Colony Bankcorp, Inc., the holding company for Colony Bank, and First Reliance Bancshares, Inc., the holding company for First Reliance Bank, jointly announced the signing of a definitive merger agreement on June 24th in which Colony has agreed to acquire 100% of the stock of First Reliance in a combined stock-and-cash transaction valued at approximately USD 163 million (the “Merger”). This strategic combination will create a transformational partnership, significantly expanding the combined institution’s footprint across premier, high-growth markets in Alabama, Florida, Georgia and South Carolina.
“This partnership represents a truly transformational milestone for both Colony and First Reliance,” said Heath Fountain, Colony’s Chief Executive Officer. “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.”
Rick Saunders, Founder and Chief Executive Officer of First Reliance, commented, “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 organisation with expanded career opportunities.”
Key leadership appointments following the Merger include Rick Saunders, who 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 and Robert Haile, First Reliance’s Chief Financial Officer, will serve as Chief Investment Officer and Treasurer. Additionally, Brook Moore, First Reliance’s Chief Credit Officer, will become Colony’s Credit Officer for South Carolina and Chuck Stuart, current President of the First Reliance Mortgage Division, will join as Co-President of Colony Mortgage.
Strengthening the governance of the combined company, First Reliance director Rick Redden will join the Colony Board of Directors, while First Reliance Chairman Dr Dale Lusk will maintain an active advisory role with formal board observation rights.
Following the closing of the merger, First Reliance locations in South Carolina will continue operating under the First Reliance brand. Customers of both organisations will continue to receive the same industry-leading service that both institutions are recognised for delivering.
Under the terms of the agreement, each First Reliance shareholder will have the right to elect to receive either USD 19.75 in cash or 0.94 of a share of Colony’s common stock in exchange for each share of First Reliance common stock, subject to customary proration and allocation procedures such that approximately 20% of First Reliance common stock will be converted to cash consideration and the remaining 80% will be converted to Colony common stock. The combined organisation will have approximately USD 5 billion in total assets, USD 4.0 billion in total deposits, and USD 3.2 billion in loans, making it 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 boards of directors of both Colony and First Reliance have unanimously approved the transaction, which is expected to close in the fourth quarter of 2026, subject to regulatory approvals, shareholder approval, and other customary closing conditions.
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