Arkansas Business

Fidelity National Bank of West Memphis has purchased Planters National Bank of Hughes in a stock swap, creating the largest independent bank in Crittenden County.

William B. "Bill" Benton Jr., chairman of Planters National Bank, said he and friend Mike Murphy, chairman, president and chief executive officer of Fidelity, realized their banks could join forces.

Although each bank had some weaknesses, "the strength of each operation fills those holes," he said.

The acquisition, announced on Aug. 23, is expected to go into effect in January, after the regulatory approval process, Benton said. The Planters banks then will change their names to Fidelity, Benton said.

As of March 31, Fidelity had $118 million in assets, while Planters had $22 million.

Fidelity and its principal owners, Ralph Carlson, W.J. Carlson and William Carlson, traded stock with Planters' owners to complete the deal, Murphy said.

The Carlson brothers own controlling interest in Carlson Bancshares Inc., the bank holding company that owns Fidelity. Benton and his family control ownership in Lakeside Bancshares Inc., Planters' holding company.

Benton and other family members will become stockholders in Fidelity.

Under the merger agreement, Fidelity also will become a partner with Benton in the H&M Insurance Agency, which offers a variety of insurance products, Murphy said.

Murphy said no layoffs are expected because of the merger.

"We are joining forces with a well-managed, quality banking institution," Murphy said in a news release. "It makes very good sense to extend our market base and to use our combined resources for greater efficiency. It will be a great partnership."

Murphy will continue his duties as chairman, president and CEO, and Benton will become a director of the holding company and vice chairman of the bank board. He also will become a senior officer of the bank.