banking magnate
Story by Susan O'Connor, Photo by Dero Sanford

One of the most respected bankers in the state, Lindley Smith’s legacy in the profession goes back generations but he has left an indelible mark of his own.
His roots are tied to the small Jackson County town of Tuckerman.

“I absolutely loved growing up in Tuckerman and wouldn’t trade it for growing up anywhere else,” he said. “I had so many good role models — even before they were called that. Growing up I picked cotton as a youngster, washed cars, then later worked in the local grocery store. I worked at the bank later in high school and summers during my college years. All of these, I think, helped develop a strong work ethic, but certainly the time spent at the bank in those days was shaping what I would end up choosing as a career.”

“The bank” was the Bank of Tuckerman. In the 100-year-history of the institution, there were only four presidents. Smith’s great-grandfather, J.W. Lindley, was the first. His father, Van Smith, was also president, as was Smith. The major shareholders were the Lindley, Penix and Armstrong families, whose family members held key executive positions in those early years.
“During the Great Depression, my great-grandfather sold his cattle in order to have money to deposit in the bank to supply funds to those who wanted to withdraw their money,” Smith said. “That display of character and integrity carried on to the future generations of his family.”

Smith graduated with a bachelor’s degree in finance from Westminster College in Fulton, Mo., then earned a MBA in finance from the University of Missouri in Columbia. Following his graduate work, Smith worked in the banking industry in Kansas City, Mo., before serving three years as a bank examiner for the Arkansas State Bank Department.

“My time as a bank examiner was extremely valuable towards keeping on my career path and for giving me exposure to the inner workings of many different banks, as well as the potential problems that can develop. Around this time, the board of directors at the Bank of Tuckerman was having to think about management succession and had indicated an interest in my coming back to Tuckerman. My mother’s heart attack in late 1978 sped up my decision to accept an offer from the Bank of Tuckerman.”

Smith purchased the bank’s stock from other shareholders, including extended family and others in 1986, and moved his family to Jonesboro in 1987. Smith and his wife, Susan have a daughter, Elizabeth, who is disabled and frequent trips to Jonesboro have been necessary for therapy. The move made sense for the growing family.

In 1999, Smith was approached by Frank Walden of Pocahontas to merge his bank, Planters and Stockmen, with the Bank of Tuckerman. Walden planned to introduce the new entity into the Jonesboro market, a desirable, growing market to be in.

“That was an unusual transaction,” Smith said. “I know of no other situation where two banks merged and no money was exchanged. We literally put our two banks together and called it even.”

First Community Bank was born and very shortly, Pocahontas Bancorp was knocking at the door, offering to buy the bank. On May 15, 2001, that transaction closed. The name First Community Bank was retained.
“I remained affiliated with the new organization as a director, consultant and a member of the loan committee until the time they sold,” he said.
First Community Bank sold to IberiaBank in 2007.

In August 2008, the board of directors of Southern Bank of Commerce in Paragould contacted Smith about joining the bank as president. The bank was subsequently bought by Southern Missouri Bancorp in Poplar Bluff in July.
Smith is currently regional president for Arkansas of the merged institution, renamed Southern Bank.

As you worked in the bank during high school and college summers, what were some of the most important lessons you learned about banking and life? Working alongside my father instilled many important values and attitudes, notably, being true to your word, and fair and honest dealings. The guidance of my dad, Bob Penix and Scotty Armstrong, who were members of the board of directors, shaped many of my ideals. Their reputations and influence in Jackson County for so many years had much to do with the success of the bank.

What are some of the profound changes you’ve seen in banking during your career? Consolidation of the industry into fewer, but larger banks, the increasing regulatory burden placed on financial institutions by the federal government and the overuse of the banking system to bring about social change, with mostly negative results in my view. But, on the positive side, changes in the industry’s use of information technology and its use of the Internet to move that information around and make it more accessible. I find this fascinating and enjoy envisioning what the future might look like.

You describe yourself as a risk taker. What have been the positive manifestations of this personality trait? I have enjoyed helping people fulfill their financial dreams, even when they might not have “looked good on paper,” but, unfortunately, the regulatory environment that now exists makes this more difficult. Also, I have encouraged myself, my wife and my children to go beyond what they think they can do, trusting in the Lord to give them the ability to do whatever He calls them to do.

What traits do you hope people remember most about you? Honest and fair.