Arkansas
State Bank Department
State Banking Board
Meeting Minutes for
July 17, 2008
(updated November 17, 2008)
A regular 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 July 17,
2008. The following Board Members were
present: Chairman Marcus McCain, Vice
Chairman John Freeman, Margie Russ, David Short, and Elmer Flucht. Representing the State Bank Department were
Commissioner Candace A. Franks, Deputy Commissioners Luther Guinn and Susannah
Marshall, Attorney Brent Taylor, Chief Examiner Wilks Marshall, Financial
Analyst Supervisor John Ashby, Financial Analyst Cara Lank, and Management
Project Analyst Barbara Mahoney. Sharon
Hill from Bushman Court
Reporting was the recording reporter for the applicants.
Commissioner Franks opened the meeting. Secretary Luther Guinn declared a quorum was
present. Commissioner Franks then asked
the visitors and guests to stand and introduce themselves and state who they
represent. She then turned the meeting
over to Chairman Marcus McCain.
Next on the agenda was consideration of the Minutes
of the April 17, 2008 Regular 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 approval of expenses for the Board. A motion was made by David Short, seconded by
Margie Russ, to approve the Board’s expenses.
Motion carried and the Commissioner concurred.
Next on the agenda was an application by Heartland
Community Bank, a federal savings association located in Bryant,
Arkansas, to convert to a state-chartered bank
to be known as Heartland Community Bank, Bryant,
Arkansas. Mr. Clyde Henderson, President and CEO for
Heartland Community Bank represented and spoke for the application. Mr. Henderson
stated that Rock Bancshares, led by Walter Quinn, acquired the bank in 2004 and
desired to convert to a state-charter at that time. He stated they wanted to get the bank in a
better position to where it was presentable to the State Bank Department. He further stated their management team had a
history with the Department and the institution was more of a commercial bank
that a thrift. Mr. David Short asked if
issues with the Office of Thrift Supervision had to do with loan quality. Mr. Henderson stated that it had to do more
with loan type and the desire to originate and sell loans. Chairman Marcus McCain asked Mr. Henderson to
address the classification level. Mr.
Henderson stated the classification ratio was at 62 percent and included two
large credits when they acquired the institution. He further stated the ratio had consistently
dropped each quarter.
A motion was made by John Freeman, seconded by David
Short, to approve the application, the motion carried and the Commissioner
concurred.
Next on the agenda was an application by First
Security Bank, Searcy, Arkansas,
to merge First Security Bank of Conway, Conway, Arkansas, with and into First Security Bank, Searcy, Arkansas. Randy Dennis with DD&F Consulting Group,
Little Rock, Arkansas, represented and spoke for the application. Mr. Dennis stated they were consolidating
affiliate companies and looking to find the best and most efficient way to
deliver products and services to customers.
He stated they plan to consummate on October 10th. Mr. Mike Hudsell, President of First Security
Bank, Searcy, Arkansas, stated in the past few years they had changed the names
of banks to take advantage of one brand throughout the state and had merged
banks. He stated Searcy had been
providing data processing for the Conway bank for 10 years on a common system
and that the customer base knows no difference no matter where the office is located. He further stated that the Conway Board would become an advisory Board,
management was already in place, and the merger should provide streamline and
reduction in expenses.
A motion was made by David Short, seconded by Elmer Flucht,
to approve the application, the motion carried and the Commissioner concurred.
Next on the agenda was an application by First
Community Bank, Batesville, Arkansas,
to merge Goodman State Bank, Goodman, Missouri, with and into First Community Bank, Batesville, Arkansas. Ms. Laura Brissey represented and spoke for
the application. Ms. Brissey stated that
Goodman was acquired in May and was a small bank in the southwest corner of the
state of Missouri. She further stated that to accomplish
economies of scale, the would like to merge Goodman into First Community Bank,
operate the current Goodman Board as a community advisory business development
Board, with no changes to the First Community Bank Board. Mr. David Short asked about loan issues. Ms. Brissey stated that two loan officers
were not working overdue loans, but have now adopted the new style of banking
and overdue loans have improved.
Chairman Marcus McCain asked if the loans were primarily consumer type
credits. Ms. Brissey stated the loan
portfolio was over 90 percent consumer real estate. Mr. David Short asked about the status of the
current president and if he would be an executive office of the bank. Ms. Brissey stated that Laverne Beaver would
continue to be City President of Goodman, but not an executive officer.
A motion was made by David Short, seconded by Elmer
Flucht, to approve the application, the motion carried and the Commissioner
concurred.
Next on the agenda was an application by Community
Bank, Cabot, Arkansas,
to merge Bank of Mountain View, Mountain
View, Arkansas, with and into
Community Bank, Cabot, Arkansas.
Mr. Randy Dennis with DD&F Consulting Group, Little Rock, Arkansas,
represented and spoke for the application.
Mr. Dennis stated both banks are wholly owned by Home Bancshares, who
announced plans to consolidate all of their charters and this is the first step
in the process, with plans to consummate on October 1st. Mr. Dennis further stated following the
merger, Community Bank will operate 13 branches and the current Board at the
Bank of Mountain View will become advisory
directors and still have an active presence in Mountain View. Mr. Tracy French, CEO and President for
Community Bank, Cabot, Arkansas, stated that hopefully it would go very smooth.
A motion was made by John Freeman, seconded by Elmer
Flucht, to approve the application, the motion carried and the Commissioner
concurred.
Next on the agenda was an application by First
Arkansas Bank & Trust, Jacksonville, Arkansas, to merge Greers Ferry Lake State Bank, Heber Springs, Arkansas,
with and into First Arkansas Bank & Trust, Jacksonville, Arkansas. Mr. Randy Dennis with DD&F Consulting
Group, Little Rock, Arkansas, represented and spoke for the application. Mr. Dennis stated First Arkansas Bank &
Trust is buying Greers Ferry Lake State Bank stock, will merge the two banks,
and the Board of Greers Ferry Lake State Bank will resign upon the merger. Mr. Dennis further stated that First Arkansas
Bank & Trust would gain entrance into Van Buren County as a result of the
merger. Mr. Larry Wilson, Chairman, CEO,
and President of First Arkansas Bank & Trust, Jacksonville, Arkansas,
stated customers and consumers in Cleburne
and Van Buren counties would be exposed to additional services and
locations. Mr. David Short asked about
branch locations. Mr. Wilson stated in
Greers Ferry, they have two locations with plans to close one, and in Heber
Springs, plans are to close a First Arkansas Bank & Trust existing branch. Mr. John Freeman raised a question regarding management
in Heber Springs. Mr. Wilson stated they
are still evaluating personnel to determine the best going forward.
A motion was made by Margie Russ, seconded by David
Short, to approve the application, the motion carried and the Commissioner concurred.
