Banking & Finance - ArkansasBusiness.com

WASHINGTON — Emboldened by a business-friendly president, Republicans in Congress have set a goal that is nothing if not ambitious: To undo the stricter banking rules that took effect after the devastating 2008 financial crisis.

A vote Thursday to approve the bill in the House is essentially assured. The landscape is far different in the Senate, where Democrats have the votes to block it.

The 2010 Dodd-Frank law imposed the stiffest restrictions on big financial companies since the Great Depression. It curbed many banking practices and expanded consumer protections to restrain reckless practices and prevent a repeat of the 2008 meltdown.

The House bill, pushed by Rep. Jeb Hensarling, the Texas Republican who leads the Financial Services Committee, would repeal about 40 of Dodd-Frank's provisions. Notably, it would sharply diminish the authority of the Consumer Financial Protection Bureau, which oversees the practices of companies that provide products and services from credit cards and payday loans to mortgages and debt collection.

President Donald Trump launched his attack on Dodd-Frank after taking office, ordering a Treasury Department review of the complex rules that have put the legislation into practice. Trump called the law a "disaster" whose restrictions have crimped lending, hiring and the overall economy.

One part of Treasury's review is expected to be released soon. It could provide a blueprint for regulators to rewrite the rules. But Congress' legislation would be needed to actually revamp the law.

Unwinding a complex law that clocks in at 2,300 pages takes its own hefty bill: The Republicans' Financial Choice Act, as it's called, runs 580 pages. Here's a look at key changes it would make:

BANK REGULATION

Under the House bill, banks could qualify for regulatory relief if they held enough capital to cover potential big losses — a 10-1 ratio of capital over borrowed money. In exchange, such banks would gain exemptions or eased requirements for "stress tests" to assess their ability to withstand a downturn and for their plans to reshape themselves if they failed.

During the crisis, the government intervened to rescue the largest banks from collapse and saved some faltering institutions with bailouts and emergency loans or helped sell them to other banks. Trillions of taxpayer dollars were put at risk.

To avoid endangering taxpayers again, Dodd-Frank authorized regulators to dismantle a failing big firm, if they felt its collapse could endanger the entire system, and sell off the pieces. The Treasury would pay the firm's obligations and be repaid with industry fees and money raised from shareholders, bondholders and asset sales.

Critics argue that that means taxpayers could still end up on the hook. The new legislation would eliminate the regulators' power to dismantle firms.

VOLCKER RULE

This rule, which bars the biggest banks from trading for their own profit, would be repealed. The idea behind the rule was to prevent high-risk trading bets that could imperil federally insured deposits. Some banks argue that the Volcker Rule stifles legitimate trading on behalf of customers and the banks' ability to hedge against risk.

Republicans have stressed the need for regulatory relief from Dodd-Frank for community banks. And in a fairly rare area of bipartisan agreement, some Democratic lawmakers have indicated support for this, at least in theory.

The legislation would exempt smaller banks from a number of Dodd-Frank requirements. Banks with under $10 billion in assets, for example, would have to run "stress tests"— gauging their ability to withstand a severe economic downturn — just once a year instead of twice.

CONSUMER WATCHDOG AGENCY

The Consumer Financial Protection Bureau was empowered by Dodd-Frank to scrutinize the practices of virtually any business that sells financial products and services, including for-profit colleges, auto lenders and money-transfer agents.

The legislation would reduce those powers. And it would let the U.S. president remove the CFPB director at will without citing a cause for firing. That's the subject of a battle now in federal court. No longer would the CFPB have a guaranteed funding stream from the Federal Reserve. Instead, it would depend on Congress for its funding just as most federal agencies do. The agency would also lose its authority to write rules, like those governing mortgages.

The bill's targeting of the CFPB especially rankles Democrats and consumer advocates. The agency has, among other things, conducted investigations across the spectrum of financial products and opened a database for consumers to lodge complaints against companies. As a result of its enforcement actions, the CFPB says it has recovered nearly $12 billion that it returned to 27 million consumers harmed by illegal practices.

REINING IN REGULATORS

Dodd-Frank established a Financial Stability Oversight Council of top regulators, led by the Treasury secretary, of top regulators to monitor the financial system and identify potential threats.

The council also has authority to review nonbank financial firms, like insurance companies, to determine whether they're so large and interconnected that their failure would threaten the entire system. Once the council deems a company "systemically important," it becomes subject to stricter rules. Its use of borrowed money is limited. And it must submit to close supervision by the Federal Reserve and make more detailed disclosures.

The new legislation would strip the council of its authority to designate financial firms as systemically important and would make its funding subject to Congress' budget process.

RETIREMENT INVESTORS AND SHAREHOLDER POWER

The legislation would repeal the Obama-era Labor Department's so-called fiduciary rule. The rule tightened requirements for professionals who advise retirement savers. Wall Street and Republicans have been pushing against the rule, which compels financial pros who charge commissions to put their clients' best interests first in advising them on retirement investments.

The legislation also targets the frequency of "Say on Pay" shareholder votes on executive compensation as established by Dodd-Frank. Rather than hold a nonbinding vote at least once every three years, the legislation would allow it only when executives' compensation has changed "materially" from the previous year.

Shareholders with relatively small portions of company stock would find it harder to bring proposals to a vote by all shareholders. Individuals or groups of investors would have to own at least 1 percent of a company's stock for at least three years to put a proposal on the company proxy ballot. That compares with the current requirement of $2,000 worth of stock for one year.

