Strategic Merger: First Community Bankshares Acquires Hometown Bancshares
Strategic Merger Announcement
First Community Bankshares, Inc. (NASDAQ: FCBC) has made an important announcement about its planned acquisition of Hometown Bancshares, Inc. This merger marks a significant step in First Community's journey to strengthen its position in the banking sector.
Details of the Acquisition
As part of the merger agreement, First Community will absorb Hometown Bancshares, with its banking subsidiary, First Community Bank, taking over Hometown's subsidiary, Union Bank, Inc. With Union Bank's total assets around $402 million as of June 30, the merger is projected to elevate First Community's total consolidated assets to approximately $3.6 billion across its 60 branches.
Strategic Growth and Community Focus
The merger aligns with First Community's strategic objectives aimed at growing low-cost core deposits, which will aid in enhancing the banking services offered to customers in the Parkersburg-Marietta-Vienna metropolitan area. Gary R. Mills, President and CEO of First Community Bank, expressed enthusiasm about this partnership, highlighting the historical excellence of First Community in community banking and the exciting potential to expand into new markets.
Hometown Bancshares' Perspective
From the perspective of Hometown Bancshares, President Tim Aiken emphasized the importance of finding a community-focused partner. The merger will allow Hometown to introduce new services to its customers that Union Bank currently does not provide, enhancing their banking experience significantly. Aiken stated confidence in the merger, anticipating that it will generate value for customers, shareholders, and employees alike.
Transaction Details
The financial terms specify that each share of Hometown common stock will convert into 11.706 shares of First Community common stock, translating to $472.10 per share, resulting in a total transaction value of approximately $41.5 million based on the closing stock price of $40.33. The transaction is designed to have minimal impact on First Community's tangible book value and is expected to boost earnings per share in the high-single digits.
Approval and Future Outlook
The Board of Directors from both institutions have unanimously approved the merger. However, it remains subject to satisfying customary closing conditions, which include shareholder approval and receiving necessary regulatory approvals. This transaction should be completed in early 2026, showcasing First Community's readiness to welcome Union Bank’s CEO, Tim Aiken, into its leadership team.
About First Community Bankshares, Inc.
First Community Bankshares, Inc., with its headquarters in Bluefield, Virginia, is a financial holding company that offers a broad range of services through its subsidiary, First Community Bank. Operating 52 branch locations across multiple states, First Community continues to thrive as a robust banking institution with reported assets of approximately $3.2 billion as of March 31.
Investor Relations Contact
For investors seeking more information, please contact:
David D. Brown
Chief Financial Officer
First Community Bankshares, Inc.
Phone: (276) 326-9000
Frequently Asked Questions
What is the main purpose of the merger between First Community and Hometown Bancshares?
The merger aims to enhance market presence and service offerings, ultimately benefiting customers from both banks.
How will the acquisition affect existing customers of Hometown Bancshares?
Customers can expect improved services, including trust and wealth management services that were previously not available to them.
What will happen to Hometown Bancshares' shares after the merger?
Each share will convert into First Community common stock at the agreed ratio, providing shareholders with valuable equity in a larger institution.
When is the merger expected to be finalized?
The transaction is anticipated to be completed in early 2026, pending necessary approvals.
Who should investors contact for more information regarding this merger?
Investors can reach out to David D. Brown, the CFO of First Community Bankshares, for further details.
About The Author
Contact Olivia Taylor privately here. Or send an email with ATTN: Olivia Taylor as the subject to contact@investorshangout.com.
About Investors Hangout
Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/
The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.
