colony’s recent default experience as a starting point. As of March 31, 2026, the Company expects that the markets in which it operates will experience stable economic and unemployment conditions with the trend of delinquencies returning to more normalized levels, over the next year. Management adjusted the historical loss experience for these expectations. No reversion adjustments were necessary, as the starting point for the Company’s estimate was a cumulative loss rate covering the expected contractual term of the portfolio.

The Company determines its individual reserves during its quarterly review of substandard loans. This process involves reviewing all loans with a risk grade of 7, 8, 9, 10 or 99 and an outstanding balance of $500,000 or more, regardless of the loans impairment classification.

The Company maintains an allowance for off-balance sheet credit exposures such as unfunded balances for existing lines of credit, commitments to extend future credit, as well as both standby and commercial letters of credit when there is a contractual obligation to extend credit and when this extension of credit is not unconditionally cancellable. The allowance for off-balance sheet credit exposures is adjusted as a provision for credit loss expense. The estimate includes consideration of the likelihood that funding will occur, which is based on a historical funding study derived from internal information, and an estimate of expected credit losses on commitments expected to be funded over its estimated life, which are the same loss rates that are used in computing the allowance for credit losses on loans. The allowance for credit losses for unfunded commitments is separately classified on the balance sheet within other liabilities.

The following table presents the balance and activity in the allowance for credit losses for unfunded commitments for the three month periods ended March 31, 2026 and March 31, 2025.


		Three Months Ended
		March 31,
(dollars in thousands)		2026			2025
Beginning balance		$	950		$	813
Provision for (recovery of) unfunded commitments			250			(123)
Ending balance		$	1,200		$	690

(5) Derivatives

As part of its asset liability management activities, the Company may enter into interest rate swaps to help manage its interest rate risk position and mitigate exposure to the variability of future cash flows or other forecasted transactions. The Company entered into two interest rate swaps during the second quarter of 2023, to hedge the variability of cash flows due to changes in the benchmark Secured Overnight Financing Rate (“SOFR”) interest rate risk for its short-term funding over the term of these cash flow hedges. The Company entered into two additional interest rate swaps during the third quarter of 2024, one of which was designated as a cash flow hedge and the other a fair value hedge. In addition, the Company entered into one interest rate swap during the fourth quarter of 2024 which was also designated as a fair value hedge. Fair value hedging relationships mitigate exposure to the change in fair value of an asset or liability.

The notional amount of an interest rate swap does not represent the amount exchanged by the parties. The exchange of cash flows is determined by reference to the notional amount and the other terms of the interest rate swap agreements.

On June 23, 2023, the Company entered into a five-year interest rate swap with a notional amount totaling $25.0 million. On June 26, 2023, the Company entered into a three-year interest rate swap with a notional amount totaling $25.0 million. Both of the swaps were designated as cash flow hedges of certain variable rate liabilities.

On August 30, 2024, the Company entered into an interest rate swap with a notional amount totaling $25.4 million with maturity dates ranging from three to 3.5 years. This swap was designated as a fair value hedge of certain fixed rate

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COLONY BANKCORP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

assets. On September 6, 2024, the Company entered into an interest rate swap with a remaining notional amount totaling $10.0 million and a maturity date in six months. This swap was designated as a cash flow hedge of certain variable rate liabilities. On October 17, 2024, the Company entered into an interest rate swap with a notional amount totaling $25.0 million with a maturity date of three years. This swap was designated as a fair value hedge of certain fixed rate assets.

The Company had derivatives of $29,000 recorded in “Other assets” on the Company’s balance sheet at March 31, 2026, which represents fair value hedges. The derivatives recorded in “Other liabilities” on the Company’s balance sheet at March 31, 2026 have a total value of $150,000, with $131,000 representing cash flow hedges and $19,000 representing fair value hedges.

Gains were recorded on the swap transactions, which totaled $41,000 and $79,000 for the three months ended March 31, 2026 and 2025, respectively, as a component of interest expense in the consolidated statements of income. Amounts reported in accumulated OCI related to swaps are reclassified to interest income or expense as interest payments are made on the Bank’s fixed rate assets and variable rate liabilities.

The following table presents the amounts recorded in the consolidated statements of income and the consolidated statements of comprehensive income relating to the interest rate swaps for the three month periods ended March 31, 2026 and 2025.


	Three Months Ended
	March 31,
(dollars in thousands)	2026			2025
Cash flow hedging relationships
Amount of gain(loss) recognized in OCI, net of tax	$	177		$	(327)
Amount of gain reclassified from OCI to interest expense, net of tax		31			59

Fair value hedging relationships
Amount of gain(loss) recognized in OCI, net of tax		209			(358)
Amount recognized in interest income, net of tax		4			70

(6) Borrowings

The following table presents information regarding the Company’s outstanding borrowings at March 31, 2026 and December 31, 2025:


		March 31,			December 31,
(dollars in thousands)		2026			2025
Federal Home Loan Bank advances		$	194,981		$	194,972
Other borrowings			63,156			63,132
		$	258,137		$	258,104

Advances from the Federal Home Loan Bank (“FHLB”) have maturities ranging from 2026 to 2029 and interest rates ranging from 3.69% to 4.73%. As collateral on the outstanding FHLB advances, the Company has provided a blanket lien on its portfolio of qualifying residential first mortgage loans, commercial real estate loans, farmland loans, multifamily loans and HELOC loans. At March 31, 2026, the lendable collateral value of those loans pledged is $237.8 million. At March 31, 2026, the Company had remaining credit availability from the FHLB of $921.2 million. The Company may be required to pledge additional qualifying collateral in order to utilize the full amount of the remaining credit line.

The Company’s debentures issued in connection with trust preferred securities are recorded as other borrowings on the consolidated balance sheets, but, subject to certain limitations, qualify as Tier 1 capital for regulatory capital purposes. At March 31, 2026 and December 31, 2025, $24.2 million of debentures underlying trust preferred securities were

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COLONY BANKCORP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

outstanding. The proceeds from the offerings were used to fund certain acquisitions, pay off holding company debt and inject capital into the bank subsidiary. The debentures underlying the trust preferred securities require quarterly interest payments.

The Company also has fixed-to-floating rate subordinated notes which are due 2032 (the “Notes”). The Notes bear a fixed rate of 5.25% for the first five years and reset quarterly thereafter to the then current three-month SOFR, as published by the Federal Reserve Bank of New York, plus 265 basis points for the five-year floating term. The Company is entitled to redeem the Notes, in whole or in part, on any interest payment date on or after May 20, 2027, or at any time, in whole but not in part, upon certain other specified events. At March 31, 2026 and December 31, 2025, $38.9 million and $38.9 million, respectively, of the Notes, net of debt issuance costs were outstanding. The Notes are recorded as other borrowings on the consolidated balance sheets and, subject to certain limitations, qualify as Tier 2 capital for regulatory capital purposes.

The aggregate stated maturities of other borrowed money at March 31, 2026 are as follows:


(dollars in thousands)
Year	Amount
2026	$	84,981
2027		15,000
2028		65,000
2029		30,000
2030		—
2031 and After		63,156
	$	258,137

The Company also has available federal funds lines of credit with various financial institutions totaling $143.0 million, with no outstanding balance at March 31, 2026.

The Company has the ability to borrow funds from the Federal Reserve Bank (“FRB”) of Atlanta utilizing the discount window. The discount window is an instrument of monetary policy that allows eligible institutions to borrow money from the FRB on a short-term basis to meet temporary liquidity shortages caused by internal or external disruptions. At March 31, 2026, the Company had $121.8 million borrowing capacity available under this arrangement, with no outstanding balances. The Company would be required to pledge certain available-for-sale investment securities as collateral under this agreement.

(7) Earnings Per Share

Basic earnings per share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during each period. Diluted earnings per share reflects the potential dilution of restricted stock.

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COLONY BANKCORP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

The following table presents earnings per share for the three month periods ended March 31, 2026 and 2025.


			Three Months Ended
			March 31,
(dollars in thousands, except per share data)			2026			2025
Numerator
Net income available to common stockholders			$	8,204		$	6,613

Denominator
Weighted average number of common shares
Outstanding for basic earnings per common share				21,222,237			17,509,059
Weighted-average number of shares outstanding for diluted earnings per common share				21,222,237			17,509,059

Earnings per share - basic			$	0.39		$	0.38
Earnings per share – diluted			$	0.39		$	0.38

(8) Commitments and Contingencies

Credit-Related Financial Instruments. The Company is a party to credit related financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, standby letters of credit and commercial letters of credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets.

The Company’s exposure to credit loss is represented by the contractual amount of these commitments. The Company follows the same credit policies in making commitments as it does for on-balance sheet instruments. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary, upon extension of credit, is based on management’s credit evaluation of the borrower. Collateral held varies, but may include cash or cash equivalents, negotiable instruments, real estate, accounts receivable, inventory, oil, gas and mineral interests, property, plant, and equipment.

At March 31, 2026 and December 31, 2025 the following financial instruments were outstanding whose contract amounts represent credit risk:


		Contract Amount
		March 31,			December 31,
(dollars in thousands)		2026			2025
Loan commitments		$	481,170		$	334,149
Letters of credit			6,770			6,158

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The commitments for equity lines of credit may expire without being drawn upon. Therefore, the total commitment amounts do not necessarily represent future cash requirements. The amount of collateral obtained, if it is deemed necessary by the Company, is based on management’s credit evaluation of the customer.

Unfunded commitments under commercial lines of credit, revolving credit lines and overdraft protection agreements are commitments for possible future extensions of credit to existing customers. These lines of credit are uncollateralized and usually do not contain a specified maturity date and may not be drawn upon to the total extent to which the Company is committed.

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COLONY BANKCORP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

Standby and performance letters of credit are conditional lending commitments issued by the Company to guarantee the performance of a customer to a third party. Those letters of credit are primarily issued to support public and private borrowing arrangements. Essentially all letters of credit issued have expiration dates within one year. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers.

Legal Contingencies. In the ordinary course of business, there are various legal proceedings pending against the Company and the Bank. As of March 31, 2026, the aggregate liabilities, if any, arising from such proceedings would not, in the opinion of management, have a material adverse effect on the Company’s consolidated financial position.

Wire Fraud Incident and Insurance Recovery Contingency: In March 2025, the Company was the target of a wire fraud incident. Upon discovery, the Company promptly implemented enhanced internal controls and notified law enforcement and regulatory authorities. After an investigation, it was determined that the incident did not impact any customer accounts or compromise any customer data. The Company maintains insurance coverage for such incidents through both commercial insurance and through a captive insurance company that covers losses and deductibles. Based on discussions in the third quarter of 2025 with the Company’s attorneys and insurance carriers and review of applicable insurance policies, it was determined that $1.25 million would not be recoverable and therefore was recognized as an expense in the Company’s financial statements during the third quarter of 2025.

(9) Fair Value of Financial Instruments and Fair Value Measurements

Generally accepted accounting standards in the U.S. require disclosure of fair value information about financial instruments, whether or not recognized on the face of the balance sheet, for which it is practicable to estimate that value. The assumptions used in the estimation of the fair value of the Company and the Bank’s financial instruments are detailed hereafter. Where quoted prices are not available, fair values are based on estimates using discounted cash flows and other valuation techniques. The use of discounted cash flows can be significantly affected by the assumptions used, including the discount rate and estimates of future cash flows.

