Simmons First National Corp. purchased a second jet last fall, a 1997 Dassault Falcon 2000, but don’t expect a fleet.

The Pine Bluff bank holding company’s first aircraft, a 2005 Cessna 560XL bought in early 2015, is for sale, said spokesman Rex Nelson.

The Falcon 2000, which typically has a capacity of eight to 10 passengers, was registered with the Federal Aviation Administration in November.

When Simmons purchased the Cessna, CEO George Makris Jr. explained: “It is a long way from Wichita to Knoxville!” Since then, Simmons has announced some acquisitions that, when completed, will push the footprint further west than Kansas and further south than Star City: Bank SNB of Stillwater, Oklahoma, which has three branches in Colorado, and Southwest Bank of Fort Worth, Texas.

Little Rock’s One Bank & Trust posted another quarterly loss: $1.6 million. The red ink during the first quarter marked a continuation of a trend that dates back nearly five years.

Rocked by bad loans and mismanagement, One Bank hasn’t produced a normal quarterly profit since the Office of the Comptroller of the Currency ousted Layton “Scooter” Stuart in September 2012.

Total assets declined to $298 million, and equity capital was reduced to $10.4 million.

Nonaccrual loans stood at $5.5 million as of March 31. Another $4.2 million in loans are 30-89 days past due.

As we told you a week ago, a court-ordered sale of controlling interest in the bank will be held Monday in Washington.

Bank of the Ozarks Inc. added a member to its board of directors on Monday at its annual shareholders meeting, raising the Little Rock company's board membership to 16 and increasing its female board membership to 25 percent.

After that shareholder vote and three others, company Chairman and CEO George Gleason presented a review of the company's 2016 performance and a look at 2017 based on its first-quarter performance. 

"We expect another year of excellent growth," he told shareholders, meeting at the Capital Hotel in downtown Little Rock.

The new board member is Kathleen Franklin, the global ethics and compliance strategy leader for Sony Group. Before joining Sony, Franklin was a partner in the law firm of Boies Schiller & Flexner LLP of New York where she advised clients on issues relating to mergers and acquisitions, restructurings, corporate governance and crisis management. She also is a fellow of the American Bar Foundation.

At the meeting, shareholders also approved a change to the company's nonemployee director stock plan to increase the amount of equity compensation and the number of shares available under the plan. The board recommended the change after a study by a compensation consultant found that Bank of the Ozarks' stock compensation paid to its nonemployee directors ranked below the 20th percentile for its peer group.

The annual grant was raised from shares of common stock worth $35,000 to an annual grant of shares worth $50,000. The number of shares reserved for the awards was increased from 50,000 to 100,000.

The shareholders also approved the appointment of PricewaterhouseCoopers LLP as independent auditors for the company and approved Bank of the Ozarks' executive officers' compensation.

Top Performer

In his presentation to shareholders, Gleason noted that Bank of the Ozarks had been named the No. 1 performer in its size group for the past seven years by industry observers like the ABA Banking Journal, S&P Global Market Intelligence and Bank Director Magazine.

And in S&P Global Market Intelligence's 2016 regional bank performance ranking, Bank of the Ozarks came in at No. 1. S&P Global Market Intelligence ranked banks on six financial metrics: return on average tangible common equity, net charge-offs as a percentage of average loans, adjusted Texas ratio, efficiency ratio, net interest margin and loan growth.

In April, Bank of the Ozarks reported that net income for the first quarter was a record $89.2 million, up 73 percent from the same quarter last year. Total assets as of the quarter's end were $19.2 billion.

The company nearly doubled its assets last year, to almost $19 billion, by acquiring Community & Southern Bank of Atlanta and C1 Bank of St. Petersburg, Florida.

Gleason pointed in particular to the bank's asset quality and efficiency ratio (the amount of overhead required to produce $1 of revenue). Its asset quality is 65 percent better than the industry average, he said, and its efficiency ratio in 2016 was 35.8, with a 35 ratio for the first quarter of 2017. Gleason said the bank was working to drive its efficiency ratio over the next few years to 30, or 30 cents spent for every $1 in revenue.

Bank of the Ozarks operates in more than 40 states and as of April 11, had 250 offices in nine states.

Gleason also noted that the company would be celebrating its 20th anniversary as a public company on July 17. Bank of the Ozarks has delivered on returns to shareholders, he said, having increased cash dividends every year since going public. And its compound annual growth rate of 22.73 percent since its debut as a public company has far exceeded market indexes, such as the S&P 400 Mid Cap Index (10.66 percent) and the Nasdaq Financial Index (4.63 percent), he said.

The U.S. Treasury Department purchased 344,577 shares of stock in One Bank & Trust at a sale conducted in Washington on Monday, the bank's CEO announced.

Jerry Pavlas, the CEO, gave no details of the sale in a release issued Monday afternoon, and a spokesman for the bank's federal regulator, the Office of the Comptroller of the Currency, was not immediately available.

As Arkansas Business reported last week, the Treasury had a potential credit bid of up to $47.9 million, which was the balance of a triple-damages judgement tied to a TARP funding fraud claim. The shares represent a 99 percent stake in the bank, which brands itself as Onebanc, where equity capital declined from $12 million as of Dec. 31 to $10.4 million on March 31. 

Assets stood at $298.5 million at the end of the first quarter.

"The sale is another positive development for the Bank and no customers or vendors should be concerned by this latest step in the legal process," Pavlas said in a news release. "Nothing about the sale of this stock affects Onebanc's daily operations, employment or services to our customers or community.

"The sale was conducted in full cooperation with the U.S. Treasury and the Bank's regulators in order to provide absolute certainty to the Federal government's legal standing as the majority owner of the Bank. Resolving the issue of ownership released Onebanc from the burdens of the holding company liabilities and was critical to the Bank's recapitalization. 

"The sale was necessary in bringing closure to the complex issues created by the fraudulent acts of former Onebanc owners, executives and senior management that were revealed during the change in management and the completion of the forensic accounting audit."

