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Planters & Merchants Bank


RE: Planters & Merchants Bank Gillett, Arkansas County, Arkansas

Application for Consent to Continue to Engage as Principal, Through a Wholly-Owned Subsidiary, in Activities Which May Not Be Permissible for a Subsidiary of a National Bank


Pursuant to the provisions of section 24 of the Federal Deposit Insurance Act, an application has been filed with the Federal Deposit Insurance Corporation by Planters & Merchants Bank, Gillett, Arkansas County, Arkansas ("Planters"). The applicant requests the Corporation's consent to continue to engage in real estate investment activities through its wholly-owned subsidiary, P. & M. Real Estate, Inc. ("P&M"), which may not be permissible for a national bank or a subsidiary of a national bank.

Planters, which meets the definition of "well capitalized" within the meaning of Part 325 of the Federal Deposit Insurance Corporation's rules and regulations, is in compliance with applicable minimum capital standards. In view of the limited real estate holdings of P&M and the fact that those holdings will eventually be liquidated, the activities to be conducted do not appear to pose a significant risk to the Bank Insurance Fund.

Accordingly, based upon careful evaluation of all available facts and information, the Associate Director, acting under delegated authority, has concluded that approval of the application is warranted.