Bad Debt Triggers Chambers Bank Deal

by George Waldon  on Monday, Feb. 4, 2013 12:00 am  

On Nov. 16, control of Grand Savings Bank and  Decatur State Bank shifted from the Peterson family to Chambers Bank of Danville. The DPC (debt previously contracted) acquisition involved about $20 million of debt held by Chambers Bank and secured by an 81 percent stake in the banks’ parent company, Peterson Holding Co. (Photo by Wayne DePriest)

The FDIC alleged that Holcombe engaged in unsafe or unsound banking practices and/or breaches of fiduciary duty that resulted in financial loss.

Holcombe, who served as a director for 12 of the 17 years he worked at Decatur State Bank, joined Arvest Bank in August 2011 and left in August 2012.

Equity capital at Decatur State Bank rose back to $4.5 million at year-end after Chambers Bank entered the equation, and the bank finished 2012 with a $333,000 profit and total assets of $122 million.

Shifting most of the cost of salaries and benefits for Decatur State Bank staffers to Chambers Bank helped the cause.

Chambers Bank also concluded 2012 on an upbeat note. Fourth-quarter profits of $8.2 million flowed into its coffers, replenishing its capital to $80.1 million.

 

 

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