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.