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Most Simmons First Executives See Pay Drop in 2016

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George Makris Jr., 60, chairman and CEO of Simmons First National Corp., received total compensation of more than $2.4 million during 2016. That was almost 22.4 percent lower than 2015, according to information in the company's proxy statement released late yesterday.

Double-digit drops were reflected in all but one top executive at the $8.4 billion-asset bank holding company.

The total 2016 compensation of Robert Fehlman, 52, chief financial officer, and Marty Casteel, 65, senior executive vice president, each topped $1.1 million. That reflected declines of 20.2 percent for Casteel and 21.6 percent for Fehlman.

Barry Ledbetter, 54, executive vice president and chief banking officer, was the only Simmons First officer among the top five to receive in an increase in his total 2016 compensation. His combination of salary, stock awards and more totaled $819,752, a nearly 7.4 percent increase.

Patrick Burrow, 63, executive vice president and general counsel, received total compensation of $656,061 during 2016, a 12.8 percent reduction compared to 2015.

The base salaries among the top five executives were: Makris, $625,000; Fehlman and Casteel, $344,500; Ledbetter, $315,665; and Burrow, $271,310.

The two largest blocks of Simmons First stock are controlled by BlackRock Inc. of New York, 10.8 percent worth $192.4 million; and The Vanguard Group of Malvern, Pennsylvania, 7.57 percent worth $134.8 million.

Christopher Kirkland, 47, a real estate investor in Brentwood, Tennessee, who joined the Simmons First board in 2015, is the largest shareholder among company insiders. His 2 percent stake is worth nearly $36.4 million.

The Simmons First annual shareholders meeting will be held at 11 a.m. Wednesday, April 19 in the Ryburn Community Room at the company's headquarters at 501 Main St. in Pine Bluff.


Fed Hikes Key Rate for Second Time in 3 Months

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WASHINGTON — The Federal Reserve has raised its benchmark interest rate for the second time in three months and signaled that any further hikes this year will be gradual. The move reflects a consistently solid U.S. economy and will likely mean higher rates on some consumer and business loans.

The Fed's key short-term rate is rising by a quarter-point to a still-low range of 0.75 percent to 1 percent. The central bank said in a statement that a strengthening job market and rising prices had moved it closer to its targets for employment and inflation.

More: Read the Fed's complete statement.

The message the Fed sent Wednesday is that nearly eight years after the Great Recession ended, the economy no longer needs the support of ultra-low borrowing rates and is healthy enough to withstand steadily tighter credit.

The decision was approved on a 9-1 vote, with Neel Kashkari, the head of the Fed's regional bank in Minneapolis, the dissenting vote. The statement said Kashkari preferred to leave rates unchanged .

The Fed's forecast for future hikes, drawn from the views of 17 officials, still projects that it will raise rates three times this year, unchanged from the last forecast in December. But the number of Fed officials who think three rate hikes will be appropriate rose from six to nine.

The central bank's outlook for the economy changed little, with officials expecting economic growth of 2.1 percent this year and next year before slipping to 1.9 percent in 2019. Those forecasts are far below the 4 percent growth that President Donald Trump has said he can produce with his economic program.

In recent weeks, investors had seemed unfazed by the possibility that the Fed would raise rates several times in the coming months. Instead, Wall Street has been sustaining a stock market rally that began with President Donald Trump's election in November, buoyed by the prospect that tax cuts, an easing of regulations and higher spending for infrastructure will accelerate growth.

A robust February jobs report — 235,000 added jobs, solid pay gains and a dip in the unemployment rate to 4.7 percent — added to the perception that the economy appears fundamentally strong.

That the Fed is no longer unsettling investors with the signal of a forthcoming rate increase marks quite a change from the anxiety that prevailed after 2008, when the central bank cut its key rate to a record low and kept it there for seven years. During those years, any slight shift in sentiment about when the Fed might begin raising rates — a step that would lead eventually to higher loan rates for consumers and businesses — was enough to move global markets.

In 2013, then-Chairman Ben Bernanke sent markets into a panic merely by mentioning that the Fed was contemplating slowing the pace of its bond purchases, which it was using then to keep long-term borrowing rates low.

But now, the economy is widely considered sturdy enough to handle modestly higher loan rates. Inflation, which had stayed undesirably low for years, is edging near the 2 percent annual rate that the Fed views as optimal.

And while the broadest gauge of the economy's health — the gross domestic product — remains well below levels associated with a healthy economy, many analysts say they're optimistic that Trump's proposed tax cuts, infrastructure spending increases and deregulation may accelerate growth. Those proposals have lifted the confidence of business executives and offset concerns that investors might otherwise have had about the effects of Fed rate increases.

Yet for the same reason, some caution that if Trump's program fails to survive Congress intact, concerns will arise that the president's plans won't deliver much economic punch. Investors may start to fret about how steadily higher Fed rates will raise the cost of borrowing and slow spending by consumers and businesses.

The Fed typically raises rates to prevent an economy from overheating and inflation from rising too high. But throughout the Fed's history, its efforts to control inflation have sometimes gone too far — slowing borrowing and spending so much as to trigger a recession. Already, the current expansion, which officially began in 2009, is the third-longest in the post-World War II period.

The Fed's benchmark rate, after modest increases in December 2015 and December 2016 and again on Wednesday, is still quite low by historical standards. But if the Fed ends up raising rates three or four times this year and follows up with three additional hikes in 2018, its benchmark rate would be left at a level that might start to dampen economic activity.

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

Governor Appoints Arkansas CEOs to Study State's Computer, Data Sector

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Gov. Asa Hutchinson on Friday announced the formation of the blue ribbon commission to study how to grow the state's computer science and data analytics sector.

The 19-member commission, co-chaired by Acxiom Corp. founder Charles Morgan and Arkansas Economic Development Commission Executive Director Mike Preston, begins meeting later this month.

"This esteemed group of Arkansans, through their expertise and guidance, will allow the state to address the opportunities and obstacles we must address to create an environment in which our technology sector can thrive," the governor said in a news release. 

"This is the next step in growing the computer coding initiative as it will allow our higher education institutions and workforce development agencies to address the specific needs of Arkansas companies in the computer science and data analytics sector," he said.

Other members of the commission include Warren Stephens, CEO of Stephens Inc. of Little Rock; John Roberts, CEO of J.B. Hunt Transport Services Inc. of Lowell; Andrew Clyde, CEO of Murphy USA Inc. of El Dorado; and Clay Johnson, enterprise chief information officer and executive vice president for global business services at Wal-Mart Stores Inc. of Bentonville.

The governor's office said the Blue Ribbon Commission to Report on the Economic Competitiveness of Computing and Data Analytics in Arkansas will "study opportunities to grow the sector of Arkansas' economy associated with computer science and data analytics."

Hutchinson has asked the commission to produce a report, due in the fall 2017, that addresses "business challenges in computing and data analytics, potential application niche areas for Arkansas to build excellence/depth in computing and data analytics and skill needs and challenges of Arkansas' talent pipeline."

Along with Morgan and Mike Preston, the commission's members are:

  • Jerry Adams, Arkansas Research Alliance
  • Donald Bobbitt, University of Arkansas System
  • Charles Welch, Arkansas State University System
  • Maria Markham, Arkansas Department of Higher Education
  • Andrew Clyde,  Murphy USA
  • Ed Drilling, AT&T Arkansas
  • John Haley, Circumference Group
  • Walter Smiley, formerly with Systematics
  • Todd Hillman, MISO
  • Rich Howe, Inuvo
  • Sonja Hubbard, E-Z Mart
  • Gaylon Lawrence, The Lawrence Group
  • John Roberts, J.B. Hunt
  • Jerry Jones, Acxiom
  • Monica McGurk, Tyson Foods
  • Warren Stephens, Stephens Inc.
  • Clay Johnson, Walmart

Memory Care Facility Visited by $14M Sale (Real Deals)

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A 74-bed assisted living center in west Little Rock weighed in at $14.07 million.

