Farmers Bank & Trust to Acquire Community First Trust

Chris Gosnell

Farmers Bank & Trust of Magnolia said Tuesday that it will purchase the stock of Community First Trust Co. of Hot Springs, which will continue to operate as an independent trust company.

“Farmers Bank & Trust is excited about the opportunity to expand our Trust and Wealth Management services through Community First Trust Company,” Farmers CEO Chris Gosnell said in a news release. “Trust customers of Farmers Bank and Community First Trust will all benefit from the combined resources of both companies.”  

The boards of both companies unanimously approved the agreement, which is subject to shareholder and regulatory approval. Financial terms of the deal, expected to close during the second quarter, were not disclosed.

Farmers is buying the ninth-largest trust operation in the state, as ranked by Arkansas Business on its most recent list of trust departments. Community First Trust Co. has been the only trust company in the state to operate independently of a bank. It reported $326 million in assets at the end of 2019, and Tuesday’s news release said current assets are about $340 million.

Farmers’ internal trust department was ranked No. 13. It reported trust assets of $150 million at the end of 2020, virtually unchanged from 2019.

Bruce Maloch, Farmers’ vice-chairman and general counsel, told Arkansas Business that the bank will continue to operate its internal trust department. “Even though we both have clients outside our direct markets, Community First offices are  located outside our banking communities,” Maloch said in an email. “There is also the issue of when a Will or Trust has designated either ‘Farmers Bank’ or ‘Community First Trust’ as an Executor or Trustee, whether approval is required to substitute the other entity. We will look for administrative and IT related efficiencies.”

Bill Kerst, Community First Trust’s president CEO, said in a news release that his company was attracted to Farmers’ culture. 

“The Bank’s commitment to its customers, technology and staff supports the long-term relationships we have enjoyed at CFT,” he said. “We look forward to working as part of the team to provide personal Trust Services and Wealth Management.”

Farmers is owned by a privately held holding company, Magnolia Banking Corp. of Magnolia. It has more than 20 locations in Arkansas and Texas, and about $1.8 billion in assets. Chartered in 1998, Community First Trust has offices in Hot Springs, Hot Springs Village, Little Rock, Russellville and El Dorado.