1. Home BancShares to acquire Mountain Commerce in an all-stock merger. 2. The merger enhances HOMB's presence in high-growth Tennessee markets. 3. Transaction valued at approximately $150.1 million with favorable share exchange. 4. Expected earnings per share accretion of 1.4% in 2026 and 3.0% in 2027. 5. Closing expected in early 2026, pending regulatory and shareholder approvals.
FAQ
Why Bullish?
The merger is expected to provide immediate accretion to earnings, similar to past M&A successes for HOMB which positively influenced its stock price. Historical examples include HOMB’s growth after prior acquisitions that similarly enhanced its market position.
How important is it?
The merger directly impacts HOMB's growth strategy and financial metrics, influencing investor sentiment and market positioning.
Why Long Term?
The merger will likely strengthen HOMB’s operating profile over time as it expands into new markets and achieves projected earnings growth.
Home BancShares, Inc. Announces Triple Accretive Acquisition in Tennessee
On December 8, 2025, Home BancShares, Inc. (NYSE: HOMB), the parent company of Centennial Bank, announced a definitive merger agreement to acquire Mountain Commerce Bancorp, Inc. (OTCQX: MCBI). This all-stock merger positions Home BancShares as the surviving entity, expanding its footprint into high-growth markets in Knoxville, Nashville, and Johnson City, Tennessee.
Strategic Acquisition & Market Expansion
The merger not only enhances Home BancShares' market share but also targets key growth areas in Tennessee. Knoxville, recently recognized by moveBuddha as a top city to relocate to in 2026, offers a vibrant community and economic opportunities.
This acquisition allows Home BancShares to strategically position itself in Tennessee's thriving markets, paving the way for future expansion and potential further acquisitions.
Details of the Merger
Under the terms of the merger agreement, Mountain Commerce shareholders will receive 0.850 shares of Home BancShares stock for each share they own. Following the closing of the merger, these shareholders will also be eligible for quarterly dividends declared by Home BancShares.
- Implied per share consideration value: $23.51
- Aggregate transaction value: approximately $150.1 million
- Expected EPS increases: 1.4% for 2026 and 3.0% for 2027
The pro forma bank will have approximately $25.0 billion in assets, $17.0 billion in loans, and $19.2 billion in deposits, making it one of the 75 largest banks in the U.S.
Leadership Commentary
William E. “Bill” Edwards, III, CEO of Mountain Commerce, expressed enthusiasm about the merger, stating, “This partnership provides resources, through HOMB’s strong balance sheet and capital position, to allow our talented team of bankers to flourish.” Edwards highlighted the vast opportunities in Tennessee for continued growth.
John Allison, Co-Founder and CEO of Home BancShares, remarked, “Tennessee, Texas, and Florida may be the three best states in the nation... We look forward to Mountain Commerce being our base to build out other markets in the state.”
Merger Timeline & Regulatory Approval
The merger is slated to close in early 2026, pending regulatory approvals and shareholder consent from Mountain Commerce. Financial advisory services were provided to both companies by Piper Sandler and Hovde Group, LLC, among others.
About Home BancShares, Inc.
Home BancShares, Inc. is a bank holding company based in Conway, Arkansas, known for its wide range of commercial and retail banking services. Notably, its common stock trades on the New York Stock Exchange under the symbol HOMB.
About Mountain Commerce Bancorp, Inc.
Mountain Commerce Bancorp, Inc. operates Mountain Commerce Bank, headquartered in Knoxville, Tennessee. The bank has served East and Middle Tennessee for over a century and offers services tailored to businesses and individuals who value personalized banking.
Additional Information
For further details regarding this acquisition, a supplemental presentation is available on the Home BancShares website under the “Investor Relations” section. Interested parties can also participate in a conference call scheduled for December 8, 2025, at 9:30 a.m. CT.