Farmers Bank of Magnolia Makes Deal to Buy 1st Bank of Texarkana, Texas

by Gwen Moritz  on Monday, Jul. 14, 2014 5:28 pm  

Farmers Bank & Trust of Magnolia has made a deal to buy 1st Bank of Texarkana, Texas, the two banks announced Monday.

No price tag on the deal was included in the announcement; 1st Bank's equity capital stood at $30.9 million as of March 31.

The acquisition will push Farmers Bank & Trust's assets from about $885 million to almost $1.2 billion.

"Farmers Bank & Trust is excited about the opportunity to serve the customers and staff of 1st Bank," Chairman and CEO Bob L. Burns said in a press release. “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.”

1st Bank is Arkansas-owned by First National Bancshares of Hempstead County and has Arkansas branches in Hope, Texarkana, Blevins and Lewisville as well as branches in Texarkana and New Boston in Texas. It has approximately $309 million in assets and earned $372,000 in the first quarter of 2014. Its net income in 2013 was $1.4 million.

 “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 & Trust to make this a smooth transition for our customers and employees,” Mike Cross, president and CEO of 1st Bank, said.

The boards of Magnolia Banking Corp., holding company for Farmers Bank & Trust, and First National Bancshares of Hempstead County unanimously approved the agreement which is subject to shareholder and regulatory approval, according to the announcement. The transaction is expected to close near the end of the third quarter, and 1st Bank will be merged into FB&T.

Farmers already has four Texarkana branches — three in Texas and one on the Arkansas side.

 

 

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