Home BancShares Inc. Expands into Tennessee with Acquisition of Mountain Commerce Bancorp
On December 9, 2025, Home BancShares Inc. announced the completion of its acquisition of Mountain Commerce Bancorp, Inc., the parent company of Mountain Commerce Bank. The transaction, approved unanimously by the boards of both entities, positions Home BancShares to penetrate high‑growth markets in Tennessee, including Knoxville, Nashville, and Johnson City, while reinforcing its existing presence in central Arkansas, the Florida Keys, and southwestern Florida.
Deal Structure and Shareholder Terms
Upon closing, shareholders of Mountain Commerce will receive 0.850 shares of Home BancShares stock for each share of Mountain Commerce common stock they hold. This exchange ratio reflects Home BancShares’ confidence in the long‑term value creation potential of the combined bank group and its strategic alignment with Tennessee’s rapidly expanding banking sector.
Strategic Rationale
Home BancShares’ CEO, John Allison, underscored Tennessee’s appeal, noting that Nashville’s growth and Knoxville’s recent ranking as the most popular city to move to in 2026 illustrate the state’s dynamic economic environment. By acquiring Mountain Commerce, the company gains an established foothold in these markets, enabling it to leverage local expertise and infrastructure for broader expansion into Tennessee and potentially into Texas and Florida, as outlined in the company’s broader growth strategy.
Market Context
The transaction follows a series of strategic moves by Home BancShares to broaden its geographic footprint. With a market capitalization of $5.58 billion and a 52‑week trading range of $24.22–$31.27, the company has demonstrated resilience and a disciplined valuation profile, as reflected in its P/E ratio of 12.36. The acquisition is expected to enhance Home BancShares’ commercial and retail banking services portfolio, reinforcing its position as a leading regional bank holding company.
Outlook
The merger is projected to generate significant synergies through cross‑selling of products, cost efficiencies, and expanded deposit bases. The integration is anticipated to be completed within the next 12 to 18 months, with the company targeting incremental earnings growth and a strengthened balance sheet as it enters a new growth phase in the southeastern United States.
