Colony Bankcorp redeems remaining perpetual preferred stock

New York, March 31 – Colony Bankcorp, Inc. will redeem the remaining $9.36 million liquidation preference of its 9% cumulative perpetual preferred stock.

Approval has been obtained from the Georgia Department of Banking and Finance and the Federal Reserve Bank of Atlanta, according to a new release from the company.

“This transaction enhances shareholder value as we have eliminated TARP funds originally on our books for $28 million that most recently had a dividend rate of nine percent,” president and chief executive officer Ed Loomis said in a news release.

He added that the action will be immediately accretive to the bank’s earnings per share.

Funding will come from cash on hand and a $5 million short-term note.

Previously the bank redeemed $5 million of the preferreds in December, $3.66 million in September, $5.15 million in December 2015 and $4.83 million in August 2015.

Colony Bankcorp is a Fitzgerald, Ga., bank holding company.

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