First Community Bankshares to Acquire Hometown Bancshares for $41.5 Million

Strategic Insights -

First Community Bankshares, Inc., a financial holding company based in Bluefield, Virginia, has entered into a merger agreement to acquire Hometown Bancshares, Inc., headquartered in Middlebourne, West Virginia. The acquisition, valued at $41.5 million, is expected to be completed in the first quarter of 2026, subject to customary closing conditions and regulatory approvals.

As per the agreement, each outstanding share of Hometown common stock will be converted into the right to receive 11.706 shares of First Community common stock, equating to $472.10 per share of Hometown common stock. The transaction will strengthen First Community's banking franchise in West Virginia, with Union Bank's CEO, Tim Aiken, joining the First Community team upon completion.

The acquisition brings together two prominent banking entities, with First Community Bankshares operating 52 branch locations in four states and holding consolidated assets of $3.2 billion as of March 31, 2025. Hometown Bancshares, on the other hand, operates eight locations in Northern West Virginia, with total assets of $402 million as of June 30, 2025.

Key Takeaways:

  • First Community Bankshares to acquire Hometown Bancshares for $41.5 million, creating a stronger banking franchise in West Virginia.
  • Each outstanding share of Hometown common stock will be converted into the right to receive 11.706 shares of First Community common stock, valuing Hometown at $472.10 per share.
  • The transaction will result in total consolidated assets of approximately $3.6 billion for First Community Bank, with 60 branch locations in four states.
  • Union Bank's CEO, Tim Aiken, will join the First Community team upon completion of the acquisition.
  • The acquisition is subject to customary closing conditions, including approval from Hometown's shareholders and receipt of all required regulatory approvals.
  • Expected completion of the acquisition is in the first quarter of 2026.

Statistics:

  • Total assets of Union Bank as of June 30, 2025: $402 million.
  • Total assets of First Community Bankshares as of March 31, 2025: $3.2 billion.
  • Total consolidated assets of First Community Bank after acquiring Union Bank: approximately $3.6 billion.
  • Branch locations of First Community Bank: 52 locations in four states.
  • Number of branches following the acquisition: 60 locations in four states.
  • Valuation of the acquisition: approximately $41.5 million, based on a closing price for First Community common stock of $40.33 as of July 18, 2025.

Sources:

  • Global Banking News, July 22, 2025
  • M2 Communications, July 22, 2025