As we quickly approach the halfway point of the year, what can you say you’re doing to bolster your business’ potential in 2017? The future looks bright — job growth is steady and consumer spending is rising. The National Federation of Independent Business reported higher overall optimism in the market; its findings were based on ratings related to business factors including it being a good time to expand and plans to increase employment (NFIB Small Business Economic Trends, February 2017). 

So what can you do to work toward enhancing your business? Running through a proactive assessment list can help you identify opportunities for growth.

Cost Savings and Expense Monitoring

In the spirit of working smarter, not harder, an essential business function is keeping an eye on the bottom line and using financial tools to manage expenses. You probably already have vendors providing point of sale, banking, accounting or expense platforms to run your daily operations, but are there any specific capabilities they offer that you aren’t taking advantage of? If you have to pay for this with your current provider, is there another vendor that offers those capabilities for free?

For example, many commercial credit cards offer budgeting or spending analysis tools you can leverage to get a better look at your finances. You could have access to an annual summary statement that itemizes and categorizes all transactions, even to the merchant level. This allows you to quickly see type of spending and category percentages to better monitor your budget. There are also tools to help you restrict spending or add users in real time on your accounts. 

Look into streamlining your spending accounts to save time. If you have multiple business credit card accounts, take a look at which one offers you the best rates and rewards and consolidate. And many offer free balance transfers. 

Are there loyalty or rewards programs that give you bonuses, free products, services or even cash back for your business? You probably have many of the same typical expenses monthly. Choose selectively where you spend, as well as what form of payment you use to maximize earnings. 

Competitive Analysis

It’s important to be aware of who and how many you are competing with for market share, what they offer comparatively and how they reach their customer. How does your business stack up to them, and what can you do better or differently to set your business apart? It’s all about keeping your business relevant and therefore driving interest and sales.

Perhaps you can’t be the leader, but you can set your products or services apart as a niche winner in your industry space. Maybe you don’t have every single product type or Stock Keeping Unit (SKU) the big box store down the street has, but you provide the best quality, unique independent vendor offerings or excellent individualized customer service otherwise unavailable. Specialization after competitive analysis could bring your business major revenue.

Tools and Trends Usage

There will always be something shiny and new claiming to help you better run your business; it’s important to be selective on which are worth the investment of your time and/or money. Below is a small sample of online tools applicable to just about any type of business. Most are either free or offer trial versions to test before you commit.

In today’s world, you don’t exist (especially to millennials) if you don’t show up in an online search. What is your online presence?

• Website builder: Wordpress, Wix, Weebly, Jimdo, Yola 
• Social media: Facebook, Instagram, Pinterest, Twitter, LinkedIn
• Reviews and search: Yelp, Zomato, Google business listing (search and maps)

What about the tools you can use to help you create content and streamline professional marketing for your business?

• Manage and schedule social media: Hootsuite, Everypost, Buffer
• Graphics (flyers, social media images, newsletters, etc.): Canva, Piktochart
• Survey customers or co-workers: Survey Monkey, Survey Gizmo, Google Forms

How can you more effectively collaborate and communicate? 

• File sharing: Google Drive, Dropbox
• Video conferencing: Skype, Google Hangouts, Cisco Webex
• Project management: Trello, Asana, Freedcamp

Anytime you can shave off unnecessary expenses and streamline your internal business processes, you make an impact for the success of your business. For more information on small business planning and lending, visit the Arvest Business Resource Center at www.ArvestBiz.com. 

Chris Thyer, the former U.S. attorney for the Eastern District of Arkansas, has joined Centennial Bank as a senior vice president in the bank's trust department.

Davy Carter, a regional president for the bank, announced the hire Wednesday. He said Thyer will work closely with the department's manager, Steve Baker, "over the next year as Baker prepares for retirement."  

"We are very fortunate for the tremendous leadership that Baker has provided our trust department, which currently manages nearly $500 million in assets," Carter said in a news release. "We will miss him dearly. 

"We are equally blessed to have Baker and Thyer working closely together over the coming year to effectuate a smooth transition. We look forward to the continuing growth and success of the trust department under Thyer's leadership."

Thyer, an Obama appointee who came to office in 2011, resigned in March as President Trump requested of all the U.S. Attorneys inherited from the Obama administration. No permanent replacements for the vacacies have been nominated.

In addition being U.S. attorney, Thyer previously served in the state House of Representatives, representing part of Jonesboro and Craighead County. He has practiced law in Jonesboro for more than 20 years. 

Thyer's wife, Cindy, is a circuit judge in the Second Judicial District.

Centennial Bank is part of publicly traded Home BancShares Inc. of Conway (Nasdaq: HOMB).

A 35,520-SF office building in west Little Rock weighed in at $3.25 million.

Normandy Place LLC, led by Max Mehlburger, purchased the Markham Executive Center at 10201 W. Markham St. The seller is Security Plan Life Insurance Co. of Donaldsonville, Louisiana.

The deal is financed with a 21-year loan of $1.76 million from BancorpSouth Bank of Tupelo, Mississippi.

The 1.93-acre development was bought in October 2008 as part of the $8 million acquisition of Ozark National Life Insurance Co. by the parent company of Security Plan Life, Citizens Inc. of Austin, Texas.

Meadowcrest Purchase
A 122-unit apartment project in southwest Little Rock tipped the scales at $2.8 million.

Meadowcrest Apartments LLC, led by Don Marshall Jr., sold its namesake complex at 5315 Stanley Drive to Colonial Park RBG LLC of West Plains, Missouri.

The deal is funded with a five-year loan of $2.2 million from Arvest Bank of Fayetteville. The 7.57-acre development previously was tied to a June 2010 mortgage of $2.3 million held by One Bank & Trust of Little Rock.

The property was assembled in four transactions totaling more than $1 million.

The sellers were Zato Investments Ltd., led by Michael Rushin, $1 million in October 2003; Mahmood Qadri and Zohra Sharief, $48,000 in December 2003; Oldner Real Estate Management Inc., led by John Oldner, $15,000 in February 2004; and Habitat for Humanity of Saline County Arkansas Inc., led by Donna Bosley, $12,000 in March 2004.

Dollar Deal
A Dollar General Store in Little Rock is under new ownership after a $1.22 million transaction.

