First Community Bankshares in Bluefield, Va., has agreed to buy Main Street Financial Services in Wooster, Ohio.
The $3.6 billion-asset First Community said in a press release that it will pay $243 million in stock for the $1.6 billion-asset Main Street. The deal, which is expected to close in the second quarter, priced Main Street at 190% of its tangible book value.
“Main Street Bank is a high-performing community bank, presenting a balance sheet and loan asset generation very complementary to First Community Bank’s liquidity and balance sheet management,” Gary Mills, First Community Bank’s president and CEO, said in the release. “They possess a high acumen in farm and agricultural lending which will allow First Community to better serve its longstanding rural markets.”
Mark Witmer, Main Street’s president and CEO, will join First Community as president of the Ohio region. One Main Street director will join First Community’s board.
The deal is expected to be 18.9% accretive to First Community’s 2027 earnings per share. It should take less than a year to earn back any dilution to First Community’s tangible book value.
First Community plans to cut about a quarter of Main Street’s annual noninterest expense. It expects to incur $24.2 million of pretax merger-related expenses.
D.A. Davidson and Bowles Rice advised First Community. Raymond James and Dinsmore & Shohl advised Main Street.