Arkansas Bank Deposits Grow 3 Percent, Regions Reverses Downward Trend

Total bank deposits in Arkansas increased by almost 3 percent in the year that ended June 30, more than enough to make up the previous year’s slight decrease following the failure of ANB Financial of Bentonville.

The 149 individually chartered banks that were doing business in the state held more than $48.53 billion in deposits on the last day of June, up $1.39 billion from the same day a year earlier, according to the annual summary of deposits released Thursday afternoon by the Federal Deposit Insurance Corp.

Arvest Bank of Fayetteville remains the state’s largest bank in terms of deposits, but its deposit growth of about 2.5 percent was not enough to keep up pace with the state’s overall market. Its market share, then, fell from 9.64 percent last year to 9.61 percent this year

Bucking a 10-year trend, Regions Bank of Birmingham, Ala., regained market share over the last year. Its deposits increased from $4.19 billion at June 30, 2008, to almost $4.58 billion in the middle of this year, an increase of more than 9 percent. That boosted Regions’ market share from 8.9 percent last year to 9.43 percent this year.

The number of individual charters declined by 10 over the past year, aided by the consolidation of five in-state charters by Home BancShares Inc. of Conway into the charter of Centennial Bank of Conway. As a result, Centennial was the eighth-largest bank by deposits as of June 30. HBI remains at No. 9 among bank holding companies in the state.

The ranking of the 10 holding companies remained unchanged with one notable exception: First Security Bancorp of Searcy, No. 6 last year, took over the No. 5 spot from Bank of the Ozarks of Little Rock. First Security’s deposits increased from $1.96 billion in mid-2008 to $2.29 billion a year later, an increase of more than 17 percent.

Meanwhile, Bank of the Ozarks’ deposits Bank of the Ozarks decreased more than 8 percent year-over-year. In this week’s third-quarter earnings statement, Chairman and CEO George Gleason said BOZ’s deposits were $2.05 billion as of Sept. 30.

Bank deposits statewide reached $47.22 billion at the middle of 2007, but settled back by about $75 million in 2008 after the state’s seventh-largest bank, ANB, was shuttered by the FDIC in May 2008. Most of ANB’s deposits — almost $1.5 billion of more than $1.7 billion — were brokered deposits that had been purchased from outside the market to fund the bank’s dramatic and ultimately fatal loan growth.

Arkansas Business will publish an extensive analysis of the 2009 Summary of Deposits on Oct. 26.


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