GRT Little Rock DG LLC of San Rafael, California, bought the 9,360-SF store at 4748 Springer Blvd. from Rosebud Springer LLC of Huntington Beach, California.

The 1.02-acre development previously was linked with a December 2014 mortgage of $720,000 held by Arvest Bank.

The project was purchased for $1.2 million in December 2014 from PB General Holdings (Springer) LLC, led by Leonard Boen.

Tandem Foreclosures
A pair of Little Rock retail projects changed hands in foreclosure sales totaling $985,000.

YN Investments LLC, led by Murad Mandani, acquired the 15,460-SF South Park Center at 7515 Geyer Springs Road for $640,000 and a 3,016-SF project at 10507 Stagecoach Road for $345,000.

The properties were owned by RWL Investments LLC, led by Ron Lazenby.

The 1.81-acre South Park development previously helped secure an April 2014 mortgage of $3.1 million held by First Community Bank of Eastern Arkansas in Marion and a July 2014 mortgage of $640,000 held by Centennial Bank of Conway.

The property was purchased for $424,000 in January 2001 from Whitestone Investment Group of Los Angeles.

The 0.69-acre Stagecoach development previously secured a March 2013 mortgage of $500,000 held by Centennial Bank.

The location was bought for $160,000 in March 2013 from RJ Properties LLC, led by Douglas and David Hendrix.

Retail Transaction
A 15,453-SF retail center in North Little Rock rang up a $950,000 sale.

Gosen LLC, led by Joseph Minkyu Park, purchased the Family Dollar Store, Subway and New World Beauty project at 4202-04 Camp Robinson Road.

The seller is James Family Properties LLLP, led by Judith Scherer.

The deal is backed with a 20-year loan of $760,000 from BancorpSouth Bank.

The 1.52-acre location was acquired for $230,000 in November 2003 from Fleming Cos. Inc. of Oklahoma City.

School Sale
A former elementary school in North Little Rock drew a $530,000 transaction.

I-40 Kerr LLC, led by Byron McKimmey, bought the Park Hill Elementary project at 3801 JFK Blvd. from the North Little Rock School District.

The 5.27-acre property was assembled in two transactions with Justin and Agnes Matthews for “the minimum legal consideration” of $1 in September 1924 and his Metropolitan Trust Co., $30,000 in May 1951.

Commercial Land
A 4.61-acre commercial site in North Little Rock sold for $425,000.

Richardson Properties LLC, led by Keith Richardson, acquired sole ownership of the land on the south side of 9300 Maumelle Blvd.

The seller is MGY LLC, led by Marc Yelenich.

The property was bought through RichMarc Development LLC in January 2002 for $215,000.

The sellers were Nancy and Robert Lott, Carlos Robinson Jr. and his wife, Thressi, McKinley and Sansanee Robinson, Ruben and Joyce Robinson, Arthur and Margaret Ellison Hubert, Treopia Bryant and Elsie Dodson.

Estates Home
A 4,330-SF home in the Somersett Estates neighborhood of west Pulaski County is under new ownership after a $730,000 deal.

Christie and Deno Grumbos purchased the property from Stuart and Mitzi Miller.

The deal is financed with a 30-year loan of $424,100 from Arvest Bank.

The 5-acre residential spread previously was tied to a June 2015 mortgage of $484,380 held by BancorpSouth Bank.

The location was acquired for $75,000 in February 2013 from Joey and Brandy Rhodes.

Mirabel Residence
A 3,700-SF home in the Mirabel Court neighborhood of west Little Rock’s Chenal Valley development changed hands in a $534,900 transaction.

Maroun and Kay Farah bought the house from Randy James Construction Co. The deal is funded with a 30-year loan of $418,410 from NFTN Inc. of Lewisville, Texas.

The residence previously was linked with a June 2016 mortgage of $368,000 held by First Security Bank of Searcy.

The location was purchased for $87,000 11 months ago from Crain Family Holdings LLC, led by Larry Crain Jr.

Chimney Rock House
A 5,280-SF home in Sherwood’s Chimney Rock neighborhood rang up a $525,000 sale.

Carl and Mary Peterson acquired the house from the Roby & Tonya Lambert Family Trust.

The deal is backed with a 30-year loan of $420,000 from IberiaBank of Lafayette, Louisiana.

The residence was bought for $735,000 in September 2005 from Jason and Ginger Ford.

Woodland’s Dwelling
A 3,485-SF home in the Woodland’s Edge neighborhood of west Little Rock drew a $508,000 transaction.

David and Amelia Bardwell purchased the house from River Rock Builders LLC, led by Keith Wingfield. The deal is financed with a 30-year loan of $457,149 from Wells Fargo Bank of Sioux Falls, South Dakota.

The residence previously was tied to an April 2016 mortgage of $392,000 held by BancorpSouth Bank.

River Rock acquired the location for $72,000 in January 2015 from Rocket Properties LLC, led by Ron Tyne and Lisenne Rockefeller.

Seven-Digit Construction

Kroger Remodel    $3,432,386
2509 McCain Blvd., North Little Rock
CDI Contractors LLC, Little Rock
 
Collision Center Remodeling    $1,945,000
10005 Col. Glenn Road, Little Rock
ITR Construction LLC, North Little Rock
 
New Home    $1,050,000
13900 Beau Vue Drive, Little Rock
Parkinson Building Group Inc., Little Rock

Samuel “Tanner” McKnight, Seth Parsley and John David Sonnier have been promoted to bank assistant examiner at the Arkansas State Bank Department.

McKnight and Parsley work out of the department’s field office in Jonesboro, while Sonnier is assigned to one of two groups based in Little Rock.

Having previously performed tasks as a bank assistant examiner under supervision, they are now given the responsibility for the position of assistant examiner in charge on a regular basis.

Mitchell Beggs has joined Edward Jones in Little Rock as a financial adviser. He was previously a sales adviser for Drivetime in North Little Rock.

Wes Womack has been hired as vice president and commercial lender in the Arkansas region lending division at First National Bankers Bank in Little Rock.

He previously was vice president and a commercial lending officer at BancorpSouth Bank in Little Rock.

