Arkansas
State Bank Department

State Banking Board

Meeting Minutes for December 4, 2003

(updated February 12, 2004)

 

            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, December 4, 2003.  The following Board Members were present:  Chairman David Bartlett, Vice Chairman Gus Rusher, Charles Mazander, Margie Russ, and David Short.  Board Member Richard Mays was absent from the meeting.  Representing the State Bank Department were Commissioner Bunny Adcock, Deputy Commissioners Don R. Clark and Candace Franks, and Administrative Assistants II Barbara Mahoney and Marilyn Myers.  Lynn Perkins from Bushman Court Reporting was the recording reporter for the applicants.   Tom Gay was present from the Attorney General’s office.   Also in attendance was Milton Fine, the Department’s liaison to the Governor’s office.   No representatives from the media were present.

            State Bank Commissioner, Bunny Adcock, 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 29, 2003.  The notices were also given to the news media in accordance with state law.  

Commissioner Adcock opened the meeting.  Secretary Don R. Clark declared a quorum was present.   Commissioner Adcock then asked the visitors and guest to stand and introduce themselves and state whom they represent.   He then turned the meeting over to Chairman David Bartlett.   Mr. Bartlett complimented Board Member Margie Russ for being in attendance at all Board Meetings since her appointment this year.

First on the agenda was consideration of the Minutes of the November 13, 2003, Special Board Meeting.  A motion was made by Charles Mazander, seconded by Gus Rusher, to approve the Minutes as presented.  Motion carried and the Commissioner concurred.

Next was approval of expenses for the Board.  A motion was made by David Short, seconded by Charles Mazander, to approve the Board’s expenses as presented.  Motion carried and the Commissioner concurred.

Next on the agenda was consideration of an application by First Security Bank, Searcy, Arkansas, for the purchase and assumption of First National Bank of Springdale, Springdale, Arkansas.  Reynie Rutledge, Chairman of the Board and Chief Executive Officer of First Security Bank, Searcy, Arkansas, represented the applicant.  He described the transaction that they were purchasing First National Bank of Springdale, Springdale, Arkansas, from First Tennessee Bank in Memphis, and it is their desire to close this transaction by year-end.  He stated this will be a cash transaction and will pull their capital down to 6 ½ percent; however, the bank’s holding company capital is 8.35 percent.  He stated the bank would be back up to 7 percent in the next year.  He noted they have a line of credit to draw on.  He commented that the bank had received no comments on their public notice.    David Bartlett brought up several comments brought out in the last examination report dated October 3, 2003.  Mr. Rutledge stated they are in the process of correcting items of criticism set out in the report.  Chairman Bartlett questioned, and Mr. Rutledge answered, that the bank will become a branch of First Security Bank in Searcy.  Mr. Bartlett questioned what the branches would do about CRA.  Mr. Rutledge commented they would continue to stay active in CRA.  After  general discussion, a motion was made by Gus Rusher, seconded by David Short, to approve the application.  Motion carried and the Commissioner concurred.

Mr. Bartlett asked when the next regular Board Meeting was scheduled.  The Secretary reported it would be January 15, 2004; however, this is subject to cancellation if there is no business for the Board.

Chairman David Bartlett asked the Board Members to be sure and send in their Statement of Financial Interest to the Secretary of State’s office.  This is for the year 2003.

Commissioner Adcock commented on the number of problem financial institutions.  He noted we still have a catfish problem; however, overall the state is doing very well, especially the agricultural sector.

All business attended to, the meeting was adjourned.

 

 

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