WASHINGTON — The Republican-led House has moved closer to fulfilling President Donald Trump's goal of doing "a big number" on Dodd-Frank, the landmark banking law created after the 2008 economic crisis that was designed to prevent future meltdowns.

But the effort will likely require some major changes to bring about Democratic support in the Senate. Such support was missing entirely when the House voted 233-186 Thursday for a bill that would undo much of Dodd-Frank. House Republicans recognize the uphill climb, but were happy to chalk up a victory.

"Our families, small businesses and communities have been desperate for this change for years," said Rep. Steve Scalise, the House majority whip.

House passage was widely expected. Senators have said they'll spend the next few months trying to find common ground on legislation designed to boost the economy. Potential areas for compromise include changes to how much capital banks must maintain and decreasing the paperwork burden for small lenders.

Democratic Rep. Maxine Waters of California urged senators not to take up the House bill.

"They are setting the stage for Wall Street to run amok and cause another financial crisis," Waters said.

The overhaul bill targets the heart of the Dodd-Frank law's restrictions on banks by offering a trade-off: Banks could qualify for most of the regulatory relief in the bill so long as they meet a strict requirement for building capital to cover unexpected big losses.

Democrats defended the Dodd-Frank law, saying it has meant financial security for millions of people and that undoing it would encourage the kind of risky lending practices that invite future economic shocks.

They also oppose efforts to sharply curtail a consumer protection agency's power to pursue companies that it determines have participated in unfair or deceptive practices in their financial products and services. The Consumer Financial Protection Bureau has returned $29 billion to 12 million consumers who were victims of deceptive marketing, discriminatory lending or other financial wrongdoing.

"All we're doing is spending our time taking away protections for the American people and their futures. Have we learned nothing?" asked Rep. Steny Hoyer, D-Md.

Several Democratic lawmakers insisted they were willing to make some changes to Dodd-Frank, but that the Republican bill went much too far.

"The bottom line is we put an end to the Wild West of Wall Street, and were on a nice, steady playing field," said Rep. Michael Capuano, D-Mass. "We should be able to adjust it, but we should not throw it out."

The bill would repeal a rule that bans banks from engaging in trading for their own profit using federally insured deposits, or forming certain relationships with private equity funds. It would roll back a proposed rule that investment advisers who collect commissions must put their clients' interests ahead of their own.

Also, financial regulators would lose the power to dismantle a failing financial firm and sell off the pieces if they decided its collapse could endanger the system. Instead, the bill would let banks fall under an expanded part of bankruptcy law.

The overhaul of Dodd-Frank was crafted by Rep. Jeb Hensarling of Texas, chairman of the House Financial Services Committee. Hensarling said that consumers have suffered as a result of Dodd-Frank.

"We see free checking cut in half at banks. Bank fees are up. The ranks of the unbanked have increased," he said. "For many credit-worthy borrowers, they are paying $500 more for an auto loan. Have you tried getting a mortgage recently? They're harder to come by and they cost hundreds of dollars more to close."

Trump started his attack on Dodd-Frank soon after taking office, ordering a Treasury Department review of the complex rules that have put the legislation into practice.

One part of that review is expected to be released soon. It could provide a blueprint for regulators to rewrite the rules. But it would take legislation to revamp the law — and that's far from a certain prospect.

The American Bankers Association applauded the House vote, saying the bill would "fix financial rules that are holding back the U.S. economy, and doing little to enhance safety and soundness." Consumers Union criticized the vote and called on the Senate to "reject this rollback of critical consumer protections." AARP also was among groups opposing the bill.

The Federal Reserve has described the U.S. banking system as much more robust and resilient than it was before the financial crisis. Stronger capital requirements have improved banks' capacity to absorb economic shocks. But in the push to overhaul Dodd-Frank, Republicans said the biggest banks have only gotten bigger while local banks and credit unions are dwindling.

Rep. Walter Jones of North Carolina was the only Republican to vote against the bill.

The federal Change in Bank Control Act may be the most often overlooked — and one of the most often violated — of all banking regulations. Inadvertent violations have grown more common given the increase in estate planning-related stock transfers by shareholders planning the next generation of ownership.

Complex ownership structures often make it difficult to determine whether a filing is required. A review of the act's basic requirements suggests some steps to avoid problems.

CIBC Act Requirements

The act requires an application to be submitted to an institution's primary federal bank regulator at least 60 days before any person acquiring "control" of a state or national bank or bank holding company. Control refers to the acquisition of 25 percent or more of the outstanding shares of any class of voting securities of the bank or holding company. Applications for a bank holding company or state member bank are submitted to the Federal Reserve, while the Comptroller of the Currency approves applications for national banks and the Federal Deposit Insurance Corp. handles applications for insured state nonmember banks.

The CIBC Act applies to acquisitions by any "person," which includes individuals, trusts and other entities. An acquisition of control may occur from a direct purchase of shares or indirectly, such as by an increase in a shareholder's ownership percentage resulting from the redemption of shares owned by another shareholder.

Where an acquirer is "acting in concert" with others, the parties will be viewed as a single group making the acquisition, and their ownership will be aggregated to determine whether prior approval is required. This determination most commonly involves a purchasing group acting as part of a coordinated acquisition transaction.

