Relyance Bank of Pine Bluff and Citizens Bank of Batesville are the first two buyers in a new light commercial development on the southeast side of Hot Springs, developer Ross Whipple confirmed last week.

The Hot Springs Sentinel-Record used local property records to report that Relyance paid $965,699 for its lot in the new East Ridge subdivision, and Citizens paid $1.29 million. Whipple, who sold his Summit Bank to Bank of the Ozarks in 2014, partnered with local builder Tim Winston to develop East Ridge.

Citizens opened two branches in Hot Springs in the first half of 2015 after hiring 10 local bankers away from Southern Bancorp Bank, including David Wooldridge, now the market president. Wooldridge said the East Ridge site will be the market headquarters, assuming the new branch receives regulatory approval, and he is talking 12,000 to 15,000 SF, including some tenant space.

East Ridge subdivision, about 8 acres, is at the southeast corner of the intersection of Malvern Avenue and Carpenter Dam Road. It is southeast of the Hot Springs Country Club. Simmons Bank of Pine Bluff and Hot Springs-chartered Diamond Bank are also in the neighborhood, on the west side of Carpenter Dam Road, and Arvest Bank has a branch farther north on Malvern Avenue.

The East Ridge branch will be Relyance’s third in Hot Springs and fourth in Garland County. The Pine Bluff bank acquired its sister charter, Hot Springs Bank & Trust, at the end of 2013.

Todd Green, the Hot Springs market president for Relyance, said Pine Bluff architect Fred Reed is working on plans for the new branch. “We love our location,” Green said.

First Security Bank of Searcy is also planning a branch on Malvern Avenue.

“It’s bank alley,” Wooldridge said. “It’s kind of becoming the new Central Avenue of Hot Springs.”

Wooldridge said it was ironic that Whipple is the developer of the East Ridge site because he has been trying to recreate the Summit Bank footprint in Hot Springs.

Since Summit’s sale, he said, “I just think there’s a huge vacuum of banking the way it used to be.”

Whipple has three more lots for sale in East Ridge, and a second phase will be developed on 3 acres he and Winston have purchased just to the east at Malvern Avenue and Piper Street.

Hot Springs Bank Branches^*

*As of June 30
Source: Federal Deposit Insurance Corp.

Simmons First National Corp. of Pine Bluff announced Friday the addition of Jerry M. Hunter of St. Louis and Mindy West of El Dorado to its board of directors.

Hunter is a partner in the St. Louis office of Bryan Cave LLP and served as general counsel for the National Labor Relations Board (NLRB) from 1989-93.

West is executive vice president, chief financial officer and treasurer for Murphy USA Inc. of El Dorado.

"Mindy and Jerry bring strong financial and legal skills to our board and will play key roles in guiding our growth in the years ahead," Chairman and CEO George Makris Jr. said in a news release. "Their insight will be invaluable as we continue to build one of the nation’s top regional banks."

Simmons recently told Arkansas Business it's looking to surpass $10 billion in total assets during the third quarter of this year.

Hunter has been labor counsel for the Kellwood Co. of St. Louis, a field attorney for the NLRB and a senior trial attorney for the U.S. Equal Employment Opportunity Commission. From 1986-89, he served as director of the Missouri Department of Labor and Industrial Relations. Hunter was also a member of the Missouri State Employees Retirement System board and the chairman of its investment committee.

He received his bachelor’s degree from the University of Arkansas at Pine Bluff and his law degree from Washington University in St. Louis. He was admitted to the Arkansas bar in 1977 and the Missouri bar in 1978.

West, a certified public accountant and certified treasury professional, worked for Murphy Oil Corp. for 17 years. She was its director of investor relations from July 2001 until December 2006 and vice president and treasurer from January 2007 until she joined Murphy USA in August 2013.

West earned her bachelor's degree in finance from the University of Arkansas at Fayetteville and a bachelor’s degree in accounting from Southern Arkansas University in Magnolia.

It’s the start of a new year and you are finally going to take the big step of starting your own business. Congratulations! According to the Small Business Administration (SBA), you will join over 240,000 small business owners in Arkansas and have a part in employing over half the state’s private workforce. In order to start your new business off on the right foot, you’ll need a team of professionals to assist you.

Most successful startups begin with a strong professional business team in place. The team is comprised of:

• You
• An attorney comfortable with setting up new businesses
• A CPA who is competent and familiar with your field
• A banker willing to get to know you and your business and who is committed to helping you grow
• An experienced insurance agent

All of these professionals play a very important role in guiding you through the ins and outs of starting in a new business endeavor.   

Where do you find this team?

Ask trusted friends, family and mentors for recommendations. Sometimes they can offer you sage advice on who NOT to work with. Look in trade publications for advertisements or editorials written by the experts in your field. Geographic proximity is not always the best indicator of a good team member. Look for those who specialize in your industry. Get a feel for how they like to communicate and work. If it doesn’t fit with your personality or business style, keep looking. Seek out people who are willing to explain things to you at the level you need to make sure you understand every detail. Often the language used in explaining a complicated transaction turns off new business owners; be prepared to ask questions and say when you don’t understand. 

What will this team do?

Attorneys

Attorneys are key players in the formation and registration of your new business entity with local, state and federal agencies. From formation of the entity and making sure you don’t fall into any licensing traps, legal counsel is much more effective (and less costly) on the front end in preventing problems than having to solve them on the back end. 

