Arkansas
State Bank Department

State Banking Board

Meeting Minutes for November 16, 2006

(updated August 9, 2007)

            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 November 16, 2006.  The following Board Members were present:  Chairman Charles Mazander, Vice Chairman David Short, Margie Russ, Marcus McCain, John Freeman, and Elmer Flucht.  Representing the State Bank Department were Commissioner Bunny Adcock, Deputy Commissioners Luther Guinn and Candace Franks, Financial Analysts Susannah Marshall and John Ashby, and Administrative Assistants II Barbara Mahoney and Devan Adair.  Gwen Perkins from Bushman Court Reporting was the recording reporter for the applicants.  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 11, 2006.  The notice was also given to the news media in accordance with state law.

            Commissioner Adcock opened the meeting.  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 Charles Mazander.  

           Next on the agenda was consideration of the Minutes of the September 26, 2006, Special Board Meeting.  A motion was made by John Freeman, seconded by David Short, to approve the Minutes as presented.  Motion carried and the Commissioner concurred.

          

Next was the approval of expenses for the Board.  A motion was made by Marcus McCain, seconded by Margie Russ, to approve the Board’s expenses.  Motion carried and the Commissioner concurred.

           Next on the Agenda was an application by Pinnacle Bank, Bentonville, Arkansas, to relocate its main office from Bentonville, Arkansas, to Rogers, Arkansas.  Joe Mills, President and CEO of Pinnacle Bank, represented and spoke for the application.  He stated that the original plan was to operate in a temporary office in Bentonville and relocate the charter to Rogers.  A motion was made by Vice Chairman David Short seconded by Ms. Margie Russ to approve the relocation application, the motion carried and the Commissioner concurred.  Next on the agenda was an application by Liberty Bank of Arkansas, Jonesboro, Arkansas, for the merger of First Arkansas Valley Bank, Russellville, Arkansas with and into Liberty Bank of Arkansas.  Director John Freeman stated that since he was part of the Liberty organization he would recuse from discussing or voting on the application.  Randy Dennis with DD&F Consulting Group, Little Rock, Arkansas, represented and spoke for the application.  Mr. Dennis stated that Liberty Bancshares owns both institutions and that the combined assets would be a little over two billion, with deposits of 1.6 billion and capital of 254 million.  Mr. Wallace Fowler stated that the merger would result in more services being available for Russellville.  Chairman Mazander asked if profitability was pretty equal at both banks.  Mr. Lloyd McCraken stated that Jonesboro was at about one percent and Russellville was about 1.25 percent thus far this year.  A motion was made by Mr. Marc McCain and seconded by Vice Chairman David Short to approve the merger application, the motion carried and the Commissioner concurred.

     Next on the agenda was an application by Arvest Bank, Fayetteveille, Arkansas for the merger of the Caney Valley National Bank, Caney, Kansas, with and into Arvest Bank.  Vice Chairman David Short stated that since he was employed by the Arvest Group that he would recuse from discussing or voting on this application.  Randy Dennis with DD&F Consulting Group, Little Rock, Arkansas, represented and spoke for the application.  Mr.

Dennis stated that Arvest is acquiring a 43 million dollar bank in Caney, Kansas, and not far from their existing offices in Oklahoma.  He stated that Caney will immediately merge into Arvest Bank and provide branching rights in Kansas.  He further stated that the purchase price was 7.2 million in cash.  Ms. Karla Payne stated that Arvest would be able to provide additional products and services such as ATM’s.  A motion was made by Mr. Marc McCain and seconded by Mr. John Freeman to approve the merger application, the motion carried and the Commissioner concurred.

     Next on the agenda was an application by Bank of Blevins, Blevins, Arkansas, to reorganize and relocate bank charter from Blevins, Arkansas, to Little Rock, Arkansas, to be known as Central Bank.  Randy Dennis with DD&F Consulting Group, Little Rock, Arkansas, represented and spoke for the application.  Mr. Dennis stated that the Bank of Blevins charter is being relocated to Little Rock and will have equity of 2 million.  He also stated that the assets and liabilities of the Bank of Blevins were being sold to First National Bank of Hope and that the Blevins location would become a branch.  He further stated that Lonoke Bancshares and Cross County Bancshares will own about 17 percent of the new bank and other holding companies involved were Tyronza Bancshares and Carlson Bancshares.  Mr. David Estes stated that the transaction will look exactly like Pinnacle approved relocation a couple of years ago and they are expecting to close subscription with the full 16 million.  Mr. Troy Duke stated that they were excited and feels that they have a great board of directors.  Mr. Skip Fantz stated he was new to the banking industry.  He stated he was intrigued with the business model and capabilities of proven bankers from proven banks so he agreed to invest and become chairman of the bank.  Mr. Marc McCain asked if deposit growth would keep pace with loan growth while operating out of one location and if not how would the bank augment the funding.  Mr. David Estes stated that their experience with the other two banks that funding was not a problem but they will have several lines set up with correspondence banks.  Chairman Charles Mazander stated that the department received a letter of comment.  Mr. David Estes stated they were aware of the letter and had no plans to use the name Central Mortgage.  A motion was made by

Vice Chairman David Short and seconded by Mr. John Freeman to approve the application, the motion carried and the Commissioner concurred.  Chairman Mazander asked if the Commissioner had any comments to share.  The Commissioner discussed the upcoming legislative session and our desire to construct a building and ask for parity in the branch application approval process.  No further business, the meeting was adjourned.

                        No further business the meeting adjourned.

 

 

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