Chambers Bancshares Buys Control of Decatur State Bank

by George Waldon  on Monday, Dec. 10, 2012 10:47 am  

Decatur State Bank has found a new owner after a proposed sale fell apart earlier this year.

Chambers Bancshares Inc. of Danville bought controlling interest of the $127.3 million-asset bank's parent company: Peterson Holding Co. The deal includes Grand Savings Bank of Grove, Okla., marking the first out-of-state expansion for Chambers.

Details of the sale weren't released. The transaction received expedited attention from regulators because of Decatur State Bank's deteriorating financial condition.

The bank, which employs 46 in three offices in Decatur, Gentry and Siloam Springs, lost nearly $700,000 during the Sept. 30 reporting period. For the year, the Benton County lender has tallied a $3.7 million loss.

DSB amassed a $12.6 million loss during 2011. The bank began posting red ink in the fourth quarter of 2010 but was struggling throughout the year. Thanks to a quarterly loss of $4 million, DSB ended up losing $2.9 million during 2010.

In contrast, Grand Savings has operated profitably and generated net income of $2.5 million through Sept. 30. The $232.4 million-asset lender employs 63 at its two offices in Grove and JayOkla.

Mark Londagin, president and CEO of Decatur State Bank since June 2011, will remain president and CEO of Grand Savings.

Mike Donnell, who was promoted to president of Chambers Bank in October, will serve as president and CEO of Decatur State Bank.

Debra Peterson Evans of Rogers controls at least 95 percent of the stock in Peterson Holding Co. in her role as family trustee.

The two largest stakeholders in Peterson Holding Co. are the Lloyd E. Peterson Revocable Trust, 78 percent, and Dorothy Mae Peterson, 17 percent.

A would-be sale for zero consideration to Mathias Bancshares Inc. of Springdale went by the wayside a few months ago. Mathias intended to rebuild DSB's capital with a $13 million infusion.

Decatur State Bank has operated under a supervisory agreement with the Federal Deposit Insurance Corp. since November 2011. Chambers Bank has operated under a consent order with the FDIC since December 2011.

The $704 million-asset lender posted a nearly $4.3 million loss during the third quarter. The bank recorded a loss of almost $5.5 million during 2011 after enduring a $17.8 million loss in 2010.

Chambers Bank operates 19 full-service locations with a staff of 130.



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