First Community Bankshares, a Nasdaq-listed financial holding company, has agreed to acquire West Virginia-based bank holding company Hometown Bancshares in a deal worth around $41.5m.
Based in Bluefield, Virginia, First Community is the owner of First Community Bank. On the other hand, Hometown Bancshares is the parent company of Union Bank, which is based in Middlebourne, West Virginia.
Under the terms of the agreement, each share of Hometown Bancshares will convert into 11.706 shares of First Community. This equates to a consideration of $472.1 per share of Hometown Bancshares common stock.
Hometown Bancshares and Union Bank president, CEO, and director Tim Aiken said: “When considering a long-term partner, we sought a community-minded bank that shares our commitment to providing top-tier banking services with that personal touch.
“Also, First Community Bank will bring services to our communities that Union Bank currently does not provide, such as trust and wealth management services. We are confident that our combined franchise will serve our communities well and continue to create value for our customers, shareholders, and employees.”
First Community Bank operates 52 branches across Virginia, West Virginia, North Carolina, and Tennessee. As of 31 March 2025, the bank reported consolidated assets of $3.2bn.
Union Bank operates eight branches in northern West Virginia. As of 30 June 2025, the bank had assets totalling $402m.
The acquisition is part of First Community’s strategy to grow its deposit base and strengthen its market presence in the Parkersburg-Marietta-Vienna area.
It is projected to increase First Community’s total assets to approximately $3.6bn and extend its branch network to 60 locations across four states.
First Community Bank president and CEO Gary Mills said: “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.”
The transaction has received unanimous approval from both companies’ boards of directors and is subject to customary conditions, including regulatory approvals and Hometown shareholder consent. It is expected to complete in Q1 2026.
Financial advisory services for First Community were provided by D.A. Davidson & Co., with Bowles Rice serving as legal counsel. Hometown Bancshares was advised by Hovde Group and Hunton Andrews Kurth provided legal counsel.
