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Allied Bank, Mulberry, Arkansas Tier 1 Capital 1.8%

Fifth FDIC-Insured Institution to Fail in the Nation This Year

The five branches of Allied Bank, Mulberry, Arkansas, were closed with Today's Bank, Huntsville, Arkansas, to assume all of the deposits. Established March 4, 1902. The bank originally had nine locations, Alma, 3 in Little Rock, Mansfield, 2 in Mulberry, Ozark, Van Buren. As of June 30, 2016, Allied had 40 full time employees. In 2012, the bank had 57 full time employees. As of June 30, 2015, they had five offices: Alma, Little Rock, Mansfield, Mulberry, Ozark. Tier 1 Capital as of June 30, 2016 was 1.8%

Allied Bank saw its delinquencies increase to more than $5.13 million as of June 30. The bank incurred a $4.495 million loss in the first half of 2016, more than double the loss the bank took last year. Capital equity fell critically low to $1.321 million in June, putting the capital ratios below the threshold for bank closure.

In July 24, 2015, U.S. Bankruptcy Court Judge Ben Barry orders the liquidation of Acme Holding Co., the parent company of Allied Bank of Mulberry.

(In billions, unless otherwise)

Non-current loans

2006 $561,000
2007 0
2008 $118,000
2009 $150,000
2010 $4.8
2011 $7.0
2012 $7.5
2013 $5.6
2014 $5.1
2015 $6.3
2016 $5.1

(June 20, 2016)

Charge Offs

2006 -$3,000 ($32,000 loans to individuals), -$29,000 1-4 family, -$6,000 commercial/Ind.)
2007 $24,000 ($18,000 loans indiv., $3,000 commercial/industrial, $3,000 1-4 family)
2008 $454,000 ($185,000 loans indiv., $121,000 constr./dev.,$101,000 Com/Ind., $45,000 1-4)
2009 -$94,000($35,000 1-4 family, $-$87,000 loans indiv., -$41,000 com/Ind.)
2010 $2.1 ($2.0 commercial/industrial, $128,000 1-4 family)
2011 $712,000 ($320,000 loans indiv., $152,000 1-4 family, $32,000 nonfarm, $5,000 comm.)
2012 $1.0 ($848,000 loans indiv., $472,000 construct/land., $130,000 1-4 fam.,-$419,000 comm/ind.)
2013 $2.2 ($805,000 nonfarm/nonres., $728,000, comm/ind., $514,000 loans indiv., $185,000 1-4)
2014 -$91,000 ($162,000 loans indiv., -$180,000 nonfarm/nonres, -$51,000 comm/ind., -$34,000 const./loans
2015 -$1.8 ($1.1 comer/industrial, $543,000 1-4 family, $116,000 farmland, $39,000 loans indiv. $60,000 const./loans)
2016 $3.0 ($2.5 commercial/industrial, $547,000 const./land, $10,000 1-4 family, -$58,000 nonfarm/nonres., -$2 loans to individual)

Construction and Land, 1-4 family multiple residential, Multiple Family Residential, Non-Farm Non-Residential loans (non-owner occupied).

Profit

2006 $1.4
2007 $1.9
2008 $1.8
2009 $1.7
2010 $764,000
2011 -$1.6
2012 -$3.5
2013 -$4.9
2014 -$1.0
2015 -$2.2
2016 -$4.5

Net Equity

2006 $12.3
2007 $13.5
2008 $14.6
2009 $15.5
2010 $18.0
2011 $16.4
2012 $13.6
2013 $8.9
2014 $8.1
2015 $5.8
2016 $1.3

(June 30, 2016)

As of June 30, 2016, Allied Bank had approximately $66.3 million in total assets and $64.7 million in total deposits. In addition to assuming all of the deposits of the failed bank, Today's Bank agreed to purchase essentially all of the failed bank's assets.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $6.9 million.

FDIC Press Release:
https://www.fdic.gov/news/news/press/2016/pr16082.html

List of Bank Failures:
http://www.fdic.gov/bank/individual/failed/banklist.html

Leasing News Bank Beat:
http://www.leasingnews.org/Conscious-Top%20Stories/Bank_Beat.htm

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.