Arkansas
State Bank Department
State Banking Board
Meeting Minutes for
March 21, 2002
(updated April 30, 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, March 21, 2002. The following Board Members were present: Chairman Judy Loving, Vice Chairman Ted C. Skokos [by phone], Bob Douglas, Charles Mazander, and Gus Rusher. David Bartlett was absent. Representing the State Bank Department were Commissioner Frank White, Deputy Commissioners Don R. Clark and Candace Franks, Management Project Analyst Cynthia Nixon, and Administrative Assistant II Marilyn Myers. Also in attendance was Mark White, the Department’s liaison to the Governor’s office. No one was present representing the Attorney General’s Office. Lynn Perkins from Bushman Court Reporting was the recording reporter for the applicants. David Quinn and Kelly Wiese from the Associated Press were 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 January 15, 2002.
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 was
present with four members in attendance and one by phone. Commissioner White asked the visitors and
guests to stand and introduce themselves and whom they represent. He then turned the meeting over to Chairman
Judy Loving.
Chairman Loving announced the first order of business was
consideration of the minutes of the January 24, 2002, Special Meeting. A motion was made by Gus Rusher, seconded by
Bob Douglas, 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 Bob Douglas, seconded
by Gus Rusher, to approve the Board’s expenses. The motion carried and the Commissioner concurred.
Next on the agenda was consideration of an application by
Arvest Bank, Fayetteville, Arkansas, to merge Arvest Bank, Rogers, Arkansas,
with and into Arvest Bank, Fayetteville, Arkansas. Randy Dennis of DD & F Consulting Group of Little Rock and
Bob Kelly, Executive Vice President and Director of Arvest Bank, Fayetteville,
represented and spoke for the application.
Mr. Dennis stated they were also representing the next four merger
applications on the agenda and spoke in general about each of the applications
and how they fit into the Arvest Bank plan.
Mr. Dennis commented that each of the branches will maintain local Board
representation and local management, and as far as the general public is
concerned there would be no noticeable change.
A motion was made by Gus Rusher, seconded by Charles Mazander, to
approve the application. The motion
carried and the Commissioner concurred.
At this point, Commissioner White introduced Charles
Mazander, the newly appointed member of the Board. The Board welcomed Mr. Mazander to the Board.
Next was consideration of an application by Arvest Bank,
Fayetteville, to merge Arvest Bank, Shawnee, Oklahoma, with and into Arvest
Bank, Fayetteville, Arkansas. A motion
was made by Bob Douglas, seconded by Gus Rusher, to approve the
application. The motion carried and the
Commissioner concurred.
Next was consideration of an application by Arvest Bank,
Fayetteville, to merge Arvest Bank, Norman, Oklahoma, with and into Arvest
Bank, Fayetteville, Arkansas. A motion
was made by Charles Mazander, seconded by Gus Rusher, to approve the
application. Motion carried and the
Commissioner concurred.
Item seven was consideration of an application by Arvest
Bank, Fayetteville, to merge Arvest Bank, Duncan, Oklahoma, with and into Arvest
Bank, Fayetteville, Arkansas. A motion
was made by Gus Rusher, seconded by Charles Mazander, to approve the
application. Motion carried and the
Commissioner concurred.
Item 8 was consideration of an application by Arvest
Bank, Fayetteville, to merge WestStar Bank, Bartlesville, Oklahoma, with and
into Arvest Bank, Fayetteville, Arkansas.
A motion was made by Gus Rusher, seconded by Ted Skokos, to approve the
application. Motion carried and the
Commissioner concurred.
Bob Kelly commented the Arvest Bank group was glad to be
centered in Arkansas.
Secretary to the Board, Don R. Clark, gave a report to
the Board of the findings of the last Legislative joint audit dated June 30,
2001. There were no negative comments
by the auditor.
Commissioner White commented about the condition of the
Department and the general state of banking in Arkansas. He noted the Department had lost another
examiner and we now have sixteen [16] banks on the Department’s oversight list. Overall, several banks are having management
problems and this is creating a strain on the examining staff. They are staying on top of the situations
and attending more Board meetings along with the Federal Deposit Insurance
Corporation and Federal Reserve. After
ten years of prosperity, everyone has to be diligent in making and collecting
loans. Bankruptcies are at a very high
level due in part to credit cards and consumer loans. Mr. Rusher noted
consumers may get into a problem[s] overnight but it takes a long time
to work out. Commissioner White stated
the Arvest Bank mergers created the largest state chartered bank, the only
state bank with substantial out-of-state holdings. He noted he is proud to have them as part of the State system.
Mr. White personally invited each Board Member to attend
the Department’s open house during the Bank Convention’s “Day With the
Commissioner”.
A general discussion ensued concerning Pulaski County
Industrial Development Corporation. The
Commissioner stated they may have moved to Florida. He noted he had written a letter asking them to submit certain
information to this office by May 31, 2002.
The Commissioner stated PCIDC is presently not in compliance with the
requirements of filing proper statements of condition. He noted PCIDC is very difficult to deal
with, being a constant battle. As soon
as we receive their response the Department plans to take necessary action to
enforce factual reporting requirements.
At this time we can find no tangible evidence of authority for this
Department to force them to comply with the intent of the law to stimulate the
economy.
A motion was made by Bob Douglas, seconded by Gus Rusher,
to adjourn. Motion carried and the
Commissioner concurred.
