(

) Business Acquisition

October 22, 2018,

the Bank completed its acquisition of

one

branch office and a vacant lot from Planters First Bank (“PFB”) located in Albany, Georgia for a total cash consideration of

$10.2

million. The assets and liabilities as of the effective date of the transaction were recorded at their respective estimated fair values. The excess of the purchase price over the net estimated fair values of the acquired assets and liabilities was allocated to identifiable intangible assets with the remaining excess allocated to goodwill. In the periods following the acquisition, the financial statements will include the results attributable to the Albany branch purchase beginning on the date of purchase. For the

three

months period ended

March 31, 2019,

the revenues and net loss attributable to the Albany branch were

$71

thousand and

$75

thousand, respectively. It is impracticable to determine the pro-forma impact to the

2018

revenues and net income if the acquisition had occurred on

January 1, 2018

as the Bank does

not

have access to those records for a single branch.

The following table provides the purchase price as of acquisition date, the identifiable assets acquired and liabilities assumed at their estimated fair values, and the resulting goodwill of

$202

thousand recorded from the acquisition:

Purchase Price Consideration (in thousands) :
Cash Consideration	$	10,238
Total purchase price for PFB branch acquisition	$	10,238

Assets acquired at fair value:
Cash and cash equivalents	$	195
Loans		20,430
Premises and equipment, net		773
Core deposit intangible		560
Other assets		123
Total fair value of assets acquired	$	22,081

Liabilities assumed at fair value:
Deposits	$	12,032
Other liabilities		13
Total fair value of liabilities assumed	$	12,045

Net Assets acquired at fair value:	$	10,036

Amount of goodwill resulting from acquisition	$	202

The total amount of goodwill arising from this transaction of

$202

thousand is deductible for tax purposes, pursuant to section

197

of the Internal Revenue Code.

The Bank recorded all loans acquired at the estimated fair value on the purchase date with

carryover of the related allowance for loan losses. The Bank only acquired loans which were deemed to be performing loans with

signs of credit deterioration.

May 1, 2019,

the Company completed its acquisition of LBC Bancshares, Inc. (“LBC”), a bank holding company headquartered in LaGrange, Georgia. Upon consummation of the acquisition, LBC was merged with and into the Company, with Colony as the surviving entity in the merger. At that time, LBC’s wholly owned bank subsidiary, Calumet Bank, was also merged with and into the Bank. The acquisition expanded the Company’s market presence, as Calumet Bank had

two

full-service banking locations,

one

each in LaGrange, Georgia and Columbus, Georgia, as well as a loan production office in Atlanta, Georgia. Under the terms of the Merger Agreement, each LBC shareholder will have the option to receive either

$23.50

in cash or

1.3239

shares of the Company’s Common Stock in exchange for each share of LBC common stock, subject to customary proration and location procedures, such that

percent of LBC shares received the stock consideration and

percent received the cash consideration, and at least

percent of the merger consideration paid in the Company stock. As a result, the Company issued

1,054,029

common shares at a fair value of

$18.7

million and paid

$15.3

million in cash to the former shareholders of LBC as merger consideration.

The Company is currently evaluating all fair value adjustments related to this transaction. The purchase price will be allocated among the net assets of LBC acquired as appropriate, with the remaining balance being reported as goodwill. As of

March 31, 2019,

LBC had total assets of

$207.3

million, total loans of

$131.9

million, and total deposits of

$184.9

million.

April 16, 2019,

the Bank entered into an agreement to acquire PFB Mortgage, the secondary market mortgage business of Planters First Bank for approximately

$833

thousand. The transaction, which did

not

require regulatory approval, closed on

May 1, 2019.

It included fixed assets and all pipeline loans, and customers will

not

be affected as loans will close and be processed as normal. Planters First Bank retained closed loans

not

yet sold (loans held for sale). The Bank is currently evaluating all fair value adjustments related to this transaction. The purchase price will be allocated among the net assets of PFB Mortgage acquired as appropriate, with the remaining balance being reported as goodwill.