First United Bankshares of El Dorado, Ark., said it plans to buy Mountain Bancshares of Yellville, Ark., for $23 million of stock.

The deal is expected to close during the fourth quarter.

Mountain is the parent company of Bank of Yellville, which has five branches and $103 million of assets. That bank would keep its name and charter.

First United, with $2.4 billion of assets, has 13 bank subsidiaries operating 38 branches in three states. Only one of those banks is based in northern Arkansas, where Mountain Bancshares is headquartered.

"We have been interested in expanding our presence in northern Arkansas for quite some time," said James V. Kelley, chairman, president and chief executive officer of First United, in announcing the deal last week. "We are fortunate to affiliate with a bank that has the record of growth and service that Bank of Yellville has demonstrated." Since 1993, Bank of Yellville has almost doubled its assets, from $55 million.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.