Arkansas
State of the State 2024: Arkansas banks navigate uncertain interest rate landscape – Talk Business & Politics
Editor’s note: The State of the State series provides reports twice a year on Arkansas’ key economic sectors. The series publishes stories to begin a year and stories in July/August to provide a broad mid-year update on the state’s economy. Link here for the State of the State page and previous stories.
According to the state’s top banking official, the uncertain interest rate environment is the most significant conversation topic entering the year.
“The rate environment is posing headwinds for many institutions, but tailwinds for others,” said Susannah Marshall, Arkansas State Bank Department commissioner. “Especially those that have structured their balance sheets to be in an asset sensitive position and to take advantage of repricing assets at higher interest rates.”
Marshall said banks with strong mortgage divisions bore the brunt of the interest rate volatility in 2023 and will remain impacted until a downward movement emerges.
“I don’t want to attempt to predict what will happen with interest rates in 2024 or the timeframe of any potential rate decreases,” she said. “Regardless of whether we will see any additional increases or rates remain flat for the foreseeable future, I believe any potential declines could be further out in 2024.”
Marshall and other Arkansas banking leaders offered various thoughts on the industry entering 2024. According to the latest data from the Federal Deposit Insurance Corp. (FDIC), 82 federally insured lenders doing business in Arkansas had a cumulative net income of $1.49 billion through the third quarter of 2023, up 4.1% from the previous year. The banks grew their combined assets robustly to $165.6 billion, up 7.3% year-over-year. Loan growth was even stronger at 13.8%. Construction loans accounted for a third of that growth, reflecting the vibrant economy.
Tim Yeager expects banks to remain strong — Arkansas’ average return on assets (ROA) of 1.23% is well above the benchmark ratio of 1% — but they are unlikely to match their 2023 performance.
“The lagged effect from high interest rates will lead to slower loan growth, an increase in problem loans, and a shortage of core [stable] deposits,” said Yeager, a finance professor who holds the Arkansas Bankers Association Chair in Banking at the University of Arkansas. His responsibilities include teaching, research and outreach to Arkansas bankers. “Loan demand will slow as businesses and consumers adjust to higher interest rates. In addition, borrowers will struggle to repay the higher interest payments on their debts, leading to more problem loans.”
Like many analysts, Yeager said he expects the Federal Reserve to lower interest rates in the coming months, which will somewhat reduce the pressure on loan demand and funding costs. He said Arkansas bankers are most concerned about a longer-term issue: the ability to hire and maintain qualified workers. He noted that many top students in finance want careers in investment banking, primarily because they think they can make more money on Wall Street.
That might be true, but he tries to explain that there are other advantages of working for a bank.
“We need to get the message across that this is a soul-fulfilling career,” Yeager said. “You’re going to do well, but will you be a millionaire or a billionaire? It’s less likely. But you will have a much more balanced, satisfactory life by doing this.”
According to the American Bankers Association, Arkansas banks employ around 16,000 people at over 1,000 offices and branch locations and have around 5 million customers.
‘ARTIFICIAL’ ECONOMY
Simmons First National Corp. (Simmons Bank) of Pine Bluff is one of the state’s largest banks, with $27.5 billion in assets. It’s one of four Arkansas-based lenders with assets greater than $21 billion at the end of last year’s third quarter. Bank OZK of Little Rock ($32.7 billion), Arvest Bank of Fayetteville ($27.3 billion) and Centennial Bank of Conway ($21.8 billion) were the others.
George Makris Jr. is the bank’s president and CEO. He said that after a decade marked by growth through acquisition, Simmons Bank is focused on organic growth and efficiency in 2024.
“We acquired 13 banks [in five states] in the past 10 years, which has given us access to some of the best markets,” he said. “We are improving our delivery channels and standardizing many internal functions. That combination should produce favorable financial results leading to capital growth and additional capacity to offer to our customers.”
Makris said the uncertainty around interest rates coupled with government spending and its upward pressure on inflation makes for an “artificial” economy, and that environment will trickle down to consumers.
“Banks are in the risk management business and will shift as much of the risk to the borrower as possible under uncertain times, which will restrict credit access,” he said. “That is more severe for the least credit-worthy borrowers. Loan funding costs and the cost of capital are also negative drivers of access to credit. That said, access to credit is still there for solid projects. Speculative projects will sit on the sidelines.”
Makris joked that his crystal ball has a crack in it, but he predicted that if inflation remains steady for the first half of the year – the current U.S. inflation rate is 3.4% for the 12-month period leading up to December 2023, according to the Bureau of Labor Statistics – a modest rate reduction could come in late 2024.
“However, this is an election year, and whether we like it or not, politics plays a role in many governmental decisions,” he said.
Makris also offered an opinion on artificial intelligence (AI) in banking.
“Banks are certainly aware of the proliferation of AI discussion,” he said. “That has driven much of the buzz for tech stocks. However, I believe we need to be very cautious and deliberate in advancing AI. It will be used for nefarious purposes well before we have maturity and risk protocols to mitigate bad actors.
