Colony Bank to acquire First Reliance in $163M deal, expanding Southeast footprint.

The combination would create a nearly $5 billion community banking company spanning four fast-growing Southern states as regional banks continue pursuing scale.

Community banking consolidation continued across the Southeast last week as Georgia-based Colony Bankcorp announced plans to acquire South Carolina’s First Reliance Bancshares in a transaction valued at approximately $163 million, creating a combined institution with roughly $5 billion in assets and a significantly broader presence across some of the region’s fastest-growing markets.

The agreement would unite Colony Bank, headquartered in Fitzgerald, Georgia, with Florence, South Carolina-based First Reliance Bank. If regulators and shareholders approve the transaction, the merger is expected to close during the fourth quarter of 2026.

The deal would extend Colony’s reach across Alabama, Florida, Georgia and South Carolina while adding First Reliance’s established franchise in South Carolina. Together, the combined organization is expected to hold approximately $4 billion in deposits and $3.2 billion in loans, making it one of the larger community banking organizations operating across the Southeast.

For community banks, scale has become increasingly important as institutions face rising technology costs, heightened regulatory expectations and growing competition from both national banks and financial technology firms. Mergers have become a common strategy for expanding geographic reach while spreading operating costs across a larger balance sheet.

“This partnership represents a truly transformational milestone for both Colony and First Reliance,” Heath Fountain, Colony’s chief executive officer, said in announcing the agreement.

Fountain said the two organizations share a commitment to community banking and that the combined company would have greater resources to serve customers while preserving local relationships.

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First Reliance, founded in 1999, has grown to approximately $1.1 billion in assets by emphasizing commercial and consumer banking throughout South Carolina. Colony Bank, founded in 1975, operates throughout Georgia as well as in Alabama and Florida, offering traditional banking services alongside mortgage lending, wealth management, insurance and government-guaranteed lending programs.

Under the agreement, First Reliance shareholders may elect to receive either $19.75 in cash or 0.94 shares of Colony common stock for each share they own, subject to customary allocation provisions. Approximately 20 percent of the consideration will be paid in cash, with the remaining 80 percent consisting of Colony stock.

The companies said the transaction is expected to be immediately accretive to Colony’s earnings per share, excluding one-time merger expenses, while improving several key financial performance measures.

First Reliance founder and Chief Executive Officer Rick Saunders described the merger as an opportunity to accelerate the bank’s long-term strategy without abandoning the culture that helped define the institution.

“We are thrilled to partner with Colony in a move that accelerates our strategic growth plans,” Saunders said. “This partnership allows us to preserve our cherished culture while gaining the operational scale required to compete at the highest level.”

Saunders will remain involved after the transaction closes, joining Colony as executive vice chairman, a member of its board of directors and part of the executive leadership team.

Several other senior First Reliance executives are also expected to assume leadership roles within the combined organization. Justin Strickland, currently president of First Reliance, will become Colony’s president for South Carolina. Chief Financial Officer Robert Haile will serve as chief investment officer and treasurer, while Chief Credit Officer Brook Moore will oversee credit operations in South Carolina. Chuck Stuart, president of First Reliance’s mortgage division, will become co-president of Colony Mortgage.

Governance changes will also accompany the merger. First Reliance director Rick Redden will join Colony’s board, while First Reliance Chairman Dr. Dale Lusk will continue advising the company with formal board observation rights.

Notably, the companies said First Reliance’s South Carolina branches will continue operating under the First Reliance name after the acquisition closes, reflecting an effort to preserve local brand recognition even as operations become part of a larger organization.

Brook Baker, chairman of Colony’s board, said maintaining community relationships remained central to the strategy.

The transaction received unanimous approval from both companies’ boards of directors. It remains subject to customary regulatory approvals, approval by First Reliance shareholders and other closing conditions.

The announcement adds to an active period for regional bank mergers across the Southeast, where institutions are increasingly seeking greater scale while maintaining the local focus that has traditionally distinguished community banking. Rather than expanding nationally, many banks are concentrating growth within contiguous markets where population gains, business formation and commercial development continue to outpace much of the country.

If completed as planned, the Colony-First Reliance combination would create a larger regional institution while preserving many of the local brands and leadership teams that have defined both organizations for decades.

“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.”

– Heath Fountain
CEO
Colony Bank