First Community Bankshares, Inc. Completes Acquisition of Hometown Bancshares, Inc.
MWN-AI** Summary
On January 26, 2026, First Community Bankshares, Inc. (NASDAQ: FCBC) announced the successful completion of its acquisition of Hometown Bancshares, Inc. and its subsidiary, Union Bank, effective January 23, 2026. This acquisition, initially agreed upon in July 2025, marks a significant expansion for First Community Bank into West Virginia, aligning with its strategic goals of growing low-cost core deposits and enhancing its market footprint.
As a result of the merger agreement, Hometown shareholders will receive 11.706 shares of First Community common stock for each share they hold in Hometown. Following the acquisition, Hometown's eight branch locations in West Virginia will rebrand as First Community Bank branches, officially opening on January 26, 2026.
Gary R. Mills, President and CEO of First Community Bank, expressed enthusiasm for the merger, highlighting it as a natural extension into markets similar to areas where First Community has thrived. He reiterated the bank’s commitment to serving local customers and communities better. Will Stafford, Chairman and CEO, emphasized that this merger not only consolidates First Community’s banking franchise but also offers Hometown’s customers enhanced services through increased scale and improved product offerings.
As of December 2025, Hometown reported approximately $415 million in total assets, with $172 million in total loans and $376 million in total deposits. Timothy Aiken, President of Hometown, shared excitement about the merger, noting the potential for accelerated growth and benefits for shareholders and employees alike.
With this acquisition, First Community Bank aims to fortify its position in the regional banking landscape, further enhancing its service capabilities across Virginia, West Virginia, North Carolina, and Tennessee. As of December 31, 2025, the company reported consolidated assets totaling $3.26 billion.
MWN-AI** Analysis
The recent acquisition of Hometown Bancshares, Inc. by First Community Bankshares, Inc. appears to be a strategically sound move that could enhance First Community's growth trajectory in the competitive banking sector. With Hometown's total assets of approximately $415 million, along with a solid deposit base of $376 million, this merger positions First Community to significantly expand its market presence in West Virginia, particularly in the Parkersburg-Marietta-Vienna MSA.
From a financial perspective, the acquisition aligns with First Community's goal of increasing low-cost core deposits. By integrating Hometown's operations, First Community will benefit from enhanced economies of scale and improved lending capacities. The immediate transition of Hometown’s branches to First Community Bank is expected to streamline customer service delivery, potentially boosting customer retention and acquisition rates.
Investors should view the transaction as a positive signal regarding First Community's growth strategy. The merger is set to diversify and strengthen its loan portfolio, potentially leading to improved financial performance in upcoming quarters. The consolidation of services may not only provide cost efficiencies but also open up new avenues for product offerings that can attract a broader customer base.
While there are risks associated with any merger—such as integration challenges and market fluctuations—First Community's established presence and operational history in the region can mitigate potential downsides. The leadership of First Community Bank has demonstrated a commitment to community-focused banking, which may enhance brand loyalty post-merger.
In conclusion, potential investors should consider the acquisition as a long-term value-add for First Community Bankshares, Inc. The combined resources and capabilities of both banks should strengthen First Community's position in the market while providing opportunities for future growth and profitability. Careful monitoring of the integration process and financial performance metrics post-merger will be essential for assessing the full impact of this strategic decision.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
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 $415 million in total assets, $172 in total loans and $376 million in total deposits. Commenting on the transaction, Hometown’s President, Timothy Aiken offered, “We are excited about the opportunity to bring FCBC and Hometown together. The transaction will accelerate our ability to grow, and we believe creates an exciting opportunity for our shareholders and employees. The Hometown board of directors believes FCBC is well positioned and has significant upside opportunity through stock price appreciation. The FCBC platform will allow Hometown to better serve our existing customers and communities, as well as expand into other product offerings. We admire the historical success of the FCBC team and look forward to working together.
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 $1.79 billion in combined assets as of December 31, 2025. The Company reported consolidated assets of $3.26 billion as of December 31, 2025. The Company’s common stock is listed on the NASDAQ Global Select Market under the trading symbol, “FCBC”. Additional investor information is available on the Company’s website at www.firstcommunitybank.com.
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**
How does the acquisition of Hometown Bancshares, Inc. impact the growth strategy of First Community Bankshares Inc. (FCBC) in terms of low-cost core deposits and market presence?
Can you provide more details on how First Community Bankshares Inc. (FCBC) intends to integrate the technological and product offerings from Hometown into its existing services post-acquisition?
What specific synergies does First Community Bankshares Inc. (FCBC) foresee from combining Hometown's customer base with its own in the Parkersburg-Marietta-Vienna MSA?
How will the merger affect the financial performance and stock price appreciation potential for shareholders of First Community Bankshares Inc. (FCBC) in the coming years?
**MWN-AI FAQ is based on asking OpenAI questions about First Community Bankshares Inc. (NASDAQ: FCBC).
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