Home BancShares in Conway, Ark., has agreed to buy Mountain Commerce Bancorp in Knoxville, Tenn.
Home said in a press release that it will pay $150.1 million in stock for the parent of the $1.8 billion-asset Mountain Commerce Bank. The merger, which is expected to close early in the first half of 2026, priced Mountain Commerce at 105% of its tangible book value.
The transaction should be 1.4% accretive to 2026 earnings per share and 3% accretive the next year. The deal should be 0.2% accretive to tangible book value per share.
Home plans to cut a fifth of Mountain Commerce’s annual operating costs. Home expects to incur $14 million of pretax merger-related expenses.
Bill Edwards, Mountain Commerce’s CEO, will serve as Home’s Tennessee president.
“We look forward to … Mountain Commerce being our base to build out other markets in” Tennessee, Johnny Allison, Home’s chairman, president and CEO, said in the release. “We waited patiently to make our next acquisition to ensure we partnered up with a good, quality bank in a strong market.”
Piper Sandler and Bass, Berry & Sims advised Mountain Commerce. Hovde Group, DD&F Consulting Group and Mitchell, Williams, Selig, Gates & Woodyard advised Home.