No Deal in Proposed Decatur State Bank Sale
The would-be sale of Decatur State Bank to Mathias Bancshares Inc. of Springdale is no more.
Sam Mathias, owner of his namesake bank holding company, and Larry Olsen, president and chief executive of MBI’s First State Bank of Northwest Arkansas, couldn’t be reached for comment. The same goes for Mark Londagin, president and CEO of Decatur State Bank, which has been under regulatory sanction with the Federal Deposit Insurance Corp. for nearly a year.
The $134.2 million-asset bank lost nearly $13 million during 2011, and $3.1 million through the first six months of 2012.
The proposed transaction was positioned to be a sale involving zero consideration. However, the deal fell to less than zero after the bank’s holding company invested an additional $1.1 million to replenish capital to $2.9 million.