Most area banks see decline in first quarter income

The first quarter of 2009 was not favorable in terms of income growth for most banks based in the Fort Smith metro area.

A The City Wire review of the federal reports of 13 locally-based banks in the Fort Smith metro, showed that the combined net income at the banks (see info below) was $7.84 million, down 20.3% compared to the $9.84 million collectively earned by the 12 banks in the first quarter of 2008.

“This may be oversimplified, but the cause of that (decline in income) is a decrease in loan demand and an increase in loan loss reserves,” said John Taylor, senior vice president with John Taylor Financial in Fort Smith and a board member of Fort Smith-based Benefit Bank. “That will vary from bank to bank, but that’s the generic reason.”

Taylor suspects most banks are seeing a “substantial” decline in consumer and commercial loans — two big sources of income for banks.

First National Bank of Fort Smith, the largest area bank with more than $1 billion in assets, posted first quarter net income of $2.29 million, down 35% from the first quarter of 2008, according to reports with the Federal Deposit Insurance Corp. (FDIC).

However, Booneville-based First Western Bank may be seeing an end to its financial problems. The bank, which invested heavily in residential and commercial construction in Northwest Arkansas, was beset with a loss of $1.43 million in 2008. The bank posted first quarter net income of $114,000, a big swing from a first quarter 2008 loss of $118,000.

The other banks posting first quarter net income gains were:
Allied Bank (Mulberry)
Q1 2009: $490,000
Q1 2008: $476,000

The First National Bank at Paris
Q1 2009: $416,000
Q1 2008: $415,000

National Bank of Sallisaw
Q1 2009: $282,000
Q1 2008: $239,000

Deposits with banks based and operating in the Fort Smith region totaled $4.03 billion in 2008, up 4.8% over the $3.84 billion in 2007, and up 30.6% over the $3.09 billion in deposits in 2000. According to federal figures, there were 23 banks and 128 bank facilities operating in the Fort Smith metropolitan statistical area in 2008. In 2000, there were 24 banks and 113 bank facilities in the area.

Following are financial details of 13 banks and a thrift based in the Fort Smith area that are monitored by The City Wire. (Banks listed in order of asset size. All figures in $000.)

• The First National Bank of Fort Smith
Average Assets
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$1,000,050           $787,492                $845,687  
 
Net income
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$2,293                $3,570                    $8,901      

Total interest income
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$12,361                 $12,563                 $54,996

Cash dividends declared
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$0                       $0                          $7,000                     

Total non-current loans and leases
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$9,431                 $19,198                 $7,592 

All other real estate owned
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$24,125               $4,028                   $23,254

• Citizens’ Bank & Trust, Van Buren (owned by First Bank Corp., the parent company of The First National Bank of Fort Smith)
Average Assets
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$328,783             $304,128                $320,794  
 
Net income
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$1,189                 $1,264                   $4,797      

Total interest income
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$4,706                 $5,251                   $20,473

Cash dividends declared
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$0                       $0                           $3,600                     

Total non-current loans and leases
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$2,564                 $3,366                    $2,281 

All other real estate owned
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$4,304                 $2,400                    $4,269

• First Western Bank, Booneville
Average assets
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$288,912             $302,109               $297,090
 
Net income
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$114                   -$118                      -$1,437 

Total interest income
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$3,916                $4,731                    $17,055     

Cash dividends declared
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$0                         $0                       $0             

Total non-current loans and leases
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$5,267                 $11,698                 $5,101

All other real estate owned
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$12,496                $3,843                  $14,196

• Benefit Bank (a thrift, regulated by the Office of Thrift Supervision)
Average assets
Mar. 31, 2009      Mar. 31, 2008      
$220,499             $160,059
 
Net income
Mar. 31, 2009      Mar. 31, 2008
$470                    $606

Total interest income
Mar. 31, 2009      Mar. 31, 2008
$3,220                $2,938 

Cash dividends declared
Mar. 31, 2009      Mar. 31, 2008
$238                    $470      

Total non-current loans and leases
Mar. 31, 2009      Mar. 31, 2008
$1,403                 $5,422

All other real estate owned
Mar. 31, 2009      Mar. 31, 2008
$43                     $69

• First National Bank of Sallisaw
Average assets
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$204,592              $195,176               $200,183
 
Net income
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$706                   $990                   $3,609     

Total interest income
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$2,528                 $2,981                   $11,395       

Cash dividends declared
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$700                    $950                     $3,240               

Total non-current loans and leases
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$139                     $1,252                  $46

All other real estate owned
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$225                     $0                         $325

• Farmers Bank of Greenwood
Average assets
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$192,181              $193,634               $193,386
 
Net income
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$612                   $638                        $2,478   

Total interest income
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$2,821                 $3,115                $12,097    

Cash dividends declared
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$1,500                  $2,000                   $2,000   

Total non-current loans and leases
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$332                     $165                     $280

All other real estate owned
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$1,234                  $701                     $1,157

• The Central National Bank of Poteau
Average assets
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$186,703              $172,701              $177,899
 
Net income
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$999                    $1,094                    $4,100  

Total interest income
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$2,592                $2,897                 $10,701  

Cash dividends declared
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$0                        $0                          $3,378 

Total non-current loans and leases
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$3,469                  $968                   $3,790 

All other real estate owned
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$1,345                 $289                      $1,196

• The Community State Bank (Poteau)
Average assets
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$153,993              $129,977               $137,095
 
Net income
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$76                      $327                       $1,106

Total interest income
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$2,135                  $2,234                   $9,016  

Cash dividends declared
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$0                       $0                          $180         

Total non-current loans and leases
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$875                   $1,106                  $1,409

All other real estate owned
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$421                     $176                     $184

• Allied Bank (Mulberry)
Average assets
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$144,400              $132,009              $134,619
 
Net income
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$490                    $476                      $1,864

Total interest income
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$2,088                  $2,269                   $8,573    

Cash dividends declared
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$371                   $200                       $1,187

Total non-current loans and leases
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$207                     $62                        $118

All other real estate owned
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$594                    $525                      $2,264

• The First National Bank at Paris
Average assets
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$111,703              $102,254              $105,956
 
Net income
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$416                    $415                   $1,393

Total interest income
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$1,531                 $1,596                   $6,405   

Cash dividends declared
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$0                         $0                        $1,036   

Total non-current loans and leases
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$1,312                  $1,368                   $1,317
 
All other real estate owned
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$260                      $3                         $268

• National Bank of Sallisaw
Average assets
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$99,726                $94,606                 $96,154
 
Net income
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$282                     $239                  $951

Total interest income
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$1,152                  $1,420                   $5,138     

Cash dividends declared
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$0                         $0                        $900     

Total non-current loans and leases
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$1,664                  $1,469                      $2,060

All other real estate owned
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$1,523                  $702                      $1,620
 
• First Community Bank of Crawford County
Average assets
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$81,006                $69,842                 $73,101
 
Net income
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$32                      $135                      $431

Total interest income
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$1,148                  $1,121                   $4,472    

Cash dividends declared
(no dividends paid in any period)    

Total non-current loans and leases
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$520                    $837                      $1,343
 
All other real estate owned
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$985                     $0                          $0

• Logan County Bank (Scranton)
Average assets
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$65,768                $63,623                 $64,599
 
Net income
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$161                     $206                     $606

Total interest income
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$859                    $919                     $3,605     

Cash dividends declared
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$40                      $60                      $220

Total non-current loans and leases
Mar. 31, 2009      Mar. 31, 2008        Dec. 31, 2008
$315                     $371                     $382

All other real estate owned
(no real estate owned for any period)