Colony Bankcorp (CBAN) has just wrapped up FY 2025 with Q4 total revenue of US$35.3 million and basic EPS of US$0.42, while trailing 12 month revenue came in at US$127.7 million and EPS at US$1.59. The company has seen revenue move from US$112.4 million to US$127.7 million on a trailing 12 month basis, with EPS over the same window going from US$1.36 to US$1.59. With a trailing net profit margin of 22.1% and analysts pointing to further earnings and revenue growth, the latest results give investors plenty to weigh around the durability of those margins.

See our full analysis for Colony Bankcorp.

With the headline numbers on the table, the next step is to set these results against the most widely held narratives about Colony Bankcorp and see which stories the data backs up and which ones start to look stretched.

3.14% net interest margin and growing loan book

• On a trailing 12 month basis, net interest margin sits at 3.14% with total loans at US$2.4b, compared with US$1.8b of loans a year earlier in the data.
• What is interesting for a bullish view that focuses on earnings power is that this 3.14% margin lines up with rising trailing 12 month net income of US$28.3 million and EPS of US$1.59. Quarterly net interest margin in FY 2025 moved from 2.93% in Q1 to 3.17% in Q3, which supports the idea that the core lending engine is contributing meaningfully to the profit trend.
  • Bulls who point to trailing earnings growth of 18.4% over the last year versus about 12% per year over five years can see that margins and the loan book size are both consistent with that pattern in the reported data.
  • The same data also shows quarterly revenue ranging from US$28.5 million to US$35.3 million across FY 2025, so the argument that profit growth sits on a reasonably broad base of interest income and fees has some backing in the numbers.

22.1% profit margin with rising annual profits

• Trailing 12 month net profit margin stands at 22.1%, with net income on that basis at US$28.3 million compared with US$23.9 million a year earlier in the data and revenue moving from US$112.4 million to US$127.7 million.
• Supporters of a bullish narrative around profitability can point out that this margin level sits alongside trailing EPS moving from US$1.36 to US$1.59, which heavily supports the idea that the bank is not just growing its top line but is also keeping a healthy share of those revenues as profit.
  • The step up in trailing 12 month net income from US$23.9 million to US$28.3 million, alongside a profit margin that is 22.1% versus 21.2% a year earlier in the data, fits the view that earnings quality has held up while the business has grown.
  • Because quarterly net income in FY 2025 ranges between US$5.8 million and US$8.0 million, the trailing figures help bulls argue that these are not one off spikes but part of a steady pattern spread across several reporting periods.

To see how this profit profile feeds into different long term storylines for the bank, you can read the full breakdown of bull, bear, and balanced views on the company. 📊 Read the full Colony Bankcorp Consensus Narrative.

P/E of 14.7x and DCF fair value check

• Colony Bankcorp trades on a P/E of 14.7x, compared with 11.7x for the US Banks industry average and 17.3x for the peer group in the data. The DCF fair value of US$18.86 sits slightly below the current share price of US$19.48 and below the single analyst price target of US$19.75.
• What stands out for investors weighing a more cautious narrative is that even with earnings growing about 12% per year over five years and 18.4% over the last year, the valuation metrics are mixed, with a premium to the broader US Banks industry on P/E and a share price that is modestly above the DCF fair value. This encourages investors to look closely at whether the forecast 24.3% earnings growth and 15.6% revenue growth are already partly reflected in the current multiples.
  • Critics also highlight smaller watchpoints such as the allowance for bad loans at 98% and shareholder dilution over the past year, which they see as reasons to compare the US$19.48 market price carefully with the US$18.86 DCF fair value rather than relying only on the earnings growth record.
  • On the other hand, the fact that the P/E is below the broader US market level of 19.1x in the data and below the 17.3x peer average can be used to argue that the price still leaves room for investors who are comfortable with the current risk and growth profile.

  Next Steps

  Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Colony Bankcorp's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

  See What Else Is Out There

  For all the strengths in Colony Bankcorp's earnings story, the combination of a premium P/E to the US Banks industry and a share price above the DCF fair value leaves some readers questioning how much upside is already priced in.

  If you are wary of paying up when the valuation signals look mixed, check out these 865 undervalued stocks based on cash flows to focus on companies where pricing and cash flow estimates line up more comfortably.

  This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.