What changed in COLONY BANKCORP INC's 10-K — 2024 vs 2025
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Paragraph-level year-over-year comparison of COLONY BANKCORP INC's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.
+558 added−502 removedSource: 10-K (2026-03-13) vs 10-K (2025-03-14)
Top changes in COLONY BANKCORP INC's 2025 10-K
558 paragraphs added · 502 removed · 394 edited across 1 sections
- Item 1A. Risk Factors+558 / −502 · 394 edited
Item 1A. Risk Factors
Risk Factors — what could go wrong, per management
394 edited+164 added−108 removed454 unchanged
Item 1A. Risk Factors
Risk Factors — what could go wrong, per management
394 edited+164 added−108 removed454 unchanged
2024 filing
2025 filing
Biggest changeTerm Loans Amortized Cost Basis by Origination Year (dollars in thousands) 2024 2023 2022 2021 2020 Prior Revolvers Revolvers converted to term loans Total December 31, 2024 Construction, land & land development Risk rating Pass $ 98,269 $ 47,378 $ 25,930 $ 23,193 $ 1,979 $ 5,379 $ 53 $ — $ 202,181 Special Mention — 2,088 — — 411 — 281 — 2,780 Substandard — — — — — 85 — — 85 Total Construction, land & land development 98,269 49,466 25,930 23,193 2,390 5,464 334 — 205,046 Current period gross write offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Other commercial real estate Risk rating Pass 55,169 85,172 343,123 180,568 76,905 194,444 21,341 1,849 958,571 Special Mention 850 1,999 4,288 173 2,344 7,376 610 1,069 18,709 Substandard 4,114 2,586 2,875 459 352 2,419 563 — 13,368 Total Other commercial real estate 60,133 89,757 350,286 181,200 79,601 204,239 22,514 2,918 990,648 Current period gross write offs — — — — — 20 — — 20 83 Residential real estate Risk rating Pass 16,675 76,074 112,784 45,111 18,978 44,892 23,222 926 338,662 Special Mention — 1,672 374 — — 1,989 204 — 4,239 Substandard — — 442 270 28 526 — — 1,266 Total Residential real estate 16,675 77,746 113,600 45,381 19,006 47,407 23,426 926 344,167 Current period gross write offs — — 400 18 — 9 — — 427 Commercial, financial & agricultural Risk rating Pass 44,380 46,610 33,124 12,322 8,662 16,143 43,051 742 205,034 Special Mention — 622 2,136 12 — — 700 — 3,470 Substandard 105 1,612 858 1,904 271 218 433 5 5,406 Total Commercial, financial & agricultural 44,485 48,844 36,118 14,238 8,933 16,361 44,184 747 213,910 Current period gross write offs 138 588 659 986 28 68 — — 2,467 Consumer and other Risk rating Pass 53,500 30,186 2,312 857 530 1,291 456 13 89,145 Special Mention — — — — — — — — — Substandard 49 — 12 1 2 — — — 64 Total Consumer and other 53,549 30,186 2,324 858 532 1,291 456 13 89,209 Current period gross write offs 84 392 81 1 5 41 — — 604 Total Loans Risk rating Pass 267,993 285,420 517,273 262,051 107,054 262,149 88,123 3,530 1,793,593 Special Mention 850 6,381 6,798 185 2,755 9,365 1,795 1,069 29,198 Substandard 4,268 4,198 4,187 2,634 653 3,248 996 5 20,189 Total Loans $ 273,111 $ 295,999 $ 528,258 $ 264,870 $ 110,462 $ 274,762 $ 90,914 $ 4,604 $ 1,842,980 Total current period gross write offs $ 222 $ 980 $ 1,140 $ 1,005 $ 33 $ 138 $ — $ — $ 3,518 Term Loans Amortized Cost Basis by Origination Year (dollars in thousands) 2023 2022 2021 2020 2019 Prior Revolvers Revolvers converted to term loans Total December 31, 2023 Construction, land & land development Risk rating Pass $ 112,587 $ 91,981 $ 27,332 $ 5,654 $ 1,000 $ 5,765 $ 605 $ 31 $ 244,955 Special Mention 792 — 25 — — 29 282 — 1,128 Substandard — 888 4 — 20 151 — — 1,063 Total Construction, land & land development 113,379 92,869 27,361 5,654 1,020 5,945 887 31 247,146 Current period gross write offs $ — $ — $ — $ — $ — $ — $ — $ — $ — 84 Other commercial real estate Risk rating Pass 61,816 341,656 204,145 88,629 79,123 145,374 24,158 2,031 946,932 Special Mention 75 3,251 766 2,113 5,733 4,694 545 48 17,225 Substandard 2,303 2,615 211 — 486 4,395 208 — 10,218 Total Other commercial real estate 64,194 347,522 205,122 90,742 85,342 154,463 24,911 2,079 974,375 Current period gross write offs — — 69 — — — — — 69 Residential real estate Risk rating Pass 78,088 116,704 50,986 21,892 8,510 43,038 22,642 100 341,960 Special Mention 856 466 10 50 679 4,687 424 — 7,172 Substandard — 1,169 384 296 272 4,735 246 — 7,102 Total Residential real estate 78,944 118,339 51,380 22,238 9,461 52,460 23,312 100 356,234 Current period gross write offs 253 492 26 — — — — — 771 Commercial, financial & agricultural Risk rating Pass 66,820 51,439 21,673 12,489 4,734 14,002 58,607 306 230,070 Special Mention 4,186 894 376 745 188 40 974 — 7,403 Substandard 164 1,872 1,979 190 25 165 866 22 5,283 Total Commercial, financial & agricultural 71,170 54,205 24,028 13,424 4,947 14,207 60,447 328 242,756 Current period gross write offs 150 168 408 200 9 134 — — 1,069 Consumer and other Risk rating Pass 53,117 4,021 2,004 1,240 925 908 462 1 62,678 Special Mention 79 42 38 12 25 1 — — 197 Substandard 43 20 3 5 4 9 — — 84 Total Consumer and other 53,239 4,083 2,045 1,257 954 918 462 1 62,959 Current period gross write offs 9 12 10 2 — 2 — — 35 Total Loans Risk rating Pass 372,428 605,801 306,140 129,904 94,292 209,087 106,474 2,469 1,826,595 Special Mention 5,988 4,653 1,215 2,920 6,625 9,451 2,225 48 33,125 Substandard 2,510 6,564 2,581 491 807 9,455 1,320 22 23,750 Total Loans $ 380,926 $ 617,018 $ 309,936 $ 133,315 $ 101,724 $ 227,993 $ 110,019 $ 2,539 $ 1,883,470 Total current period gross write offs $ 412 $ 672 $ 513 $ 202 $ 9 $ 136 $ — $ — $ 1,944 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.
