Arkansas
State Bank Department

State Banking Board

Meeting Minutes for July 19, 2001

Appendages

(updated August 21, 2001)

Appendage #1 

July 18, 2001

 

 

 

 

TO THE CHIEF EXECUTIVE OF THE

 INSTITUTION ADDRESSED:

 

Dear Fellow Banker:

 

This past ten years your State Bank Department has expanded its examination process to include not only commercial banking, but also trust department activities, bank holding companies, compliance and CRA and beginning in early 1992 electronic data processing.  The Bank Modernization Act passed in 1999 authorizes new banking activities, which will further challenge our examination staff.

 

Throughout the 90’s banking in Arkansas has changed.  June 30, 1991, we had 173 state chartered banks – today 142.  The assets have grown from $10,166,000,000 to $18,724,000,000 as of 3-31-01.  Since the beginning of 1997 we have chartered 15 new banks and in the last three years we have had 8 banks relocate their charter to another city.  At the present time, we feel the majority of De Novo bank activity is over.

 

The bank department recently moved to new quarters to gain room for all our examiners, adequate training facilities and sufficient parking.  We have a good staff, but our turnover continues to be high.

 

The last assessment fee increase was December 31, 1991.  That fee schedule has carried us for ten years.  We experienced a $400,000 operating deficit our last fiscal year ending June 30, 2001. 

 

I have made a comprehensive review of current fees, fund balances, and operating expenses of the State Bank Department, including any anticipated changes or consolidation of the Arkansas banking industry.

 

Based upon my determination to operate your State Bank Department in a most efficient and effective manner, I have made the decision to increase assessment fees effective July 1, 2001.  Please adjust your accrual rates based upon the new fee schedules as of July 1, 2001.

 

I am enclosing with this letter a schedule of the new assessment rates.

 

Sincerely,

 

 

 

 

Frank White

Bank Commissioner

 

Enclosure

 

Appendage #2 

Assessment Rate*

Effective Date:  July 1, 2001

 

 

 

 

 

FIXED FEE:             $1,200

 

PLUS:                       34.5 cents per $1,000 of the first $10MM

                                 ($10,000,000 x .000345) = $3,450

 

PLUS:                      23 cents per $1,000 of the next $15MM

($15,000,000 x .00023) = $3,450

 

PLUS:                     17.25 cents per $1,000 of the next $25MM

($25,000,000 x .0001725) = $4,312.50

 

PLUS:                     8.625 cents per $1,000 of the next $200MM

($200,000,000 x .00008625) = $17,250

 

PLUS:                     10 cents per $1,000 of the next $250MM

($250,000,000 x .000010) = $25,000

 

PLUS:                     7.5 cents per $1,000 of the next $1.5MMM

($1,500,000,000 x .000075) = $112,500

 

PLUS:                     4.5 cents per $1,000 of assets > $2MMM

 

 

 

 

 

 

*THE ASSESSMENT RATE IS BASED ON TOTAL ASSETS REPORTED ON THE BANK’S REPORT OF CONDITION ON DECEMBER 31 AND JUNE 30.