Home BancShares enters Tennessee market with $150 million acquisition

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by Roby Brock ([email protected]) ago 0 views 

Home BancShares, the parent company of Centennial Bank, announced it has entered into a definitive merger agreement to acquire Mountain Commerce Bancorp, Inc., the parent company of Mountain Commerce Bank.

The $150 million deal will take Home BancShares into the Knoxville, Nashville and Johnson City, Tennessee markets.

“Tennessee is a great state. Tennessee, Texas and Florida may be the three best states in the nation,” said Home BancShares Co-Founder, Chairman, President and CEO John Allison. “Everyone is aware of Nashville’s growth, but you may not be aware that Knoxville was ranked #1 by moveBuddha as the most popular city to move to for 2026.”

“We look forward to being in these vibrant Tennessee markets and are looking forward to Mountain Commerce being our base to build out other markets in the state, with Bill Edwards, founder of MCBI, and his seasoned team of talented bankers leading the way. We waited patiently to make our next acquisition to ensure we partnered up with a good quality bank in a strong market, and I am extremely pleased about what the future holds for HOMB and MCBI in the Volunteer State,” added Allison.

The combination positions Home BancShares to expand further into Tennessee and potentially acquire additional institutions over time, the bank said.

Under the terms of the definitive merger agreement, which was unanimously approved by the Board of Directors of both companies, Mountain Commerce shareholders upon closing of the merger will receive 0.850 shares of Home BancShares stock for each share of Mountain Commerce common stock they own and will begin receiving quarterly dividends declared by Home BancShares with record dates following the closing. Based on a volume-weighted average closing price per share of Home BancShares stock of $27.66 during the 20-trading-day period ending on December 5, 2025, the per share implied consideration value is $23.51 and the aggregate implied transaction value is approximately $150.1 million.

The pro forma bank will be approximately $25.0 billion in assets, $17.0 billion in loans and $19.2 billion in deposits and will be one of the 75 largest banks headquartered in the United States.

“Mountain Commerce is proud to join forces with one of the top-performing banks in the country,” said William E. “Bill” Edwards, III, Chief Executive Officer and founder of Mountain Commerce. “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.”

The merger is expected to close early in the first half of 2026, subject to satisfaction of customary closing conditions, including receipt of customary regulatory approvals and approval by the shareholders of Mountain Commerce.

Piper Sandler served as financial advisor to Mountain Commerce and provided a fairness opinion, with Bass, Berry & Sims PLC serving as legal advisor.

Hovde Group, LLC served as financial advisor to Home BancShares and provided a fairness opinion, with DD&F Consulting Group serving as financial consultant and Mitchell, Williams, Selig, Gates & Woodyard, PLLC serving as legal advisor.