Posted 10/1/2012 12:00 am
Updated 8 months ago
You might recall Fordyce Bank & Trust was going to buy the Cleveland County lender for $5.4 million.
That deal represented a zero premium, book value multiple of 1. The value of the deal fell to about $4.2 million when the Bank of Rison posted a loss of nearly $1.4 million in the second quarter after boosting its loan loss reserves.
After completing due diligence, FB&T wanted to modify its offer to something less than book value.
Shareholders in the $27.9 million-asset Bank of Rison said no, and the parties have gone their separate ways.
Bank of Rison has tallied a $1.2 million loss through the first six months of 2012 after producing a first-quarter profit of $153,000.
On the plus side, the undone deal preserved four jobs at Bank of Rison. In the aftermath, Don Walsh was promoted from interim CEO to full-time CEO.