FDIC: Bank Deposits in NWA Grew 5.5 Percent

Bank deposits in the Northwest Arkansas market grew by 5.5 percent by mid-2015, according to the Federal Deposit Insurance Corp.

The FDIC released its annual Summary of Deposits (SOD) report Sept. 28, which reflects market share data from July 1, 2014, to June 30, 2015.  The report is based on surveys by the FDIC and the Office of Thrift Supervision. All institutions with branch offices are required to submit the survey. The ranking does not include credit unions. 

In total, 40 banks operating 297 branches in the six-county area of Northwest Arkansas — defined as Benton, Washington, Madison, Carroll, Sebastian and Crawford counties — held $12.7 billion in deposits as of June 30, according to the FDIC data (click here to see the list).

Walton-family owned Arvest Bank of Fayetteville, with 67 local branches, held $5 billion in local deposits, representing 39.9 percent of the total deposit market share in the six-county area.

The First National Bank of Fort Smith is a clear No. 2 in local deposits with $923.9 million among its 17 branch locations. Included in those totals is the bank’s local division, First National Bank of NWA, which has four locations in Benton County and one in Washington County.

First Security Bank of Searcy, also with 17 local branches, is No. 3 with $681.4 million in local deposits, followed by BancorpSouth Bank of Tupelo, Mississippi, (10 local branches; $510.8 million) and Bank of America N.A. of Charlotte, North Carolina, (seven local branches; $359.9 million).

For a statewide perspective, the SOD report showed 129 banking institutions in Arkansas combined for 1,365 branch locations as of June 30, down from 1,388 a year earlier.

But even as the number of brick-and-mortar locations dwindled, growth was still evident. During the same 12-month period, deposits in Arkansas grew from $53.8 billion to $56.4 billion, an increase of almost 5 percent.

Arvest Bank, of course, leads the way in statewide branch locations (118) and deposits ($7.1 billion), accounting for 12.7 percent of the market share.

Bank of America N.A. (23 branches; $4 billion), Regions Bank of Birmingham, Alabama (96 branches; $3.8 billion), First Security Bank (78 branches; $3.6 billion) and Simmons First National Bank of Pine Bluff (84 branches; $3.5 billion) round out the top five.

Where’s The Money?

Using the FDIC data, the Business Journal identified the answer to a burning question: Where’s the money?

In the six-county area, the top 20 branches ranked by total deposits as of the June 30 snapshot had $4.8 billion in total deposits (See chart), up 7 percent from June 30, 2014.

The wealthiest branch in Northwest Arkansas by a wide margin is the Arvest Bank branch on Bentonville’s downtown square, which is creeping closer to the $1 billion mark with a total of $914.9 million as of June 30.

In 2013, the deposits at that particular branch totaled $791.9 million, a two-year increase of 15.5 percent.

The second-richest bank branch in Northwest Arkansas is The Bank of Fort Smith branch at 602 Garrison Ave., with $358.1 million in deposits.

Bank of Oklahoma, doing business here as Bank of Arkansas, is next with $317.4 million at its Fayetteville branch location. Arvest Bank at 201 W. Walnut St. in Rogers ($253.5 million) and Legacy National Bank at 4055 W. Sunset Ave. in Springdale ($250.1 million) round out the top five richest branch locations.

Overall, there are 11 bank branches in the six-county area with at least $200 million in insured deposits — four in Fayetteville, two in Bentonville, two in Springdale, two in Fort Smith and one in Rogers.