First Community Corporation Expands into Atlanta with Signature Bank Acquisition

In a strategic move to enlarge its footprint, First Community Corporation (NASDAQ: FCCO), the holding entity for First Community Bank, has announced its acquisition of Signature Bank of Georgia. This definitive merger agreement is valued at about $41.6 million in an all-stock transaction, which reflects First Community's commitment to expanding in growth markets, particularly in the dynamic Atlanta-Sandy Springs-Roswell area.

Merger Details

The agreement states that on a pro forma basis, the combined assets of the new entity will amount to approximately $2.3 billion, with total deposits hitting around $2.0 billion and total loans reaching $1.5 billion upon closing. This transaction will not only add new value but also enhance the service range across the newly formed 23-office banking company. The locations will span across key regions, including the Midlands, Aiken, Upstate, Piedmont Regions of South Carolina, and the Augusta and Atlanta areas.

Both boards of directors from First Community Corporation and Signature Bank have unanimously approved the merger. Nonetheless, the closing of the transaction is pending regulatory approvals and the necessary shareholder consent from both companies, expected to be finalized in the first quarter of 2026.

Leadership and Cultural Synergy

The acquisition comes with high hopes for cultural synergy between both banking communities. First Community's President and CEO, Michael C. Crapps, highlighted the imperative of this partnership, voicing excitement about incorporating Signature's unique expertise in specialized lending, with a focus on Small Business Administration loans. He articulated that this merger represents an integration of values and business philosophy, promising to foster a comprehensive banking environment for small businesses and professionals.

Ted Nissen, President and CEO of First Community Bank, also echoed this sentiment by mentioning the robust SBA lending framework established by Signature. This integration is anticipated to bolster support for local entrepreneurs, ensuring the joint venture retains a keen focus on community development and service enhancement.

Financial Projections and Benefits

As part of the merger agreement, shareholders of Signature will swap their shares at a rate of 0.6410 shares of First Community common stock per Signature share. Financial estimates project that this acquisition will enhance First Community’s tangible common equity ratio by approximately 35 basis points, resulting in a ratio of 7.45%, which reflects a solid financial standing. Furthermore, First Community anticipates a 4.4% increment in earnings per share in 2026 due to this merger.

The merger's structure predicts a tangible book value dilution of approximately 2.6% with a recovery timeframe of about 2.2 years, showcasing a promising internal rate of return of about 27.6%. The officials involved view these numbers as indicative of significant strategic and financial benefits arising from the union.

Future Leadership Dynamics

With the acquisition of Signature, Freddie J. Deutsch, Chairman and CEO of Signature, is set to take the role of Regional Market President and Director of Specialty Business Lending at First Community Bank. This transition marks a continuation of Signature's leadership excellence within the broader organizational framework. Additionally, two current directors from Signature will be invited to join First Community's Board of Directors post-merger, ensuring continuity of leadership and operational philosophy.

The merged entity aspires to retain the best talents from both banks to forge a strong, integrated organization that aligns with the growth trajectories of both banks while providing exceptional services to their combined clientele.

Conclusion

As First Community Corporation embarks on this important merger, it embraces the potential for growth and enhanced service offerings in the Atlanta-Sandy Springs-Roswell market. This acquisition not only highlights the strategic direction of First Community but also underscores the significance of community-oriented banking that values local relationships and support for small business growth, promising a mutually beneficial future for banking in the region.