Beneficial Move

Fort Smith-based Benefit Bank is planning to increase its visibility in Springdale.

The bank has operated a loan production office on the west side of Springdale since June 2008. It now wants to open a full-service branch on Arkansas Highway 412, pending approval from the Arkansas State Bank Department.

Benefit Bank submitted an application to the department Aug. 14 for a branch location at the corner of Arkansas 412 and Founders Park Drive West.

Bank president and CEO Joe Edwards Jr. said the undeveloped 2-acre lot, owned by an entity managed by Blake Hanby called NWA Holdings LLC, is under contract, contingent upon a successful review of the branch application.

The property is just a few hundred yards south of Benefit’s current LPO, hidden away in a strip center at 6800 Isaac’s Orchard Road.

Benefit Bank, chartered in 1999 as a savings and loan thrift, was approved for a state bank charter in June. It had total assets of $187 million in 2013 — a 13 percent decrease from $215.6 million in 2008 — and net income of $1.08 million. The bank had a return on assets (ROA) ratio of 0.56 percent.

Edwards said once regulatory approval is received, he is hopeful the bank will be allowed to operate temporarily as a full-service branch at its current LPO until the new bank branch is constructed.

Edwards said the bank originally planned to build a branch several years ago, but when the economy worsened, that plan was put on hold and a LPO was opened instead.

“At that time we were covered up with challenges much greater than building a new branch,” he said. “But we have been pleased with the response in Northwest Arkansas. We’re excited you guys are doing as well as you are up there.”

According to the most recent demographic data from the FDIC, as of June 30, 2013, there were 31 banking offices in Springdale, down from 36 in 2009.