Colony to Buy First Reliance in $163 Million Mixed Deal
The combined Southeast community bank is expected to have about $5 billion in assets and a fourth-quarter close.
Colony Bankcorp, Inc. (CBAN), the holding company for Colony Bank, agreed to acquire 100% of First Reliance Bancshares, Inc. (FSRL), the holding company for First Reliance Bank, in a combined stock-and-cash transaction valued at approximately $163 million.
The deal is expected to close in the fourth quarter of 2026, subject to regulatory approvals, shareholder approval, and other customary closing conditions. Each First Reliance shareholder will have the right to elect either $19.75 in cash or 0.94 of a share of Colony common stock for each First Reliance share, with customary proration so that about 20% of First Reliance stock converts to cash and the remaining 80% to Colony shares.
Upon completion, the combined company will have approximately $5 billion in total assets, $4 billion in total deposits, and $3.2 billion in loans, positioning Colony as one of the leading community banks in the Southeast. The transaction is expected to be immediately accretive to Colony’s earnings per share, excluding one-time merger-related expenses, and will enhance Colony’s key performance ratios.
The combination is intended to expand the franchise across Alabama, Florida, Georgia, and South Carolina. Colony Bank is headquartered in Fitzgerald, Georgia, with locations across Georgia, in Birmingham, Alabama, and in North Florida, including Tallahassee, Jacksonville, and the Florida Panhandle. After closing, First Reliance locations in South Carolina will continue operating under the First Reliance brand.
Leadership changes are already mapped. Rick Saunders, founder and chief executive of First Reliance, will join Colony as executive vice chairman, a board member, and a member of the executive team. Justin Strickland, First Reliance’s president, 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, and Chuck Stuart, president of First Reliance’s mortgage division, will join Colony as co-president of Colony Mortgage. First Reliance director Rick Redden will join Colony’s board, while First Reliance chairman Dr. Dale Lusk will keep an advisory role with formal board observation rights.
The boards of both companies unanimously approved the transaction. System conversion is planned for the second quarter of 2027, when Colony expects to co-brand First Reliance and Colony Bank; until then, operations remain on existing systems and brands.
“As we move toward our shareholder vote and our planned fourth-quarter close, we remain focused on executing a seamless transition that expands our capabilities while preserving the dedicated community banking service our customers expect.”