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Red Ink Follows 2 Banks Into 2024

2 min read

Last year’s profitability struggles at two Arkansas banks spilled into 2024. Little Rock’s Encore Bank posted a $1.6 million loss in the first quarter, while Bank of England recorded a $1.5 million loss.

The red ink at the $3.9 billion-asset Encore Bank marked its third consecutive quarterly loss, while it was the ninth consecutive quarterly loss for Bank of England.

During that 27-month time frame, staffing at Bank of England was slashed from 1,254 in the first quarter of 2022 when the bank lost $966,000 to 641 as of March 31.

Along the way, the $415.7 million-asset lender’s network of BOE Mortgage loan production offices was cut and its 45-state footprint reduced to 24.

The falling headcount of staffers and quarterly losses at Bank of England include:

  • 1,195 and -$412,000 in 2Q 2022.
  • 1,112 and -$877,000 in 3Q 2022.
  • 968 and -$1.6 million in 4Q 2022.
  • 934 and -$2.2 million in 1Q 2023.
  • 921 and -$1.6 million in 2Q 2023.
  • 790 and -$3.2 million in 3Q 2023.
  • 663 and -$5 million in 4Q 2023.

Encore’s earlier losses were nearly -$1.3 million in 3Q 2023 and -$7.9 million in 4Q 2023.

Mulberry Move

Citizens Bank & Trust of Van Buren is expanding its Crawford County-only franchise eastward to Mulberry. The $522 million-asset lender, founded in May 1886, intends to open an office at 120 N. Main St.

Citizens purchased the former home of Elite K9 Academy in April for $60,000.

The project represents the bank’s first new branch since opening shop in Cedarville seven years ago.

The move by Citizens will make Mulberry a three-bank town.

The $55.5 million-deposit market is home to branches of Today’s Bank of Huntsville and Little Rock’s Bank OZK.

Today’s Bank holds $38.4 million in local deposits (69.16%). The bank entered the market in September 2016 by acquiring the insolvent Allied Bank of Mulberry in an FDIC-assisted acquisition with a negative bid of $6.14 million.

Bank OZK, which opened its Mulberry office in March 1997, holds deposits of $17.1 million (30.84%).

(Source: Federal Deposit Insurance Corp.)

Burlington Branch

The largest Arkansas bank will be setting up shop in Burlington, North Carolina, about 14 miles east of Greensboro.

The location at 166 Huffman Mill Road, a former office of Select Bank of Forest, Virginia, represents a new market and full-service branch No. 24 in North Carolina for Little Rock’s Bank OZK.

The Burlington move will increase the number of banks in the $1.8 billion-deposit market to a baker’s dozen.

The three largest shares of deposits in Burlington are held by Truist Bank of Charlotte, $433 million (23.90%); Wells Fargo Bank of Sioux Falls, South Dakota, $386 million (21.30%); and American National Bank & Trust of Danville, Virginia, $226 million (12.46%).

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