Arkansas TARP Banks Post a Range Of Results

by George Waldon  on Monday, Jan. 7, 2013 12:00 am  

The -$10.6 million was listed under the heading of “cumulative effect of changes in accounting principles and corrections of material accounting errors.”

In addition to battered capital, One Bank recorded a $1.1 million loss in the third quarter, and Layton “Scooter” Stuart was removed as its chairman and CEO at the behest of the Office of the Comptroller of the Currency.

Other Arkansas banks linked with TARP funds are profitable through Sept. 30: Community First Bank of Harrison, nearly $4.3 million; and Riverside Bank of Sparkman (Dallas County), $1.2 million. Chambers Bank of Danville registered net income of $900,000 through nine months despite enduring a loss of nearly $4.3 million in the third quarter.

A seventh Arkansas lender exited the TARP roster after the U.S. Treasury sold its preferred shares at a 10 percent discount in November.

The $41.9 million-asset Corning Savings & Loan Association reported a $323,000 profit through Sept. 30. The Clay County thrift received $638,000 from the U.S. Treasury.

Third-Quarter Checkup

Two banks tied to would-be sales earlier this year reported diverging third-quarter results.

Decatur State Bank lost nearly $700,000 during the Sept. 30 reporting period. For the year, the $127.3 million-asset Benton County lender has tallied a $3.7 million loss.

Bank of Rison broke even during the third quarter after recording a $1.2 million loss through Sept. 30. The $25.6 million-asset lender lost more than $1.3 million in the second quarter after posting a first-quarter profit of $153,000.

The Cleveland County bank reported total equity of $4.2 million compared with $3.2 million at the much larger Decatur State Bank.

For the year, DSB has benefited from capital injections of $2.1 million through its parent company, Peterson Holding Co.

A proposed sale at book value of Bank of Rison to Fordyce Bank & Trust was called off a couple of months ago when the parties reached an impasse in renegotiating the $4.2 million deal.

After due diligence, Mathias Bancshares Inc. of Springdale decided against taking on Decatur State Bank in a zero consideration transaction.



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