Ups and downs noted in Fort Smith regional banking sector

With all the changes in the Fort Smith regional banking community in the past 8 years, two things are certain: First National Bank of Fort Smith is solid in its position as the market share leader; and BancorpSouth is likely to lose its No. 2 spot to Arvest before the decade expires.

The regional market share position (based on deposit figures from the FDIC; all figures as of June 30 in the respective year) in 2000 was:
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

Between 2000 and 2002, Tupelo, Miss.-based BancorpSouth bought the parent company of City National Bank. Also in that time, Bentonville-based Arvest Bank began its entry into the Fort Smith regional banking market.

The regional market share position in 2002 was:
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

In the next four years, the banking community would change, primarily from the $211 million acquisition of Little Rock-based Superior Federal by Arvest Bank. That purchase allowed Arvest to almost overnight boost its market share, and allow the bank to challenge BancorpSouth for the No. 2 spot. The year also was the last Regions Bank would hold a top five market spot in the Fort Smith region. Regions Bank had 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.

The regional market share position in 2006 was:
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 market share position for BancorpSouth took a big hit between 2006 and 2008, with the bank’s Fort Smith area deposits declining 13.3%. Arvest saw its Fort Smith regional deposits jump more than 18% in the same period.

The regional market share position in 2008 was:
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

Deposits with banks in the Fort Smith metro area totaled $4.036 billion as of June 2008, up more than 30% over the $3.089 billion posted in June 2000. The number of bank offices in the metro area increased from 113 in 2000 to 124 in 2008. Arvest added 12 in the 8-year period (from 4 to 16 bank offices; most of those from the Superior deal), while BancorpSouth-City National Bank cut its bank presences from 11 to 10 offices.