Arkansas
State Bank Department

State Banking Board

Meeting Minutes for January 24, 2002

(updated March 1, 2002)

 

A special meeting of the State Banking Board was held in the conference room of the Arkansas State Bank Department, 400 Hardin Road, Suite 100, Little Rock, Arkansas, at 10:00 a.m. on Thursday, January 24, 2002.  All Board Members were present being the following:  Chairman Phyllis Kincannon, Vice Chairman Judy Loving,  David Bartlett, Bob Douglas, Gus Rusher, and Theodore C. Skokos.   Representing the State Bank Department were Commissioner Frank White, Deputy Commissioners Don R. Clark and Candace Franks, Commissioned Senior Examiner & Financial Analyst Richard Plotkin, Management Project Analyst Cynthia Nixon, and Administrative Assistant II Barbara Mahoney.  Assistant Attorney General Tom Gay was present representing the Attorney General’s Office.   Lynn Perkins from Bushman Court Reporting was the recording reporter for the applicants.  David Smith, reporter for the Arkansas-Democrat Gazette was present.

            State Bank Commissioner, Frank White,  called this special meeting of the State Banking Board.  Notice of the special meeting was sent by regular mail to each member of the State Banking Board on December 10, 2001.  The notices were also given to the news media in accordance with state law.

            Commissioner Frank White opened the meeting.  Secretary Don R. Clark declared a quorum, as all Board Members were present. Commissioner White asked the visitors and guests to stand and introduce themselves and whom they represent.  He then turned the meeting over to Chairman Phyllis Kincannon.  She announced the first order of business was election of a new Chairman and Vice-Chairman for the coming year of 2002.  The Secretary explained the State Banking Board’s precedent  of annually rotating the chairmanship and his records reflect the next Chairman would be Judy Loving and Vice-Chairman Theodore C. Skokos.    A motion was made by David Bartlett, seconded by Gus Rusher, to elect Judy Loving and Theodore C. Skokos Chairman and Vice-Chairman for 2002.  The motion passed unanimously and the Commissioner concurred.

            Next on the agenda was consideration of the minutes of the Special Meeting of November 29, 2001.  A motion was made by David Bartlett, seconded by Theodore C. Skokos, to approve the minutes as presented.  Motion carried and the Commissioner concurred.

            Next was approval of expenses for the Board.  A motion was made by Gus Rusher, seconded by Bob Douglas, to approve the Board’s expenses.  The motion carried and the Commissioner concurred.

            Next was item five on the agenda being an application by Arvest Bank, Fayetteville, Arkansas, to merge Arvest Bank, Fort Smith, Arkansas, with and into Arvest Bank, Fayetteville, Arkansas.  Randy Dennis of DD & F Consulting Group and Karla Payne, Senior Vice President of Arvest Bank, Fayetteville, Arkansas, represented the applicant.  Mr. Dennis stated they were also representing the next four applications on the agenda and spoke in general about each of the applications and how they fit into the Arvest Bank plan.  Karla Payne stated she was present for any questions the Board might have.  She commented that each of the branches will maintain local board representation and local management, as far as the general public is concerned there would be no noticeable change.  A motion was made by Gus Rusher, seconded by Theodore C. Skokos, that the application be approved.  Motion carried and the Commissioner concurred.  David Bartlett asked the Commissioner about the examinations of out-of-state banks.  Commissioner White stated the Department would examine these banks.  He noted this is our policy now; however, it may become necessary to change due to the Department’s workload.

            Next was consideration of an application by Arvest Bank, Fayetteville, Arkansas, to merge First Arvest Bank, Siloam Springs, Arkansas, with and into Arvest Bank, Fayetteville, Arkansas.  A motion was made by Bob Douglas, seconded by Gus Rusher, to approve the application.  Motion carried and the Commissioner concurred.  Next was consideration of Arvest Bank, Fayetteville, Arkansas, to merge Bank of Bentonville, Bentonville, Arkansas, with and into Arvest Bank, Fayetteville, Arkansas.  A motion was made by David Bartlett, seconded by Bob Douglas, to approve the application.  Motion carried and the Commissioner concurred.

            Next was consideration of an application by Arvest Bank, Fayetteville, Arkansas, to merge Arvest State Bank, Tulsa, Oklahoma, with and into Arvest Bank, Fayetteville, Arkansas.  A motion was made by Gus Rusher, seconded by David Bartlett, to approve the application.  Motion carried and the Commissioner concurred.

