'Problem Assets' Spur Fundraising at Heartland Bank

'Problem Assets' Spur Fundraising at Heartland Bank
Judy Lawton

Did you know Rock Bancshares Inc. of Little Rock, the parent company of Heartland Bank, is raising $3 million?

The money will be used “to meet the working capital needs of the holding company while we’re preserving the capital of Heartland Bank,” said Judy Lawton, president of Heartland Bank.

She said the bank is working “through our oil- and gas-related challenges it faces.”

At June 30, the $227 million-asset bank had a net income of $530,000 for the year, compared with $3.7 million for the same period a year ago.

Its assets at June 30, 2015, were $244.2 million.

“We have had an increase in problem assets,” Lawton said.

As of last week, Rock has raised only $200,000 of the $3 million, according to its filing with the U.S. Securities & Exchange Commission.

Lawton said that she’s talking with the bank’s current investors to generate the money.

The last time Rock Bancshares had an offering was in 2011.

That offering was for $3.5 million, which fully sold.