Presumptions

For privately held institutions, a person is presumed to control the bank or holding company if, after the acquisition, he or she will own or control 10 percent or more of any class of voting securities of the company and be the largest single shareholder. For public companies, presumption of control applies when a shareholder reaches a 10 percent threshold.

An individual and his or her immediate family members are presumed to be acting in concert in any acquisition. The definition of immediate family is broad, including in-laws and step relatives. If a family's aggregate ownership exceeds that of any other single shareholder of the company, then the family group itself must file a CIBC Act application. Where a family group includes trusts, each trustee is treated as controlling all shares owned by the trust.

Application Requirements

The act requires the acquiring person or group to submit an application to the applicable federal regulator including a general description of the transaction, pre- and post-transaction ownership percentages, terms of the acquisition and financing, and copies of relevant transaction documents. Any member of the group that will own 2 percent or more of the bank's shares after the transaction may be required to submit an Interagency Biographical & Financial Report and submit to a background check.

While regulators can impose penalties for violations of the act, most inadvertent violations are corrected by submission of a late application. These accidental violations are often caught when a holding company seeks to acquire another bank. Although they can generally be remedied without much heartache, they may prove costly in delaying a planned acquisition.

What to Do

Organizations should review shareholder lists at least quarterly to ensure that any changes will not require a CIBC application. The Federal Reserve, in its review of a proposed acquisition, will typically compare the current shareholder list to prior Fed filings. Any changes within a control group may require a late application.
Companies should ensure that their shareholders agreements restrict transfers that require federal or state approval. Language should state that any proposed transfer is void without a required pre-transfer approval. While this does not eliminate the the application process hassle, it puts the company in a better position with regulators by showing that it is taking steps to police compliance. Shareholders agreements should also require prior notice of a proposed transfer to the institution's board of directors.
The shareholder list and any regulatory issues or application requirements should be discussed with regulatory contacts before the transfer.

(Robert T. Smith is a partner in the Little Rock office of Friday Eldredge & Clark. Email him at RSmith@FridayFirm.com.)

The Simmons First National Corp. board of directors on Thursday declared a regular $0.25 per share quarterly cash dividend payable July 3, to shareholders of record June 15.

This dividend represents a 1-cent per share, or 4.2 percent, increase above the dividend paid for the same period last year.

Simmons First National Corp. is a financial holding company headquartered in Pine Bluff.

On April 19, the company reported first-quarter net income of $22.1 million, down 6 percent from the same quarter last year.

Nearly seven years ago, Lex Golden began leveraging up with debt in hopes of riding out a financial storm of his own making. Instead of saving Allied Bank from the ruinous meltdown of a radio-active loan portfolio he built, the Little Rock banker rode the same downward spiral to insolvency. Now, Golden and his remaining business interests are in bankruptcy court to salvage what can be salvaged.

As part of this financial reckoning, Golden has sold jewelry and gemstones to generate cash and bartered with antique furniture to pay legal bills and other debts.

Despite circumstances that have left creditors big and small unpaid, Golden is trying to hold on to his extensive wine collection while trying unsuccessfully to negotiate six-figure employment contracts for him-self and his son.

Golden steered Allcorp Inc., the parent company of Community State Bank of Bradley (Lafayette County), into bankruptcy court to stave off creditors 11 months ago. A deal to sell his family's 87.3 percent stake in the smallest bank in Arkansas evaporated last month.

The proposed transaction would have paid the Golden family $751,000 plus temporary employment for Golden, chairman and CEO of Allcorp, and his son, Alex, president of Allcorp.

The elder Golden would have received a two-year consulting agreement that paid $10,000 a month.

Alex Golden would have received a one-year employment contract that paid a $100,000 salary, health insurance benefits and a $400 monthly automobile allowance plus a two-year consulting contract worth $6,500 monthly.

Lex and Alex Golden each own 39.28 percent of the $15.5 million-asset bank through Allcorp. The proposed sale also encompassed the shares owned by the trusts for the children of Alex Golden and his sister, Amy McCay, which hold 4.37 percent each.

The deal was called off be-fore it was even submitted for regulatory review. One prospective Community State Bank investor believes the transaction was destined for rejection.

"Lex seemed to think they could get regulators to approve the deal," said the source, who requested anonymity. "But that just wasn't going to happen.

"Any deal we do is going to be good for everyone. We don't do special deals. We'll be watching to see what transpires."

Allcorp's prime creditor, Heartland Bank of Little Rock, wasn't willing to discount the nearly $1.3 million debt to accommodate the planned sale either, according to Lex Golden.

Heartland advocates the sale of Community State Bank since the struggling bank can't produce sufficient dividends for Allcorp to repay the delinquent loan.

Riverside Bank of Sparkman also has two loans totaling more than $527,000 secured by the Allcorp stock owned by Lex and Alex Golden.

Wine & Trips to France

Lex Golden followed the Chapter 11 bankruptcy of All-corp with a Chapter 7 bank-ruptcy of his own in February. He and his wife, Ellen, listed total assets of $1.9 million and total liabilities of $7.7 million.

Among the bones of contention in the personal bankruptcy is his position that his wine collection is a non-transferrable asset. Maybe it's 500-1,000 bottles, and maybe it's worth $10,000-$25,000, according to Golden.