Generally accepted accounting principles related to Fair Value Measurements define fair value, establish a framework for measuring fair value, establish a three-level valuation hierarchy for disclosure of fair value measurement and enhance disclosure requirements for fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows:

●

Level 1inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

●

Level 2inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

●

Level 3inputs to the valuation methodology are unobservable and represent the Company’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities.

The following disclosures should not be considered a surrogate of the liquidation value of the Company, but rather a good-faith estimate of the increase or decrease in value of financial instruments held by the Company since purchase, origination or issuance.

Cash and short-term investments – For cash, due from banks, bank-owned deposits and federal funds sold, the carrying amount is a reasonable estimate of fair value and is classified as Level 1.

Investment securities – Fair values for investment securities are based on quoted market prices where available and classified as Level 1. If quoted market prices are not available, estimated fair values are based on quoted market

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COLONY BANKCORP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

prices of comparable instruments and classified as Level 2. If a comparable is not available, the investment securities are classified as Level 3.

Other investments– The fair value of other bank stock approximates carrying value and is classified as Level 2. Fair values for investment funds are based on quoted market prices where available and classified as Level 1. If quoted market prices are not available, estimated fair values are based on quoted market prices of comparable instruments and classified as Level 2. If a comparable is not available, the investment securities are classified as Level 3.

Loans held for sale – The fair value of loans held for sale is determined on outstanding commitments from third party investors in the secondary markets and is classified within Level 2 of the valuation hierarchy.

Loans, net – The fair value of fixed rate loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings. For variable rate loans, the carrying amount is a reasonable estimate of fair value. The loans are classified as Level 3.

Deposits – The fair value of demand deposits, savings accounts and certain money market deposits is the amount payable on demand at the reporting date and is classified as Level 2. The fair value of deposits is estimated by discounting the future cash flows using the rates currently offered for deposits of similar remaining maturities and is classified as Level 2.

Federal Home Loan Bank advances– The fair value of Federal Home Loan Bank advances is estimated by discounting the future cash flows using the current rates at which similar advances would be obtained. Federal Home Loan Bank advances are classified as Level 2.

Other borrowings – The fair value of other borrowings is calculated by discounting contractual cash flows using an estimated interest rate based on current rates available to the Company for debt of similar remaining maturities and collateral terms. Other borrowings are classified as Level 2 due to their expected maturities.

Derivative instruments – The fair values of interest rate swaps are determined using the market standard methodology of netting the discounted future fixed cash receipts and the discounted expected variable cash payments. The variable cash payments are based on an expectation of future interest rates (forward curves) derived from observable market interest rate curves. The interest rate swaps are classified as Level 2.

Disclosures of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis, are required in the financial statements.

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COLONY BANKCORP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

The carrying amount, estimated fair values, and placement in the fair value hierarchy of the Company’s financial instruments as of March 31, 2026 and December 31, 2025 are as follows:


		Fair Value Measurements
		Carrying			Estimated
(dollars in thousands)		Value			Fair Value			Level 1			Level 2			Level 3
March 31, 2026
Assets
Cash and short-term investments		$	295,806		$	295,806		$	295,806		$	—		$	—
Investment securities available-for-sale			375,340			375,340			—			368,616			6,724
Investment securities held-to-maturity			371,918			337,978			—			337,978			—
Other investments			19,286			19,286			—			19,286			—
Loans held for sale			16,536			16,536			—			16,536			—
Loans, net			2,413,465			2,320,320			—			—			2,320,320
Derivative assets			29			29			—			29			—

Liabilities
Deposits			3,048,419			3,045,445			—			3,045,445			—
Federal Home Loan Bank advances			194,981			194,737			—			194,737			—
Other borrowings			63,156			55,581			—			55,581			—
Derivative liabilities			150			150			—			150			—


		Fair Value Measurements
		Carrying			Estimated
(dollars in thousands)		Value			Fair Value			Level 1			Level 2			Level 3
December 31, 2025
Assets
Cash and short-term investments		$	257,640		$	257,640		$	257,640		$	—		$	—
Investment securities available-for-sale			383,817			383,817			—			377,302			6,515
Investment securities held-to-maturity			386,618			354,290			—			354,290			—
Other investments			19,176			19,176			—			19,176			—
Loans held for sale			78,990			78,990			—			78,990			—
Loans, net			2,358,210			2,274,712			—			—			2,274,712
Derivative assets			—			—			—			—			—

Liabilities
Deposits			3,067,521			3,065,312			—			3,065,312			—
Federal Home Loan Bank advances			194,972			193,998			—			193,998			—
Other borrowings			63,132			55,692			—			55,692			—
Derivative liabilities			636			636			—			636			—

Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on many judgments. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

Fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Significant assets and liabilities that are not considered financial instruments include deferred income taxes and premises and equipment. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates.

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COLONY BANKCORP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

Following is a description of the valuation methodologies used for instruments measured at fair value on a recurring and nonrecurring basis, as well as the general classification of such instruments pursuant to the valuation hierarchy:

Securities – Where quoted prices are available in an active market, securities are classified within level 1 of the valuation hierarchy. Level 1 inputs include securities that have quoted prices in active markets for identical assets. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flow. Examples of such instruments, which would generally be classified within level 2 of the valuation hierarchy, include certain collateralized mortgage and debt obligations and certain high-yield debt securities. In certain cases where there is limited activity or less transparency around inputs to the valuation, securities are classified within level 3 of the valuation hierarchy. When measuring fair value, the valuation techniques available under the market approach, income approach and/or cost approach are used. The Company’s evaluations are based on market data and the Company employs combinations of these approaches for its valuation methods depending on the asset class.

Equity Securities - Equity securities with readily determinable fair values are recorded at fair value on a recurring basis. Fair value measurement for equity securities is estimated using quoted prices of securities with similar characteristics and therefore are classified within level 2 of the valuation hierarchy.

Collateral dependent loans – Loans which the Company has measured credit loss generally based on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third-party appraisals of the properties, or discounted cash flows based upon the expected proceeds. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements.

Other Real Estate Owned – Other real estate owned assets are adjusted to fair value less estimated selling costs upon transfer of the loans to other real estate owned. Typically, an external, third-party appraisal is performed on the collateral upon transfer into the other real estate owned account to determine the asset’s fair value. Subsequent adjustments to the collateral’s value may be based upon either updated third-party appraisals or management’s knowledge of the collateral and the current real estate market conditions. Appraised amounts used in determining the asset’s fair value, whether internally or externally prepared, are discounted 10% to account for selling and marketing costs. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are typically significant and result in a level 3 classification of the inputs for determining fair value. Because of the high degree of judgment required in estimating the fair value of other real estate owned assets and because of the relationship between fair value and general economic conditions, we consider the fair value of other real estate owned assets to be highly sensitive to changes in market conditions.

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COLONY BANKCORP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis – The following tables present the recorded amount of the Company’s assets and liabilities measured at fair value on a recurring and nonrecurring basis as of March 31, 2026 and December 31, 2025, aggregated by the level in the fair value hierarchy within which those measurements fall. The tables below include collateral dependent impaired loans and other real estate properties at March 31, 2026 and December 31, 2025. Those collateral dependent impaired loans and other real estate properties are shown net of the related specific reserves and valuation allowances.


					Fair Value Measurements at Reporting Date Using
		Total Fair
(dollars in thousands)		Value			(Level 1)			(Level 2)			(Level 3)
March 31, 2026
Recurring
Investment securities available-for-sale
U.S. treasury securities		$	4,799		$	—		$	4,799		$	—
U.S. agency securities			3,065			—			3,065			—
Asset backed securities			13,862			—			13,862			—
State, county & municipal securities			106,629			—			106,629			—
Corporate debt securities			44,090			—			37,366			6,724
Mortgage-backed securities			202,895			—			202,895			—
Total investment securities available-for-sale			375,340			—			368,616			6,724
Loans held for sale			16,536			—			16,536			—
Derivative assets			29						29
Total recurring assets		$	391,905		$	—		$	385,181		$	6,724

Derivative liabilities		$	150		$	—		$	150		$	—
Total recurring liabilities		$	150		$	—		$	150		$	—

Nonrecurring
Collateral dependent loans		$	9,170		$	—		$	—		$	9,170
Other real estate owned			1,873			—			—			1,873
Total nonrecurring assets		$	11,043		$	—		$	—		$	11,043

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COLONY BANKCORP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)


					Fair Value Measurements at Reporting Date Using
		Total Fair
(dollars in thousands)		Value			(Level 1)			(Level 2)			(Level 3)
December 31, 2025
Recurring
Investment securities available-for-sale
U.S. treasury securities		$	5,582		$	—		$	5,582		$	—
U.S. agency securities			3,196			—			3,196			—
Asset backed securities			14,483			—			14,483			—
State, county & municipal securities			107,230			—			107,230			—
Corporate debt securities			48,807			—			42,292			6,515
Mortgage-backed securities			204,519			—			204,519			—
Total investment securities available-for-sale			383,817			—			377,302			6,515
Loans held for sale			78,990			—			78,990			—
Derivative assets			—			—			—			—
Total recurring assets		$	462,807		$	—		$	456,292		$	6,515

Derivative liabilities		$	636		$	—		$	636		$	—
Total recurring liabilities		$	636		$	—		$	636		$	—

Nonrecurring
Collateral dependent loans		$	7,194		$	—		$	—		$	7,194
Other real estate owned			1,048			—			—			1,048
Total nonrecurring assets		$	8,242		$	—		$	—		$	8,242

Fair Value Measurements Using Significant Unobservable Inputs (Level 3)

The following table presents quantitative information about the significant unobservable inputs used in the fair value measurements for assets in level 3 of the fair value hierarchy measured on a nonrecurring basis at March 31, 2026 and December 31, 2025. This table is comprised of collateral dependent impaired loans and other real estate owned:


		March 31,			Valuation		Unobservable		Discount
(dollars in thousands)	* *	2026			Techniques		Inputs		rate
Collateral dependent loans		$	9,170		Appraised Value		Discounts to reflect estimated costs to sell		10	%
Other real estate owned			1,873		Appraised Value/Comparable Sales		Discounts to reflect current market conditions and estimated costs to sell		10	%


	December 31,			Valuation		Unobservable		Discount
(dollars in thousands)	2025			Techniques		Inputs		rate
Collateral dependent loans	$	7,194		Appraised Value		Discounts to reflect estimated costs to sell		10	%
Other real estate owned		1,048		Appraised Value/Comparable Sales		Discounts to reflect current market conditions and estimated costs to sell		10	%

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COLONY BANKCORP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

The following table presents quantitative information about recurring level 3 fair value measurements as of March 31, 2026 and December 31, 2025.


		As of March 31, 2026
					Valuation		Unobservable		Range
(dollars in thousands)	* *	Fair Value			Techniques		Inputs		(Weighted Avg)
Available-for-sale securities		$	6,724		Discounted Cash Flow		Discount Rate or Yield		N/A


		As of December 31, 2025
					Valuation		Unobservable		Range
(dollars in thousands)	* *	Fair Value			Techniques		Inputs		(Weighted Avg)
Available-for-sale securities		$	6,515		Discounted Cash Flow		Discount Rate or Yield		N/A

The table below presents a reconciliation and statement of income classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (level 3) for the three months ended March 31, 2026 and March 31, 2025.


