Banks in Fundraising Mode Raise Total of Nearly $18M

Banks in Fundraising Mode Raise Total of Nearly $18M
Jonathan Harrell, CEO of Generations Bank of Rogers (Beth Hall)

A pair of Arkansas banks recently completed fundraising activities that total more than $17 million.

Harrell Bancshares Inc. of Camden recently raised $5.7 million, according to a U.S. Securities & Exchange filing.

The subordinated debt will be used “to help fund our future anticipated growth of the bank,” said Jonathan Harrell, president and CEO of Harrell Bancshares, parent company of Generations Bank.

Harrell said there are no specific plans at this time. The money raised “was an affordable source of capital and it just puts us in a position to be able to react quickly if opportunities appear in the near future,” he said.

Harrell said Generations Bank has had “a tremendous 2021 so far and certainly anticipates the year closing out in a record fashion for us.”

At the end of 2020, Generations reported $699.3 million in assets and net income of $6.4 million.

First Paragould Bankshares Inc. also reported raising $11.5 million, according to its Aug. 3 filing with the SEC. First Paragould Bankshares is the holding company for First National Bank of Paragould.

The filing said the equity raised will be used “to fund a portion of the purchase price for an acquisition.” The filing didn’t identify the acquisition. But if you recall back in May, First National Bank said that it was buying Citizens Bank of Hartsville, Tennessee, expanding into the Volunteer state and raising its total assets to about $2.1 billion.

At the time of the announcement, financial terms of the deal weren’t disclosed.

First National Bank Chairman Bill Brewer didn’t return a call for comment.