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.
