Colony Bankcorp Q3 operating EPS, net income rise yr/yr

Overview

• U.S. regional bank's Q3 operating EPS rose yr/yr, net income increased from prior year

• Loan growth slowed in Q3 as company prioritized pricing discipline in lending

• Company announced sale-leaseback of three branches to enhance liquidity and flexibility

Outlook

• Colony expects near-term loan growth to remain soft due to pricing discipline

• Company says margin improvement is expected from higher earning asset yields and consistent loan pricing

• Colony anticipates completing First Reliance integration and systems conversion in Q2 2027

Result Drivers

• NET INTEREST INCOME - Co said higher net interest income was driven by increased yields on earning assets and improved net interest margin

• NONINTEREST INCOME - Co reported higher noninterest income due to increased service charges, mortgage fee income, interchange fees, wealth advisor income, and an insurance gain related to a branch building fire

• SBA LENDING - Co said SBSL closed and sold more SBA loans in Q3 compared to prior quarter, contributing to specialty lending income

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Colony Bankcorp Inc is $24.63, about 20.7% above its October 27 closing price of $20.40

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads

• Oct 28 - First Reliance Bancshares Q3 net interest income up 4.6%

• Oct 28 - First US Bancshares Q3 EPS rises, net interest margin improves

• Oct 28 - Stock Yards Bancorp Q3 profit rises 20% on merger boost

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)