MHI Little Rock Ltd., an affiliate of Mainstreet Health Investments of Carmel, Indiana, bought the 43,988-SF Memory Care of Little Rock at Good Shepherd facility at 2501 Aldersgate Road.

The seller is MC-Little Rock AR-1 UT LLC, an affiliate of the Embree Group in Georgetown, Texas.

The 5.7-acre development previously was tied to a November 2014 mortgage of $9.5 million held by Metropolitan National Bank of Nashville, Tennessee.

The location was purchased for $745,000 in November 2014 from ERC Foundation Inc., led by Mark Davis.

CVS Transaction
A 13,536-SF CVS Pharmacy in southwest Little Rock changed hands in a $5.71 million sale.

Centennial Associates No. 1 LLC and Centennial Associates No. 2 LLC, both in Narberth, Pennsylvania, acquired the 8902 Geyer Springs Road project.

The seller is MC Little Rock AR Landlord LLC, an affiliate of SunTrust Equity Funding LLC of Atlanta.

The 2.31-acre development is backed with a $3.4 million loan from First Fidelity Bank of Oklahoma City. The location was assembled in three transactions totaling $2.08 million.

The sellers were the John Perry Trust, $880,000 in April 2015 for the Advantage Auto Parts store at 8902 Geyer Springs Road; APS Investment LLC, led by Avtar Momi and Satpal Kamboj, $800,000 in May 2015 for the Exxon Food Mart project at 6001 Baseline Road; and JV Holding Co., led by John Vice II, $400,000 in May 2015 for a 1.16-acre parcel.

Grill Acquisition
A 7,090-SF eatery in west Little Rock tipped the scales at $2.52 million. DB Triple Dipper Restaurant LLC, an affiliate of Fortress Investment Group of New York, purchased Romano’s Macaroni Grill at 11100 W. Markham St. from Centre Structured Trust 2 of New York.

The 2.64-acre development is helping secure a $70.4 million funding agreement with Wells Fargo Bank of Sioux Falls, South Dakota.

The property previously helped secure a November 1997 mortgage of $10.5 million held by First Union National Bank of Charlotte, North Carolina.

The project was purchased for $2.01 million more than 19 years ago from Modernage Inc., an affiliate of Brinker International in Dallas.

Liquid Assets
A beverage project in Little Rock is under new ownership after a $1.65 million transaction.

Turner Holdings LLC, an affiliate of Hiland Dairy Co. of Springfield, Missouri, bought the 97,378-SF Shooting Star Beverages facility at 6921 Interstate 30 from the receiver for Clear Water Holdings LLC of Tulsa.

The 17.67-acre property helped secure mortgages totaling $13 million held by Simmons Bank of Pine Bluff.

Clear Water acquired the former Mountain Pure Water property as part of a $6 million foreclosure sale in October 2014. Simmons held a March 2014 foreclosure judgment of $16.7 million against Mount Pure.

The judgment was connected with a series of loans made by Little Rock’s Metropolitan National Bank and inherited by Simmons, which bought Metropolitan in a bankruptcy auction.

Warehouse Package
Warehouse property in south Little Rock rang up a $750,000 sale.

3200 Myers Street Partners LLC of Colton, California, purchased a 34,688-SF warehouse at 3015 Lewis St., a 30,360-SF warehouse at 3100 Elm St., a 9,500-SF warehouse at 4313 Asher Ave., a 6,500-SF warehouse at 4119 Asher Ave. and a 4,800-SF warehouse at 3013 Lewis St.

The seller is Moon Distributors Inc., led by Stan Hastings. The deal is financed with a three-year loan of $525,000 from Stone Bank of Mountain View.

The Hastings family assembled the properties in seven transactions with:

  • The H.L. Remmel estate, $4,000 in September 1945 for the 1.22-acre 3100 Elm St. development, the 1.05-acre 3015 Lewis St. development and the 0.17-acre 3013 Lewis St. development.
  • J.R. and Helen Rice, an undisclosed sum in August 1946 for the 0.16-acre development at 4119 Asher Ave.
  • Marie Meyers Busch et al, $8,000 in November 1947 for the 0.31-acre development at 4313 Asher Ave. and a 0.57-acre property at the southeast corner of 31st and Cedar streets
  • Fidelity Realty Co., led by E.J. Pope, $12,000 in March 1959 for a 1.16-acre property at the southeast corner of 31st and Cedar streets.
  • Reva Moravec, Charlie and Beulah Henderson and Grady and Irene Hen-derson, $6,000 for a 0.32-acre parcel on Lewis Street.
  • Alva L. Smith estate, $5,000 in August 1975 for a 0.17-acre parcel on Lewis Street.
  • Verna Stinson, $4,000 in February 1997 for a 0.16-acre parcel near the southeast corner of Asher Avenue and Lewis Street.

Multifamily Sale I
Seven apartment buildings in North Little Rock drew a $600,000 transaction.

Johan and Juanita Adineh-Kharat acquired 33 units at 4905, 4909, 5001, 5005, 5009, 5101 and 5105 N. Walnut Road from Sharon Smith.

The deal is funded with a one-year loan of $1.3 million from First Arkansas Bank & Trust of Jacksonville.

The combined 1.94-acre property was assembled during July 1966 through July 1970 in seven transactions totaling more than $25,000 with Metropolitan Trust Co., led by Justin Matthews III.

Multifamily Sale II
A 24-unit apartment project and adjoining land in Little Rock sold for $435,000. Town Creek LLC, led by Randy Ferguson, bought the Mabelvale Apartments at 7414 Mabelvale Pike and a neighboring 1.2-acre parcel.

The seller is 133 LLC, led by Keith Jackson.

The combined 1.87-acre property previously was linked with a September 2011 mortgage of $467,500 held by BancorpSouth Bank of Tupelo, Mississippi.

The property was acquired for $550,000 in September 2011 from the Harold E. Tucker Irrevocable Trust.

Country Club Manor
A 5,012-SF home near the Country Club of Little Rock tipped the scales at $1.29 million.

Robert and Eliza Gaines purchased the house from Clark and Katherine Raborn. The deal is backed with a 30-year loan of $800,000 from IberiaBank of Lafayette, Louisiana.

The residence previously was tied to a May 2012 mortgage of $900,000 and May 2014 mortgage of $125,000 held by Quicken Loans Inc. of Detroit.

The property was bought for $360,000 in November 2006 from the Patrick R. Harding Revocable Trust.

Duclair Court
A 4,352-SF home in the Duclair Court neighborhood of west Little Rock’s Chenal Valley development changed hands in a $625,000 sale.

William and Mary Cavin acquired the house from the Suzanne Lindsay Bradshaw Revocable Trust.

The residence previously was linked with a June 2016 mortgage of $600,000 held by IberiaBank.

The property was purchased for $720,000 in May 2007 from Dr. Thomas Horn and Donald Levin.

Lamarche Abode
A 4,424-SF home in the Lamarche Place neighborhood of west Little Rock’s Chenal Valley development is under new ownership after a $530,000 transaction.

Steven and Ashley Smith bought the house from Phillip and Lauri Currier. The deal is funded with a 30-year loan of $424,000 from IberiaBank.

The residence previously was tied to a July 2006 mortgage of $370,000 held by Pulaski Mortgage Co. of Little Rock.

The location was acquired for $90,000 in April 2005 from Rangaswamy and Sabitha Govindarajan.

Seven-Digit Construction

Rodney Parham Storage Center    $2,200,000
9305 N. Rodney Parham Road, Little Rock
Rodney Parham Storage Center LLC, Fayetteville

Stop Payday Lending – Again (Editorial)

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Arkansans have repeatedly affirmed at the ballot box that they oppose predatory lending. Amendment 89 to the state Constitution caps interest rates at 17 percent, and in 2008, Attorney General Dustin McDaniel forced payday lenders to leave the state.

But two Arkansas legislators — Rep. Michelle Gray and Sen. Bart Hester — are trying to make it easier for predatory lenders to operate in Arkansas. State Sen. Jason Rapert, meanwhile, is trying to shut them down.

