COLONIAL COLONY, INC.

ticipant. The Company may make a discretionary matching contribution equal to a uniform percentage or dollar amount of the participants’ elective deferrals. To be eligible for the Company matching contribution, participants must be 18 years of age and complete one month of service. The Company may also make a discretionary nonelective contribution to the Plan in an amount that will be determined each year. To be eligible for the Company nonelective contribution, employees must be 18 years of age, have one year of service with completion of 1,000 hours of service, and be employed on the last day of the Plan year. Employees may also share in the Company nonelective contribution for the year if they terminate employment due to death, disability, or attainment of normal retirement age. The Com

t is entitled to a benefit equal to his or her vested account balance. 5 Table of Contents COLONY BANKCORP, INC. 401(k) PLAN Notes to Financial Statements Vesting Participants are immediately vested in their voluntary contributions plus earnings thereon. Vesting in the employer’s contribution portion of their accounts plus actual earnings thereon is based on years of service. Participants vest in employer contributions 20 percent after two years of service, 40 percent after three years of service, 60 percent after four years of service, 80 percent after five years of service. A participant is 100 percent vested after 6 years of credited service. Notes Receivable from Participants Participants may borrow from their fund accounts a minimum of $ 1,000 up to a maximum equal to the lesser of $

om other qualified retirement plans (rollover). Participants direct the investment of their contributions into various investment options offered by the Plan. The Plan includes an automatic enrollment provision whereby all newly-eligible employees are automatically enrolled in the Plan unless they affirmatively elect not to participate in the Plan. Automatically enrolled participants have their deferral rate set at 6 percent of eligible compensation, with a 1 percent increase each March 1 for a maximum automatic elective deferral contribution of 10 percent and their contributions are invested in a designated balanced fund until changed by the participant. The Company may make a discretionary matching contribution equal to a uniform percentage or dollar amount of the participants’ elective

0,284 Rollovers ​ 194,503 ​ ​ 5,345,437 ​ ​ ​ ​ Total additions ​ 9,950,585 ​ ​ ​ ​ Deductions ​ ​ Benefits paid to participants ​ 5,915,965 Deemed distributions of loans ​ 51,813 Administrative expenses ​ 336,974 Total deductions ​ 6,304,752 ​ ​ ​ ​ Net increase ​ 3,645,833 ​ ​ ​ ​ Net assets available for benefits ​ ​ Beginning of year ​ 34,307,656 End of year ​ $ 37,953,489 ​ See accompanying notes which are an integral part of these financial statements. ​ ​ 4 Table of Contents COLONY BANKCORP, INC. 401(k) PLAN Notes to Financial Statements (1) Description of Plan The following description of the Colony Bankcorp, Inc. 401(k) Plan (the Plan) provides only general information. Participants should refer to the Summary Plan Description for a more complete description of the Plan’s provisio