	Available-for-sale securities
	Three Months Ended		Three Months Ended
(dollars in thousands)	March 31, 2026		March 31, 2025
Balance, Beginning	$	6,515	$	8,921
Additions/Accretion		9		—
Redemptions/Payments		—		(15)
Fair value adjustments		200		202
Balance, Ending	$	6,724	$	9,108

The Company’s policy is to recognize transfers in and transfers out of levels 1, 2 and 3 as of the end of a reporting period. There were no transfers between levels for the three months ended March 31, 2026 and March 31, 2025.

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COLONY BANKCORP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

(10) Segment Information

ASC Topic 820 - Segment Reporting identifies operating segments as components of an enterprise which are evaluated regularly by the Company’s Chief Operating Decision Maker, our Chief Executive Officer, in deciding how to allocate resources and assess performance. The Company has applied the aggregation criterion set forth in this codification to the results of its operations. The Company’s operating segments include banking, mortgage banking and small business specialty lending division. The reportable segments are determined by the products and services offered, and internal reporting. The Bank segment derives its revenues from the delivery of full-service financial services, including retail and commercial banking services and deposit accounts. The Mortgage Banking segment derives its revenues from the origination and sales of residential mortgage loans held for sale. The Small Business Specialty Lending Division segment derives its revenue from the origination, sales and servicing of Small Business Administration loans and other government guaranteed loans. Segment performance is evaluated using net interest income and noninterest income. Income taxes are assessed based on income before income taxes, and indirect expenses (including management fees) are allocated based on various internal factors for each segment. Transactions among segments are made at fair value. The following tables present information reported internally for performance assessment for the three months ended March 31, 2026 and 2025:


								Small
								Business
								Specialty
					Mortgage			Lending
(dollars in thousands)		Bank			Banking			Division			Totals
Three Months Ended March 31, 2026
Net Interest Income		$	28,223		$	38		$	942		$	29,203
Provision for Credit Losses			780			—			970			1,750
Net Interest Income after Provision for Credit Losses			27,443			38			(28)			27,453
Mortgage Fee Income			49			1,886			—			1,935
Gain on Sales of SBA Loans			—			—			962			962
Other			7,082	⁽¹⁾		—			713	⁽²⁾		7,795
Total Noninterest Income			7,131			1,886			1,675			10,692
Salaries and Employee Benefits			12,743			1,804			1,376			15,923
Other ⁽³⁾			11,677			(102)			176			11,751
Total Noninterest Expense			24,420			1,702			1,552			27,674
Income Taxes			2,194			52			21			2,267
Net Income		$	7,960		$	170		$	74		$	8,204

Total Assets March 31, 2026		$	3,619,249		$	12,036		$	89,328		$	3,720,613

Full Time Employees March 31, 2026			426			48			32			506

(1)	Includes service charges on deposits, interchange fees, BOLI income, insurance commissions and other noninterest income.

(2)	Represents SBA loan related fee income.

(3)	Includes occupancy and equipment, acquisition related expenses, information technology expenses, professional fees, advertising and public relations, communications and other noninterest expenses.

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COLONY BANKCORP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)


								Small
								Business
								Specialty
					Mortgage			Lending
(dollars in thousands)		Bank			Banking			Division			Totals
Three Months Ended March 31, 2025
Net Interest Income		$	19,989		$	53		$	910		$	20,952
Provision for Credit Losses			1,221			—			279			1,500
Net Interest Income after Provision for Credit Losses			18,768			53			631			19,452
Mortgage Fee Income			—			1,579			—			1,579
Gain on Sales of SBA Loans			—			—			1,035			1,035
Other			5,774	⁽¹⁾		—			656	⁽²⁾		6,430
Total Noninterest Income			5,774			1,579			1,691			9,044
Salaries and Employee Benefits			8,887			1,455			1,563			11,905
Other ⁽³⁾			7,903			146			267			8,316
Total Noninterest Expense			16,790			1,601			1,830			20,221
Income Taxes			1,551			10			101			1,662
Net Income		$	6,201		$	21		$	391		$	6,613

Total Assets March 31, 2025		$	3,065,385		$	16,041		$	90,399		$	3,171,825

Full Time Employees March 31, 2025			366			42			35			443

(1)	Includes service charges on deposits, interchange fees, BOLI income, insurance commissions and other noninterest income.

(2)	Represents SBA loan related fee income.

(3)	Includes occupancy and equipment, information technology expenses, professional fees, advertising and public relations, communications and other noninterest expenses.

(11) Regulatory Capital Matters

The amount of dividends payable to the parent company from the subsidiary bank is limited by various banking regulatory agencies. Upon approval by regulatory authorities, the Bank may pay cash dividends to the parent company in excess of regulatory limitations.

As of March 31, 2026, the Company and the Bank were categorized as well-capitalized under the regulatory framework for prompt corrective action in effect at such time. To be categorized as well-capitalized, the Company and the Bank must have exceeded the well-capitalized guideline ratios in effect at the time, as set forth in the tables below, and have met certain other requirements. Management believes that the Company and the Bank exceeded all well-capitalized requirements at March 31, 2026, and there have been no conditions or events since quarter-end that would change the status of well-capitalized.

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COLONY BANKCORP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

The following tables summarize regulatory capital information as of March 31, 2026 and December 31, 2025 on a consolidated basis and for the subsidiary, as defined. Regulatory capital ratios for March 31, 2026 and December 31, 2025 were calculated in accordance with the Basel III rules.


												To Be Well
												Capitalized Under
							For Capital					Prompt Corrective
		Actual					Adequacy Purposes					Action Provisions
(dollars in thousands)		Amount			Ratio		Amount			Ratio		Amount			Ratio
As of March 31, 2026
Total Capital to Risk-Weighted Assets
Consolidated		$	420,678		15.75	%	$	213,678		8.00	%	$	267,097		10.00	%
Colony Bank			384,414		14.45			212,824		8.00			266,030		10.00

Tier 1 Capital to Risk-Weighted Assets
Consolidated			358,846		13.44			160,199		6.00			213,599		8.00
Colony Bank			361,509		13.59			159,607		6.00			212,809		8.00

Common Equity Tier 1 Capital to Risk-Weighted Assets
Consolidated			334,617		12.53			120,174		4.50			173,584		6.50
Colony Bank			361,509		13.59			119,705		4.50			172,907		6.50

Tier 1 Capital to Average Assets
Consolidated			358,846		9.84			145,872		4.00			182,340		5.00
Colony Bank			361,509		9.95			145,330		4.00			181,663		5.00


												To Be Well
												Capitalized Under
							For Capital					Prompt Corrective
		Actual					Adequacy Purposes					Action Provisions
(dollars in thousands)		Amount			Ratio		Amount			Ratio		Amount			Ratio
As of December 31, 2025
Total Capital to Risk-Weighted Assets
Consolidated		$	418,386		15.95	%	$	209,849		8.00	%	$	262,311		10.00	%
Colony Bank			378,421		14.48			209,072		8.00			261,340		10.00

Tier 1 Capital to Risk-Weighted Assets
Consolidated			356,702		13.60			157,369		6.00			209,825		8.00
Colony Bank			355,640		13.61			156,785		6.00			209,046		8.00

Common Equity Tier 1 Capital to Risk-Weighted Assets
Consolidated			332,473		12.67			118,084		4.50			170,566		6.50
Colony Bank			355,640		13.61			117,589		4.50			169,850		6.50

Tier 1 Capital to Average Assets
Consolidated			356,702		10.78			132,357		4.00			165,446		5.00
Colony Bank			355,640		10.78			131,963		4.00			164,954		5.00

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COLONY BANKCORP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

(12) Subsequent Events

Dividend

On April 22, 2026, the Board of Directors declared a quarterly cash dividend of $0.12 per share, to be paid on its common stock on May 20, 2026, to shareholders of record as of the close of business on May 6, 2026.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The purpose of this discussion and analysis is to focus on significant changes in the financial condition of Colony Bankcorp, Inc. and our wholly owned subsidiary, Colony Bank, from December 31, 2025 through March 31, 2026 and on our results of operations for the three months ended March 31, 2026 and 2025. This discussion and analysis should be read in conjunction with our audited consolidated financial statements and notes thereto in the Company’s 2025 Form 10-K, and information presented elsewhere in this Quarterly Report on Form 10-Q, particularly the unaudited consolidated financial statements and related notes appearing in Item 1.

Forward-looking Statements

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, but not always, made through the use of words or phrases such as “may,” “might,” “should,” “could,” “predict,” “potential,” “believe,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “strive,” “projection,” “goal,” “target,” “outlook,” “aim,” “would,” “annualized” and “outlook,” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are not historical facts, and are based on current expectations, estimates and projections about our industry, management’s beliefs and certain assumptions made by management, many of which, by their nature, are inherently uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward-looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements.

A number of important factors could cause our actual results to differ materially from those indicated in these forward-looking statements, including those factors discussed elsewhere in this Quarterly Report on Form 10-Q and the following:

●

the impact of current and future economic and market conditions generally (including seasonality) and in the financial services industry, nationally and within the Company’s primary market areas, including the effects of continued inflationary pressures, changes in interest rates, tariffs or trade wars (including reduced consumer spending, supply chain issues, and adverse impacts to credit quality), a sustained increase in commodity prices, slowdowns in economic growth or recession, and the potential for high unemployment rates, as well as the financial stress on borrowers and changes to customer and client behavior and credit risk as a result of the foregoing;

●

the potential adverse developments in the banking industry highlighted by high-profile bank failures and the impact of such developments on customer confidence, liquidity and regulatory responses to these developments (including increases in the cost of our deposit insurance assessments and the increased regulatory scrutiny), our ability to effectively manage our liquidity risk and any growth plans and the availability of capital and funding;

●

governmental monetary and fiscal policies, including interest rate policies of the FRB, as well as risks related to legislative, tax and regulatory change, including those that impact the value of the U.S. Dollar in relation to the currencies of other advanced and emerging market countries, the money supply and inflation;

●

the risk of continued changes in interest rates on the level and composition of deposits (as well as the cost of, and competition for, deposits), loan demand, liquidity and the values of loan collateral, securities and market fluctuations, and interest rate sensitive assets and liabilities;

●

interest rate risks (including the impact of interest rates on macroeconomic conditions, customer and client behavior, and on our net interest income), sensitivities, and the shape of the yield curve, and its impact on our financial projections and models;

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●

prolonged periods of inflation and their effects on our business, profitability, and our stock price;

●

changes in borrower credit risks and payment behaviors, including the ability for borrowers under deferred payment programs to return to making full payments;

●

changes in the availability and cost of credit and capital in the financial markets;

●

changes in the prices, values and sales volumes of residential and commercial real estate, especially as they relate to the value of collateral supporting the Company’s loans;

●

the concentration of our business within our geographic areas of operation in Georgia, Alabama, Florida and neighboring markets;

●

the credit risks of lending activities, including our ability to estimate credit losses and the allowance for credit losses, as well as the effects of changes in the level of, and trends in, loan delinquencies and write-offs;

●

the risk that our asset quality may deteriorate or that our allowance for credit losses may prove to be inadequate or may be negatively affected by credit risk exposures;

