7 Ark. lenders still indebted to Treasury after TARP relief

In the aftermath of the 2008 financial meltdown, seven Arkansas lenders remain under the umbrella of the U.S. Treasury’s Troubled Asset Relief Program, having collectively received more than $126 million through the federal Capital Purchase Program, Arkansas Business reports.

The institutions – Southern Bancorp, Rogers Bancshares, Chambers Bancshares, OneFinancial Corp., White River Bancshares, Community First Bancshares and Riverside Bancshares – have between $1.1 million and $33.8 million in government-supplied capital, as of Sept. 30, according to the U.S. Treasury.

Arkansas Business’ review of Treasury records discovered two of the lenders had missed more than 10 quarterly payments, while two others hadn’t missed a single payment and were current with the government.

The report says the disposition of the financial institutions is as varied as their repayment history and respective exit strategies from the program. Some TARP participants are in the throes of severe financial distress, while some are merely capital-challenged.
Rogers Bancshares, for example, filed bankruptcy in July and its debt to the government has been deemed uncollectible.

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