EX-99.4 6 tm2532053d1_ex99-4.htm EXHIBIT 99.4

 

Exhibit 99.4

 

 

UNAUDITED PRO FORMA COMBINED FINANCIAL INFORMATION

 

The following unaudited pro forma combined financial information is based on the historical consolidated financial statements of Colony Bankcorp, Inc. (“Colony”) and TC Bancshares, Inc. (“TCBC”) and are adjusted to give effect to the merger of TCBC with and into Colony on December 1, 2025 (the “Merger”). The unaudited pro forma combined consolidated balance sheet as of September 30, 2025 is presented as if the merger had occurred on September 30, 2025. The unaudited pro forma combined consolidated condensed statements of income for the year ended December 31, 2024 and for the nine month period ended September 30, 2025 are presented as if the merger had occurred on January 1, 2024.

 

The unaudited pro forma combined financial information gives effect to the acquisition of TCBC as business combinations under GAAP. Accordingly, all assets and liabilities were recorded at estimated fair value. Pro forma adjustments are included only to the extent they are (i) directly attributable to the acquisition, (ii) factually supportable and (iii) with respect to unaudited pro forma combined consolidated condensed statements of income, expected to have a continuing impact on the combined results. The pro forma adjustments are based on estimates made for the purpose of preparing these pro forma statements and are described in the accompanying notes. Colony’s management believes that the estimates used in these pro forma financial statements are reasonable under the circumstances.

 

The pro forma adjustments included herein are subject to change as additional information becomes available and additional analyses are performed. The final allocation of the purchase price will be determined after further valuation analyses under GAAP are performed with respect to the fair values of certain tangible and intangible assets and liabilities as of the date of acquisition. The final adjustments may be materially different from the unaudited pro forma adjustments presented herein. In addition, the pro forma financial statements do not include the effects of any potential cost savings which management believes will result from combining certain operating procedures.

 

Colony anticipates that the acquisition of TCBC will provide the combined company with the ability to better serve its customers, reach new customers and reduce operating expenses. In addition, certain subjective estimates have been utilized in determining the pro forma adjustments applied to the historical results of operations of TCBC. The pro forma information, while helpful in illustrating the financial characteristics of the combined company under one set of assumptions, does not reflect the benefits of expected cost savings or opportunities to earn additional revenue and, accordingly, does not attempt to predict or suggest future results. It also does not necessarily reflect what the historical results of the combined company would have been had Colony and TCBC been combined during these periods.

 

The unaudited pro forma combined financial information is provided for informational purposes only. The unaudited pro forma combined financial information is not necessarily, and should not be assumed to be, an indication of the results that would have been achieved had the mergers been completed as of the dates indicated or that may be achieved in the future. The preparation of the unaudited pro forma combined financial information and related adjustments required management to make certain assumptions and estimates. The unaudited pro forma combined financial information has been derived from, and should be read in conjunction with, the historical consolidated financial statements and related notes included in Colony’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and Colony’s Quarterly Report on Form 10-Q for the nine months ended September 30, 2025, as well as TCBC’s historical consolidated financial statements and related notes for the year ended December 31, 2024 and for the nine months ended September 30, 2025 which are included as Exhibit 99.2 and Exhibit 99.3, respectively, to this Current Report filed on Form 8-K.

 

 

 

 

COLONY BANKCORP, INC. AND SUBSIDIARIES

UNAUDITED PRO FORMA COMBINED CONSOLIDATED BALANCE SHEET

AS OF SEPTEMBER 30, 2025
 (all amounts are in thousands)

 