●

factors that negatively impact our mortgage banking services, including declines in our mortgage originations or profitability due to rising or elevated interest rates and increased competition and regulation, the Bank’s or third party’s failure to satisfy mortgage servicing obligations, loan modifications, the effects of judicial or regulatory requirements or guidance, and the possibility of the Bank being required to repurchase mortgage loans or indemnify buyers;

●

the effects of competition (including the inability to grow, or attrition of, deposits, customers and employees) from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, non-bank financial technology providers, securities brokerage firms, insurance companies, private credit funds, money market and other mutual funds and other financial institutions;

●

our ability to realize the expected benefits from our strategic initiatives or other operational and executive goals in the time period expected, which could negatively affect our future profitability;

●

risks relating to bank acquisitions, including the recent acquisition of TC Bancshares, Inc. (“TC Bancshares”), including, without limitation; the diversion of management’s time on issues related to the integration; unexpected transaction costs, including the costs of integrating operations; the risks that the businesses will not be integrated successfully or that such integration may be more difficult, time-consuming or costly than expected; the potential failure to fully or timely realize expected revenues and revenue synergies, including as the result of revenues following acquisitions being lower than expected; the risk of deposit and customer attrition; regulatory enforcement and litigation risk; any changes in deposit mix; unexpected operating and other costs, which may differ or change from expectations; the risks of customer and employee loss and business disruptions, including, without limitation, as the result of difficulties in maintaining relationships with employees; increased competitive pressures and solicitations of customers by competitors; as well as the difficulties and risks inherent with entering new markets;

●

the risk that we may not be able to identify suitable bank and non-bank acquisition opportunities as part of our growth strategy and even if we are able to identify attractive acquisition opportunities, we may not be able to complete such transactions on favorable terms or realize the anticipated benefits from such acquisitions;

●

the Company’s ability to comply with any regulatory requirements and the risk that the regulatory environment may not be conducive to or may prohibit or delay the consummation of future mergers and/or business combinations, may increase the length of time and amount of resources required to consummate such transactions, and may reduce the anticipated benefit;

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●

risks related to our implementation of new lines of business, new products and services, new technologies, and expansion of our existing business opportunities;

●

our ability to attract and maintain business banking relationships with well-qualified businesses, real estate developers and investors with proven track records in our market areas;

●

our ability to attract sufficient loans that meet prudent credit standards;

●

our ability to successfully execute our business strategy to achieve profitable growth;

●

our ability to manage our growth;

●

our ability to increase our operating efficiency;

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the impact on the valuation of the Company’s investments due to market volatility or counterparty payment risk, as well as the effect of a decline in stock market prices;

●

inability of the risk management framework to manage risks associated with our business;

●

our ability to maintain expenses in line with current projections;

●

statutory and regulatory dividend restrictions;

●

our ability to comply with applicable capital and liquidity requirements, including our ability to generate liquidity internally or raise capital on favorable terms, including continued access to the debt and equity capital markets;

●

restrictions or limitations on access to funds from historical and alternative sources of liquidity could adversely affect our overall liquidity, which could restrict our ability to make payments on our obligations and our ability to support asset growth and sustain our operations and the operations of the Bank;

●

our ability to maintain adequate internal controls over financial reporting;

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our dependence on our management team and our ability to motivate and retain our management team;

●

our ability to attract and retain qualified employees;

●

our ability to identify and address potential cybersecurity risks, which may be exacerbated by recent developments in generative artificial intelligence, including brute force attacks (i.e., credential stuffing), ransomware or other malware, “denial-of-service” attacks, “hacking” and identity theft, a failure of which could disrupt our business and result in the disclosure of and/or misuse or misappropriation of confidential or proprietary information, disruption or damage to our systems, increased costs, losses, or adverse effects to our reputation;

●

our business relationships with, and reliance upon, third parties that have strategic partnerships with us or that provide key components of our business infrastructure, including the costs of services and products provided to us by third parties, and disruptions in service, security breaches, financial difficulties with or other adverse events affecting a third-party vendor or business relationship;

●

our ability to oversee the performance of third-party service providers that provide material services to our business;

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failure to keep pace with technological change or difficulties when implementing new technologies;

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changes in technology or products that may be more difficult, costly, or less effective than anticipated;

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fraudulent and negligent acts by our clients, employees or vendors, which we may not be able to prevent, detect or mitigate;

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increased credit losses or impairment of goodwill and other intangibles;

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potential or actual claims, damages, penalties, fines, costs, unexpected outcomes, and reputational damage resulting from new, existing, pending, or future litigation, regulatory proceedings and enforcement actions;

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negative publicity and the impact on our reputation; including the speed and scale at which information can spread through social media or digital channels, which could amplify adverse market or customer reactions;

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changes in accounting policies, rules and practices;

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the impact of recent and future legislative and regulatory changes;

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uncertainties surrounding geopolitical events, trade policy, taxation policy, and monetary policy, which continue to impact the outlook for future economic growth, including the U.S. continuing to impose tariffs and consideration of responsive actions by the impacted nations and/or the expansion of import fees and tariffs among a larger group of nations, which may bring greater ambiguity to the outlook for future economic growth;

●

the effects of war, regime change, civil unrest, or other conflicts, acts of terrorism, natural disasters, health emergencies, epidemics or pandemics, or other catastrophic events that may affect general economic conditions and/or increase costs;

●

risks related to the development and execution of corporate strategies and initiatives, which could impact the Company’s reputation, stakeholder relationships, or expose the Company to legal, regulatory, or compliance challenges;

●

action or inaction by the federal government, including as a result of any prolonged government shutdown (including a partial shutdown) or government intervention in the U.S. financial system and those related to credit card interest rates;

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a deterioration of the credit rating for U.S. long-term sovereign debt, actions that the U.S. government may take to avoid exceeding the debt ceiling, and uncertainties surrounding the debt ceiling and the federal budget; and

●

other risks and factors identified in our 2025 Form 10-K, this Quarterly Report on Form 10-Q for the period ended March 31, 2026, and in any of the Company’s other reports filed with the U.S. Securities and Exchange Commission and available on its website at www.sec.gov.

The foregoing factors should not be construed as exhaustive and should be read together with the other cautionary statements included in this Quarterly Report on Form 10-Q. Because of these risks and other uncertainties, our actual future results, performance or achievement, or industry results, may be materially different from the results indicated by the forward-looking statements in this Quarterly Report on Form 10-Q. In addition, our past results of operations are not necessarily indicative of our future results. You should not rely on any forward-Oklooking statements, which represent our beliefs, assumptions and estimates only as of the dates on which they were made, as predictions of future events. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

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Overview

The following discussion and analysis presents the more significant factors affecting the Company’s financial condition as of March 31, 2026 and December 31, 2025, and results of operations for the three month periods ended March 31, 2026 and 2025. This discussion and analysis should be read in conjunction with the Company’s consolidated financial statements, notes thereto and other financial information appearing elsewhere in this report.

At March 31, 2026, the Company had total consolidated assets of $3.7 billion, total loans, net of $2.4 billion, total deposits of $3.0 billion, and stockholders’ equity of $380.4 million. The Company reported net income of $8.2 million, or $0.39 per diluted share, for the three months ended March 31, 2026 compared to net income of $6.6 million, or $0.38 per diluted share, for the three months ended March 31, 2025. The increase in net income for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 was a result of an increase in interest income on loans and an increase in noninterest income, partially offset by an increase in interest expense and an increase in noninterest expense as well as the impact from the acquisition of TC Bancshares in December 2025.

Net interest income on a tax equivalent basis was $29.3 million for the first quarter of 2026 compared to $21.1 million for the first quarter of 2025, an increase of $8.2 million. This increase is the result of an increase in income on interest earning assets slightly offset with an increase in expense on interest bearing liabilities. Income on interest earning assets increased $9.3 million to $45.0 million for the first quarter of 2026 compared to the respective period in 2025. Expense on interest bearing liabilities increased $1.1 million to $15.7 million for the first quarter of 2026 compared to the respective period in 2025.

Provision for credit losses for the three months ended March 31, 2026 was $1.75 million, which represents $1.5 million in provision for credit losses on loans and $250,000 in provision for credit losses on unfunded commitments. This is compared to $1.5 million for the three months ended March 31, 2025, which represents $1.6 million in provision for credit losses on loans and $123,000 in release of credit losses on unfunded commitments. For the first quarter of 2026, there were net charge-offs of $1.7 million compared to $606,000 for the same period in 2025. Colony’s allowance for credit losses on loans was $21.7 million, or 0.90% of total loans at March 31, 2026, compared to $23.0 million, or 1.04% of total loans, at December 31, 2025. The increase in net charge-offs was primarily due to SBA loans in the Small Business Specialty Lending (“ SBSL”) portfolio as well as increases in commercial, financial & agricultural and consumer loans. At March 31, 2026 and December 31, 2025, nonperforming assets were $19.9 million and $24.7 million, or 0.53% and 0.66% of total assets, respectively.

Noninterest income of $10.7 million for the first quarter of 2026 represents an increase of $1.7 million, or 18.5%, from the first quarter of 2025. These increases are a result of increases in service charges on deposits, mortgage fee income, insurance commissions, interchange fees, and income from Colony Financial Advisors, which is included in other noninterest income. See “Table 3 - Noninterest Income” for more detail and discussion on the primary drivers to the increase in noninterest income.

For the three months ended March 31, 2026, noninterest expense was $27.7 million, an increase of $7.5 million, or 36.9%, from the same period in 2025. Increases in noninterest expense for both periods were a result of increases in salaries and employee benefits, occupancy and equipment, acquisition related expenses, information technology expenses, professional fees and other noninterest expenses. See “Table 4 - Noninterest Expense” for more detail and discussion on the primary drivers to the increase in noninterest expense.

Critical Accounting Policies

Our accounting and reporting policies are in accordance with GAAP and conform to general practices within the banking industry. We have identified certain of its accounting policies as “critical accounting policies,” consisting of those related to business combinations, allowance for credit losses and income taxes. In determining which accounting policies are critical in nature, we have identified the policies that require significant judgment or involve complex estimates. It is management’s practice to discuss critical accounting policies with the Board of Directors’ Audit Committee on a periodic basis, including the development, selection, implementation and disclosure of the critical accounting policies. The application of these policies has a significant impact on the Company’s unaudited interim consolidated financial

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statements. Our financial results could differ significantly if different judgments or estimates are used in the application of these policies. All accounting policies described in Note 1 of our consolidated financial statements as of December 31, 2025, which are included in the Company’s 2025 Form 10-K should be reviewed for a greater understanding of how we record and report our financial performance. Other than our methodology for estimating allowance for credit losses (mentioned below), there have been no significant changes to the Significant Accounting Policies as described in Note 1 of the Notes to Consolidated Financial Statements for the year ended December 31, 2025, which are included in the Company’s 2025 Form 10-K.

Allowance for Credit Losses

A consequence of lending activities is that we may incur credit losses. The amount of such losses will vary depending upon the risk characteristics of the loan lease portfolio as affected by economic conditions such as rising interest rates and the financial performance of borrower.

The estimate of expected credit losses under the CECL approach is based on relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amounts. Historical loss experience is generally the starting point for estimating expected credit losses. We then consider whether the historical loss experience should be adjusted for asset-specific risk characteristics or current conditions at the reporting date that did not exist over the period from which historical experience was used. Finally, we consider forecasts about future economic conditions that are reasonable and supportable. The allowance for unfunded commitments represents the expected credit losses on off-balance sheet commitments such as unfunded commitments to extend credit. This allowance is estimated by loan segment at each balance sheet date under the CECL model using the same methodologies as portfolio loans, taking into consideration the likelihood that funding will occur.

