Gary Hudson is a native of DeWitt and a graduate of Arkansas State University at Jonesboro, the University of Arkansas School of Law at Fayetteville and the Southwestern School of Banking at Southern Methodist University in Dallas. He practiced law in DeWitt before becoming vice president and trust officer of Farmers & Merchants Bank in Stuttgart in December 1980.
In 1988, he became president and CEO of DeWitt Bank & Trust Co. and then returned to F&M as executive vice president and director when F&M built a branch in DeWitt in 2002. He was named president and CEO when Don Pattillo retired in 2009. He is a member of the Arkansas State Banking Board.
Farmers & Merchants Bank is now the 12th-largest bank chartered in Arkansas with assets nearing $1 billion since the acquisition last fall of the Bank of Fayetteville.
What are the advantages and disadvantages of having operated under the radar?
Advantages: It seems that most people outside of the banking world do not really notice a bank in Arkansas until it exceeds $1 billion in asset size. We just haven’t had many until the last few years. We are considered a “farm bank” by some, and that is fine. Farming has been a great business to be associated with, and our farmers and the businesses that serve this industry are the backbone of our nation. That being said, I hope and think that most of our banking and financial service friends see us as a legitimate player statewide.
Disadvantages: Maybe sometimes we are not taken seriously because folks have not heard about us. I really do not think that happens too often. We have a reputation for being a sound institution with highly trained representatives and competitive products.
The Fayetteville purchase was not F&M’s first acquisition outside the Delta — you acquired Chart Bank in Perryville in 2008 — but it’s certainly the biggest and most distant. What does this tell us about your long-range plans for the bank?
Our strategic plan, as developed by our very involved board of directors, instructs management of our institution to search for opportunities that will add value to the investment of our stockholders. We are constantly considering opportunities that fit our community bank business model. We accumulate capital very quickly as a result of our stock dividend program, and our goal is to be ready when the next acquisition opportunity arises. If you are not working on the next deal long before you closed the last one, you are way behind.
How different is banking in the Delta versus banking in northwest Arkansas? What kind of expertise has your bank had to develop for the new markets?
There is a lot more competition and a different economy. The biggest thing about any kind of lending is understanding your own business model and your customers and evaluating and serving their needs. We strive to be a part of our customers’ decision-making process. We want them to involve us when they make everyday as well as the game-changing decisions.
Being in northwest Arkansas and having the privilege of serving the great people of that area is a fabulous opportunity. However, the most prized part of the acquisition is the staff of the Bank of Fayetteville. We have learned that they are highly trained and professional bankers who have a real understanding of the market.
Here’s one of our favorite questions: What was the worst business decision you ever made, and then what was the best?
Worst business decision: Owning a fried chicken and fish restaurant with three friends that was not in the best location. An exceptional product in a bad location has a small chance to succeed. A good to mediocre product in a bad location usually fails. This translates to any kind of business.
Best business decision: Listening to Don Pattillo, former president and CEO of Farmers & Merchants Bank, and taking the job as trust officer of Farmers & Merchants in December 1980. I was a struggling young lawyer in DeWitt. It got me into banking.