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

Simmons First National Corp. of Pine Bluff said Monday that it completed its acquisition of Hardeman County Investment Co. Inc. of Jackson, Tennessee, a deal that includes Hardeman's wholly owned bank subsidiary, First South Bank.

Simmons (Nasdaq: SFNC), the parent company of Simmons Bank, announced the deal in November. At the time, the transaction was valued at $72.2 million.

"First South Bank is a natural addition to our growing footprint," George A. Makris, Jr., Simmons' chairman and CEO, said in a news release. "First South and Simmons have similar cultures and operating styles, and together, we have a strong presence in western Tennessee. We look forward to continuing to serve our customers in this region with our combined product and service offerings."

The deal means Simmons now has about $9.1 billion in assets, $6 billion in loans and $7.2 billion in deposits. The company has 2,000 employees and more than 150 branches across Arkansas, Kansas, Missouri and Tennessee.

Simmons said First South Bank will continue as a separate bank subsidiary of Simmons until it is merged into Simmons Bank. The conversion is scheduled for completion Sept. 5.

The Texas podiatrist who wants to buy the hotel and convention center on the Arkansas side of Texarkana out of bankruptcy asked a judge to reconsider the denial of some tax incentives tied to the project.

The potential buyer, Dr. James J. Naples, entered into a $6.6 million purchase agreement with Dr. Hiren Patel, who owns the Holiday Inn and Arkansas Convention Center through his Texarkana Hotels LLC, which is in Chapter 11 bankruptcy.

If Naples buys the property, he wants the city of Texarkana’s Advertising & Promotion Commission pledge to pay $150,000 annually for 15 years to continue.

U.S. Bankruptcy Judge Brenda T. Rhoades approved the sale of the property last month, but most of the tax incentives, which total nearly $500,000 per year, aren’t going to continue with the new owner. That includes the A&P’s $150,000.

Rhoades ruled that the agreement with the A&P could not be assumed by Texarkana Hotels and transferred to Naples.

Naples argued in his court filing last week in U.S. Bankruptcy Court in Texas that there is nothing in Arkansas law that prevents the assignment of the A&P incentive.

The attorney representing Naples, Mark Weisbart of Dallas, didn’t immediately return a call for comment.

A hearing on the motion has not been scheduled.

If the deal with Naples falls apart, the backup buyer for the Holiday Inn and Arkansas Convention Center is MidSouth Bank of Lafayette, Louisiana, which said Patel’s company defaulted on $10 million in loans.

Texarkana Hotels filed for bankruptcy in March 2016. It listed $10.6 million in debts and $5.2 million in assets.

The ranch wrangling continues in Conway.

That would be the legal tussling over a ranch-and-restaurant complex that led to foreclosure proceedings against Joanie White-Wagoner, administrator and vice president of Baptist Health Medical Center-Conway.

A lawyer for White-Wagoner and her husband, Darren Wagoner, who are accused by Centennial Bank of defaulting on a $2.5 million mortgage and other loans, said in a statement to Arkansas Business on Thursday that his clients are the victims of fraud by the previous owner, Letitia McMaster.

Attorney Beau Wilcox of Conway said that financial data provided by McMaster before the sale was inaccurate, and “was in fact manipulated to mislead and induce them into the purchase” of the 45-acre Back Achers Ranch and Legends Bar & Grill on College Avenue, which includes a 47,000-SF arena and a house on nearby Shock Loop.

Wilcox said the business ventures were already failing before the sale, and that misrepresentations by McMaster constitute “outright fraud.”

In an April 27 motion in Faulkner County Circuit Court, Wilcox said the Wagoners had filed a third-party complaint against McMaster alleging fraud and breach of contract.

He asked the court to order Centennial to amend its complaint to include McMaster as a defendant. The bank responded that it had no obligation to do so, and that it had seen no evidence of fraud.

In a filing last week, McMaster’s attorney, Otto R. Fry, said she had “not breached the contractual agreement in any manner,” and that the “allegations of fraud and misrepresentation are wholly without merit and should be dismissed.”

Fry also claimed that the Wagoners had defaulted on a separate promissory note to McMaster, failing to make a single $409 monthly payment on the note’s $62,000 debt.

‘Eager to Foist the Loan’
Wilcox said that Centennial, which filed its original lawsuit on Dec. 29, seven months after the Wagoners assumed McMaster’s mortgage, was also misled and defrauded.

But, Wilcox said, “the bank continued to modify loans to the prior owner based on misinformation, and then when my clients took over, the bank was overly eager to foist the loan onto them and then foreclose quickly when things went sour.”

McMaster did not respond to a phone message before press time Thursday.

Attorney Vaughan Hankins of Sherwood, representing Centennial, confirmed that the bank has requested a trial date on the foreclosure and said the Wagoners had “surrendered the property.”

Wilcox characterized the Wagoners as honorable and intelligent people who were “victimized in this ordeal.” They had agreed for the bank to take possession of the property to secure it for a possible sale.

Buyer interest is high, he said, but “obviously it is an expensive and unique piece of property” with a “limited range of possible investors.”

In other filings, the Wagoners confirmed that they have moved off the property.

Wilcox said his clients had tried to work with Centennial, “but to be frank, we are disappointed that they have chosen to so aggressively pursue my clients.”

The bank says the Wagoners, who were operating as Inception Management Group LLC, have not made a payment since late September.

Joanie White-Wagoner, who managed a Texas hospital before moving to Arkansas in 2016, has run Baptist’s hospital in Conway since its opening in September.

WASHINGTON — U.S. household debt reached a record high in the first three months of this year, topping the previous peak reached in 2008, when the financial crisis plunged the economy into a deep recession.

Americans have stepped up borrowing over the past three years, yet the nature of what Americans owe has changed since the Great Recession. Student and auto loans make up a larger proportion of household debt, while mortgages — the epicenter of the financial crisis — and credit card debt remain below pre-recession levels. Those changes suggest households are still cautious about taking on debt to fuel day-to-day consumption.

The Federal Reserve Bank of New York said Wednesday that household debt, which also includes home equity lines of credit, stood at $12.73 trillion in the first quarter. That's above the $12.68 trillion outstanding in the fall of 2008, the previous record. The figure isn't adjusted for inflation or population size.