CPAs

Your CPA can advise you of the tax ramifications of the different business entities and will help in determining what taxes your small business will be subject to and with what agencies the business will need to register to pay or file those taxes. CPAs can give you timetables, estimates and prepare the forms and statements that are required for you to know how your business is doing and to keep you out of hot water with the various taxing agencies.  

Bankers

A banker will assist the business in setting up checking accounts, lines of credit and/or startup loans. 

Insurance agents

This team member will recommend and price insurance to protect you and your business from the effect of unexpected and catastrophic events. They will talk with you to determine the level of coverage needed and make sure you have all of the necessary types of insurance for your particular industry.

Additional Resources

With your team of professionals in place, you are now ready to implement your business plan and get started. Some additional resources for starting a business include information from the SBA in “10 Steps to Starting a Business.” If your business will be Arkansas based, the Department of Finance and Administration has an informative publication “Starting a New Business.” The IRS also has a publication called “IRS Checklist for Starting a Business." Remember the key to forming, building and maintaining a successful business is to surround yourself with a team of successful and knowledgeable professionals.   

Bank of the Ozarks Inc. on Tuesday announced record fourth quarter net income of $87.8 million, a 71 percent increase from quarterly net income of $51.5 million a year ago.

The performance helped power the Little Rock bank holding company (Nasdaq: OZRK) to record earnings of $270 million during 2016, a 48 percent increase over 2015.

The acquisitions of Community & Southern Holdings Inc. and C1 Financial Inc. in July 2016 contributed mightily to the fiscal growth, nearly doubling the size of the company.

Record profits were among a list of financial achievements itemized in a prepared statement by George Gleason, chairman and CEO of the $18.9 billion-asset lender.

"We are very pleased to report our record results for both the fourth quarter and full year of 2016, including quarterly and annual records in net income, diluted earnings per common share, net interest income, service charge income and trust income, as well as quarterly growth of $845 million in non-purchased loans and leases, an excellent 5.02 percent net interest margin, a superb 34.3 percent efficiency ratio (for the quarter) and pristine asset quality," Gleason said.

Related: Simmons First National Corp. and Home BancShares Inc. are poised to break the $10 billion-asset mark.

The company's efficiency ratio for 2016 improved to 35.8 percent compared to 38.4 percent for 2015. Other year-over-year highlights at the company included:

• Total loans and leases, including purchased loans, were $14.56 billion at Dec. 31, a 75 percent increase from $8.33 billion in 2015.

• Non-purchased loans and leases were $9.61 billion at Dec. 31, a 47 percent increase from $6.53 billion in 2015.

• Purchased loans were $4.96 billion at Dec. 31, a 174 percent increase from $1.81 billion at Dec. 31, 2015, but an 8 percent decrease from $5.40 billion at Sept. 30.

• Deposits were $15.57 billion at Dec. 31, a 95 percent increase from $7.97 billion in 2015.

• Total assets were $18.89 billion at Dec. 31, a 91 percent increase from $9.88 billion in 2015.

• Diluted earnings per common share for the fourth quarter of 2016 were 72 cents, a 26 percent increase from 57 cents for the fourth quarter of 2015.

• Diluted earnings per common share for 2016 were $2.58, a 23 percent increase from $2.09 for 2015.

• Returns on average assets, average common stockholders' equity and average tangible common stockholders' equity for the full year of 2016 were 1.89 percent, 13.05 percent and 16.25 percent, respectively, compared to 2.11 percent, 14.97 percent and 17.02 percent, respectively, for the full year of 2015.

Bank of the Ozarks owns a state-chartered subsidiary bank that conducts banking operations through 249 offices in Arkansas, Georgia, Florida, North Carolina, Texas, Alabama, South Carolina, New York and California.

WASHINGTON — The U.S. economy grew a bit faster at the end of last year, spurred by healthier sales for manufacturers and steady hiring that is slowly pushing up wages.

(Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

Mark McFatridge has resigned as CEO of Bear State Financial, and the board of directors of the publicly traded bank holding company announced Wednesday that Matt Machen will be his replacement.

Machen, 35, has been president of the Little Rock company's bank subsidiary, Bear State Bank.

McFatridge, who joined Bear State Bank when the Missouri bank he headed was acquired in the fall of 2015, informed the board of his resignation on Saturday, according to Wednesday's announcement.

Machen joined Bear State — then First Federal Bank — in 2011, following its recapitalization by Bear State Financial Holdings. The announcement said Machen led the bank's turnaround in northwest Arkansas before relocating to Little Rock, first as chief financial officer. He was promoted to bank president in April 2016.

"Matt combines strong financial services experience and knowledge of the depth of our management team with a vision for the Company’s future that will be a critical part of our growth and success moving forward," Chairman Rick Massey said in the release. "Matt joined our team more than five years ago and has proven to be both a dynamic leader and accomplished at strategy execution. Our board has full confidence in Matt to handle his new responsibilities and feel we are fortunate as a Company to have an executive of his caliber at Bear State."

