First National Bank of Paragould said Wednesday that it will buy Citizens Bank of Hartsville, Tennessee, expanding into the Volunteer state and raising its total assets to about $2.1 billion.
Tennessee’s Citizens Bank is no relation to Citizens Bank of Batesville. With about $290 million in assets, the Tennessee bank has three locations: Hartsville, which is an hour northeast of Nashville; and Gallatin and Hendersonville, two of Nashville’s northern suburbs.
Financial terms of the deal, which requires regulatory approval, were not disclosed. First National Bank said it would share more information on the transition “in the coming weeks.”
First National Bank Chairman Bill Brewer said Citizens is ranked among the top 15 banks in Sumner County (where 22 banks compete for $4.35 billion in deposits) and is No. 1 in Trousdale County (where it has only one competitor for $200 million in deposits).
“This is a perfect fit for First National Bank,” Brewer said. “Their size, location, and overall view of banking is exactly what our organization needs to expand into the Nashville market.”
The deal is between the banks’ two holding companies, First Paragould Bankshares Inc. and Cumberland Bancshares Inc. The companies’ boards have approved the deal.
“This combination is attractive for our customers, employees, and shareholders,” said Philip Holder, chairman, president and CEO of Cumberland. “Being part of a larger community bank that shares our same customer-first focus will allow us to better provide competitive products and services to our customers while remaining actively involved in our communities.”
Todd Austin, president and CEO of Citizens Bank, will become market president once the deal closes in the fourth quarter.
Citizens Bank was chartered in 1905. It had net income of $2.63 million in 2020, down from $3.14 million in 2019, and reported net income of $640,000 in the first quarter of 2021. As of March 31, it had 49 employees in three branches and equity capital of $27.6 million.
Founded in 1889, First National Bank of Paragould had assets of $1.89 billion as of March 31, making it the sixth-largest bank in Arkansas. (At No. 5 is First Security Bank of Searcy, with $7.55 billion.) First National earned $16.7 million in 2020, down from $20 million in 2019. It reported first-quarter income of $5.1 million. It had 268 employees and equity capital of $212.9 million as of March 31.
In 2018, First National completed its acquisition of One Bank & Trust of Little Rock. In 2019, it opened a 60,000-SF lead office for operations in Craighead County. Earlier this year, it bought a 7,500-SF banch-office on Chenal Parkway in west Little Rock.
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