Biggest changeTerm Loans Amortized Cost Basis by Origination Year (dollars in thousands) 2025 2024 2023 2022 2021 Prior Revolvers Revolvers converted 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 88 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 Term Loans Amortized Cost Basis by Origination Year (dollars in thousands) 2024 2023 2022 2021 2020 Prior Revolvers Revolvers converted to term loans Total December 31, 2024 Construction, land & land development Risk rating Pass $ 98,269 $ 47,378 $ 25,930 $ 23,193 $ 1,979 $ 5,379 $ 53 $ — $ 202,181 Special Mention — 2,088 — — 411 — 281 — 2,780 Substandard — — — — — 85 — — 85 Total Construction, land & land development 98,269 49,466 25,930 23,193 2,390 5,464 334 — 205,046 Current period gross write offs $ — $ — $ — $ — $ — $ — $ — $ — $ — Other commercial real estate Risk rating Pass 55,169 85,172 343,123 180,568 76,905 194,444 21,341 1,849 958,571 Special Mention 850 1,999 4,288 173 2,344 7,376 610 1,069 18,709 Substandard 4,114 2,586 2,875 459 352 2,419 563 — 13,368 Total Other commercial real estate 60,133 89,757 350,286 181,200 79,601 204,239 22,514 2,918 990,648 Current period gross write offs — — — — — 20 — — 20 Residential real estate Risk rating Pass 16,675 76,074 112,784 45,111 18,978 44,892 23,222 926 338,662 Special Mention — 1,672 374 — — 1,989 204 — 4,239 Substandard — — 442 270 28 526 — — 1,266 Total Residential real estate 16,675 77,746 113,600 45,381 19,006 47,407 23,426 926 344,167 Current period gross write offs — — 400 18 — 9 — — 427 Commercial, financial & agricultural Risk rating Pass 44,380 46,610 33,124 12,322 8,662 16,143 43,051 742 205,034 Special Mention — 622 2,136 12 — — 700 — 3,470 Substandard 105 1,612 858 1,904 271 218 433 5 5,406 Total Commercial, financial & agricultural 44,485 48,844 36,118 14,238 8,933 16,361 44,184 747 213,910 Current period gross write offs 138 588 659 986 28 68 — — 2,467 89 Consumer and other Risk rating Pass 53,500 30,186 2,312 857 530 1,291 456 13 89,145 Special Mention — — — — — — — — — Substandard 49 — 12 1 2 — — — 64 Total Consumer and other 53,549 30,186 2,324 858 532 1,291 456 13 89,209 Current period gross write offs 84 392 81 1 5 41 — — 604 Total Loans Risk rating Pass 267,993 285,420 517,273 262,051 107,054 262,149 88,123 3,530 1,793,593 Special Mention 850 6,381 6,798 185 2,755 9,365 1,795 1,069 29,198 Substandard 4,268 4,198 4,187 2,634 653 3,248 996 5 20,189 Total Loans $ 273,111 $ 295,999 $ 528,258 $ 264,870 $ 110,462 $ 274,762 $ 90,914 $ 4,604 $ 1,842,980 Total current period gross write offs $ 222 $ 980 $ 1,140 $ 1,005 $ 33 $ 138 $ — $ — $ 3,518 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.
We face risks from certain cybersecurity threats that, if realized, could reasonably be expected to materially affect our business 32 strategy, financial condition, or results of operation. See “Part I - Item 1A. Risk Factors – Risks Related to our Business” of this Report. Cybersecurity Governance Colony’s Information Security Officer ("ISO"), reports to Colony’s Chief Risk Officer.
We face risks from certain cybersecurity threats that, if realized, could reasonably be 32 expected to materially affect our business strategy, financial condition, or results of operation. See “Part I - Item 1A. Risk Factors – Risks Related to our Business” of this Report. Cybersecurity Governance Colony’s Information Security Officer ("ISO"), reports to Colony’s Chief Risk Officer.
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.
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.
BORROWINGS The following table presents information regarding the Company’s outstanding borrowings at December 31, 2024: Description Maturity Date Amount Interest Rate (dollars in thousands) FHLB Advances December 22, 2027 $ 15,000 4.00% FHLB Advances January 28, 2028 20,000 3.87% FHLB Advances February 15, 2028 20,000 3.83% FHLB Advances April 5, 2028 25,000 3.69% FHLB Advances April 6, 2026 25,000 3.90% FHLB Advances May 2, 2029 30,000 4.73% FHLB Advances March 25, 2025 25,000 4.46% FHLB Advances March 26, 2025 25,000 4.46% Subordinated notes May 20, 2032 38,810 5.25% Subordinated debentures (1) 24,229 (1) Total borrowings $ 248,039 (1) See individual maturity dates and interest rates in table below.
