Colony Bankcorp in Fitzgerald, Ga., has agreed to buy the east Georgia homebuilder finance loan portfolio of Cadence Bancorp. in Houston.
The $1.5 billion-asset Colony said in a press release Monday that the deal includes $47 million in outstanding loans and $80 million in total commitments. Colony agreed to pay a purchase price that is at par of the outstanding loans, plus cash consideration of $250,000.
The deal will allow Colony to expand into the Georgia cities of Savannah and Augusta. Hugh Hollar, who had been the director of Cadence’s homebuilder finance division in the market, will oversee the business for Colony.
“Increasing our fee income and interest income has been a priority for us as we seek to further diversify our loan portfolio and utilize our balance sheet to enhance our earnings,” T. Heath Fountain, Colony’s president and CEO, said in the release.
