LITTLE ROCK — First Federal Bancshares of Arkansas jumped 58 percent in the first quarter, outperforming the stock of every other public company in the state.
First Federal closed at $6.82 Friday, up $2.50 since its close on Dec. 30.
A $1,000 investment in First Federal on Dec. 30 was worth almost $1,580 on Friday.
First Federal operates in north-central and Northwest Arkansas, markets that have done relatively well recently, said Rick Massey, chairman of the board of the Harrisonbased bank.
“There have been some substantial losses for banks up there [in recent years], primarily based on real estate lending,” said Massey, who is also a managing member of Bear State Financial Holdings LLC, which owns 95 percent of First Federal.
Little Rock-based Bear State invested about $55 million in First Federal last year.
“We’re starting to see some green shoots, as that part of the state recovers,” Massey said. “It is not a miracle; it’s still slow. In general, we see it doing a lot better.”
First Federal is the only publicly traded bank with heavy exposure in Northwest Arkansas, Massey said. Other public banks with a presence there operate primarily outside Northwest Arkansas.
“If I’m an investor and I like the way Fayetteville, Bentonville and Harrison are coming out of [the recession], then I may want to bet on it,” Massey said.
First Federal has a large “short position” — a bet that a stock is going to decline — for the next 130 days, Massey said. So some of those investors may be buying First Federal’s stock to try to reduce their risks.
Little Rock-based retailer Dillard’s Inc. had the secondbest performing stock, rising 40 percent in the first quarter. Since Dillard’s hit a low of $2.50 on Nov. 21, 2008, it’s stock has multiplied by 25 times.
“Dillard’s has been on a tear over the past three years,” said Chris Harkins, senior vice president and managing director of Delta Trust Investments Inc. in Little Rock. “Dillard’s continues to evaluate store locations along with product mix that has handsomely rewarded shareholders.”
Twelve of the 16 public companies were up for the quarter.
J.B. Hunt Transport Services Inc. of Lowell and Acxiom Corp. of Little Rock each improved by 20 percent for the quarter.
J.B. Hunt climbed along with the improving transportation sector, Harkins said.
Excluding one-time items, Acxiom earned 22 cents a share in the quarter that ended Dec. 31. Scott Howe, Acxiom’s chief executive officer, also disclosed a new business plan in January, saying the company would improve the efficiency of its services, increase accountability, profitably serve its largest international markets, and develop new products and services.
Tyson Foods Inc. of Springdale had the poorest quarter of any of the 16 companies, losing 7 percent.
Tyson’s earnings were affected by the rising cost of feed and transportation expenses, Harkins said.
Tyson was up almost 20 percent in 2011, Harkins said.
Business, Pages 28 on 03/31/2012