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End of era: Union Bank sale closes |
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Wednesday, 27 August 2008 |
An era in Saline County banking ended Tuesday.
Benton-based Union Bank, which was the county’s last remaining locally owned financial institution, officially became the property of First Security Bancorp.
“Everything closed according to plan,” Mark Vanderpool, Union president, said this morning.
The pending sale was announced in early May. The sale price was not disclosed by either party.
The sale includes all six of Union Bank’s branches in Saline County. The main branch is at 207 W. Conway St. in Downtown Benton.
As of this morning, Union Bank had assets totaling $224 million. Union Bancshares Inc. is the holding company for Union Bank.
First Security Bancorp is the holding company for First Security Bank, which has more than 60 branches throughout Arkansas and has assets totaling about $2.6 billion.
First Security, based in Searcy, is family owned and operated and is one of the five largest financial institution in Arkansas.
Vanderpool said customers with both institutions will not notice any changes until sometime in 2009, probably during the second quarter.
“Technically, the banks will not be merged into one group until later,” he said, “so it will be business as usual for a while. A lot of things have to happen behind the scenes before we can accept transactions from First Security customers and vice versa.”
Greg Brown, who was chairman and chief executive officer of Union Bancshares until Tuesday, said in May that he told Union employees that their jobs would be secure with the bank’s sale.
Brown, 60, on Tuesday reiterated his belief that “Union Bank could not be in better hands with First Security. They are devoted to the communities in which they operate.”
Brown’s father, Henry Brown, was a member of the original Union Bank Board of Directors. The bank was formed in 1954 by a group of more than 50 local investors.
Vanderpool today called First Security “a fantastic banking organization. They are very professional people who understand Arkansas. We couldn’t be happier to be associated with First Security.”
Vanderpool, 51, joined Union Bank in October 2000.
Reynie Rutledge, First Security chairman and chief executive officer, said today that “we are delighted to have Union Bank in the family. The Benton-Bryant area is a real bright spot in Arkansas for growth and vitality. This acquisition will fit well in the footprint of First Security.”
With the acquistion, First Security has about 1,000 employees, Rutledge said.
Brown, who is in the process of moving to Utah from Benton, said he will remain under contract with First Security for five years as a consultant.
Union Bank’s other branches are at 1401 Military Road and the Kroger store in Benton; Harvest Foods in Salem; and 5619 Arkansas 5 North and 1823 N. Reynolds Road in Bryant.
In 2007, a group of area investors indicated an interest in purchasing Union Bank, but that deal never materialized.
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