   Colony
Historical		   TCBC Historical   Combined   Pro Forma Adjustments   Notes   Pro Forma Combined 
ASSETS                        
Cash and due from banks  $25,291   $2,279   $27,570   $(21,334)   A    $6,236 
Fed Funds sold   1,494    -    1,494    -         1,494 
Interest-bearing deposits in banks   173,181    30,275    203,456    -         203,456 
Cash and cash equivalents   199,966    32,554    232,520    (21,334)        211,186 
Investment securities available-for-sale, at fair value   305,259    93,875    399,134    -         399,134 
Investment securities, held-to-maturity, at amortized cost   389,135    -    389,135    -         389,135 
Other investments   17,999    1,982    19,981    -         19,981 
Loans held for sale   19,286    0    19,286    -         19,286 
Loans   2,037,056    413,062    2,450,118    (14,288)   B    2,435,830 
Allowance for Credit Losses   (18,086)   (5,014)   (23,100)   1,222    C    (21,878)
Loans, net   2,018,970    408,048    2,427,018    (13,066)        2,413,952 
Premises and equipment   35,604    5,971    41,575    (2,318)   D    39,257 
Other real estate owned   710    -    710    -         710 
Goodwill   50,871    -    50,871    3,871    E    54,742 
Other intangible assets   3,544    -    3,544    11,518    F    15,062 
Bank-owned life insurance   59,207    12,337    71,544    -         71,544 
Other assets   52,195    4,842    57,037    -         57,037 
Total Assets   3,152,746    559,609    3,712,355    (21,329)        3,691,026 
LIABILITIES AND STOCKHOLDERS’ EQUITY                              
Liabilities:                              
Deposits                              
Noninterest Bearing  $442,142   $57,065   $499,207   $-        $499,207 
Interest Bearing   2,142,187    408,659    2,550,846    (1,694)   G    2,549,152 
Total Deposits   2,584,329    465,724    3,050,053    (1,694)        3,048,359 
Federal Home Loan Bank advances   185,000    10,000    195,000    -         195,000 
Other borrowings   63,109    -    63,109    -         63,109 
Other liabilities   17,976    6,166    24,142    667    H    24,809 
Total Liabilities   2,850,414    481,890    3,332,304    (1,027)        3,331,277 
Stockholders' equity:                              
Common stock   17,461    40    17,501    3,792    I    21,293 
Paid in capital   167,096    39,803    206,899    19,252    J    226,151 
Retained earnings (Accumulated deficit)   154,748    41,805    196,553    (47,275)   K    149,278 
Accumulated other comprehensive income, net of taxes   (36,973)   (794)   (37,767)   794    L    (36,973)
Unearned ESOP   -    (3,135)   (3,135)   3,135    M    - 
Total Stockholders’ Equity   302,332    77,719    380,051    (20,302)        359,749 
Total Liabilities and Stockholders’ Equity  $3,152,746   $559,609   $3,712,355   $(21,329)       $3,691,026 
   $3,152,746   $559,609   $3,712,355                

 

A.Includes cash consideration paid to TC Bancshares, cash out value of 407,510 stock options with a weighted average exercise price of $14.77, TC Bancshares transaction costs, and proceeds from sale of buildings.
B.Reflects purchase accounting adjustment to record TC Bancshares' loans at fair value, as well as the credit related adjustment for non-purchased credit-deteriorated (“non-PCD”) loans.
C.Adjustment of TC Bancshares' Allowance for Credit Losses ("ACL") to reflect elimination of TC Bancshares' ACL at closing, reflect gross-up for estimated lifetime credit losses on purchase credit deteriorated ("PCD") loan, and reflect estimated lifetime credit losses on non-PCD loans.
D.Adjustment to reflect sale of TC Bancshares' buildings through sales-leaseback and fair value of equipment acquired, net
E.Adjustment to record estimated goodwill associated with the merger.
F.Adjustment to record an estimated core deposit intangible of $11.5 million related to the merger.
G.Adjustment to record estimated fair value adjustments on acquired certificates of deposits
H.Adjustment to recognize net deferred tax liability associated with the fair value adjustments recorded in the merger.
I.Adjustments to common stock to eliminate TC Bancshares' common stock of $40 thousand par value and record the issuance of Colony common stock to TC Bancshares' common shareholders of $3.8 million par value
J.Adjustments to paid in capital to eliminate TC Bancshares' capital surplus of $39.8 million and record the issuance of Colony common stock in excess of par value to TC Bancshares' common shareholders of $59.1 million.
K.Adjustments to eliminate TC Bancshares' retained earnings of $41.8 million offset by purchase accounting adjustments included herein.
L.Adjustment to eliminate TC Bancshares' accumulated other comprehensive loss of $794 thousand.
M.Adjustment to eliminate TC Bancshares' unearned ESOP

