Colony Bankcorp, Inc. (NASDAQ:CBAN) ("Colony" or the "Company") today announced that it had signed an agreement to sell its Thomaston, Georgia, branch to SouthCrest Financial Group, Inc. (SouthCrest), the bank holding company for SouthCrest Bank, N.A. The branch is located at 206 North Church Street.
The transaction, which is expected to close in the fourth quarter of 2020, subject to regulatory approval and other customary conditions, is expected to result in the transfer of approximately $3 million in fully performing loans, and approximately $40 million in deposits, with a deposit premium of 3%. The transaction also includes an option for SouthCrest to purchase the branch building. Colony expects the transaction to reduce operating expenses while having little effect on its balance sheet.
Commenting on the announcement, Heath Fountain, President and Chief Executive Officer, said, "Decisions like these are never easy or taken lightly. We have enjoyed serving customers in the Thomaston area for over 16 years, and we are very grateful to have had the opportunity to do so. However, we are continuously reviewing our branch network to ensure that all branches operate in the most efficient and cost-effective manner possible. Thomaston is a great market, but it does not fit our current strategy of operating in markets where we can compete against larger regional and national banks. SouthCrest Bank is a full‑service, locally based community bank, and we are confident that our Thomaston customers will be well served."
The Thomaston location will close operations as a Colony Bank branch upon completion of the transaction. Customers affected by the closing will receive additional information. For questions, please call 706‑647‑6601.
Hovde Group, LLC served as financial advisor and Fenimore, Kay, Harrison & Ford, LLP served as legal counsel to Colony. Janney Montgomery Scott LLC served as financial advisor and Alston & Bird LLP served as legal counsel to SouthCrest in connection with the transaction.