A bio of Machen included in the release says he is a graduate of the University of Arkansas at Fayetteville and the ABA Stonier Graduate School of Banking and has 14 years of banking experience. He has a leadership certificate from Wharton School of Business at the University of Pennsylvania and completed the executive program in financial leadership from the Darden School of Business at the University of Virginia. He is a member of the Dean's Alumni Advisory Council for the Walton College at the UA.

Simmons First National Corp. earned $27 million in the fourth quarter of 2016, a year-over-year increase of 13.4 percent, pushing its net income for the year to $96.8 million, an increase of more than 30 percent.

The Pine Bluff bank holding company's announcement, after the market close on Wednesday, said quarterly results included $1.8 million in expenses related to mergers and the closing of branches of its subsidiary Simmons Bank. Earnings per share were 85 cents, a 9 percent increase for the quarter, while diluted annual EPS were $3.13.

"We are very pleased with our results during the fourth quarter. Our associates are beginning to leverage our size and integrate more of our services in markets previously unserved," Chairman and CEO George A. Makris Jr. said in the earnings release. "We are excited about our future related to our previously announced mergers. Simmons Bank will enter new and very attractive markets as a result of the Bank SNB merger and will be able to expand in our current markets with the First South Bank merger. We look forward to significant growth from these mergers."

Also: Simmons and Home BancShares are set to join the $10 billion-asset club.

Simmons expects to close its acquisition of Bank SNB's parent, Southwest Bancorp Inc. of Stillwater, Oklahoma, in the third quarter of this year. The acquisition of Hardeman County Investment Co. of Jackson, Tennessee, parent of First South Bank, is expected before the end of March. Those acquisitions are expected to push the bank's assets to about $11 billion from the 2016 year-end level of $8.4 billion.

Net interest income for the fourth quarter was $74.3 million, up less than 1 percent from the same period of 2015. Non-interest income, meanwhile, was $36.1 million, an increase of 26 percent "due to additional mortgage lending, trust income, debit and credit card income," according to the release.

Total loans, including those acquired, were $5.6 billion at year-end, an increase 14.5 percent, while legacy loans — those not acquired — grew $1.1 billion, or 33.3 percent. On a linked quarter basis, total loan growth was $232 million, including a reduction in agricultural production loans of $53 million.

Deposits as of Dec. 31 were $6.7 billion, an increase of 10.7 percent over the end of 2015. Total assets were $8.4 billion.

Home BancShares Inc. of Conway on Thursday announced fourth-quarter net income of $48.6 million, up nearly 30 percent from the same time last year.

The parent company of Centennial Bank said fourth-quarter diluted earnings per share was 35 cents, up from 27 cents — split adjusted — in the same quarter last year. Excluding a reduced provision for loan losses and merger expenses, diluted earnings per share was 33 cents.

For the full year, the company (Nasdaq: HOMB) reported in income of $177.1 million, up 28 percent from $138.2 million the previous year. Diluted earnings per share was $1.26, up from $1.01 per share — split adjusted — in 2015. 

Also: Simmons First and Home BancShares are set to join the $10 billion-asset club.

"The annual and quarterly earnings performance for 2016 exceeded expectations," Chairman John Allison said in a news release. "At the beginning of 2016, we had what we considered an aggressive goal in place to reach annual diluted earnings per share of $1.25. While it took both discipline and hard work, the company exceeded this goal for the year by reporting exceptional results for diluted earnings per share of $1.26 per share."

Randy Sims, Home BancShares' CEO, said the fourth quarter marked the 23rd straight quarter of record profit. He also said the company achieved a core efficiency ratio of 35.97 percent.

The company said quarterly non-interest income was $23.8 million, up from to $17.3 million for the fourth quarter of 2015. Non-interest income included $7.6 million from other service charges and fees, $6.4 million from service charges on deposits accounts and $4.1 million from mortgage lending income.

Total loans receivable were $7.39 billion at Dec. 31, compared to $6.64 billion at Dec. 31, 2015.  Total deposits were $6.94 billion, up from $6.44 billion, and total assets were $9.81 billion, up from $9.29 billion.  

During the quarter, the company closed one branch in Mountain Home.  During the first quarter of 2017, it plans to open a branch location in Clearwater, Florida, and a loan production office in Los Angeles.  

The company has 76 branches in Arkansas, 59 in Florida, six in Alabama and one in New York City.

Ty Matlock has been named associate director of the board of directors of United Federal Credit Union, headquartered in St. Joseph, Michigan.

The Associate Director Program is designed to provide a prepared and ready supply of succession candidates for the board of directors, ensuring continuity of board leadership.

Matlock is owner of Matlock Media Group, a full-service advertising agency in Fort Smith.

Andrew Sharpley has been elected president of the Soil Science Society of America for 2017. The SSSA is a progressive international scientific society that fosters the transfer of knowledge and practices to sustain global soils.

Sharpley is a professor in the University of Arkansas’ Division of Agriculture in Fayetteville. His research focuses on studying the effects of agricultural management on water quality and implementing practices to minimize nutrient runoff.

See more of this week's Movers & Shakers, and submit your own announcement at ArkansasBusiness.com/Movers.

The financial tale of Texarkana’s competing convention centers continues.

U.S. Bankruptcy Court for the Eastern District of Texas on Wednesday approved the sale of Dr. Hiren D. Patel’s hotel in Texarkana, Texas, for $2.9 million to James J. Naples.

