Old Charter Directs FDIC Coverage

We were wondering how Arvest Bank Group Inc.’s ongoing consolidation into one charter would affect its Federal Deposit Insurance Corp. guarantees.

The FDIC only backs an entity’s deposits up to $100,000 per bank, and Arvest boasts more than 130 branches group-wide. Customers who had, for instance, $100,000 deposited at 10 separate Arvest banks were insured up to $1 million.

But with only one charter, that held since 1871 by the former McIlroy Bank & Trust Co. in Fayetteville (now Arvest Bank-Fayetteville), the FDIC’s guarantee will only back the same $1 million up to $100,000.

Gary Head, president of Arvest Bank-Fayetteville, said the strength of the company’s ownership is that it has more money than the FDIC. Walton Enterprises — owned by the heirs of Wal-Mart Stores Inc. founder Sam Walton — has controlling ownership of Arvest. The Walton family’s combined wealth is estimated by Arkansas Business to be more than $91.3 billion.

“We will be happy to visit with any of our customers who are concerned,” Head said. “But we sure don’t have many who are asking about the FDIC.”