Management’s evaluation of the appropriateness of the reserve for credit losses is often the most critical of accounting estimates for a financial institution. Our determination of the amount of the reserve for credit losses is a critical accounting estimate as it requires significant reliance on the credit risk rating we assign to individual borrowers, the use of estimates and significant judgment as to the amount and timing of expected future cash flows, reliance on historical loss rates on homogenous portfolios, consideration of our quantitative and qualitative evaluation of economic factors, and the reliance on our reasonable and supportable forecasts. The reserve for credit losses attributable to each portfolio segment also includes an amount for inherent risks not reflected in the historical analyses. Relevant factors include, but are not limited to, concentrations of credit risk (geographic, large borrower, and industry), local/regional economic trends and conditions, changes in underwriting standards, changes in collateral values, experience and depth of lending staff, trends in delinquencies, and the volume and terms of loans.

Liquidity sources and capital ratios

The Company’s uninsured deposits represented 32.21% of total Bank deposits at March 31, 2026 compared to 31.65% of total Bank deposits at December 31, 2025. Adjusted uninsured deposits (which excludes deposits collateralized by public funds and internal accounts) represented 20.35% of total Bank deposits at March 31, 2026 compared to 18.62% of total Bank deposits at December 31, 2025. The Company continues to maintain strong liquidity with available sources of funding of approximately $1.9 billion at March 31, 2026. Furthermore, the Company’s capital remains strong with common equity Tier 1 and total capital ratios of 12.5% and 15.8%, respectively, as of March 31, 2026.

Results of Operations

We reported net income and diluted earnings per share of $8.2 million and $0.39, respectively, for the first quarter of 2026. This compares to net income and diluted earnings per share of $6.6 million and $0.38, respectively, for the same period in 2025.

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Net Interest Income

Net interest income, which is the difference between interest earned on assets and the interest paid on deposits and borrowed funds, is the single largest component of total revenue. Management strives to optimize this income while balancing interest rate, credit and liquidity risks.

The banking industry uses two key ratios to measure relative profitability of net interest income: net interest spread and net interest margin. The net interest spread measures the difference between the average yield on interest-earning assets and the average rate paid on interest-bearing liabilities. The interest rate spread eliminates the effect of noninterest-bearing deposits and gives a direct perspective on the effect of market interest rate movements. The net interest margin is an indication of the profitability of a company’s balance sheet and is defined as net interest income as a percent of average total interest-earning assets, which includes the positive effect of funding a portion of interest-earning assets with noninterest-bearing deposits and stockholders’ equity.

Fully taxable equivalent net interest income for the first quarter of 2026 and 2025 was $29.4 million and $21.1 million, respectively. This increase period over period can be seen in increases in rates and volume on loans as well as a decrease in rates paid on deposits and other borrowings. The net interest margin for the first quarter of 2026 and 2025 was 3.48% and 2.93%, respectively. This increase in the net interest margin for the first quarter of 2026 compared to the same period in 2025 is the result of a combination of increased earnings asset yields through loan growth, repricing, and accretion income on acquired loans which was partially accelerated due to prepayments of acquired loans during the quarter. Additionally, a reduction in the overall cost of funds contributed to the increase in net interest margin when compared to the same period in 2025.

The following tables indicate the relationship between interest income and interest expense and the average amounts of assets and liabilities for the periods indicated. As shown in the tables below, both average assets and average liabilities increased for the three months ended March 31, 2026 compared to the same period in 2025. The increase in average assets was driven by the increase in loans of $530.5 million and deposits in banks of $10.5 million, which was partially offset by decreases in investment securities of $41.3 million. The increase in average assets was also attributable to the TC Bancshares acquisition. The increase in average liabilities of $396.8 million was primarily attributed to the TC Bancshares acquisition. The net interest spread, as well as the net interest margin, will continue to be impacted by future changes in short-term and long-term interest rate levels, as well as the impact from the competitive environment.

The yield on total interest-bearing liabilities decreased from 2.46% in the first quarter of 2025 to 2.28% in the first quarter of 2026. This decrease was primarily due to decreases in the federal funds interest rate of 75 basis points during the fourth quarter of 2025, along with the addition of deposits from the TC Bancshares merger in December 2025.

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Table 1 - Average Balance Sheet and Net Interest Analysis


		Three Months Ended March 31,
		2026								2025
		Average			Income/			Yields/		Average		Income/			Yields/
(dollars in thousands)		Balances			Expense			Rates		Balances		Expense			Rates
Assets
Interest-earning assets:
Loans held for sale		$	21,863		$	454		8.42	%	$	23,253	$	328		5.73	%
Loans, net of unearned income⁽¹⁾			2,399,971			37,568		6.35			1,869,476		27,716		6.01
Investment securities, taxable			668,824			4,537		2.75			710,293		4,837		2.76
Investment securities, tax-exempt⁽²⁾			94,588			489		2.10			94,379		494		2.12
Deposits in banks and short term investments			240,446			1,993		3.36			229,016		2,322		4.11
Total interest-earning assets			3,425,692			45,041		5.33	%		2,926,417		35,697		4.95	%
Noninterest-earning assets			272,971								222,904
Total assets		$	3,698,663							$	3,149,321
Liabilities and stockholders' equity
Interest-bearing liabilities:
Interest-earning demand and savings		$	1,725,632			5,951		1.40	%	$	1,549,509		6,468		1.69	%
Other time			812,531			6,863		3.43			601,920		5,305		3.57
Total interest-bearing deposits			2,538,163			12,814		2.05			2,151,429		11,773		2.22
Federal Home Loan Bank advances			195,000			1,985		4.13			185,000		1,873		4.10
Other borrowings			63,141			888		5.71			63,048		927		5.97
Total other interest-bearing liabilities			258,141			2,873		4.51			248,048		2,800		4.58
Total interest-bearing liabilities			2,796,304			15,687		2.28	%		2,399,477		14,573		2.46	%
Noninterest-bearing liabilities:
Demand deposits			487,298								455,277
Other liabilities			35,479								16,016
Stockholders' equity			379,582								278,551
Total noninterest-bearing liabilities and stockholders' equity			902,359								749,844
Total liabilities and stockholders' equity		$	3,698,663							$	3,149,321
Interest rate spread								3.05	%						2.49	%
Net interest income					$	29,354						$	21,124
Net interest margin								3.48	%						2.93	%

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 $48,000 and $68,000 for the three months ended March 31, 2026 and 2025, respectively, are calculated using the statutory federal tax rate and are included in income and fees on loans. Accretion income of $1.3 million and $20,000 for the three months ended March 31, 2026 and 2025, respectively, are also included in income and fees on loans.

2.	Taxable-equivalent adjustments totaling $103,000 and $104,000 for the three months ended March 31, 2026 and 2025, respectively, are calculated using the statutory federal tax rate and are included in tax-exempt interest on investment securities.

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Table 2 - Change in Interest Revenue and Expense on a Taxable Equivalent Basis


		Three Months Ended March 31, 2026
		Compared to Three Months Ended March 31, 2025 Increase (Decrease) Due to Changes in
(dollars in thousands)		Volume			Rate			Total
Interest-earning assets:
Loans held for sale		$	(2,713)		$	2,839		$	126
Loans, net of unearned fees			3,882			5,970			9,852
Investment securities, taxable			(258)			(42)			(300)
Investment securities, tax-exempt			376			(381)			(5)
Deposits in banks and short term investments			21,478			(21,807)			(329)
Total interest-earning assets (FTE)			22,765			(13,421)			9,344
Interest-bearing liabilities:
Interest-Bearing Demand and Savings Deposits			260,414			(260,931)			(517)
Time Deposits			148,733			(147,175)			1,558
Federal Home Loan Bank Advances			71			41			112
Other Borrowed Money			185			(224)			(39)
Total interest-bearing liabilities			409,403			(408,289)			1,114
Increase (decrease) in net interest income (FTE)		$	(386,638)		$	394,868		$	8,230

Provision for Credit Losses

The provision for credit losses recorded in each period is based on the amount required such that the total allowance for credit losses reflects 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. Provision for credit losses for the three months ended March 31, 2026 was $1.75 million, compared to $1.5 million for the same period in 2025. The provision for credit losses for the three months ended March 31, 2026 includes $1.5 million in credit losses on loans and $250,000 in credit losses on unfunded commitments. The provision for credit losses for the three months ended March 31, 2025 includes $1.6 million in credit losses on loans and $123,000 in release of credit losses on unfunded commitments. See the section captioned “Loans and Allowance for Credit Losses” elsewhere in this discussion for further analysis of the provision for credit losses.

Noninterest Income

The following table represents the major components of noninterest income for the periods indicated.

Table 3 - Noninterest Income


		Three Months Ended March 31,						Change
(dollars in thousands)		2026			2025			Amount			Percent
Service charges on deposits		$	2,561		$	2,172		$	389		17.90	%
Mortgage fee income			1,935			1,579			356		22.56
Gain on sales of SBA loans			962			1,035			(73)		(7.01)
Other SBA income			714			656			58		8.79
Interchange fees			2,186			1,938			248		12.80
BOLI income			477			396			81		20.52
Insurance commissions			844			469			375		80.00
Other			1,013			799			214		26.84
Total noninterest income		$	10,692		$	9,044		$	1,648		18.22	%

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Noninterest income increased for the three month period ended March 31, 2026 as compared to the same period in 2025. The increase was primarily a result of increases in service charges on deposits, mortgage fee income, insurance commissions, interchange fees and other noninterest income partially offset by a decrease in gain on sales of SBA loans.

Service charges on deposits. For the three months ended March 31, 2026, service charges on deposits increased compared to the same period ended March 31, 2025. This increase was related to increases in deposit account fees implemented during the last half of 2025 as well as the impact of the TC Bancshares acquisition.

Mortgage Fee Income. For the three months ended March 31, 2026, mortgage fee income increased compared to the same period ended March 31, 2025. This increase in mortgage fee income was the result of higher mortgage production in first quarter of 2026 compared to the prior respective period in 2025.

Gain on sales of SBA loans. For the three months ended March 31, 2026, net realized gains on the sale of the guaranteed portion of SBA loans decreased as compared to the same period ended March 31, 2025. This decrease was related to decreased loan production and sales in first quarter of 2026 in the SBSL division.

Other SBA income. For the three months ended March 31, 2026, other SBA income increased slightly as compared to the same period ended March 31, 2025, primarily related to an increase in servicing fee income.

BOLI income. For the three months ended March 31, 2026, BOLI income was slightly higher when compared to the same period ended March 31, 2025 due to normal fluctuations in cash surrender value as well as the addition of BOLI polices from the TC Bancshares acquisition.

Interchange fees. For the three months ended March 31, 2026, interchange fee income was slightly higher than the same period ended March 31, 2025. This increase in interchange fees is the result of customer use of our card programs and fluctuating purchasing habits between periods.

Insurance commissions. For the three months ended March 31, 2026, insurance commissions increased compared to the same periods ended March 31, 2025. This variance is volume driven by activity in the Company’s insurance division and was also impacted by the acquisition of the Ellerbee Insurance Agency in the second quarter of 2025.

