Ford Financial to buy Metropolitan National Bank for $16 million

Metropolitan Bank (file photo)
Metropolitan Bank (file photo)

Rogers Bancshares, parent company of Metropolitan National Bank in Little Rock, has agreed to allow Ford Financial Fund II, LP of Texas to purchase the bank's stock for $16 million and invest in its recapitalization, Metropolitan officials announced Friday.

As a result of the purchase, and eventual recapitalization of the bank, Rogers Bancshares plans to voluntarily file for Chapter 11 bankruptcy Friday.

Rogers Bancshares' bankruptcy filing will not affect Metropolitan nor result in any layoffs at the bank, said Lunsford Bridges, president and chief executive officer of Metropolitan.

"This is a great solution for us," he said. "It's a great opportunity for Metropolitan."

Bridges said Ford Financial is purchasing Metropolitan by buying its stock for $16 million. He said he did not know how much Ford Financial will spend to recapitalize the bank.

For the past few years, Metropolitan has been burdened with real-estate loans in Northwest and central Arkansas, and Texas. Since 2008, the bank has been sanctioned three times by the federal Office of Comptroller of the Currency.

The sanctions have ordered the bank to raise its capital ratio to 8 percent and its risk-based capital ratio to 12 percent.

As of March 2013, its current capital ratio is 6.30 percent and its risk-based ratio is 10.85 percent.

Bridges said the recapitalization of the bank will help the bank meet the minimum capital requirements set by federal regulators.

He said Gerald J. Ford and Carl B. Webb, the principals of Ford Financial will become members of Metropolitan's board of directors when the transaction is finalized.

Read Saturday's Arkansas Democrat-Gazette for more details.

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