Regional Move Marks Fourth for Harrell Bancshares

by George Waldon  on Monday, Nov. 11, 2013 12:00 am  

The 13-year track record of First Community Bank of Crawford County reflects a lender struggling to balance growth and profitability.

Since its launch in 2000, the Van Buren bank has amassed a combined loss of nearly $6.3 million through Sept. 30. Seven out of 13 fiscal years produced red ink.

Total assets have fallen to less than $67 million of late after climbing as high as $96.5 million at midyear 2011. The meager fortunes of First Community began to seriously wane that year.

The bank initially reported a loss of $399,000 in 2011. However, the figure ballooned to a $4.1 million loss after the lender filed restated financials.

The restatement followed First Community entering a consent order with the Federal Deposit Insurance Corp. on July 31, 2012. The order called for improved capital and reduced concentrations of credit.

Described as significantly undercapitalized by federal regulators, First Community is undergoing its second change of ownership involving a south Arkansas banking concern. The bank is in the early stages of a pending sale to First Bank of Hampton (Calhoun County). The $256 million-asset lender is owned by Harrell Bancshares Inc. of Camden.

The First Community deal marks the fourth northwest Arkansas move by Harrell Bancshares in the past three years.

A branch in Rogers and Siloam Springs was purchased in November 2010 from Fayetteville’s Signature Bank of Arkansas. These were added to the First Bank network, which includes four locations in Camden and a full-service office in Hampton and also in Junction City (Union County).

First Bank opened a loan production office in Fayetteville last month. Harrell Bancshares acquired Simply Home Lending Inc. of Fayetteville earlier this year.

First Community has been owned by Ashley Bancstock Co. of Crossett since 2007. The holding company also owns $134 million-asset First National Bank of Crossett.

First Community Bank of Crawford County, Van Buren
Total Assets: $66,877
Net Income: -$1,031
Other Real Estate Owned: $3,537
Nonaccrual Loans: $2,969
Total Equity: $4,161
Staff: 21
(As of Sept. 30)

Total AssetsNet IncomeDividends
2012 $83,747 -$1246 0
2011 $94,064 -$4121 $35
2010 $95,772 $100 0
2009 $85,692 -$35 0
2008 $81,906 $432 0
2007 $66,959 $364 0
2006 $56,806 $234 0
2005 $48,370 $194 0
2004 $50,603 -$195 0
2003 $56,598 -$781 0
2002 $42,487 $288 0
2001 $27,534 -$161 0
2000 $12,177 -$338 0

All dollars in thousands.
Source: Federal Deposit Insurance Corp. All chart figures in thousands

 

 

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