Within the past couple of years, one company, CashMax, has set up shop in the state, charging up to 280 percent interest on loans, as calculated under the federal Truth in Lending Act guidelines. The company calls the usurious rate “fees,” which, it says, are allowed under Arkansas law.

Gray’s measure would let “credit services organizations” offer guaranty services, for a fee amounting to interest rates far higher than 17 percent. Hester’s bill would allow fees on top of interest.

Rapert, however, has proposed Senate Bill 658, which would prohibit such fees. “The state of Arkansas has been very clear that predatory lending is not welcome in our state,” he said. “That meant the closure of what has been known as payday lending entities across the state and a stop to the predatory lending practices that we had seen happening — preying on poor individuals, down on their luck.”

Missing in action has been our current AG, Leslie Rutledge, who has been silent on the issue, despite receiving a complaint about CashMax months ago. And in January, state Sen. Jane English asked Rutledge for an opinion on whether CashMax’s fees count as interest. So far, there’s been no response from the attorney general’s office.

We support Rapert’s effort to fight predatory lenders and hope that Rutledge lends the proper legal support to the battle.

Arkansas Business Presents The Influencers

Arkansas Unemployment Rate Through the Years

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The Federal Reserve Bank of St. Louis, which researches a number of economic issues, is the source for the accompanying chart, which tracks Arkansas’ unemployment rate from Jan. 1, 1976, through Dec. 1, 2016, when it stood at 3.9 percent.

The high point for unemployment in the state during these years occurred from December 1982 through February 1983, when it was 10.3 percent. This was immediately following the 1981-82 recession, which officially began in July 1981 and ended in November 1982, according to the National Bureau of Economic Research.

In the aftermath of the Great Recession — December 2007 through June 2009 — Arkansas’ jobless rate rose to 8.4 percent in January 2011, remaining there through May 2011.

The state’s current unemployment rate fell to 3.8 percent in January, its lowest ever.

The Influencers: Darrin Williams of Southern Bancorp

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Darrin Williams stepped into leadership at Southern Bancorp Inc. after coming to prominence as a successful Little Rock lawyer and state legislator.

As CEO of Southern Bancorp, Williams, 48, oversees blending the two worlds of a for-profit lender and a nonprofit community development financial institution.

The $1.1 billion-asset Southern Bancorp Bank of Arkadelphia, one of the largest rural development banks in the nation, helps support its charitable sister company, Southern Bancorp Community Partners.

After leading at Southern Bancorp for more than three years, Williams believes an unofficial title better defines his role: “I’m not a CEO,” he said. “I’m a CCO, chief cultural officer.”

He focuses his energies on promoting a unified vision and consistent internal branding of the organization, where traditional banking backgrounds are common among the employee roster. Helping accomplish this are 25 cultural ambassadors, staffers from around Southern Bancorp’s network who compose its Brand Council.

“Putting profits above people is what led to the 2008 financial meltdown,” Williams said.

While conventional loans are welcomed as part of the mix, stretching beyond the norm to make a difference is an accepted part of the risk analysis.

That is quantified in a 10-year goal of helping 10,000 people attain affordable housing through ownership, helping create and retain 100,000 jobs and helping empower 1 million customers to save and create wealth.

That last item looks particularly ambitious given Southern Bancorp’s current count of 80,000 bank customers. Williams isn’t daunted.

Helping people build net worth helps break the poverty cycle. To that end, even small things add up, such as helping people save more by preparing tax returns at no charge or providing a check-cashing venue for unbankable clientele with bad credit or no credit.

“We will give people accounts,” Williams said. “Some may not get overdraft protection because of a really bad credit history. We are willing to take chances on people other banks won’t. When it comes to loans, we try not to say no, but we may say, ‘Not yet.’”

On a recent Tuesday morning, Williams was extra stoked, energized after the equivalent of a revival meeting for do-gooder financiers on the other side of the world at the March 7-9 conference of the Global Alliance for Banking on Values in Kathmandu.

An on-the-ground tour of microlending successes in Nepal gave inspirational juice to a literal mountaintop experience in the Himalayas.

The big impact of small loans was a powerful lesson. Loans of less than $10,000 account for 55 percent of Southern Bancorp’s lending activity.

“It’s interesting to see that all across the world, although our financial institutions are different, the issues are so similar,” said Williams, the adopted son of a Church of Christ minister and his wife. “Our mission is poverty alleviation by making financing available regardless of privilege of birth or ZIP code.”

Most of the company’s 366 staffers are devoted to the bank, which operates in eight counties in southern and eastern Arkansas as well as nine counties in Mississippi.

On his watch, Southern Bancorp has struck several deals to expand its footprint on both sides of the Mississippi.

Regulatory-mandated divestiture prompted Pine Bluff’s Simmons First National Corp. to donate in 2014 a branch at Eudora in extreme southeast Arkansas. The $15.9 million-asset Bank of Bolivar County (Mississippi) was purchased for $1.1 million in December 2014.

Southern Bancorp is buying the $42.9 million-asset Farmers Bank of Hamburg (Ashley County) in a $4.5 million transaction.

The increased cost of operating in a post-2008 regulatory environment has created more opportunities for deals with small banks struggling for profit and seeking an exit strategy.

Supported by a mix of operational income and financial benevolence, the organization recorded a profit of $10 million through Southern Bancorp Bank in 2016.

“At the heart of it, we run a loan fund,” Williams said. “No margin, no mission. If we were a pure nonprofit, we would suck at it because we pay taxes every year.”

Williams was surprised when he was asked to be the CEO in 2012. At the time, he was heading toward his last term as a state representative and serving as managing partner at the Little Rock law firm of Carney Williams Bates & Pulliam PLLC.

“I was in the business of suing banks and public companies as a partner in a class-action practice. I told them, ‘Thanks, but no thanks.’”

But he did agree to join the board and reconsidered the CEO job in 2013 when his wife asked him what he would do if he could do anything.

“If I could do what I wanted to do, I would help people understand how to use money,” Williams said. “Every day, we’re helping people improve their lives.”

He had thoughts of running for Arkansas attorney general while serving as a Pulaski County state representative in 2009-14. He was well-acquainted with the office, having been chief deputy attorney general to Mark Pryor from 1999 to 2002.

“I would’ve loved the opportunity to serve, but I was able to serve the people of District 36 for three terms,” Williams said.

He was recognized nationally for his legislative work, including being named a 2013 Champion of Small Business by the National Capital Coalition and an Aspen-Rodel Fellow in Public Leadership by the Aspen Institute. Williams also was named as one of 12 state legislators from around the country as a Legislator to Watch by Governing Magazine.

Now, any political aspirations are subsumed by his Southern Bancorp work. “Never say never,” said Williams, a 1990 history graduate of Hendrix College. “I am a political animal, but I am a practical politician. I think I can do as much good and service for people where I am.”

He started building his leadership resume as student body president of Little Rock Central High School in 1985-86. Internships for Arkansas Secretary of State Bill McCuen and U.S. Sen. David Pryor accompanied his college years.

Work in the Office of the General Counsel for the Securities & Exchange Commission followed his law degree at Vanderbilt University and master’s in securities and financial regulation at Georgetown.

‘Good Business Sense’
Williams remains an advocate for improving the state earned income tax credit by modeling it after the federal program. It’s a move with an eye toward helping people climb the financial ladder on their way to moving into higher tax brackets.

“These are people who are working but struggling to make ends meet,” he said. “We gotta help folks who need help. We can’t afford not to. It makes good business sense.”

Williams, a member of the Democratic Party, was tapped to preside over the House of Representatives during the 89th General Assembly. That changed when Republicans won control of the House in the 2012 general election.

That partisan, power-changing event, which hadn’t occurred in 138 years, led to Williams becoming a former House Speaker-designate instead of the first black Speaker of the House.

“I’m going to be a footnote in the history of Arkansas,” he said with a laugh. “But the right thing happened.”

As Speaker pro tempore of the Arkansas House of Representatives in the 2013 legislative session, Williams said, he was able to carry the ball more effectively for health care reform.