Even with debt levels back to record heights, analysts note that household borrowing appears more sustainable now than it did nearly a decade ago. Interest rates are lower, and lenders are much more focused on credit-worthy borrowers.

"This record debt level is neither a reason to celebrate nor a cause for alarm," Donghoon Lee, research officer at the New York Fed said. "The debt and its borrowers look quite different today."

Measured as a percentage of the overall U.S. economy, household debt is still smaller than in 2008. It is equivalent to 67 percent of the economy now, compared with 85 percent nine years ago.

Americans also appear to be better able to handle the loans they've taken out. The percentage of all household debt that is seriously delinquent — meaning payments are 90 days or more overdue — is 3.4 percent. That's down from the post-recession peak of 8.7 percent in early 2010.

Just 203,000 Americans declared bankruptcy in the first three months of this year, the lowest in the 18 years that the New York Fed has tracked the data.

Still, there were some areas of concern. Auto loans have ballooned 44 percent to $1.17 trillion since the last peak in household debt nine years ago. And a greater percentage of those loans have fallen 90 days or more overdue: 3.8 percent now, up from 3.3 percent two years ago. Still, that's down from a recent peak of 5.3 percent in late 2010.

Student loans are also a potential trouble spot: They topped $1.3 trillion in the first quarter, soaring by 120 percent since 2008. Nearly 11 percent of that debt is 90 days overdue or more. The Fed estimates that the true figure could be double that amount, because many borrowers are able to defer loan payments while they continue their studies or if they are unemployed.

Danny Shepelow and his girlfriend reflect the new credit profile of many Americans, particularly younger ones. They are both in their early 30s.

The couple rents an apartment in Atlanta and pays off their credit cards every month. They have thought about buying a home but are holding off, despite earning a combined income of about $130,000.

They are also carrying more than $175,000 in student loan debt between them, requiring $1,100 in monthly payments.

Shepelow, who works in digital marketing, says he is skeptical about the value of a home as an investment. The home he grew up in fell sharply in value during the 2008-2009 financial crisis.

"I saw my parents sitting on a house they couldn't sell, and when they did, getting three-fourths what it was worth a year earlier," he said.

Overall, more debt is now held by older and more credit-worthy Americans, which should make defaults less likely. Older households generally have higher incomes and wealth than younger ones.

Americans aged 60 and older hold 22.5 percent of all loans, up from 16 percent in 2008, the New York Fed said in a separate presentation in April.

The shift has been particularly dramatic in the case of mortgages, which have become much harder to obtain for Americans with lower credit scores. Loans to "subprime" borrowers, or those with lower credit scores, fueled much of the housing bubble.

Nearly 61 percent of new mortgages in the first quarter went to borrowers with credit scores of 760 or higher, according to the New York Fed's report. That's up from just 36 percent in 2008. Only about a third of Americans have a score that high.

Homeownership rates have fallen from a peak of 69 percent in 2005, during the housing bubble, to 63.6 percent now. That's kept total mortgage debt below pre-recession levels: There was $8.6 trillion outstanding in the first quarter compared with $9.3 trillion in 2008. Credit card balances are also lower than nine years ago, the Fed said.

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

WASHINGTON — Business leaders began an aggressive lobbying effort Thursday to ensure that their vision for overhauling the U.S. tax system isn't lost in the chaos consuming President Donald Trump's administration.

The Koch brothers' political network announced it is preparing to spend millions of dollars to promote a tax overhaul.

That word came as a handful of business executives told a congressional committee that the current tax system makes U.S. companies uncompetitive.

"We no longer live in a world where the U.S. can set a corporate tax rate without considering what our international competition looks like," John Stephen, AT&T's chief financial officer told the House Ways and Means Committee. "Countries are vigorously competing against each other to attract investment and jobs, but the U.S. has done little to retain its competitive advantage."

Billionaire industrialists Charles and David Koch are undertaking a multimillion-dollar campaign through the summer to ensure their conservative tax plan is not forgotten, said James Davis, spokesman for the Kochs' political network.

The campaign will include digital ads and town hall meetings, along with phone banks and direct mail.

"Now is the time. We've got to unite around these principles," Davis said. "The White House hopefully will see this as a jolt to support them in driving this forward."

The Koch push reflects broader concerns from the nation's business community that Trump's promise of a tax overhaul may fall victim to his mounting political challenges. The stock market on Wednesday suffered its largest single-day loss of the Trump presidency. That was before the Justice Department appointed a special counsel to investigate allegations that Trump's campaign collaborated with Russia to sway the 2016 election.

Treasury Secretary Steven Mnuchin said 100 people at his department are working on an overhaul, and that the goal is to bring "meaningful relief" to the middle class and make American businesses competitive.

Mnuchin testified before the Senate Banking, Housing and Urban Affairs Committee — his first appearance before that committee since being sworn in.

He said the U.S. can achieve 3 percent economic growth if the United States makes historic changes in taxes and regulations. The Treasury Department also is preparing a report on regulatory changes for the finance system. Mnuchin said it will be broader than simply undoing much of the Dodd-Frank law enacted under President Barack Obama.

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

MERIDIAN, Miss. — Call them the unrecovered — a handful of states where job markets, nine years later, are still struggling back to where they were before the recession.

That's true in Mississippi, where job numbers and the overall size of the economy remain below 2008 levels. Unlike states that have long since sprinted ahead, Mississippi is struggling with slow economic growth and slipping population in a place that's rarely at peak economic health.

Miguel Brown, despite family ties to his hometown near the Alabama border, is working on oil rigs off the shore of Texas, chasing higher wages.

"It's rough," said the 49-year-old Brown. "There's not a whole lot of jobs in Meridian, especially that pay anything."

Not only Mississippi, but also Alabama, Michigan, New Mexico, and West Virginia are still short of pre-recession job levels by multiple measures. That contrasts with states including Colorado, North Dakota, Texas and Utah, where employment numbers have soared. Nationwide, job numbers surpassed pre-recession peaks in the middle of 2014, about the same time Mississippi was saddled with the nation's highest unemployment rate.