Patel and his wife, Dineschandra Patel, live in Texarkana, Texas, and own Country Inn & Suites through their company, Krishna Associates LLC.

The Patels’ attorney, Bill F. Payne of Dallas, did not return a call Thursday for comment. He has been instructed to file the order approving the sale by Jan. 25.

A draft of the order states that proceeds of the sale will be paid to MidSouth Bank of Lafayette, Louisiana, on the closing date. MidSouth is the lead creditor in the case.

Six other parties submitted bids by Nov. 25, according to the motion the court approved, and Naples’ was the high bid.

Krishna’s is one of three bankruptcies linked to the Patels, their companies and MidSouth.

The company filed for Chapter 11 bankruptcy reorganization in November, when it listed $5.3 million in debts and $3.2 million in assets. The filing halted the foreclosure sale of Country Inn & Suites.

Patel also filed for bankruptcy reorganization in March for his Texarkana Hotels LLC, which owns the combination 27,000-SF, $18 million Arkansas Convention Center and Holiday Inn on the Arkansas side. The center and hotel have been marred by controversy since they opened in 2013, about a year after a convention center on the Texas side of the city.

That filing also halted a foreclosure, initiated by MidSouth. The bank said Patel’s company defaulted on $10 million in loans on the Arkansas side alone.

MidSouth is also seeking payment from the Patels because they personally guaranteed the debts, but that has been slowed because the Patels filed for personal bankruptcy reorganization in April.

(A correction has been made to this article. See end for details.)

The owners of the 30-story Regions Center in downtown Little Rock weren’t able to refinance a $32 million loan before it matured on Sept. 1.

That put the owners on the road to bankruptcy court.

The insight comes from Lori McGhee, a consultant for the buildings’ owners who is working for Moses Tucker Real Estate of Little Rock. She provided a statement last month in U.S. Bankruptcy Court in Delaware about the events that led to the Chapter 11 reorganization filing.

In the nine-page statement, McGhee said “improper actions” by a pool of investors prevented the owners from refinancing the loan that was used to buy the building in 2006. She didn’t provide details. Wells Fargo Bank is the trustee for the investors, which has the legal name: the Registered Holders of COMM 2006-C8 Commercial Mortgage Pass-Through Certificates. 

McGhee said being unable to refinance triggered a default under the loan documents, and it led to the building losing a “significant new tenant.” It also diminished the value of the property and its “much needed cash flow for its operations.”

The property owners also had to dip into other operating funds to pay for tenant improvements, which also hurt the cash reserves.

After Wells Fargo filed a foreclosure lawsuit in Pulaski County Circuit Court in November against the 32 LLCs with ownership interests in the building, there was no choice but to go to bankruptcy court, McGhee said. Wells Fargo also wanted a receiver appointed.

Going to bankruptcy court allowed the owners to sidestep the “inherent cost and expense” of defending the foreclosure and receivership proceedings.

And it gave the owners “an opportunity to resolve their issues with [Wells Fargo] for the benefit of all” parties, McGhee said.

In the statement, she also asked that the utilities be kept on. She said the monthly utility bill for the 547,000-SF building is nearly $90,000. She said the owners expect to have enough cash to cover that expense.

When the owners filed for bankruptcy protection, they listed estimated debts of between $10 million and $50 million. A more detailed filing is expected later. The owners’ assets also are estimated at between $10 million and $50 million.

If McGhee’s name sounds familiar, it’s because we told you several weeks ago that she retired from Moses Tucker. In the filing, however, she said she has been “re-engaged” by Moses Tucker to help with the bankruptcy.

(Correction, Jan. 23, 2017: The original version of this story said Wells Fargo Bank was the lender. It is the trustee for a pool of investors.)

The battle over the biggest asset remaining from John Rogers’ murky business dealings and insolvent ventures begins next week in Little Rock.

Creditors of the fallen North Little Rock sports memorabilia and photo dealer are lined up to stake their claim on the $1.5 million payout for the renowned Conlon Collection.

The Feb. 1-2 hearing before Circuit Judge Chris Piazza will determine who gets the money held in the court registry since the collection was sold at auction on Aug. 28.

While a mix of lenders, clients and business associates prepare to make their arguments over the Conlon cash in Pulaski County Circuit Court, Rogers is scheduled to appear in federal court to change his plea to felony wire fraud after originally pleading not guilty.

The hearing in Chicago’s U.S. District Court, postponed from Feb. 3 to March 6, will come more than three years after federal agents raided Rogers’ North Little Rock business and home.

The fruits of that fraud investigation are expected to yield a plea-deal sentencing for Rogers later this year, but no details have hit the court docket.

The Conlon Collection is absent from the abridged criminal narrative of several of his fraud schemes outlined in a Sept. 9 filing by the U.S. Attorney for the Northern District of Illinois.

Bogus contracts, phantom deals, counterfeit memorabilia and forged paperwork were tools Rogers used to bilk investors, customers and banks as part of a Ponzi-style scheme involving “at least $10 million,” as noted in the federal case.

Known claims against Rogers associated with his shady financial dealings total more than $45 million.

Even his ownership of the Conlon Collection carries the taint of fraud.

According to court documents, Rogers sold or pledged interests in the collection that topped 100 percent. That math-defying trick was uncovered after creditors began stepping forward with their competing claims to the collection.

