First Bankshares Merger Nears Finish Line Following Shareholder Approval

First Bankshares US32020R1095

A significant consolidation in the regional banking sector is moving forward. Shareholders of Hometown Bancshares have given their official blessing to a planned merger with First Bankshares, clearing a major hurdle for the deal's completion.

The shareholder vote, held on December 2, 2025, satisfies a key condition of the merger agreement initially announced in July. Regulatory approval from authorities in Virginia is now the final step required. The transaction is anticipated to close in the first quarter of 2026.

This strategic acquisition is designed to bolster market presence. First Bankshares aims to enhance its base of low-cost core deposits and expand its footprint in the Parkersburg-Marietta-Vienna area. Upon completion, the combined entity will hold consolidated assets of approximately $3.6 billion and operate 60 branches across four states.

Financial Performance Provides Context

The company's latest quarterly report, released in October, offers a snapshot of its current financial standing. For Q3 2025, First Bankshares posted net income of $12.27 million, equating to $0.67 per diluted share. This represents a 5.89 percent decrease compared to the same period last year.

Despite the earnings dip, several key metrics demonstrated resilience:
* The net interest margin remained solid at 4.43 percent.
* Non-interest income grew by 4.18 percent, fueled by higher account service and wealth management fees.
* Non-performing assets declined from $20.54 million to $16.90 million.

Market Valuation and Expert Outlook

First Bankshares currently carries a market capitalization of around $605 million, with its shares trading at a price-to-earnings ratio of roughly 12.5.

Analyst sentiment appears favorable. A recently published research report maintains a "Buy" rating on the stock and has set a price target of $37.00. TipRanks' AI analysis also classifies the equity as an "Outperform," citing the firm's strong balance sheet and attractive dividend yield as positive attributes. Noted risk factors include technically bearish signals and a recent slowdown in revenue growth momentum.

The company's commitment to shareholder returns is notable: 2025 marks the 40th consecutive year of dividend payments. Last year, the bank increased its distribution for the 15th year in a row.