Bank Celebrates 100 Years In Fort Smith

Oct. 19--A lot has changed in 100 years, but the foundation for BancorpSouth in Fort Smith has retained its roots as a community minded bank formed in 1914 as City National Bank.

The anniversary is being celebrated this week with open houses at BancorpSouth locations in Fort Smith, Greenwood, Van Buren and Alma. BancorpSouth acquired the parent company of the City National Bank in 2000.

A historical memorabilia display of items related to the bank over the past 100 years will be on view for the rest of the month at the Fort Smith BancorpSouth branch, 1222 Rogers Ave.

According to an Oct. 15, 1914, front-page article in the Fort Smith Times Record, City National Bank opened on Garrison Avenue at Sixth Street with visitors greeted by the founder, Iser H. Nakdimen, members of the board, and Mrs. Ben Cravens, Mrs. Rudolph Ney, Mrs. James M. Sparks, Mrs. J.H. Wright and Mrs. St. Cloud Cooper.

Business is picking back up in Fort Smith following a slow recovery from the Great Recession, BancorpSouth West/South Arkansas Division President Jim Patridge noted recently in an interview, where he was joined by former City National Bank President Jim Harwood.

"We think that through the work of the Chamber, and other organizations around town, that the market is getting a lot better," Patridge said. "We're a market in the process of changing from what we have historically been to a more balanced and diverse market place."

Harwood, who joined City National Bank in 1965 after military service and served as the bank president from 1993 to 2000, said when the bank was founded in 1914 many established relationships, such as those with furniture manufacturers, already existed with the two older banks, First National Bank and Merchants National Bank. What set City National Bank apart, Harwood said, was specialization in small-business loans.

"It was always a very strong competitive relationship for those business accounts," Harwood said. "That required us to specialize, and I think we had a good staff in all those years, so we were able to reduce the difference in size."

Patridge said he has had a number of business loan customers over the years say other banks wouldn't give them a chance, and City National Bank, as well as BancorpSouth, provided guidance and took that chance.

"We've had folks here who understood business and understood taking a chance on people who we could see had the potential, but weren't there yet, to develop into a really fine business," Patridge said. "And that's one of the things that was very helpful in the growth of our bank early on ... the insight into people's character and their capacity to take hard work and a good idea and transform that into a viable business."

Innovation in adjusting to the times was also seen as valuable aspects of City National Bank, said Saundra Lockhart, BancorpSouth vice president of marketing. City National Bank was the first bank in the area to have a computer system for cash management, and the first ATM with image checking, she said. Now, bank officials have continue to adapt to the times with mobile banking.

City National Bank moved in 1931 to the Garrison Avenue location now housing the Fort Smith Regional Chamber of Commerce. In 1956 the bank made another move to its current location on Rogers Avenue. In 1988, First United Bancshares in El Dorado acquired First City Corp and City National Bank. In 2000, Tupelo, Miss.-based BancorpSouth acquired First United Bancshares.

BancorpSouth's assets are now $13 billion, Patridge said.

"Any business that has been around for 100 years, it takes a lot to sustain that," Patridge said. "Especially a bank. And a lot of that is because we had good leadership that started at the beginning and continued on. Jim (Harwood) not only has perspective from when he was working here, but as a Fort Smith native."

The bank has worked to balance aspects of having access to large holdings and keep a community-minded focus. Creating a culture that focuses on a value system of ethics also has been central to the leadership of the bank, Harwood said.

"The bank had several really good presidents and a strong support staff of senior management and staff," Harwood said. "So, the bank grew fairly rapidly and became more competitive."

Harwood said the Thomas Family, whose primary company was First Pyramid Life Insurance Company, acquired City National Bank in 1953 and worked out of the former location until it was moved to its current location in 1956. When Harwood joined the bank in 1965 it was being remodeled and a garage drive-through and parking lot were below the building.

Harwood said Jim Hall, who later went to Worthen Bank, hired him and three others as management trainees. All four trainees wound up being presidents of banks.

"We got to go through a yearlong management process, which was something new at the time, and it something I used every day until the day I retired," Harwood said.

Former bank presidents include the founder's son, H.S. Nakdimen from 1942 to 1953, followed by Ed Reed from 1953-56, Bill Drenner from 1953-62, Ed Smoot from 1962-72, Harold E. Henson Jr. from 1972-93, followed by Harwood and then Patridge in 2000. Harwood officially retired in 2002 after aiding in the transition. The park in front of the Fort Smith bank is named for Jim Harwood.

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