Bank Deposits in NWA Decrease 4.8 Percent

Insured bank deposits shrank slightly in Northwest Arkansas during the 12-month period that ended June 30, according to the latest deposit market share data from the Federal Deposit Insurance Corp.

FDIC-insured bank deposits in the six-county region that make up the local market shrank 4.8 percent to $11.7 billion, down from $12.3 billion in the same period a year ago (see list here).

Deposit market share data for all of the state’s banking institutions was released Sept. 30 by the FDIC. Collectively, Arkansas banks had total bank deposits of $53.1 billion, down slightly from $53.4 billion a year ago.

The FDIC takes a snapshot of bank deposits on June 30 of each year and releases that data in the fall, and the Northwest Arkansas Business Journal took a look at how some of the area’s banks fared.

The data, though helpful in showing general trends, should not be taken as a report on a bank’s overall health.

Fayetteville-chartered and Walton family-owned Arvest Bank is, of course, still the local deposit leader with $4.5 billion, or 37.9 percent of all deposits in the six-county area.

That is down just slightly, however, from an overall market share of 40.9 percent ($5.0 billion) a year earlier.

The bank is the market deposits leader in Benton (56.8 percent), Madison (48.8 percent) and Washington (39.0 percent) counties.

Statewide, Arvest’s deposits mirrored its drop in the six-county region locally, falling about 4 percent to $6.2 billion.

Louisiana-based IberiaBank, a subsidiary of IberiaBank Corp., a multi-bank financial holding company, was a big mover in the area’s two largest counties, adding a combined $31.1 million in insured deposits.

In Washington County, the bank’s deposits at its four branch locations grew by nearly 30 percent in the last year, from $40.6 billion in 2012 to $52.6 billion. The growth represented the greatest year-over-year increase among the 21 banks doing business in Washington County.

The bank added $19.1 million in deposits at its three Benton County locations to bring its deposits there to $90.7 million, an increase of 26.7 percent.

“As we all know, bank deposits fluctuate, and bank deposits, in general, are only a measurement from any given point in time,” said Pete Yuan, the bank’s regional president for the Arkansas market. “Having said that, we have grown. Northwest Arkansas is a very competitive market, and I am very proud of the effort of our staff.”

IberiaBank’s growth in Benton County from June 2012 to June 2013 is especially notable, considering the company went from four branches to three during the 12-month period.

The company exited its Bella Vista location in November 2012. There are existing locations in Rogers (2) and Bentonville.

“We did lose some clients, honestly, but the fallout was not that much,” Yuan said of the Bella Vista closure. “They sought out our other branches, and I would like to think they liked our service and that is why they stayed.”

In the six-county coverage area, the largest drop in the market was in Benton County, which saw deposits decrease from $4.7 billion in June 2012 to $4.1 billion in June this year. That’s a decrease of 12.7 percent.

Carroll County saw the largest increase in wealth, with a 4.4 percent increase in deposits from $520.3 million in 2012 to $543.5 million this year.

There are 41 banks doing business in the six-county area with 308 branches between them. Arvest has the most local branches with 66 locations.

First Security Bank and First National Bank of Fort Smith each have 16 branches, Liberty Bank of Arkansas has 15 branches and Bank of the Ozarks has 14 branches.

Richest Bank Branches

The FDIC data also shows where bank deposits are distributed among Northwest Arkansas branch locations.

The top 15 banks ranked by total local deposits as of June 30 had $3.7 billion in total deposits in the six-county area. About a fifth of that wealth — 21.3 percent — is, not surprisingly, in downtown Bentonville.

The Arvest branch at 201 N.E. A St. is the richest bank branch in Northwest Arkansas, with $791.9 million in deposits.

It’s one of seven bank locations in the six-county area with more than $200 million in deposits — two in Fayetteville, two in Fort Smith and one each in Bentonville, Springdale and Rogers.