First Community Bankshares, Inc. has announced its acquisition of Hometown Bancshares, Inc., which will result in First Community's banking subsidiary, First Community Bank, acquiring Hometown's banking subsidiary, Union Bank, Inc. Union Bank had total assets of approximately $402 million as of June 30, 2025. After the acquisition, First Community is expected to have total consolidated assets of approximately $3.6 billion with 60 branch locations in four states.
The transaction is valued at approximately $41.5 million, with each outstanding share of Hometown common stock being 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 agreement is expected to be consummated in the first quarter of 2026.
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.
As of March 31, 2025, First Community reported consolidated assets of $3.2 billion, while Hometown, located in Middlebourne, WV, had assets totaling $402 million as of June 30, 2025.
The transaction received unanimous approval from both First Community’s and Hometown’s boards of directors and is subject to customary closing conditions, including the approval of Hometown’s shareholders and the receipt of all required regulatory approvals.
First Community expects the transaction to be minimally dilutive to tangible book value per share (non-GAAP) and to provide high-single digit accretion to earnings per share. Upon completion of the transaction, First Community anticipates welcoming Union Bank’s chief executive officer, Tim Aiken, to the First Community team.
This acquisition aligns with First Community’s strategic focus on growing low-cost core deposits and expanding its presence in the Parkersburg-Marietta-Vienna MSA. First Community operates 52 branch banking locations in Virginia, West Virginia, North Carolina, and Tennessee, while Union Bank operates eight locations in northern West Virginia.
No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended. Participants in the transactions may be deemed "participants" in the solicitation of Hometown’s shareholders in favor of the merger with First Community. Information about these participants will be set forth in the proxy statement/prospectus when it is filed with the SEC. Following these announcements, the company's shares moved 1.23%, and are now trading at a price of $40.825. Check out the company's full 8-K submission here.
