Price Stalls Deal on Ownership Change at Delta Trust

by George Waldon  on Monday, May. 6, 2013 12:00 am  

Delta Trust Cast of Characters: The players in whether there will be a change in ownership at Delta Trust Banking Corp.

“If you want to be aggressive and you want to gain market share, you have to have more capital,” a long-time Delta Trust shareholder said.

“We have shareholders in-terested in expanding their holdings. I don’t know what will happen, but Delta’s goal is to grow and build a bigger bank.”

The 2009 capital effort set the stage for the best three years since the company was formed in 1999. Annual profits and dividends established successive high-water marks during 2010-12.

Delta Trust ranked No. 20 among the best performing Arkansas banks during 2012 in terms of return on equity. Net income topped $4.3 million, and stockholders shared in the biggest dividend payout to date: $1.05 million.

At last count, the LaFrance family held a combined 8.15 percent stake in Delta Trust.

The additional shares are divided among Stephen LaFrance Jr., 0.81 percent; Jason LaFrance, 0.67 percent; and their LAF Brothers LLC, 0.86 percent.

The roster of Delta Trust shareholders numbers more than 200.

Leading Shareholders, Delta Trust Banking Corp.

Thomas Pugh Jr.* 10.54%
Robert LaRoche 6.34%
Stephen LaFrance Sr.** 5.81%
Claude M. Ballard Trust 4.23%
Morin “Monty” Scott 4.11%
Michael Montgomery 3.03%
Winthrop Rockefeller# 2.86%
Gerald Johnston 2.83%
French Hill## 2.78%
Thomas McLarty III 1.73%

* Pugh family owns 12.58 percent.  
** LaFrance family owns 8.15 percent.
# Rockefeller family owns 3.46%.
## Has warrants for an additional 8.59%.

In the Beginning

When Delta Trust Banking Corp. was established in 1999, stock was marketed in a private placement offering at $225 per share. In 2009, the price was $290 per share.

That’s not much appreciation over a decade and reflects the performance struggles endured as the bank sought to expand from its rural, agri-based roots.

 

 

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