Harrell Bancshares Inc. of Rogers recently landed $12 million from investors.
“That was some sub debt we issued,” said Jonathan Harrell, president and CEO of Harrell Bancshares Inc., parent company for Generations Bank.
The money will be used “to bolster up our capital levels, just due to the current pandemic,” he said. Generations Bank’s assets as of June 30 were $602.4 million, and its net income through the first half of the year was $2.8 million.
The money raised also allows the bank to grow. It’s adding its 10th location in Bentonville by the end of the year.
Harrell said that the bank has been able to work “with all the borrowers in the heavily affected industries, … hospitality and services being the hardest hit.”
The bank will continue to work with those borrowers “and will do so as long as the regulators give us enough leeway to do so,” said Harrell, who is also chairman of the Arkansas Bankers Association.
“And that’s our plan in the foreseeable future.”
He said it wasn’t difficult raising the money during COVID-19.
Harrell Bancshares worked with Performance Trust Capital Partners LLC of Chicago, which offers financial and investment banking services for community financial institutions.
The sales commission was estimated at $300,000, according to Harrell Bancshares’ filing with the Securities & Exchange Commission.
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