Arkansas
State Bank Department
State Banking Board
Meeting Minutes for
February 6, 2003
(updated September 2, 2003)
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, February
6, 2003. The following Board Members were present: David Bartlett, Bob Douglas, Charles Mazander, and
Gus Rusher. David Short joined the Board by phone. Vice Chairman Ted C.
Skokos 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. 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 December 30, 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. Commissioner White asked the
visitors and guest to stand and introduce themselves and state
whom they represent. He then announced the first order of business
was election of a new Chairman and Vice-Chairman for the coming year 2003. The
Secretary explained the State Banking Board's precedent of annually rotating
the Chairmanship and his records reflect the next Chairman
would be Ted Skokos, Vice Chairman would be Bob Douglas.
A motion was made by David Bartlett, seconded by Charles
Mazander, to elect Ted Skokos Chairman and Bob Douglas Vice Chairman. Motion
carried and the Commissioner concurred.
Next
on the
agenda was consideration of the Minutes of the October 30, 2002, Special Meeting. A motion was made by David Bartlett, seconded by Gus
Rusher, to approve the Minutes as presented. Motion carried and the
Commissioner concurred.
The Secretary informed the Board of a correction in the
July 18, 2002, Board Minutes. The meeting was described as a
"special meeting" when it should have been a "regular
meeting". A motion was made by Charles Mazander, seconded by
David Bartlett,
to approve the Secretary to make the necessary correction. Motion carried and the Commissioner concurred.
Next was approval of expenses for the Board. A motion was
made by Gus Rusher, seconded by David Bartlett, to approve the Board's
expenses. The motion carried and the Commissioner concurred.
Next was item five on the agenda, being an application by
First State Bank, Plainview, Arkansas, to relocate its main office from 200 Main Street,
Plainview, Arkansas, to 3103 East Main Street, Russellville, Arkansas. Charles
Blanchard, President of First State Bank,
represented and spoke for the application. David Short asked Mr. Blanchard to give an overview of the application. Mr.
Blanchard stated there would be no change in the current operation, no change in officers; would only be a transfer
of their main office to Russellville
which represents a growth market and opportunity for the bank. He stated it is
clearly the best place for market share. There
will be no change in the Board of Directors and the bank will maintain
its current representation in Yell County with the same services.
A motion was made by David Bartlett, seconded by Gus
Rusher, to approve the application. Motion carried and the Commissioner
concurred.
Next on the agenda was item six, being an application by
Bank of Evening Shade, Evening Shade, Arkansas, to relocate its main office to Mountain Home,
Arkansas, and retain its former main office location in Evening Shade,
Arkansas, as a branch office. The application was represented by Samuel Beller,
President and Chief Executive Officer, of the Bank of Cave City, and Randy Dennis of DD&F Consulting Group,
Little Rock. Mr. Dennis explained the
application. He noted Mr. Moe Sandfort, President and Chief Executive Officer of Community First National Bank
of West Plains, West Plains, Missouri, had business interest in Mountain Home,
Arkansas, being the reason for purchase
of the charter. Mr. Beller commented the plan to do this had started over
twenty years ago, that as a branch,
the community would have better service. Currently it is planned that an ATM will be added to the branch
building. Mr. Rusher stated he felt this was the first time this has been done and he had concerns about setting
a precedent. He questioned how a state
bank can protect their needs. He stated the Board has to enforce the law and that any change in the law would have
to be through the Legislature. He felt the
Board needs to consider the effect of this application on the banking industry.
He noted there was no financial information in the application on
Community First National Bank of West Plains, West Plains, Missouri. Randy
Dennis commented the Department has done a good job investigating the
application. After general discussion, a motion was made by David Bartlett, seconded by David Short, to approve the
application. Motion carried and the
Commissioner concurred.
Item seven on the agenda was consideration of an
application by Bank of Cave City, Cave City, Arkansas, to
purchase and assume a majority of the assets of Bank of Evening Shade,
Mountain Home, Arkansas, through the purchase of the Evening Shade branch office
only. The applicant was represented by
Samuel Beller, President and Chief Executive Officer of the Bank of
Cave City and Randy Dennis of DD&F Consulting Group,
Little Rock. As this application was
generally discussed in the prior application, a motion
was made by David Bartlett, Seconded by Charles Mazander, to approve the application.
Motion carried and the Commissioner
concurred.
Next
was consideration of a proposed regulation for application requirements for
industrial development corporations. Commissioner White asked the Board to
postpone the vote until Chairman Skokos is
present and new Board Member David Short is brought up-to-date. A motion was made by David
Bartlett, seconded by Gus Rusher, to postpone the
vote. Motion carried and the Commissioner concurred.
Under
"other business", Commissioner White commented on Senate Bill #45.
The Department would be a Type II transfer.
Our funds would go into the Department of Commerce but we have been assured they are not going after our funds. We
have to protect confidential records;
they can take no regulation action. Mr. Blanchard commented the Commissioner would serve at the
discretion of the Secretary of the Commerce
Department, along with the Governor. Commissioner White stated there will be questions on how this bill will be implemented.
We have to wait and see. At this point, I have to support the Governor. The
Community Bankers Association will support amendments to the bill and we can
live with the amended version. There is going to be a press conference tomorrow. Mr. Rusher commented
the bill states the Secretary of the Department of Commerce will appoint the
Commissioner, with the concurrence of the Governor. Mr. Mazander stated
he would be in support of the amended bill. David Bartlett stated he has great concern about this
bill and questioned if the Board can ask to amend the bill to segregate the Department's funds. David Bartlett made
a motion, seconded by Charles
Mazander, that correspondence be drafted and sent to the Governor's office asking all future funds of the Bank
Department be segregated. Motion carried and the Commissioner concurred. Commissioner White asked all Board Members
read the CSBS article about what happened
in Virginia. See copy appendage to minutes.
He then commented the assessments are in, will be up
approximately $75,000. He noted the banking economy is not in good
shape, bottom line is bank management. The staff is
doing well, has been no turnover. We now have the best-trained examination
staff than we have had in many years. The farming community is
in trouble. With trouble banking institutions we have
zero tolerance. Commissioner White thanked the Board for a good
job. Gus Rusher commented on the good job the Department is doing.
There being no further business, the meeting was adjourned.