Depending on the document, Rogers paid $1 million or $2 million for the Conlon Collection and other assets in a deal with American City Business Journals Inc. of Charlotte, North Carolina. A 14-page photo ar-chive acquisition and digital library services agreement that appears to be genuine pegs the price at $1 million.

That figure is supported by bank documents regarding a $1 million wire transfer received by American City Business Journals on July 1, 2010, and the company’s accounting entry for a $1 million sale of the photo archives of its Sporting News subsidiary.

The Conlon Collection originally consisted of 8,354 glass-plate negatives when Rogers bought it. The inventory count stood at 7,462 when it was auctioned by court order last year.

“We expected the sale of the Conlon Collection to bring a total of approximately $3 million,” Amy Allen said in a sworn affidavit dated Dec. 29. “The actual sale by the receiver was disappointing.”

Allen is in the forefront of competing claimants with financial ties to the historic treasure of early 20th century major league baseball images produced by photographer Charles Conlon (1868-1945).

Her husband, Doug, arranged funding with an Illinois bank that appears to have financed the purchase of the Conlon Collection. The $1 million line of credit was held by Legendary Auctions, where Allen was president and CEO and Rogers held an ownership stake.

Doug Allen was sentenced to 57 months in federal prison last February in part for obstructing the criminal investigation of Rogers. The sports memorabilia auctioneer received the stiffer sentence after Rogers baited him into discussing past misdeeds.

Allen talked about how his negotiated guilty plea to one count of mail fraud would be threatened if the FBI knew he had tipped off Rogers about wearing a wire and a pending raid on his business.

This time Rogers was wearing the wire, and unlike Allen, he had no qualms about using the recorded conversation to his advantage.

Rogers still holds an 11 percent interest in the Conlon Collection, according to Amy Allen.

However, it is pledged to secure money Rogers owes to Legendary Auctions.

She and her family trust claim to own a combined 27 percent of the collection.

Some documents indicate Legendary Auction associates also held stakes.

The ownership percentages ebb and flow among Legendary Auction members in a mish-mash of agreements bearing dates between 2010 and 2013.

The earliest known ownership claim by an outside investor in the Conlon Collection is held by Mark Roberts of San Francisco. According to court filings, he bought a 25 percent stake from Rogers for $1.1 million in Oct. 21, 2010.

First Arkansas Bank & Trust of Jacksonville claims a security interest in the Conlon Collection as collateral on a $9.6 million loan made to one of Rogers’ businesses, Sports Cards Plus, on Dec. 19, 2011.

The bank holds a default judgment against Legends in Time LLC, which Rogers used to buy the Conlon Collection.

Judge Chris Piazza is tasked with sorting through the maze of legal arguments to determine how $1.5 million from the Conlon sale is distributed.

(See also: Case Closed: The Final Orders of Four John Rogers Lawsuits)

Simmons First National Corp. of Pine Bluff announced Monday a $462 million cash-and-stock deal to acquire First Texas BHC Inc. of Fort Worth and its $2 billion-asset subsidiary Southwest Bank.

It's the third acquisition announced by Simmons in the past 10 weeks. Its $78 million deal to buy First South Bank of Jackson, Tennessee, is expected to close in the current quarter, while the $564.4 million purchase of Bank SNB of Stillwater, Oklahoma, should close in the third quarter, pushing Simmons' assets past the $10 billion mark.

Bank SNB has five branches in Texas, and Simmons CEO George Makris Jr. said the Southwest purchase will build on that.

“Late last year, Simmons announced its introduction into the Texas markets with our proposed acquisition of Bank SNB. We now have the opportunity to substantially grow our presence in the Fort Worth metropolitan area by joining with one of the best run, most respected financial organizations in Texas," Makris said in a release announcing the deal.

Southwest Chairman and CEO Vernon Bryant and his executive team "are exemplary bankers who understand the industry and get the importance of excellent customer service," Makris continued. "Their success, both for their customers and for their organization, makes me confident that we have teamed with another great banking partner. The Southwest Bank brand itself is very well known and respected, and represents a legacy of quality banking service. Because of that legacy, we will retain the Southwest Bank brand.”

First Texas' shareholders will receive 6.5 million shares of Simmons' publicly traded stock and $70 million in cash in a deal that is expected to close in the third quarter. Southwest Bank, which has been privately owned, will then be operated as a separate bank subsidiary during what the announcments described as "an interim period" befor ebeing merged into the Simmons Bank charter.

Stephens Inc. of Little Rock was financial adviser to First Texas. Mercer Capital Management Inc. of Memphis advised Simmons.

Southwest recorded a profit of nearly $14.4 million for the nine months ending Sept. 30. After losing a combined $4.1 million during 2008-09, the company has stayed the course of profitability.

The bank reported annual profits of $16.8 million in 2015, $12.7 million in 2014 and $9.5 million in 2013.

Supported by a staff of 302, Southwest operates 16 full-service branches primarily in Fort Worth. Based on deposits, the bank held the sixth largest market share in the Tarrant County at 3.43 percent. Southwest Bank was chartered as T Bank in 1963.

(A correction has been made to this article. See end for details.)

Farmers Bank & Trust of Magnolia said Tuesday that its board of directors has named Chris Gosnell president and CEO, effective immediately.

