Colony Bankcorp in Fitzgerald, Ga., has agreed to buy TC Bancshares in Thomasville, Ga.
Colony said in a press release that it will pay $86.1 million in cash and stock for TC Bancshares. The deal, which is expected to close in the fourth quarter, priced TC Bancshares at 112.9% of its tangible book value.
“This merger marks an exciting step forward in our ability to better serve our customers and communities,” Heath Fountain, Colony’s CEO, said in the release “Together, we are creating a stronger franchise with deeper resources, broader reach, and an even greater focus on personalized service.”
Greg Eiford, TC Bancshares’ president and CEO, will join Colony as chief community banking officer.
The deal should be 8.5% accretive to Colony’s 2026 earnings per share. It should take three years to earn back an estimated 5.7% dilution to Colony’s tangible book value.
Colony expects to cut about a third of TC Bancshares’ annual noninterest expenses, or $5.6 million. It expects to incur about $10.4 million in merger-related charges.
Hovde Group and Alston & Bird advised Colony. Performance Trust Capital Partners and Nelson Mullins Riley & Scarborough advised TC Bancshares.