Peoples Banks Coming Together in Magnolia

Peoples Bank's downtown Magnolia location at 500 N. Jackson will have a new sibling branch at 305 N. Jackson.

The largest bank headquartered in Arkansas is exiting the $709 million-deposit market in Magnolia. Little Rock’s Bank OZK is selling its lone location at 305 N. Jackson St. to a locally based lender: the $219 million-asset Peoples Bank.

The pending transaction will pare the competitive field of banks in Magnolia to four. The Bank OZK branch-to-be-sold is a long block south of one of the two full-service offices operated in Magnolia by Peoples Bank.

“It may seem silly to have two branches so close together, but on busy days, our drive-through is overflowing at our main office,” said Debbie Arnold, senior vice president of marketing at Peoples.

The bank also needs more elbow room for staffers, and the 5,888-SF Bank OZK office will help. The branch is home to deposits of $46 million, the fourth-largest share of Magnolia deposits at 6.5%.

Farmers Bank & Trust of Magnolia holds a dominant 61.2% of deposits ($434 million). Peoples Bank holds deposits of more than $111 million, the second-largest stake in Magnolia at nearly 15.8%.

Completing the list of lenders on the ground in Magnolia are BancorpSouth Bank of Tupelo, Mississippi, at nearly 13.4% and Bodcaw Bank of Stamps at 3.1% ($22 million).

Backed by a staff of 77, Peoples Bank recorded net income of $2.7 million through the first half of this year. A year ago, profits totaled $1.5 million.

Peoples Bank, Magnolia
Total Assets: $219.2 million
Net Income: $2.7 million
Staff: 77
Three Full-Service Locations: Magnolia, 2; and Waldo
(As of June 30)

All dollars in thousands except where noted.
Source: Federal Deposit Insurance Corp.