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One Bank, Heartland End 2017 with Loss

1 min read

Little Rock’s One Bank & Trust pushed its string of consecutive quarterly operational losses to 22 as of Dec. 31.

One Bank lost $1.5 million in the fourth quarter, extending its net loss for 2017 to more than $4.8 million. Time is growing short for a fiscal turnaround at the bank, led by Jerry Pavlas since the ouster of Scooter Stuart in September 2012.

At year’s end, One Bank was carrying more than $5.6 million in nonaccrual loans, with another $1.3 million 30-89 days past due.

Total equity capital has fallen to $6.9 million, with capital ratios at critical levels: tier one leverage ratio, 2.67 percent, tier one capital ratio, 3.85 percent and total capital ratio, 5.1 percent.

How critical?

Less than two months before regulators took it over in September 2016, Mulberry’s Allied Bank recorded tier one leverage ratio of 1.79 percent, tier one capital ratio of 2.7 percent and total capital ratio of 4 percent.

Little Rock’s Heartland Bank ended what is expected to be its final quarter of operations with a small profit: $77,000.

For the year, the $176 million-asset lender posted a loss of more than $13.7 million.

Heartland is carrying $18.5 million of nonaccrual loans, with $5.2 million added in the fourth quarter alone. Past due loans totaling $1.2 million are 30-89 days delinquent.

Under the fiscal care and ownership of Simmons Bank since a foreclosure auction in August, Heartland received a fourth-quarter capital infusion of $3.1 million. Simmons’ contribution boosted Heartland’s total equity capital to $9.7 million and restored its regulatory capital ratios.

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