Georgia-based Colony Bankcorp, Inc. has signed an agreement to purchase LBC Bancshares, Inc. which is the parent company of Calumet Bank, headquartered in LaGrange, the companies announced on Tuesday..
“We are pleased to announce the acquisition of LBC and Calumet Bank,” said Heath Fountain, president and chief executive officer of Colony Bankcorp. “This acquisition will allow Colony to
accelerate its growth by increasing our footprint to include the attractive Western Georgia markets of
LaGrange and Columbus and additionally providing us access to the Atlanta market via Calumet’s loan
production office there.
“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 in LaGrange, Columbus and Atlanta as we increase our combined company’s operational scale and bring additional resources to our new markets.”
Colony and Calumet both have Columbus branches. Colony is on Bradley Park Drive and Calumet is located on Airport Thruway.
The deal is a combined stock and cash transaction. LBC Bancshares is valued at approximately $34.1 million, according to a news release announcing the deal. As of Sept. 30, LBC had approximately $228 million in assets, $130 million in loans, $204 million in deposits and $19 million in tangible common equity.
Upon completion of the transaction, Colony is expected to have approximately $1.4 billion in assets, $930 million in loans, and $1.2 billion in deposits, according to the news release.