At a May 26 creditors meeting, bankruptcy trustee Hamilton Mitchell asked Golden to refrain from consuming, disposing or transferring any of the wine.

"Do you agree to comply with that, Mr. Golden?" Mitchell asked.

Golden balked at the question while noting that opening a bottle a wine for him was "like opening a can of green beans."

Pressed for a yes or no, Golden said, "I'm dumbfounded. I don't know how to answer."

The wine collection and spending money on trips to France in the months preceding bankruptcy were topics of interest for a leading creditor, Chambers Bank of Danville.

"You don't have a list of the bottles of wine you own, I assume?" asked John Riedel, the bank's attorney, at an April creditors meeting.

"No," said Golden.

At another point, an incredulous Riedel asked, "You don't remember how many times you left the country during the past 12 months?"

According to their bankruptcy filings, the Goldens gave Elka Halliger two diamond rings to settle a debt of nearly $32,000 on Nov. 17 during one of their trips to Paris.

Halliger rented the Goldens a Paris apartment for 20 years related to his wife's French antiques business, according to Lex Golden. That venture is included in their bankruptcy.

"I leave all the financial things to Lex," Ellen Golden said at the May creditor's meeting. "He handles the money."

On Jan. 18, 2017, other unspecified jewelry was sold to Little Rock's Braswell & Son Pawnbrokers for $6,220 to pay bills.

On Aug. 29, four un-specified gems were sold to Wilkerson Jewelers of Stuttgart for $56,680. According to Lex Golden, the money was de-posited in the operations of Terry's Finer Foods.

Ten months ahead of closing Terry's in February, the Goldens took on more than $200,000 of new debt linked with the grocery store that became unsecured debt in their bankruptcy.

Also among their creditors is the Gene Lewellen Sr. estate, owed $286,272 from the 2009 sale of Terry's.

"My father made a lot of phone calls towards the end of his life trying to get it all straightened out," said Jeff Lewellen, son of the late Gene Lewellen. "My mom and dad were owed money, and they should get it. We're just trying to keep our fingers crossed."

The Lewellen debt is among more than $4 million of unsecured debt listed by the Goldens in their Chapter 7 petition.

Bankruptcy Path of Allcorp and Lex & Ellen Golden

2010

Sept. 1: Allcorp Inc. borrows $2.1 million from Heartland Bank of Little Rock to buy Community State Bancshares Inc., parent company of Community State Bank of Bradley. The loan is secured by the bank's 10,000 shares of outstanding stock.

2016

April 25: With the Allcorp loan in default, Heartland Bank sends notice of its intent to sell the stock at a public sale on June 24. The notice is sent to Lex Golden, chairman and CEO of Allcorp, who personally guaranteed the loan.

June 23: The sale is canceled when Heartland enters into a forbearance agreement with Allcorp and Golden.

July 5: A public sale of the bank stock is rescheduled for July 28 after Allcorp and Golden fail to meet the obligations of the forbearance agreement.

July 15: Chambers Bank of Danville lands a $2 million summary judgment in Yell County Circuit Court against Lex Golden and his wife, Ellen. The judgment is tied to a September 2010 loan to Acme Holding Co., the bankrupt holding company of Allied Bank in Mulberry.

The delinquent loan, used to help recapitalize the struggling bank, was personally guaranteed by the Goldens; the Golden family owned most of Allied Bank through Acme Holding Co. In addition to the Golden family's interest in Allied, the debt is secured by a $5 million Sun Life Financial life insurance policy on Lex Golden with annual premiums of $63,645.

July 27: Allcorp files for Chapter 11 bankruptcy. In later filings, Allcorp claims assets of nearly $3 million and liabilities of about $1.3 million. The assets reflect Allcorp's valuation of Community State Bank. The liabilities reflect debt owed to Heartland.

Sept. 23: The $66.3 million-asset Allied Bank is taken over by regulators and sold to Today's Bank of Huntsville for a negative bid of $6.14 million.

2017

Jan. 19: The $15.5 million-asset Community State Bank enters into a memorandum of understanding with the Arkansas State Bank Department and the Federal Deposit Insurance Corp.

Jan. 27: A would-be deal is struck to sell the Golden family's 87.3 percent stake in Community State Bank for $751,000. The prospective buyers of the Allcorp stock are listed as three Dallas trusts associated with Eric Donnelly, chief financial officer of Capital Plus; Chad Vose, president of Harbor Portfolio Advisors; and Farzana Giga, CFO of Harbor Portfolio Advisors.

Feb. 9: Chambers Bank acquires the $5 million life insurance policy on Lex Golden from the bankruptcy estate of Acme Holding for $12,000. The bank paid more than $60,000 in premiums to keep the policy in force after Acme entered bankruptcy in April 2014. A Chambers affiliate also holds a delinquent $1.5 million loan that was personally guaranteed by Lex Golden. Chambers Bank held an additional $2.5 million of debt associated with a loan to Acme Holding.

Feb. 24: The Goldens close Terry's Finer Foods one step ahead of eviction. The landmark Heights neighborhood grocery store at 5018 Kavanaugh Blvd. had been purchased in January 2009 from Gene Lewellen Sr.

Feb. 27: Lex and Ellen Golden file Chapter 7 bankruptcy claiming total assets of $1.9 million and total liabilities of $7.7 million. Among the creditors is the Gene Lewellen Sr. estate, owed more $286,272 from the sale of Terry's.

