The third anniversary of the regulator-mandated regime change at Little Rock’s One Bank & Trust is approaching. The national bank has endured a tumultuous ride since Layton “Scooter” Stuart was removed as chairman, president and CEO on Sept. 28, 2012.
Back then, One Bank operated 10 offices with total assets of more than $454 million. The office count stands at eight now, and total assets have dropped to $326 million.
Accompanying the 28 percent reduction in assets during the past 12 quarters is a 52 percent fall in equity capital: $26.7 million to $12.7 million.
Asset quality remains an ongoing battle, but problem loans have held below $10 million for four successive quarters.
Noncurrent loans at One Bank totaled $16.2 million at Sept. 30, 2012. That number is $6.4 million as of June 30.
The bank’s profit picture has been dominated by red during that three-year span. The most recent quarterly profit, $167,000 realized June 30, was induced with the aid of a mortgage sale.
Extraordinary items twice provided quarterly relief last year for One Bank through the recovery of money from the Stuart estate after his death at the age of 62 on March 26, 2013 ($3 million), and insurance coverage for employee malfeasance related to Stuart and other top executives ($1 million).
Insider talk continues about a settlement agreement that could bring the bank several million dollars. The money, more than $5 million by some accounts, represents One Bank’s cut of $14.9 million held by the U.S. Treasury after cash and other assets were seized two years ago from Stuart and his estate.
Other parties standing to benefit from a financial settlement include the U.S. government, which provided $17.3 million in TARP funds to the bank; and Johnelle Hunt (through her BHL Financing LLC), owed $15.2 million secured by Stuart’s personal guarantee and his 99 percent stock ownership of One Bank through its holding company, OneFinancial Corp.
Stuart’s heirs, his wife and two adult children, also have a seat at the table when the money is divided.
The clock is ticking for the agreement in principle to become final.
A bench trial is scheduled in federal court in Little Rock for the first week of December. There will be no more continuances granted in this long-running dispute, by order of U.S. District Judge Brian Miller.
One Bank & Trust, Little Rock
Staff: 72 | Full-Service Locations: Little Rock, 7; North Little Rock, 1
(All dollars in thousands)
| Total Assets | Equity Capital | Noncurrent Loans | Net Income | |
| Sept. 30, 2012 | $454,486 | $26,770 | $16,287 | -1,154 |
| Dec. 31 | $439,726 | $22,872 | $15,462 | -4,145 |
| March 31, 2013 | $423,098 | $19,918 | $16,908 | -2,954 |
| June 30 | $400,793 | $18,746 | $19,768 | -707 |
| Sept. 30 | $393,018 | $16,404 | $19,735 | -1,306 |
| Dec. 31 | $378,531 | $14,737 | $17,260 | -1,686 |
| March, 31, 2014 | $377,206 | $13,763 | $8,113 | -1,195 |
| June 30 | $374,964 | $16,792 | $11,265 | $2,399* |
| Sept. 30 | $358,038 | $16,855 | $9,687 | $106** |
| Dec. 31 | $343,464 | $15,578 | $5,117 | -$898 |
| March 31, 2015 | $332,652 | $14,066 | $5,611 | -1,474 |
| June 30 | $326,129 | $12,785# | $6,416 | $167## |
*Reflects a $3 million extraordinary item, money released from seized assets held by the U.S.
government. The cash came from the payout on Scooter Stuart’s life insurance, which reimbursed One Bank for premiums paid on the policy.
**Reflects a $1 million settlement the bank received in a lawsuit against Travelers Indemnity Co., an
affiliate of St. Paul Mercury Insurance Co. The dispute was tied to One Bank’s efforts to collect $2 million on its financial institution bond for coverage that included “dishonesty of employees.”
#Reflects net unrealized loss of $978,000 on available-for-sale securities.
##Reflects a $403,000 gain on the sale of mortgages on the secondary market.
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