Home BancShares to Acquire Mountain Commerce Bancorp in All-Stock Deal
Home BancShares (HOMB), the parent company of Centennial Bank, has announced a definitive agreement to acquire Mountain Commerce Bancorp. This strategic merger, approved unanimously by the boards of directors of both companies, will see Home BancShares emerge as the surviving entity in an all-stock transaction. The deal grants Home BancShares access to metropolitan statistical areas in Nashville, Knoxville, and Johnson City.
As part of the agreement, Mountain Commerce shareholders will receive 0.850 shares of HOMB stock for each share of Mountain Commerce common stock they hold. These shareholders will also be entitled to quarterly dividends declared by Home BancShares, with record dates following the closure of the transaction.
Transaction Details and Financial Implications
The transaction’s total implied value is approximately $150.1 million, 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.
This merger aligns with Home BancShares’ established merger and acquisition strategy. The company anticipates that the deal will be immediately triple accretive, projecting increases to earnings per share of 1.4% in 2026 and 3% in 2027. It also expects a 0.7% rise in book value per share and a 0.2% increase in tangible book value per share.
Upon completion of the merger, Home BancShares expects to maintain a strong capital position and an enhanced operating profile. The pro forma bank will have approximately $25 billion in assets, $17 billion in loans, and $19.2 billion in deposits.
Anticipated Closure and Advisory Partners
The merger is expected to close early in the first half of next year, subject to customary closing conditions. These include regulatory approvals and approval by Mountain Commerce shareholders. Piper Sandler served as financial advisor to Mountain Commerce and provided a fairness opinion, with legal advice from Bass, Berry & Sims. Home BancShares was advised by Hovde Group, which also provided a fairness opinion, while financial consultancy was provided by DD&F Consulting Group and legal advice by Mitchell, Williams, Selig, Gates & Woodyard.
Statements from Company Executives
William “Bill” Edwards, Mountain Commerce founder and CEO, expressed enthusiasm about the merger. He stated, “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.”
This merger announcement closely aligns with the banking industry’s ongoing consolidation trend, as institutions seek increased scale and diversification to compete more effectively. The strategic acquisition of Mountain Commerce by Home BancShares exemplifies this trend and demonstrates the banks’ commitment to enhancing shareholder value and market reach.
For more information on this merger, click here.
