Colony Bankcorp in Fitzgerald, Ga., has agreed to buy LBC Bancshares in LaGrange, Ga.
The $1.2 billion-asset Colony said in a press release Tuesday that it will pay $34.1 million in cash and stock for the $228 million-asset parent of Calumet Bank. The deal is expected to close in the first half of next year.
LBC has two branches, $130 million in loans and $204 million in deposits. The company also has a loan production office in Atlanta.
“This acquisition will allow Colony to accelerate its growth by increasing our footprint to include the attractive western Georgia markets of LaGrange and Columbus,” Heath Fountain, Colony’s president and CEO, said in the release.
“Considering Calumet's market strength and reputation, as well as the lack of overlap between our markets, we believe significant opportunities exist for continued growth … as we increase our combined company's operational scale and bring additional resources to our new markets," Fountain added.
Colony said it expects the transaction to be immediately accretive to its fully diluted earnings per share, excluding transaction costs.
Lenny Bateman Jr., LBC’s president and CEO, will join Colony when the acquisition is completed. Bateman, who will initially focus on the transition, will become a senior credit officer at Colony.
Hovde Group and Alston & Bird advised Colony. Banks Street Partners and James-Bates-Brannan-Grover advised LBC.