Other noninterest income. For the three months ended March 31, 2026, other noninterest income increased as compared to the same period ended March 31, 2025. The increase in other noninterest income was primarily attributable to increases in wealth advisory and merchant services, and increases in gains on sales of other real estate and fixed assets along with decreased losses on repossessed assets, offset by a decrease in equity investment market valuation gains.

Noninterest Expense

The following table represents the major components of noninterest expense for the periods indicated.

Table 4 - Noninterest Expense


		Three Months Ended March 31,						Change
(dollars in thousands)		2026			2025			Amount			Percent
Salaries and employee benefits		$	15,923		$	11,905		$	4,018		33.75	%
Occupancy and equipment			1,957			1,580			377		23.88
Acquisition related expenses			1,637			—			1,637		100.00
Information technology expenses			2,774			2,477			297		11.97
Professional fees			1,120			748			372		49.75
Advertising and public relations			1,106			805			301		37.38
Communications			224			205			19		9.50
Other			2,933			2,501			432		17.28
Total noninterest expense		$	27,674		$	20,221		$	7,453		36.86	%

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Noninterest expense increased for the three months ended March 31, 2026 compared to the same periods in 2025.

Salaries and employee benefits. Salaries and employee benefits for the three months ended March 31, 2026 increased as compared to the same period ended March 31, 2025. This increase was primarily due to the increase in salaries and employee benefits expenses attributed to the additional employees from the Ellerbee Insurance Agency acquisition in April 2025 and the TC Bancshares acquisition in December 2025. In addition, there were increases in commissions paid in 2026 related to SBSL and Colony Financial Advisors.

Occupancy and equipment. Occupancy and equipment expenses increased for the three months ended March 31, 2026 compared to the same period ended March 31, 2025. Increases occurred in utilities and lease expenses primarily due to the impact of the above listed acquisitions in 2025.

Acquisition related expenses. Acquisition related expenses increased for the three months ended March 31, 2026 compared to the same period ended March 31, 2025 and consists primarily of professional fees, information technology expenses, advertising, and costs associated with a lease buyout, all attributable to the merger with TC Bancshares.

Information technology expenses. Information technology expenses increased for the three months ended March 31, 2026 compared to the same period ended March 31, 2025. This increase relates primarily to increases in software, data processing and ATM expenses, which were all impacted by the above listed acquisitions in 2025.

Professional fees. Professional fees increased for the three months ended March 31, 2026 compared to the same periods ended March 31, 2025. These increases relate to increases in legal and consulting fees impacted by the TC Bancshares acquisition.

Advertising and public relations. Advertising and public relations expenses increased for the three months ended March 31, 2026 compared to the same period ended March 31, 2025. The quarter over quarter increase was related to increases in subscriptions, marketing and advertising, which were all impacted by the TC Bancshares acquisition.

Communications. Communications expense increased for the three months ended March 31, 2026 compared to the same period ended March 31, 2025. The change is related to fluctuations in data circuit fees.

Other noninterest expense. Other noninterest expense increased for the three months ended March 31, 2026 as compared to the same period ended March 31, 2025. The increase was primarily due to increases in travel, meals and entertainment, insurance, postage and stationery and supplies, all impacted by the above listed acquisitions.

Income Tax Expense

Income tax expense for the three months ended March 31, 2026 was $2.3 million, compared to $1.7 million for the same period in 2025. The Company’s effective tax rate for the three months ended March 31, 2026 was 21.6% compared to 20.1% for the three months ended March 31, 2025. The largest driver of the difference is the tax-exempt income primarily from BOLI and tax-exempt interest as well as the impact related to the acquisition of TC Bancshares in the fourth quarter of 2025.

Balance Sheet Review

Total assets were $3.7 billion at March 31, 2026 and December 31, 2025.

Loans and Allowance for Credit Losses

At March 31, 2026, gross loans outstanding (excluding loans held for sale) were $2.41 billion, an increase of $32.2 million, or 1.35%, compared to $2.38 billion at December 31, 2025.

At March 31, 2026, approximately 64.2% of our loans were secured by commercial real estate. Our total commercial real estate loans have decreased slightly since December 31, 2025 while residential, commercial, financial & agricultural

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and consumer loans all increased. We continue to maintain loan growth at disciplined pricing levels which has contributed to an improved net interest margin.

The following table presents a summary of the loan portfolio as of March 31, 2026 and December 31, 2025.

Table 5 - Loans Outstanding


(dollars in thousands)		March 31, 2026			December 31, 2025
Construction, land & land development		$	309,161		$	302,512
Other commercial real estate			1,240,210			1,249,720
Total commercial real estate			1,549,371			1,552,232
Residential real estate			483,247			459,549
Commercial, financial & agricultural			220,933			218,532
Consumer and other			159,914			150,911
Total loans		$	2,413,465		$	2,381,224

Loans totaled $2.41 billion at March 31, 2026, an increase of 1.4% from $2.38 billion at December 31, 2025, which was primarily attributable to organic loan growth. 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 84.2% and 84.5% of total loans at March 31, 2026 and December 31, 2025, respectively. Commercial, financial and agricultural loans represents 9.1% of total loans at March 31, 2026 and 9.2% at December 31, 2025. Consumer and other loans increased to 6.6% of total loans at March 31, 2026 from 6.3% at December 31, 2025.

The following table presents total loans as of March 31, 2026 according to maturity distribution and/or repricing opportunity on adjustable rate loans.


					After one year			After five
		One year			through five			years through			After fifteen
(dollars in thousands)		or less			years			fifteen years			years			Total
Construction, land & land development		$	240,993		$	36,929		$	25,963		$	5,276		$	309,161
Other commercial real estate			370,568			602,405			262,568			4,669			1,240,210
Total commercial real estate			611,561			639,334			288,531			9,945			1,549,371
Residential real estate			129,232			180,618			75,908			97,489			483,247
Commercial, financial & agricultural			143,649			49,869			27,415			—			220,933
Consumer and other			8,698			48,041			49,401			53,774			159,914
Total loans, net of unearned fees		$	893,140		$	917,862		$	441,255		$	161,208		$	2,413,465

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The following table presents the maturity distribution of the Company’s loans at March 31, 2026 split between loans that have fixed interest rates or loans with variable interest rates that fluctuate over the life of the loans in accordance with changes in an interest rate index such as the prime rate.


					After One			After Five
		Due in One			Year, but			Years, but
		Year or			within			within Fifteen			After Fifteen
(dollars in thousands)		Less			Five Years			Years			Years			Total
Loans with fixed interest rates:
Construction, land & land development		$	5,251		$	31,829		$	12,629		$	5,276		$	54,985
Other commercial real estate			107,912			520,897			259,041			4,669			892,519
Total commercial real estate			113,163			552,726			271,670			9,945			947,504
Residential real estate			22,054			61,903			22,709			97,489			204,155
Commercial, financial & agricultural			27,605			45,616			27,415			—			100,636
Consumer and other			8,168			48,028			49,401			53,774			159,371
Total loans with fixed interest rates, net of unearned fees			170,990			708,273			371,195			161,208			1,411,666

Loans with floating interest rates:
Construction, land & land development			235,742			5,100			13,334			—			254,176
Other commercial real estate			262,656			81,508			3,527			—			347,691
Total commercial real estate			498,398			86,608			16,861			—			601,867
Residential real estate			107,178			118,715			53,199			—			279,092
Commercial, financial & agricultural			116,044			4,253			—			—			120,297
Consumer and other			530			13			—			—			543
Total loans with floating interest rates, net of unearned fees			722,150			209,589			70,060			—			1,001,799

Total loans, net of unearned fees		$	893,140		$	917,862		$	441,255		$	161,208		$	2,413,465

The Company’s risk mitigation processes include an independent loan review designed to evaluate the credit risk in the loan portfolio and to ensure credit grade accuracy. The analysis serves as a tool to assist management in assessing the overall credit quality of the loan portfolio and the adequacy of the allowance for credit losses. Loans classified as “substandard” are loans which are inadequately protected by the current credit worthiness and paying capacity of the borrower and/or the collateral pledged. These assets exhibit well-defined weaknesses or are showing signs there is a distinct possibility the Company will sustain some loss if the deficiencies are not corrected. These weaknesses may be characterized by past due performance, operating losses and/or questionable collateral values. Loans classified as “doubtful” are those loans that have characteristics similar to substandard loans but have an increased risk of loss. Loans classified as “loss” are those loans which are considered uncollectible and are in the process of being charged off.

The Company regularly monitors the composition of the loan portfolio as part of its evaluation over the adequacy of the allowance for credit losses. The Company focuses on the following loan categories: (1) construction, land & land development; (2) other commercial real estate; (3) residential real estate; (4) commercial, financial & agricultural; and (5) consumer and other.

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The allowance for credit losses for loans is a reserve established through charges to earnings in the form of a provision for credit losses. The provision for credit losses for loans is based on management’s evaluation of the size and composition of the loan portfolio, the level of nonperforming and past due loans, historical trends of charged off loans and recoveries, prevailing economic conditions and other factors management deems appropriate. The Company’s management has established an allowance for credit losses for loans which it believes is adequate to cover expected credit losses over the expected life of a loan exposure and unfunded commitments where the likelihood is that funding will occur. Based on a credit evaluation of the loan portfolio, management presents a quarterly review of the allowance for credit losses for loans and allowance for credit losses on unfunded commitments to the Company’s Board of Directors, which primarily focuses on risk by evaluating individual loans in certain risk categories. These categories have also been established by management and take the form of loan grades. By grading the loan portfolio in this manner, the Company’s management is able to effectively evaluate the portfolio by risk, which management believes is the most effective way to analyze the loan portfolio and thus analyze the adequacy of the allowance for credit losses on loans.

The allowance for credit losses on loans is established by examining (1) the large classified loans, nonaccrual loans and loans considered impaired and evaluating them individually to determine the specific reserve allocation and (2) the remainder of the loan portfolio to allocate a portion of the allowance based on past loss experience and reasonable and supportable forecasts of economic conditions for the particular loan category. The Company also considers other factors such as changes in lending policies and procedures; changes in national, regional and/or local economic and business conditions; changes in the nature and volume of the loan portfolio; changes in the experience, ability and depth of either the market president or lending staff; changes in the volume and severity of past due and classified loans; changes in the quality of the loan review system; and other factors management deems appropriate.

The allowance for credit losses on off-balance sheet credit exposures is adjusted as a provision for credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life. The ACL is calculated using the same aggregate reserve rates calculated for the funded portion of loans at the portfolio level applied to the amount of commitments expected to fund.

The allowance for credit losses on loans was $21.7 million at March 31, 2026 compared to $20.0 million at March 31, 2025, an increase of $1.7 million, or 8.5%. The allowance for credit losses on loans as a percentage of loans was 0.90% and 1.04% at March 31, 2026 and 2025, respectively. The provision for credit losses was $1.75 million compared to $1.5 million for the three months ended March 31, 2026 and March 31, 2025, respectively. The provision for credit losses for the quarter ended March 31, 2026 includes $1.5 million in credit losses on loans and $250,000 in credit losses on unfunded commitments. The provision for credit losses for the quarter ended March 31, 2025 includes $1.6 million in credit losses on loans and a release of $123,000 in credit losses on unfunded commitments. For the three month period ended March 31, 2026, we experienced increases in net charge-offs primarily related to SBA loans in our SBSL portfolio which represented 55.1% of total net charge-offs for the period along with increases in commercial, financial & agricultural and consumer loans. Accordingly, 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, that was sufficient to cover expected credit losses on loans over the expected life of a loan exposure and unfunded commitments where the likelihood is that funding will occur.

