Georgia Banking Company Reports 2026 Third-Quarter Earnings (Form 8-K)

Georgia Banking Company Reports 2026 Third-Quarter Earnings

Third Quarter 2026 Results and the First Full Quarter of Combined Operations Following the Tandem Bancorp, Inc. Merger

ATLANTA, Ga., October 28, 2026 /ACCESS Newswire/ -- Georgia Banking Company, Inc. ("GBC" or the "Company"), the holding company for Georgia Banking Company (the "Bank"), today reported net income of $6.3 million, or $0.57 per diluted common share, for the third quarter of 2026, compared with net income of $5.6 million, or $0.60 per diluted common share, for the second quarter of 2026. Third-quarter 2026 results included $2.0 million of direct listing expenses and $493 thousand of merger and acquisition expenses, each before taxes.

"Our third-quarter results reflect the strength of our core banking franchise, the execution of our growth strategy and the investments we have made in our people and capabilities," said Bartow Morgan, Jr., Chief Executive Officer of GBC. "We continue to see attractive opportunities across our markets while maintaining a disciplined approach to credit, liquidity and capital. As our shares prepare to begin trading on the Nasdaq Capital Market, our priorities remain clear: deliver exceptional service to our clients, generate sustainable and profitable growth and create long-term value for our shareholders."

2026 Third Quarter Highlights:

Results of Operations for the Three Months Ended September 30, 2026

Net Interest Income and Net Interest Margin

For the three months ended September 30, 2026, net interest income before provision for credit losses was $31.4 million and net interest margin was 4.17% compared to $29.1 million and 4.31%, respectively, for the three months ended June 30, 2026. The approximately $2.3 million increase, or 8.0%, in net interest income before provision for credit losses was primarily due to a $4.6 million increase in interest income on loans held for investment, including fees, a $1.2 million increase in interest income on deposits with banks and federal funds sold and a $1.2 million decrease in interest expense on FHLB advances. The increase was partially offset by a $2.7 million increase in interest expense on transaction and savings accounts and a $1.6 million decrease in interest income on loans held for sale. Net interest margin decreased 14 basis points compared to the three months ended June 30, 2026 primarily due to an increase in interest expense on other borrowed funds as a result of restructuring our subordinated debt during the three months ended September 30, 2026.

Compared to the three months ended September 30, 2025, net interest income before provision for credit losses for the three months ended September 30, 2026 increased by $4.0 million, or 14.8%. The increase was primarily due to a $5.7 million increase in interest income on loans held for investment, including fees, a $2.0 million decrease in interest expense on FHLB advances and a $1.0 million increase in interest-bearing deposits with banks. The increase was partially offset by a $2.5 million increase in interest expense on transaction and savings accounts and a $2.4 million decrease in interest income on loans held for sale. Net interest margin decreased 20 basis points compared to the three months ended September 30, 2025 primarily due to a decrease in loan yields.

Noninterest Income

Noninterest income was $2.8 million for the three months ended September 30, 2026, a decrease of $451 thousand, or 13.8%, from the three months ended June 30, 2026. The decrease was primarily due to a $342 thousand decrease in mortgage banking activity.

Compared with the three months ended September 30, 2025, noninterest income increased $1.0 million, or 57.1%. The increase primarily reflected a $672 thousand increase in gain on sale of loans, a $298 thousand increase in service charges and fees, and a $286 thousand increase in mortgage banking activity, partially offset by decreases in other noninterest income categories.

Noninterest Expense

Noninterest expense was $23.8 million for the three months ended September 30, 2026, compared to $23.7 million for the three months ended June 30, 2026, an increase of $104 thousand, or 0.4%. Excluding direct listing and merger and acquisition expenses, the change included a $717 thousand increase in salaries and employee benefits, primarily related to employees retained in connection with the Tandem acquisition and hiring associated with the Company's direct listing on Nasdaq.

