Home BancShares to purchase Mountain Commerce Bancorp

Core Viewpoint - Home BancShares (HOMB) has entered into a definitive agreement to acquire Mountain Commerce Bancorp in an all-stock transaction, enhancing its presence in key Tennessee markets [1][4]. Group 1: Transaction Details - The merger agreement stipulates that Mountain Commerce shareholders will receive 0.850 shares of HOMB stock for each share of Mountain Commerce common stock they hold [2]. - The implied consideration value per share is $23.51, based on a volume-weighted average closing price of HOMB stock at $27.66, leading to a total transaction value of approximately $150.1 million [3]. Group 2: Strategic Implications - This acquisition aligns with HOMB's merger and acquisition strategy, with expectations of immediate triple accretion, including a projected 1.4% increase in earnings per share in 2026 and a 3% increase in 2027 [4]. - The pro forma bank will have approximately $25 billion in assets, $17 billion in loans, and $19.2 billion in deposits post-merger [5]. Group 3: Advisory and Legal Support - Piper Sandler acted as the financial advisor to Mountain Commerce, while Hovde Group served as the financial advisor to Home BancShares [6][7]. - Legal advisory roles were filled by Bass, Berry & Sims for Mountain Commerce and Mitchell, Williams, Selig, Gates & Woodyard for Home BancShares [5][6].