Emilia Istrate, who produces a yearly report on how local economies are faring for the National Association of Counties, said the recovery has been widespread but "uneven."

"It explains why so many Americans don't feel the national economic numbers. It's because they live in one of these places that is still in recovery or struggling," Istrate said.

Growth has long lagged in Mississippi, and jobless rates are high even in good times. The unemployment rate fell to 5 percent in March, the lowest since the U.S. Labor Department began the current system of measurement in 1976. But at the same time that the Magnolia State's unemployment rate was at a record low, it tied for the ninth highest among the states.

Mississippi suffers from a cluster of ills that make it an economic laggard. Only 53 percent of Mississippi adults were working in 2016, the second lowest share of any state. Mississippi's economy depends on slow-growth sectors, including government employment. While nearly 30 percent of Americans older than 25 have a bachelor's degree or higher, only 21 percent of Mississippians do.

The overall size of Mississippi's economy was smaller in 2016 than it was in 2008, and people are beginning to vote with their feet: the state's population has fallen in the last two years.

"I think the population is falling because of the economy," said state economist Darrin Webb. "People have had to go where the jobs are."

That doesn't mean things haven't improved for many people. Economists have long advised that a better-educated, more productive workforce could eventually spur growth. The state's community colleges last year began offering not only adult education classes to high school dropouts, but also free training leading to career certification. Kathryn Winfield, 37, was one of the first graduates.

Returning to the labor force after two years spent caring for her dying father, she earned her high school equivalency degree and became a certified nursing assistant. After nearly a decade making the minimum wage of $7.25 an hour working as a cashier, Winfield is now making more than $13 an hour helping care for nursing home patients. She said the additional pay allows her to better provide for her three kids.

In some ways, Mississippi's economy has healed from the scars of the recession. Archie McDonnell Jr., the CEO of Citizens National Bank, said loan demand has rebounded above prerecession highs at Meridian's largest financial institution, and the bank's profits have more than tripled from their bottom in 2011.

"People just decided, the recession's over, I've got to get back to running my business and investing and doing things," McDonnell said.

McDonnell said he's hopeful about investment in Meridian, noting a $50 million museum being built downtown, an investor seeking to redevelop a derelict 16-story art-deco skyscraper into a hotel, and new ownership at the city's mall.

The number of Mississippians who report being employed could top the precession high when April data is released Friday. But employer payrolls, another way to measure employment, leveled off last year and remains about 1 percent below where they were before Mississippi's economy headed south in early 2008.

It is not just the number of jobs, but what they pay. Workers made an average of $669 a week in Meridian and surrounding Lauderdale County in late 2016, compared to $739 statewide and $1,027 nationwide.

Good wages are the reason that Brown says he has left his hometown of Meridian.

"These are my roots," Brown said. "Meridian will always be home, without a doubt, but you've got to make ends meet and you can't do it here."

___

Follow Jeff Amy on Twitter @JeffAmy. 

All contents © copyright 2017 Associated Press. All rights reserved.

Gov. Asa Hutchinson was the keynote speaker at the conference on the future of the Arkansas Delta at Pine Bluff Convention Center on Friday, addressing representatives from a range of sectors who met to discuss the region’s progress and outlook for its future.

The conference, titled “The Arkansas Delta: Why It Still Matters,” featured a slate of speakers, some of them Delta natives, who brought their expertise to subjects like economic development, entrepreneurship, education, youth issues, conservation, health care, quality of life, history and infrastructure and their overlapping importance. The event was put on by Simmons Bank of Pine Bluff.

Hutchinson touted several of his initiatives impacting those areas, including drawing foreign companies to the state and improving computer literacy in Arkansas schools, and praised the work of Mike Preston, executive director of the Arkansas Economic Development Commission and one of the day’s speakers. Hutchinson noted the state’s 3.5 percent unemployment rate, lowest in recorded Arkansas history, and 70,000 new jobs.

“I understand much of that growth is here in the Delta,” said Hutchinson, who took time to congratulate Pine Bluff Mayor Shirley Washington and the city’s voters for the community improvement and development initiatives Go Forward Pine Bluff and Pine Bluff Rising.

Hutchinson said he recently learned Arkansas leads the nation in foreign direct investment, which includes the recent announcement that China’s largest cotton textile manufacturer, Shandong Ruyi Technology Group, plans to put its first North American manufacturing operation in the Delta town of Forrest City. The project will create about 800 jobs and process 200,000 pounds of Arkansas cotton a year.

“That impacts the Delta,” Hutchinson said.

Other Chinese business deals in the state include Sun Paper’s $1 billion investment in a bio-products mill employing 250 in Clark County near Arkadelphia and a $20 million investment by Suzhou Tianyuan Garments Company in a Little Rock facility that creates 400 jobs.

Hutchinson said he enjoys visiting places like Cuba to pitch Arkansas-grown rice and traveling to China to not only tout Arkansas products and manufacturing possibilities, but the state’s tourism and opportunities.

Hutchinson recounted a duck hunting excursion to the Delta region he arranged for some of China’s representatives and said, based on his experience, the Chinese people are ready to explore some of Arkansas’ unique attractions after getting their fill of the United States’ bigger cities.

“It’s been fun having those relationships, showcasing Arkansas, showcasing the Delta, because let me tell you, we have a lot to be proud of,” Hutchinson said.

Former secretary of transportation Rodney Slater recalled the events in the late 1980s that led to the creation of the Lower Mississippi Delta Development Commission — headed by then-Arkansas Gov. Bill Clinton — the forerunner of the Delta Regional Authority. The authority’s mission is to improve life in the region that touches eight states ranging from southern Illinois to the Gulf of Mexico and its work drew praise from Hutchinson.

“The Delta Regional Authority has been an incredible partner in what we’ve tried to accomplish here in the state,” he said.

Slater spun an image of Arkansas’ highways and interstates as constructions not just of asphalt and steel but as technological and biomedical corridors transporting innovative materials while linking the state’s newest plants and factories.

“What’s your Highway 79,” said Slater, a Marianna native who recalled a childhood car counting game on the highway that captured his imagination. “What’s your Route 66? What’s your Yellow Brick Road? What’s your country road that takes you home?”