The following table presents information regarding the Company’s outstanding borrowings at December 31, 2024: Description Maturity Date Amount Interest Rate (dollars in thousands) FHLB Advances December 22, 2027 $ 15,000 4.00% FHLB Advances January 28, 2028 20,000 3.87% FHLB Advances February 15, 2028 20,000 3.83% FHLB Advances April 5, 2028 25,000 3.69% FHLB Advances April 6, 2026 25,000 3.90% FHLB Advances May 2, 2029 30,000 4.73% FHLB Advances March 25, 2025 25,000 4.46% FHLB Advances March 26, 2025 25,000 4.46% Subordinated notes May 20, 2032 38,810 5.25% Subordinated debentures (1) 24,229 (1) Total borrowings $ 248,039 (1) See individual maturity dates and interest rates in table below.
A successful challenge to our performance under the fair lending laws and regulations could adversely impact our rating under the Community Reinvestment Act and result in a wide variety of sanctions, including the required payment of damages and civil money penalties, injunctive relief, imposition of restrictions on merger and acquisition activity and restrictions on expansion activity, which could negatively impact our reputation, business, financial condition and results of operations.
A successful challenge to our performance under the fair lending laws and regulations could adversely impact our rating under the Community Reinvestment Act and result in a wide variety of sanctions, including the required payment of damages and civil 28 money penalties, injunctive relief, imposition of restrictions on merger and acquisition activity and restrictions on expansion activity, which could negatively impact our reputation, business, financial condition and results of operations.
When we take collateral in foreclosure and similar proceedings, we are required to mark the collateral to its then-fair market value, which may result in a loss. These nonperforming loans and OREO also increase our risk profile and the level of capital our regulators believe is appropriate for us to maintain in light of such risks.
When we take 22 collateral in foreclosure and similar proceedings, we are required to mark the collateral to its then-fair market value, which may result in a loss. These nonperforming loans and OREO also increase our risk profile and the level of capital our regulators believe is appropriate for us to maintain in light of such risks.
Climate change may be increasing the nature, severity and frequency of adverse weather conditions, making the impact from these types of natural disasters on us or our customers worse. Such weather events can disrupt operations, result in damage to properties and negatively affect the local 27 economies in the markets where they operate.
Climate change may be increasing the nature, severity and frequency of adverse weather conditions, making the impact from these types of natural disasters on us or our customers worse. Such weather events can disrupt operations, result in damage to properties and negatively affect the local economies in the markets where they operate.
Consumer loans represent relatively small loan amounts that are spread across many individual borrowers to help minimize risk. Additionally, consumer trends and outlook reports are reviewed by management on a regular basis. 46 The Company utilizes an independent third-party company for loan review and validation of the credit risk program on an ongoing quarterly basis.
Consumer loans represent relatively small loan amounts that are spread across many individual borrowers to help minimize risk. Additionally, consumer trends and outlook reports are reviewed by management on a regular basis. The Company utilizes an independent third-party company for loan review and validation of the credit risk program on an ongoing quarterly basis.
Regulatory agencies for banks and bank holding companies utilize capital guidelines designed to measure Tier 1 and total capital and take into consideration the risk inherent in both on-balance sheet and off-balance sheet items. 55 Tier 1 capital consists of common stock and qualifying preferred securities less goodwill, intangibles and disallowed deferred tax assets.
Regulatory agencies for banks and bank holding companies utilize capital guidelines designed to measure Tier 1 and total capital and take into consideration the risk inherent in both on-balance sheet and off-balance sheet items. Tier 1 capital consists of common stock and qualifying preferred securities less goodwill, intangibles and disallowed deferred tax assets.
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 includes “substandard” loans in accordance with regulatory guidelines.
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. 86 • Grades 7 and 8 - These grades includes “substandard” loans in accordance with regulatory guidelines.
We utilize derivatives to help manage our interest rate risk position and mitigate exposure to the variability of future cash flows or other forecasted transactions. We mitigate our credit risk through reliance on an extensive loan review process and our allowance for credit losses. Interest rate risk is the change in value due to changes in interest rates.
We utilize derivatives to help manage our interest rate risk position and mitigate exposure to the variability of future cash flows or other forecasted transactions. We mitigate our credit risk through reliance on an extensive loan review process and our allowance for credit losses. 58 Interest rate risk is the change in value due to changes in interest rates.
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.
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: 109 Securities – Where quoted prices are available in an active market, securities are classified within level 1 of the valuation hierarchy.
Heath Fountain .† -filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K (File No. 000-12436), filed with the Commission on July 24, 2024 and incorporated herein by reference. 10.7 Retention Agreement, Dated January 15, 2019, Between Colony Bank and Kimberly C.
Heath Fountain.† -filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K (File No. 000-12436), filed with the Commission on July 24, 2024 and incorporated herein by reference. 10.8 Retention Agreement, Dated January 15, 2019, Between Colony Bank and Kimberly C.
Our dividend policy may change, and consequently, your only opportunity to achieve a return on your investment may be if the price of our common stock appreciates. We have historically paid quarterly dividends to our shareholders. However, we have no obligation to pay dividends and we may change our dividend policy at any time without notice to our shareholders.
Our dividend policy may change, and consequently, your only opportunity to achieve a return on your investment may be if the price of our common stock appreciates. We have historically paid quarterly dividends to our shareholders. However, we have no obligation to pay dividends and we may change our dividend policy at any time without giving notice to our shareholders.
Historical loss experience is generally the starting point for estimating expected credit losses. We then consider whether the historical loss 39 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.
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.
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. 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.
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. 106 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.
The development and use of artificial intelligence (AI) presents risks and challenges that may adversely impact our business. The Company or its third-party (or fourth party) vendors, clients or counterparties may develop or incorporate AI technology in certain business processes, services, or products. The development and use of AI presents a number of risks and challenges to the Company’s business.