“Had I been the Speaker, that would not have happened,” Williams said.

See more of Arkansas Business Presents The Influencers


Venture Center, Bear State Bank Partner on FinTech Accelerator

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The Venture Center of Little Rock on Thursday announced its partnership with Bear State Bank for the 2017 VC FinTech Accelerator, which is sponsored by global technology services provider FIS and held at the Little Rock Technology Park.

The accelerator is a 12-week program designed to help early stage startups grow. Ten startups will be selected from a pool of 295 applicants to participate.

Lee Watson, CEO and president of the Venture Center, said in a news release, "It is our strong relationships within the banking community that makes our accelerator program globally competitive."

The Venture Center said financial institutions that partner with it will gain early access to the latest innovation in the industry.

Yurik Paroubek, chief technology officer at the bank, said in the release, "People interact with money in every aspect of their lives and we need to find ways to make those interactions simple, mobile and effective for our customers."

Partnering with the accelerator will help the bank provide customers with a better experience, he said.

US Home Sales Slowed in February After January Surge

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WASHINGTON — Americans retreated from buying existing homes in February, a pullback after sales in January had surged to the fastest pace in a decade. But over the past 12 months, sales are up solidly.

Sales of existing homes fell 3.7 percent last month to a seasonally adjusted annual rate of 5.48 million, the National Association of Realtors said Wednesday. The decline may represent just a temporary slump after the sharp sales increase in January.

Stable hiring and a recovering economy have fueled greater demand among homebuyers. Over the past year, purchases have risen 5.4 percent. At the same time, sales growth has been restricted by a shortage of homes on the market.

"The underlying story is still very positive for the housing market," said Jennifer Lee, a senior economist at BMO Capital Markets. "The February drop is just a blip in the overall trend."

The limited inventory and risks of rising mortgage rates may actually cause the spring home-buying season to begin with a sprint this month. Unlike last year when average 30-year mortgage rates held below 4 percent, buyers may this year feel forced to act swiftly before even higher loan rates and prices make home ownership less affordable.

The number of listings for sale has tumbled 6.4 percent over the past year to 1.75 million homes, a figure only slightly higher than in January when listings declined to the lowest level since the Realtors began tracking the data in 1999.

The supply of homes for sale has fallen on an annual basis for the past 21 months. With inventories squeezed, home values have been rising at levels that are putting greater financial pressure on would-be buyers.

The median sales price has risen 7.7 percent from a year ago to $228,400, more than double the pace of average wage gains.

Lower mortgage rates had eased some of that pressure last year. But the average 30-year fixed rate mortgage carried an interest rate of 4.3 percent last week, up from an average of 3.65 percent last year, according to mortgage buyer Freddie Mac.

In February, sales of existing homes slumped in the Northeast, Midwest and West, while the South eked out a slight gain.

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

SPONSORED: Smart Uses for Your Tax Return

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What's not to love about receiving money? It's why millions and millions of people play the lottery each year. And while most won't be lucky enough to win the jackpot, they may very well receive money in a far more common way — getting a tax refund.

For some Americans, tax time is a time of excitement as they wait for a check in the mail or an electronic bank account deposit from Uncle Sam due to overpayment of taxes. Because this money is often considered extra money, many people will use the funds to splurge — maybe take a vacation or install a big screen TV. But while those may be considered fun purchases, the excitement of having them often wears off pretty quickly.

If, however, you use your refund wisely, you can take advantage of long-lasting benefits. Here are some great suggestions for putting your tax refund to work all year long:

  • Build an emergency fund. Many people live paycheck to paycheck. That makes managing unexpected expenses, such as car or home repairs difficult to manage. One way to protect yourself from unexpected expenses or losses in income is to have an emergency fund in a liquid savings account.
  • Reduce debt. Do you have higher-interest credit card, auto loan or other debt? Consider using your tax return to pay down your debt. It's always wise to pay off the highest-interest debt first.
  • Make home improvements. Does your home need new windows or a new roof? Consider using your tax return money to finance these important home improvements which can add value to your home.
  • Make an energy-efficient purchase. Use your refund to purchase energy-efficient appliances, such as a dishwasher, dryer or refrigerator, which can save you money all year long.
  • Start a college savings plan. If you have children, consider using the funds to open an Education IRA or 529 college savings plan. Once you open the plan, arrange to invest in the fund on an ongoing a basis. Even a small amount of money each month will add up over time.
  • Save for retirement. If you don't have a retirement plan through your employer, consider opening an Individual Retirement Account (IRA) with your refund check. Be sure to check with your tax advisor first.
  • Pre-pay your mortgage. If you want to reduce the term of your loan and the amount of interest you will pay over the life of the loan, consider putting the funds from your tax return down on the principal of your mortgage.

The decision on how to best use your tax return depends on your unique financial situation. However, if you choose any of the options above, you're sure to win.

US New Home Sales Rise Despite Higher Mortgage Rates

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WASHINGTON — Americans responded to higher mortgage rates by snapping up new homes in February at the fastest pace since July.

New-home sales rose 6.1 percent month-over-month to a seasonally adjusted annual rate of 592,000, the Commerce Department said Thursday. That sales pace is nearly 13 percent higher than February of last year, a positive sign for the housing market that demand is robust at the start of the spring home-buying season.

Healthy job growth and a recovering economy have pushed up interest in new homes, while the prospect of rising mortgage rates since the November presidential election may have pulled some sales forward.

Builders have ramped up the construction of new homes, which helps meet strong demand and boosts sales. That could provide a slight lift to the broader economy through construction jobs and the consumer spending linked to home purchases.

But demand for homes is still outpacing the construction gains. There were 266,000 new homes for sale last month, the most since July 2009 — a month after the recession ended — and up nearly 10 percent from a year earlier.

The median sales price in February of a new home was $296,200, a decline that might reflect that much of the sales last month were in the cheaper Southern markets.

Construction firms are bullish that sales will keep improving, even though they remain well below the heights of the housing boom seen more than a decade ago.

The National Association of Home Builders/Wells Fargo builder sentiment index climbed to 71 this month, the highest reading since June 2005.

Some buyers may be looking to lock-in their purchases out of concern that mortgage rates will rise, possibly hurting affordability.

Mortgage buyer Freddie Mac said Thursday the average rate on 30-year, fixed-rate home loans this week was 4.23 percent. That represents a slight decline from the prior week, but it's significantly higher than the 3.65 percent average last year.

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

First Security Bank Muscles Into Russellville

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Two Arkansas banks have added to their inventory of brick-and-mortar locations during the first quarter and two more have new branches in the works.

First Security Bank of Searcy expanded its Arkansas-only network to Russellville. The full-service branch is No. 74 for the $5.2 billion-asset lender and its first in Pope County.

Piggott State Bank opened its first branch outside of its hometown in an intracounty move. The Rector office, 13 miles away, is the $80.9 million-asset lender’s second full-service branch.

Diamond Bank of Murfreesboro is going to Texas in its latest move. The Texarkana branch would transform the $528.7 million-asset lender into an interstate bank.

Cornerstone Bank of Eureka Springs intends to open a full-service branch in neighboring Boone County. The Harrison location represents the sixth location for the $215.4 million lender.

Southern Bancorp Plans To Raise $20M

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The ownership of Southern Bancorp Inc. recently underwent change to simplify its stock structure and create a more market-friendly organization.

The parent company of Arkadelphia’s Southern Bancorp Bank now has one class of voting common stock and one class of nonvoting common stock.

Previously, Southern had five different classes of common stock. The new structure makes it easier for private place-ment investment as Southern Bancorp embarks on its 2017 capital campaign.

“We would love to have $20 million to $25 million,” said Darrin Williams, CEO of Southern Bancorp Inc. “We plan to close the capital campaign by the end of the year.”

Both classes of common stock have dividend rights, and nonvoting shareholders have the right to convert their holdings to voting shares. The new structure will allow the bank to declare its first ever dividend for all common shareholders in the second quarter: $85,188.

