Arkansas
State Bank Department
State Banking Board
Meeting Minutes for
October 25, 2007
(updated July 21, 2008)
A special meeting of the Arkansas 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 October 25,
2007. The following Board Members were
present: Vice Chairman Elmer Flucht, Margie
Russ, Marcus McCain, and Creed Spann. Chairman David Short was called by phone
and participated in the meeting by a conference call. Representing the State Bank Department were
Commissioner Candace A. Franks, Deputy Commissioners Luther Guinn and Susannah
Marshall, Attorney Brent Taylor, Chief Examiner, Richard Buzbee, Financial
Analyst Supervisor John Ashby, and Management Project Analyst Barbara Mahoney. Donna Baham Jacks, CCR, from
State Bank Commissioner, Candace A. Franks, 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 September 19, 2007. The notice was also given to the news media in accordance with state law.
Commissioner Franks opened the meeting. Secretary Luther Guinn declared a quorum was present. Commissioner Franks then asked the visitors and guest to stand and introduce themselves and state who they represent. Representing the Federal Deposit Insurance Corporation were Debbie Calvert and Wayne Nichols. She then turned the meeting over to Chairman David Short.
Chairman Short asked that Vice President Elmer Flucht conduct the meeting since he was participating telephonically.
A motion was made by Marcus McCain, seconded by Creed Spann, to approve Mr. Flucht to Chair the meeting.
Next on the agenda was consideration of the Minutes of the July 19, 2007 Board Meeting. A motion was made by David Short, seconded by Margie Russ, 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 Marc 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 First
Security Bank,
Mr. Dennis stated that the holding company currently has three banks, Searcy, Mountain Home, and Conway. He stated the plan is to merge First Security Bank, Searcy, and First Security Bank of Mountain Home. Mike Hutsell stated that the banks have common ownership and the data processing for Mountain Home has been done in Searcy for several years. He further stated that the proposed merger is a natural transaction that should take place.
A motion was made by David Short, seconded by Creed Spann, to approve the application, the motion carried and the Commissioner concurred.
Next on the agenda was an application by Farmers
Bank & Trust Company, Magnolia, Arkansas, to merge Southern State Bank,
Malvern, Arkansas, with and into Farmers Bank & Trust Company, Magnolia,
Arkansas. Board member Marcus McCain
stated that he worked for a competing institution of both parties to the
transaction, but had no issues and fully supported the application. He stated that if the parties had any
objections to his participation, he would recuse. Bruce Maloch stated the Framers Bank had no
objections to Mr. McCain’s participation.
Randy Dennis with DD&F Consulting Group, Little Rock, Arkansas,
represented and spoke for the applicant.
Mr. Dennis stated that Magnolia will acquire 100% of Malvern and the two
banks will then merge. Mr. Dennis stated
that Farmers, Magnolia, has nine offices and Southern State, Malvern, has three
offices. Mr. Dennis further stated that
a number of applications had been filed, including a change of control, merger,
and fictitious name, and that the Malvern bank would continue to operate as
Southern State Bank. Bruce Maloch stated
the Framers Bank and Magnolia Banking Corporation is a five hundred million
institution with the former being 101 years old. He stated that they have excellent growth,
income, and stability from a capital standpoint, have not been overly
aggressive in the acquisition market, and currently has over 50% of the deposit
market in Magnolia. He further stated
that they had acquired branches in
A motion was made by Marcus McCain, seconded by Margie Russ, to approve the application, the motion carried and the Commissioner concurred.
Being no further business, a motion was made by Creed Spann, seconded by Margie Russ, to adjourn. Motion carried.