“Holistic growth” was a recurring concept and speakers addressed the Delta Regional Authority’s tent-pole categories of basic public infrastructure, transportation infrastructure to facilitate economic development, business development with a focus on entrepreneurship and workforce development and employment-related education using existing public education institutions.

University of Arkansas-Pine Bluff Chancellor Laurence Davis touted his university’s growth and improvement objectives and their impact on the Delta. Shane Speights, dean of New York Institute of Technology’s College of Osteophathic Medicine at Arkansas State University in Jonesboro, addressed the need for further health care education in the state and the university’s efforts to provide it, including the teaching of telemedicine to provide care for people in the Delta’s far reaches.

“The significant programs we chose are based on the needs of Arkansas and people in the Delta region,” Speights said.  

Fitz Hill, executive director of the Scott Ford Center for Entrepreneurship & Community Development and Foundation at Arkansas Baptist College, closed the morning session with remarks on youth development. Hill, the former Arkansas Baptist president, talked about his efforts and policies designed to change mindsets and open up educational and workforce opportunities for troubled and at-risk young people in Delta communities.

“We’ve got to find places to build up, not put down, and we can not be scared in our community anymore,” Hill said.

Two Little Rock lenders continue to battle through losses in search of a return to sustained profitability: Heartland Bank and One Bank & Trust.

What’s on the books and looming in the wings at the two struggling lenders?

Heartland Bank charged off $5.7 million in bad loans and recorded nonaccrual loans of $28.9 million and $7 million in loans 30-89 days past due during the first quarter.

Heartland reported $5.6 million in loan loss reserves and equity capital of $18.2 million as of March 31.

The $205 million-asset lender has ridden a rocky road for earnings for the last six quarters.

Heartland lost nearly $2.4 million in the first quarter.

At One Bank, nonaccrual loans totaled $5.5 million, a $2.3 million increase since Dec. 31. Loans 30-89 days past due stood at nearly $4.3 million.

As of March 31, the $298 million-asset lender carried a loan loss reserve of $3.1 million and total equity capital of $10.4 million.

Quarterly operational losses have dominated One Bank’s performance since Layton "Scooter" Stuart was swept out as CEO in September 2012 and Jerry Pavlas was ushered in to clean up the bank.

During the past five years, One Bank’s ability to turn a profit lending money has dwindled, but the size of its payroll hasn’t changed.

In the first quarter of 2012, the bank recorded net interest income of $3.8 million.

For the recent three months ending March 31, One Bank reported net interest income of $2 million.

Five years ago under Stuart, salary and benefits during the first quarter totaled more than $1.7 million when the headcount of staffers was 96.

Under Pavlas, the roster of employees stood at 72 during the first-quarter census in 2017.

Despite a 25 percent cut in staffing during the past five years, the tally of salary and employee benefits remains at more than $1.7 million.

Heartland and One Bank are both operating under regulatory agreements.

Improving their eroding capital is among the checklist items.

Time is growing short for One Bank to raise new capital or attract a buyer to solve its balance sheet woes.

Change has visited or is on the way at three other lenders striving to operate in the black.

Pinnacle Bank of Rogers merged with Central Bank of Little Rock, and Farmers Bank of Hamburg was acquired by Southern Bancorp of Arkadelphia in a $4.5 million transaction.

Community State Bank of Bradley, the smallest lender in Arkansas, is poised for an ownership change. The bank can’t generate adequate dividends to service the debt of its parent company, Allcorp Inc.

Allcorp is nearly 10 months into a trip to bankruptcy court. The biggest Allcorp debt is more than $1.2 million, the balance of a $2.1 million loan used to finance the purchase of the bank in September 2010.

The creditor: Heartland Bank.

Top Performers
Four of the leading banks in Arkansas were recognized recently as top-performing lenders. The measuring stick used by the Independent Community Bankers of America: three-year average return on assets.

El Dorado’s First Financial Bank ranked No. 6 among lenders with assets of between $300 million and $1 billion with a 3.15 percent ROA during 2014-2016.

Among lenders with assets of more than $1 billion, Little Rock’s Bank of the Ozarks ranked No. 14 at 2.09 percent, Searcy’s First Security Bank ranked No. 16 at 2.08 percent, and Conway’s Centennial Bank ranked No. 22 at 1.83 percent.

ICBA represents more than 5,800 community banks with $4.7 trillion in assets and 52,000 locations staffed by 760,000 nationwide.

First-Quarter Performance
Ranked by return on average equity. Dollars in thousands.

*Formerly Forrest City Bank
Source: Federal Deposit Insurance Corp.

Craig Attwood has joined FBT Bank & Mortgage as executive vice president and director of banking for Jefferson County.

He was previously vice president of the Indirect Lending Division at Simmons Bank in Pine Bluff.

Josh Mascaro has joined the Little Rock office of Stone Bank of Mountain View as vice president and sales manager. He was previously a vice president and sales manager with Simmons Bank and Metropolitan National Bank.

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

The folks at Bear State Bank declined to comment when we asked a couple of months ago about a tip that some 45 employees had been laid off along about the same time that Mark McFatridge resigned as CEO.

So we’ll just point out that the publicly traded Little Rock bank’s latest call report claimed 437 full-time equivalent employees as of March 31. That’s a reduction of 47 from the Dec. 31 call report — almost 10 percent.

Arkansas Blue Cross & Blue Shield of Little Rock, with revenue doubling in the past five years to nearly $2.5 billion, has taken the top spot on Arkansas Business’ annual list of the state’s largest private companies.

As always, that comes with an asterisk: Stephens Inc., the ultra-private investment bank in Little Rock, dropped to No. 2 based on a revenue that continues to be estimated at $2.25 billion. It is the least reliable number on the list and one of only six that have been estimated.

The price of entry to the list increased to almost $117 million from $100 million last year.

ABCBS, a nonprofit that dominates the state’s health insurance landscape, was led from the beginning of 2009 through 2016 by Mark White, who retired at the end of the year. He was succeeded by Curtis Barnett, formerly senior vice president of external operations.

