First Community to acquire Signature Bank of Georgia in $41.6m deal

Published 14/07/2025, 12:10
First Community to acquire Signature Bank of Georgia in $41.6m deal

LEXINGTON, S.C./SANDY SPRINGS, Ga. - First Community Corporation (NASDAQ:FCCO), a profitable regional bank with a 24-year track record of consistent dividend payments and strong recent performance (up 42% over the past year), announced today it has signed a definitive agreement to acquire Signature Bank of Georgia (OTCPK:SGBG) in an all-stock transaction valued at approximately $41.6 million, based on FCCO’s July 11 closing price.

Under the agreement, Signature shareholders will receive 0.6410 shares of First Community common stock for each Signature share. The combined entity will have approximately $2.3 billion in total assets, $2.0 billion in deposits, and $1.5 billion in loans upon completion. According to InvestingPro data, First Community currently trades at an attractive P/E ratio of 12.4x, with analysts maintaining a strong buy consensus and projecting continued profitability.

The merger will create a 23-office banking company spanning South Carolina’s Midlands, Aiken, Upstate, and Piedmont regions, the Augusta area in Georgia, and now extending into the Atlanta-Sandy Springs-Roswell metropolitan area.

"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 Michael C. Crapps, First Community’s President and CEO, in the press release.

The transaction is expected to be accretive to First Community’s earnings per share by approximately 4.4% in 2026, the first full year of combined operations. The deal is projected to enhance First Community’s tangible common equity to tangible assets ratio by about 35 basis points.

Signature’s Chairman and CEO Freddie J. Deutsch will become Regional Market President and Director of Specialty Business Lending at First Community Bank. Two current Signature directors will join First Community’s board.

The merger, unanimously approved by both companies’ boards, is expected to close in early first quarter 2026, subject to regulatory and shareholder approvals. InvestingPro analysis reveals First Community’s solid financial health, with a 16.5% revenue growth and maintained dividend increases for three consecutive years. For deeper insights into First Community’s valuation and growth prospects, including 8 additional ProTips, subscribers can access comprehensive analysis on InvestingPro.

First Community was advised by Hovde Group, LLC and Nelson Mullins Riley & Scarborough, LLP, while Signature was advised by Olsen Palmer LLC and Fenimore Kay Harrison LLP.

In other recent news, First Community Corporation reported its financial results for the first quarter of 2025, highlighting a net income of $3.997 million and a diluted earnings per share of $0.51. This performance shows an increase from the previous year’s first quarter net income of $2.597 million and diluted EPS of $0.34. The company also experienced significant growth in customer deposits and total loans, with a 12.1% annualized increase in deposits and a 10.4% rise in loans. Additionally, First Community Corporation announced a cash dividend of $0.15 per common share for the first quarter.

In terms of governance, the company’s annual shareholders meeting resulted in the election of new board members and the approval of an increase in shares for the equity incentive plan. Furthermore, the company has initiated a stock repurchase program, authorizing up to $7.5 million for share buybacks. This repurchase plan is expected to provide opportunities for capital management, although it is not an obligation. The appointment of Elliott Davis, LLC as the independent registered public accountants for the fiscal year ending December 31, 2025, was also ratified. These developments reflect First Community Corporation’s ongoing strategic and financial initiatives.

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