Colony Bankcorp Expands with Ellerbee Agency Acquisition in Georgia

In a strategic move to expand its insurance operations, Colony Bankcorp has announced the acquisition of the Ellerbee Agency, located in Monroe, Georgia, for $3.5 million. This acquisition follows Colony's entry into the insurance market in 2021 with the purchase of the Barnes Agency in Macon. This move is anticipated to boost Colony's earnings in 2026 and provides potential for cross-selling benefits to the insurer's 7,000 customers. The acquisition strategy aligns with the bank's aim for efficient growth and market expansion as noted by CEO Heath Fountain. Industry trends have seen a reversal, with banks exiting the insurance sector over the last two years, partly influenced by high valuations driven by private equity investments. Such divestitures have allowed banks to capitalize on high valuations and channel funds into other acquisitions. However, the fundamentals of insurance as a means to generate significant noninterest income still remain an attractive proposition for banks, as noted by industry analysts. With this acquisition, Colony is set to double its insurance commission income and gain new geographical footholds in Monroe, Greensboro, and Lake Oconee. Sean Ellerbee, the founder of the Ellerbee Agency, will join Colony Insurance’s management team, continuing the focus on customer-centric service. Although its last bank acquisition was in 2021, Colony has expressed its intention to pursue further opportunities, maintaining a lookout for potential acquisitions within the Georgia-Alabama-Florida corridor.