Exhibit 5

              [LETTERHEAD OF HOUSLEY KANTARIAN & BRONSTEIN, P.C.]



                               September 19, 1997



Board of Directors
North Arkansas Bancshares, Inc.
200 Olivia Drive
Newport, Arkansas  72112

     RE:  Registration Statement on Form SB-2

Gentlemen:

     You have requested our opinion as special counsel to North Arkansas
Bancshares, Inc. (the "Company"), in connection with the Registration Statement
on Form SB-2 to be filed with the Securities and Exchange Commission under the
Securities Act of 1933, as amended (the "Registration Statement").  The
Registration Statement relates to shares of common stock of the Company (the
"Common Stock") to be issued in connection with the simultaneous conversion of
Newport Federal Savings Bank (the "Bank") from a federal mutual savings bank to
a federal capital stock savings bank and reorganization into the holding company
form of ownership as a wholly owned subsidiary of the Company.

     In rendering this opinion, we understand that the Common Stock will be
offered and sold in the manner described in the Prospectus which is a part of
the Registration Statement.  We have examined such records and documents and
made such examination as we have deemed relevant in connection with this
opinion.

     Based upon the foregoing, it is our opinion that the shares of Common Stock
will, when issued and sold as contemplated by the Registration Statement, be
legally issued, fully paid and nonassessable.

     We hereby consent to the filing of this opinion as an exhibit to the
Registration Statement and to the reference to us in the Prospectus under the
heading "Legal and Tax Matters."

                                       HOUSLEY KANTARIAN & BRONSTEIN, P.C.


                                       By: /s/ Gary R. Bronstein
                                          --------------------------------
                                           Gary R. Bronstein