[KPMG LETTERHEAD]



February 5, 1999

Securities and Exchange Commission
Washington, D.C.  20549

Ladies and Gentlemen:

We were previously principal accountants for North Arkansas
Bancshares, Inc. and, under the date of August 7, 1998, we
reported on the consolidated financial statements of North
Arkansas Bancshares, Inc. and subsidiary as of and for the years
ended June 30, 1998 and 1997.  On February 4, 1999, we were
notified that our appointment as principal accountants was
terminated.  We have read North Arkansas Bancshares, Inc.'s
statements included under Item 4 of its Form 8-K dated January
28, 1999, and we agree with such statements, except that we are
not in a position to agree or disagree with North Arkansas
Bancshares, Inc.'s statement that the dismissal of KPMG LLP and
the appointment of Baird, Kurtz & Dobson, Certified Public
Accountants on January 28, 1999, was approved by the board of
directors, and we are not in a position to agree or disagree with
the statement that Baird, Kurtz & Dobson, Certified Public
Accountants was not engaged to provide advice regarding the
application of accounting principles to a specified transaction
or the type of audit opinions that might be rendered on the North
Arkansas Bancshares, Inc.'s consolidated financial statements.

                                      Very truly yours,

                                      /s/ KPMG LLP

                                      KPMG LLP