The developments and use of artificial intelligence (AI) presents risks and challenges that may adversely impact our business. The Company or its third-party (or fourth party) vendors, clients or counterparties may develop or incorporate AI technology in certain business processes, services, or products. The development and use of AI presents a number of risks and challenges to the Company’s business.
The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. The amortization of servicing rights is netted against loan servicing fee income. Servicing rights are evaluated for impairment based upon the fair value of the rights as compared to carrying amount.
The fees are based on a 73 contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. The amortization of servicing rights is netted against loan servicing fee income. Servicing rights are evaluated for impairment based upon the fair value of the rights as compared to carrying amount.
The SIC code is a federally designed standard industrial numbering system used by the Company to categorize loans by the borrower’s type of business. The Company has established industry-specific guidelines with respect to maximum loans permitted for each industry with which the Company does business. 47 Collateral concentrations .
The SIC code is a federally designed standard industrial numbering system used by the Company to categorize loans by the borrower’s type of business. The Company has established industry-specific guidelines with respect to maximum loans permitted for each industry with which the Company does business. Collateral concentrations .
The Company also utilizes information provided by third-party agencies to provide additional insight and guidance about economic conditions and trends affecting the markets it serves. The Company extends loans to builders and developers that are secured by non-owner occupied properties.
The Company also utilizes information provided by third-party agencies to provide additional insight and guidance about economic conditions and trends affecting the markets it serves. 46 The Company extends loans to builders and developers that are secured by non-owner occupied properties.
The Company seeks to ensure its funding needs are met by maintaining a level of liquid funds through asset/liability management. Asset liquidity is provided by liquid assets which are readily marketable or pledgeable or which will mature in the near future.
The Company seeks to ensure its funding needs are met by maintaining a level of liquid funds through asset/liability management. 57 Asset liquidity is provided by liquid assets which are readily marketable or pledgeable or which will mature in the near future.
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 the borrower. The reserve for credit losses consists of the allowance for credit losses (“ACL”) and the allowance for unfunded commitments.
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 the borrower. 39 The reserve for credit losses consists of the allowance for credit losses (“ACL”) and the allowance for unfunded commitments.
Dollar amounts in tables are stated in thousands, except for per share amounts. 40 Results of Operations The Company’s results of operations are determined by its ability to effectively manage interest income and expense, to minimize loan and investment losses, to generate noninterest income and to control noninterest expense.
Dollar amounts in tables are stated in thousands, except for per share amounts. Results of Operations The Company’s results of operations are determined by its ability to effectively manage interest income and expense, to minimize loan and investment losses, to generate noninterest income and to control noninterest expense.
The unemployment rates are reviewed on a quarterly basis as part of the allowance for credit loss determination. 85 Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due.
The unemployment rates are reviewed on a quarterly basis as part of the allowance for credit loss determination. Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due.
In order to reduce the exposure to interest rate fluctuations, we 58 have implemented strategies to more closely match our balance sheet composition. The Company has engaged Stifel to run a quarterly asset/liability model for interest rate risk analysis.
In order to reduce the exposure to interest rate fluctuations, we have implemented strategies to more closely match our balance sheet composition. The Company has engaged Stifel to run a quarterly asset/liability model for interest rate risk analysis.
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.
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.
We may also be subject to potentially adverse regulatory consequences. 24 The financial services market is undergoing rapid technological changes, and if we are unable to stay current with those changes, we will not be able to effectively compete.
We may also be subject to potentially adverse regulatory consequences. The financial services market is undergoing rapid technological changes, and if we are unable to stay current with those changes, we will not be able to effectively compete.
In addition, bank regulatory agencies periodically review our provision and the total allowance for credit losses and may require an increase in the allowance for credit losses or future provisions for credit losses on loans, based on judgments different than those of management.
In addition, bank regulatory agencies periodically review our provision and the total allowance for credit losses and may require an increase in the allowance for credit losses or future provisions for credit losses, based on judgments different than those of management.
Heath Fountain Chief Executive Officer/Director /s/ Derek Shelnutt Derek Shelnutt Executive Vice President/Chief Financial Officer 61 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Stockholders Colony Bankcorp, Inc. and Subsidiaries Fitzgerald, Georgia Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Colony Bankcorp, Inc. and Subsidiaries (the Company) as of December 31, 2024 and 2023 and the related consolidated statements of income, comprehensive income, changes in stockholders’ equity, and cash flows for the years then ended, and the related notes to the consolidated financial statements (collectively, the financial statements).
Heath Fountain Chief Executive Officer and Director /s/ Derek Shelnutt Derek Shelnutt Executive Vice President and Chief Financial Officer 61 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Stockholders Colony Bankcorp, Inc. and Subsidiaries Fitzgerald, Georgia Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Colony Bankcorp, Inc. and Subsidiaries (the Company) as of December 31, 2025 and 2024 and the related consolidated statements of income, comprehensive income, changes in stockholders’ equity, and cash flows for the years then ended, and the related notes to the consolidated financial statements (collectively, the financial statements).
Such cyberattacks and other technology disruptions would jeopardize the security of information stored in and transmitted through our computer systems and network infrastructure, and those maintained by our service providers and vendors, which may result in significant liability, damage our reputation and inhibit the use of our internet banking services by current and potential customers, any of which may result in a material adverse impact on our financial condition, results of operations or the market price of our common stock.
Such cyberattacks and other technology disruptions would jeopardize the security of information stored in and transmitted through our computer systems and network infrastructure, and those maintained by our service providers and vendors, which may result in significant liability, reputational damage and inhibit the use of our internet banking services by current and potential customers, any of which may result in a material adverse impact on our financial condition, results of operations or the market price of our common stock.
The state and political subdivision securities are also highly rated by major rating agencies. 74 Allowance for Credit Losses – Available-for-Sale Securities ("AFS") 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.
The state and political subdivision securities are also highly rated by major rating agencies. 75 Allowance for Credit Losses – Available-for-Sale Securities ("AFS") 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.