During 2016, the bank declared dividends totaling $22.5 million. The money was used by Southern Bancorp Inc. to help pay off its remaining TARP debt.

The holding company initially participated in TARP’s capital purchase program to the tune of $11 million.

Southern exchanged the CPP funding in 2010 for more favorable terms and expanded the government investment to $33.8 million under TARP’s Community Development Capital Initiative program.

The funds helped Southern Bancorp expand its footprint with acquisitions of the $135 million-asset Timberland Bank of El Dorado and First Delta Bankshares Inc., the $309 million-asset holding company for First National Bank of Blytheville and the Bank of Trumann.

The stock restructuring will give Southern more flexibility to use shares in future acquisitions as well.

The purchase of the $42 million-asset Farmers Bank of Hamburg marked the first time Southern struck a deal that wasn’t all cash. The $4.5 million transaction is a 60-40 mix of stock and cash.

Southern Bancorp Bank, Arkadelphia
Staff: 320          Full-Service Locations: 36 in Arkansas and Mississippi
(All dollars in thousands)

  Total Assets Equity Capital Noncurrent Loans Net Income
2016 $1,149,088 $129,981 $17,334 $10,143
2015 $1,185,130 $142,755 $9,760 $9,818
2014 $1,172,557 $136,033 $5,957 $11,524
2013 $1,150,854 $119,566 $7,676 $9,513
2012 $1,117,585 $122,551 $7,070 $10,822
2011 $1,147,058 $119,129 $9,745 $7,983
2010* $1,078,662 $111,098 $14,174 $9,061
2009** $709,743 $62,287 $8,191 $4,750
2008 $201,285 $18,689 $985 $1,966

*Reflects the acquisition of the $210 million-asset First National Bank of Blytheville and $99 million-asset Bank of Trumann
**Reflects the purchase of the $135 million-asset Timberland Bank of El Dorado and the charter consolidations with Southern Bancorp Bank of Helena and Southern Bancorp Bank of Mississippi
Source: Federal Deposit Insurance Corp.

Majestic Fire Prompts Splash of Hot Springs Development

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The fire that destroyed the historic Majestic Hotel in Hot Springs three years ago helped prompt a wave of development in the downtown district.

After the fire that burned much of the vacant Majestic, which had anchored the north end of Central Avenue, a pile of bricks littered the sidewalk. Getting the site cleaned up was difficult because some asbestos-containing building materials were among the debris.

City officials, civic groups and others gathered and developed a plan to improve downtown. The meetings resulted in several recommendations, including strengthening building codes and creating a downtown development director position.

“The Majestic fire struck an emotional chord with a lot of investors and developers who were either on the fence about downtown or weren’t even considering downtown,” said Cole McCaskill, downtown development director for the Hot Springs Metro Partnership.

Since McCaskill was hired in the summer of 2014, downtown development has seen a flurry of activity, including more than $22.3 million worth of commercial property purchased. The most expensive transaction occurred in October 2015 when GRGCBHS LLC, led by Gary R. Gibbs of Brentwood, Tennessee, bought the Austin Hotel at 305 Malvern from Spa Lodging Inc. for $10.15 million. It was renovated and renamed The Hotel Hot Springs & Spa.

“There’s been a new energy in the city,” said Steve Arrison, CEO of the Hot Springs Convention & Visitors Bureau. “Hot Springs has been a resort community and the No. 1 tourism destination in Arkansas forever. And it just continues to recreate itself. The old is still there, but we’re adding some great new to it.”

The city of Hot Springs also stepped in. It bought the Majestic Hotel in August 2015 for $673,000 from Gary Hassenflu of Park Properties LLC in Kansas City, after he failed to clean up the property. The site has been cleared and is awaiting final environmental approval before the location is redeveloped.

The city will ask for recommendations for what to put at the site, McCaskill said.

Some are pushing for the site to showcase the thermal water at the location. The Majestic had thermal water pumped in from Hot Springs National Park two blocks away, McCaskill said. “That would probably be the best use of that site, … so people could experience it,” he said.

A decision is expected by the end of the year.

Meanwhile, Hot Springs developer Jason Taylor has several projects under development in downtown. He said he was motivated to invest in the area to improve entertainment options. “People come down here, they walk Bathhouse Row, they spend some time here,” he said, “and then they leave.”

He wants to change that. Next month in his seven-story Citizens Building at 723 Central, a restaurant will open on the first floor and a jazz club will be on the second. The remaining floors will be condominiums.

“Downtown is hopping,” Taylor said. “Downtown is starting to really, really come back and be re-energized.”

The following are some of the top projects in downtown Hot Springs:


The Hotel Hot Springs & Spa
305 Malvern Ave.

Price: $10.15 million
Size: 134,230 SF, 14 floors
Date Purchased: October 2015

Shortly after Gary R. Gibbs bought the Austin Hotel at 305 Malvern Ave. for $10.15 million in October 2015, it was closed for renovation. Built in 1986, the 14-story building was “100 percent” renovated at a cost of about $10 million, said Carlos Sibole, the general manager of the hotel, which was renamed The Hotel Hot Springs & Spa.

The 200-room hotel reopened on April 1, 2016. The hotel, which is connected to the Hot Springs Convention Center, is adding a 5,000-SF spa with thermal waters, pool and fitness facilities, Sibole said. It is expected to be completed by the end of the year.

The rooms feature vinyl plank flooring instead of carpets and 49-inch television sets. The architect on the project was Douglas A. Arnold & Associates PLC of Hot Springs, and the construction was handled by CPI Construction LLC, which also is owned by Gibbs.


The Waters
340 Central Ave.

Price: $1.25 million
Size: 60,000 SF, five floors
Date Purchased: June 2014

Built in 1913 and formerly known as the Thompson Building, The Waters has a facade that “creatively blends classic elements with a bold, storefront design echoing the rhythms of the 1920s,” according to a February news release from the hotel that announced its opening.

One of its owners, Bob Kempkes, a founder of the firm Taylor/Kempkes Architects of Hot Springs, said he and the other owners, Anthony Taylor, who is also a founder of the firm, and Robert Zunick, a financial adviser in Hot Springs, had always been interested in the building, which once was home to doctors’ offices. When it became available for sale, the three men were interested. They studied the hotel market in Hot Springs and found more hotels were needed, especially those that had a “higher level of service that you see in a boutique property,” Kempkes said.

He said a complete renovation was done to the building, bringing the total cost of the project to about $7 million. It now has 62 rooms. It also has a Southern artisan-style restaurant on the ground floor, called The Avenue.


Bank of America Building
528 Central Ave.

Price: $1.25 million
Size: 43,000 SF, six floors
Date Purchased: April 2016

Rustic Development LLC, led by Hot Springs developer Jason Taylor, bought the building because it’s one of only a few places downtown that has a patio for customers to sit and eat or drink, Taylor said. The space also can be used for live music “and things of that nature,” he said.

The craft brewery, Bubba Brew’s Brewing Co. of Bonnerdale (Hot Spring County), has signed a lease and is expected to move into the building by the middle of the summer, Taylor said. The restaurant will be done in “an old English, library style,” he said.

The building was built in 1972 and was modeled after the Federal Bureau of Investigation Headquarters in Washington. The Bank of America building “has got big concrete pillars and columns going up all the way to the top,” Taylor said.

Taylor said he doesn’t have plans for what will go on the remaining floors. “But we’re open for discussion,” he said. The architect on the project was Twin Rivers Architecture PA of Arkadelphia. Taylor is the general contractor.


Citizens Building
723 Central Ave.

Price: $1.1 Million
Size: 24,700 SF, seven floors
Date Purchased: July 2015

The building at Central Avenue and Bridge Street has been empty since 1978, said Taylor, who is an owner and developer of the project.

Taylor was attracted to the building, built in 1909, because of its proximity to the Hot Springs Convention Center. “It’s kind of the gateway to downtown as you come around the corner there on Central Avenue,” he said.

