Key Highlights

• Colony Bankcorp (NYSE: CBAN) will acquire First Reliance Bancshares in a transaction valued at approximately $163 million.

• First Reliance shareholders may elect to receive either $19.75 in cash or 0.94 shares of Colony Bankcorp stock per share.

• The combined organization will have approximately $5 billion in total assets, with a significant presence in Alabama, Florida, Georgia, and South Carolina.

• The merger is expected to close in the fourth quarter of 2026, pending regulatory and shareholder approvals.

• Leadership from First Reliance will integrate into Colony Bankcorp’s executive team and board following the merger.

Deal Terms Unveiled

Colony Bankcorp (NYSE: CBAN) has finalized a definitive agreement to acquire First Reliance Bancshares through a transaction outlined in New Material Agreement Exhibit 99.1. Under the terms of the agreement, First Reliance shareholders will have the right to elect to receive either $19.75 in cash or 0.94 shares of Colony Bankcorp stock for each share they hold. The allocation procedures specify that approximately 20% of the total consideration will be distributed in cash, with the remaining 80% issued as stock.

Strategic Expansion in the Southeast

This merger represents a significant step in Colony Bankcorp’s growth strategy, particularly in expanding its reach across key Southeastern markets. First Reliance, headquartered in Florence, South Carolina, brings a well-established presence in the region, complementing Colony Bankcorp’s existing operations. The combined organization will operate with a dual-brand approach, preserving First Reliance’s local identity while integrating it into Colony Bankcorp’s broader network.

The Southeast banking sector has seen increased consolidation as regional banks seek to enhance their competitive positioning and scale efficiencies.

Leadership and Governance Changes

Following the completion of the transaction, leadership from First Reliance will transition into key roles at Colony Bankcorp. Rick Saunders, currently leading First Reliance, will assume the position of Executive Vice Chairman and join the board of directors. Justin Strickland will take on the role of President for South Carolina, overseeing operations in the state.

Additional appointments include Robert Haile as Chief Investment Officer and Brook Moore as Credit Officer for South Carolina, ensuring continuity and expertise in the merged entity’s operations.

Financial and Operational Impact

Once finalized, the combined institution will manage a substantial asset base, positioning it as a formidable player in the Southeast banking landscape. The merger is expected to deliver immediate benefits to earnings per share, excluding one-time costs associated with the integration. By combining resources, the two banks aim to achieve greater operational efficiency, improved service offerings, and enhanced competitiveness in a region characterized by steady economic growth and increasing demand for financial services.

Regulatory and Shareholder Approvals

The transaction is subject to approval by regulatory authorities and the shareholders of both companies. To provide further details, Colony Bankcorp has scheduled a conference call for analysts on June 25, 2026, with a replay available until July 2. Participants can join by using the Conference ID: 3962081 or entering the passcode 3962081.

The merger is anticipated to close in the fourth quarter of 2026, assuming all customary closing conditions are met.

Advisors and Legal Counsel

The transaction has been supported by a team of financial and legal advisors. Keefe, Bruyette & Woods served as the financial advisor to Colony Bankcorp, with Alston & Bird providing legal counsel. First Reliance was advised by Hovde Group on financial matters, while Ward and Smith handled its legal representation.

The involvement of these firms reflects the strategic significance of the deal within the community banking sector.

Investor Insights

This merger underscores Colony Bankcorp’s commitment to expanding its regional influence in the Southeast, a market known for its dynamic growth and competitive banking environment. Investors will likely monitor the progress of regulatory approvals and integration efforts, as timely execution will be critical to realizing the anticipated synergies. The deal’s structure and projected financial benefits may appeal to investors focused on community and regional banks with growth potential.

 

This article is for informational purposes only and does not constitute financial advice. Please consult a licensed financial adviser before making investment decisions.