Arkansas
State Bank Department

State Banking Board

Meeting Minutes for November 23, 2004

(updated January 25, 2005)

 

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.

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 Tuesday, November 23, 2004.  The following Board Members were present:  Chairman Gus Rusher, Vice Chairman Charles Mazander, David Bartlett, Richard Mays, Margie Russ, and David Short.  Representing the State Bank Department were Commissioner Bunny Adcock, Deputy Commissioners Don R. Clark and Candace Franks, Chief Examiner Luther Guinn, Management Project Analysis Cynthia Nixon, and Administrative Assistant II Barbara Mahoney.   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.   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 19, 2004.  The notice was also given to the news media in accordance with state law.

Commissioner Adcock opened the meeting.  Deputy Commissioner, Don R. Clark, 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 July 15, 2004, Regular Board Meeting.  A motion was made by David Bartlett, seconded by David Short, 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 Charles Mazander, seconded by David Short, to approve the Board’s expenses.  Motion carried and the Commissioner concurred.

Next on the agenda was consideration of an application by Parkway Bank, Portland, Arkansas, for the relocation of its main banking facility from 217 North Main Street, Portland, Arkansas, to 3350 Pinnacle Hills Parkway, Rogers, Arkansas, with a temporary location at 5500 Walsh Lane, Suite 100, Rogers, Arkansas.

Bob Fegtly from DD&F Consulting Group, Little Rock, Arkansas, represented and spoke for the application.  Mr. Robert D. Pugh, Director of Parkway Bank, Portland, Arkansas, also spoke for the application.  He explained who they were and their plans to expand their banking market.  He stated the bank had been the hands of the Pugh family since after the Second World War and he feels very good about the application and their presence in northwest Arkansas.  He noted they have over eleven million dollars in capital.  Mr. Mazander asked if they could not accomplish the same goal by a branch in northwest Arkansas.  Mr. Pugh stated they are looking at a ten year growth period and they feel their bank needs to be in a northwest Arkansas growth area.  David Short asked about the cost of start-up of the new bank.  Mr. Pugh stated this would be around six hundred thousand dollars.  David Bartlett commented on C.R.A. (Community Reinvestment Act).  Mr. Pugh stated all banking activities in southeast Arkansas will be maintained and they are not abandoning their southeast Arkansas branch bank.  Mr. Pugh noted he feels comfortable they can raise capital for growth in the bank up to one hundred fifty million dollars in total assets.  Mr. Rusher commented there is a saturation point for banks in the northwest market.  Mr. Pugh stated they have plans to start building in the first quarter of 2005 and it will take approximately nine months to complete the building.  He also commented Jerry Sadler, Chief Executive Officer of Parkway Bank, will, if the application is approved, start taking deposits as of November 29, 2004.  They have several stockholders and others who want to establish deposits and start a banking relationship.  Mr. Bartlett noted this will not be a de novo bank.  Chairman Rusher stated several bankers have commented there is concern about saturation of the market in northwest Arkansas.  Mr. Sadler stated it was their goal to make slow and steady growth in the northwest Arkansas market. 

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

Chairman Rusher asked the Commissioner to comment about the Department.  The Commissioner asked Luther Guinn, Chief Examiner, to comment on the northwest Arkansas field office.  David Short stated the Bank Department needs a strong examination team in northwest Arkansas.  Commissioner stated he and Luther Guinn will be attending meetings in northwest Arkansas asking for support for the Bank Department.  He wants the area supervisor to make calls on people highly qualified for employment with the Department.  Mr. Mazander also stated the Department needs a strong presence in the northwest Arkansas area.  Deputy Commissioner Candace Franks stated we will have more applications in the future.

Chairman Gus Rusher wished everyone a happy holiday and thanked David Bartlett for a good job.  Secretary Don R. Clark stated that January 13, 2005, will be his retirement party from 2:00 to 4:00 p.m. and he plans to retire as of February 1, 2005.  

Margie Russ brought to the Board a letter she received from the Governor’s Office that all new Board Member appointees attend a training session.  This was for everyone’s information. 

No further business, the meeting was adjourned.

 

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