First National Bank Targets NWA to Continue Growth

The president and CEO of one of the state’s fastest-growing banks is just fine with no one knowing about it.

Donald Guinn does not seek attention, nor is he comfortable with touting his organization’s success.

“We like to keep things low key,” he said. “We won’t be on any billboards anywhere.”

Instead, the numbers will do just fine to illustrate the success of family-owned First National Bank of Paragould.

Consider the data: At the end of 2009, FNB, according to the Federal Deposit Insurance Corp., was the 18th-largest of the 134 banks headquartered in Arkansas, with assets of $633.6 million.

By the end of last year, the bank was the 11th-largest of the state’s 107 banks, with deposits of $850.6 million.

That’s a 34 percent increase in the last five years. FNB has also grown deposits by 34 percent and its loan portfolio by 43 percent in that time.

Despite the rapid growth, Guinn maintains the bank’s personal customer service remains unchanged — and its most important asset.

“We’re large enough to serve you, but still small enough to know you,” Guinn said.

Now, the bank is poised to augment its organic growth by entering the Northwest Arkansas market, one of the fastest-growing metro areas in the country. The bank’s holding company, First Paragould Bankshares Inc., closed Oct. 1 on a $12.2 million purchase of five empty bank branches belonging to Pine Bluff-based Simmons First National Bank in Benton and Washington counties.

Two of those locations are now open — a 22,854-SF branch at 3701 Pinnacle Hills Parkway in Rogers opened in November, and a 3,552-SF branch at 300 S.E. Walton Blvd. in Bentonville opened in February.

A third, at 2691 E. Mission Blvd. in Fayetteville, should be approved to open by June. Two others in Springdale and Johnson will open their doors by the end of the year.

“It’s pretty obvious [Northwest Arkansas] is a dynamic community,” Guinn said. “Our organization was poised for growth, and when you’re a bank that is prepared for growth, it’s an area you want to be a part of. And we are humbled to be a part of it.”

The FDIC numbers are just one way to illustrate the strength of FNB, which is up to about 170 employees, Guinn said. Florida-based research firm Bauer Financial has been reporting on and analyzing the performance of U.S. banks and credit unions since 1983, and ranks FNB among the strongest banks in the nation.

Every three months, Bauer analyzes the financial condition of all banks based on regulatory information and, as part of the analysis, assigns each bank a rating from one to five stars.

FNB is among a group of 5 percent of all banks nationwide that have maintained a five-star rating for at least 25 years.

Guinn said FNB has hired about 15 employees in Northwest Arkansas, and anticipates initial staffing of up to 35 employees when the remaining branches open.

He has also been commuting weekly from Paragould to Northwest Arkansas to oversee the bank’s startup as market manager. He and his family will relocate permanently during the summer.

Guinn, a southeast Missouri native who has been with FNB for 25 years, said the bank has so far booked more than $30 million in loans in Northwest Arkansas, with several loans “in the pipeline.”

Mike Swanson, Rae Segura, Chasadee Bohannon and Rebecca Edwards are managing the lending efforts.

“We’re very pleased with where we are,” Guinn said.