Arkansas
State Bank Department
State Banking Board
Meeting Minutes for
November 29, 2001
(updated February 27, 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, November 29,
2001. The following Board Members were present: Chairman Phyllis Kincannon,
Vice Chairman Judy Loving, David Bartlett, Gus Rusher, and Theodore C. Skokos,
Sr. Bob Douglas 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 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. No representatives from the media 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 October 24,
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 there was a quorum with five of the six Board
Members 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.
First on the agenda was consideration of the minutes of the October 4, 2001, Special Board Meeting. A motion was made by David Bartlett, seconded by Gus Rusher, to approve the minutes as presented. The motion carried and the Commissioner concurred.
Next was approval of expenses for the Board. A
motion was made by Judy loving, seconded by Ted C. Skokos, Sr., to approve the
Board's expenses. The motion carried and the Commissioner concurred.
Item 4 on the agenda was consideration of an
application by Simmons First Bank of South Arkansas, Lake Village, Arkansas, to
merge Simmons First Bank of Dumas, Dumas, Arkansas, with and into Simmons First
Bank of South Arkansas, Lake Village. Randy Dennis of DD & F Consulting
Group represented the applicant. He and Freddie Black, President of Simmons
First Bank of South Arkansas, spoke for the application stating the banks have
common ties and it is a good business decision, that the Board in Dumas will be
a loan committee. Plans are to maintain current employees. Mr. Black stated he
felt this would enhance services to all their customers. A motion was made by
Judy Loving, seconded by David Bartlett, to approve the application. Motion
carried and the Commissioner concurred.
Next was consideration of an application for a
proposed charter amendment by Bank of Mulberry, Mulberrv, Arkansas, to change
the bank's name to United Bank, Mulberry. Alex Golden, President of the Bank of
Mulberry, explained the name change, they felt it would be beneficial to the
bank. A motion was made by Gus Rusher, seconded by Ted C. Skokos, Sr., to
approve the application. Motion carried and the Commissioner concurred.
At this point, Gus Rusher commented he wasn't sure
the Board Members needed all the information being sent to the Board in their
applications package. He felt there was excess information, in the form of
paper work, not needed by the Board. Candace Franks stated this was probably
true and would reduce the amount of unnecessary paper work in the information
sent to the Board.
Next was consideration of an application for a
proposed charter amendment by Bank of Brinkley, Brinkley, Arkansas, to change
the par value of the bank's common stock and to change the number of directors.
Board Member Gus Rusher abstained from voting on this application. He explained
to the Board the reasons for this. A
motion was made by David Bartlett, seconded by Judy Loving, to approve the
application. Motion carried and the Commissioner concurred.
Next was consideration of a proposed regulation to
extend the period of time a county or regional industrial development
corporation has to exercise its delegated authority. Candace Franks explained
the purpose of the regulation is to extend the period of time for
implementation from six [6] months to eighteen ]18] months with two [2] six-month
[6‑month] extensions, not to exceed thirty [30] months. Commissioner
White explained the goals and purposes of industrial development corporations
and their benefit to their respective communities. David Bartlett asked for
comments from Hot Springs Chamber of Commerce representative Jay Cheshier on
how the industrial development operated in Garland County. He commented some
projects did not get done and in some cases they got funds on the front end. He
stated the proposed regulation is more than fair and capital has become easier
to find. Ron Davis, President and Chief Executive Officer of Pulaski County
Industrial Development Corporation, commented they have one hundred fifty [150]
stockholders and have tried to do several projects but have never been contacted
about the rules. He stated he has no problem with this regulation but felt
there should be a description of the project in the stock issue. A motion was
made by David Bartlett, seconded by Judy Loving, to approve the regulation.
Motion carried and the Commissioner concurred.
Next was consideration of a proposed regulation for
timely reports of county or regional industrial development corporations.
Candace Franks, Deputy Commissioner and Department Legal Counsel, explained the
purpose of this regulation, stating the Department has had problems in the past
receiving required reports in a timely manner, that there needs to be
reasonable time limitations. She noted she has received comments from other
industrial development corporations that have asked for additional, extended
timeframes within which to file their required reports. Judy Loving commented
these reports need to be filed to
be reviewed by the Department even if inactive. The Commissioner again
explained the purpose of industrial development corporations. A motion was made
by Ted C. Skokos, Sr., seconded by Judy Loving, to approve the regulation. The
motion carried and the Commissioner concurred. At this point, Ron Davis asked
if he could make a public comment. It was felt by the Board that all comments
had been heard. Mr. Davis left the meeting. Jay Cheshier, representing Hot
Springs Chamber of Commerce and Garland County Economic Development Commission,
commented this was a good regulation and agreed with the Commissioner and
Department staff. Chairman Phyllis Kincannon asked if there were any
implications by Mr. Davis leaving the meeting. Department Counsel, Candace
Franks, explained the Board needs to rescind approval of the regulation and
table until next meeting to allow Mr. Davis to comment, if he so desires, on
the regulation. A motion was made by Ted C. Skokos, Sr., seconded by Gus
Rusher, to rescind approval of the regulation and table until next meeting.
Motion carried and the Commissioner concurred. Gus Rusher asked why there is such
a problem, stating the Department and Banking Board is charged with the
responsibility of developing and enforcing the regulations for benefit of the
Arkansas financial community. Mr. Bartlett stated he feels it is fair to invite
Mr. Davis back to the next Board meeting.
Next was consideration of a proposed regulation for
bank fictitious name applications. Counsel Candace Franks explained the
regulation stating this is an addition to a prior regulation. A motion was made
by David Bartlett, seconded by Ted C. Skokos, Sr., to approve the regulation.
Motion carried and the Commissioner concurred.
Under "other business", Commissioner White
brought the Board up to date with an overview of the Department. He explained
additional hiring of examiners, being thankful for revenue sources of the
Department, noting overall state government will be facing tough times.
Currently the Department has nineteen [19] banks under some type
of written agreement. he informed the Board he just returned from a two‑day
meeting in Atlanta, being a Southeast meeting of counterparts and federal
regulators in which the federal regulators reported on many segments of the
economy.
He noted since he has been with the Department there
has been a 48% turnover in examiners, the Department does not have the depth of
experience even though we are doing a tremendous amount of training. The senior
examiners are spending a lot of time involved with those banks considered
problem institutions.
All business attended to, a motion was made by Judy
Loving, seconded by Gus Rusher, to adjourn the meeting. Motion carried.