Gosnell previously worked as president and chief banking officer. Former CEO Bob Burns will remain the bank's board chairman.

Gosnell, a 2015 Arkansas Business "40 Under 40" honoree, joined the bank in 2010. He received a bachelor of arts in administrative management from the University of Arkansas in 2003 and a master of science in operations management in 2005.  

He graduated from the Graduate School of Banking at Colorado and serves on the Arkansas Bankers Association Board of Directors.

Burns joined the bank in 1980. Under his leadership, the bank grew from $31 million in assets to $1.3 billion as of Sept. 30. By assets, Farmers is the seventh largest bank in Arkansas. It reported net income of $19.4 million in 2015 and $16.4 million for the first three quarters of 2016. 

"The Board is appreciative of all that he has done to grow Farmers into the Bank it is now, and looks forward to many more years of growth under his and Chris Gosnell's leadership," the bank said in a news release.

Farmers Bank & Trust is a 110-year-old community bank owned by privately held Magnolia Banking Corp. With more than 20 locations in Arkansas and Texas, the bank acquired 1st Bank of Texarkana, Texas, in 2015.

(Correction, Jan. 24, 2017: The original version of this story incorrectly omitted Farmers Bank's acquistion of 1st Bank.)

Southern Bancorp Inc. of Arkadelphia said Wednesday that it will acquire Farmers Bank of Hamburg (Ashley County) in a $4.5 million cash-and-stock deal.

Like many small banks, Farmers has struggled with consistent profitability since 2008. The $41.1 million-asset lender recorded net income of $238,000 that year, its best in the post meltdown era.

The bank, supported by a dozen staffers, reported a $73,000 loss through the first nine months of 2016.

Bruce Timmons, Southern Bancorp's market president for Eudora, will assume responsibility for the Hamburg market after the deal is completed. Timmons lives in Hamburg and is a 43-year banking veteran.

Kenny Allbritton, the current Farmers Bank president, will stay aboard following the merger.

The acquisition will expand the footprint of Southern Bancorp into Ashley County. Southern Bancorp is a Community Development Financial Institution with 44 locations in eight Arkansas counties and nine Mississippi counties. It has $1.1 billion in assets.

"The Hamburg community fits well into the Southern Bancorp target market," Southern Bancorp CEO Darrin Williams said in a news release. "We look forward to bringing our unique brand of banking to the area, which combines traditional banking products and services with financial development offerings such as financial education, credit and homebuyer counseling, and free tax preparation among others."

Southern said the deal aligns with its mission to "create economic opportunity through increased access to capital" and financial services in underserved communities. It's also "representative of a larger growth plan aimed at increasing Southern Bancorp's footprint," the company said.

"Our shareholders are excited to join the Southern Bancorp family, not only because of what it will mean for our customers in terms of new products and services, but also because of Southern Bancorp's mission focus, which will be a great asset to our community," said Jack Shell, Farmers' board chairman.

Gov. Asa Hutchinson on Thursday announced the following appointments.

Lona McCastlain, Austin, to the Parole Board. Appointment expires Jan. 14, 2024. Replaces James Wallace.

Ray Dillon, Little Rock, to the Arkansas Forestry Commission. Appointment expires Jan. 14, 2026. Reappointment.

Dee Holcomb, Pine Bluff, to the Arkansas Real Estate Commission. Appointment expires Dec. 31, 2019. Replaces Monica Freeland.

Bob Walker, Jacksonville, to the Arkansas Real Estate Commission. Appointment expires Dec. 31, 2019. Replaces Lesia Johnson Ford.

Eric Jackson, Hot Springs National Park, to the State Parks, Recreation and Travel Commission. Appointment expires Jan. 14, 2023. Replaces LeRoy Dangeau.

John Gill, Little Rock, to the State Parks, Recreation and Travel Commission. Appointment expires Jan. 14, 2023. Reappointment.

David Bazzel, Little Rock, to the State Parks, Recreation and Travel Commission. Appointment expires Jan. 14, 2023. Replaces Jay Bunyard.

Dr. Steven Cathey, North Little Rock, to the Arkansas State Medical Board. Appointment expires Dec. 31, 2022. Reappointment.

Dr. Sylvia Simon, Monticello, to the Arkansas State Medical Board. Appointment expires Dec. 31, 2022. Replaces Joseph Beck.

John Newcomb, Osceola, to the Board of Trustees of Arkansas Northeastern College. Appointment expires Dec. 31, 2022. Reappointment.

Clifton Chitwood, Osceola, to the Board of Trustees of Arkansas Northeastern College. Appointment expires Dec. 31, 2022. Reappointment.

Dr. Thomas Westbrook, Blytheville, to the Board of Trustees of Arkansas Northeastern College. Appointment expires Dec. 31, 2022. Reappointment.

Dr. John McAllister, Little Rock, to the Board of Trustees of the Arkansas School for the Blind and the Arkansas School for the Deaf. Appointment expires Jan. 14, 2022. Replaces Mary Weeks.

David Leech, Stuttgart, to the State Banking Board. Appointment expires Dec. 31, 2021. Replaces Elizabeth Bowles.

Dr. William Hewat, Fayetteville, to the Arkansas Livestock and Poultry Commission. Appointment expires on Jan. 14, 2024. Replaces Monty Henderson.

