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ALLOWANCE FOR CREDIT LOSSES
 12 Months Ended
Dec. 31, 2025
Receivables [Abstract]  
ALLOWANCE FOR CREDIT LOSSES ALLOWANCE FOR CREDIT LOSSES
 
The ACL for loans represents management's estimate of life of loan credit losses in the portfolio as of the end of the period. The ACL related to unfunded commitments is included in other liabilities in the consolidated balance sheet. The following tables present the balance sheet activity in the ACL by portfolio segment for loans for the years ended December 31, 2025 and 2024.
 
(dollars in thousands)Balance, December 31, 2024Adoption of ASU 2025-08Charge-offsRecoveriesProvision for credit losses on loansBalance, December 31, 2025
Year ended December 31, 2025     
Construction, land & land development$1,306 $266 $— $1 $901 $2,474 
Other commercial real estate6,459 2,007 (509)266 (508)7,715 
  Total commercial real estate7,765 2,273 (509)267 393 10,189 
Residential real estate5,502 2,064 (183)195 (2,090)5,488 
Commercial, financial & agricultural2,904 138 (3,389)120 4,121 3,894 
Consumer and other2,809 144 (1,618)35 2,073 3,443 
Total allowance for credit losses on loans$18,980 $4,619 $(5,699)$617 $4,497 $23,014 
 

(dollars in thousands)Balance, December 31, 2023Charge-offsRecoveriesProvision for credit losses on loansBalance, December 31, 2024
Year ended December 31, 2024
Construction, land & land development$2,204 $— $16 $(914)$1,306 
Other commercial real estate7,064 (20)57 (642)6,459 
  Total commercial real estate9,268 (20)73 (1,556)7,765 
Residential real estate5,105 (427)256 568 5,502 
Commercial, financial & agricultural2,110 (2,467)161 3,100 2,904 
Consumer and other1,888 (604)25 1,500 2,809 
Total allowance for credit losses on loans$18,371 $(3,518)$515 $3,612 $18,980 

Colony used a one-year reasonable and supportable forecast period. The changes in loss rates used as the basis for the estimate of credit losses during this period were modeled using historical data from peer banks and macroeconomic forecast data obtained from a third party vendor, which were then applied to Colony's recent default experience as a starting point. As of December 31, 2025, the Company expects that the markets in which it operates will experience stable economic and unemployment conditions with the trend of delinquencies returning to more normalized levels, over the next year. Management adjusted the historical loss experience for these expectations. No reversion adjustments were necessary, as the starting point for the Company's estimate was a cumulative loss rate covering the expected contractual term of the portfolio.
 
The Company determines its individual reserves during its quarterly review of substandard loans. This process involves reviewing all loans with a risk grade of 7, 8, 9, 10 or 99 and an outstanding balance of $500,000 or more, regardless of the loans impairment classification.

The Company maintains an allowance for off-balance sheet credit exposures such as unfunded balances for existing lines of credit, commitments to extend future credit, as well as both standby and commercial letters of credit when there is a contractual obligation to extend credit and when this extension of credit is not unconditionally cancellable. The allowance for off-balance sheet credit exposures is adjusted as a provision for credit loss expense. The estimate includes consideration of the likelihood that funding will occur, which is based on a historical funding study derived from internal information, and an estimate of expected credit losses on commitments expected to be funded over its estimated life, which are the same loss rates that are used in computing the allowance for credit losses on loans. The allowance for credit losses for unfunded commitments is separately classified on the balance sheet within other liabilities.
The following table presents the balance and activity in the allowance for credit losses for unfunded commitments for the years ended December 31, 2025 and 2024.

(dollars in thousands)December 31, 2025December 31, 2024
Beginning balance$813 $1,375 
Adjustment to allowance for unfunded commitments for adoption of ASU 2025-08134 — 
Provision for (recovery of ) unfunded commitments3 (562)
Ending balance$950 $813