FDIC Ends Consent Order With First Community Bank of Crawford County

by Lance Turner  on Friday, Mar. 28, 2014 2:15 pm  

The Federal Deposit Insurance Corporation has terminated a pair of enforcement actions against the First Community Bank of Crawford County, which is now owned by the First Bank of Hampton.

The FDIC this week said it terminated a consent order it imposed on the lender in July that called for improved capital and reduced concentrations of credit. It also said it ended the "prompt corrective action directive" from September that labeled the bank "significantly undercapitalized."

The FDIC ended both actions against the bank on Feb. 10. It made the terminations public on Friday.

First Bank of Hampton (Calhoun County) completed its acquisition of First Community Bank of Crawford County in Van Buren in February. The purchase pushed the asset total of First Bank to more than $300 million.

First Community reported total assets of $66.8 million in its final call report on Sept. 30. Its Van Buren and Alma locations are now branches of First Bank. Terry Carson, president of First Community, is now First Bank's market president for Crawford County.

First Community was owned by Ashley Bancstock Co. of Crossett. The holding company also owns $138.7 million-asset First National Bank of Crossett.

First Community had lost more than $6.3 million since 2011, and its final total equity tally was $4.1 million. The bank acknowledged problem loans at the time of the July consent order with the FDIC

"We have been affected by this economic downturn, just as our customers have been affected. Fortunately, this issues are identified and are limited in scope," Debbie Gibson, vice president of customer service, said in an August news release.

The bank said the FDIC had criticized "a small number of loans, primarily in northwest Arkansas."

First Bank is owned by Harrell Bancshares Inc. of Camden. The First Community deal marked the fourth northwest Arkansas move by Harrell Bancshares in the past three years.

 

 

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