Centennial Bank’s parent company Home BancShares (HOMB) has reached a definitive agreement to purchase Mountain Commerce Bancorp in an all-stock transaction.
The merger will see HOMB as the surviving entity.
The agreement, approved unanimously by both companies’ directors’ boards, grants access to the Nashville, Knoxville, and Johnson City metropolitan statistical areas.
Download sample pages of selected reports
Explore a selection of report samples we have handpicked for you. Get a preview of the insights inside. Download your free copy today.
According to the definitive merger agreement, Mountain Commerce shareholders will obtain 0.850 shares of HOMB stock for each Mountain Commerce common stock share they hold.
These shareholders will also be eligible for quarterly dividends declared by Home BancShares, with record dates after the closure.
Based on a volume-weighted average closing price per share of HOMB stock of $27.66 over the 20 days ending on 5 December 2025, the per share implied consideration value is $23.51, and the total implied value of the transaction is approximately $150.1m.
This transaction aligns with HOMB’s established merger and acquisition strategy. The company anticipates the deal will be immediately triple accretive, projecting increases to earnings per share of 1.4% in 2026 and 3% in 2027, as well as a 0.7% rise in book value per share and a 0.2% increase in tangible book value per share.
Following the merger, HOMB expects to maintain a strong capital position and enhanced operating profile.
The pro forma bank will have about $25bn, $17bn and $19.2bn in assets, loans and deposits, respectively.
The merger is anticipated to close early in the first half of next year, contingent on customary closing conditions, including regulatory approvals and approval by Mountain Commerce shareholders.
Piper Sandler acted as financial advisor to Mountain Commerce and provided a fairness opinion, with Bass, Berry & Sims as legal advisor.
Hovde Group served as financial advisor to Home BancShares and provided a fairness opinion, while DD&F Consulting Group acted as financial consultant and Mitchell, Williams, Selig, Gates & Woodyard as legal advisor.
Mountain Commerce founder and CEO William “Bill” Edwards said: “Mountain Commerce is proud to join forces with one of the top-performing banks in the country.
“This partnership provides resources, through HOMB’s strong balance sheet and capital position, to allow our talented team of bankers to flourish. There is a lot more work to be done in Tennessee to take advantage of the market opportunity and we are eager and ready to grow.”
Unlock up to 35% savings on GlobalData reports
Use the code at checkout in the report store
-
20% OFF
Buy 2 reports
Use code:
Bundle20
-
25% OFF
Buy 3 reports
Use code:
Bundle25
-
30% OFF
Buy 4 reports
Use code:
Bundle30
-
35% OFF
Buy 5+ reports
Use code:
Bundle35
Valid on all reports priced $995 and above. Cannot be combined with other offers.
Still deciding what will work best for your business?
Ask our experts for help.
Enquire before buying
