Exhibit 8.3

                        [FERGUSON & COMPANY LETTERHEAD]



                               September 8, 1997

Board of Directors
Newport Federal Savings Bank
200 Olivia Drive
Newport, Arkansas 72112

                    Plan of Conversion, Subscription Rights
                    ---------------------------------------

Dear Directors:

     Terms used in this letter not otherwise defined herein have the same 
meaning for such terms in the Plan of Conversion adopted by the Board of 
Directors of Newport Federal Savings Bank ("Newport Federal" or the "Bank"), 
under which the Bank will convert from a mutual savings bank to a stock savings 
bank and issue all of the Bank's stock to North Arkansas Bancshares, Inc. (the 
"Holding Company").  Simultaneously, the Holding Company will issue shares of 
common stock.

     We understand that in accordance with the Plan of Conversion, Subscription 
Rights to purchase shares of Common Stock in the Holding Company are to be 
issued to (1) Eligible Account Holders, (2) the Bank's tax qualified employee 
plans, (3) Supplemental Eligible Account Holders, and (4) Other Members.  Based 
solely upon our observation that the Subscription Rights will be available to 
such parties without cost, will be legally nontransferable and of short 
duration, and will afford parties the right only to purchase shares of Common
Stock at the same price to be paid by members of the general public in the
Community Offering, but without undertaking any independent investigation of
state or federal laws or the position of the Internal Revenue Service with
respect to such issue, we are of the belief that:

     (1)  the Subscription Rights will have no ascertainable market value; and

     (2)  The price at which the Subscription Rights are exercisable will not be
          more or less than the pro forma market value of the shares upon
          issuance.
     
     Changes in the local and national economy, the legislative and regulatory 
environment, the stock market, interest rates and other external forces (e.g., 
natural disasters or significant global events) occur from time to time and may 
materially affect the value of thrift stocks as a whole or the Holding Company's
value.  Accordingly, no assurance can be given that persons who subscribe to 
shares of Common Stock in the Conversion will thereafter be able to sell such 
shares at the same price paid in the Subscription Offering.



                                           Sincerely,

                                           /s/ Robin L. Fussell
                                           Robin L. Fussell
                                           Principal