Duke-Led Group to Buy Community State for $5.1M


Duke-Led Group to Buy Community State for $5.1M
Community State Bank in Bradley (Google Maps)

The smallest bank in Arkansas is poised for its second ownership change in three years.

Little Rock’s Omni Bank Group Inc., led by president and CEO Troy Duke, intends to buy the $32.2 million-asset Community State Bank of Bradley (Lafayette County) in a pending $5.1 million transaction.

Community State tallied $3.6 million in capital at year-end and produced its biggest annual profit in its 88-year history: $663,000.

Duke and Garland County businessman Lewis Ray “LR” Gardner led the formation of Sigma Holdings Inc., which acquired the Bank of Rison for about $3.8 million in 2013 and converted it into Gateway Bank.

At the time, the $23.9 million-asset lender had the distinction of being the smallest bank in Arkansas.

Most recently, Duke was a senior vice president of commercial lending in Little Rock for Batesville’s First Community Bank. Before that, he was at Little Rock’s Capital Bank before it made the transformation into Encore Bank.

Community State is led by Jeff Hobbs, who returned as president and CEO in August 2018 while the bank was mired in the long-running bankruptcy of its parent company, Allcorp Inc.

The misfortunes of Allcorp and Community State were linked with those of its controlling ownership at the time: the Lex Golden family of Little Rock.

Hobbs owned a 12.2% stake in the bank when it was sold for $3.1 million to an investment group led by the Goldens in September 2010.

He had served as an executive vice president at Community State during 2007-12 and as president during 2013-14.

In 2019, Allcorp’s ownership of the $17.1 million-asset bank was liquidated in a $2.6 million deal.

Of the proceeds from that stock sale, $1.5 million went to Simmons Bank of Pine Bluff. Simmons entered the picture in August 2017 through a $1.3 million debt held by Little Rock’s Heartland Bank. That loan in default triggered the Golden family taking Allcorp to bankruptcy court.

The Heartland loan passed to Simmons, which took over Heartland following a loan default of its parent company, Rock Bancshares Inc.


Community State Bank, Bradley
Total Assets: $32.2 million
Net Income: $663,000
Dividends: $191,000
Staff: 7
(All dollars in thousands. Figures shown as of Dec. 31, 2021)

 

Total Assets

Net Income

Dividends

Efficiency Ratio

2011

$30,141

$186

$186

59.95%

2012

$29,360

$325

$325

61.75%

2013

$24,674

$18

$0

88.33%

2014

$19,336

$323

$650

81.85%

2015

$17,308

$55

$149

90.22%

2016

$15,342

-$246

$35

86.65%

2017

$15,205

-$15

$0

102.67%

2018

$17,132

$158

$0

80.68%

2019

$20,588

$211

$0

68.27%

2020

$27,574

$403

$49

63.92%

Source: Federal Deposit Insurance Corp.