First Community Bankshares Acquires Hometown Bancshares in a Strategic Merger

Strategic Insights -

First Community Bankshares, Inc. has entered a plan of merger agreement with Hometown Bancshares, Inc. to acquire Hometown's banking subsidiary, Union Bank, Inc., with total assets of approximately USD 402m. This merger will bring First Community's total consolidated assets to approximately USD 3.6bn with 60 branch locations in four states. The acquisition aligns with First Community's strategic focus on growing low-cost core deposits and positions the combined entity to expand its presence in the Parkersburg-Marietta-Vienna MSA.

Key Takeaways:

  • First Community Bankshares, Inc. will acquire Hometown Bancshares, Inc.'s banking subsidiary, Union Bank, Inc., for a total value of approximately USD 41.5m.
  • The acquisition will bring First Community's total consolidated assets to approximately USD 3.6bn with 60 branch locations in four states.
  • The merger is expected to position the combined entity to expand its presence in the Parkersburg-Marietta-Vienna MSA.
  • The terms of the agreement provide for the conversion of Hometown common stock into First Community common stock, with each share of Hometown common stock translating to USD 472.10 in First Community common stock.
  • D.A. Davidson & Co. served as financial advisor to First Community, and Bowles Rice LLP served as legal counsel.
  • Hovde Group, LLC served as financial advisor to Hometown, and Hunton Andrews Kurth LLP served as legal counsel.

Statistics:

  • Total assets of Union Bank, Inc.: approximately USD 402m.
  • Total consolidated assets of First Community Bankshares, Inc. after the acquisition: approximately USD 3.6bn.
  • Aggregate transaction value: approximately USD 41.5m.
  • Number of branch locations in four states: 60.
  • Closing price for First Community common stock (as of July 18, 2025): USD 40.33.
  • Number of shares of First Community common stock to be received for each share of Hometown common stock: 11.706.

Sources:

  • M2 EQUITYBITES-July 28, 2025-First Community Bankshares Acquires Hometown Bancshares (C)2025 M2 COMMUNICATIONS
  • http://www.m2.co.uk ( News source )