Posted 6/11/2012 12:00 am
Updated 11 months ago
We have more details on that northwest Arkansas deal.
The proposed transaction involves buying out Decatur State's shareholders for $2 million, provided the Benton County bank maintains equity capital of $6.5 million when the deal closes.
Decatur State Bank reported equity capital of nearly $5.4 million and total assets of $146.4 million as of March 31. The bank, with offices in Decatur, Gentry and Siloam Springs, recorded a $1 million loss in the first quarter.
Mathias Bancshares owns First State Bank of Northwest Arkansas, an $81.9 million-asset concern based in Huntsville. Real estate developer Sam Mathias of Fayetteville owns his namesake bank holding company.
Decatur State is operating under regulatory sanctions, so the purchase entails rebuilding its depleted capital.
Plans call for injecting Decatur State Bank with $14 million in new capital, through a $10 million loan from Chambers Bank of Danville and a $4 million special dividend from First State Bank of Northwest Arkansas.
Although Mathias intends to operate the banks as separate entities, the operations will share the services of Larry Olson as president and chief executive.
Olson has held those posts with First State of Northwest Arkansas since October 2010.
The Lloyd Peterson family, which has owned Decatur State Bank through its Peterson Holding Co., will retain ownership of the $238.4 million-asset Grand Savings Bank of Grove, Okla.