Arkansas
State Bank Department

State Banking Board

Meeting Minutes for July 19, 2001

(updated August 21, 2001)

 

A regular 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, July 19, 2001.  The following Board Members were present:  Chairman Phyllis Kincannon, Vice Chairman Judy Loving, Board Members David Bartlett, Bob Douglas and Gus Rusher.  Theodore C. Skokos, Sr. was absent.  Representing the State Bank Department were Commissioner Frank White, Deputy Commissioners Don R. Clark and Candace Franks, Management Project Analyst Cynthia Nixon, Administrative Assistants II Barbara Mahoney and Marilyn Myers.  Assistant Attorney General Tom Gay was present representing the Attorney General’s Office.  Mark White, representing the Governor’s office, was also in attendance.  No representatives from the media were present.

This was a regularly scheduled meeting of the State Banking Board.  Notice of the  meeting was mailed to each member of the State Banking Board on June 13, 2001.  The notice was also given to the news media in accordance with State law.

Commissioner Frank White opened the meeting.  Secretary Don R. Clark declared there was a quorum with five of the six Board Members present.  Commissioner White opened the meeting and asked the visitors and guests to stand and introduce themselves and who they represent.  He then turned the meeting over to Chairman Phyllis Kincannon.

Board Secretary asked Jack Grobmyer, Department accountant, to come forward and explain to the Board the “vendor form” required for AASIS to make expense reimbursement.  Each member was given a form to complete.

First on the agenda was consideration of the minutes of the April 19, 2001, regular meeting.  A motion was made by David Bartlett, seconded by Judy Loving, to approve the minutes as presented.  The motion carried and the Commissioner concurred.

Gus Rusher commented he was not receiving copies of the Board minutes.  The Secretary stated he would follow up and find out why.

Next was approval of expenses for the Board.  A motion was made by Judy Loving, seconded by David Bartlett, to approve the Board’s expenses.  The motion carried and the Commissioner concurred.

Item four on the agenda was consideration of a charter amendment by First State Bank, Conway, Arkansas, to adopt trust powers.  Richard Clark, President & CEO of FirsTrust, North Little Rock, represented the applicant.  He commented he was there to answer any questions and explained the reason for the charter amendment.  A motion was made by Bob Douglas, seconded by David Bartlett, to approve the charter amendment.  Motion carried and the Commissioner concurred.

Next on the agenda was a charter amendment by First Arkansas Valley Bank, Russellville, Arkansas, to change the corporate name of the bank to First Arkansas Bank.  A protest had been filed against the amendment by First Arkansas Bank & Trust, Jacksonville, Arkansas.  Roy Reaves, Chairman and Chief Executive Officer of First Arkansas Valley Bank, Russellville, had submitted a letter to the Commissioner asking the hearing on the application be postponed until the next Board meeting to provide time and opportunity to resolve the issue of similar bank names.  Discussion ensued on possible methods to give notice to banks and the general public concerning bank names.   The Commissioner stated the Department would come up with a procedure that the Board could possibly adopt as a policy to resolve this problem.  A motion was made by Bob Douglas, seconded by Judy Loving, to postpone action on the application as requested until the next Board meeting.  Motion carried and the Commissioner concurred.

Under other business, the Commissioner explained to the Board the reasons for increasing bank assessments.  A letter has been mailed to each state bank.  [See copy appendage to these minutes.]

The Commissioner commented the State Board of Finance had rolled $102.3 million of the tobacco settlement money back in to 170 banks at 3.65 percent, for a January, 2002, maturity. He noted  that both state and national banks who asked for funds were each given the same amount.

He informed the Board the Department is doing well, the move to new quarters is now complete.  Also, the overall economy is starting to show signs of weakening – the examiners are struggling to stay on top of this. Gus Rusher stated this is noticeable nationwide.  Judy Loving commented in her area they are seeing a large increase in bankruptcies.  David Bartlett stated he felt problem banks should be contributing more to their regulatory agency as they take up more time and expense.

The Secretary informed the Board  they are no longer required to submit an annual report and mission statement to the Arkansas Legislative Council.  During the 2001 Legislative Session, Act 221 repealed Act 181 of 1997, effective February 14, 2001.

With no further business the meeting was adjourned.