Colony Bankcorp has completed a sale-leaseback of two Georgia branch properties for $16.2 million and agreed to sell a third branch property for an additional $3.7 million, subject to further conditions. The arrangement brings in gross proceeds while allowing the bank to continue operating from the Manchester and Thomaston locations under long-term leases.
The company also announced its third-quarter results and a regular quarterly cash dividend in a separate release. It plans to hold an investor earnings call on October 29 and has prepared an investor presentation for community group presentations.
Branch property sale and leaseback
- Colony Bank sold its Manchester and Thomaston properties on October 27 for a combined gross price of $16.19 million.
- The agreement covers a third property in Tifton, priced at $3.71 million. That sale has not closed and remains subject to the buyer’s inspection and termination rights, as well as other closing conditions. The three-property transaction would total $19.90 million in gross proceeds if Tifton closes.
- The bank is leasing back the two properties already sold. The initial lease runs through October 31, 2041, with an option to renew for an additional 15 years, subject to specified conditions.
- Initial annual rent for Manchester and Thomaston is $1.34 million, payable monthly in advance. Rent increases by 2% annually on a compounded basis, starting in the second lease year.
- If the Tifton sale closes and the lease is amended to include that property, initial annual rent will increase by $308,275, to $1.65 million.
- The lease is triple-net: the bank remains responsible for property taxes, insurance, maintenance, repairs, capital improvements and other property-related costs.
- At renewal, rent will be the greater of fair market rent or 102% of the preceding year’s base rent, with further 2% annual compounded increases.
- Colony Bankcorp has guaranteed the bank’s lease obligations. If the bank has an uncured default, the landlord may seek payment from the parent company; the lease also allows the landlord, subject to applicable terms and law, to seek damages that can include the discounted value of future rent.
Other announcements
- Colony Bankcorp said it released third-quarter 2026 results and announced a regular quarterly cash dividend. The amount of the dividend and the financial results are not detailed in the announcement summarized here.
- The company plans to hold an earnings call at 9 a.m. ET on October 29, 2026, and has prepared an investor presentation for use at community group presentations.
What changes
The bank receives gross sale proceeds but gives up ownership of the properties and takes on long-term rent obligations while continuing to bear most property costs under the triple-net leases. Colony Bankcorp’s guarantee also makes the parent responsible for the bank’s lease obligations if an uncured default occurs.