The sale of Twin Lakes Community Bank of Flippin (Marion County) marked the fourth Arkansas lender to change hands during 2015 for a book value multiple in the 1.34-1.45 range.
The $112 million-asset lender was purchased for $15.3 million cash by First National Bancorp Inc. of Green Forrest (Carroll County).
That price registered at about 1.42 times book.
Twin Lakes will operate alongside FNB’s $432 million-asset Anstaff Bank for a spell and will be merged at an undetermined time in the future.
The move expanded FNB’s four-county north Arkansas franchise into two new counties and pushed total assets beyond $500 million.
Twin Lakes broke the $100 million-asset threshold in early 2015, nine years after it opened for business back in February 2006.
During its nearly 10-year run, the bank lost about $987,000. Half of its fiscal years were profitable, though mostly marginal.
2011 was a year that saw the provision for loan losses at Twin Lakes climb and the red ink top $2.1 million.
A first-quarter loss of $119,000 became a $1.2 million loss in the second quarter, which was followed by a $500,000 loss in the third and a $300,000 loss in the fourth.
2015 was shaping up to be its strongest performance.
Through the first nine months of the year, Twin Lakes recorded net income of $941,000.
The bank built a 16.2 percent deposit-based market share in Marion County, second only to the 40.5 percent held by Arvest Bank of Fayetteville. Twin Lakes held nearly 5.8 percent of deposits in Baxter County, No. 6 among a field of 10 lenders.
The bank, the last lender based in Marion County, was established on the dormant charter of the Bank of Harrisburg (Poinsett County).
That charter became available courtesy of First National Corp. of Wynne, which bought the Bank of Harrisburg in a $14.9 million cash deal in 2005. The acquisition of the $68.3 million-asset lender represented a book value multiple of 2.3.
Twin Lakes Ownership
FNC, holding company of the $277 million-asset First National Bank of Wynne, owned the largest block of Twin Lakes Community Bank stock.
That 41.7 percent stake was worth more than $6.3 million in the First National Bancorp buyout.
Twin Lakes stockholders didn’t collect any dividends during the bank’s lifetime. Their payday came with the sale to FNB.
Sometimes held by a trust, limited partnership or individuals, seven of the largest shareholders in Twin Lakes are represented by:
- John Spence of Blakely, Georgia, 16,000 shares worth $521,300;
- Dane and Pamela Hudson of Flippin, 16,000 shares worth $521,300;
- Judy Loving of Yellville, chairman of Twin Lakes, 13,800 shares worth $449,600;
- Max Caldwell of Wynne, 12,592 shares worth $410,200;
- Jeff Gilbrech of Heber Springs, executive vice president and director at First National Bank of Wynne, 12,245 shares worth $398,900;
- Randy and Brenda Hopper of Flippin, 10,000 shares worth $325,800; and
- Fred Berry of Yellville, 10,000 shares worth $325,800.
Twin Lakes Community Bank, Flippin
Total Assets: $112.8 million
Net Income: $941,000
Loans: $100.4 million
Full-Service Locations: 3 (Flippin, Mountain Home and Norfork)
Staff: 32
| Total Assets* | Total Loans* | Net Income* | |
| 2014 | $99,428 | $84,929 | $630 |
| 2013 | $90,224 | $73,610 | $307 |
| 2012 | $82,057 | $61,632 | $70 |
| 2011 | $85,408 | $54,950 | -$2,159 |
| 2010 | $80,610 | $60,109 | $388 |
| 2009 | $66,810 | $58,264 | -$254 |
| 2008 | $60,738 | $53,913 | -$175 |
| 2007 | $40,119 | $34,400 | -$249 |
| 2006 | $26,335 | $21,495 | -$486 |
*In thousands. All information as of Sept. 30.