Colony Bankcorp Acquires First Reliance in $163M Deal

Colony Bankcorp (CBAN) and First Reliance Bancshares (FSRL) signed a definitive merger agreement in which Colony has agreed to acquire 100% of the stock of First Reliance in a combined stock-and-cash transaction valued at approximately $163M. 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 CFO, will serve as Chief Investment Officer and Treasurer. Following the closing, First Reliance locations in South Carolina will continue operating under the First Reliance brand. Each First Reliance shareholder will have the right to elect to receive either $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. 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 organization will have approximately $5B in total assets, $4.0B in total deposits, and $3.2B in loans. The transaction is expected to be immediately accretive to Colony's EPS, excluding one-time merger-related expenses. Both boards of directors have approved the transaction, which is expected to close in Q4.