May 23: Heartland asks for court approval to sell the Community State Bank stock or convert the case to Chapter 7 liquidation. The bank proposes hiring DD&F Consulting Group to market the stock to a third-party buyer. The Little Rock firm would be paid a $10,000 retainer to cover hourly billing plus a $50,000 "success fee" if a sale is completed.

Allcorp files a plan to restructure the Heartland debt, essentially converting it to an interest-only, five-year loan bearing an interest rate of 3.25 percent amortized over 20 years with a balloon payment of $1.1 million.

Among its sticking points, the plan hinges on regulatory approval for the bank to pay dividends to Allcorp, something currently restricted.

The reorganization plan also proposes that the sale of any real estate or personal property of Allcorp be paid out: 45 percent to Heartland; 45 percent as dividends to shareholders; and 10 percent retained for discretionary use by Allcorp.

May 28: During a creditor's hearing, Lex Golden discloses that the prospective buyers of his family's Allcorp stock canceled the deal by email on May 27.

Trying to protect your privacy by restricting your internet use is like trying "to opt out of fire," said Hank Bates, a partner in the Little Rock law firm Carney Bates & Pulliam.

The internet as a tool of modern life is now so pervasive — and so essential — that avoiding it is next to impossible.

But almost every digital act performed by consumers involves sharing private data, and consumers may not always fully understand their level of exposure.

In the past four years or so, Carney Bates has focused on legal issues surrounding data security and privacy. Among the high-profile cases it has been a party to are class-action lawsuits against Facebook and Google and cases involving Home Depot, Target and Sony.

Data privacy cases now comprise about 40 percent of Carney Bates' business, said partner Allen Carney.

The firm focuses on three distinct areas of data security, Bates said.

There are data breach cases, when a third party takes data from a company "and therefore the claim is that the company didn't protect your data," he said. The subsequent litigation is "about the company — the defendant — not properly protecting that data." The Home Depot, Target and Sony cases illustrate that area.

Carney Bates & Pulliam has represented financial institutions in several of these data breach cases.

Banks often take the first hit when a retailer's customer data is compromised.

Retailer data breaches harm banks in several ways, Bates said. Reissuing payment or credit cards is "a huge out-of-pocket cost," he said.

Banks also sustain a "huge goodwill hit," because of the inconvenience customers experience when forced to change their payment information. And if financial institutions fail to cancel cards quickly enough after a data breach, they find themselves covering fraud losses.

Data privacy is the second area. These cases, Bates said, are "about the actions of the defendant affirmatively doing something with your data that they weren't transparent about." The Facebook and Google cases illustrate that area.

Although people call that area "data privacy," he said, "I think of it more as ‘data autonomy' because ‘data privacy' makes a lot of people think it's about the company having some sort of [perverse] interest in what you're doing."

But that's not the central issue, Bates said.

"It's really about autonomy and power, that you control what information people have about you," he said. "When people get information about you and then gather a lot of information about you, they get to a point where they may know you better than you know yourself. And then they start influencing you in ways that you aren't even aware of.

"We see that through changes to people's Facebook feeds, the news you get, the type of advertising you get. And that, over time, gives them power to change you. You lose personal autonomy, and, of course, that can get worse and worse and worse."

In addition, Bates added, "it leads to a concentration of power, so that you get an imbalance of power among certain companies that are getting very, very powerful."

The third area of data security is the marketing of protection from data breaches and theft. In January 2015, the Carney Bates firm brought a class-action case against LifeLock Inc. of Tempe, Arizona, an identify theft protection company, alleging deceptive marketing. That case, filed in federal court in the Northern District of California, was settled last year for $81 million, Bates said.

Fast and Slow

Carney Bates had always done a lot of consumer work — for example, representing credit card holders in cases alleging fraudulent billing by card issuers — and as consumer activity shifted to the internet, the law firm's focus shifted with it.

And then, Bates said, "We started taking a personal interest in the issues, just because we think it's important."

It's also "intellectually engaging and sort of fun," he said. While business and technology are moving at lightning speed, "law moves slow," Bates said. "And law has a lot of catching up to do because you've moved to a new paradigm."

Law once applied in one context — privacy as it pertains to the mail, for example — must now be applied in a very different context.

"I think the thing that's interesting to me is the huge, unknowing loss of privacy that people suffer on the internet, on their phones," Carney said. "I think the average person does not appreciate that when they download an app on their phone to play a game, for example, that the app developer and then a group of other folks in that stream of commerce are looking at all of their contacts. They note where they are 24 hours a day by looking at their GPS location. They look at their photos. Every photo that's saved — you're giving access to those.

"I think that's what's interesting to us," he said. "Maybe we're old-fashioned privacy advocates, but the idea that you turn over all that private information to persons you don't know is troubling. And in the modern world it's almost impossible to avoid using a cellphone."

Bates agreed, offering an analogy. To not use a mobile phone, he said, is "like being a caveman and saying, ‘You know, that fire thing looks interesting, but it looks dangerous and I'm opting out.'"

And once the phone tracking begins, "then they start tracking you across devices," Bates said. "And it's all these companies you've never heard of that are tracking you on your phone and then they find ways … to track you across your mobile phone, your TV, your laptop" and, if you still have one, your desktop computer.

As people adopt "smart," internet-connected devices in their homes, that tracking will only intensify, he said.

