First United Bancshares Inc. Announces Affiliation with Mountain Bancshares Inc. of Yellville, Ark.EL DORADO El Dorado, legendary country of South America El Dorado (ĕl`dərä`dō, –rā`–) [Span.,=the gilded man], legendary country of the Golden Man sought by adventurers in South America. , Ark.--(BUSINESS WIRE)--May 26, 1998--James V. Kelley, Chairman, President and Chief Executive Officer of First United Bancshares Inc. ("First United") (Nasdaq/NMS:UNTD), and Judy R. Loving, Chairman, President and Chief Executive Officer of Mountain Bancshares Inc. ("Mountain"), of Yellville, Ark., today announced the signing of an agreement to merge the two companies, pending approval by Mountain's and First United's shareholders and regulatory authorities Noun 1. regulatory authority - a governmental agency that regulates businesses in the public interest regulatory agency administrative body, administrative unit - a unit with administrative responsibilities . Mountain is the parent company of The Bank of Yellville, which operates locations in Yellville, Bull Shoals, Flippin, Lead Hill and Mountain Home, Ark. At March 31, 1998, Mountain, with total assets of $103 million, reported total deposits of $90 million and loans of $78 million. As part of the transaction, First United will exchange approximately 475,000 shares of its common stock for all of the outstanding shares of Mountain on a fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis. The total purchase price based upon today's market value of First United common stock is approximately $23 million. First United anticipates the earnings impact to be accretive to 1998 operating results. Both Mountain and First United anticipate this transaction to qualify as a pooling of interests Pooling of Interests An accounting method, used in mergers and acquisitions, where the balance sheet items of the two companies are simply added together. Notes: The opposite of pooling of interests is the purchase acquisition method. . "We have been interested in expanding our presence in northern Arkansas for quite some time and we are fortunate to affiliate with a bank that has the record of growth and service to its customers that The Bank of Yellville has demonstrated," stated Kelley. "We are impressed im·press 1 tr.v. im·pressed, im·press·ing, im·press·es 1. To affect strongly, often favorably: with their management and staff and their commitment to the markets they serve." "We, at The Bank of Yellville, are excited at the opportunity to create an affiliation with this stellar Arkansas banking organization," said Loving. "The common philosophy of community banking which we share with First United allows us to maintain our current hometown home·town n. The town or city of one's birth, rearing, or main residence. Noun 1. hometown - the town (or city) where you grew up or where you have your principal residence; "he never went back to his hometown again" service while enhancing our product offerings. In addition, this merger expands The Bank of Yellville's commitment to strengthen economic growth in North Arkansas." First United anticipates this transaction will close during the fourth quarter of 1998. First United Bancshares Inc., with $2.4 billion in assets, is a multi-bank holding company with thirteen (13) affiliate banks and a non-bank subsidiary Non-bank subsidiaries, are firms owned by bank holding companies which offer non-bank products and services, such as insurance and investment advice, and do not offer FDIC insured banking products, such as checking and savings accounts. , First United Trust Company, N.A., serving 38 communities in Arkansas, Texas and Louisiana. First United stock is listed on the NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on National Market System under the symbol "UNTD." CONTACT: First United Bancshares Inc., El Dorado John E. Burns, 870/863-3181 Fax: 870/863-0108 E-mail: burns47@arkansas.net |
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