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SEC filingColony Bankcorp, Inc. reported net income of $28.3 million for FY 2025, an increase from $23.9 million in FY 2024. Key drivers included net interest income of $91.9 million, up from $76.1 million, and total noninterest income of $40.3 million, slightly up from $39.4 million. The provision for credit losses increased to $4.5 million from $3.1 million. Total assets grew to $3.74 billion from $3.11 billion, primarily due to the acquisition of TC Bancshares, Inc. in December 2025, which contributed to a significant increase in shareholders' equity to $375.9 million from $278.7 million. The company maintained strong regulatory capital ratios, with a Tier 1 ratio of 13.60% and a total risk-based capital ratio of 15.95%, well above regulatory minimums. Net cash provided by operating activities was negative $5.5 million, while financing activities provided $28.7 million, leading to a net increase in cash and cash equivalents of $26.6 million.
Colony Bankcorp, Inc. reported FY 2025 net income of $28.3 million, an 18.4% increase from $23.9 million in FY 2024. This growth was primarily driven by a 20.8% increase in net interest income to $91.9 million, up from $76.1 million, reflecting higher interest income from loans and investment securities. Total interest income rose to $150.0 million from $137.2 million, while interest expense decreased to $58.1 million from $61.2 million. Noninterest income remained relatively stable at $40.3 million compared to $39.4 million. The provision for credit losses increased to $4.5 million from $3.1 million, reflecting higher net charge-offs and the adoption of ASU 2025-08, which added $4.6 million to the allowance. Noninterest expense increased to $92.5 million from $82.8 million, partly due to acquisition-related expenses of $2.1 million. The effective tax rate was approximately 19.6%.
Revenue growth was concentrated in net interest income, which benefited from higher loan balances and investment securities yields. Loan interest income increased to $124.3 million from $111.7 million, while investment securities income decreased slightly to $19.4 million from $21.0 million. Noninterest income components showed mixed results: service charges on deposits were $9.7 million, mortgage fee income was $7.5 million, gain on sales of SBA loans was $5.4 million (down from $9.2 million), and interchange fees were $8.4 million. The company's segment performance varied, with the Bank segment generating $26.3 million in net income (up 45.0%), the Mortgage Banking segment $0.4 million (up 43.5%), and the Small Business Specialty Lending Division $1.5 million (down 72.2%). The decline in the latter segment was due to lower gain on sales of SBA loans.
Operating margin (income before taxes as a percentage of total revenue) was 15.7% for FY 2025. Net interest margin improved as net interest income grew faster than average earning assets. The efficiency ratio (noninterest expense as a percentage of net interest income plus noninterest income) was approximately 69.9%, indicating moderate cost management. Salaries and employee benefits, the largest expense component, increased to $52.4 million from $49.8 million. Information technology expense rose to $10.7 million from $9.0 million, reflecting ongoing investments. The provision for credit losses of $4.5 million represented 0.19% of average loans, up from 0.17% in FY 2024, due to higher net charge-offs and accounting changes.
Net cash used in operating activities was $5.5 million, primarily due to originations of loans held for sale exceeding proceeds. Investing activities provided $3.4 million, mainly from net proceeds from investment securities activities. Financing activities provided $28.7 million, driven by net increases in deposits and borrowings. Total assets increased 20.1% to $3.74 billion, with loans net of allowance growing to $2.36 billion from $1.82 billion. Total deposits rose to $3.07 billion from $2.57 billion. Shareholders' equity increased to $375.9 million from $278.7 million, largely due to the issuance of common stock for the TC Bancshares acquisition. The allowance for credit losses was $23.0 million, covering 0.97% of total loans and 98.04% of nonperforming loans. Liquidity remained adequate with cash and cash equivalents of $257.6 million and available borrowing capacity.
Management believes funding sources are adequate to meet liquidity needs. The company focuses on core deposit generation and uses alternative funding sources like FHLB advances and brokered deposits as needed. Interest rate sensitivity analysis indicates an asset-sensitive position, with net interest income projected to increase in a rising rate environment. Key risks include credit quality deterioration, with nonperforming assets increasing to 0.66% of total assets, and exposure to real estate concentrations (84.5% of loans). Cybersecurity and regulatory compliance remain priorities. The acquisition of TC Bancshares is expected to enhance market presence in Georgia and Florida. No specific quantitative guidance for FY 2026 is provided, but management emphasizes prudent risk management and growth in core banking relationships.