Accordingly, we may not be able to effectively implement new technology-driven products and services or be successful in marketing these products and services to our customers, which could impair our growth and profitability.
We may not be able to effectively implement new technology-driven products and services or be successful in marketing these products and services to our customers, which could impair our growth and profitability.
Securities are classified as available-for-sale when they might be sold before maturity. Securities available-for-sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income. The Company had both held-to-maturity and available-for-sale securities in the investment portfolio at December 31, 2024. Management also evaluates its securities portfolio for any credit-related losses on a quarterly basis.
Securities are classified as available-for-sale when they might be sold before maturity. Securities available-for-sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income. The Company had both held-to-maturity and available-for-sale securities in the investment portfolio at December 31, 2025. Management also evaluates its securities portfolio for any credit-related losses on a quarterly basis.
The risk ranges from loans with no significant weaknesses in repayment capacity and collateral protection to 82 acceptable loans with one or more risk factors considered to be more than average.
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.
However, one or more unfavorable outcomes in any legal action against us could have a material adverse effect for the period in which they are resolved. In addition, regardless of their merits or their ultimate outcomes, such matters are costly, divert management’s attention and may materially adversely affect our reputation, even if resolved in our favor.
However, one or more unfavorable outcomes in any legal action against us could have a material adverse effect in the period in which they are resolved. In addition, regardless of their merits or their ultimate outcomes, such matters may be costly, divert management’s attention and may materially adversely affect our reputation, even if resolved in our favor.
The securities have a maturity of thirty years and are redeemable after five years with certain exceptions. Proceeds from this issuance were used to pay off trust preferred securities issued on December 19, 2002 through Colony Bankcorp Statutory Trust II. The Company is not in default of any outstanding Trust Preferred Securities as of December 31, 2024.
The securities have a maturity of thirty years and are redeemable after five years with certain exceptions. Proceeds from this issuance were used to pay off trust preferred securities issued on December 19, 2002 through Colony Bankcorp Statutory Trust II. The Company is not in default of any outstanding Trust Preferred Securities as of December 31, 2025.
These unrealized holding gains or losses are amortized into income over the remaining life of the security as an adjustment to the yield in a manner consistent with the amortization or accretion of the original purchase premium or discount on the associated security. 71 The amortization of premiums and accretion of discounts are recognized in interest income using methods approximating the interest method over the expected life of the securities.
These unrealized holding gains or losses are amortized into income over the remaining life of the security as an adjustment to the yield in a manner consistent with the amortization or accretion of the original purchase premium or discount on the associated security. 72 The amortization of premiums and accretion of discounts are recognized in interest income using methods approximating the interest method over the expected life of the securities.
For additional discussion of the Company's derivative instruments, see "Note 10 - Derivatives". 36 Reconciliation and Management Explanation of Non-GAAP Financial Measures Our accounting and reporting policies conform to generally accepted accounting principles (GAAP) in the United States and prevailing practices in the banking industry. However, certain non-GAAP measures are used by management to supplement the evaluation of our performance.
For additional discussion of the Company's derivative instruments, see "Note 11 - Derivatives". 36 Reconciliation and Management Explanation of Non-GAAP Financial Measures Our accounting and reporting policies conform to generally accepted accounting principles (GAAP) in the United States and prevailing practices in the banking industry. However, certain non-GAAP measures are used by management to supplement the evaluation of our performance.
The Company did not identify any credit-related losses in its held-to-maturity or available-for-sale portfolios at December 31, 2024. At December 31, 2024, there were no holdings of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10% of the Company’s stockholders’ equity.
The Company did not identify any credit-related losses in its held-to-maturity or available-for-sale portfolios at December 31, 2025. At December 31, 2025, there were no holdings of any one issuer, other than the U.S. government and its agencies, in an amount greater than 10% of the Company’s stockholders’ equity.
For loans that have elevated risk characteristics when compared to the collectively pooled loans, they are evaluated on an individual basis. 73 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.
For loans that have elevated risk characteristics when compared to the collectively pooled loans, they are evaluated on an individual basis. 74 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.
Retrospective application is required in all prior periods unless impracticable to do so. The Company adopted the new disclosure requirements for the annual period beginning on January 1, 2024 and will adopt for interim periods beginning on January 1, 2025. The adoption of this standard did not have a material impact on the Company's financial statements.
Retrospective application is required in all prior periods unless impracticable to do so. The Company adopted the new disclosure requirements for the annual period beginning on January 1, 2024 and for interim periods beginning on January 1, 2025. The adoption of this standard did not have a material impact on the Company's financial statements.
Management first evaluates whether they intend to sell or more likely than not will be required to sell a security wtih losses before recovering its amortized cost basis. If either criteria is met, the entire amount of unrealized loss is recognized in earnings with a 80 corresponding adjustment to the security's amortized cost basis.
Management first evaluates whether they intend to sell or more likely than not will be required to sell a security with losses 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.
Management believes, as of December 31, 2024, the Company meets all capital adequacy requirements to which it is subject under the regulatory framework for prompt corrective action. In the opinion of management, there are no conditions or events since prior notification of capital adequacy from the regulators that have changed the institution’s category.
Management believes, as of December 31, 2025, the Company meets all capital adequacy requirements to which it is subject under the regulatory framework for prompt corrective action. In the opinion of management, there are no conditions or events since prior notification of capital adequacy from the regulators that have changed the institution’s category.
Taxable-equivalent adjustments are the result of increasing income from tax-free loans and investments by an amount equal to the taxes that would be paid if the income were fully taxable based on a 21% federal tax rate for 2024 and 2023, thus making tax-exempt yields comparable to taxable asset yields.
Taxable-equivalent adjustments are the result of increasing income from tax-free loans and investments by an amount equal to the taxes that would be paid if the income were fully taxable based on a 21% federal tax rate for 2025 and 2024, thus making tax-exempt yields comparable to taxable asset yields.
