First Community Bankshares, Inc. Completes Acquisition of Hometown Bancshares, Inc.
Rhea-AI Summary
First Community Bankshares (NASDAQ: FCBC) completed its acquisition of Hometown Bancshares and Hometown's subsidiary Union Bank, effective at the close of business on January 23, 2026. The merger converts Union Bank into First Community Bank and brings Hometown’s eight West Virginia branch locations onto the FCBC network, opening as First Community Bank branches on January 26, 2026. Under the merger terms, Hometown shareholders receive 11.706 shares of First Community common stock per Hometown share. At December 2025 close, Hometown reported approximately $415 million in total assets, $172 in total loans and $376 million in total deposits. The deal is positioned to grow low-cost core deposits and expand presence in the Parkersburg–Marietta–Vienna MSA.
Positive
- Adds 8 branch locations in West Virginia to FCBC footprint
- Hometown brings ~$376 million in total deposits
- Transaction targets growth of low-cost core deposits
- Defines share exchange ratio of 11.706 FCBC shares per Hometown share
Negative
- Share issuance at 11.706-for-1 exchange will increase outstanding FCBC shares
- Integration of Hometown and Union Bank into FCBC operations may create execution demands
News Market Reaction
On the day this news was published, FCBC declined 0.27%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
FCBC was down 4.55% while close peers showed mixed, mostly modest moves: SPFI +1.15%, BFST +0.66%, CCNE -0.04%, GSBC -0.67%, ORRF -0.08%. This points to stock-specific trading rather than a sector-wide move.
Previous Acquisition Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jul 21 | Acquisition announcement | Positive | +1.1% | Announced stock-for-stock acquisition of Hometown Bancshares and related expansion. |
Prior Hometown acquisition news on Jul 21, 2025 produced a modest positive move of about 1.12%, indicating constructive but measured reactions to this deal.
Over the past year, FCBC has focused on shareholder returns and strategic expansion. On Jul 21, 2025, it announced the stock-for-stock acquisition of Hometown Bancshares, expected to lift consolidated assets to about $3.6 billion and expand to 60 branches. Subsequent filings through late 2025 detailed regulatory approvals and shareholder votes. Today’s announcement confirms closing of that same transaction and integration of Union Bank into First Community Bank, continuing the previously outlined growth path in West Virginia.
Historical Comparison
In the past year, FCBC issued one prior acquisition update on Hometown that moved the stock about 1.12%, suggesting historically modest reactions to this deal news.
The Hometown deal progressed from announcement in Jul 2025, through regulatory and shareholder approvals in late 2025, to legal completion and bank-level merger in Jan 2026.
Market Pulse Summary
This announcement completes FCBC’s acquisition of Hometown Bancshares, integrating Union Bank and adding about $415 million in assets and $376 million in deposits at year-end 2025. It follows the July 2025 deal announcement and subsequent regulatory and shareholder approvals. Investors may track branch conversion of the eight West Virginia locations, progress on low-cost core deposit growth, and future filings detailing post-merger earnings impact and balance sheet composition.
AI-generated analysis. Not financial advice.
BLUEFIELD, Va., Jan. 26, 2026 (GLOBE NEWSWIRE) -- First Community Bankshares, Inc. (NASDAQ: FCBC) (www.firstcommunitybank.com) (the “Company”), parent company of First Community Bank, announced today that it has completed the acquisition of Hometown Bancshares, Inc., (“Hometown”) and Hometown’s wholly owned subsidiary, Union Bank, Inc. The acquisition became effective at the close of business on January 23, 2026. First Community and Hometown previously announced an agreement to merge on July 19, 2025.
The completed acquisition included the merger of Union Bank into First Community Bank. Hometown’s eight branch locations in West Virginia will open as First Community Bank branches the morning of January 26, 2026. Under the terms of the merger agreement, Hometown’s shareholders will receive 11.706 shares of First Community common stock for each share of Hometown common stock.
This merger 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. “First Community has a 150-year history of community banking excellence in West Virginia. Our partnership with Hometown and Union Bank is a natural expansion into West Virginia markets that are similar in size and makeup to the locations where we’ve had great success across our broader banking footprint. We look forward to bringing the two franchises together to better serve our customers and local communities,” said Gary R. Mills, President and CEO of First Community Bank.
“We are pleased to announce our partnership with Union Bank. This collaboration will further strengthen our robust banking franchise in West Virginia. We believe First Community will benefit from Union’s strong deposit base, while Union’s customers will enjoy the advantages of increased scale, higher lending limits, and enhanced product and technology offerings from First Community,” said William (Will) P. Stafford, II, Chairman and Chief Executive Officer of First Community.
At the end of December 2025, Hometown had approximately
About First Community Bankshares, Inc.
First Community Bankshares, Inc., a financial holding company headquartered in Bluefield, Virginia, provides banking products and services through its wholly owned subsidiary First Community Bank. First Community Bank operated 52 branch banking locations in Virginia, West Virginia, North Carolina, and Tennessee as of December 31, 2025. First Community Bank offers wealth management and investment advice and services through its Trust Division and through its wholly owned subsidiary, First Community Wealth Management, which collectively managed and administered
This news release may include forward-looking statements. These forward-looking statements are based on current expectations that involve risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may differ materially. These risks include: changes in business or other market conditions; the timely development, production and acceptance of new products and services; the challenge of managing asset/liability levels; the management of credit risk and interest rate risk; the difficulty of keeping expense growth at modest levels while increasing revenues; and other risks detailed from time to time in the Company’s Securities and Exchange Commission reports including, but not limited to, the Annual Report on Form 10-K for the most recent fiscal year end. Pursuant to the Private Securities Litigation Reform Act of 1995, the Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.
FOR MORE INFORMATION, CONTACT:
David D. Brown
(276) 326-9000
FAQ
When did First Community (FCBC) complete the acquisition of Hometown Bancshares?
What is the stock exchange ratio in the FCBC acquisition of Hometown (FCBC)?
How many Hometown branch locations converted to First Community Bank branches and when will they open?
What were Hometown’s reported assets, loans, and deposits at December 2025?
How does the acquisition fit First Community’s strategy (FCBC)?