Compared to the three months ended September 30, 2025, noninterest expense increased $5.3 million, or 29.0%. Excluding direct listing and merger and acquisition expenses, the increase primarily reflected a $1.8 million increase in salaries and employee benefits, primarily related to employees retained in connection with the Tandem acquisition and hiring associated with the Company's direct listing on Nasdaq, and an $859 thousand increase in communications, data processing and equipment expense.

Financial Condition

Total loans, net, were $2.56 billion at September 30, 2026, an increase of $1.1 million from June 30, 2026. The change reflected $128.8 million of growth in loans held for investment, largely offset by a $126.5 million decrease in loans held for sale and the effect of related netting items included in total loans, net.

Total deposits were $2.70 billion at September 30, 2026, a decrease of $136.2 million from June 30, 2026. The decrease reflected a $171.8 million decline in interest-bearing deposits, partially offset by a $35.6 million increase in noninterest-bearing deposits.

Credit Quality

Nonperforming assets totaled $22.1 million, or 0.70% of total assets, at September 30, 2026, compared to $17.3 million, or 0.53% of total assets, at June 30, 2026. The Company recorded net charge-offs of $893 thousand for the three months ended September 30, 2026. Annualized net charge-offs to average loans outstanding were 16 basis points for the three months ended September 30, 2026, compared to no net charge-offs for the three months ended June 30, 2026 and 17 basis points for the three months ended September 30, 2025. For the nine months ended September 30, 2026, annualized net charge-offs to average loans outstanding were 13 bps compared to 7 bps for the nine months ended September 30, 2025.

The allowance for credit losses as a percentage of loans held for investment was 1.36%, 1.39% and 1.43% at September 30, 2026, June 30, 2026 and September 30, 2025, respectively. The Company recorded a provision for credit losses of $2.0 million, $1.1 million and $734 thousand for the three months ended September 30, 2026, June 30, 2026 and September 30, 2025, respectively. The recorded provision for credit losses for the three months ended September 30, 2026, compared to the three months ended June 30, 2026, was primarily attributable to an increase in general reserves as a result of changes in economic factors, portfolio mix and specific reserves. The balance for unfunded commitments for the three months ended September 30, 2026 remained relatively stable compared to the three months ended June 30, 2026 and the Company recorded no provision for or benefit from credit losses on unfunded commitments during the third quarter of 2026.

Non-GAAP Financial Measures

GBC's management uses certain non-GAAP (U.S. generally accepted accounting principles) financial measures to evaluate its operating performance and provide information that it believes is important to investors, because they, among other things, present the results of GBC's ongoing operations without the effect of mergers and acquisitions or other items not central to GBC's ongoing business, as well as normalize for tax effects and certain other effects. Management, therefore, believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of GBC, and management uses these non-GAAP financial measures to assess the performance of GBC as relative to prior financial period. However, non-GAAP financial measures should be viewed in addition to, and not as an alternative for, GBC's reported results prepared in accordance with GAAP. Specifically, GBC reviews and reports tangible book value per common share; operating earnings; tangible common equity to tangible assets; return on average tangible common equity; pre-tax, pre-provision operating earnings; pre-tax, pre-provision operating return on average assets; pre-tax, pre-provision operating return on average loans; diluted operating earnings per share; operating return on average assets; operating return on average tangible common equity; and operating efficiency ratio. GBC has included in this earnings release information related to these non-GAAP financial measures for the applicable periods presented. Please refer to "Reconciliation of Non-GAAP Financial Measures" after the financial highlights at the end of this earnings release for a reconciliation of these non-GAAP financial measures.

About Georgia Banking Company, Inc.

Georgia Banking Company is a community-focused financial institution headquartered in Atlanta, Georgia, and a wholly owned subsidiary of GBC. Under the leadership of CEO Bartow Morgan, Jr., a fifth-generation Georgia banker, the company has built a reputation as a trusted partner for businesses, professionals, and families in the markets it serves. By combining innovative solutions with a relationship-first approach, Georgia Banking Company remains committed to delivering exceptional service and supporting its communities.