State of Arkansas imageArkansas
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.

 

Return to State Bank Department Home Page        Return to State Bank Department Home Page