First National Bank, Arvest lead in deposit market share

Fort Smith-based First Bank Corp. continues to hold the dominant bank deposit market share position in the Fort Smith region, with Bentonville-based Arvest Bank retaining the top market share position in Arkansas.

According to a Federal Deposit Insurance Corp. report released Tuesday (Oct.4), First National Bank of Fort Smith had $772.809 million in deposits, or 17.88% of the regional market share as of June 30, 2011. The bank’s market share grew from 17.25% as of June 30, 2010, and 16.96% at June 30, 2009.

"We are pleased to see an increase in market share for First National in Sebastian County and for First Bank Corp in the Fort Smith MSA,” noted First Bank Corp. President and CEO Sam Sicard. “We have been fortunate to have a loyal customer base and dedicated employees who are committed to those they serve.  Our growth in market share over the last decade supports our belief that the communities we serve value having a local bank where local decisions are made.”

COUNTY DATA
The market share position for First National is even more impressive when reviewing the county-level data. In Sebastian County, First National Bank has 30.96% of the deposit market share. Tupelo, Miss.-based BancorpSouth was second with 20.68% of the market and Arvest at 13.79%.

In 2001, First National Bank’s deposit market share in Sebastian County was 27.65%.

In Crawford County, the second largest county in the metro area, Citizens Bank and Trust captured 45.19% of the deposit market share. Citizens is owned by First Bank Corp., the parent company of First National Bank of Fort Smith. BancorpSouth had the second largest deposit market share in Crawford County with 9.58%, and Little Rock-based Bank of the Ozarks had 9.32% of the market.

“I am very proud that we (First National) have steadily increased deposit market share in Sebastian County over the last decade despite all the competition we have faced,” Sicard noted in an e-mail message to bank employees. “Being at the top is hard, but growing market share while at the top is a real accomplishment. We are blessed to have dedicated employees and a loyal customer base.”

First Bank Corp’s subsidiary in Sequoyah County (Oklahoma), National Bank of Sallisaw, had 21.7% of the county’s deposit market share. The share was third in the county, with First National Bank of Sallisaw at 39.8% in first place and Armstrong Bank at 33.5%.

FORT SMITH REGION
Following First National Bank’s first place spot was BancorpSouth with 13.25% ($572.882 million in deposits) of the market share as of June 30, 2011, down slightly from 13.29% in 2010. Arvest was third in the region with to 11.01% ($476.107 million in deposits) of the market share in 2011, down from 11.31% in 2010. 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.

In 2003, Arvest bought Little Rock-based Superior Federal in a $211 million deal. 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.

“(W)e are very pleased that we basically stayed even on Market Share and consider the difference minimal. I am sure you recall that Market Share is based on a one day picture for banks, so fluctuation occurs daily,” noted local BancorpSouth spokeswoman Saundra Lockhart.

Craig Rivaldo, CEO of Arvest’s Fort Smith-River Valley division, said the low-interest rate environment has changed the banking dynamic by pushing money out of deposits and into areas that might generate better returns.

“Although we have seen a slight reduction in market share of actual bank deposits, we have had a strong growth upward in new Household growth in Fort Smith region as well as growth in our investment brokerage division of Arvest Asset Management,” Rivaldo noted. “Additionally, we have seen tremendous new account activity since Arvest Bank will continue to offer Debit Cards with no charge and Free checking.”

Deposits as of June 30, 2011, totaled $4.322 billion among the 23 separate banks operating in the Fort Smith metro area, up compared to the $4.242 billion in 2010.

CENTRAL ARKANSAS
Bank of America remains at the top of the deposit market share mountain in the Little Rock-North Little Rock-Conway metro area with 18.84% ($2.587 billion). Following second is Regions with 13.49% ($1.851 billion) and third is Centennial Bank with 11% ($1.51 billion).

From 2011 to 2010, Metropolitan Bank fell from fourth to fifth and First Security Bank moved to the fourth spot from its 2010 sixth place spot. Little Rock-based Bank of the Ozarks fell from fifth to the sixth spot in the central Arkansas metro area.

The central Arkansas market had $13.73 billion in deposits as of June 30 2011, up from $13.595 billion as of June 30, 2011. The top five market share leaders are:
Bank of America: 18.84%, $2.587 billion in deposits
Regions Bank: 13.49%, $1.851 billion
Centennial Bank: 11%, $1.51 billion
First Security Bank: 8.71%, $1.195 billion
Metropolitan National Bank: 6.7%, $920.583 million

NORTHWEST ARKANSAS
In the Northwest Arkansas metro area, Arvest had a growing 46.56% of the deposit market share in the region, up 41.65% from the 2010 report. The metro area had $8.229 billion in deposits as of June 30, 2011, up from the $7.491 billion in deposits as of June 30, 2010. The top five market share leaders are:
Arvest Bank: 46.56%, $3.831 billion in deposits
First Security Bank: 7.35%, $604.704 million
Bank of Fayetteville: 3.97%, $327.011 million
Signature Bank: 3.62%, $297.649 million
Bank of America: 3.2%, $263.608 million

First National Bank of Fort Smith, through its Bank of Rogers ownership, has 1.76% of the market with $139.602 million in deposits. It is ranked 16th in market share in that metro area.

STATEWIDE
Arvest’s dominance in Northwest Arkansas again sets it up as the largest deposit market share in Arkansas with $5.578 billion in deposits, or 10.73% of the state’s market share — up from 9.54% in 2010. BancorpSouth fell out of the top five, replaced in 2011 by Jonesboro-based Liberty Bank. The top 5 banks by state market share of total deposits are:
Arvest: 10.73%, $5.578 billion in deposits
Regions Bank: 8.15%, $4.238 billion
Bank of America: 6.44%, $3.348 billion
First Security Bank: 5.85%, $3.043 billion
Liberty Bank: 3.86%, 2.005 billion

First National Bank of Fort Smith has 1.76% of the state’s market share with $912.411 million in deposits, up from 1.71% in 2010. However, the bank fell to 13th from 12th in state market share. If Citizens Bank & Trust were counted with First National, the banking operations would rank 10th in the state with $1.228 billion in deposits.

Percentage deposit growth between 2010 and 2011 was largest in Northwest Arkansas (9.85%), with Fort Smith second (6.13%).

TOP 5 FORT SMITH REGIONAL MARKET SHARE SHIFTS — 2011-2000
(based on deposit figures from the FDIC; all figures as of June 30)
Regional market share position in 2011
First National Bank: 17.88%, $772.809 million in deposits
BancorpSouth: 13.25%, $572.882 million
Arvest Bank: 11.01%, $476.107 million
Citizens Bank & Trust: 7.31%, $315.766 million
Regions Bank: 6.18%, $267.342 million

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

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

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

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

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

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