Colony Bankcorp and TC Bancshares sign merger agreement

Colony Bankcorp (CBAN) and TC Bancshares (TCBC) signed a definitive merger agreement in which Colony has agreed to acquire 100% of the common stock of TC Bancshares in a combined stock-and-cash transaction valued at approximately $86.1M. Greg Eiford will be joining the Colony team as an EVP and Chief Community Banking Officer. Other key members of TC Federal Bank will also be joining Colony’s team. Under the terms of the agreement, each TC Bancshares shareholder will have the right to elect to receive either $21.25 in cash or 1.25 shares of Colony’s common stock in exchange for each share of TC Bancshares common stock. Approximately 20% of TC Bancshares common stock will be converted to cash consideration and the remaining 80% will be converted to Colony common stock. The combined organization will have approximately $3.8B in total assets, $3.1B in total deposits, and $2.4B in loans. The transaction is expected to be immediately accretive to Colony’s EPS, excluding one-time merger-related expenses, and will enhance Colony’s key performance ratios. The boards of directors of both Colony and TC Bancshares have unanimously approved the transaction, which is expected to close in Q4, subject to regulatory approvals, shareholder approval, and other customary closing conditions.