“The other element not discussed much is who is teaching AI to deploy its logic. Banks have been using variations of AI to determine probability, relationships and other integrated data sets.”
Marshall also alluded to the increasing threat landscape regarding cyber risks and their impact on the industry.
“This increasing risk also translates into increased costs and pressure on resources,” she said. “Unfortunately, many comments I have received lately center around bankers’ concerns about the increases in fraud attacks on their customers and the impact it is having on the industry.”
Arkansas
Arkansas basketball stars Meleek Thomas, Trevon Brazile selected in NBA Draft second round | Whole Hog Sports
Arkansas
Arkansas Athletics, CommunityAmerica Credit Union launch multi-year partnership including Razorback Stadium naming rights
FAYETTEVILLE, Ark. – The University of Arkansas Department of Athletics has signed a long-term partnership with CommunityAmerica Credit Union, marking a significant step in the credit union’s growing commitment to Northwest Arkansas. Facilitated by Learfield and Razorback Sports Properties, Donald W. Reynolds Razorback Stadium will become CommunityAmerica Razorback Stadium beginning with the 2027 football season.
Rooted in more than 85 years of helping individuals and families achieve financial peace of mind and building on a 65-year legacy of service in Arkansas, CommunityAmerica is excited to engage with Razorback fans and support the communities they call home.
“This is so much more than a name on a stadium. It’s about becoming part of the Razorback Nation experience and helping fans, students, student-athletes and the communities we and the university serve,” said Lisa Ginter, Chief Executive Officer of CommunityAmerica Credit Union. “Our members are at the heart of everything we do and when we evaluate partnerships like this, it starts with what matters most to them. The University of Arkansas is a powerful source of pride and connection for people across the state and in many of our markets. This partnership underscores our long-term commitment to Northwest Arkansas, where we look forward to growing our presence and helping more families achieve financial peace of mind. We’re already deepening our roots with plans for a campus location and several new branches throughout the region.”
The multi-phased partnership extends beyond naming rights and designates CommunityAmerica as the Official Credit Union of Arkansas Athletics. CommunityAmerica will also serve as an official sponsor of Arkansas Athletics, supporting student-athletes and fans alike. The comprehensive partnership will also include the rebranding of the SEC Club inside Razorback Stadium as the CommunityAmerica Club, where fans enjoy premium amenities on gameday. As part of the agreement, CommunityAmerica will engage directly with Razorback student-athletes providing Name, Image and Likeness (NIL) opportunities, valuable financial education and programs to help them succeed both on and off the field.
“We are thrilled to welcome CommunityAmerica Credit Union as the Official Credit Union of Arkansas Athletics as one piece of a partnership that will benefit our student-athletes, fans and the state of Arkansas for years to come,” said Hunter Yurachek, Vice Chancellor and Director of Athletics at the University of Arkansas. “Our vision in the Department of Athletics is to be our best and CommunityAmerica’s commitment to excellence as a trusted, people-driven financial institution mirrors that same vision. This partnership is just getting started but its impact will help shape our future.”
Beginning with the 2027 football season, the partnership will expand into its second phase with the naming of CommunityAmerica Razorback Stadium and the launch of CommunityAmerica Razorback Checking, Debit and Credit Cards.
With a legacy of serving members across Arkansas and nationwide, CommunityAmerica is ranked among the most trusted and innovative credit unions in the country and among the largest in the Midwest. CommunityAmerica is excited to engage and serve Razorback fans and members more deeply with a variety of financial products and services that align to their passion for the University.
“Our members are proud of where they live and what they stand behind, and for so many in Arkansas and across our shared communities, that means being part of Razorback Nation,” Ginter said. “As we look ahead to launching Razorback-branded products in 2027, we’re excited to offer experiences that celebrate that pride, strengthen relationships and deliver meaningful value for the people and communities we serve.”
“This is a historic partnership featuring an innovative brand with a passion and proven track record of supporting their community, paired with one of the leading college athletics programs in the country,” said Allison Fillmore, Senior Vice President, Business Development at Learfield. “Learfield and Razorback Sports Properties are excited to collaborate with Arkansas Athletics, which will enhance fan and student-athlete experiences for years to come.”
Razorback Sports Properties is the locally based Learfield team that is the exclusive multimedia rights holder for Arkansas Athletics and oversees all sponsorship agreements on behalf of the Razorbacks.
About the University of Arkansas Department of Intercollegiate Athletics
The University of Arkansas Department of Intercollegiate Athletics pursues its vision to “Be Our Best” while developing 465+ student-athletes into Razorbacks and Champions for Life. As members of the Southeastern Conference (SEC), the Razorbacks consistently compete at the nation’s highest levels while proudly representing the University of Arkansas and the entire state. Arkansas has established itself as one of the most competitive programs in the nation, winning nine NCAA titles and over 50 SEC Championships in recent years.
