Colony Bankcorp, the parent of Colony Bank, has agreed to buy the East Georgia Homebuilder Finance loan portfolio of Cadence Bank.
The takeover of the loan book will expand Colony Bankcorp’s footprint into the cities of Savannah and Augusta.
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The deal includes around $47m in loans outstanding along with nearly $80m in total commitments.
To execute the deal, Colony Bankcorp will make a payment that is said to be “at par of the outstanding loans” along with $250,000 in cash consideration.
As part of the deal, Colony Bankcorp will absorb the Homebuilder Finance loan portfolio team.
Deal completion is anticipated on the 26th of this month.
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By GlobalDataColony Bankcorp president and CEO T. Heath Fountain said: “Coupled with our announcement on December 17, 2019, to enter the Augusta Market with the addition of Hugh Hollar to the newly created position of Senior Vice President of the Homebuilder Finance Division, this acquisition will expand our presence in the Savannah and Augusta markets, creating a ‘one-stop-shop’ for homebuilders coupled with our mortgage business.
“Increasing our fee income and interest income has been a priority for us as we seek to further diversify our loan portfolio and utilise our balance sheet to enhance our earnings.”
Set up in 1975, Colony Bankcorp has 33 branches across Georgia.