During the year ended December 31, 2024, 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.
During the year ended December 31, 2025, 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.
Report of Independent Registered Accounting Firm Consolidated Balance Sheets - December 31, 202 4 and 202 3 Consolidated Statements of Income – Years ended December 31, 202 4 and 202 3 Consolidated Statements of Comprehensive Income – Years ended December 31, 202 4 and 202 3 Consolidated Statements of Changes in |Stockholders’ Equity– Years ended December 31, 202 4 and 202 3 Consolidated Statements of Cash Flows –Years ended December 31, 202 4 and 202 3 Notes to Consolidated Financial Statements (2) Financial Statements Schedules: All schedules are omitted as the required information is inapplicable or the information is presented in the financial statements or the related notes.
Report of Independent Registered Accounting Firm Consolidated Balance Sheets - December 31, 202 5 and 202 4 Consolidated Statements of Income – Years ended December 31, 202 5 and 202 4 Consolidated Statements of Comprehensive Income – Years ended December 31, 202 5 and 202 4 Consolidated Statements of Changes in |Stockholders’ Equity– Years ended December 31, 202 5 and 202 4 Consolidated Statements of Cash Flows –Years ended December 31, 202 5 and 202 4 Notes to Consolidated Financial Statements (2) Financial Statements Schedules: All schedules are omitted as the required information is inapplicable or the information is presented in the financial statements or the related notes.
Form 10-K Summary None. 116 SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, Colony Bankcorp, Inc. has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized: COLONY BANKCORP, INC. /s/ T. Heath Fountain T.
Form 10-K Summary None. 125 SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, Colony Bankcorp, Inc. has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized: COLONY BANKCORP, INC. /s/ T. Heath Fountain T.
See Note 3. Loans, for additional details on loan modifications. Foreclosed assets represent property acquired as the result of borrower defaults on loans. Foreclosed assets are recorded at estimated fair value, less estimated selling costs, at the time of foreclosure. Write-downs occurring at foreclosure are charged against the allowance for credit losses.
See Note 4. Loans, for additional details on loan modifications. Foreclosed assets represent property acquired as the result of borrower defaults on loans. Foreclosed assets are recorded at estimated fair value, less estimated selling costs, at the time of foreclosure. Write-downs occurring at foreclosure are charged against the allowance for credit losses.
The amortized cost and fair value of investment securities as of December 31, 2024, 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.
The amortized cost and fair value of investment securities as of December 31, 2025, 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.
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 December 31, 2024 and 2023.
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 December 31, 2025 and 2024.
There is also increased scrutiny of compliance with the rules enforced by OFAC related to U.S. 29 sanctions regimes.
There is also increased scrutiny of compliance with the rules enforced by OFAC related to U.S. sanctions regimes.
The adoption of this guidance resulted in a decrease of the allowance for credit losses on loans of $53,000, the creation of an allowance for unfunded commitments of $1.7 million and a reduction of retained earnings of $1.2 million, net of the increase in deferred tax assets of $410,000 as of December 31, 2023.
The adoption of this guidance resulted in a decrease of the allowance for credit losses on loans of $53,000, the creation of an allowance for unfunded commitments of $1.7 million and a reduction of retained earnings of $1.2 million, net of the increase in deferred tax assets of $410,000 as of December 31, 2024.
Leases with an initial term of 12 months or less are not recorded on the balance sheet. For these short-term leases, lease expense is recognized on a straight-line basis over the lease term. At December 31, 2024, the Company had no leases classified as finance leases.
Leases with an initial term of 12 months or less are not recorded on the balance sheet. For these short-term leases, lease expense is recognized on a straight-line basis over the lease term. At December 31, 2025, the Company had no leases classified as finance leases.
Potential common shares consist of restricted shares for the years ended December 31, 2024 and 2023, and are determined using the treasury stock method. The Company has determined that its outstanding non-vested stock awards are participating securities, and all dividends on these awards are paid similar to other dividends.
Potential common shares consist of restricted shares for the years ended December 31, 2025 and 2024, and are determined using the treasury stock method. The Company has determined that its outstanding non-vested stock awards are participating securities, and all dividends on these awards are paid similar to other dividends.
Material changes to these and other relevant factors may result in greater volatility to the provision for credit losses, and therefore, greater volatility to our reported earnings. See Notes 1 and 4, included elsewhere in this Form 10-K, for additional information on the allowance for credit losses and the allowance for unfunded commitments.
Material changes to these and other relevant factors may result in greater volatility to the provision for credit losses, and therefore, greater volatility to our reported earnings. See Notes 1 and 5, included elsewhere in this Form 10-K, for additional information on the allowance for credit losses and the allowance for unfunded commitments.
The effectiveness of the Company’s internal control over financial reporting as of December 31, 2024 has been audited by Mauldin and Jenkins, LLC, an independent registered public accounting firm, as stated in their report which appears herein. /s/ T. Heath Fountain T.
The effectiveness of the Company’s internal control over financial reporting as of December 31, 2025 has been audited by Mauldin and Jenkins, LLC, an independent registered public accounting firm, as stated in their report which appears herein. /s/ T. Heath Fountain T.
In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.
In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.
The legal and regulatory environment relating to AI is uncertain and rapidly evolving, both in the U.S. and internationally, and includes regulatory schemes targeted specifically at AI as well as provisions in intellectual property, privacy, consumer protection, employment, and other laws applicable to the use of AI.
The legal and regulatory environment relating to AI is uncertain and rapidly evolving, both in the U.S. and internationally, and includes regulatory schemes targeted specifically at AI as well as provisions in intellectual property, 25 privacy, security, consumer protection, employment, and other laws applicable to the use of AI.
