Icon (Close Menu)

Logout

Bank of the Ozarks Contributes to Statewide Deposit Growth

3 min read

Arkansas bank deposits grew at a 7.5 percent clip in the year that ended June 30, handily beating the national growth rate and topping $60 billion for the first time as the number of separate bank charters and branch locations continued to decline.

More than $2 billion of the state’s $4.28 billion in additional deposits flowed to Bank of the Ozarks, the fast-growing publicly traded bank headquartered in Little Rock. With Arkansas deposits of $5.42 billion, up 61 percent from $3.37 billion in mid-2015, Bank of the Ozarks moved from No. 7 last year to No. 2, passing Bank of America, Regions Bank, First Security Bank, Simmons Bank and Centennial Bank.

Arvest Bank still had the most Arkansas deposits as of June 30, $7.67 billion, but Bank of the Ozarks overtook Arvest as the largest bank chartered in Arkansas ranked by total assets when it completed two acquisitions in July.

The Federal Deposit Insurance Corp. released its annual summary of deposits Friday. It is an accounting taken at midyear by the government agency that insures bank deposits. It is not a holistic report card on the health of a bank or of the banking industry, but it is the only official report that provides Arkansas-specific trend data for multistate banks like Arvest, Regions and Bank of America.

BOZ did not immediately respond to a request for comment on Friday morning. Its June 30 call report filed with the FDIC showed that its brokered deposits — bundled deposits that banks seek out to supplement “core” customer deposits in order to fund loan demand — had tripled from $501 million to $1.5 billion in 12 months.

Last year, when the summary of deposits showed a 22 percent growth in Arkansas deposits from mid-2014 to mid-2015, BOZ’s chief operating officer, Tyler Vance, credited winning bids on public deposits from state agencies and municipalities across the state.

Below is a list of the 20 banks with the most in-state deposits. In-state mergers brought two of them into the top 20: Farmers & Merchants Bank of Stuttgart, which acquired Bank of Fayetteville in November, and Citizens Bank of Batesville, which acquired Parkway Bank of Rogers in December.

Those acquisitions explain why the total number of banks doing business in the state as of June 30, 127, was down by two from a year earlier. The number of separate bank branch locations, 1,354, was down by 11 from mid-2015. The number of branches has declined by 10 percent from the peak in mid-2008.

Top 20 Banks in Arkansas by Deposit

  Institution Name HQ
State
No. of Branches 2016 Deposits Change in Deposits (2015-16) Market Share
(June 2016)
Change in Market Share (2015-16)
1 Arvest Bank AR 117 $7,674,575 7.21% 12.63% -0.32%
2 Bank of the Ozarks AR 81 $5,417,588 60.96% 8.91% 49.50%
3 Bank of America NC 23 $4,193,480 4.23% 6.90% -3.09%
4 Regions Bank AL 95 $4,127,862 7.32% 6.79% -0.29%
5 Centennial Bank AR 80 $3,819,469 10.61% 6.28% 2.78%
6 Simmons Bank AR 85 $3,697,837 4.68% 6.08% -2.72%
7 First Security Bank AR 77 $3,616,454 -0.05% 5.95% -7.03%
8 BancorpSouth Bank MS 46 $1,637,464 0.02% 2.69% -7.24%
9 Bear State Bank AR 35 $1,226,888 6.32% 2.02% -0.98%
10 IberiaBank LA 23 $1,162,085 -6.78% 1.91% -13.57%
11 First National Bank of Fort Smith AR 18 $976,082 3.80% 1.61% -3.01%
12 U.S. Bank OH 42 $949,167 0.63% 1.56% -6.59%
13 Farmers Bank & Trust (Magnolia) AR 20 $936,693 3.53% 1.54% -3.75%
14 First National Bank (Paragould) AR 14 $863,680 15.22% 1.42% 6.77%
15 Farmers & Merchants Bank (Stuttgart)* AR 19 $811,880 2.78% 1.34% -4.29%
16 First Community Bank (Batesville) AR 13 $789,037 14.23% 1.30% 6.56%
17 Southern Bancorp Bank AR 24 $763,909 0.11% 1.26% -6.67%
18 Wells Fargo Bank SD 3 $615,417 2.48% 1.01% -4.72%
19 Citizens Bank (Batesville)** AR 18 $569,168 5.55% 0.94% -1.05%
20 Chambers Bank AR 18 $552,788 -4.46% 0.91% -10.78%

*Acquired Bank of Fayetteville on Nov. 30, 2015; 2015 deposits have been combined for comparison
**Acquired Parkway Bank of Rogers on Dec. 22, 2015; 2015 deposits have been combined for comparison
Dollars in thousands

Send this to a friend