Farmers Bank plans Prescott bank deal

Farmers Bank & Trust of Magnolia has entered into an agreement to buy the Bank of Prescott, officials with the two banks said Monday.

Farmers Bank is privately owned by Magnolia Banking Corp., which has 20 locations in Arkansas and Texas. The Bank of Prescott is a subsidiary of Prescott Banchares Inc. The purchase is subject to shareholder and regulatory approval, with the sale likely to close this fall.

“Farmers Bank & Trust is excited about the opportunity to serve the community of Prescott, Ark.,” said Chris Gosnell, Farmers Bank’s chief executive officer. “Upon completion, this transaction will present a good opportunity to continue our financial services expansion in Arkansas along the I-30 Interstate corridor.”

Farmers Bank said it will have assets of about $1.7 billion when the sale is closed. It was founded in 1906.

Founded in 1904, the Bank of Prescott has $67 million in assets and is the town’s only bank. Its chief executive officer is John Brannon Jr.