Farmers and Merchants Bankshares, Inc. and Mountain Home Bancshares, Inc. have executed a definitive agreement for Farmers and Merchants to acquire Mountain Home and its subsidiary, Integrity Bank. Terms of the deal were not disclosed.
Stuttgart-based Farmers and Merchants is the bank holding company for Farmers and Merchants Bank, which also owns locations in the Delta, River Valley and Northwest Arkansas, through its 2015 acquisition of Bank of Fayetteville. The Mountain Home acquisition will add more locations in Northwest Arkansas as well as north central and northeast Arkansas.
Pursuant to the terms of the definitive agreement, Mountain Home Bancshares shareholders will be entitled to receive cash for the sale of their Mountain Home Bancshares common stock. The joint announcement was released after midnight on Wednesday, Jan. 16.
“The cultures embracing community investment and excellent customer service present in these two community banks are mirror images of one another. This combination will enhance customer experiences and community relations across our varied markets in Arkansas,” said Mountain Home Bancshares President Gary Childers. “The board of directors of Mountain Home Bancshares views this opportunity to join the outstanding team of bankers with Farmers and Merchants Bankshares as a means to bring a broader array of services and improved technology to our present markets while providing maximum value for our shareholders.”
“The joining of these two banks expands Farmers and Merchants’ outreach into Jonesboro, Bentonville, Mountain Home, Flippin, Gassville, Lakeview, and Pocahontas, vibrant communities with good things happening,” said Farmers and Merchants Bankshares President and CEO Gary Hudson. “Our banks share similar values and business philosophies of community involvement and commitment. We have full faith that combining the financial strength of our organizations will serve the customers of both institutions well.”
Completion of the transaction is subject to certain closing conditions, including regulatory and shareholder approval. Following the successful completion of these steps, it is anticipated the transaction will close during the second quarter of 2019.
At the close of business December 31, 2018, Integrity First Bank had approximately $525 million in total assets, while Farmers and Merchants Bank was $1,062,940,267 in total assets. Upon successful completion of the acquisition, it is expected that total assets of The Farmers and Merchants Bankshares, Inc. will exceed $1.5 billion.