Arkansas
State Bank Department

State Banking Board

Meeting Minutes for July 15, 2004

(updated September 22, 2004)

 

            A regular 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, July 15, 2004.  The following Board Members were present:  Chairman Gus Rusher, Vice Chairman Charles Mazander, Margie Russ, David Short, and Richard Mays.   Board Member David Bartlett was called by phone and participated in the meeting by a conference call.  Representing the State Bank Department were Commissioner Bunny Adcock, Deputy Commissioner Candace Franks, Chief Examiner Luther Guinn, and Administrative Assistants II Barbara Mahoney and Marilyn Myers.   Leslie C. Rutledge from the Governor’s office was also in attendance.  Lynn Perkins from Bushman Court Reporting was the recording reporter for the applicant.  Tom Gay was present from the Attorney General’s office.  No representatives from the media were present.

            Commissioner Adcock opened the meeting.  Acting Secretary Luther Guinn declared a quorum was present.  Commissioner Adcock then asked the visitors and guest to stand and introduce themselves and state who they represent.  He then turned the meeting over to Chairman Gus Rusher.  

First on the agenda was consideration of the Minutes of the April 15, 2004, Regular Board Meeting.  A motion was made by David Bartlett, seconded by Charles Mazander, 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 Margie Russ, seconded by David Bartlett, to approve the Board’s expenses.  Motion carried and the Commissioner concurred.

Next on the agenda was an application by Bank of Pocahontas for the relocation of its main banking facility from Pocahontas to Bentonville, and the name changed to Pinnacle Bank.

Randy Dennis with DD&F Consulting Group, Little Rock, represented and spoke for the Bank of Pocahontas-Pinnacle Bank application.  Chairman Rusher asked Mr. Dennis to comment on the application.  He stated that First National Bank of Mountain Home was looking to merge with Bank of Pocahontas and had a charter that it did not need.  The Pinnacle Bank group was looking at the possibility of locating a charter to relocate to Northwest Arkansas.  First National was able to enter into an agreement with Pinnacle to sell the charter and Pinnacle then relocate the charter to Northwest Arkansas.  Mr. Bartlett asked if the relocated charter would be treated as a de novo application and de novo charter.  Deputy Commissioner Franks stated the bank would be looked at during the first three-to-five years the same way as a de novo.  Mr. Dennis stated that Pinnacle would have the same capital requirements as a de novo bank.  Vice Chairman Mazander asked the maximum amount of stock any entity can hold.  Mr. Dennis stated that the investment for holding companies was under 5 percent.   Chairman Rusher commented on the tremendous amount of growth and expansion of branching into the area and asked Joe Mills to comment on the market.  Joe discussed supply and demand and competition and the fact that other new banks have done extremely well.  David Bartlett asked about growth projections.  David Estes gave an overview of the goals and projections for the bank.

  A motion was made by David Short, seconded by Charles Mazander, to approve the application, the motion carried and the Commissioner concurred.

Vice Chairman Mazander commented about a recent phone call he received regarding a complaint on a bank.  Deputy Commissioner Franks stated that her area handles consumer complaints and to direct complaints to the Department.

A motion was made by Richard Mays, seconded by David Short, to adjourn.  Motion carried.

 

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