On the first floor of the seven-story building will be a restaurant named the Vault, featuring a wood-fired grill. On the second floor will be a jazz club, Lagoria Rhythm & Rock’s Jazz Bistro. Both are expected to open in April, Taylor said.

The remaining floors will be condominiums, ranging in price from $200,000 to $1 million. The sizes of the units are 840 SF to 2,400 SF. In October, a unit on the fourth floor sold for $275,000 to Dal and Chris Strawn.

The architect on the project was Harris Architecture Co. of Hot Springs. Taylor said he was the general contractor for the project.


812 Central Ave.

Price: $575,000
Size: 16,700 SF, two floors
Date Purchased: February 2016

Taylor, whose Rustic Development bought the building, said he plans to put a sports bar type of restaurant on the first floor of the building, which was built in 1903 and features 18-foot ceilings and interior brick. It also has about 4,500 SF of mezzanine space.

Twin Rivers Architecture was the architect. Taylor is the general contractor.

Taylor said he didn’t have a timeline for when that project will be completed. “We want to bring a lot of energy to downtown Hot Springs,” he said.


Zombies Beware: Pine Bluff Is Rising

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Highland Pellets founder Tom Reilley’s first impression of downtown Pine Bluff three years ago was an indelible sight: a tree growing through the roof of a dilapidated grand hotel.

The tree was a pine; the building was the Hotel Pines.

“It made a big impression on me, coming into the area with fresh eyes,” Reilley said in a telephone interview last week. ”

In a different apocalyptic vision, economic developer Lou Ann Nisbett suggested that some buildings downtown could be scenes for “The Walking Dead,” AMC’s zombie series. She enlisted Christopher Crane, film commissioner of the Arkansas Economic Development Commission, to offer up 19 structurally unsound Pine Bluff buildings as possible locations for filming thrillers. If the script called for an explosion, the filmmakers could blow up the buildings.

“Chris actually visited, took some pictures and did some inventory,” Nisbett said. “I was trying to come up with creative ways to get buildings down without heavy costs to the owners or the city.”

Such is the state of economically battered Pine Bluff, but Nisbett and Reilley are anything but despairing.

Nisbett, the president and CEO of Jefferson County’s Economic Development Alliance, and Reilley, the New Hampshire resident who decided to put a $230 million wood pellet plant in Pine Bluff, have joined a growing army on a mission of revitalization.

Reilley’s zeal goes beyond providing jobs and economic stimulus through his new plant, which will deliver wood pellets to fuel European power plants as a substitute for coal. The facility, in Jefferson Industrial Park, has one production line running and three more are under construction.

Reilley is determined to inspire people to build up residents, property values and the tax base of Pine Bluff, a manufacturing city that once had close to 60,000 residents but had dwindled to about 45,000 by 2015, according to the U.S. Census Bureau.

So he joined the board of a tax-exempt 501(c)(3) nonprofit group to investigate restoring the Hotel Pines as it works to revamp downtown and all of Pine Bluff, which he sees as poised for a rebound.

The nonprofit, Pine Bluff Rising, bought the six-story, 100,000-SF hotel for one dollar on Jan. 17 and has committed $300,000 to shoring it up, drying it out and seeing if it can be saved. The seller, Elvin Moon, who worked at the storied hotel as an elevator operator as a teenager, bought the property in 2003 from another nonprofit group, Citizens to Save the Pines, which had acquired it after it was condemned by the city in 1986.

Moon was among a number of property speculators who snapped up unused Pine Bluff buildings at depressed prices starting in the recessions of the 1980s and ’90s.

“Individuals bought buildings, I guess from a speculation standpoint since they were so cheap, hoping to sell them for a profit someday,” said Caleb McMahon, economic development director for the Jefferson County Alliance and a Pine Bluff Rising board member. “But with no repairs, the buildings became decrepit and started falling. The property speculation only decreased property values downtown.”

The purchase of the Hotel Pines, opened in 1913 and designed by Arkansas State Capitol architect George R. Mann, is part of a larger revitalization plan devised by Go Forward Pine Bluff. Go Forward, a 100-volunteer group financed by one of Pine Bluff’s most successful businesses, Simmons First National Corp., and led by former CEO Tommy May and Simmons First Foundation board member Mary Pringos, has announced an ambitious plan of 27 proposals.

The plan hinges on a public vote for a five-eighths-cent city sales tax that would raise some $32 million before lapsing after seven years. About $20 million more is planned via private fundraising. If the Pine Bluff City Council gives its approval on April 3, the election will be held June 13.

Jefferson County already has a three-eighths-cent tax for economic development, money that has paid dividends in recent years with groundbreakings and expansions at the industrial park, including Highland Pellets and the recruitment of industries from South Korea, Austria and Argentina.

Carla Martin, vice chancellor for finance and administration at the University of Arkansas at Pine Bluff and a Go Forward leader, said the new tax could burden some residents, but she noted that the levy is temporary and that it is expected to have a household impact of $15 a month, or $180 a year.

“I am confident that the citizens of Pine Bluff want a better tomorrow,” she said. “I am confident that we must have some skin in the game.”

Pringos said that if the tax vote succeeds, all of the spending would require City Council approval and would be “pay as you go, with no bond issue.” Pine Bluff Mayor Shirley Washington, she said, has “overwhelmingly endorsed” the program and was one of its 100 volunteers.

Several attempts to reach Washington for this article were unsuccessful.

The Hotel Pines
One of Go Forward’s recommendations, along with a complete overhaul of city codes and enforcement, is to repurpose or demolish the Hotel Pines.

Opened in the golden age of passenger rail just a few blocks from Pine Bluff’s Union Station, it attracted travelers seeking the elegance of one of Arkansas’ premier hotels. When passenger rail service ended in 1968, the death knell sounded for the hotel, which closed in 1970.

The now-crumbling two-story lobby and second-floor balcony were built with a grand curved ceiling of stained glass, a treasure long feared lost. McMahon recently discovered otherwise.

“Mr. Moon told us that he still had all the stained glass; he took us to where he had it warehoused, and we have it now.”

The first step is testing the building and getting a cost assessment.

A $35 million renovation might be workable, through use of state and federal historic tax credits, bank lending and “equity contributions from various sources,” Reilley said. However, if the price tag balloons to more than $35 million, demolition is likely.

Pine Bluff Rising has engaged WER Architects/Planners of Little Rock; East Harding Construction, which is using local contractors; and interior designer Kaki Hockersmith. Hockersmith, of Little Rock, redid the White House for the Clinton administration.

Engineers are making a complete assessment expected in about 60 days. “It’s due diligence, but also an emotional issue,” Reilley said. “If it can be saved, we want to save it.”

Reilley, a Bear Stearns senior managing director in London before his own international projects gave him a glimpse of impoverished areas worldwide, has been brainstorming on the hotel’s future. Many of the ideas are nascent.

“A leading and respected Arkansas hotel operator would love to do a joint venture on Hotel Pines,” he said, adding that UAPB might be “incredibly synergistic” with the project.

UAPB Chancellor Laurence Alexander called talk of any link with the hotel premature. “But if it rises above a whisper, I’ll have some thoughts for sure.”

McMahon said restoring the hotel, which was added to the National Register of Historic Places in 1979, to its former glory wouldn’t mean forgoing new uses. It was conceived as “a 110-room hotel. But we would like retail downstairs, banquet galleries and the like.”

The work includes pumping out the basement, shoring up four columns, boarding up broken windows and fixing the leaky roof. “We have to do all that just to dry it out,” Reilley said. “Soon we’ll know if the hotel can be saved or if it has to go.”

Reversing the Deterioration
Either option beats simply letting it deteriorate, officials said.

That was the case a few blocks away at 620 Main St., where the former Sahara Temple building, owned by Garland Trice, has suffered multiple collapses. In July 2014, risks of falling debris led the city to shut down Main Street between Sixth and Eighth avenues. The stretch is still closed, much to the inconvenience of neighboring businesses like Pine Bluff Title Co. and Davis Auto Parts.

