Strategic Merger to Bolster Regional Franchise

Colony Bankcorp, Inc. (NYSE: CBAN), the parent company of Colony Bank, and TC Bancshares, Inc. (OTCQX: TCBC), holding company for TC Federal Bank, have entered into a definitive merger agreement, marking a pivotal move in the Southeast’s community banking sector. The transaction, valued at approximately $86.1 million, is structured as a combined stock-and-cash deal, and is designed to unify two established financial institutions with deep local roots across Georgia and Florida.

Under the terms, Colony Bankcorp will acquire 100% of TC Bancshares’ common stock, with each shareholder able to choose between cash or Colony stock, subject to proration provisions. The deal awaits regulatory and shareholder approvals and is expected to close in the fourth quarter of 2025.

Expanding Presence Across Key Growth Markets

The merger will form a combined company with approximately $3 billion in assets, close to $2.5 billion in deposits, and an expanded network spanning vital growth corridors throughout Georgia and the Florida Panhandle. Colony Bankcorp’s acquisition seeks to capitalize on increasing economic migration and commercial activity in these regions, reinforcing its position as a leading community bank in the Southeast. The expanded franchise is set to have over 40 branches, improving accessibility and service for both individuals and businesses.

Both banks have a strong history of personalized customer service and deep engagement with small- to mid-sized businesses—a key economic driver in the region. According to the Federal Deposit Insurance Corporation (FDIC), community banks hold almost half of all small business loans within their markets, highlighting the critical role such mergers play in local economies.

Transaction Rationale: Scale, Service, and Shareholder Value

The agreement reflects a growing trend in the banking sector, where institutions seek out strategic mergers to scale operations, fuel digital transformation, diversify loan portfolios, and boost financial stability in an increasingly competitive regulatory environment. The expectation is that the combined institution will benefit from operational synergies, including shared technology, talent, and expanded product offerings.

• Increased Scale: With enhanced scale, the merged entity can compete more effectively with larger banks and fintechs entering the region.
• Broadened Capabilities: Shareholders and customers will benefit from a wider suite of banking solutions, including real estate lending, commercial products, digital banking enhancements, and wealth management services.
• Cost Synergies: The companies anticipate annual cost savings through streamlined operations and reduced overhead, estimated at 8-10% of combined non-interest expenses.
• Shareholder Returns: The deal is projected to be accretive to Colony’s earnings per share within the first year of closing, excluding one-time merger expenses.

Leadership and Integration Strategy

Current Colony Bankcorp CEO Heath Fountain will lead the combined organization. Integrating the two entities will involve strategic alignment of core banking platforms, talent pools, and branch networks. Plans include targeted investments in technology to streamline customer experience and back-end operations, ensuring continuity for clients of both legacy banks.

Significant emphasis will be placed on retaining top talent from both organizations and supporting seamless customer transitions. Community outreach initiatives and relationship management teams are set to remain pillars of the bank’s operational strategy post-merger.

Market Response and Broader M&A Trends

Investors responded optimistically to the announcement, with shares of both banks experiencing modest gains amidst a broader wave of regional bank mergers. The move aligns with recent consolidation activity in U.S. banking. According to S&P Global, the total value of U.S. bank M&A deals exceeded $77 billion in 2024, motivated by a low-interest-rate environment and increasing costs around regulatory compliance and cybersecurity.

Specifically, Southeastern markets have been a hotbed for M&A activity due to rapid population growth, robust commercial real estate demand, and technological innovation—trends driving the appetite for increased scale and new revenue streams.

Next Steps

The proposed merger must pass shareholder votes from both institutions and clear regulatory reviews by the Federal Reserve and state banking regulators. Both sides have expressed confidence in a timely approval process, highlighting their shared culture and longstanding commitment to community-focused banking.

Upon completion, customers of TC Federal Bank are expected to benefit from broader banking access, new products, and investment in digital channels. Colony Bankcorp’s shareholders, meanwhile, gain exposure to high-growth deposit markets and enhanced earnings power.