Colony Bankcorp Reports 36.5% Increase in Q2 Net Income to $10.9 Million

Colony Bankcorp, Inc. reported a net income of $10.9 million, or $0.51 per diluted share, for the second quarter of 2026, reflecting a 36.5% increase from $8.0 million, or $0.46 per diluted share, in the same period of 2025. For the first half of 2026, net income reached $19.1 million, or $0.90 per diluted share, compared to $14.6 million, or $0.83 per diluted share, for the first half of 2025. The growth in profitability was primarily driven by increased interest income from loans and higher noninterest income, which were partially offset by rising interest expenses and operational costs, including those related to the acquisition of TC Bancshares in December 2025.

Total assets for Colony Bankcorp stood at $3.6 billion as of June 30, 2026, a decrease from $3.7 billion at the end of 2025. The company’s loan portfolio increased to $2.46 billion, up 3.5% from $2.38 billion at year-end 2025, with significant contributions from commercial real estate and residential real estate loans. The allowance for credit losses on loans was $22.0 million, representing 0.89% of total loans, down from 0.97% at the end of the previous year. The provision for credit losses for the second quarter was $1.9 million, compared to $450,000 in the same quarter of 2025, reflecting a rise in net charge-offs primarily in the Small Business Specialty Lending portfolio.

Colony Bankcorp's noninterest income for the second quarter of 2026 was $12.2 million, a 20.4% increase from $10.1 million in the same quarter of 2025. This growth was attributed to higher service charges on deposits, mortgage fee income, and insurance commissions, among other factors. Conversely, the company’s noninterest expenses rose to $26.4 million for the second quarter, a 20.1% increase from $22.0 million in the prior year, driven by higher salaries and employee benefits, occupancy costs, and acquisition-related expenses.

In terms of strategic developments, Colony Bankcorp announced its agreement to acquire First Reliance Bancshares, Inc. in a transaction valued at approximately $163 million. This merger, expected to close in the fourth quarter of 2026, aims to enhance the company's asset base to approximately $5 billion and is anticipated to be accretive to earnings per share. The company continues to maintain a strong liquidity position, with available funding sources of approximately $1.8 billion as of June 30, 2026, and remains well-capitalized under regulatory standards, exceeding all required capital ratios.