Chris Gosnell on How Arkansas Banks Are Preparing for 2026 in a Changing Economy

Chris Gosnell, President & CEO of Farmers Bank & Trust. (Photo provided)

Gosnell is the chair of the Arkansas Bankers Association. 

What is your biggest concern for 2026?

Fraud and cybersecurity are continuing concerns for our bank and our industry. Technology is moving fast and how best to protect our customers is ever changing. The housing market is a major concern with continued rising costs in construction, insurance and utilities. Despite the decrease in rates, mortgage rates remain elevated. This combination is making it difficult for consumers to live the American dream of home ownership.

How is Arkansas’ banking industry feeling about the interest rate environment?

Overall, Arkansas banks are in good condition and anticipate moderate activity increase in 2026. The interest rate environment has improved after quarter-point rate cuts in September, October and December 2025. These cuts make the environment more borrower-friendly and will likely cause customers in a “hold” position on their projects to progress.

What do you wish more businesses knew or did before approaching their bank for capital? 

Be an open book and never hide bad news. Bankers know it is not a perfect world all the time. Whether the customer is a startup business or 100 years old, embrace the information-gathering process. Often, the customer learns something about their business they did not know before.

What is the role of bank branches in the age of digital banking, fintechs and apps?

Customer education. While digital banking, fintechs and apps are extremely powerful, the customer must learn to use them effectively. Bank branches have expertise along with other services not currently provided by technology, such as notaries, trust and wealth management services, treasury services and more. At this point, technology is unable to communicate experience. Branch personnel have seen most issues regarding finances and how to successfully navigate them. This is invaluable.

President Donald Trump has suggested introducing a 50-year mortgage. What are the pros and cons of a 50-year mortgage? 

The pros are lower monthly payments, more flexibility if serviced correctly and easier qualifications. Just because a borrower has a 50-year mortgage, that doesn’t mean they could not pay a 30-year payment when able. If a borrower were under financial stress, the option for a lower required mortgage payment would provide some relief, reducing the risk of default. The cons are slower building of home equity and very interest heavy, and it is likely home prices will increase. If making the minimum required 50-year mortgage payment, the mortgage balance will stay higher longer because the borrower is paying much more interest to the bank than they are the principal amount. This would slow equity in the home.

How are Arkansas bankers attracting young customers?

Arkansas bankers continue to make banking easier through digital channels, bringing most services to customers’ mobile devices. In banking apps, customers can not only view balances and transfer money, but utilize financial tools, purchase securities, apply for credit cards or loans, view their credit scores, and even speak with a live person via text, chat or video. But what makes Arkansas bankers different is you know the people behind the screens. One of the ways Arkansas bankers stand out from others is the relationships built with their customers. This is rarely the case with larger national banks.

How concerned are Arkansas farm lenders about the difficult financial situation row crop farmers are facing? 

Very concerned. Arkansas has seen record exits from farmers in the past 12 months, calling for much needed financial relief. While some relief has come from a federal level, it falls short of what is needed. The rising costs associated with farming, crop prices and tighter credit standards have been overwhelming. There are longer term concerns with farming as an occupation not appealing to the younger generations.

What legislative initiatives is the Arkansas Bankers Association focused on nationally and statewide? 

Currently, Rep. French Hill, R-Ark., chair of the U.S. House Committee on Financial Services, has introduced the Main Street Capital Access Act, which has become a large focus in Arkansas and nationally. This has many parts, but overall it reduces redundant data collection and restrictions on funding, giving the ability for banks to allow consumers easier access to credit.  

What is the best book you’ve read recently? 

”The Ruthless Elimination of Hurry” by John Mark Comer. It’s a great book about how to stay healthy in every aspect of life in today’s chaotic world.