The balance sheet of Mulberry’s Allied Bank is positioned to undergo a third-quarter makeover after a July 21-24 real estate auction.
The $107 million-asset lender intends to liquidate a chunk of its OREO portfolio during the four-day event.
The bank, controlled by the Lex Golden family of Little Rock, reported more than $11.1 million worth of “Other Real Estate Owned” as of March 31 (the most recent quarterly report available).
Allied Bank also ended the first quarter with $3.2 million in nonaccrual loans secured by real estate.
Since 2008, Allied’s year-end OREO total has fluctuated from a low of $535,000 in 2009 to a high of $11.7 million in 2013.
In addition to real estate in central and northwest Arkansas recovered from bad loans, three of the company’s eight bank branches are headed to the auction block as well.
Two of the closed, former full-service offices are in Little Rock, and the other is in Van Buren.
The Goldens continue battling to right the ship and return Allied to the good graces of state and federal regulators.
Their continued ownership hangs in the balance of a bankruptcy court decision regarding Allied’s parent company, Acme Holding Co.
An auction of Allied bank stock, advocated by three of Acme’s largest creditors, would remove the Goldens from the picture and could bring in Danville’s Chambers Bank.
The Chapter 11 filing by Acme nearly 15 months ago thwarted a pending foreclosure by Chambers. The $686 million-asset lender holds all Allied bank stock as security on more than $4.5 million of debt owed by Acme.
The deteriorating condition of Allied Bank led to the shutoff of Acme’s prime source to service its debt: dividends.
The bank is prohibited from declaring dividends under the terms of an ongoing cease-and-desist order by the Arkansas State Bank Department, dating back to Nov. 15, 2011, and a supervisory agreement with the St. Louis Federal Reserve, May 2, 2012.
