You have likely seen updates in the national news about banks who have announced that they are accepting government funding through the Capital Purchase Program ("CPP"). Arvest is well capitalized and has a strong balance sheet. Funding through this program is not necessary. An announcement was released on Wednesday, Nov 26 announcing that we will not seek the federal funding.

Portions of the announcement made this morning are contained below:

Financial Strength Makes Funding Unnecessary

"Arvest evaluated the provisions of the Capital Purchase Program carefully and made a business decision not to apply for the funds due to the strength of our balance sheet and our capital exceeding federal standards for being well-capitalized" said Kevin Sabin, President and Chief Operating Officer of Arvest. "While the current economic environment and outlook is certainly challenging to many banks and customers, we intend to remain a well-capitalized bank servicing the borrowing, depository, investment and transactional needs of the many customers we serve", said Sabin.

"The Treasury is to be commended for undertaking efforts to deal with the current instability in the financial markets and with the weakening national economy. Arvest has sufficient capital needed to fund expansion and to support the borrowing needs of our customers. The trade territories in which we operate have avoided the worst of the real estate issues experienced elsewhere and we are optimistic these markets will continue to have healthy local economies."

Arvest Bank had total assets of $9.82 billion as of September 30, 2008, with total shareholders equity of $961.6 million. The bank’s Total risk-based capital and Tier 1 Leverage ratios as of September 30, 2008 were 10.45% and 7.37%, respectively. Arvest operates more than 215 branches and more than 320 ATMs in Arkansas, Kansas, Missouri and Oklahoma and offers a wide range of financial services including FDIC-insured deposit accounts, business loans, personal loans, home loans, credit cards, brokerage accounts, trust services, life insurance, international banking and cash management. Arvest's Report of Condition as of September 30 can be found online at arvest.com.
 

OU and OSU football fans may not agree on which team is better, buy they do agree on one thing; the importance of helping to fight hunger in Oklahoma with Magic 104.1 KMGL’s 7th Annual Bedlam Food Fight. The food drive, which concluded Monday, November 24, collected donations to benefit the Regional Food Bank of Oklahoma. Listeners of Magic 104.1 were able to vote for their favorite team (OU or OSU) by making monetary or non-perishable food item donations at Arvest Bank locations. 

The winner of this year’s food drive was OU, whose fans donated 1,147 pounds of food and $2,098, for a total donation of 15, 582 meals.
OSU fans also had a strong showing with donations of 600 pounds of food and $928, for a total donation of 6,965. Through this year’s Food Fight, the Regional Food Bank of Oklahoma will be able to provide 22,547 meals, more than doubling last year’s totals!

For every dollar donated, the Food Bank is able to provide seven meals to hungry Oklahomans,” said Rodney Bivens, executive director of the Regional Food Bank of Oklahoma. “Promotions such as the Bedlam Food Fight are a fun way for football fans to support their team and help fight hunger in our state at the same time.” 

Hunger in Oklahoma is a serious problem—over 500,000 Oklahomans are at risk of going hungry, including one out of every five children. The Food Bank is the state’s largest hunger-relief charity, distributing food to more than 63,000 people each week in 53 central and western Oklahoma counties. Donations are needed more this year than probably any other time in the history of the Food Bank.

Please visit www.regionalfoodbank.org or call 405-604-7109 for more information on how you can get involved with or contribute to the Regional Food Bank of Oklahoma.
 

It’s easy to bust your budget during the holiday season, but with a few simple tweaks to your gift list, you can save major bucks. Here are some savvy money-saving strategies that will help you afford a truly bright season.

1. Do it yourself. For an old-fashioned, inexpensive present, consider assembling a hot cocoa or cider kit. When prices drop on grocery items, “grab as many as you can,” says Teri Gault, CEO and founder of the online grocery site TheGroceryGame.com. Make your homemade gift extra special by adding creative touches, such as wrapping your present in holiday fabric or adding a favorite holiday recipe to the package. 

2. Check company perks. Your company may have retail partners that offer special deals to employees, like a percentage discount at various retailers, restaurants or entertainment venues.

3. Go surfing. Comparison-shopping sites search for the best deals online. A standout: NexTag.com, whose price-history feature charts the highest, median and lowest prices of products so you know when you’re getting a steal. Another resource is Froogle (or Google Product Search), a Google-sponsored shopping tool. Enter the item you’re looking for, then sort by prices in the grid view.

