Arvest Takes Third in Tulsa Deposit Market Share

Fayetteville-based Arvest Bank moved into third place in the most recent FDIC bank deposit market share report, displacing Tulsa-based F&M Bank & Trust Co. from that position for the first time in a decade.
The FDIC updated its market share report this month based on deposits as of June 30, 2008.
Bank of Oklahoma NA and Bank of America NA retained their first and second place slots with 23.89 and 9.98 percent of the deposit share respectively. BOk reported $4.01 billion in deposits inside the market, down 3.36 percent from its $4.15 billion reported in 2007. Bank of America’s market share jumped 20.05 percent from $1.4 billion to $1.68 billion.
The market share report is based on deposits in the Tulsa SMA, which includes Creek, Okmulgee, Osage, Pawnee, Rogers, Tulsa and Wagoner counties.
Arvest broke the $1 billion deposit mark with a 29.36 percent increase in deposits from $947.6 million in 2007 to $1.26 billion as of June 30. The bulk of that $278.2 million increase can be attributed to Arvest’s acquisition of the three M&I Bank locations in Tulsa from Marshall & Ilsley Corp. in July 2007. M&I ranked No. 17 in the 2007 market share report with $245.6 million in deposits inside the market.
Arvest’s in-market deposits represented a 7.3 percent share.
F&M has held the third place slot in market share since 1998 when it overtook Liberty Bank & Trust Co. of Tulsa. F&M’s deposit share increased 9.82 percent in the past year from $1.04 billion to $1.14 billion, a 6.8 percent share.
Liberty Bank merged into Bank One Trust Co. in 1997, which was merged into JPMorgan Chase in 2006.
Other ranking changes of note among the top 20 banks include: SpiritBank overtook JPMorgan Chase Bank, now ranking fifth with a 21.84 percent increase in deposits; MidFirst Bank jumped three positions to rank No. 13 with a 43.12 percent increase, and First Bank of Owasso and American Bank & Trust Co. moved into the top 20 with 14.15 percent and 7.59 percent increases, respectively.
MidFirst Bank reported its earnings for the third quarter of 2008 were up 26 percent totaling $74.6 million, compared to $59.4 million in 2007. The quarter complements a nine-month trend that has resulted in an overall 30 percent earnings increase to date totaling $213.1 million in 2008, compared to $163.9 million in 2007.
Equally important, assets grew by nearly 22 percent—or $2.6 billion—beyond the previous year. The increase was driven primarily by growth in government-backed mortgage loans and to a lesser extent, commercial loans. MidFirst’s combined regulatory capital and reserve base was about $1.2 billion on Sept. 30, 2008. MidFirst exceeds all regulatory requirements to be considered a “well capitalized” institution.
“MidFirst Bank is in a positive position, despite the current economic conditions, because of sound practices, including the diversity of our operating strategies. These have enabled MidFirst to grow its assets and earnings,” said Bob Dilg, president and chief executive officer of MidFirst. “Fifty percent of the MidFirst balance sheet is comprised of government-backed assets that provide particular strength and stability during this time of economic uncertainty.”
Consequently, MidFirst maintains the highest ratings by several independent bank rating firms such as Veribanc, IDC and LACE. Such a ranking is a result of avoiding the high-risk subprime mortgage strategies that have afflicted other financial institutions. Additionally, MidFirst owned no stock in Fannie Mae or Freddie Mac. Instead, MidFirst Bank possesses mortgages that are U.S. government-backed FHA and VA products. In fact, 98 percent of the bank’s mortgage loan servicing portfolio is comprised of government-backed loans.
Partial success is also credited to the bank’s lending portfolio that is both geographically and product diverse. It is important to note that MidFirst’s level of problem assets remains better than Oklahoma and national averages.
“While we are pleased with the bank’s financial results this quarter, we recognize that we are operating in unstable and uncertain financial markets,” said Dilg. “We will remain vigilant in managing the bank’s credit risk and maintaining strong loan loss reserves.”
On the infrastructure front, plans for fulfilling MidFirst expansion efforts in Oklahoma and Arizona remain on target, with the end goal of broadening and building the core deposit base.
MidFirst is Oklahoma’s second largest bank and the third largest privately owned bank in the U.S., with 50 offices and more than 100 ATMs across Oklahoma. MidFirst is a member of the Midland Group of Companies and is Oklahoma owned and operated.
Kansas City-based Commerce Bancshares Inc. announced earnings of $.36 per share for the three months ended Sept. 30, 2008, a decrease of 53.2 percent compared to $.77 per share in the third quarter of 2007.
Net income for the third quarter amounted to $26.5 million, compared with $55.9 million in the same period last year. The quarter was affected by the company’s previously announced purchase of auction rate securities from its customers, which resulted in a pre-tax non-cash expense of $33 million, or $.29 per share. Additionally, the company elected to increase its allowance for loan losses by $10.8 million this quarter, raising the allowance from 1.31 percent to 1.42 percent of average outstanding loans.
For the nine months ending Sept. 30, 2008, earnings per share totaled $2.02 compared to $2.22 for the first nine months of last year. Net income amounted to $146.6 million in 2008 compared with $163.0 million in 2007. For the first nine months of 2008, the return on average assets was 1.2 percent, and the return on average equity was 12.3 percent.
