Core Viewpoint - First Community Bankshares, Inc. is set to acquire Hometown Bancshares, Inc. in a strategic merger aimed at expanding its presence in West Virginia and enhancing its service offerings [1][2][4]. Company Overview - First Community Bankshares, Inc. is headquartered in Bluefield, Virginia, and operates through its subsidiary, First Community Bank, which has 52 branch locations across Virginia, West Virginia, North Carolina, and Tennessee. As of March 31, 2025, it reported consolidated assets of $3.2 billion [7]. - Hometown Bancshares, Inc. is based in Middlebourne, West Virginia, and offers banking services through its subsidiary, Union Bank, which operates eight locations and had total assets of approximately $402 million as of June 30, 2025 [9]. Merger Details - The merger agreement stipulates that Hometown will merge into First Community, with First Community as the surviving entity. Each share of Hometown common stock will convert into 11.706 shares of First Community common stock, valuing the transaction at approximately $41.5 million based on a share price of $40.33 as of July 18, 2025 [4][5]. - Upon completion, First Community is expected to have total consolidated assets of approximately $3.6 billion and operate 60 branch locations across four states [1][4]. Strategic Rationale - The merger aligns with First Community's strategy to grow low-cost core deposits and expand its market presence in the Parkersburg-Marietta-Vienna MSA. The partnership is seen as a natural extension into West Virginia markets similar to those where First Community has previously succeeded [2][3]. - First Community aims to enhance its service offerings by providing Trust and Wealth Management services, which are currently not available through Union Bank [3]. Financial Implications - The transaction is expected to be minimally dilutive to tangible book value per share and to provide high-single digit accretion to earnings per share [4]. - The merger has received unanimous approval from both companies' Boards of Directors and is subject to customary closing conditions, including shareholder approval and regulatory approvals, with an expected completion in the first quarter of 2026 [5].