Question · Q4 2025
Christopher Marinak of Janney asked about the small business lending (SBSL) division's risk-adjusted returns, potential for higher charge-offs, and its future contribution to earnings. He also inquired about Colony Bankcorp's M&A strategy, specifically regarding competition for targets versus negotiated transactions, and the outlook for new hires in lending and deposits.
Answer
Heath Fountain, CEO, initiated the discussion on SBSL's high-risk, high-return nature, with Brantley Collins, Head of Investor Relations, elaborating on the variability of income, strong ROE contribution, and expected improvement from the current run rate. For M&A, Brantley Collins emphasized a preference for negotiated deals focused on partnership, acknowledging less aggressive pricing in competitive bid situations. Regarding hiring, Brantley Collins noted an opportunistic approach for one-off hires, particularly those displaced by M&A, rather than a large-scale hiring spree.
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