Colony Bankcorp Shareholders Approve $163 Million Acquisition of First Reliance

Key numbers

Deal value	$163M
Share of market cap	38.3%
Share of annual revenue	123.3%

Key highlights

• Acquisition valued at approximately $163.0 million via a combined stock-and-cash structure
• Shareholders approved the issuance of common stock with 13,338,856 votes in favor
• Combined entity projected to manage $5 billion in total assets and $4 billion in deposits
• Transaction expands Colony's reach into South Carolina and strengthens Georgia presence
• Closing is anticipated in the fourth quarter of 2026 following receipt of regulatory approvals

What Is the Deal?

Colony Bankcorp (CBAN) is moving forward with the acquisition of 100% of First Reliance Bancshares, Inc. in a deal valued at approximately $163 million. The transaction is structured as a combination of stock and cash, though specific per-share ratios were not updated in the latest 8-K filing. Following the definitive shareholder vote on October 14, 2026, and the prior receipt of all necessary regulatory approvals, the merger has cleared its primary closing hurdles. The companies are currently working toward a final close scheduled for the fourth quarter of 2026, subject to customary concluding conditions.

Strategic Rationale

This acquisition represents a significant expansion of Colony's community banking franchise across the Southeastern United States. By integrating First Reliance, Colony adds approximately $1.1 billion in assets and a established presence in Florence, South Carolina, to its existing operations in Georgia and North Florida. The merger is designed to leverage First Reliance's local market expertise while providing their clients access to Colony's broader suite of services, including specialized mortgage lending, wealth management, and government-guaranteed lending. This scaling effort follows Colony's 2025 acquisition of TC Bancshares, highlighting a consistent strategy of regional consolidation.

Business Overview & Pro Forma Impact

• The combined institution will hold approximately $3.2 billion in total loans across three states
• Total deposits for the merged entity are expected to reach approximately $4 billion
• Colony Bankcorp currently operates branches throughout Georgia and North Florida markets
• First Reliance Bancshares, founded in 1999, currently manages $1.1 billion in assets
• The merger adds significant South Carolina infrastructure to Colony's existing geographic footprint

Financial Context

The $163 million acquisition is a substantial move for Colony Bankcorp, which currently holds a market capitalization of roughly $425 million. CBAN shares have traded with a price-to-earnings ratio of 12.3x, reflecting a valuation in line with many regional banking peers. Market performance shows the stock has faced some recent pressure, with a month-over-month decline of 6.66% and an RSI of 40.1. Colony is scheduled to release its third-quarter 2026 financial results on October 28, providing investors with a final standalone operational update before the anticipated merger completion in November.

Executive Perspective

“The shareholder approvals bring us one step closer to welcoming First Reliance to Colony and expanding our presence across the Southeast. We're excited about the strength this partnership adds to our organization and the opportunities it creates as we continue growing our community banking franchise.”

Management commentary

“The shareholder approvals bring us one step closer to welcoming First Reliance to Colony and expanding our presence across the Southeast.”

“We've built something special over the past 27 years, and I'm proud that we'll carry that legacy forward as part of Colony.”

COLONY BANKCORP INC · financial snapshot

Share price	$20.03
Market cap	$425M
Revenue (annual)	$132M
P/E (TTM)	12.3×
1-month price change	-6.66%
Sector	Financial ServicesBanks - Regional

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.