            Next was consideration of an application by Arvest Bank, Fayetteville, Arkansas, to merge Arvest Bank, Joplin, Missouri, with and into Arvest Bank, Fayetteville, Arkansas.  A motion was made by Bob Douglas, seconded by Theodore C. Skokos, to approve the application.  Motion carried and the Commissioner concurred.

            Next on the agenda was consideration of an application by Bank of Mulberry, Mulberry, Arkansas, to merge Bank of Mansfield, Mansfield, Arkansas, with and into Bank of Mulberry, Mulberry, Arkansas, the resulting bank to be named United Bank, Mulberry, Arkansas.  Alex Golden, President of the Bank of Mulberry, represented and spoke for the application.  He stated their merger plans were moving faster than expected and so far merger plans were well accepted in the Mansfield community.  Gus Rusher asked if the main location would continue to be located in Mulberry and whether they have a branch in Little Rock.   Mr. Golden stated this was correct.   A motion was made by David Bartlett, seconded by Gus Rusher, to approve the application.  Motion carried and the Commissioner concurred.

            Next was consideration of a proposed regulation for timely reports of county or regional industrial development corporations.  This regulation was tabled at the last State Bank Board meeting November 29, 2001.  Department Counsel, Candace Franks, stated letters were sent to all concerned and there had been no response.  She explained the regulation and stated  the Department has been experiencing problems receiving timely quarterly and annual reports.   Theodore C. Skokos  asked if the two individuals that were here last meeting had been sent notice this regulation would be heard at this meeting?  He just wanted to be sure they had been notified and the Board had exercised an overabundance of caution.  Department Counsel, Candace Franks, stated they had been notified at least twice.  A motion was made by David Bartlett, seconded by Gus Rusher, to approve the proposed regulation.  Motion carried and the Commissioner concurred.

            At this point Commissioner White commented on the economy.  He acknowledged David Smith of the  Arkansas-Democrat Gazette.  He stated the Bank Department does not publish or make public names of regulatory oversight banks; however, the Federal Reserve Bank and Federal Deposit Insurance Corporation do under certain conditions.  He stated there are more oversight banks now than in the last ten years.  The timber industry has been affected by the ice storm in 2000; logging contractors are feeling the pressure due to mill shutdowns.  Tyson’s is in a soft chicken market, which affects the growers.  This year’s agriculture segment of the economy will be affected by the government’s farm program.  He noted the agriculture community is stable now; farmers are able to live but are having a hard time buying and replacing new equipment.  He commented the Department is monitoring this closely, there are no banks in trouble at this time; however,  there may be if we don’t receive government payments.   Stated he met with federal counterparts several weeks ago and at this time they see no bottom to the problem.  The longer it goes the harder it will be on everyone.  Overall, things in the industry haven’t changed much since last Board Meeting.  We are now waiting on year-end reports.

            Commissioner commented the Department recently had a staff meeting and discussed out-of-state deposits.  They are down approximately one and one-half billion.  Currently out-of-state banks are selling branch offices.   Many are in the process of consolidation.  Assets in 142 state chartered banks now total $19.4 Billion, 40 national banks currently have $8.1 Billion, state banks being approximately $11 Billion more than national banks.  Denovo banks in the last five years have grown to over $1.2 Billion in total deposits and are doing well.

            Theodore C. Skokos  commented that due to buyouts and mergers, Arkansas is in a good situation now.  Commissioner White stated we feel good about the scenario of Arkansas State Banks.  Banks are getting their acts together.  The Department is an advocate for state chartered banks and we are striving to help them with their problems.  They are cooperating with us and we do not expect to lose a bank at this time.  David Bartlett commented the state sales tax on the tourism industry is starting up.  Many Arkansans are not flying; therefore, they are staying home and traveling Arkansas which is good for our state.  He also noted our tolerance for non-compliance has gone to zero.  Problems have to be fixed or the regulators will do the job.

            On personnel issues, the Commissioner commented we only lost six examiners last year, have hired two new trainees, one for Little Rock and one for Jonesboro.  Fayetteville is still a problem.  Travel appears to be the main issue.  In spite of this the Department is operating very efficiently.

            Chairman Judy Loving commented a lady from Kentucky told her we have by far the best web sight.

            A motion was made by Phyllis Kincannon, seconded by Gus Rusher, to adjourn.  Motion carried and the Commissioner concurred.