Arvest to acquire 29 Bank of America branches

Arvest Bank continues to grow its market share and reach as the Fayetteville-based institution struck a deal with Bank of America to acquire 29 locations and most of the deposit accounts associated with those branches across four states.

The Bank of America branch locations are all within or close to existing Arvest markets. In Arkansas, nine branches are included in the deal: Harrison, Hot Springs, Hot Springs Village, Mountain Home and Russellville. Additionally, the plan includes 15 branches in Missouri, four in Oklahoma and one in Kansas, according to the release.

Arvest said it expects to receive regulatory approval for the deal in the first quarter of 2013. Under the agreement, Arvest will purchase certain assets, including 18 branch locations owned by Bank of America, most deposit accounts such as checking, savings, IRAs and CDs belonging to households and small business customers as well as lease obligations for 11 other branch locations. The transaction does not include credit card, mortgage, brokerage or trust accounts.

“The acquisition of this location in the Russellville market reveals Arvest’s commitment to meet the financial service needs of individuals and companies in the River Valley community. I want to welcome all of these Bank of America customers to the Arvest family and ensure them that we will be working diligently over the next few months to provide a seamless transition to Arvest Bank," Craig Rivaldo, president of Arvest Bank in Fort Smith, said in a statement.

Arvest considers the purchase of branches and customer relationships within its existing footprint a strong indicator of the bank’s commitment to community banking. Each of the new locations will join one of Arvest’s nearby community markets once regulatory approvals are received and the transition is complete. 

Arvest Bank expects many Bank of America employees to transition to the company and keep their current positions.

Bank of America customers whose accounts are assigned to these specific branch locations do not need to do anything at this time. They should continue to use their Bank of America checks, debit cards and other products and services until they are contacted by Bank of America and then subsequently by Arvest after the transaction is approved.

Arvest Bank enjoys a 12.07% share of the deposits in Arkansas, operating 119 branches. Through three quarters of 2012 Arvest posted net income profits of $61.58 million for its combined operations in four states.

University of Arkansas professor and banking analyst John Dominick says the deal looks like a win-win for the two parties involved.

"Bank of America routinely audits its branches for profitability and this past year has been streamlining its operations. This deal gives Arvest the opportunity to grow in markets where its brand is already at work. This is a fairly efficient way for large community banks like Arvest to grow within certain regional markets," Dominck said.

Bank of America said in September it would reduce its workforce by 16,000 by year-end. These cuts were part of a massive overhaul announced in late 2011 – 30,000 jobs over the next two years to save $5 billion annually.

Since taking the helm in 2010, CEO Brian Moynihan has been working to streamline and reduce risk at Bank of America by selling off assets and business units not considered essential.  The bank had 275,460 employees at the end of the second quarter, down about 3% since Moynihan became CEO.