Barnett inherited a company that had $1.27 billion in revenue in 2011. The $2.5 billion it reported in 2016 is not a record for the list: Truman Arnold Cos., which is no longer eligible for the list after moving its executive offices to Dallas, topped $3 billion in 2011 when the price of its main product, aircraft fuel, was sky-high.

The 75 companies on the list generated total revenue, self-reported and estimated, of $37.5 billion, an increase of almost 10 percent from last year’s list. But more than half of that growth is attributable to the highest-ranking debut of any company in the 30-year history of the list: McLarty Automotive Group of Little Rock, led by Mark McLarty. It reported $1.76 billion in revenue in 2016 after having been formed in 2014 to acquire existing auto dealerships and open new ones. (See Dealership Acquisitions Fuel McLarty Automotive Group.)

In what may look like a sibling rivalry, MAG took the No. 4 spot from RML Automotive, which dropped to No. 5 despite revenue growth of almost 13 percent last year. RML was formerly known as RLJ McLarty Landers Automotive Holdings, and was co-founded in 2004 by Mark McLarty’s father and brother, Thomas “Mack” McLarty and Franklin McLarty, with Mark joining as a shareholder.

MAG is the only newcomer to the top 10, displacing Bruce Oakley Inc., the bulk transporter based in North Little Rock, which dropped from No. 7 to No. 12 on a 22 percent decrease in revenue.

Companies whose fortunes are tied to the agriculture industry saw revenue generally flat to lower in 2016, while those working in the health care industry — like ABCBS, Baptist Health (No. 8) and list newcomers Unity Health of Searcy (No. 17) and Central Arkansas Radiation Therapy Institute Inc. (No. 62) — saw revenue growth. (See $1.02 Billion Keeps Baptist Health High on List and Letter Reveals CARTI’s Plan for Improving Finances.)

Welcome Back
McLarty Automotive Group, Unity Health and CARTI are the only true newcomers among the 75 companies on this year’s list. All three should have been on last year’s list but were not surveyed.

Two more companies have returned after being dropped last year:

• No. 59 Parker Automotive Group of Little Rock, which last year submitted an incorrect revenue figure for 2015 that was too low to make the cutoff. It has been corrected.

• No. 74 Multi-Craft Contractors Inc. of Springdale, which entered the list at No. 75 in 2015 but didn’t make the cutoff last year. (See Springdale's Multi-Craft Contractors Stays Flexible, Diverse.)

Making Room
Five companies that were among last year’s 75 had to drop off to make room for the five additional names. They are last year’s Nos. 72-75 — Arkansas Valley Electric Cooperative of Ozark, Mid-South Sales Inc. of Jonesboro, Lewis Automotive Group of Fayetteville and Dyke Industries of Little Rock — as well as SF Holding Corp. of Little Rock, the holding company for joint investments of Warren Stephens and his cousins, Witt Stephens Jr. and Elizabeth Stephens Campbell. Since the Stephenses sold Stephens Media in February 2015 for $102.5 million, SF Holding’s revenue is no longer estimated to be large enough for the list.

Finales
Two companies are making their final appearances on the list: No. 35 Vestcom international Inc. of Little Rock and No. 41 Ridout Lumber Co. of Searcy. Vestcom, which produces the shelf-edge price labels for retailers like grocery stores, was acquired in December by out-of-state ownership, Charlesbank Capital Partners. Ridout, family owned since 1971, was sold in January to US LBM of Buffalo Grove, Illinois.

30th Annual List of Arkansas’ Largest Private Companies

Warren Stephens owes bit a debt to capitalism, and he’s eager to rescue its suffering image.

And as president and CEO of one of America’s top investment banks off Wall Street, Little Rock’s Stephens Inc., he is in an ideal position to get the word out.

Stephens Inc. announced Monday that it has launched a multimedia series called “This Is Capitalism,” featuring short films on some of the heroes of capitalism in the United States, including Warren Stephens’ father, Jackson T. Stephens. The films, articles and other content featuring influential American business leaders, historians and academics is available here.  

Jack Stephens, along with his brother Witt, who founded the company in 1933, guided the Arkansas firm as it pumped billions of dollars into the American economy over the decades, fueling deals like Wal-Mart’s initial public offering, the bond issue that built the Superdome in New Orleans and Tyson Foods’ acquisition of Holly Farms.

Warren Stephens, who became CEO in 1986, was estimated by Forbes in 2016 to have a fortune of $2.4 billion. So, yes, capitalism has been good, but not just good for financiers, Stephens says.

“In recent years, capitalism has been recast as a system that enriches a few at the expense of the many; a force that divides people by class and achievement rather than one that is agnostic in opportunity,” Stephens said in introducing the film series.

The series confronts what Stephens sees as a negative narrative that has damaged capitalism’s image where it should be appreciated most, in the United States. He cited a 2016 Harvard Institute of Politics  poll finding that 51 percent of millennials do not support capitalism.”

Stephens said he has become increasingly concerned by this shift and what it means to the country.

“No other economic system has lifted more people out of poverty than capitalism,” he said. “It is why America today serves as the gold standard across the globe. It is time to reclaim the term…”

To that end, films on Alexander Hamilton and Madam C.J. Walker are already posted on the website. Hamilton, the immigrant who became the first U.S. secretary of the treasury and the “father” of the American economic system, is more than a muse for Broadway. He established a national bank, undergirded the American currency and established the nation’s credit. “A national debt, if not excessive, will be to us a national blessing,” he said.

Walker, born on the same plantation in Louisiana where her parents were slaves, became the country’s first African-American self-made millionaire, producing and marketing hair care products.

In June, short films will appear on Helena Rubinstein, the Polish immigrant who conquered the beauty industry, and Jack Stephens, who transformed not only Stephens Inc., but also Arkansas and the financial services industry in the state. July will bring two more films, on Chuck Williams, the veteran who made Williams Sonoma into a foodie and cookware empire; and Sam Walton, the legendary Wal-Mart founder.

ThisIsCapitalism.com also features articles by entrepreneurs and business executives, as well as frequently asked questions and other features.

“It is our hope that with these uniquely American stories we will start a dialogue about the positive impact free-market enterprise has on our country and communities,” Stephens said.