DECATUR — Decatur State Bank will have a new owner if the Federal Reserve Board approves.
Mathias Bancshares, owner of First State Bank of Northwest Arkansas, wants to purchase all shares of Decatur State Bank from owner Peterson Holding Company.
The holding company owns all the stock in Decatur State Bank and Grand Savings Bank. Decatur State Bank is in Decatur with branches in Siloam Springs and Gentry. Grand Savings Bank is in Grove, Okla., and has a branch in Jay, Okla.
The proposal only deals with Decatur State Bank, leaving all shares of Grand Savings Bank to Peterson Holding Company.
The holding companies came to an agreement April 12 and anticipate a closing date in the next three to four months. Terms of the proposal were not released.
Sam Mathias, chairman and president of Mathias Bancshares, said in a news release he intends to keep thebank staff intact and customers should not notice many changes in the transition.
Mathias declined to comment further Monday. Larry Olson, First State Bank president, and Mark Londagin, Decatur State Bank president, did not return calls to their offices Monday.
Decatur State Bank fell under federal oversight Oct. 27, 2011, but that should not slow down the sale, said David Barr, Federal Deposit Insurance Corp. spokesman.
“The order does go over with the new organization and the new owner will have to make sure they comply with the order,” he said.
He said the Federal Reserve will have to approve or denythe request because the holding company is attempting the purchase. If one bank was buying another, the FDIC would make the final decision.
Barr said the FDIC acts as a consultant in deals involving holding companies. The bank fell under federal oversight because of shrinking capital and increased losses. The consent order states the bank must add $6.13 million for possible loan losses.
The FDIC and the bank agree on the order that states the bank does not admit or deny any charge of unsafe or unsound practices.
Decatur State Bank’s most recent FDIC report, the fourthquarter of 2011, showed the bank had a $12.69 million loss and $6.47 million capital. The bank had $19.16 million in capital a year earlier and $7.02 million a quarter earlier.
The Dec. 31 filing showed the bank had $17.6 million in loans seriously past due, a slight improvement from the $18.3 million it reported Sept. 30. Decatur State Bank had total assets of $165 million as of Dec. 31 and First State Bank of Northwest Arkansas had total assets of $82 million.
Mathias Bancshares is a one-bank holding company owning 100 percent of First State Bank of Northwest Arkansas. The bank’s headquarters are in Huntsville, with a branch in Fayetteville. The holding company would retain a separate charter for Decatur State Bank and continue operating under that name if the Federal Reserve approves the deal. First State Bank was established July 26, 1991.
News, Pages 1 on 04/25/2012