“The proof is in the pudding out there,” parts store owner Bobby Davis told the Pine Bluff Commercial in January. “People can’t come in. They get to the barricade on either end, and they turn around and go somewhere else.”

A free-standing wall of the condemned building toppled that month onto the building next door, an accounting business owned by Lloyd F. Lee.

“It’s distressing,” McMahon said. “Main Street is shut off because we have bricks falling in the street. That being said, we want to save all the buildings we can.”

That’s where Pine Bluff Rising and Go Forward come in.

“When the directors and I started talking about funding Pine Bluff Rising, I said let’s contribute our capital and time in a meaningful way, and work on some of the most intractable problems in the area,” said Reilley, whose fellow nonprofit board members are William Carpenter, McMahon and UAPB professor Ryan Watley.

One problem is the image and reality of downtown.

“On this part of Main Street [near the Hotel Pines], I’d say 90 percent of the buildings are unoccupied,” McMahon said. “That’s why one major goal is to grow downtown.” Reilley and McMahon said a well-known Arkansas business may soon announce plans for a downtown destination, part of a project that is also wooing a Little Rock restaurateur. “We could have an announcement in two or three weeks,” Reilley said.

Reilley has partnered with Win Trafford, a City Council member and real estate broker, to acquire the historic Greystone residence near Jefferson Regional Medical Center with the goal of turning it into a high-end bed-and-breakfast.

“It’s a beautiful building that has fallen into disrepair,” Reilley said. “We hired Kaki Hockersmith to do all the interior design work, and it should be ready to open in six to nine months.”

Go Forward’s main priority is “increasing the tax base for the city of Pine Bluff,” Pringos told Arkansas Business. “Declines in population and businesses have left the city in a difficult position even providing basic services. We have to attack certain issues to reverse that trend.”

‘Starving at the Banquet’
Reilley hopes that Pine Bluff Rising can improve the city’s image through a social media campaign, but he says the area has the essentials to bounce back.

“The town is really starving at the banquet,” Reilley said. “I understand problems like the mechanization of the Delta and job losses associated with that, but Pine Bluff has a good two-year school in SEARK [Southeast Arkansas College], a four-year university in UAPB, a good airport, a great industrial park and an excellent river port. All it’s missing is a transactional plan.

“Mayor Washington has shown great leadership, and courageous work is being done by Tommy May and Go Forward. Community leaders like George Makris at Simmons Bank, Chancellor Alexander at UAPB and Lou Ann Nisbett, to name a few, are leading by example.” But like a team on a losing streak, Pine Bluff “needs some wins” to get people off the bench, he said.

A couple of victories are already in the books. Pine Bluff passed a property tax increase in November to finance a new $14 million library. The 35,000-SF building is expected to rise soon at Main Street and Sixth Avenue.

Funding for a $6.3 million aquatic center was also secured when Stephens Inc. accountants found a way to fully finance the project by restructuring existing city bonds. More than $4 million for the center had been raised through a sales tax levy, but the Stephens tactic overcame a $2 million shortfall. The site is 10th Avenue and Convention Center Drive, opposite the Pine Bluff Civic Center complex.

If voters approve the Go Forward levy, Pine Bluff residents will face a steep 11 percent sales tax on retail purchases other than groceries, but officials say local businesses and workers will benefit when the $52 million fund it contributes to starts flowing. Pine Bluff Rising, for example, is establishing an alliance of Jefferson County subcontractors to compete for millions of dollars in building and demolition work.

Watley is working with East Harding CEO Van Tilbury and Michael Smith, vice president of preconstruction and project management at Con-Real Construction, to urge “minority businesses and contractors who need additional skill, capital, bonding ability or general bidding skills to come together in advance of all the work that Go Forward and Pine Bluff Rising will generate,” Reilley said.

Go Forward’s blueprint calls for creating a downtown square with “city-purposed programs,” the creation of a Delta Festival, Delta sports tournaments and “one or more nice restaurants.”

Restoration efforts would focus on buildings like the Masonic Temple, the Train Depot Museum and the Saenger Theatre, where Harry Houdini and Roy Rogers performed.

Education plans from Go Forward include an Educational Alliance among the city’s three school districts to focus on joint teaching arrangements for science, technology, engineering and mathematics courses, as well as an Innovation Hub in the Arts & Science Center Annex, envisioned as a partnership between SEARK and UAPB.

Go Forward’s efforts are divided into four pillars, each served by committees. They are economic development, chaired by Nick Makris; education, led by Scott Patillo; infrastructure and government, headed by Rosalind Mouser; and quality of life, chaired by Kaleybra Morehead.

“Bringing jobs, addressing blight, bringing in more things to do, all of those issues were seen in our surveys and focus groups,” Pringos said.

Martin boiled down the goals. “Clean up the city, grow the economy, create a more-skilled workforce, offer safer neighborhoods. Make this a place people want to live, work and raise a family. Ultimately we want to make Pine Bluff a city its residents are proud to call home.”

Roles Shift in Golden Bankruptcy

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The early stages of the Chapter 7 bankruptcy of Lex and Ellen Golden have had a revolving door quality.

U.S. Bankruptcy Judge Phyllis Jones stepped down as the presiding judge in the Little Rock couple’s case, which listed debts of $7.7 million and assets of $1.9 million. She was replaced by Ben Barry on March 20.

You might recall Barry oversaw the Chapter-11-turned-Chapter-7 bankruptcy of a Golden enterprise: Acme Holding Co., parent company of the now-defunct Allied Bank of Mulberry.

Tripp Wetzel initially was listed as bankruptcy trustee for the case. However, his Little Rock law firm also is listed among the Goldens’ creditors: $4,872 owed for unpaid legal services.

Wetzel officially left the bankruptcy case on March 8. His would-be successor, James Dowden, declined the appointment the next day when Randy Rice was named trustee.

Wetzel’s firm defended the Goldens in a loan guarantee lawsuit brought by Chambers Bank of Danville that ended in a $2 million judgment in favor of the bank.

In related news:

The Goldens’ bankruptcy attorney, Kevin Keech of Little Rock, accepted a combination of $6,250 and household goods valued at $6,850 as payment for his services.

According to their bankruptcy petition, the Goldens are upside down on their Little Rock residence. The 4,600-SF house near the Country Club of Little Rock is encumbered by two mortgages totaling $928,647 while the property is valued at only $862,500.

U.S. Bank of Cincinnati holds a first mortgage claim of $719,933 on an original $825,000 loan in December 2010. Riverside Bank of Sparkman holds a second mortgage claim of $208,714 from a January 2015 loan of $200,875.

Despite the negative math, the Goldens claim an exemption on the house indicating they intend to stay put.

Conway Booms, Setting Retail Records

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Commercial development is thriving in Conway, evidenced by the nearly complete $65 million Lewis Crossing shopping center and plans for a startup space the city hopes will attract new and existing companies.

Both are part of the city’s continuing transformation into a commercial hub distinct from Little Rock, though they share a metropolitan statistical area.

“In spite of a difficult national retail climate, Conway has continued to show growth with record retail sales of $1.45 billion for 2016,” Brad Lacy, CEO of the Conway Area Chamber of Commerce, said in an email to Arkansas Business. “With the opening of Sam’s Club in January, we anticipate that number to grow as we solidify our place as a regional shopping destination.”

Lacy also lauded Conway’s success in retail development. Sam’s Club, at 136,580 SF, is the main anchor of Lewis Crossing.

“This growth will only build the case for other retailers to invest in our market,” Lacy said. “With a great mix of locally owned, specialty stores and restaurants and well-known national brands, we consistently hear that our residents are not traveling out of town to shop and more visitors are choosing Conway.”

The 441,871-SF Lewis Crossing is at the southeast corner of Interstate 40 and Dave Ward Drive; just south of another top development, Lewis Ranch. Shoppes at Central Landing is north of both and on the other side of Interstate 40.

Lewis Ranch LLC moved dirt last week for a new road it is building to connect its 50-acre development to Lewis Crossing and Conway Commons, said Operations Analyst Audie Alumbaugh. Conway Commons is the 600,000-SF shopping center near I-40 off of Exit 127.

