Arkansas TARP Banks Post a Range Of Results

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

Six Arkansas lenders remain as participants in the U.S. Treasury’s Capital Purchase Program-Troubled Asset Relief Program. Half are current on their quarterly payments to Uncle Sam.

Not surprisingly, the three banks associated with missed payments are running in the red.

CPP-TARP* Lenders in Arkansas

Government-Supplied CapitalMissed Quarterly PaymentsNon-Current Payments Total
Rogers Bancshares, Little Rock $25,000,000 11 $3,746,875
Chambers Bancshares, Danville $19,817,000 0 $0
OneFinancial Corp., Little Rock $17,300,000 1 $351,000
White River Bancshares, Fayetteville $16,800,000 6 $1,373,400
Community First Bancshares, Harrison $12,725,000 0 $0
Riverside Bancshares, Little Rock $1,100,000 0 $0

*Capital Purchase Program-Troubled Asset Relief Program. Source: U.S. Treasury.

Metropolitan National Bank of Little Rock posted a $1.2 million loss in the third quarter that pushed its combined nine-month loss for the year to $2.7 million.

The bank is carrying $88.7 million of property recovered from bad loans, aka Other Real Estate Owned. That OREO total is down from $94 million on June 30 and down from $108 million on Dec. 31.

Metropolitan’s equity capital stands at $64.8 million. Helping stabilize the bank’s capital is $25 million that its holding company, Rogers Bancshares Inc., received through the TARP program.

Rogers Bancshares has missed 11 quarterly payments on the government-supplied capital, which total more than $3.7 million as of June 30.

Signature Bank of Fayetteville recorded a $4.7 million loss for the nine months ending Sept. 30. However, the bank did generate a modest profit of $420,000 during the third quarter.

Signature’s equity capital is $56.5 million, boosted by $16.8 million in TARP funds that flowed through its parent company, White River Bancshares Co.

White River has missed six quarterly TARP payments that total nearly $1.4 million as of June 30.

OneFinancial Corp., the holding company for Little Rock’s One Bank & Trust, is a newcomer to the list of TARP-delinquent institutions. OneFinancial, which received $17.3 million, has missed only one quarterly payment of $351,000 as of June 30.

One Bank’s balance sheet took a serious blow in the third quarter when $10.6 million was sliced out of its equity capital — a 28 percent reduction in capital for the $454 million-asset bank.

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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