Additional information about the Company’s allowance for credit losses is provided in Note 4 to our consolidated financial statements as of March 31, 2026, included elsewhere in this Quarterly Report on Form 10-Q.

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The following table presents an analysis of the allowance for credit losses on loans as of and for the three months ended March 31, 2026 and 2025:

Table 6 - Analysis of Allowance for Credit Losses on Loans


		March 31, 2026				March 31, 2025
(dollars in thousands)		Reserve		%*		Reserve		%*
Construction, land & land development		$	2,252	12.8	%	$	1,078	10.9	%
Other commercial real estate			6,309	51.4	%		6,515	54.8	%
Residential real estate			5,475	20.0	%		5,753	18.0	%
Commercial, financial & agricultural			4,112	9.2	%		3,545	11.1	%
Consumer and other			3,557	6.6	%		3,106	5.2	%
		$	21,705	100	%	$	19,997	100	%

*	Percentage represents the loan balance in each category expressed as a percentage of total end of period loans.

The following table presents a summary of allowance for credit loss for the three months ended March 31, 2026 and 2025.

Table 7 - Summary of Allowance for Credit Losses on Loans


		Three Months Ended
		March 31,			March 31,
(dollars in thousands)		2026			2025
Allowance for credit losses on loans - beginning balance		$	23,014		$	18,980
Adjustment on acquired loans			(1,100)			—
Charge-offs:			—
Other commercial real estate			475			180
Residential real estate			50			1
Commercial, financial & agricultural			741			262
Consumer and other			519			276
Total charge-offs			1,785			719
Recoveries:
Construction, land & land development			1			1
Other commercial real estate			—			5
Residential real estate			1			40
Commercial, financial & agricultural			42			55
Consumer and other			32			12
Total recoveries			76			113
Net charge-offs			1,709			606
Provision for credit losses on loans			1,500			1,623
Allowance for credit losses on loans- ending balance		$	21,705		$	19,997

Net charge-offs to average loans (annualized)			0.29	%		0.13	%
Allowance for credit losses on loans to total loans			0.90			1.04
Allowance to nonperforming loans			122.10			160.26

Management believes the allowance for credit losses for loans is adequate to provide for losses expected in the loan portfolio as of March 31, 2026.

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Nonperforming Assets

Asset quality experienced improvement during the first three months of 2026. 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 $17.6 million at March 31, 2026, a decrease of $5.8 million, or 24.7%, from $23.4 million at December 31, 2025. There were fourteen loans contractually past due 90 days or more and still accruing totaling $178,000 at March 31, 2026, compared to eight loans totaling $95,000 at December 31, 2025. There was $205,000 in repossessed personal property at March 31, 2026, and $190,000 at December 31, 2025. OREO totaled $1.9 million at March 31, 2026, compared to $1.0 million at December 31, 2025, which represents the addition of seven properties totaling $1.7 million and the sale of two properties which totaled $659,000. As of March 31, 2026, total nonperforming assets as a percent of total assets decreased to 0.53% compared with 0.66% at December 31, 2025. The decrease in nonperforming assets was primarily the result of decreases in all loan segments except residential real estate loans, partially offset by repayments, payoffs and charged off loans.

Generally, loans are placed on non-accrual status if principal or interest payments become 90 days past due and/or management deems the collectability of the principal and/or interest to be in question, as well as when required by regulatory requirements. Loans to a customer whose financial condition has deteriorated are considered for non-accrual status whether or not the loan is 90 days or more past due. Once interest accruals are discontinued, accrued but uncollected interest is charged to current year operations. Subsequent loan payments made on nonaccrual loans are recorded as a reduction of principal, and interest income is recorded only after principal recovery is reasonably assured. Classification of a loan as nonaccrual does not preclude the ultimate collection of loan principal or interest.

Foreclosed property is initially recorded at fair value, less estimated costs to sell. If the fair value, less estimated costs to sell, at the time of foreclosure is less than the loan balance, the deficiency is charged against the allowance for credit losses on loans. If the lesser of the fair value, less estimated costs to sell, or the listed selling price, less the costs to sell, of the foreclosed property decreases during the holding period, a valuation allowance is established with a charge to foreclosed property expense. When the foreclosed property is sold, a gain or loss is recognized on the sale for the difference between the sales proceeds and the carrying amount of the property.

Nonperforming assets at March 31, 2026 and December 31, 2025 were as follows:

Table 8 - Nonperforming Assets


(dollars in thousands)		March 31, 2026			December 31, 2025
Nonaccrual loans		$	17,599		$	23,380
Loans past due 90 days and accruing			178			95
Total nonperforming loans			17,777			23,475
Other real estate owned			1,873			1,048
Repossessed assets			205			190
Total nonperforming assets		$	19,855		$	24,713
Nonperforming loans by loan segment
Construction, land & land development		$	92		$	1,132
Commercial real estate			6,629			9,663
Residential real estate			4,662			4,501
Commercial, financial & agricultural			5,985			7,883
Consumer & other			409			296
Total nonperforming loans		$	17,777		$	23,475
Nonperforming assets as a percentage of:
Total loans, OREO and foreclosed assets			0.82	%		1.04	%
Total assets			0.53	%		0.66	%
Nonperforming loans as a percentage of total loans			0.74	%		0.99	%

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The Company had no loans modified due to financial difficulty during the three month period ended March 31, 2026. See Note 3 - Loans, included elsewhere in this Quarterly Report on Form 10-Q for additional details on loan modifications.

Deposits

Deposits at March 31, 2026 and December 31, 2025 were as follows:

Table 9 - Deposits


(dollars in thousands)		March 31, 2026			December 31, 2025
Noninterest-bearing demand		$	495,234		$	526,803
Interest-bearing demand			927,768			932,262
Savings and money market			806,434			787,811
Time, $250,000 and over			237,311			239,175
Other time			581,672			581,470
Total deposits		$	3,048,419		$	3,067,521

Total deposits decreased $19.1 million to $3.05 billion at March 31, 2026 from $3.07 billion at December 31, 2025. As of March 31, 2026, 16.2% of total deposits were comprised of noninterest-bearing accounts and 83.8% were comprised of interest-bearing deposit accounts, compared to 17.2% and 82.8% as of December 31, 2025, respectively. The overall decrease in our deposits was primarily due to a decrease in noninterest-bearing deposits, partially offset by increases in savings and money market deposits due to seasonality in customer deposit balances.

We had $136.9 million in brokered deposits at March 31, 2026 and $131.9 million at December 31, 2025. We use brokered deposits, subject to certain limitations and requirements, as a source of funding to support our asset growth and augment the deposits generated from our branch network, which are our principal source of funding. Our level of brokered deposits varies from time to time depending on competitive interest rate conditions and other factors, and tends to increase as a percentage of total deposits when the brokered deposits are less costly than issuing internet certificates of deposit or borrowing from the FHLB.

The Company’s estimated uninsured deposits were $989.4 million at March 31, 2026, or 32.21% of total Bank deposits, compared to $980.0 million at December 31, 2025, or 31.65% of total Bank deposits. Adjusted uninsured deposit estimate (which excludes deposits collateralized by public funds and internal accounts) were $625.1 million at March 31, 2026, or 20.35% of total Bank deposits, compared to $576.5 million at December 31, 2025, or 18.62% of total Bank deposits. Adjusted uninsured deposits represent a small percentage of our overall deposits, which increases the stability of our deposit base and lowers our overall funding risk.

The following table presents average deposits outstanding and the average rate paid on deposits by the Company at March 31, 2026 and March 31, 2025.


(dollars in thousands)	March 31, 2026				March 31, 2025
Noninterest-bearing demand	$	487,298	—		$	455,277	—
Interest-bearing demand and savings		1,725,632	1.40	%		1,549,509	1.69	%
Time deposits		812,531	3.43			601,920	3.57
Total deposits	$	3,025,461	1.72	%	$	2,606,706	1.83	%

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The following table presents the maturities of the Company’s time deposits as of March 31, 2026.


		Time			Time
		Deposits			Deposits
		$250,000			Less than
(dollars in thousands)		or Greater			$250,000			Total
Months to Maturity
3 months or less		$	110,993		$	228,199		$	339,192
Over 3 months through 6 months			64,516			178,175			242,691
Over 6 months through 12 months			53,812			124,275			178,087
Over 12 months			7,990			51,023			59,013
		$	237,311		$	581,672		$	818,983

Off-Balance Sheet Arrangements

The Company is a party to credit related financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, standby letters of credit and commercial letters of credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets.

The Company’s exposure to credit loss is represented by the contractual amount of these commitments. The Company follows the same credit policies in making commitments as it does for on-balance sheet instruments. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary, upon extension of credit, is based on management’s credit evaluation of the borrower. The type of collateral held varies, but may include cash or cash equivalents, unimproved or improved real estate, personal property or other acceptable collateral.

See Note 8 to our consolidated financial statements as of March 31, 2026, included elsewhere in this Form 10-Q, for a table setting forth the financial instruments that were outstanding whose contract amounts represent credit risk and more information regarding our off-balance sheet arrangements as of March 31, 2026 and December 31, 2025.

Liquidity

An important part of the Bank’s liquidity resides in the asset portion of the balance sheet, which provides liquidity primarily through loan interest and principal repayments and the maturities and sales of securities, as well as the ability to use these assets as collateral for borrowings on a secured basis.

The Bank’s main source of liquidity is customer interest-bearing and noninterest-bearing deposit accounts. Liquidity is also available from wholesale funding sources consisting primarily of federal funds purchased, FHLB advances and brokered deposits. These sources of liquidity are generally short-term in nature and are used as necessary to fund asset growth and meet other short-term liquidity needs.

To manage long-term liquidity, the Bank may utilize long-term FHLB advances, subordinated debt issuances, or the sale of investment securities to support structural balance sheet growth and satisfy extended funding requirements.

To plan for contingent sources of funding not satisfied by both local and out-of-market deposit balances, the Company and the Bank have established multiple borrowing sources to augment their funds management. The Company has borrowing capacity through membership in the FHLB program. The Bank has also established overnight borrowing for federal funds purchased through various correspondent banks. There were no outstanding balances of federal funds purchased at March 31, 2026 and December 31, 2025, respectively.

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Cash and cash equivalents at March 31, 2026 and December 31, 2025 were $295.8 million and $257.6 million, respectively. Cash and cash equivalents have increased since year end 2025, partially due to maturities and paydowns of investment securities and loan maturities and payoffs. Management believes the various funding sources discussed above are adequate to meet the Company’s liquidity needs without any material adverse impact on our operating results.

Liquidity management involves the matching of cash flow requirements of customers and the ability of the Company to manage those requirements. These requirements of customers include, but are not limited to, deposits being withdrawn or providing assurance to borrowers that sufficient funds are available to meet their credit needs. We strive to maintain an adequate liquidity position by managing the balances and maturities of interest-earning assets and interest-bearing liabilities so that the balance we have in short-term assets at any given time will adequately cover any reasonably anticipated need for funds. Additionally, we maintain relationships with correspondent banks, which could provide funds on short notice, if needed. We have also invested in FHLB stock for the purpose of establishing credit lines with the FHLB. At March 31, 2026 and December 31, 2025, we had $195.0 million of outstanding advances from the FHLB for both periods. Based on the values of loans pledged as collateral, we had $921.2 million and $747.0 million of additional borrowing availability with the FHLB at March 31, 2026 and December 31, 2025, respectively.

