KBRA Comments on Colony Bankcorp, Inc.'s Proposed Acquisition of TC Bancshares, Inc.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 25 2025
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Source: Yahoo Finance
Merger Announcement: Colony Bankcorp, Inc. and TC Bancshares have entered into a definitive agreement for an $86.1 million merger, expected to close in Q4 2025 pending regulatory approval, which will enhance Colony's market presence in Georgia and Florida.
Financial Impact: The merger is projected to add approximately $571 million in assets to Colony's balance sheet, improve profitability through cost savings, and maintain strong credit quality with a complementary loan portfolio.
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About CBAN
Colony Bankcorp, Inc. is the bank holding company for Colony Bank (the Bank). The Bank operates locations throughout Georgia as well as in Birmingham, Alabama; Tallahassee, Florida; and the Florida Panhandle. It offers a range of banking solutions for personal and business customers. Its segments include Bank, Mortgage Banking, and Small Business Specialty Lending Division. The Bank segment offers full-service financial services, including retail and commercial banking services and deposit accounts. The Mortgage Banking segment is involved in the origination and sales of residential mortgage loans held for sale. The Small Business Specialty Lending Division segment is engaged in the origination, sales and servicing of Small Business Administration loans and other government-guaranteed loans. It offers specialized solutions that include mortgage lending, government guaranteed lending, consumer insurance, wealth management, credit cards and merchant services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Colony Bankcorp Reports Strong Q4 2025 Earnings and Merger Progress
- Merger Progress: Colony Bankcorp completed the legal close of its merger with TC Federal in early December, projecting a 1.20% return on assets (ROA) by Q2 2026, which will lay a solid foundation for future growth.
- Financial Performance: Operating net income increased by $675,000 in Q4 compared to Q3, driven by net interest margin expansion and strong noninterest income, demonstrating the company's competitive edge and profitability in the market.
- Loan Growth Outlook: Core loan growth was 10.5% in 2025, although loan growth for 2026 is expected to be at the lower end of the 8% target due to increased competition, reflecting challenges in the market environment.
- Dividend Increase: The Board declared an increase in the quarterly dividend to $0.12 per share, up $0.02 annualized, indicating the company's confidence in future cash flows and commitment to shareholder returns.
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Colony Bankcorp Announces Quarterly Dividend Increase
- Dividend Increase: Colony Bankcorp declared a quarterly dividend of $0.12 per share, reflecting a 4.3% increase from the previous $0.115, indicating ongoing improvements in profitability and cash flow management, which enhances investor confidence.
- Yield Overview: The forward yield of 2.59% not only provides shareholders with stable returns but also has the potential to attract more income-seeking investors, thereby improving the stock's market performance.
- Record Date for Shareholders: The dividend will be payable on February 25, with a record date of February 11 and an ex-dividend date also on February 11, ensuring shareholders receive their dividends promptly, which further solidifies shareholder loyalty.
- Merger Progress: Colony Bankcorp and TC Bancshares have received regulatory and shareholder approvals for their merger, marking a significant step in expanding market share and enhancing competitiveness, which is expected to lay the groundwork for future growth.
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