The companies gathering this information fall into a couple of categories, Bates said. "A small subset" is very sophisticated in the information they collect and the ways in which they use it. But a much larger group is collecting the information just because they can and because it "may be worth something someday."

And those companies, Carney said, are susceptible to data breaches as well.

The internet provides enormous convenience to consumers, but, Carney said, he's not sure the average consumer realizes he's trading privacy for convenience.

Citing cellphone use, he said, "Did you really contemplate that Verizon or AT&T could, if asked, say within 4 meters everywhere you have been … everyone you've sent an email to, every telephone call you'd made, every website you've looked at?"

Ownership of a 62,688-SF building in downtown Little Rock shifted in a transaction valued at $2.13 million.

Deep Creek LR LLC, led by Victor Pereboom of Prescott, Arizona, bought the M.M. Cohn Building at 510 Main St. The seller is Main Street Lofts LLC, led by Bryan Pereboom and Jacob Spellmeyer.

The 0.29-acre property is now tied to an $824,784 mortgage held by AMR Construction LLC of Little Rock and helps secure an October 2012 mortgage of $916,000 held by the Pulaski County Brownfields Revolving Loan Fund.

The building previously was linked with a December 2016 judgment of $896,756 held by AMR and a July 2015 mortgage of $2 million held by Riverside Bank of Sparkman.

Main Street Lofts, originally led by Scott Reed of Portland, Oregon, purchased the property in August 2012 as part of a $1.5 million deal. The seller was Lafayette Plaza LLC, led by Stephen Marks Sr.

Dollar Deal

A 12,380-SF store in Little Rock weighed in at $1.55 million.

SS Realty Ltd. of North York, Ontario, acquired the Dollar General at 7710 Col. Glenn Road from PB General Holdings (Asher) LLC, led by Leonard Boen.

The 1.56-acre development previously was linked with an April 2015 mortgage of $943,288 held by Simmons Bank of Pine Bluff. The site was bought for $258,000 in June 2010 from the Carolyn Ann Hougland Revocable Trust.

Industrial Sale I

A 56,540-SF facility in the Little Rock Port Industrial Park sold for $700,000.

Amrap Holdings LLC, led by Scott Senyard and Justin Marshall, purchased the 8423 Frazier Pike project from L&D Rentals LLC of Fort Smith. The deal is backed with a $625,000 loan from First State Bank of Lonoke and a $700,000 mortgage carried by L&D Rentals.

The 6.07-acre development was ac-quired for $269,000 in April 2013 from Leggett & Platt Inc. of Carthage, Missouri.

Industrial Sale II

A 42,260-SF industrial complex in Little Rock drew a $595,000 transaction.

Little Rock LLC of Topeka, Kansas, bought the Goldman Recycling project at 1701 E. 14th St. from Goldman & Co., led by Randy Pierce. The deal is funded with a $550,750 loan from Intrust Bank of Wichita, Kansas.

The 2.32-acre development previously was tied to May 2007 mortgages of $500,000 and $300,000 held by Bank of Little Rock. Goldman & Co. purchased the property through Paul Fenley for $432,500 in December 1978 as part of its Chapter 11 bankruptcy reorganization.

Barwood Buy

A mobile home park in southwest Little Rock changed hands in a $307,000 deal. Barwood Trust, led by Tony Anthony, acquired its namesake project at 9500 Reck Road from Finest Place Inc. of Guyton, Georgia.

The deal is financed with a 15-year loan of $232,000 from Clifton and Jan-ice Williams and a 30-year mortgage of $75,000 carried by Finest Place.

The 6.93-acre property was bought for $550,000 in December 2010 from the Williams family.

Office Transaction

A 4,076-SF office building in Jacksonville rang up a $275,000 sale.

BRT Enterprises LLC, led by Mary Alice Hughes and Lisa Jo Bamburg, purchased the Access Rehab project at 1200 W. Main St. from John Zumwalt.

The deal is backed with a $275,000 mortgage carried by Zumwalt.

The 0.55-acre development was ac-quired for $217,000 in June 2010 from Thomas Bond.

Rental Purchase

A small multifamily property in Little Rock is under new ownership after a $185,000 transaction.

Windy Point LLC, led by Mark Babbitt, bought the 101-105 Battery St. project from Little Rock Community Mental Health Center Inc.

The 0.3-acre development was purchased for $87,000 in August 1992 from the estate of Wayne Wilkins.

Sologne Manor

A 7,086-SF home in west Little Rock's Sologne Circle neighborhood of west Little Rock's Chenal Valley development tipped the scales at $1.2 million.

Alfred and Brenda Herget acquired the house from Craig and Gretchen Farrell.

The deal is funded with a seven-year loan of $1 million from IberiaBank of Lafayette, Louisiana.

The residence previously was linked with a January 2015 mortgage of $765,000 held by Bank of Little Rock Mortgage Corp.

The location was bought for $280,000 in September 2009 from Stanley Spangler.

Cliffewood Abode

A 3,048-SF home in Little Rock's Cliffewood neighborhood sold for $825,000.

Daniel and Emily Heard purchased the house from James and Allison Dowden. The deal is financed with a 30-year loan of $550,000 from Wells Fargo Bank of Sioux Falls, South Dakota.

The residence previously was tied to a February 2017 mortgage of $581,000 held by BancorpSouth Bank of Tupelo, Mississippi. The Dowdens acquired the property for $255,000 in July 1990 from Ellis Fagan III and his wife, Frances.