“Against a backdrop of significant economic challenges facing our economy and the entire banking industry, we are pleased to report continued solid revenue growth this quarter, said David W. Kemper, chairman and CEO. Net interest income grew by 12 percent over the same quarter last year as a result of a 6-percent increase in earning assets and improved net interest margins. Additionally, bankcard fees grew 11 percent during the third quarter compared with the same period last year reflecting continued strong growth in merchant, debit and corporate card fees.
During the quarter, we elected to purchase, from our customers, auction rate securities totaling $530 million. Due to the temporary illiquid nature of these securities, under fair value accounting rules, we recorded a non-cash loss of $33 million. Excluding this item, non-interest expense in the current quarter remained well controlled and was up only 1 percent compared to the prior quarter.”
“The Company’s strong capital base of $1.6 billion has grown 7 percent over the same period last year; our liquidity levels are significant and improving,” Kemper said. During the quarter, net loan charge-offs totaled $18.7 million, up from $14.5 million in the previous quarter, principally as a result of higher non-mortgage consumer loan losses.
Non-performing assets, consisting of non-accrual loans and foreclosed property, grew this quarter from $36.7 million to $46.2 million, primarily because of the continued weak environment for residential construction. Non-performing assets represent a modest .42 percent of outstanding loans.
Given the current economic conditions, during the quarter we elected to increase our allowance for loan losses by $10.8 million to $156 million. This allowance now represents 375 percent of total non-accrual loans and 1.42 percent of outstanding loans.”
Total assets at Sept. 30, 2008 were $17 billion, total loans were $11.4 billion and total deposits were $12.3 billion. The company’s bank financial strength rating was recently reaffirmed by Moody’s, and this rating ranks the bank among the top five of the fifty largest banks in the country.
Commerce Bancshares, Inc. is a registered bank holding company offering a full line of banking services, including investment management and securities brokerage. The company operates in more than 360 locations in Missouri, Illinois, Kansas, Oklahoma and Colorado. The company also has operating subsidiaries involved in mortgage banking, credit related insurance, and private equity activities.
Bank of Oklahoma will hold “Business Focus 2008,” the seventh-annual day-long seminar featuring BOk’s financial experts discussing financial topics relevant to Tulsa’s current business climate, on Oct. 28, 8 a.m. to 3 p.m.
It will be held at the Tulsa Renaissance Hotel and Convention Center, 6808 S. 107th E. Ave.
The purpose of “Business Focus 2008” is to educate business leaders about topics like how to help businesses put idle funds to work, how to maintain liquidity of assets, increase cash flow, reduce receivables and simplify foreign transactions.
The keynote speaker at the event will be Mayor Kathy Taylor, who will be focusing on an overview of the Tulsa economy.
“The goal is to help business owners, entrepreneurs, CEOs or anyone interested in improving their business, learn how to impact their bottom line and discuss their personal business needs with certified experts,” said Paula Barrington, senior vice president. “Through product booths, live demonstrations and one-on-one conversations, participants will be able to identify opportunities and solutions for their business needs at this one-day conference.”
The day’s events are free, but space is limited. Call Staci Holmes at (918) 588-6448 or visit www.bok.com/businessfocus/tulsa for more information or to register.
Arvest Bank, Tulsa has promoted Erica Conboy and Amanda Cole and has hired Jason Doyle.
Conboy has been promoted to vice president, branch administrator community region. Conboy has six years of banking experience and has an associate’s degree in business administration.
Cole has been promoted to vice president, in store regional manager. Responsibilities include coordinating the overall direction of eight Tulsa area Arvest branches located inside area Wal-Mart stores. Cole has 22 years in banking. She is very active with the Tulsa Area Meals on Wheels program.
Doyle has been hired as assistant vice president/commercial relationship officer. He has three years in banking. Doyle received his undergraduate degree from Florida State University and his MBA from Oral Roberts University. ?′
Joel Fontenot has joined Trailblazer Capital as a co-managing partner with the fund’s founder, David Matthews.
Trailblazer Capital is a uniquely entrepreneurial venture fund with an investment focus on early stage, capital efficient software and business services companies in the Southwest region that possess disruptive business models. The fund was founded in late 2006 and since inception it has made four investments and achieved one exit.
Fontenot was director of Business Development for the Voice Technology Group of Cisco Systems, Inc. Before that, Fontenot founded and served as CEO of Metreos, a telecommunications software firm. He was the driving force in establishing Metreos as the first enterprise voice over IP applications platform for the development and deployment of innovative, media-rich IP communications applications. He was instrumental in facilitating the company’s sale to Cisco in the summer of 2006. In addition to his success at running start-ups, Joel also has a strong background in commercial banking and early-stage venture capital.
As part of IBC Bank’s growth and with the increased desire and customer demand for one of Apple’s most popular devices, IBC has expanded the reach of its mobile banking feature, IBC Mobile, to include the iPhone.
Currently, IBC Mobile for the iPhone is only offered in English; however, the bank is in the process of developing a Spanish option as well. IBC’s iPhone application is available for free download at the iPhone Application Store. Additional mobile devices supporting the banking feature can be found online at www.ibc.com.



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