4. Calculate the extras. As you figure the costs of your gifts, don’t forget to include tax and shipping charges in the amount you’ve set aside. Less than 21% of consumers include those expenses when planning their holiday shopping, according to Visa USA research. Plan to add $15, plus state and local taxes to the cost of each item.

5. Redeem your Rewards points. Most airline frequent-flier programs allow you to convert miles into magazine subscriptions, dining certificates or electronic gadgets. Also, programs such as our own Arvest Rewards can help you save money by redeeming points at various vendors.

6. Wrap it up. Save money by skipping the gift wrapping services at stores and shopping malls. Unless it’s a complimentary service, it’s money down the drain.

7. Buy in bulk. Holiday hostess gifts can put a dent in your wallet. Plan ahead by purchasing a case of interesting jams or jellies or buying large volumes of discounted coffee at your local coffee shop. “When buying in bulk, you can often save up to 20%,” says Anna Wallner, co-author of The Shopping Bags: Tips, Tricks and Inside Information to Make You a Savvy Shopper.

8. Make a group effort. Board games, badminton sets, porch swings—these are great gifts all ages can enjoy, and one big gift for a family is often less expensive than several smaller ones. Better yet, donate money to a family’s favorite charity of choice, such as Habitat for Humanity, http://www.habitat.org/, or the Make a Wish Foundation, http://www.wish.org/ . Tis the season to give!

9. Stuff it. Choose quantity over quality in stuffing stockings. Discount stores, drugstore clearance aisles and party-supply stores are ideal for picking up everything from stickers to small toys.

10. Arvest Visa Gift Card. Give the gift that shines this year, the Arvest Visa Gift Card. This gift, pre-wrapped in an exclusive, limited edition holiday gift tin, can be loaded with any dollar amount $25 and up. It’s accepted anywhere Visa is and allows your friends and family the option of buying whatever they choose.  Money saving solution: Purchase one of these as a gift for an entire family or group and let them be treated to a dinner at their favorite locale.
 

A press conference was recently held to announce the teams participating in 4th annual Arvest Hoopfest basketball tournament in Rogers on December 11-13, 2008.

The tournament will be held at Rogers Heritage High School beginning at 4 p.m. on Thursday and Friday, and at 1 p.m. on Saturday. Trophies are presented to the top three teams, as well as individual medals.

This year’s participating teams include Bentonville High School, Rogers High School, Rogers Heritage, Mt. Vernon High School from Mt. Vernon, Missouri, Southeast High School from Oklahoma City, Oklahoma, Seeworth Academy from Oklahoma City, Oklahoma, Bartlesville High School from Bartlesville, Oklahoma and Hot Springs Lakeside High School. This is the second consecutive year that teams outside of Arkansas have participated.

“Arvest Hoopfest is a great opportunity for our players to get time on the court against some good teams early in the season,” commented Mark Holderbaum, athletic director of Rogers Public High School. “We’ve got a diverse bracket this year with some new teams and we’re really looking forward to it.”

Sponsors for the 2008 Arvest Hoopfest are Arvest Bank and Hight-Jackson Associates P.A., among others, although sponsorships are still available.  2008 Hoopfest Brackets can be picked up at any Arvest Bank locations in Rogers, AR or you can view a pdf bracket here.
 

With Quicken online account access, you can update transactions and balances (e.Statements) from Arvest into Quicken. You will then be able to see what transactions have cleared your account, find out your current balance and add transactions that have been processed but aren’t in Quicken yet. This process keeps your account information current, saves time and improves the accuracy of your financial record keeping. 

Is your bag overweight by 1 pound? Would you like a pillow and blanket for your nap? How about an in-flight snack? These small luxuries could cost you—unless you’re prepared. With the holiday season fast approaching, it’s important to learn the root cause of some pesky fees and how you can avoid them.

Booking

Most major airlines charge a fee to book a flight over the phone, which on average is close to $25. Third-party travel websites charge between $6-$12 per ticket for online booking. To avoid these fees, book your flight directly on an airline’s web site.

Total estimated savings: $25

Changing a Ticket

Many airlines charge domestic ticket holders for altering an itinerary. Change a ticket on your flight, and you can expect to pay a fee ranging from $75 to $150. The best defense against these fees is to solidify plans before you book. Paying a slightly higher fare if you book closer to your departure date typically costs less than getting hit with a change of ticket fee.

Total estimated savings: $75-150

Curbside Baggage Check

In the words of my dad, “This is a complete waste of money.”  If you don’t feel like rolling your bags into the terminal yourself, well, it will cost you. Most airlines charge $2-$3 per bag for curbside check-in. So unless it’s absolutely necessary, get a little exercise and roll the luggage inside and avoid this annoying fee.

