First National Bank tops in deposits, BancorpSouth moves up

First National Bank of Fort Smith maintains its market share strength in the Fort Smith region, with BancorpSouth moving past Arvest Bank for the No. 2 regional market share spot.

Figures recently released by the Federal Deposit Insurance Corp. (FDIC) show First National Bank with $731.931 million in deposits, or 17.25% of the regional market share as of June 30, 2010. The bank’s market share grew from 16.96% at June 30, 2009 and 16.65% as of June 30, 2008.

“Obviously, we’re pleased with it,” said Sam T. Sicard, executive vice president with First National Bank and board member of First Bank Corp., the holding company of First National Bank, Citizens Bank & Trust in Van Buren, National Bank of Sallisaw, Bank of Rogers and Brown-Hiller-Clark & Associates.

Sicard said aggressive programs like a 3.15% max checking program have helped grow deposits.

“The new programs have helped (bring in new accounts), and we’ve done a good job of keeping our existing customers,” Sicard explained.

How consistent has been the market share of First National Bank over the years? The bank’s market share in 1995 was 17.27%.

While it was no surprise that First National maintained its top spot, it was interesting to see Lowell-based Arvest fall a spot to No. 3.

BancorpSouth had 13.29% ($563.62 million in deposits) of the market share as of June 30, 2010, up from 11.39% in 2009. Arvest fell to 11.31% ($479.969 million in deposits) of the market share in 2010 from 11.59% in 2009. Between 2000 and 2002, Tupelo, Miss.-based BancorpSouth bought the parent company of City National Bank. Also in that time, Arvest began its entry into the Fort Smith regional banking market.

“We have had significant growth due to great customer service and our customers’ interest in keeping more funds with us because of our strength and stability,” BancorpSouth noted in a statement. “In addition to the great growth experienced in our regular deposit products, we are fortunate to be the bank to many public fund entities. As the economy has driven down rates, these entities have decided to keep funds in our money market accounts.”

In 2003, Arvest launched its $211 million acquisition of Little Rock-based Superior Federal. That purchase allowed Arvest to almost overnight boost its Fort Smith regional market share, and allow the bank to challenge BancorpSouth for the No. 2 spot. Arvest added 13 Fort Smith area bank offices in the past nine years (from 4 to 17 bank offices; most of those from the Superior Federal acquisition), while BancorpSouth-City National Bank cut its bank presences from 11 to 10 offices.

Craig Rivaldo, president and CEO of Arvest’s Fort Smith-River Valley division, was not happy with the slip, but kept it in perspective.

“We’re pleased to be in the top three considering that 11 years ago Arvest wasn’t in the area,” Rivaldo said.

Arvest, now a large regional financial company originally created by Wal-Mart heir Jim Walton, is likely to remain in the top five for years to come. Arvest operates more than 200 locations in 16 locally-managed markets in Arkansas, Kansas, Missouri and Oklahoma. Total assets exceed $10 billion, making Arvest the largest bank in Arkansas ranked by deposits, and the largest bank in Oklahoma ranked by number of locations.

Rounding out the top five Fort Smith area market share leaders in 2010 were Citizens Bank & Trust in Van Buren (7.46%; $316.462 million) and Regions Bank (6.71%, $284.535 million). The 2010 report marks the first time Regions has been in the top five since 2003. Regions Bank in the 1990s acquired — through a series of bank acquisitions — the assets of Merchants National Bank, once a bank that challenged First National for the top spot.

Fort Smith-based Benefit Bank posted an impressive market share gain between 2008 and 2010. The bank boosted its market share to 4.3% in 2010, up from 3.42% in 2008. Benefit Bank had $182.463 million in deposits as of June 30, 2010, up more than 32% compared to the June 30, 2008 report. The bank also moved from 11th to 8th in terms of market share in the Fort Smith regional market.

Deposits with banks in the Fort Smith metro area totaled $4.242 billion as of June 2010, up 4.17% compared to June 2009 and up 37.3% over the $3.089 billion posted in June 2000. The number of bank offices in the metro area increased from 113 in 2000 to 128 in 2010.

