Pinnacle, Central Bank Combo Builds Assets To $200M

There are a lot of moving parts to the acquisition equation in the pending merger of Pinnacle Bank of Rogers and Central Bank of Little Rock.

A banking insider best-guess estimate pegs the valuation at about $3.4 million.

That’s the stock-cash consideration to purchase Pinnacle’s parent company, Pinnacle Bancshares Inc. The proposed transaction would create a $206 million-asset Central Bank with a branch in Rogers in addition to a pair of Little Rock locations.

Since opening in February 2007, Central Bank has produced total net income of $2.1 million.

The biggest stain on its nearly 10-year profit picture occurred in 2009 when $5.4 million was added to its provision for loan losses. The move preceded charge-offs of $4.7 million during 2010.

Among its 2010 licks was a $2.5 million participation in a loan secured by stock in First Southern Bank of Batesville that went bust from the Kevin Lewis special improvement district bond fraud scheme.

But back to the pending transaction using $3.4 million as our guide.

The big three Pinnacle shareholders are listed below:

• Thomas Garrison of Fayetteville, 16.07 percent worth $546,000
• The Hugh McClain Trust of Mountain Home, 6.34 percent worth $215,000
• Cross County Bancshares Inc. of Wynne, 5.32 percent worth $180,000.

Other Pinnacle investors include the following:

• Clarence Guinn of Rogers, 3.73 percent worth $126,000
• Alan Sharp of Bentonville, 2.39 percent worth $81,000
• David Estes of Quitman, 2.17 percent worth $73,000
• Bruce Loftin of Springdale, 1.48 percent worth $50,000
• Wade Ruckle of Maumelle, 1.22 percent worth $41,000
• Buddy Vernetti of Bentonville, 1.12 percent worth $38,000.

Common Ownership
Some of those Pinnacle investors also are stakeholders in Central Bank.

The Ruckle family holds a 4.6 percent position. Wade Ruckle is president and CEO of Central Bank.

David Estes, CEO of First State Bank of Lonoke, owns 1.3 percent. The Loftin family has 0.3 percent.

Cross County Bancshares, parent company of Cross County Bank of Wynne, holds a 9.2 percent stake, the biggest of the common owners. Other bank holding companies have a piece of Central Bank too.

• Lonoke Bancshares Inc., parent company of First State Bank, 7.3 percent
• Southeast Financial Bankstock Corp., parent company of McGehee Bank, 4.9 percent
• Carlson Bancshares Inc., parent company of Fidelity National Bank of West Memphis, 2 percent.

Central Bank, Little Rock
Total Assets: $117.8 million
Net Income: $666,000
Equity Capital: $17.8 million
OREO: $644,000
Staff: 14
Locations: Two full-service locations in Little Rock
(As of Sept. 30)