Colony Bankcorp Agrees $163m First Reliance Deal

Colony Bankcorp has agreed to acquire First Reliance Bancshares in a $163 million stock-and-cash transaction, creating a significant regional community banking group focused on expanding across the Southeastern United States.

The merger will combine Colony Bank and First Reliance Bank, creating an institution with approximately $5 billion in total assets, $4 billion in deposits, and $3.2 billion in loans.

With this deal, Colony expects to expand its commercial banking capabilities while adding First Reliance’s existing customer base and regional expertise.

The combined group will have operations across Alabama, Florida, Georgia and South Carolina, strengthening Colony’s presence in one of the fastest-growing banking regions in the United States.

Under the terms of the agreement, around 80% of the consideration will be paid in Colony shares, with the remaining 20% paid in cash.

The transaction values First Reliance at approximately $163 million and is expected to close in the fourth quarter of 2026, subject to regulatory approvals and shareholder votes.

According to Colony, the combination would create one of the largest community banks headquartered in Georgia or South Carolina with less than $10 billion in assets.

Heath Fountain, CEO of Colony, said, "By uniting our teams, we are creating a premier Southeast banking franchise that is uniquely positioned to capture market share in some of the most dynamic economies in the country."

Rick Saunders, First Reliance’s chief executive, will become executive vice chairman of Colony Bankcorp and added: “Our customers will enjoy access to broader banking capabilities and enhanced technology, while our employees will benefit from being part of a larger, dynamic organization with expanded career opportunities."