“Our goal is to have a defined retail corridor starting around Conway Farm & Home on Amity and going all the way through the Sam’s development, through Lewis Ranch and up through Conway Commons, where the Target, the Home Depot, all that is,” she said.

The property owner, Bill Lewis of Conway, is investing $5 million in the road and other infrastructure features, Alumbaugh said. The new Amity Road will go north of Crain Buick GMC, then through Lewis Ranch to the second roundabout on Dave Ward Drive. Crain Buick GMC and Crain Kia of Conway have already bought property at Lewis Ranch.

Alumbaugh wouldn’t disclose the project’s total cost, saying several pieces will be built to the future tenants’ specifications, altering estimates.

Sage Partners Real Estate Solutions of Fayetteville is the leasing agent for the property. The Tyler Group of Conway is managing the project, and Centennial Bank is financing it.

Alumbaugh said the owner has been working on the development for two years and has letters of intent as well as written offers. She also mentioned talks with three big-box stores but declined to name them.

She expects Lewis Ranch construction to take two years, but the road is set to be finished by the end of this year.

Lewis Crossing
Much further along is its neighbor, Lewis Crossing.

All of its anchor stores are open, said Roger Cole with Elrod Real Estate of Little Rock, the local leasing agent.

Open now are Academy Sports, Bed Bath & Beyond, On the Border, Kay Jewelers, Books-A-Million, Dollar Tree, Michael’s, Petco, Ross Dress for Less, Ulta, Aspen Dental, AT&T and Mattress Firm.

Hideaway Pizza and Red Robin near starting construction of their standalone buildings, while Success Vision, T-Mobile and Rita’s Italian Ice are set for finish-out work. David’s Burgers, another standalone building does not yet have a construction start date, he said.

Developer Ryan Mosser of Collett & Associates of Charlotte, North Carolina, said, “Everybody that we’ve talked to out there that’s open says it’s going really well with sales. A few of the tenants are above projections … It’s a great town and all retailers do really well.”

C.R. Crawford of Fayetteville was the contractor; Garrett Excavating of Hot Springs did the site work, Construction started in August 2015.

Shoppes at Central Landing
Another big retail development in planning is the Shoppes at Central Landing, a 302,708-SF center featuring Dillard’s, retail shops, restaurants, apartments, a hotel and outparcels, according to the website of developer Jim Wilson & Associates of Montgomery, Alabama. The company’s president, Will Wilson, did not return calls from Arkansas Business.

The center is being built at the 151-acre former municipal airport on Corporate Drive. A new overpass is also underway to connect Central Landing with Conway Commons.

Bryan Patrick, director of the city’s Planning & Development Department, said the city is building the overpass and people will be using it by the end of the summer or early fall.

He said all of the city’s infrastructure improvements connected to the Central Landing project, including the overpass, cost about $28 million.

Projects With UCA Ties
The Conway Area Chamber announced earlier this month Conway Corp. will pay for a new space for startups called the Arnold Innovation Center. The utility has not pledged an exact amount yet because the center’s downtown location has not been finalized, CEO Lacy said.

A site may be known by May.

The Conductor, a public-private partnership of the University of Central Arkansas and Startup Junkie Consulting of Fayetteville, will offer programming to Arnold Innovation Center, named for retiring Conway Corp. CEO Richie Arnold.UCA will pay Startup Junkie $1.3 million to run the Conductor through September 2019.

The chamber is also studying the feasibility of renovating the historic chamber-owned Grand Theatre into a new arts venue.

UCA’s other commercial development was the $16.3 million, 67,500-SF Donaghey Hall. Students moved in in August and businesses followed.

The second, third and fourth floors are residential, but the first floor is home to Uncle T’s Deli/Market, Marble Slab Creamery, Great American Cookies, Blue Sail Coffee and Mosaique Bistro & Grill.

Trek Bikes of Conway plans to join them in mid-April, a UCA spokeswoman said.

On five-year leases, tenants pay $1,888 to $4,652 in rent, $15 per square foot. The building will also house a 1,000-SF “maker space” called The Cave that will give entrepreneurs access to advanced tools and technology. The university partnered with the Arkansas Regional Innovation Hub to operate the maker space, which will yield no rent.

Office Buildings
A smaller project, three multi-tenant office buildings at 605, 635 and 655 Dave Ward Drive, have been developed by George Covington Sr. of Covington Cos. in Conway for $3.7 million. The buildings are complete, but tenants are being sought, Covington said.

Covington constructed the building at 635, while the others were remodeled. The three combined offer tenants 46,697 SF.

Home BancShares Nabs Florida's Stonegate Bank in $778.4M Deal

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Home BancShares Inc. of Conway, the parent company of Centennial Bank, said Monday that it will acquire Stonegate Bank of Pompano Beach, Florida, a $778.4 million deal that expands Centennial's presence in the Sunshine State and will propel the bank farther beyond the $10 billion-asset mark.

Once the deal is done, the combined company will have about $13.5 billion in total assets.

During an announcement at the Little Rock Regional Chamber on Monday, Home BancShares Chairman Johnny Allison said the merger will make Florida the largest franchise in the company's four-state footprint.  

"The acquisition of Stonegate is a game-changer for Home in the Florida market," Allison said in a news release. "Stonegate is a top-tier franchise with high profitability and has the perfect footprint to enhance Home's presence in Florida.

"This is another 'Triple A' transaction for Home: accretive to earnings per share, accretive to book value and accretive to tangible book value. Our shareholders will benefit on day one as we will be stronger together."

The merger is Home BancShares' (Nasdaq: HOMB) biggest ever — even bigger than its $230 million deal to buy Liberty Bancshares Inc. of Jonesboro, which was announced in 2013.

The purchase is Home BancShares' 22nd and the latest of many in Florida, where it just wrapped up a deal to buy Giant Holdings Inc. of Fort Lauderdale, Florida, in an $88.5 million transaction that pushed Home BancShares beyond the $10 billion-asset mark.

Dave Seleski, Stonegate's CEO, said the two companies "are two very high performing franchises with a similar operating philosophy and customer focus.

"This is a great combination for our shareholders, customers and communities," Seleski said.

Under the terms of the agreement, Stonegate (Nasdaq: SGBK) will merge into Centennial and shareholders of Stonegate will receive proceeds from the transaction of about $749.8 million — consisting of $50 million in cash and $699.8 million of Home BancShares common stock. 

Stonegate shareholders will get about $28.6 million in cash in cancellation of their options immediately before the merger, for a total transaction value of about $778.4 million.

The acquisition is expected to close in the fourth quarter and is subject to shareholder approval by both companies, regulatory approval and other closing conditions.

Stonegate operates 25 branch locations in Florida with significant presence in Broward and Sarasota counties. As of Dec. 31, 2016, Stonegate had about $3.1 billion in total assets, $2.5 billion in total loans and $2.7 billion in deposits. 

At the chamber, Allison presented Seleski with a Hog Hat and Red Wolves football jersey bearing the No. 22, denoting Stonegate as Home BancShares' 22nd acquisition. 

Allison said the two organizations would mesh well and work well together because of their similar cultures.

"We will gee and haw fine," said Allison, referring to voice commands to turn a team left or right while plowing a field.

(With reporting by George Waldon.)

Bank of Star City Fined for Flood Insurance Violations

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The Bank of Star City has agreed to pay an $11,000 civil penalty for violations of the National Flood Insurance Act, the Federal Reserve System disclosed Tuesday.

In the order entered on Monday, the bank agreed to pay the penalty to the National Flood Insurance Program and to comply with the flood insurance law, which requires forbids banks from making loans secured by property in a designated flood zone unless the property is covered by flood insurance.

The order includes no details of the Bank of Star City's violations, and President R. Mark Owen was out of the bank on Tuesday and could not be reached for comment.

Bank of Star City is the 79th largest of the 100 banks chartered in Arkansas with 91.4 million in assets as of Dec. 31. It reported net income of $1.3 million last year.

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