Colony Bankcorp (CBAN) is a Georgia-based state commercial bank with total assets of $3.72 billion and total liabilities of $3.34 billion as of March 31, 2026, implying book equity of approximately $380 million. Under a liquidation lens, recovery to equity is structurally constrained by the standard bank balance sheet configuration: most assets are loans and securities with real, though not catastrophic, haircut risk, while liabilities are carried at face value. Cash and equivalents of $295.8 million recover at par. The loan portfolio gross of allowances stands at $2.41 billion, dominated by commercial real estate ($1.55 billion combined fixed and floating) and residential real estate ($483 million). Applying a 60-70% recovery haircut to the non-performing and classified portion and a more moderate 85-90% blended rate to the performing CRE book (reflecting liquidation-specific bid-ask spreads) produces meaningful slippage against book. Nonaccrual loans declined to $17.6 million (from $23.4 million at December 31, 2025), and nonperforming assets dropped to $19.9 million (0.53% of total assets), both positive directional moves that narrow the tail risk. The allowance for credit losses on loans is $21.7 million, or 0.90% of gross loans — down from 1.04% a year prior, partly attributable to a $1.1 million downward adjustment on acquired loans. Net charge-offs in Q1 2026 were $1.71 million ($1.79 million gross), a 2.8x increase over Q1 2025, with 55% originating in the SBSL (Small Business Specialty Lending) portfolio. AFS securities carry a $29.9 million unrealized loss embedded in AOCI (tag AccumulatedOtherComprehensiveIncomeLossNetOfTax = -$34.1 million), and HTM securities show a further $34.0 million unrecognized mark-to-market loss — neither runs through equity currently but both represent real haircut exposure in a forced liquidation. Goodwill of $63.0 million and other intangibles of $7.4 million are zeroed under the lens. FHLB advances total $195.0 million; subordinated and other long-term debt totals $63.2 million; and deposits stand at $3.05 billion at face value, all staying at par on the liability stack. The TC Bancshares acquisition closed December 1, 2025; integration is ongoing, and a $826K goodwill purchase accounting adjustment appeared in Q1 2026. The filing does not separately XBRL-tag the SBSL charge-off detail or the trust preferred securities obligation (referenced in MD&A liquidity section as a cash requirement), though these are discussed in narrative. Capital ratios remain well above regulatory minimums: consolidated CET1 of 12.53%, total risk-based capital of 15.75%. Liquidation net recovery to equity would be materially negative relative to book given the aggregate forced-sale haircut on $2.4B in loans plus $63M goodwill wipeout, partially offset by the $296M cash position recovering at full value and the strong capital buffer relative to peer minimums.
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