Total estimated savings: $2-3 (depending on number of bags)

Checking Bags

Last year on a trip to Europe I, Leslie, managed to fit everything I needed for two weeks into one suitcase, which as most of my friends will tell you, is a feat in itself.  Although some airlines are now charging for the first bag, ($15 and up), most airlines only charge for the second bag. Think you can avoid the second-bag fee by stuffing everything into one suitcase? Guess again. Going just 1 lb. over the 50 lb. limit triggers an overweight fee of $29-$125. Solution: Pack light and stick to carry-on bags whenever possible. If you must, ship extra heavy bags to the hotel ahead of time to avoid these fees.

Total estimated savings: up to $125

In-flight Amenities

Gone are the days of free peanuts and soft drinks on flights. Only a handful of airlines offer free snacks and drinks anymore. Drinks typically run about $2, while a pillow and blanket will cost you up to $7. To avoid paying $3 for a miniscule bag of potato chips, pack snacks and an inflatable pillow from home and purchase a drink at the airport terminal after your security check.

Total estimated savings: up to $12

Don’t blow your holiday budget on travel. Ask questions, plan ahead and compare your airline options before you hit the tarmac.
 

All deposit accounts offered by Arvest Bank, including Money Market Accounts, are eligible for deposit insurance provided by the Federal Deposit Insurance Corporation (“FDIC”) to the extent allowed by law. You can find more information on FDIC coverage at a new and very consumer firendly website, www.myfdicinsurance.gov

Many customers have also asked Arvest about the difference between the Money Market deposit accounts we provide as opposed to the Money Market Mutual Funds, which are not FDIC insured.  The information below may be helpful to you in addressing these inquiries.

1. What is a money market deposit account?

According to the Federal Financial Institutions Examination Council (www.ffiec.gov), a money market deposit account is a type of bank savings account.   Interest is paid by the bank at a rate established by the bank.

Money market deposit accounts may be named differently from bank to bank.  Arvest refers to these accounts as Money Market Accounts. 

2. What is a money market mutual fund?

A money market mutual fund is a special type of investment company subject to regulation by the U.S. Securities and Exchange Commission and that, by law, can invest in only certain, short-term investments issued by the U.S. Government, U.S. Corporations and state and local governments.

Investors in a money market mutual fund are shareholders in the associated investment company.  Dividends are paid by a money market mutual fund based on the earnings of the underlying investments held by the mutual fund.

3. What is meant by “breaking the buck”?

A money market mutual fund seeks to maintain a constant net asset value of $1 per share.  Losses incurred by the fund can result in a lowering of the net asset value below the $1 level.  This reduction below $1 per share is referred to as “breaking the buck”.

A money market deposit account is a bank deposit account covered by FDIC deposit insurance and is not subject to value fluctuations.

4. How does the temporary program recently announced by the Secretary of the Treasury affect money market mutual funds?

On September 19, 2008 Secretary of the Treasury Henry Paulson announced a temporary program to guarantee qualifying money market mutual funds for one year.  Funds qualifying for coverage are those regulated by Rule 2a-7 of the federal Investment Company Act of 1940 and are registered with the SEC for public offering and pay a fee to participate in the temporary guaranty program and have not “broken the buck”.   On September 21, 2008 the Treasury Department clarified that only balances in qualifying money market mutual funds at the close of business on September 19, 2008 are eligible for the guaranty.  Therefore, money transferred to qualifying money market funds after September 19 are not eligible for the guaranty.  The guaranty, where applicable, is scheduled to expire after one year.
 

For situations that require automatic funds transfer from your account to another account owned by an individual or business, Arvest offers two convenient methods of transferring funds. The first option is to visit an Arvest branch and request a Funds Transfer. The customer will supply the name of the account in which she wishes to transfer funds from, as well as the fixed dollar amount of the transfer and the date (i.e. the 15th day of each month, every other Friday, etc.) on which the transfer will occur. The customer will also be asked to give the account name, account number and routing number of the account into which the funds will be transferred. 

The second option is to set up payments through Arvest online BillPay, which will allow Arvest customers to make changes in the amount, date and frequency of the funds transfer, or will have the option to set it up as a recurring payment.  Although the payment is not automatically deposited into the account, it is an efficient way to send money to a third party.

Both options are simple and convenient ways in which anyone can set up regular transfers or payments. Visit any Arvest branch or sign up for Online BillPay to manage your funds transfers today!