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More Losses Precede Sale of One Bank

2 min read

Little Rock’s One Bank & Trust extended its string of quarterly operational losses to 23, heading toward a pre-insolvency sale later this year.

The $266.2 million-asset lender recorded a $733,000 loss through the first three months of 2018. That reduced the bank’s equity capital to $5.9 million, which in turn reduced One Bank’s capital ratios:

  • Tier one leverage ratio, 2.49 percent.
  • Tier one capital ratio, 3.62 percent.
  • Total capital ratio, 4.87 percent.

Behind the bank’s eroding capital are $3.8 million in nonaccrual loans and nearly $3 million in loans 30-89 days past due and still accruing interest.

One Bank’s backstop is nearly $2.9 million in loan loss reserves and whatever can be recouped from real estate recovered in association with bad loans.

The bank is carrying property valued at $3.7 million in its OREO portfolio.

One Bank finally is drifting into the arms of a buyer after a line of would-be suitors said no and efforts to recapitalize through a stock offering went nowhere.

First National Bank of Paragould signed an agreement to acquire the bank in a deal expected to close before year’s end. Last month’s announcement didn’t include any details on the pending transaction.

One Bank’s five Little Rock locations and one North Little Rock branch will provide First National with its first operations in Pulaski County.

The nearest FNB branch to Little Rock is in Heber Springs, a branch that opened in December 2014.

The $1.3 billion-lender began expanding outside its northeast Arkansas base during 2014-15, opening locations in Rogers (October 2014), Bentonville (February 2015), Fayetteville (May 2015), Springdale (August 2015) and Johnson (October 2015).

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