First Federal Bancshares Cash Stacks Up

Harrison’s First Federal Bancshares of Arkansas Inc. on Nov. 14 said its cash and cash equivalents for the third quarter ended Sept. 30 were up 326.1 percent to $37.7 million.

Company officials said the massive cash increase was due to large numbers of refinanced loans and the calling of some securities. Deposits are also up, and the firm has paid off a substantial amount of federal home loan bank advances.

That, and a $15.3 million jump in prepaid expenses and other assets, helped curb a 2.3 percent drop in the company’s assets.

First Federal assets for the third quarter fell from $713.9 million to $697.7 million. That $16.2 million drop was due to a decrease of 27.8 percent, or $51.3 million, in investment securities held to maturity, the company said. A 3.2 percent, or $16 million, decrease in net loans receivable also hurt.

Loan originations for the nine-month period ended September 30 consisted of $82.5 million in one- to four-member family residential loans, $2.1 million in multifamily residential loans, $16.8 million in commercial loans, $22.7 million in construction loans and $36.6 million in consumer installment loans, of which $16.1 million consisted of home equity loans and $12.1 million consisted of automobile loans.