Two NEA banks with common ownership to share common charter

FinanceLatest NewsNortheast Arkansas

by Talk Business & Politics staff ([email protected]) August 20, 2024 4:40 pm 226 views 

The holding companies of Piggott State Bank in Piggott and Farmers Bank and Trust in Blytheville announced plans to share a common charter on Tuesday (Aug. 20). The combined bank will operate under the charter of Farmers Bank and Trust, established in 1908.

Farmers Bank and Trust has seven offices in Blytheville, Gosnell, Manila and Wilson. Piggott State Bank was established in 1930 and has offices in Piggott and Rector. The two banks have shared common ownership for more than 37 years.

The consolidation, subject to standard regulatory approvals, is expected to be completed by December 31, 2024. After the charter consolidation, Piggott State Bank will operate as a division of Farmers Bank and Trust.

“We look forward to providing even greater impact on the economic vitality of Northeast Arkansas by joining forces with our sister organization,” said Cody Knight, President and CEO of Piggott State Bank. “Our ownership, operations and management will remain just as they are today.”

“Farmers Bank and Trust and Piggott State Bank have shared common ownership for 37 years and over the years we’ve shared resources, expertise, and common banking practices, benefitting customers throughout Northeast Arkansas. Operating under one charter will allow us to continue operating independently, with increased synergies of common operating systems. Our combined strength will provide an even stronger foundation of financial strength and security to our customers and communities,” said Randy Scott, President and CEO of Farmers Bank and Trust.

Both banks will continue to operate as a Community Development Financial Institution (CDFI).

An anticipated future consolidation of banking systems is expected to occur in the third quarter of 2025, when customers of both banks will be able to transact business at any of the 10 offices in Mississippi County and Clay County.

DD&F Consulting Group served as financial advisor for the transaction and McAfee & Tate served as legal counsel.