As Colony Bankcorp Tries First Reliance in South Carolina Fair Finance Watch Writes FDIC

As Colony Bankcorp Tries First Reliance in South Carolina Fair Finance Watch Writes FDIC by Matthew Russell Lee, Patreon Book Substack SOUTH BRONX/SDNY, July 11 – Colony Bankcorp of Georgia (and Alabama and Florida) proposes to expand into South Carolina by buying First Reliance Bank.   Fair Finance Watch, after the FDIC thumbed its nose at the Community Reinvestment Act by eliminating public notice of branch application, has commented to the FDIC on the 2025 HMDA data of Colony Bank - and on the scam: Dear Regional Director Servaes, Deputy Brown, Assistant Mohammed and others at the FDIC:    This is a timely comment opposing and requesting an extension of the FDIC's public comment period on the proposal by Colony Bank to buy and merge with First Reliance Bank.  Fair Finance Watch, which has commented to the FDIC that its lawless decision to eliminate public notice of branch applications violates the CRA, noting the FDIC's rationale that it receives few public comments, hereby timely informs the FDIC of this, using the 2025 HMDA data put in the CFPB website less than a month ago:  In 2025 in Georgia, Colony Bank made 604 loans to whites, with only 31 denial, and only 124 loans to African Americans with fully 12 denials. This is disparate. In 2025 in Alabama, Colony Bank made 18 loans to whites, and only ONE loan to an African Americans. This is disparate. In 2025 in Florida, Colony Bank made 82 loans to whites, and only TWO loans to African Americans. This too is disparate. Colony Bank's 2025 data was published less than one week ago. No other organization has yet analyzed these numbers. Fair Finance Watch is submitting them to the FDIC now, because the Federal Deposit Insurance Corporation has an obligation to evaluate whether an institution seeking to expand into a new state has met the credit needs of its existing communities. These numbers show it has not.  Public hearings should be held.   FFW notes again in the FDIC's proposal RIN 3064-AG10: "the FDIC has received a limited number of public comments in response to subpart C applications.... Therefore, the FDIC is proposing to eliminate the public notice and related public comment period from subpart C and to make conforming changes to subpart A of 12 CFR part 303 of the FDIC Rules."   See, e.g., Sept 10, 2025: https://www.americanbanker.com/opinion/the-fdic-is-undercutting-a-key-element-of-the-cra   The Community Reinvestment Act specifies that "the appropriate Federal financial supervisory agency shall (1) assess the institution's record of meeting the credit needs of its entire community, including low- and moderate-income neighborhoods, consistent with the safe and sound operation of such institution; and (2) take such record into account in its evaluation of an application for a deposit facility by such institution."     That is, the only enforcement mechanism of CRA is its consideration on applications for deposit facilities: branches, and proposed mergers like this one.    But now the Federal regulator(s) blithely have eliminated public notice and public comment on banks' proposals to expand.  The above-quoted reasoning is that few comments are filed. So, that is now changing. Your support means a lot. As little as $5 a month helps keep us going and grants you access to exclusive bonus material on our Patreon page. Click here to become a patron. Feedback: Editorial [at] innercitypress.com SDNY Press Room 500 Pearl Street, NY NY 10007 USA Mail: Box 130222, Chinatown Station, NY NY 10013 Reporter's mobile (and weekends): 718-716-3540 Other, earlier Inner City Press are listed here, and some are available in the ProQuest service, and now on Lexis-Nexis.  Copyright 2006-2025 Inner City Press, Inc. To request reprint or other permission, e-contact Editorial [at] innercitypress.com