The parent company of Ash Flat’s FNBC Bank completed its second $7.25 million subordinated debt offering late last year.
FNBC Bancorp Inc. accomplished the first offering back in 2019, which largely was used to provide additional capital for its bank. Of those funds, $6.1 million flowed into the coffers of FNBC Bank during the fourth quarter of 2019.
What are the plans for the latest subordinated debt offering? Two of the bank’s top executives, CEO Marty Sellers and President Chad Hudson, couldn’t be reached for comment.
None of the new cash has made its way from FNBC Bancorp to its $805 million-asset bank so far. During the past six years, total equity capital at FNBC Bank has bounced around.
At year-end 2018, it stood at nearly $42.2 million before climbing to $52.6 million in 2019 with the aid of that year’s debt offering. The number rose to $56.8 million in 2020 and nearly $62.3 million in 2021.
At year-end 2022, total equity capital plummeted to $40.4 million while the bank reported a $7.3 million profit and doled out dividends of $5 million.
The big negative number impacting capital in 2022 was a loss in comprehensive income booked at $25.1 million.
According to regulatory filings that loss could include, but is not limited to, changes in net unrealized holding on available-for-sale debt securities, changes in accumulated net losses on cash flow hedges and pension and other postretirement plan-related changes other than net periodic benefit cost.
Also helping boost the bank’s capital during 2019-23 was a series of grants from the Community Development Financial Institutions Fund: $600,000 in 2019, $674,000 in 2020, $2.7 million in 2021, $1 million in 2022 and more than $5.1 million in 2023.
Among the goals of the U.S. Treasury’s CDFI grant program is to expand financial services in underserved communities.
FNBC Bank received its Community Development Financial Institution designation in 2016. The bank was established in 1912 as First National Bank of Sharp County and its current moniker was adopted in 2014.
San Antonio Play
Conway’s Centennial Bank is entering a new market in Texas: San Antonio. The $22.4 billion-asset lender intends to set up shop in a former Simmons Bank office at 9324 Huebner Road.
The location represents full-service branch No. 59 in Texas for Centennial. San Antonio hosts a competitive field of 51 banks.
The addition of Centennial will restore the Arkansas contingency of banks in San Antonio to three, with the exodus of Simmons. Bank OZK and Encore Bank also operate single offices in San Antonio.
The largest slice of the $167 billion-deposit market is held by USAA Federal Savings Bank of Phoenix, nearly $98.1 billion (58.52%).
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