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 / ACCESS Newswire / October 28, 2026 / 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:

• Sequential and year-over-year comparisons are impacted by the merger with Tandem Bancorp, Inc. (“Tandem”), which closed on June 1, 2026 and was fully integrated on September 21, 2026;
• Pre-tax, pre-provision earnings were $10.5 million, an increase of $1.8 million, or 20.4%, from the second quarter 2026. Pre-tax, pre-provision operating earnings, which exclude direct listing and merger and acquisition expenses, were $12.9 million, an increase of $750 thousand, or 6.2%, from the prior quarter;
• Net interest income increased $2.3 million, or 8.0%, from the prior quarter;
• Net interest margin was 4.17% compared with 4.31% in the prior quarter, with the decrease primarily reflecting higher interest expense on other borrowed funds associated with the Company’s subordinated debt refinancing during the quarter;
• Average loans increased $158.3 million, or 6.7%, from the prior quarter to $2.5 billion. Loan growth was primarily attributable to an increase in commercial real estate and single-family residential loans from the prior quarter;
• Average total interest-bearing deposits increased $268.5 million, or 15.7%, from the prior quarter to $2.0 billion, inclusive of the impact of the Tandem acquisition;
• Noninterest-bearing deposits represented 26.0% of period-end total deposits. GBC’s average cost of total deposits nonannualized, including noninterest-bearing deposits, increased 2 basis points from the prior quarter to 0.58%, and decreased 7 basis points from the year-ago quarter;
• Provision for credit losses was $2.0 million compared to $1.1 million in the prior quarter and $734 thousand in third quarter 2025. Net charge-offs were 0.16% of average loans outstanding (annualized) for the quarter, while the nonperforming loan ratio was 0.99% of total loans held for investment at quarter end compared to 0.83% in the prior quarter. The allowance for credit losses (“ACL”) was $30.1 million, or 1.36% of total loans held for investment, at quarter end, an increase of $1.1 million from the prior quarter end;
• The Company maintained strong regulatory capital ratios at September 30, 2026. The Company’s preliminary Common Equity Tier 1 (“CET1”) ratio was 10.59%, compared to 10.29% at June 30, 2026 and 8.53% at September 30, 2025; and
• Named a Top Workplace by Axios for the fourth consecutive year, an honor based entirely on employee feedback gathered through a third-party survey.

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.

Disclaimer and Forward-Looking Statements

The Company has filed a registration statement (including a prospectus) with the Securities and Exchange Commission (“SEC”) for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the Company has filed with the SEC for more complete information about the Company and this offering. You may get these documents for free by visiting EDGAR on the SEC’s website at www.sec.gov. The prospectus may be accessed through the following link: https://www.sec.gov/Archives/edgar/data/0001070965/000110465926118704/tm2620318-18_s1a.htm. Alternatively, the Company will arrange to send you the prospectus if you request it by calling toll-free (866) 711-4530 or by emailing InvestorRelations@georgiabanking.com.

This earnings release includes “forward-looking statements”, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, to the extent applicable. Forward-looking statements are based on various facts and derived utilizing assumptions, current expectations, estimates and projections and are subject to known and unknown risks, uncertainties and other factors, which change over time and many of which are beyond our control, that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements include, without limitation, statements regarding the Company’s listing, future financial performance, business and growth strategy, asset quality, liquidity, capital, net interest margin, expense levels, and plans, objectives and expectations of management, including those contained in the commentary of our Chief Executive Officer. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” “seeks,” “targets,” “forecasts,” “outlooks,” “plans,” “potential” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may” and “could” are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing words. Forward-looking statements are based on management’s current expectations and assumptions and are subject to risks, uncertainties and other factors, many of which are beyond our control, that could cause actual results to differ materially from those expressed or implied. These factors include, among others: changes in interest rates, the shape of the yield curve and monetary policy, and their effects on our net interest margin, deposit costs, loan demand and the value of our securities portfolio; competition for deposits, changes in our deposit mix and our ability to maintain adequate liquidity and funding; uninsured deposits; deterioration in credit quality, including in our commercial real estate, construction and land development and commercial and financial loan portfolios, and the adequacy of our allowance for credit losses; our concentration in commercial real estate lending and economic and real estate market conditions in the Atlanta metropolitan area and Georgia; our payment services and mortgage warehouse program; our ability to successfully integrate Tandem Bancorp, Inc. and realize the anticipated benefits of the merger, and costs or difficulties related to the integration; the effects of our subordinated debt restructuring and our ability to access capital on acceptable terms; our ability to maintain regulatory capital levels, and changes in laws, regulations and supervisory policies applicable to bank holding companies and banks; the absence of a prior public trading market for our common stock, the direct listing process and the potential volatility of our stock price; the increased costs and demands of operating as a public company, including compliance with the Sarbanes-Oxley Act and Nasdaq listing standards, and the effects of our status as an emerging growth company; cybersecurity incidents, fraud, and failures or interruptions of our operational or third-party systems; our ability to attract and retain key personnel; and general economic, political and market conditions, including inflation, government fiscal and trade policies and geopolitical events. Additional factors are described under “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of GBC’s registration statement on Form S-1 (File No. 333-299281),which is available on the SEC’s website at www.sec.gov. You should not place undue reliance on forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made. Except as required by law, GBC does not undertake any obligation to supplement, update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise. All forward-looking statements, expressed or implied, included in this earnings release are expressly qualified in their entirety by this cautionary statement.

GEORGIA BANKING COMPANY, INC. AND SUBSIDIARIES
Financial Highlights
(dollar amounts in thousands, except per share data)

¹ Refer to the section titled “Reconciliation of Non-GAAP Financial Measures” after the financial highlights for a reconciliation of these non-GAAP financial measures to their most directly comparable GAAP measures.
² Annualized.
³ Capital ratios are preliminary.

GEORGIA BANKING COMPANY, INC. AND SUBSIDIARIES
Financial Highlights
(dollar amounts in thousands)

GEORGIA BANKING COMPANY, INC. AND SUBSIDIARIES
Financial Highlights
(dollar amounts in thousands, except per share data)

GEORGIA BANKING COMPANY, INC. AND SUBSIDIARIES
Financial Highlights
(unaudited)

GEORGIA BANKING COMPANY, INC. AND SUBSIDIARIES
Financial Highlights
(unaudited)