The acquisition of Little River Bancshares Inc. marks a departure from past means of exchange for First Community Bancshares Inc. of Batesville. The deal closed Monday.
“This is our first stock-swap transaction,” said Dale Cole, First Community’s chairman and CEO.
FCB is issuing 2,922 shares to acquire Little River’s $31.5 million-asset bank. The value of that stock is about $2.24 million ($767 per share).
First Community used cash to buy Missouri’s Goodman State Bank for $3.1 million in July 2008. The same goes for its February 2010 purchase of the Mountain Home branch of Community First National Bank of West Plains, Missouri.
This time, First Community is folding in rather than buying out investors in the parent company of Little River Bank of Lepanto (Poinsett County).
Little River also will be folded into the $1.1 billion-asset First Community franchise, which includes two branches in neighboring Craighead County.
The roster of largest investors with a stake in Little River is dominated by members of the extended Portis family:
- Henry Watkins III of Lepanto, 17.8 percent, worth about $399,007;
- Danette P. Lawrie of Lepanto, 17.74 percent, worth about $397,662;
- Juliet Romano of Seattle, 15.88 percent, worth about $355,968;
- Dannal Perry of New Orleans, 15.64 percent, worth about $350,588;
- Hadley Arnold of Memphis, 10.85 percent, worth about $243,215;
- Julanne Portis of West Memphis, 9.93 percent, worth about $222,592; and
- Benjamin Perry of West Memphis, 9.48 percent, worth about $212,505.
The year-end high-water mark for total assets at Little River Bank was nearly $55.4 million in December 2004.
The bank has struggled to turn a profit since 2008. Only two of the past eight years have ended in the black for Little River Bank.
During 2008-15, the lender generated a loss of $332,000. The first three quarters of 2016 produced a $165,000 loss.
First Community, a member of the De Novo Class of 1997, will celebrate its 20th anniversary in August.
Little River Bank, Lepanto
Total Assets: $31.5 million
Net Income: -$165,000
Equity Capital: $4.4 million
Staff: 9 at one full-service location in Lepanto.
(As of Sept. 30)
| Total Assets | Equity Capital | Net Income | |
| 2015 | $36,989 | $4,325 | -68 |
| 2014 | $38,122 | $4,301 | -55 |
| 2013 | $41,801 | $3,882 | -$62 |
| 2012 | $43,862 | $5,053 | $92 |
| 2011 | $42,577 | $4,907 | -$56 |
| 2010 | $43,957 | $5,032 | -$101 |
| 2009 | $48,290 | $5,383 | $911 |
| 2008 | $53,048 | $4,876 | -$993 |
| 2007 | $50,141 | $5,748 | $606 |
Source: Federal Deposit Insurance Corp. All dollars in thousands.
Fewer & Fewer
The Little River sale will reduce the head count of the smallest banks in Arkansas from seven to six.
The remaining field of sub $50 million-asset banks in Arkansas includes:
- The $15.6 million-asset Community State Bank of Bradley (Lafayette County),
- The $37.8 million-asset First State Bank of Crossett,
- The $41.2 million-asset Farmers Bank of Hamburg,
- The $42.8 million-asset Bank of Bearden (Ouachita County),
- The $45.7 million-asset Merchants & Planters Bank of Clarendon and
- The $47 million-asset Forrest City Bank (See Forrest City Bank Soon To Suit Up in New Name).