Wednesday, March 17, 2010


Last Friday, we reported that Conway-based Home Bancshares acquired the assets and deposits of Orlando, Florida-based Old Southern Bank.

Full terms of the FDIC-assisted deal were not disclosed, but local reports provide a few new details.

From CFNews Channel 13, a reporter notes that Old Southern had nearly $380 million in assets and 1,700 accounts. “Centennial paid a one percent premium for each account,” according to the story.

It further stated that with the acquisition, Centennial will top $3 billion in assets.

The Orlando Sentinel newspaper reported that as many 300 Old Southern investors lost “nearly $60 million in the bank's demise.”

There had apparently been a boardroom blow-up in the past year as the bank’s financial woes became public.

Also, there was a last-minute attempt to raise about $45 million in capital to satisfy federal regulators and stave off the bank’s closure. For unknown reasons, that effort did not satisfy bank regulators.