About CommunityAmerica Credit Union
CommunityAmerica Credit Union is a not-for-profit financial institution committed to helping members get on a path to thrive and achieve financial peace of mind. Founded in 1940, and with Arkansas roots dating back to 1968, CommunityAmerica has grown to meet the evolving financial needs of its members. With nearly $10 billion in assets and more than 600,000 members, the credit union is ranked among the nation’s 50 largest credit unions. It is the largest credit union in Arkansas, Kansas, and Missouri, and one of the largest financial institutions with expanding operations in Northwest Arkansas. CommunityAmerica offers a full suite of financial products and services for individuals and businesses, including checking and savings, mortgages, loans, commercial banking, wealth management, retirement planning, and insurance. Federally chartered, CommunityAmerica serves members across multiple markets nationwide with branch locations in Arkansas, California, Kansas, Missouri, Nevada, Tennessee, and Texas. Learn more at CommunityAmerica.com.
About Learfield
Learfield is the leading media and technology company powering college athletics. Through its digital and physical platforms, Learfield owns and leverages a deep data set and relationships in the industry to drive revenue, growth, brand awareness, and fan engagement for brands, sports, and entertainment properties. With ties to over 1,200 collegiate institutions and over 12,000 local and national brand partners, Learfield’s presence in college sports and live events delivers influence and maximizes reach to target audiences. With solutions for a 365-day, 24/7 fan experience, Learfield enables schools and brands to connect with fans through licensed merchandise, game ticketing, donor identification for athletic programs, exclusive custom content, innovative marketing initiatives, NIL solutions, and advanced digital platforms. Since 2008, it has served as title sponsor for the acclaimed Learfield Directors’ Cup, supporting athletic departments across all divisions.
BROOKLYN — Arkansas point guard Darius Acuff is the first of three Razorbacks off the board in the 2026 NBA Draft Tuesday night when he was selected by the Sacramento Kings with the No. 7 overall pick in the first round.
Acuff’s selection makes him the highest drafted player from Arkansas since 2023 when Anthony Black went No. 6 overall to the Orlando Magic.
He went into the night projected to be the first player from the Hogs taken following a phenomenal freshman year that saw him earn first team All-American honors, SEC Player of the Year, league freshman of the year, and SEC Tournament Most Valuable Player.
Likely his biggest accomplishment was becoming the first player to lead the SEC in points and assists since Pete Maravich in 1970.
As a freshman, Acuff averaged over 24 points, six assists and three rebounds on 48% shooting from the field, 44% from three and 81% from free throw line.
His knack as a bucket getter and facilitator lifted the Razorbacks to a different level in the postseason by averaging an astonishing 30 points, seven assists and one steal across six postseason tournament games.
He led Arkansas to a victory over Vanderbilt for the SEC Tournament Championship and back-to-back Sweet 16 appearances.
Arguably his best performance of the season came in a double-overtime classic in Tuscaloosa against Alabama when he dropped 49 points on 16-of-27 from the floor, 6-of-10 from three and 11-of-12 from the free throw line. He also contributed with five rebounds, five assists and only one turnover in 50 minutes.
And don’t forget, the 6-foot-2, 186 pound point guard did all of that on a bum ankle he sustained against Aubrn just four days prior.
During a media appearance on ESPN last week, Calipari made sure to warn NBA teams they will regret passing on superstar point guard.
“A great teammate. We all hear stuff. I’m around these kids, all they want to do is get better. They want to respect who’s coaching them,” Calipari told Colin Cowherd on The Herd. “And Darius Acuff, I’m telling you, there’s going to be some guys regretting [not picking him.]
“That’s okay. That’s okay. When he starts playing, you’ll remember this conversation, and we’re saying, ‘You’re going to regret not taking him.’”
Acuff is the latest in a growing list of coach John Calipari guards to be selected as lottery picks across his four decades in the college game. Former Kentucky stars Reed Sheppard, Rob Dillingham, John Wall, Shai Gilgeous-Alexander, De’Aaron Fox and Brandon Knight.
During his time at Memphis, Calipari helped Derrick Rose, Tyreke Evans, and Dajuan Wagner were each lotter picks from 2000-2009.
The 2026 NBA Draft will continue with its second round Wednesday night at 7 p.m. CT from the Barclay’s Center in Brooklyn will be broadcast nationally on ESPN.
Coach Cal Reaction
There haven’t been many times over the years that Calipari has missed out on watching one of his stars stroll across the stage to shake hands with the NBA Commissioner.
The second-year Razorbacks coach told the world Tuesday night that the Kings will be getting a “fierce competitor and winner” in Acuff.
With NBA Lottery pick and Sacramento Kings Guard Darius Acuff Jr!!! Congratulations to the entire family! The Kings are getting a fierce competitor and winner https://t.co/pk7T9H8e8b
— John Calipari (@CoachCalArk) June 24, 2026
Being drafted by Sacramento shouldn’t come as a surprise either as most mock drafts pegged him at No. 7 overall since the beginning of the college basketball offseason. With so many connections to the franchise, the Kings’ organization might be the perfect fit after all as General manager Scott Perry coached his father two decades ago at Eastern Kentucky.
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