River Heights Home

A 3,722-SF home in Little Rock's River Heights neighborhood drew a $780,000 transaction. The Mehaffey Family Revocable Trust, led by Thomas and Sheila Mehaffey, bought the house from the Jennifer T. Barrett Revocable Trust.

The residence previously was linked with a March 2011 mortgage of $410,000 held by Merrill Lynch Credit Corp. of Jacksonville, Florida. The property was purchased for $570,000 in August 1999 from Saad and Naomi Taha.

PV Residence

A 4,173-SF home in west Little Rock's Pleasant Valley neighborhood changed hands in a $695,000 deal. Craig and Gretchen Farrell acquired the property from Daniel Heard.

The deal is backed with a 30-year loan of $424,000 from Bank of Little Rock Mortgage. The residence previously was tied to a June 2012 mortgage of $417,000 held by the mortgage company.

Heard bought the house for $645,000 five years ago from FTH Revocable Trust, led by Todd Hickingbotham.

Prospect House

A 2,627-SF home in Little Rock's Prospect Terrace neighborhood rang up a $639,550 sale.

Joshua and Audra Pettus purchased the house from JVRC LLC, led by Jett Ricks. The deal is funded with a 30-year loan of $375,000 from Little Rock's Bank of the Ozarks.

The residence previously was linked with an August 2016 mortgage of $380,000 and a January 2017 mortgage of $83,200 held by BancorpSouth Bank.

JVRC acquired the property for $300,000 10 months ago from the estate of Charles Wooten.

Deauville Place

A 4,183-SF home in the Deauville Place neighborhood of west Little Rock's Chenal Valley neighborhood is under new ownership after a $540,000 transaction.

Pamela Mobley bought the house from Manish Raj. The deal is financed with a 30-year loan of $424,100 from Caliber Home Loans Inc. of Irving, Texas.

The residence previously was tied to a July 2012 mortgage of $408,000 held by One Bank & Trust of Little Rock.

Raj purchased the property for $510,000 nearly five years ago from Amy and Brian Eble.

Oaks Abode

A 3,278-SF home in The Oaks neighborhood of west Little Rock's Chenal Valley development sold for $500,000.

Allen Bradley and Judith Garrett ac-quired the house from Tanya Toney.
The deal is backed with a 30-year loan of $400,000 from Regions Bank of Birmingham, Alabama.

The residence was bought for $529,000 in March 2006 from Jimmy and June Wilson.

He's been a spokesman for Simmons Bank and the voice of the Ouachita Baptist Tigers. He wrote the first full-length biography of Hillary Clinton and practically wrote the book on Southern barbecue. He reported on political campaigns and ran them, infuriated politicians and worked for them, and covered everything from White House summits to Little League baseball games.

Rex Nelson once even edited the publication you're reading now.

He has played enough roles in Arkansas journalism, broadcasting, business and politics to become all but a household name. And at age 57, Nelson is "home again," doing what he likes best.

"That's traveling around and writing about Arkansas," Nelson said as he gave up his well-paying post as a senior vice president at Simmons First National Corp. a couple of weeks ago. Now he'll be patrolling the state in a Chevy Equinox and writing three columns a week for the Arkansas Democrat-Gazette. His title is senior editor, and he'll be a public face of the newspaper, speaking to civic groups around the state and flexing his expertise on Arkansas history and culture.

So will the paper pay him on the same scale as Simmons did?

"I'm doing this because it's what I want to do," he told Arkansas Business. "Let's just put it that way."

Nelson was already writing once a week for the Democrat-Gazette's op-ed page, as well as working for Simmons and tending to his blog, Rex Nelson's Southern Fried. The multitasking comes naturally. Nelson worked full time as sports editor of the Daily Siftings Herald in Arkadelphia while studying at Ouachita Baptist University and serving as the sports director at two radio stations. Except for a few years when he was in Washington, he has announced OBU football games on radio since his student days, a total of 35 years.

"The newspaper world has intrigued me since childhood, and it calls again."

When I met Nelson, I was a 19-year-old sportswriter and he was a role model: a keen observer and writer chafing against the kind of reverential coverage the Arkansas Razorbacks got from Arkansas Gazette sports editor Orville Henry. Henry was beloved for covering the Hogs thoroughly since World War II, but rah-rah sports writing was waning by the early 1980s.

Nelson joked about Henry's thousands of words, largely chronological, on every Hog football game. "Here's the lead of an Orville Henry game story," he jibed: "The wind was out of the west at 10 miles per hour and the Razorbacks won the toss."

A play-by-play of Nelson's career would take too long, but here are highlights: Nelson was an assistant sports editor at the Democrat, then left the editorship of Arkansas Business to be the Democrat's political editor during Bill Clinton's 1992 presidential campaign and first term. He wrote "The Hillary Factor," published in 1993, as the first full-length biography of the future secretary of state.

From 1996 to 2009 Nelson worked for former Gov. Mike Huckabee in policy and communication and was a George W. Bush appointee to the Delta Regional Authority. More recently, he led Arkansas' Independent Colleges & Universities and was a government relations chief for The Communications Group.

"It all prepared me for this," said Nelson, who said the job evolved over several talks with Democrat-Gazette Publisher Walter Hussman Jr., who sees the move as good for a paper that has reluctantly pruned its staff in a lean era for the publishing industry.

