More than a year has passed since an investment group led by Jeff Hobbs took on the role of would-be buyer of Community State Bank in Bradley (Lafayette County).
“We’re still trying to get it bought,” Hobbs said.
The possibility of new ownership for the $16.2 million-asset lender was brought into play two years ago with the Chapter 11 bankruptcy filing of its parent company, Allcorp Inc.
Allcorp defaulted on $1.3 million of debt held by Little Rock’s Heartland Bank, triggering the trip to bankruptcy court.
That debt is now held by Pine Bluff’s Simmons Bank, which took over Heartland last August following a loan default of its parent company, Rock Bancshares Inc.
Riverside Bank of Sparkman (Dallas County) also holds two loans totaling $537,037 and secured by Allcorp stock owned by the Lex Golden family.
As Allcorp meanders toward its 25th month in bankruptcy, Hobbs will be taking over as president and CEO of Community State Bank on Aug. 1.
That’s when Bob Genestet retires. He has held those posts since April 2014 when he replaced Hobbs, who moved on to Bloomburg State Bank in Texas.
Hobbs owned a 12.2 percent stake in Community State Bank when it was sold to an investment group led by the Lex Golden family in September 2010. Hobbs served as an executive vice president at the bank during 2007-12 and did a one-year stint as president during 2013-14.
“We have an exam coming up the second week of August,” Hobbs said. “I look forward to the results of that.”
He said the exam will show fiscal progress since he re-entered the operational picture at the bank last year.
“We’ve been cutting unnecessary expenses and bringing in new loans,” Hobbs said. “Loans have grown from about $6.5 million to $9.5 million. Our earnings will be about $85,000 through June 30. That’s about a 1 percent return on assets.”
Community State Bank, Bradley
Total Assets: $16.2 million
Equity Capital: $2.6 million
Salaries: $86,000 Net Income: $7,000
Dividends: $0 Staff: 6
(As of March 31, dollars in thousands.)
|Total Assets||Net Income||Salaries||Dividends||Efficiency Ratio|
Source: Federal Deposit Insurance Corp.