Atlanta-based SouthCrest Financial Group has agreed to acquire Colony Bank's branch in Thomaston.
The agreement includes the purchase of almost $40 million in deposits and approximately $3 million of loans from Colony as of the announcement date Friday, Sept. 11. SouthCrest is the holding company for SouthCrest Bank N.A.
The parties expect to close the transaction at the end of the fourth quarter pending regulatory approvals.
“We are extremely excited to be adding to our position as the leading bank in Thomaston and Upson County," SouthCrest CEO Brian Schmitt said in a statement. "We look forward to giving the same great service to our new customers that we have provided in Upson County for nearly 70 years.”
Colony Bankcorp President and CEO Heath Fountain said in a statement, "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.
Janney Montgomery Scott acted as an advisor and Alston & Bird LLP as legal counsel to SouthCrest in the transaction. Hovde Group LLC served as financial advisor and Fenimore, Kay, Harrison & Ford LLP as legal counsel to Colony.
SouthCrest Financial Group (SCSG: PK) has more than $500 million in assets and operates a nine-branch network throughout Georgia through subsidiary SouthCrest Bank N.A. It offers retail, private, entrepreneurial, high-net-worth and commercial banking services, and online banking services.
Colony Bankcorp Inc. (Nasdaq: CBAN) is the bank holding company for Colony Bank. Headquartered in Fitzgerald, Ga., it operates 33 locations throughout Georgia. Its Homebuilder Finance Division offers building and construction loans and its Small Business Lending Specialty Lending Division assists small businesses with government guaranteed loans. The bank also offers home mortgages.