Colony and First Reliance Shareholders Approve Bank Merger

what happened

Shareholders of both companies voted in favor of the combination, under which First Reliance will become part of Colony. The vote came after all required regulatory approvals were received, completing the necessary approval process. The companies now aim to close the transaction in the fourth quarter of 2026, subject to customary closing conditions.

The parties announced the agreement on June 24, 2026. Colony will acquire 100% of First Reliance's stock in a deal combining shares and cash, valued at about $163 million. After completion, the combined bank is expected to hold roughly $5 billion in total assets, $4 billion in deposits and $3.2 billion in loans, with a wider presence across Georgia, South Carolina and Florida.

Colony CEO Heath Fountain said the shareholder approvals bring the companies one step closer to welcoming First Reliance and expanding across the Southeast. First Reliance CEO and founder Rick Saunders said the bank has built something special over 27 years and will carry that legacy forward within Colony.

why it matters

For markets, the vote removes a key hurdle, leaving fewer regulatory uncertainties and a clearer closing timeline. A combined balance sheet of around $5 billion could strengthen Colony's regional footprint, though the deal's size also implies potential share dilution and a cash outlay.

tags

instruments