Georgia Banking Company, Inc. reported net income of $6.3 million, or $0.57 per diluted common share, for the third quarter of 2026. This figure represents a decrease from the second quarter of 2026, when the company reported net income of $5.6 million, or $0.60 per diluted common share. The reported earnings for the third quarter included $2.0 million in direct listing expenses and $493,000 in merger and acquisition expenses, both before taxes.
The company noted that the third-quarter results reflect the first full quarter of combined operations following the merger with Tandem Bancorp, Inc., which closed on June 1, 2026. Pre-tax, pre-provision earnings were $10.5 million, an increase of $1.8 million, or 20.4%, from the second quarter of 2026. Excluding direct listing and merger expenses, pre-tax, pre-provision operating earnings were $12.9 million, an increase of $750,000, or 6.2%, from the prior quarter.
Net interest income increased by $2.3 million, or 8.0%, from the prior quarter to $31.4 million. This increase was primarily driven by a $4.6 million rise in interest income on loans held for investment, including fees, and a $1.2 million increase in interest income on deposits with banks and federal funds sold. However, the net interest margin decreased to 4.17% from 4.31% in the prior quarter, primarily due to higher interest expense on other borrowed funds associated with the refinancing of subordinated debt during the quarter.
Loan growth was a significant driver of the quarter's financials. Average loans increased by $158.3 million, or 6.7%, from the prior quarter to $2.5 billion. This growth was primarily attributed to increases in commercial real estate and single-family residential loans. Average total interest-bearing deposits also increased, rising by $268.5 million, or 15.7%, from the prior quarter to $2.0 billion, inclusive of the impact of the Tandem acquisition.
On the credit quality front, the provision for credit losses was $2.0 million compared to $1.1 million in the prior quarter. Annualized net charge-offs to average loans outstanding were 16 basis points for the quarter. The allowance for credit losses 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. Nonperforming loans represented 0.99% of total loans held for investment at quarter end.
Georgia Banking maintained strong regulatory capital ratios at September 30, 2026. The 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. Additionally, the company was named a Top Workplace by Axios for the fourth consecutive year based on employee feedback.
