First Community Corporation announced a definitive merger agreement to acquire Signature Bank of Georgia in an all-stock transaction valued at approximately $41.6 million, based on First Community's closing price of $24.84 per share on July 11, 2025. This acquisition will expand First Community's presence into the Atlanta-Sandy Springs-Roswell, Georgia MSA.
The combined entity is projected to have approximately $2.3 billion in total assets, $2.0 billion in total deposits, and $1.5 billion in total loans upon closing. This transaction will create a 23-office banking company, significantly enhancing First Community's geographic footprint and service offerings. The merger agreement received unanimous approval from both companies' Boards of Directors.
Signature shareholders will receive 0.6410 shares of First Community common stock for each share of Signature common stock. The acquisition is expected to be accretive to First Community's earnings per share by approximately 4.4% in 2026, the first year of combined operations. It is also anticipated to enhance First Community's tangible common equity to tangible assets ratio by approximately 35 basis points, resulting in a pro forma ratio of 7.45%.
The transaction is expected to result in 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%. Signature Chairman and CEO Freddie J. Deutsch will join First Community Bank as Regional Market President and Director of Specialty Business Lending, bringing expertise in SBA lending.
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