North Arkansas Bancshares, Inc.
Ticker:NARK 200 Olivia Drive
Exchange:Over-the-Counter Market Newport, AK 72112
Industry:Financial (SIC Code 6035) (870) 523-3611

Offering Information
Type of Shares:Common Shares Filing Date:9/19/97
U.S. Shares:370,000 Offer Date:12/22/97
Non-U.S. Shares:0 Filing Price:$10.00
Primary Shares:370,000 Offer Price:$10.00
Secondary Shares:0 Gross Spread:
Offering Amount: $3,700,000 Selling:
Expenses: - Reallowance:
Shares Out After: -

Primary Underwriting Group
ManagerTierPhone
Trident Securities, Inc.Lead Manager (919) 781-8900

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Housley Goldberg & Kantarian
Bank's Law Firm: Silver, Freedman & Taff
Auditor: KPMG Peat Marwick

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
6/30/97 6/30/97
Revenue:$2.51Assets:$34.38
Net Income:-$0.20Curr Assets:
EPS:Liabilities:$32.11
Prior EPS:Curr Liabilities:
Cash Flow/Oper:$0.09Equity:$2.27
Cash Flow/Fin:$1.90Cash:$0.88
Cash Flow/Inv:-$2.27

Business Description
The company is the holding company for Newport Federal Savings Bank. The bank consists of attracting deposits from the general public and originating residential mortgage loans. The bank also offers various types of consumer and consumer loans. The Company was formed as a Tennessee corporation in September 1997 at our direction for the purpose of serving as our holding company after the Conversion. Prior to the Conversion, it has not engaged and is not expected to engage in any material operations. The Company has received the approval of the OTS to acquire control of us upon completion of the Conversion. Upon consummation of the Conversion, the only assets the Company is expected to own are the capital stock we will issue in the Conversion, a note receivable from our ESOP and any proceeds from the offering it retains. As a holding company, the Company will have greater flexibility than we would have to diversify its business activities through the formation of subsidiaries or through acquisition. The Company will be classified as a unitary savings and loan holding company after the Conversion and will be required to comply with OTS regulations and be subject to examination.

Competition
We compete for deposits with other insured financial institutions such as commercial banks, thrift institutions, credit unions, finance companies, and multi-state regional banks in our market area. We also compete for funds with insurance products sold by local agents and investment products such as mutual funds and other securities sold by local and regional brokers. Loan competition varies depending upon market conditions and comes from commercial banks, thrift institutions, credit unions and mortgage bankers, many of whom have greater resources than we have.

Use of Proceeds
The proceeds from the proposed offering will be used for general corporate purposes.

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