First Community Corp., the holding company of First Community Bank, and Signature Bank of Georgia jointly announced the signing of a definitive merger agreement, under which First Community has agreed to acquire Signature in an all-stock transaction with a total current value of approximately $41.6 million, based on First Community's closing price of $24.84 per share as of July 11, 2025. The transaction value at the time of the merger may change due to changes in the price of First Community stock.
On a pro forma combined basis, the combined company is expected to have approximately $2.3 billion in total assets, $2 billion in total deposits and $1.5 billion in total loans at closing. The transaction will create a 23-office banking company with locations spanning the Midlands, Aiken, Upstate and Piedmont Regions of South Carolina, the Augusta, Georgia area and now the Atlanta-Sandy Springs-Roswell, Georgia MSA. The merger agreement has been unanimously approved by the Board of Directors of each company. Closing of the transaction, which is expected to occur early in the first quarter of 2026, is subject to customary conditions, including regulatory approval and approval by the shareholders of Signature and First Community.
"This partnership marks an exciting step forward as we expand into our next growth market, the dynamic and fast-growing Sandy Springs/Atlanta area," said First Community President and CEO Michael C. "Mike" Crapps. "During our initial conversations, there was immediate mutual recognition of cultural alignment. Signature's deep local relationships, talented leadership team and specialized lending capabilities - especially in SBA - will significantly enhance our presence and service offerings across all of our combined markets. We're proud to welcome Signature's experienced team and look forward to building on their strong foundation together."
"One of the most compelling aspects of this partnership is the opportunity to build upon Signature's well-established and high-performing SBA lending platform," said Ted Nissen, President and CEO of First Community Bank. "Signature's team brings deep expertise and a strong track record in small business lending, which aligns perfectly with our strategic focus on supporting entrepreneurs, local businesses and professionals. Together, we're well positioned to expand this line of business across our legacy footprint while also enhancing Signature's existing franchise with our wealth management and residential mortgage lines of business."
Per the merger agreement, Signature shareholders will have the right to receive 0.6410 shares of First Community common stock for each share of Signature common stock. The merger is expected to enhance First Community's tangible common equity to tangible assets (TCE/TA) ratio by approximately 35 basis points, resulting in a pro forma ratio of 7.45%. It is projected to be accretive to First Community's earnings per share by approximately 4.4% in 2026, the first year of combined operations. The transaction structure anticipates tangible book value dilution of approximately 2.6%, with an earnback period of 2.2 years. The internal rate of return on the deal is estimated at approximately 27.6%, reflecting the strong financial and strategic merits of the transaction.
In connection with the merger, Signature Chairman and CEO Freddie J. Deutsch will be appointed to the position of Regional Market President and Director of Specialty Business Lending of First Community Bank. Other key members of Signature's leadership team will also continue with First Community Bank. In addition, two current Signature directors will be invited to join the Board of Directors of First Community.
"Our Board of Directors, executive team and I are proud to support this strategic partnership with a company that brings strong capital resources and significant growth momentum," said Deutsch. "This transaction provides meaningful value to our shareholders—including a cash dividend and increased liquidity—while positioning the combined company for long-term success. First Community's leadership team has built a strong community bank over the last several decades and embodies similar cultural values as our own. We look forward to the partnership ahead."
First Community was advised in the transaction by Hovde Group LLC as financial advisor and Nelson Mullins Riley & Scarborough LLP, as legal counsel. Signature was advised by Olsen Palmer LLC as financial advisor and Fenimore Kay Harrison LLP as legal counsel.