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Farmers B&T of Magnolia to Acquire Bank of Prescott

1 min read

The 115-year-old Prescott bank lost $1.1 million last year as a victim of former insurance agent Berry Bishop’s bank fraud.

Farmers Bank & Trust of Magnolia announced Monday a deal to acquire the Bank of Prescott in the third quarter of 2019, but the financial terms of the deal were not released.

Chris Gosnell, CEO of Farmers B&T, said the purchase “will present a good opportunity to continue our financial services expansion in Arkansas along the I-30 Interstate corridor.”

Farmers is owned by Magnolia Banking Corp., while the Bank of Prescott is a subsidiary of Prescott Bancshares Inc. The boards of directors of both holding companies have approved the transaction unanimously, according to the announcement, but the approval of shareholders and regulators is still pending.

With about $1.6 billion in assets and 20 offices, Farmers was the seventh-largest bank chartered in Arkansas as of Dec. 31. Bank of Prescott, meanwhile, is one of the smallest of the 93 in-state charters, with $67.8 million in assets as of March 31 and 18 employees at its single Main Street office.

Chartered in 1904, the Bank of Prescott recorded a $1.1 million loss during 2018, when it was victimized by customer Berry R. Bishop. The former Hot Springs insurance agent pleaded guilty in December to federal charges, and he specifically acknowledged defrauding the Prescott bank out of more than $2.1 million.

Bank of Prescott returned to profitability in the first quarter of 2019, posting net income of $119,000.

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