Newspaper article THE JOURNAL RECORD

Commercial Bank Receives $6.5 Million Cash Infusion

Newspaper article THE JOURNAL RECORD

Commercial Bank Receives $6.5 Million Cash Infusion

Article excerpt

Commerical BankNA received a $6.5 million cash infusion Friday with the completion of an assistance agreement with the Federal Deposit Insurance Corp.

The FDIC provided $4.5 million to the bank and $2 million was invested by stockholders of the bank holding company.

As a result of the agreement, William M. Cameron and Lynda L. Cameron acquired 100 percent ownership of Commercial Bankstock Inc., a bank holding company that owns 100 percent of Commercial Bank, according to Bill Olcheski, a spokesman for the FDIC in Washington, D.C.

Key features of the assistance program are that the FDIC assumes none of the bank's assets and will have no further obligation.

After the entries are made to include the capital infusion, the bank will have approximately $24 million in assets, according to William L. Owens, president and chief executive officer.

Capital and reserves will be approximately $4.2 million and 14 percent of total assets. The primary capital to assets ratio will have been raised from 5.9 percent reported in March. Federal regulators generally require that capital be at least 6 percent of assets.

Approximately $2.3 million of a total of $3.4 million in non-accrual laons will be charged off.

"The entire $6.5 million will go into surplus, but we are charging off $2.3 million in loans and writing down other real estate owned for about $500,000," Owens said.

The bank will also take a $1 million charge off on its building.

Total loans after the entries are made will be about $9.7 million, Owens said. Deposits are currently $22 million.

For the year ended 1986, Commercial reported a net loss of $2.98 million. At the end of the year, the bank had assets of $27.3 million, approximately 10.1 percent less than the previous year, according to a report by the Texas banking research firm Sheshunoff & Co. …

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