Mayor Mike Gaskill, Paragould, to the State Aid Street Committee. Appointment expires Dec. 31, 2020. Replaces Mayor Mark Stodola.

Michael Hocutt, Little Rock, to the Contractors Licensing Board. Appointment expires Dec. 31, 2021. Reappointment.

Larry Brewer, Conway, to the Arkansas Fire Protection Services Board. Appointment expires on Oct. 14, 2019. Reappointment.

Dr. Vern Green, Jonesboro, to the Arkansas State Board of Registration for Professional Soil Classifiers. Appointment expires Nov. 1, 2021. Replaces John Harrington.

Dr. John Fleming, Little Rock, to the Department of Human Services State Institutional System Board. Appointment expires June 30, 2018. Replaces Douglas Kidd.

Thomas Wofford Jr., Jonesboro, to the Arkansas Department of Aeronautics. Appointment expires Nov. 9, 2021. Replaces William Morgan.

James Dawson, Clinton, to the Arkansas Department of Aeronautics. Appointment expires on Nov. 9, 2021. Replaces William McKenzie.

Barry Ball, Blytheville, to the Blytheville-Gosnell Regional Airport Authority. Appointment expires Nov. 1, 2022. Reappointment.

Russell Crowell, Manila, to the Blytheville-Gosnell Regional Airport Authority. Appointment expires Nov. 1, 2022. Replaces Oscar Ford.

Thomas Spillyards, Rogers, to the Board of Directors of the Arkansas Development Finance Authority. Appointment expires Jan. 14, 2021. Reappointment.

Gregory Stanfill, Rogers, to the Board of Directors of the Arkansas Development Finance Authority. Appointment expires Jan. 14, 2021. Reappointment.

Katelyn Busby, Monticello, to the Board of Directors of the Arkansas Development Finance Authority. Appointment expires Jan. 14, 2020. Replaces Sarah Capp.

Stephanie Ellis, Russellville, to the Board of Directors of the Arkansas Development Finance Authority. Appointment expires Jan. 14, 2021. Replaces Charley Baxter.

Larry Tate, Little Rock, to the Board of Directors of the Arkansas Development Finance Authority. Appointment expires Jan.14, 2021. Replaces Anthony Brooks.

Robert Moore, Arkansas City, to the Governor’s Advisory Council on Cycling. Serves at the will of the Governor.

Dr. Michelle Smith, North Little Rock, to the Governor’s Advisory Council on Cycling. Serves at the will of the Governor.

David Roberts, Maumelle, to the Governor’s Advisory Council on Cycling. Serves at the will of the Governor.

Joseph Jacobs, Little Rock, to the Governor’s Advisory Council on Cycling. Serves at the will of the Governor.

David Knight, Little Rock, to the Governor’s Advisory Council on Cycling. Serves at the will of the Governor.

D. Jim Dailey, Little Rock, to the Governor’s Advisory Council on Cycling. Serves at the will of the Governor.

Michael Chaffin, Little Rock, to the Governor’s Advisory Council on Cycling. Serves at the will of the Governor.

Dr. Jennifer Conner, Portland, to the Governor’s Advisory Council on Cycling. Serves at the will of the Governor.

Paxton Roberts, Fayetteville, to the Governor’s Advisory Council on Cycling. Serves at the will of the Governor.

Cherry Stewart, Hope, as a Justice of the Peace for the Hempstead County Quorum Court, District 2. Appointment expires Dec. 31, 2018. Replaces Billy Rook.

Kandice Bell, White Hall, as a Special Associate Justice of the Supreme Court of Arkansas. CV-16-435 Samuel A. Perroni v. David Sachar, executive director. Replaces Justice Karen Baker, who has disqualified herself from the case.

In today's Morning Roundup enewsletter, we linked to a story in the Texarkana Gazette about the Hempstead County Quorum Court voting to negotiate with Farmers Bank & Trust of Magnolia to purchase Farmers' building in downtown Hope.

In our summary of the story, we said Farmers is being purchased by Southern Bancorp Inc., but that is incorrect.

Southern Bancorp is buying a bank with a similar name, Farmers Bank of Hamburg (Ashley County).

We apologize for the error.

Howard M. Beaty Jr., president and CEO of First State Bank of Crossett for the past decade, has agreed to a $35,000 fine by the Federal Deposit Insurance Corp. for failing to file required reports on suspicious activity.

The consent order that Beaty entered with the FDIC on Dec. 15 was made public Friday morning. It contains few details, saying only that Beaty was First State's Bank Secrecy Act officer between 2010 and 2012 and that he "failed to timely file suspicious activity reports as required" by federal bank regulations.

More: See the consent order.

In addition to the fine, the order imposes several other requirements on Beaty, including "[i]f he knows, suspects or has reason to suspect that a transaction involves illegal activity, report the activity to the appropriate law enforcement authorities."

He was required to provide a copy of the order to the chairman of First State's board of directors, and he's required to inform any future bank employer of the order.

Beaty was not immediately available for comment Friday morning.

Kathy Deck said northwest Arkansas and health care services will be strong points for an otherwise less robust Arkansas job market in 2017.

Deck, the director of the Center for Business and Economic Research at the University of Arkansas in Fayetteville, made her remarks Friday at the 23rd annual Business Forecast Luncheon at the Hammons Center in Rogers. A year ago, Deck used "Cruising Altitude" as a metaphor for her Arkansas presentation; this year's outlook was less rosy.