CENTRAL ARKANSAS
In the Little Rock-North Little Rock metro area, Bank of America holds the top market share position in a market with $13.595 billion in deposits and 350 offices as of June 30, 2010. The top five market share leaders are:
• Bank of America: 18.63%, $2.533 billion in deposits
• Regions Bank: 13.87%, $1.885 billion
• Centennial Bank: 11.45%, $1.557 billion
• Metropolitan National: 7.81%, $1.061 billion
• Bank of the Ozarks: 7.11%, $966.787 million

Banks in the top five spots are unchanged from 2009. Arvest is seventh in the Central Arkansas metro area with 5.75% of the market share, and BancorpSouth is 13th with 1.3% of the market.

NORTHWEST ARKANSAS
In the Northwest Arkansas metro area, Arvest has 41.65% of the market share — a dominance not seen in most U.S. metro areas. The metro area had $7.491 billion in deposits and 221 offices as of June 30, 2010. The top five market share leaders are:
• Arvest Bank: 41.65%, $3.12 billion in deposits
• First Security Bank: 6.52%, $488.322 million
• Signature Bank: 5.76%, $431.254 million
• Bank of Fayetteville: 4.53%, $339.608 million
• Bank of America: 3.41%, $255.198 million

First National Bank of Fort Smith, through its Bank of Rogers ownership, has 1.82% of the market with $136.062 million in deposits. It is ranked 15th in market share in that metro area.

STATEWIDE
Arvest’s dominance in the Northwest Arkansas sets it up as the largest bank in Arkansas with $4.855 billion in deposits, or 9.54% of the state’s market share. The banking company’s Northwest Arkansas deposits are 64.2% of its overall state amount. The top 5 banks by state market share of total deposits are:
• Arvest: 9.54%, $4.855 billion in deposits
• Regions Bank: 8.68%, $4.418 billion
• Bank of America: 6.39%, $3.252 billion
• First Security Bank: 5%, $2.545 billion
• BancorpSouth: 3.7%, 1.882 billion

First National Bank of Fort Smith has 1.71% of the state’s market share with $867.993 million in deposits. The bank is 12th in terms of state market share.

TOP 5 FORT SMITH REGIONAL MARKET SHARE SHIFTS — 2010-2000
(based on deposit figures from the FDIC; all figures as of June 30)
• The regional market share position in 2010
First National Bank: 17.25%, $731.931 million in deposits
BancorpSouth: 13.29%, $563.62 million
Arvest Bank: 11.31%, $479.969 million
Citizens Bank & Trust: 7.46%, $316.462 million
Regions Bank: 6.71%, $284.535 million

• The regional market share position in 2009
First National Bank: 16.96%, $690.79 million in deposits
Arvest Bank: 11.59%, $471.9 million
BancorpSouth: 11.39%, $463.83 million
Bank of the Ozarks: 7.21%, $293.56 million
Citizens Bank & Trust: 7.06%, $287.7 million

• The regional market share position in 2008
First National Bank: 16.65%, $671.98 million in deposits
BancorpSouth: 11.99%, $483.98 million
Arvest Bank: 11.3%, $456.12 million
Bank of the Ozarks: 7.85%, $316.74 million
Citizens Bank & Trust: 7.11%, $286.84 million

• The regional market share position in 2006
First National Bank: 16.95%, $627.66 million in deposits
BancorpSouth: 15.08%, $558.50 million
Arvest Bank: 10.42%, $385.74 million
Bank of the Ozarks: 8.98%, $332.32 million
Citizens Bank & Trust: 6.78%, $251.04 million

• The regional market share position in 2002
First National Bank: 16.68%, $541.99 million in deposits
BancorpSouth: 15.88%, $516.19 million
Superior Federal: 10.13%, $329.17 million
Regions Bank: 7.75%, $251.77 million
Bank of the Ozarks: 6.28%, $203.98 million

• The regional market share position in 2000
First National Bank: 16.09%, $497.12 million in deposits
City National Bank: 15.32%, $473.21 million
Regions Bank: 11.13%, $343.86 million
Superior Federal: 9.71%, $299.94 million
Bank of the Ozarks: 7.09%, $219.11 million