The employees will have the right to vote all shares subject to such grant and receive all dividends with respect to such shares, whether or not the shares have vested. The following table presents the outstanding balance for restricted stock awards as of December 31, 2024 and 2023.
The employees will have the right to vote all shares subject to such grant and receive all dividends with respect to such shares, whether or not the shares have vested. The following table presents the outstanding balance for restricted stock awards as of December 31, 2025 and 2024.
Management’s assessment of the effectiveness of our internal control over financial reporting as of December 31, 2024 is included in Part II, Item 8 of this Report under the heading “Management’s Report on Internal Control Over Financial Reporting.” Our independent auditors have issued an audit report on management’s assessment of internal controls over financial reporting.
Management’s assessment of the effectiveness of our internal control over financial reporting as of December 31, 2025 is included in Part II, Item 8 of this Report under the heading “Management’s Report on Internal Control Over Financial Reporting.” Our independent auditors have issued an audit report on management’s assessment of internal controls over financial reporting.
These include the fully-taxable equivalent measures: tax-equivalent net interest income, tax-equivalent net interest margin and tax-equivalent net interest spread, which include the effects of taxable-equivalent adjustments using a statutory federal income tax rate of 21% to increase tax-exempt interest income to a tax-equivalent basis for the years ended December 31, 2024 and 2023.
These include the fully-taxable equivalent measures: tax-equivalent net interest income, tax-equivalent net interest margin and tax-equivalent net interest spread, which include the effects of taxable-equivalent adjustments using a statutory federal income tax rate of 21% to increase tax-exempt interest income to a tax-equivalent basis for the years ended December 31, 2025 and 2024.
There was no accrued interest related to debt securities reversed against interest income for the years ended December 31, 2024 and 2023. The Company evaluates available-for-sale securities in an unrealized loss position to determine if credit-related losses exists.
There was no accrued interest related to debt securities reversed against interest income for the years ended December 31, 2025 and 2024. The Company evaluates available-for-sale securities in an unrealized loss position to determine if credit-related losses exists.
Assets 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 December 31, 2024 and 2023, aggregated by the level in the fair value hierarchy within which those measurements fall.
Assets 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 December 31, 2025 and 2024, aggregated by the level in the fair value hierarchy within which those measurements fall.
As of December 31, 2024, the interim final Basel III rules (Basel III) require the Company to also maintain minimum amounts and ratios of common equity Tier 1 capital to risk weighted assets. These amounts and ratios as defined in regulations are presented hereafter.
As of December 31, 2025, the interim final Basel III rules (Basel III) require the Company to also maintain minimum amounts and ratios of common equity Tier 1 capital to risk weighted assets. These amounts and ratios as defined in regulations are presented hereafter.
As of December 31, 2024 and 2023, the Company had one industry, identified as Lessors of Non-Residential real estate, where the concentrations of loans was in excess of 10% of total loans, as segregated by Standard Industrial Classification code (“SIC code”).
As of December 31, 2025 and 2024, the Company had one industry, identified as Lessors of Non-Residential real estate, where the concentrations of loans was in excess of 10% of total loans, as segregated by Standard Industrial Classification code (“SIC code”).
Management has assessed the effectiveness of the internal control over financial reporting as of December 31, 2024. In making this assessment, we used the criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Management has assessed the effectiveness of the internal control over financial reporting as of December 31, 2025. In making this assessment, we used the criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Based on such evaluation, such officer has 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 Acting Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.
Based on such evaluation, such officers 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.
The Company does not intend to sell these investment securities in an unrealized loss position at December 31, 2024, and it is more likely than not that the Company will not be required to sell these securities prior to recovery or maturity.
The Company does not intend to sell these investment securities in an unrealized loss position at December 31, 2025, and it is more likely than not that the Company will not be required to sell these securities prior to recovery or maturity.
For the Company, Topic 842 primarily affected the accounting treatment for operating lease agreements in which the Company is the lessee. Substantially all of the leases in which the Company is the lessee are comprised of real estate for branches and office space with terms extending through 2028.
For the Company, Topic 842 primarily affected the accounting treatment for operating lease agreements in which the Company is the lessee. Substantially all of the leases in which the Company is the lessee are comprised of real estate for branches and office space with terms extending through 2040.
The Company’s policies generally require that standby letters of credit arrangements contain security and debt covenants similar to those contained in loan agreements. Standby letters of credit outstanding at December 31, 2024 are included in the preceding table.
The Company’s policies generally require that standby letters of credit arrangements contain security and debt covenants similar to those contained in loan agreements. Standby letters of credit outstanding at December 31, 2025 are included in the preceding table.
We have served as the Company’s auditor since 2021. /s/ Mauldin & Jenkins, LLC Albany, Georgia March 14, 2025 63 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Stockholders Colony Bankcorp, Inc. and Subsidiaries Fitzgerald, Georgia Opinion on Internal Control over Financial Reporting We have audited Colony Bankcorp, Inc. and Subsidiaries (the Company) internal control over financial reporting, as of December 31, 2024, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”).
We have served as the Company’s auditor since 2021. /s/ Mauldin & Jenkins, LLC Albany, Georgia March 13, 2026 63 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Stockholders Colony Bankcorp, Inc. and Subsidiaries Fitzgerald, Georgia Opinion on Internal Control over Financial Reporting We have audited Colony Bankcorp, Inc. and Subsidiaries (the Company) internal control over financial reporting, as of December 31, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”).
The total yield on interest-earning assets increased year over year with increases in loan and deposits in banks and short-term investments volume, partially offset by decreases in investment securities balances along with increased rates on loan and deposits in banks.
The total yield on interest-earning assets increased year over year with increases in loan and deposits in banks and 41 short-term investments volume, partially offset by decreases in investment securities balances along with increased rates on loans in banks.
Item 9A Controls and Procedures The Company’s Chief Executive Officer and Acting Chief Financial Officer has evaluated the Company’s 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.
