First Community (FCCO) in Lexington, S.C., has agreed to buy Savannah River Financial in Augusta, Ga.
First Community plans to pay $33.6 million, or $11 a share, for the $157 million-asset Savannah River, the companies announced Wednesday. Sixty percent of the sale price will be paid in cash, and the remainder in First Community stock.
The deal would give the $625 million-asset First Community its first branch outside its home state. It has 11 South Carolina branches; Savannah River has one branch in Augusta, Ga., and one in Aiken, S.C.
"This is a comfortable extension of our company into a contiguous county, and beyond into Augusta," First Community Chief Executive Michael Crapps said in a news release. "The central Savannah River area and the midlands of South Carolina have many economic similarities, and both are experiencing nice momentum in business growth."
Three Savannah River board members, including Chief Executive Randy Potter, would join the First Community board. Potter plans to remain with the company for one year, and three Savannah River executives would remain as regional presidents with the combined company.
The deal is expected to be completed in the fourth quarter. FIG Partners advised First Community, and Allen C. Ewing & Co. advised Savannah River.
The Treasury Department auctioned its Troubled Asser Relief Program shares in First Community a year ago.