 

 

 

 

COLONY BANKCORP, INC. AND SUBSIDIARIES

UNAUDITED PRO FORMA COMBINED CONSOLIDATED CONDENSED STATEMENT OF INCOME

FOR THE YEAR ENDED DECEMBER 31, 2024

(all amounts are in thousands, except per share data)

 

   Colony Historical   TCBC Historical   Pro Forma Adjustments   Notes   Pro Forma Combined 
Interest income                         
Loans, including fees  $111,675   $22,578   $4,153    A   $138,406 
Deposits with other banks and short term investments   4,592    1,230    (971)   B    4,851 
Investment securities   20,974    2,471    298    C    23,743 
Total interest income   137,241    26,279    3,480         167,000 
Interest expense                         
Deposits   50,007    11,115    847    D    61,969 
Interest on borrowed funds   11,158    592    -         11,750 
Total interest expense   61,165    11,707    847         73,719 
Net interest income   76,076    14,572    2,633         93,281 
Provision for loan losses   3,050    (56)   1,896    E    4,890 
Net interest income after provision for loan losses   73,026    14,628    737         88,391 
Noninterest income                         
Service charges on deposit accounts   9,365    438    -         9,803 
Mortgage fee income   6,048    164    -         6,212 
Loss on sale of securities   (1,835)   -    -         (1,835)
BOLI income   1,725    327    -         2,052 
Other noninterest income   24,072    33    -         24,105 
Total noninterest income   39,375    962    -         40,337 
Noninterest expense                         
Salaries and employee benefits   49,767    8,521    -         58,288 
Occupancy and equipment   6,149    1,426    400    F    7,975 
Amortization of intangibles   1,217    -    1,263    G    2,480 
Acquisition related expenses   -    -    -    H    - 
Other noninterest expense   25,701    4,862    -         30,563 
Noninterest expense   82,834    14,809    1,663         99,306 
Income before income taxes   29,567    781    (926)        29,422 
Income taxes   5,699    186    1,765    I    7,650 
Net Income  $23,868   $595   $(2,691)       $21,772 
Net income per share of common stock                         
Basic  $1.36   $0.14             $1.01 
Diluted  $1.36   $0.14             $1.01 
Weighted average shares outstanding, basic   17,557,743    4,234,675    (402,422)   J    21,389,996 
Weighted average shares outstanding, diluted   17,557,743    4,253,313    (421,060)   J    21,389,996 

 

A.Adjustment to interest income to record the estimated accretion for the net discount on acquired loans and leases.
B.Adjustment represents lost interest on cost of cash on the cash consideration paid at merger close.
C.Adjustment reflects the yield adjustment for interest income on investment securities
D.Adjustment reflects yield adjustment for interest expense on time deposits
E.Adjustment to record provision for credit losses on non-PCD acquired loans.
F.Adjustment for increase lease expense through sales-leaseback transaction, net of reduced deprecation expense for sold buildings
G.Adjustment reflects the net increase in amortization of other intangible assets for the acquired core deposit intangible asset.
H.Colony expects to incur one-time merger related charges, however, these are not reflected in the pro forma income statements. Colony has preliminarily estimated its after-tax transaction expenses related to the merger with TCBC at approximately $3.4 million. TCBC’s preliminary estimated transaction expenses related to the merger, net of tax, are approximately $5.1 million. Both Colony’s and TCBC’s estimated transaction expenses remain preliminary and are expected to be refined as the companies evaluate personnel, benefit plans, facilities, equipment, and service contracts to identify potential redundancies.
I.Income taxes were adjusted to reflect the tax effects of TC Bancshares' being taxed using Colony’s Federal and State statutory rate of 26%.
J.Adjustment to weighted - average shares of Colony's stock to reflect elimination of TC Bancshares' common stock outstanding and to reflect the estimated number of shared of Colony; common stock to be issues to holders of TC Bancshares' common stock using the exchange ratio of 1.250

