Colony Bankcorp and First Reliance Bancshares announced that they have signed a definitive merger agreement under which Colony will acquire 100% of the stock of First Reliance.
The transaction is valued at approximately $163 million and will be completed through a combined stock-and-cash structure.
Colony Bankcorp is the holding company for Colony Bank, while First Reliance Bancshares is the holding company for First Reliance Bank. The companies said the merger will create a larger Southeast banking franchise with an expanded footprint across Alabama, Florida, Georgia, and South Carolina.
Under the terms of the agreement, each First Reliance shareholder may elect to receive either $19.75 in cash or 0.94 of a share of Colony common stock for each share of First Reliance common stock, subject to customary proration and allocation procedures. Approximately 20% of First Reliance common stock will be converted into cash consideration, and about 80% will be converted into Colony common stock.
The combined organization will have approximately $5 billion in total assets, $4 billion in total deposits, and $3.2 billion in loans. Colony said the transaction is expected to be immediately accretive to earnings per share, excluding one-time merger-related expenses, and enhance key performance ratios.
After the merger closes, First Reliance locations in South Carolina will continue operating under the First Reliance brand. Customers of both companies are expected to continue receiving service from their existing institutions.
The combined company will include several First Reliance leaders in key roles. Rick Saunders, Founder and CEO of First Reliance, will join Colony as Executive Vice Chairman, board member, and member of the executive team.
Justin Strickland, currently President of First Reliance, will become Colony’s President for South Carolina. Robert Haile, First Reliance’s Chief Financial Officer, will serve as Chief Investment Officer and Treasurer.
Brook Moore, First Reliance’s Chief Credit Officer, will become Colony’s Credit Officer for South Carolina. Chuck Stuart, current President of the First Reliance Mortgage Division, will join as Co-President of Colony Mortgage.
First Reliance director Rick Redden will also join the Colony Board of Directors, and First Reliance Chairman Dr. Dale Lusk will maintain an active advisory role with formal board observation rights.
The boards of directors of both Colony and First Reliance unanimously approved the transaction. The merger is expected to close in the fourth quarter of 2026, subject to regulatory approvals, shareholder approval, and customary closing conditions.
Keefe, Bruyette & Woods, a Stifel company, served as financial advisor to Colony, and Alston & Bird served as legal counsel. Hovde Group served as financial advisor to First Reliance, and Ward and Smith served as legal advisor.
KEY QUOTES:
“This partnership represents a truly transformational milestone for both Colony and First Reliance. 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. First Reliance shares our passion for community banking, and together, we will have the scale, talent, and resources to better serve our customers and communities.”
Heath Fountain, Chief Executive Officer of Colony
“We are thrilled to partner with Colony in a move that accelerates our strategic growth plans. This partnership allows us to preserve our cherished culture while gaining the operational scale required to compete at the highest level. 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.”
Rick Saunders, Founder and Chief Executive Officer of First Reliance
