Go West

Have you heard a growing bank based in northeast Arkansas is planning to make a big splash in Northwest Arkansas?

So have a lot of folks, but we have not been able to confirm that First National Bank of Paragould has its eyes on this corner of the state.

We tried to reach Donald Guinn, president and CEO of the bank, but were unsuccessful.

Further details from the rumor mill, the bank’s entry point would be six vacant branches — three in Rogers, two in Springdale and one in Fayetteville — previously occupied by Metropolitan National Bank.

For what those properties are listed, the price tag would be in the neighborhood of $14 million.

FNB has eight branches in northeast Arkansas and is expected to open its ninth location later this year — about 130 miles away from Paragould in Heber Springs.

While entering an overbanked market might not be welcome news to some in the local banking industry, FNB is certainly big enough to pull off such a move.

It’s a $750-million asset bank, has total deposits of $617 million, has an ROE of 10 percent and a net income of at least $8 million in each of the last four years.

And, we hear, FNB made inquiries a few months ago about merging with an existing bank in Northwest Arkansas.

All part of the plan, if you believe Guinn, who gave the following quote to Little Rock-based Arkansas Business in May 2011: “We don’t have a goal of expanding by x number of branches in 2011, but we feel like we’re poised for acquisition. We’re ready. Our infrastructure is ready, and it’s here to handle the growth.”

Three years later, growth for the bank — which celebrates its 125th birthday this year — may be forthcoming.