Colony Bankcorp Inc. is buying back 5,000 shares of its cumulative perpetual preferred stock, with a total principal amount of $5.0 million.

After the payment, the company will have 9,360 preferred shares outstanding. The Georgia Department of Banking and Finance and the Federal Reserve Bank of Atlanta approved the transaction, the release added. The shares were originally issued under the U.S. Treasury's Troubled Asset Repurchase Plan.

Colony Bankcorp expects the transaction to be immediately accretive to earnings per share and plans to redeem additional preferred stock in 2017.