"I now see us as more circling and trying to avoid the turbulence," Deck said. "Not exactly coming in for a landing but not an ascent either. That does mean we expect to see somewhat of a slowed pace into the rest of the year."

Deck said non-farm employment grew just 0.2 percent in Arkansas and by 0.7 percent in northwest Arkansas. Northwest Arkansas' job market is dominated by the trade, transportation and utilities industry and the professional and business services industry, which combine to account for 44 percent of the area’s jobs.

That should change in 2017. Northwest Arkansas is in the midst of a health care boom with multimillion-dollar construction projects by Mercy Northwest Hospital, Arkansas Children's Hospital and Washington Regional Medical Center.

Deck predicts an addition of 1,000 health care jobs as a result of the investments. Overall, she projects 4,400 jobs to be added in the region in 2017.

Despite northwest Arkansas' strong projection — even as Deck admitted that 4,400 jobs was a decrease from previous years — the state of Arkansas was only expected to add 4,800 jobs. That's 400 jobs overall even with a red-hot Jonesboro market and a relatively stable central Arkansas.

"I'm afraid we find ourselves very similarly oriented to where we were about 10 years ago where the non-metro parts of this state are not contributing in the same way," Deck said. "That's something for us to watch and it's a change from the first half of last year to the second half of this year."
The state's overall unemployment rate is below the national average but per capita income is lower than the rest of the country. The per capita income rate in northwest Arkansas remains higher than the national average but that gap closed this past year.

There was a significant drop in the northwest Arkansas job force numbers, which Deck said was because the region had reabsorbed those workers who had left the market during the recession of a decade ago. The state's labor force number was actually negative from 2015 to 2016. 

"I'm looking for job growth in places that are not northwest Arkansas or central Arkansas or Jonesboro," Deck said of her hopes for 2017.

The luncheon's presentations were moderated by Shelley Simpson, the chief marketing officer and executive vice president of J.B. Hunt Transport Services Inc. of Lowell. Stuart Mackintosh, the executive director of the Group of Thirty financial think tank, gave the global forecast, and former Department of Commerce economic advisor Ellen Hughes-Cromwick gave the national forecast.

Mackintosh opened with the disclaimer that his forecast represented his opinion and not those of the Group of Thirty. Mackintosh spoke of his worries about the "retreat" of globalization and a rise of individual country's mercantilism amid a "modestly positive" world economic forecast.

Hughes-Cromwick said the current American economy has expanded for 30 consecutive quarters, one of the longest in history. 

"The consumer has been the heart and soul of this economic expansion," Hughes-Cromwick said. "There's only three economic expansions in U.S. history have been longer. 

"Sustained economic expansion is a very healthy backdrop, even though we're not happy it's 2 percent growth as opposed to 3 or 4. Having sustained economic expansion in a post-financial crisis period is excellent; I'd give that a 5-star rating. Sustainability is more important than the rate of growth at this point in the business cycle."

Little Rock’s One Bank & Trust continues to operate under an unusual arrangement more than four years after the ouster of its owner and CEO, Layton “Scooter” Stuart.

The $310 million-asset lender has no stockholders in the normal sense. The U.S. Treasury beneficially controls OneFinancial Corp., the bank’s insolvent parent company.

However, Uncle Sam has adopted a passive position regarding its control of the OneFinancial shares, assuming the role of a debtor rather than an equity holder.

OneFinancial is still on the hook to repay $17.3 million it received from Treasury’s Capital Purchase Program back in June 2009. Many a quarter has passed since One Bank delivered dividends toward that debt.

All told, Uncle Sam has received nearly $7.7 million in connection with OneFinancial through interest payments and a settlement with the estate of Stuart, who died in March 2013.

Money from his life insurance proved to be a fiscal lifesaver for One Bank, although operational losses remain a quarterly norm.

That situation isn’t expected to change in the final quarter of 2016.

“Well, we’re going to lose money, but we’re continuing to make progress,” said Jerry Pavlas, brought in as One Bank CEO after Stuart’s forced exit in 2012.

A capital raise or sale remains on the table of possibilities for the bank.

“We’re looking to get to 9-10 percent tier one capital,” Pavlas said.

Making that mark would require doubling its current tally, more than $13 million.

One Bank & Trust, Little Rock
Staff: 73
Full-Service Locations: Little Rock 7; North Little Rock, 1
(All dollars in thousands)

*Reflects net unrealized loss of $978,000 on available-for-sale securities.
**Reflects a $3 million extraordinary item, money released from seized assets of Scooter Stuart held by the U.S. government. The cash reimbursed One Bank for premiums paid on the life insurance policy of Stuart, former owner and CEO of One Bank.
#Reflects a $1 million settlement the bank received in a lawsuit against Travelers Indemnity Co., an affiliate of St. Paul Mercury Insurance Co. The dispute was tied to One Bank’s efforts to collect $2 million on its financial institution bond for coverage that included “dishonesty of employees.”
##Reflects a $403,000 gain on the sale of mortgages on the secondary market.
+Reflects a $6,916,000 extraordinary item, final settlement release of seized assets of Scooter Stuart held by the U.S. government.