Bank of Rison Poised for $5.4 Million Sale

by George Waldon  on Monday, Apr. 23, 2012 12:00 am  

Fordyce Bank & Trust Co. is in the process of buying the smallest bank in Arkansas: Bank of Rison (Cleveland County).

The deal for the $30.1 million-asset lender weighs in at $5.4 million. Bank of Rison operates out of one location with a staff of six.

The bank produced a profit of $331,000 and a return on equity of 6 percent during 2011. Six of its largest shareholders are:

* James Hopson of Rison, 22.8 percent worth $1.23 million.

* LBM 99 Trust of Fayetteville, Lee and Brian Moore trustees, 21.25 percent worth nearly $1.15 million.

* Ira Moore III of Little Rock, 4.25 percent worth $229,500.

* Judy Caruthers of Little Rock, 3.45 percent worth $186,300.

* Hershel R. Garner Trust of Rison and Irene H. Searcy Revocable Trust of Sun City, Ariz., each with 3 percent worth $162,000.

The $123.1 million-asset Fordyce Bank & Trust has operated a branch in Rison since 1994. The company, with a staff of 40, also has full-service locations in Fordyce, Pine Bluff and White Hall.

When completed, the transaction will mark the first conventional bank buy in Arkansas since 2009.

Three deals closed that year: First National Bank of Hot Springs bought Heritage Bank of Jonesboro, November 2009; Farmers & Merchants Bank of Stuttgart purchased First National Bank of Marianna, June 2009; First Security Bank of Searcy acquired Union Bank of Benton, April 2009.

The acquisition of the Bank of Rison is financed with $2.7 million cash from Fordyce Bank & Trust and a $1.5 million loan from Simmons First National Bank of Pine Bluff .

The remaining $1.2 million cash will come from FBT Banshares Inc., the Fordyce bank's holding company.

 

 

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