Stuttgart, Ark.-based Farmers and Merchants Bankshares Inc. agreed to acquire Mountain Home, Ark.-based Mountain Home Bancshares Inc. and unit Integrity First Bank NA.
Under the deal, Mountain Home Bancshares shareholders will be entitled to receive cash for the sale of their common stock.
The transaction is expected to close in the second quarter.
SNL valuations for bank and thrift targets in the Southeast region between Jan. 16, 2018, and Jan. 16, 2019, averaged 158.88% of book, 170.57% of tangible book and had a median of 26.19x last-12-months earnings, on an aggregate basis.
Farmers & Merchants will expand in Arkansas by 10 branches to be ranked No. 11 with a 1.76% share of approximately $66.66 billion in total market deposits.
At the close of business Dec. 31, 2018, Integrity First Bank had about $525 million in total assets, while Farmers and Merchants Bankshares unit Farmers & Merchants Bank had approximately $1.06 billion in total assets, according to the press release.