Other sources of liquidity include availability from the Federal Reserve Discount Window of $121.8 million of which there was no outstanding balance at March 31, 2026. The Company also had unencumbered securities of $369.8 million, $242.8 million in FRB Reserves and $51.6 million in other cash and due from banks as of March 31, 2026. Unencumbered investment securities provide the ability to either be pledged as collateral with borrowing sources or sold and converted to cash.

The Company’s material cash requirements consist primarily of unfunded loan commitments, trust preferred securities payments and dividends to shareholders. We believe our current cash and cash equivalents, expected cash flows from operations and existing liquidity will be sufficient to meet these requirements. However, external financing from our funding sources mentioned above may be utilized if necessary.

The Company is a separate entity from the Bank, and as such it must provide for its own liquidity. The Company is responsible for the payment of dividends declared for its common shareholders and payment of interest and principal on any outstanding debt or trust preferred securities. These obligations are met through internal capital resources such as service fees and dividends from the Bank, which are limited by applicable laws and regulations.

The liquidity position of the Company is continuously monitored, and adjustments are made to the balance between sources and uses of funds as deemed appropriate. Management is not aware of any events that are reasonably likely to have a material adverse effect on the Company’s liquidity, capital resources or operations. In addition, management is not aware of any regulatory recommendations regarding liquidity, which if implemented, would have a material adverse effect on the Company.

Capital Resources

The Company and the Bank are required under federal law to maintain certain minimum capital levels based on ratios of capital to total assets and capital to risk-weighted assets. The required capital ratios are minimums, and the federal banking agencies may determine that a banking organization, based on its size, complexity or risk profile, must maintain a higher level of capital in order to operate in a safe and sound manner. Risks such as concentration of credit risks and the risk arising from non-traditional activities, as well as the institution’s exposure to a decline in the economic value of its capital due to changes in interest rates, and an institution’s ability to manage those risks are important factors that are to be taken into account by the federal banking agencies in assessing an institution’s overall capital adequacy.

The table below summarizes the capital requirements applicable to the Company and the Bank in order to be considered “well-capitalized” from a regulatory perspective, as well as the Company’s and the Bank’s capital ratios as of March 31, 2026 and December 31, 2025. The Company and the Bank exceeded all regulatory capital requirements and was considered to be “well-capitalized” as of March 31, 2026 and December 31, 2025. There have been no conditions or events since March 31, 2026 that management believes would change this classification.

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Table 10 - Capital Ratio Requirements


		Minimum
		Requirement		Well-capitalized
Risk-based ratios:
Common equity tier 1 capital (CET1)		4.5	%	6.5	%
Tier 1 capital		6.0		8.0
Total capital		8.0		10.0
Leverage ratio		4.0		5.0

Table 11 - Capital Ratios


Company		March 31, 2026		December 31, 2025
CET1 risk-based capital ratio		12.53	%	12.67	%
Tier 1 risk-based capital ratio		13.44		13.60
Total risk-based capital ratio		15.75		15.95
Leverage ratio		9.84		10.78

Colony Bank
CET1 risk-based capital ratio		13.59	%	13.61	%
Tier 1 risk-based capital ratio		13.59		13.61
Total risk-based capital ratio		14.45		14.48
Leverage ratio		9.95		10.78

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ITEM 3 – QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Company’s primary market risk exposures are credit risk, interest rate risk, and to a lesser degree, liquidity risk. The Bank operates under an Asset Liability Management Policy which is approved by the Asset/Liability Management Committee, which is a Board committee that meets regularly. The policy outlines limits on interest rate risk in terms of changes in net interest income and changes in the net market values of assets and liabilities over certain changes in interest rate environments. These measurements are made through a simulation model which projects the impact of changes in interest rates on the Bank’s assets and liabilities. The policy also outlines responsibility for monitoring interest rate risk and the process for the approval, implementation and monitoring of interest rate risk strategies to achieve the Bank’s interest rate risk objectives.

The following table presents our interest sensitivity position at the dates indicated.

Table 12 - Interest Sensitivity


	Increase (Decrease) in Net Interest Income from Base Scenario at
	March 31, 2026		December 31, 2025
Changes in rates
200 basis point increase	6.75	%	8.10	%
100 basis point increase	3.37		4.33
100 basis point decrease	0.51		(0.63)
200 basis point decrease	0.48		(1.72)

See Part II, Item 7A, “Quantitative and Qualitative Disclosures About Market Risk,” of the Company’s 2025 Form 10-K for additional disclosures related to market and interest rate risk.

There are no material changes during the period covered by this Report to Part II, Item 7A, “Quantitative and Qualitative Disclosures About Market Risk” previously disclosed in the Company’s 2025 Form 10-K.

ITEM 4 – CONTROLS AND PROCEDURES

Under the supervision and with the participation of management, including the Company’s Chief Executive Officer and Chief Financial Officer, the Company has evaluated its disclosure controls and procedures (as such term is defined in Rules 13a-15(e) or 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), as of the end of the period covered by this report, as required by paragraph (b) of Rules 13a-15 or 15d-15 of the Exchange Act. Based on such evaluation, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of the period covered by this report, the Company’s disclosure controls and procedures were effective for ensuring that information the Company is required to disclose in reports that it files or submits under the Exchange Act, as amended, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to the Company’s senior management, including its Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

During the quarter ended March 31, 2026, there were no changes in the Company’s internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Rules 13a-15 or 15d-15 of the Exchange Act that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

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Part II – OTHER INFORMATION

ITEM 1 – LEGAL PROCEEDINGS

In the ordinary course of business, there are various legal proceedings pending against the Company and the Bank. The aggregate liabilities, if any, arising from such proceedings would not, in the opinion of management, have a material adverse effect on the Company’s consolidated financial position.

ITEM 1A – RISK FACTORS

In addition to the other information set forth in this Quarterly Report, you should carefully consider the factors discussed in “Part I - Item IA - Risk Factors” of the Company’s 2025 Form 10-K, which could materially affect its business, financial position, results of operations, cash flows, or future results. Please be aware that these risks may change over time and other risks may prove to be important in the future. New risks may emerge at any time, and we cannot predict such risks or estimate the extent to which they may affect our business, financial condition or results of operations, or the trading price of our securities.

There are no material changes during the period covered by this Report to the risk factors previously disclosed in the Company’s 2025 Form 10-K.

ITEM 2 – UNREGISTERED SALE OF EQUITY SECURITIES, USE OF PROCEEDS, AND ISSUER PURCHASES OF EQUITY SECURITIES

(a)	There were no unregistered shares of the Company’s common stock sold during the three-month period ended March 31, 2026.

(b)	Not applicable.

(c)	The table below sets forth information regarding repurchases of our common stock during the first quarter of 2026.


						Total Number of Shares	Maximum Approximate Dollar
						Purchased as Part of	Value of Shares that May Yet Be
		Total Number of		Average Price Paid		Publicly Announced Plans	Purchased Under the Plans or
(dollars in thousands, except per share data)		Shares Repurchased		per Share		or Programs	Programs
January 1, 2026 to January 31, 2026		—		$	—	—	$	—
February 1, 2026 to February 28, 2026		35,672			19.97	35,672		6,674
March 1, 2026 to March 31, 2026		53,437			19.66	53,437		5,624
Total		89,109		$	19.78	89,109	$	5,624

On December 18, 2025, the Board of Directors of the Company authorized the extension of the stock buyback program approved in October 2022, under which the Company may repurchase up to $12 million of its outstanding common stock. Repurchases under this program may be made from time to time through open market purchases, privately negotiated transactions or such other manners as will comply with applicable laws and regulations. The timing and actual number of shares repurchased will depend on a variety of factors including price, corporate and regulatory requirements, market conditions and other corporate liquidity requirements and priorities. The buyback program does not obligate the Company to purchase any particular number of shares and there is no guarantee as to the exact number of shares that will be repurchased by the Company. An extension was previously authorized by the Board in December 2024 which extended the program through the end of 2025. This authorization extends the program until the end of 2026 but may be suspended, modified or terminated by the Company at any time and for any reason, without prior notice.

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ITEM 3 – DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4 – MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5 – OTHER INFORMATION

Pursuant to Item 408(a) of Regulation S-K, none of the Company’s directors or executive officers adopted, terminated or modified a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the three months ended March 31, 2026.

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ITEM 6 – EXHIBITS



2.1		Agreement and Plan of Merger, dated July 23, 2025, by and between Colony Bankcorp, Inc. and TC Bancshares, Inc. - filed as Exhibit 2.1 to the Company’s Current Report on Form 8-K, filed with the Commission on July 23, 2025 and incorporated herein by reference.

3.1		Articles of Incorporation, As Amended -filed as Exhibit 99.1 to the Company’s Quarterly Report on Form 10-Q, filed with the Commission on August 4, 2014 and incorporated herein by reference.

3.2		Articles of Amendment to Articles of Incorporation, As Amended, filed as Exhibit 3.2 to the Company’s Quarterly Report on Form 10-Q, filed with the Commission on August 12, 2022 and incorporated herein by reference.

3.3		Amended and Restated Bylaws -filed as Exhibit 3.1 to the Company’s Current Report on Form 8-K, filed with the Commission on September 18, 2020 and incorporated herein by reference.

10.1		Employment Agreement between Colony Bankcorp, Inc. and Derek Shelnutt, filed as Exhibit 10.1 to the Company’s Current Report on Form 8‑K, filed with the Commission on January 28, 2026 and incorporated herein by reference.

31.1		Certificate of Chief Executive Officer Pursuant to Section 302 of Sarbanes-Oxley Act of 2002

31.2		Certificate of Chief Financial Officer Pursuant to Section 302 of Sarbanes-Oxley Act of 2002

32.1		Certification of Chief Executive Officer and Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101		Interactive data files pursuant to Rule 405 of Regulation S-T, formatted in Inline XBRL: (i) Condensed Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025; (ii) Condensed Consolidated Statements of Income for the Three months ended March 31, 2026 and 2025; (iii) Condensed Consolidated Statements of Comprehensive Income for the Three months ended March 31, 2026 and 2025; (iv) Condensed Consolidated Statements of Changes in Stockholders’ Equity for the Three months ended March 31, 2026 and 2025; (v) Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2026 and 2025; and (vi) Notes to Unaudited Condensed Consolidated Financial Statements*

104		The cover page from Colony Bankcorp, Inc.’s Quarterly Report on Form 10-Q for the three months ended March 31, 2026 (formatted in Inline XBRL and included in Exhibit 101)

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SIGNATURES

Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


	Colony Bankcorp, Inc.

	/s/ T. Heath Fountain
Date: May 8, 2026	T. Heath Fountain
	Chief Executive Officer
	(Principal Executive Officer)

Date: May 8, 2026	/s/ Derek Shelnutt
	Derek Shelnutt
	Executive Vice President and Chief Financial Officer
	(Principal Financial Officer)

Colony Bankcorp Inc — Quarterly Report (Form 10-Q)

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