PARAGOULD, Ark. & HARTSVILLE, Tenn.--(BUSINESS WIRE)--First Paragould Bankshares, Inc. (“First Paragould”), the holding company for First National Bank (“First National”), announced today that it has entered into a definitive agreement to acquire Cumberland Bancshares, Inc. (“Cumberland”) and its banking subsidiary, Citizens Bank located in Hartsville, Tennessee.
With the proposed transaction, First National will enter Tennessee and establish a significant presence within the Nashville MSA, including branches in Sumner County and Trousdale County. On a pro forma basis, First National Bank will have 23 branches and total assets of approximately $2.2 billion.
William Brewer, Chairman and CEO of First Paragould, commented, “We are excited to be partnering with Citizens Bank as both institutions share a similar banking culture and a strong commitment to our respective communities and customers. We are enthusiastic about entering the Tennessee state banking market and impressed with Citizens’ top 15 ranked share of the Sumner County deposit market, an attractive, fast-growing market within the Nashville MSA, as well as with Citizens’ #1 share of the Trousdale County deposit market, one of the state’s fastest-growing counties.”
“This combination is attractive for our customers, employees, and shareholders,” said Philip Holder, Chairman, President and CEO of Cumberland. “Being part of a larger community bank that shares our same customer-first focus will allow us to better provide competitive products and services to our customers while remaining actively involved in our communities.”
Todd Austin, President and CEO of Citizens Bank, who will assume the role of Market President following the transaction noted, “First National is a high-performing, growing, and successful community banking organization whose culture is very similar to our own. Our customers can feel confident that this merger only strengthens our ability to serve them in the manner they have come to expect from Citizens Bank.”
The transaction, which has been approved by the Board of Directors of both companies but remains subject to customary shareholder and regulatory approvals, is expected to be completed in the fourth quarter of 2021.
Fenimore, Kay, Harrison & Ford, LLP served as First Paragould’s legal advisor. Olsen Palmer LLC served as financial advisor and issued a fairness opinion to Cumberland, while the firm of Baker, Donelson, Bearman, Caldwell & Berkowitz, PC served as its legal advisor.
About First Paragould Bankshares, Inc. and First National Bank
First Paragould Bankshares, Inc. is the holding company for First National Bank, which began as the Bank of Paragould in March 1889. In 1903 the bank was granted a national bank charter and its name was changed to First National Bank. As of March 31, 2021, FNB had 20 branch locations and total assets of approximately $1.9 billion. For additional information, please visit https://www.fnbank.net/.
About Cumberland Bancshares, Inc. and Citizens Bank
Cumberland Bancshares, Inc. is the holding company for Citizens Bank which was founded in 1905 and is headquartered in Hartsville, Tennessee with additional offices in Gallatin and Hendersonville, Tennessee. As of March 31, 2021, Citizens Bank had total assets of approximately $290 million. For additional information about Cumberland Bancshares, Inc. and Citizens Bank, please visit https://www.cbtenn.com/.