First United Bancshares, Inc. Announces Formation of First Bankers Insurance Services.

EL DORADO, Ark.--(BUSINESS WIRE)--July 21, 1999--

The largest publicly held bank holding company headquartered in Arkansas and the largest agent-owned independent insurance agency have joined together to form a new company. This company is another first for Arkansas and the middle South - an insurance agency that is jointly owned by a bank holding company and an insurance agency for the purpose of selling and servicing all types of major insurance.

The new company is named First Bankers Insurance Services and is the joint effort of First United Bancshares, Inc. (Nasdaq/NMS:UNTD) headquartered in El Dorado, Arkansas and First Arkansas Insurance headquartered in Pine Bluff, Arkansas. First Bankers Insurance Services will represent an impressive list of companies that include CNA, Fireman's Fund, Hartford, Maryland, Ohio Casualty, St. Paul, Travelers, Union Standard and others.

Insurance services will be offered in phases in all of First United's subsidiary banks located in 39 communities in Arkansas, Texas and Louisiana.

In making the joint announcement, Jay Bradford, the primary owner of First Arkansas Insurance, said "This innovative method of selling and servicing insurance customers will probably be the wave of the future as more and more people want all or most of their financial transactions and dealings under the single roof of their local bank. This effort will make that possible for all 220,000 customers of the First United affiliate banks located in three states," Bradford said. "We feel that putting this venture together with First United is the best deal possible for us, the banks and by all means for the bank's customers."

First United's Chairman, President and CEO, James V. Kelley said, "We are happy to be the first joint effort of this type in this area of the country. We know that when our customers find out how convenient this service is, the idea will spread. We feel very fortunate to have joined with Senator Bradford and his company which is obviously the leading local agency in the state by any measurement."

At first, according to Bradford, only property and casualty insurance will be available. "But within a few months, we will also be offering health, life insurance and personal lines insurance, as well as other necessary types of insurance," Bradford said.

First Arkansas Insurance was founded in 1976 by Senator Bradford in Pine Bluff and is a group of independent agencies bound together by common ownership and other similar business principles. The combined offices have written premiums in excess of $76 million.

First United, with $2.65 billion in assets, is a multi-bank holding company with a non-bank subsidiary, First United Trust Company, N.A. Founded in 1980, First United has grown to become the largest publicly held bank holding company headquartered in Arkansas. First United's stock is listed on the NASDAQ National Market System under the symbol "UNTD."