Farmers Bank and Trust of Magnolia, Arkansas, and 1st Bank of Texarkana, Texas, announced they have entered into an agreement for Farmers Bank and Trust to purchase 1st Bank.
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“Farmers Bank and Trust is excited about the opportunity to serve the customers and staff of 1st Bank”, stated Bob L. Burns, Chairman and Chief Executive Officer of Farmers Bank and Trust.
“When completed, this transaction will present a great opportunity for Farmers Bank to expand our financial services in Arkansas and Texas along the I-30 Interstate corridor. This expansion fits well with our plans for growth in these market areas.”
Mike Cross, President and Chief Executive Officer of 1st Bank commented, “This transaction allows us to partner with a strong community bank that is focused on providing great customer service with a deep commitment to the communities where it operates, and a great place for employees to perform and advance. We look forward to working with the management team of Farmers Bank and Trust to make this a smooth transition for our customers and employees.”
Farmers Bank and Trust is owned by a privately held holding company Magnolia Banking Corporation, headquartered in Magnolia, Arkansas. 1st Bank, N.A., is owned by First National Bancshares of Hempstead County, Inc., headquartered in Hope, Arkansas.
The holding company boards of Magnolia Banking Corporation and First National Bancshares of Hempstead County unanimously approved the agreement which is subject to shareholder and regulatory approval. The transaction is anticipated to close at the end of the third quarter of 2014 and 1st Bank will be merged into Farmers Bank and Trust. With the close of the transaction, Farmers Bank and Trust will have approximately $1.2 billion in assets.
Customers of 1st Bank can expect to receive notifications regarding the progress of the transaction well in advance of any changes. Until the transaction is complete, customers of both banks should continue to conduct business as usual at their convenient bank locations. 1st Bank customers should continue to use their same checks, debit cards, and online banking services. If customers have questions, they should contact their local office. ■