 

 

 

  

COLONY BANKCORP, INC. AND SUBSIDIARIES

UNAUDITED PRO FORMA COMBINED CONSOLIDATED CONDENSED STATEMENT OF INCOME

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025

(all amounts are in thousands, except per share data)

 

   Colony Historical   TCBC Historical   Pro Forma Adjustments   Notes   Pro Forma Combined 
Interest income                         
Loans, including fees  $89,872   $18,464   $3,115    A   $111,451 
Deposits with other banks and short term investments   4,487    700    (728)   B    4,459 
Investment securities   14,893    3,122    224    C    18,239 
Total interest income   109,252    22,286    2,611         134,149 
Interest expense                         
Deposits   34,737    8,875    635    D    44,247 
Interest on borrowed funds   8,479    407    -         8,886 
Total interest expense   43,216    9,282    635         53,133 
Net interest income   66,036    13,004    1,976         81,016 
Provision for loan losses   2,850    (195)   0         2,655 
Net interest income after provision for loan losses   63,186    13,199    1,976         78,361 
Noninterest income                         
Service charges on deposit accounts   7,031    326    -         7,357 
Mortgage fee income   5,414    120    -         5,534 
(Loss) gain on sale of securities   (1,039)   -    -         (1,039)
BOLI income   1,215    281    -         1,496 
Other noninterest income   16,612    25    -         16,637 
Total noninterest income   29,233    752    -         29,985 
Noninterest expense                         
Salaries and employee benefits   38,302    6,858    -         45,160 
Occupancy and equipment   4,995    1,048    300    E    6,343 
Amortization of intangibles   836    -    1,158    F    1,994 
Acquisition related expenses   732    659    (1,391)   G    - 
Other noninterest expense   21,972    3,543    -         25,515 
Noninterest expense   66,837    12,108    67         79,012 
Income before income taxes   25,582    1,843    1,909         29,334 
Income taxes   5,172    430    2,025    H    7,627 
Net Income  $20,410   $1,413   $(116)       $21,707 
Net income per share of common stock                         
Basic  $1.17   $0.35             $1.02 
Diluted  $1.17   $0.35             $1.02 
Weighted average shares outstanding, basic   17,472,972    4,017,595    (185,342)   I    21,305,225 
Weighted average shares outstanding, diluted   17,472,972    4,060,956    (228,703)   I    21,305,225 

 

A.Adjustment to interest income to record the estimated accretion for the net discount on acquired loans and leases.
B.Adjustment represents lost interest on cost of cash on the cash consideration paid at merger close.
C.Adjustment reflects the yield adjustment for interest income on investment securities
D.Adjustment reflects yield adjustment for interest expense on time deposits
E.Adjustment for increase lease expense through sales-leaseback transaction, net of reduced deprecation expense for sold buildings
F.Adjustment reflects the net increase in amortization of other intangible assets for the acquired core deposit intangible.
G.Colony expects to incur one-time merger related charges, however, these are not reflected in the pro forma income statements. Colony has preliminarily estimated its after-tax transaction expenses related to the merger with TCBC at approximately $3.4 million. TCBC’s preliminary estimated transaction expenses related to the merger, net of tax, are approximately $5.1 million. Both Colony’s and TCBC’s estimated transaction expenses remain preliminary and are expected to be refined as the companies evaluate personnel, benefit plans, facilities, equipment, and service contracts to identify potential redundancies.
H.Income taxes were adjusted to reflect the tax effects of TC Bancshares' being taxed using Colony’s Federal and State statutory rate of 26%.
I.Adjustment to weighted - average shares of Colony's stock to reflect elimination of TC Bancshares' common stock outstanding and to reflect the estimated number of shared of Colony; common stock to be issues to holders of TC Bancshares' common stock using the exchange ratio of 1.250