Item 9A Controls and Procedures The Company’s Chief Executive Officer and Chief Financial Officer have evaluated the Company’s 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.
In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2024, based on the criteria established in Internal Control – Integrated Framework (2013) issued by COSO.
In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on the criteria established in Internal Control – Integrated Framework (2013) issued by COSO.
The Company minimizes its exposure to loss under these commitments by subjecting them to credit approval and monitoring procedures. Management assesses the credit risk associated with certain commitments to extend credit in determining the level of the allowance for credit losses. Loan commitments outstanding at December 31, 2024 are included in the preceding table. Standby Letters of Credit .
The Company minimizes its exposure to loss under these commitments by subjecting them to credit approval and monitoring procedures. Management assesses the credit risk associated with certain commitments to extend credit in determining the level of the allowance for credit losses. Loan commitments outstanding at December 31, 2025 are included in the preceding table. 55 Standby Letters of Credit .
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of Colony Bankcorp, Inc. and Subsidiaries (the “Company”) as of December 31, 2024 and 2023 and the related consolidated statements of income, comprehensive income, changes in stockholders’ equity, and cash flows for the years then ended, and the related notes to the consolidated financial statements (collectively, the financial statements) and our report dated March 14, 2025 expressed an unqualified opinion.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of Colony Bankcorp, Inc. and Subsidiaries (the “Company”) as of December 31, 2025 and 2024 and the related consolidated statements of income, comprehensive income, changes in stockholders’ equity, and cash flows for the years then ended, and the related notes to the consolidated financial statements (collectively, the financial statements) and our report dated March 13, 2026 expressed an unqualified opinion.
Dockery† -filed as Exhibit 99.2 to the Registrant’s Current Report on Form 8-K (File No. 000-12436), filed with the Commission on January 17, 2019 and incorporated herein by reference. 10.8 Separation and Release Agreement, Dated January 25, 2023, Between Colony Bank and Andrew Borrmann† -filed as Exhibit 10.2 to the Registrant’s Current Report on Form 8-K (File No. 000-12436), filed with the Commission on January 26, 2023 and incorporated herein by reference. 10.9 Employment Agreement, dated as of September 9, 2022, between Colony Bankcorp, Inc. and Max Edward Hoyle† -filed as Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q (File No. 000-12436), filed with the Commission on November 10, 2022 and incorporated herein by reference. 10.10 Employment Agreement, dated as of September 13 , 202 4 , between Colony Bank and R.
Dockery† -filed as Exhibit 99.2 to the Registrant’s Current Report on Form 8-K (File No. 000-12436), filed with the Commission on January 17, 2019 and incorporated herein by reference. 10.9 Separation and Release Agreement, Dated January 25, 2023, Between Colony Bank and Andrew Borrmann† -filed as Exhibit 10.2 to the Registrant’s Current Report on Form 8-K (File No. 000-12436), filed with the Commission on January 26, 2023 and incorporated herein by reference. 10.10 Employment Agreement, dated as of September 9, 2022, between Colony Bankcorp, Inc. and Max Edward Hoyle† -filed as Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q (File No. 000-12436), filed with the Commission on November 10, 2022 and incorporated herein by reference. 10.11 Employment Agreement, dated as of September 13, 2024, between Colony Bank and R.
In such instances, the Company generally requires 48 payment of accrued interest and may adjust the rate of interest, require a principal reduction or modify other terms of the loan at the time of renewal. Nonperforming Assets and Potential Problem Loans Asset quality experienced a slight decrease during the year ended December 31, 2024.
In such instances, the Company generally requires payment of accrued interest and may adjust the rate of interest, require a principal reduction or modify other terms of the loan at the time of renewal. Nonperforming Assets and Potential Problem Loans Asset quality experienced a slight decrease during the year ended December 31, 2025.
Overview The following discussion and analysis present the more significant factors affecting the Company’s financial condition as of December 31, 2024 and 2023 and results of operations for each of the two year-periods ended December 31, 2024.
Overview The following discussion and analysis present the more significant factors affecting the Company’s financial condition as of December 31, 2025 and 2024 and results of operations for each of the two year-periods ended December 31, 2025.
Description Date Amount Added Margin Total Interest Rate Maturity 5-Year Call Option (dollars in thousands) Colony Bankcorp Statutory Trust III June 16, 2004 $ 4,640 2.68% 7.29 % June 17, 2034 June 17, 2009 Colony Bankcorp Capital Trust I April 13, 2006 5,155 1.50% 6.09 % June 30, 2036 April 13, 2011 Colony Bankcorp Capital Trust II March 12, 2007 9,279 1.65% 6.24 % March 30, 2037 March 12, 2012 Colony Bankcorp Capital Trust III September 14, 2007 5,155 1.40% 6.25 % October 30, 2037 September 14, 2012 Total $ 24,229 The Trust Preferred Securities are recorded as subordinated debentures on the consolidated balance sheets and, subject to certain limitations, qualify as Tier 1 Capital for regulatory capital purposes.
Description Date Amount Added Margin Total Interest Rate Maturity 5-Year Call Option (dollars in thousands) Colony Bankcorp Statutory Trust III June 16, 2004 $ 4,640 2.68% 6.65 % June 17, 2034 June 17, 2009 Colony Bankcorp Capital Trust I April 13, 2006 5,155 1.50% 5.43 % June 30, 2036 April 13, 2011 Colony Bankcorp Capital Trust II March 12, 2007 9,279 1.65% 5.60 % March 30, 2037 March 12, 2012 Colony Bankcorp Capital Trust III September 14, 2007 5,155 1.40% 5.50 % October 30, 2037 September 14, 2012 Total $ 24,229 The Trust Preferred Securities are recorded as subordinated debentures on the consolidated balance sheets and, subject to certain limitations, qualify as Tier 1 Capital for regulatory capital purposes.
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