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Peeking inside the vault.

Peeking Inside The Vault

You've heard about State First Financial Corp. in Texarkana recently buying its second Texas bank -- Atlanta National Bank. Here's some info about the deal the dailies didn't tell you.

First of all, the transaction involves about $4.7 million broken down this way:

* Paying $1.8 million for 99.2 percent of the bank's shares (about $24 per share).

* Agreeing to pay a maximum of $1.25 million in additional money over the next 10 years, depending on the performance of the bank.

* Contributing $1 million in cash equity.

* Buying a drive-in facility for $650,000, which will save $138,000 in annual lease payments.

Factored somewhere in all of that is an unspecified debt owed by Atlanta Bancorp. to State First National. It was stamped "paid in full" from the sale.

The sellers also signed a three-year, non-compete clause regarding Cass County, Texas.

The Atlanta, Texas bank posted loan loss charge-offs of $2.36 million in 1988, $1.99 million in 1989 and $41,000 through the first six months of 1990.

As of June 30, 1990, non-performing loans at the $53 million asset bank fell to 6.5 percent. That's down from 9.1 percent in 1988.

State First Financial Corp. is the holding company of State First National Bank of Texarkana, American National Bank of Texarkana, Texas; and First National Bank of Ashdown.
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Publication:Arkansas Business
Date:Dec 31, 1990
Words:230
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