Hussman told Arkansas Business that a good local columnist is a treasure, "and Rex is excellent. It is good to have unique content that no one else has, and [Nelson's column] offers more value for our subscribers." The column runs Sundays, Wednesdays and Saturdays.

Nelson is following in the tradition of the old Arkansas Traveler column, though he didn't revive the name. Established by the late Ernie Deane in the Gazette in the 1950s, the travelogue was a reader favorite. Charles Allbright, the last to write it, died in 2015. In between, two of the best newspaper writers the state ever produced, Mike Trimble and Bob Lancaster, roamed the state looking for stories.

Nelson's column is his own, and its logo is simply his name and picture.

"My approach will be to try to turn out three pieces a week that most readers will be interested in," Nelson said. "I will have the freedom to write about what I want, whether it's politics, people, history or culture. I hope to tell stories about Arkansas."

Complex ownership structures often make it difficult to determine whether a filing is required. A review of the act's basic requirements suggests some steps to avoid problems.

CIBC Act Requirements

Presumptions

Application Requirements

What to Do

Organizations should review shareholder lists at least quarterly to ensure that any changes will not require a CIBC application. The Federal Reserve, in its review of a proposed acquisition, will typically compare the current shareholder list to prior Fed filings. Any changes within a control group may require a late application.
Companies should ensure that their shareholders agreements restrict transfers that require federal or state approval. Language should state that any proposed transfer is void without a required pre-transfer approval. While this does not eliminate the the application process hassle, it puts the company in a better position with regulators by showing that it is taking steps to police compliance. Shareholders agreements should also require prior notice of a proposed transfer to the institution's board of directors.
The shareholder list and any regulatory issues or application requirements should be discussed with regulatory contacts before the transfer.

(Robert T. Smith is a partner in the Little Rock office of Friday Eldredge & Clark. Email him at RSmith@FridayFirm.com.)

Jennifer Shabdue has been promoted to assistant project manager at Cline Construction Group in North Little Rock. She was previously a project coordinator.

Education

Abdel Bachri has been named interim dean of the College of Science & Engineering at Southern Arkansas University at Magnolia. He is an associate professor of engineering and chair of the Department of Engineering & Engineering Physics at the university.

Financial Services

Julie Austin has joined TruService Community Federal Credit Union in Little Rock as marketing coordinator. She was previously the center manager at Sona Medspa in Little Rock.

Ashish Patel has been promoted to bank assistant examiner in information systems at the Arkansas State Bank Department in Little Rock. He was previously an information systems examiner.

Media/Marketing

Kristin Smith has been hired at Team SI of Little Rock as a technical project manager. She previously worked at Acxiom as a project manager.

Emily Reeves Dean has joined Cranford Co. in Little Rock as director of brand and social strategy. She was formerly a communications consultant and former director of digital innovation and insight planning at Stone Ward.

Nonprofit

Renie Prentice Rule has been named executive director of the Arkansas Hospice Foundation and vice president of development for Arkansas Hospice in North Little Rock. She was previously executive director of development for the UAMS College of Medicine in Little Rock.

Community banks were not the cause of the 2008 housing and economic crisis. However, due to the regulatory creation of Dodd-Frank — Washington's response to the crisis — small community financial institutions have borne the brunt of its effects. They have been unfairly punished with burdensome regulations that have increased paperwork and reduced productivity and services in too many of our communities.

As a former chief executive of a locally owned community bank in Little Rock that existed before and after the implementation of Dodd-Frank, I saw firsthand how regulatory requirements for smaller financial institutions created an unreasonable burden that makes it exceptionally difficult for them to fulfill their roles in providing consumers, small businesses and entrepreneurs with competitive services and access to credit and capital.

In Arkansas alone, the number of banks in our state has gone from over 250 in the mid 1990s to around 100 today. A large contributor to this has been the increased regulatory burden from the federal government. These institutions have historically remained well-capitalized and should never have been unfairly punished for the mistakes of the federal government and larger financial institutions.

Prior to the expansion of the federal safety net, first with the formation of the Federal Reserve System in 1913, followed by the creation of the Federal Deposit Insurance Corporation (FDIC) during the Great Depression, bank shareholders held substantially higher ratios of capital to assets. While there was a slight uptick during the early 1990s following the passage of the FDIC Improvement Act of 1991, over the past century, ratios of shareholder equity capital to assets for commercial banks have fallen.

Unfortunately for taxpayers, capital ratios at some of the largest financial institutions in the country remained low even after the new Prompt Corrective Action penalties and new capital expectations of the FDIC Improvement Act. For example, at the time of the 2008 housing crisis, Citicorp had a capital ratio on December 31, 2007 of only 4.03 percent for its Tier 1 leverage ratio.

The results of the Dodd-Frank Act of 2010 have only worsened this issue, layering more "macroprudential" regulation and more regulatory expense, while not substantially reducing the moral hazard underlying our "too big to fail" banks. In fact, some argue that the moral hazard actually has been enhanced by the institutionalization of the government-driven "too big to fail" doctrine emphasized in the Dodd-Frank Act.

The centerpiece of the House Financial Services Committee bill, known as the Financial CHOICE (Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs) Act, is a significant change in approach. To reduce the moral hazard and increase the "microprudential" attention of bank managers, boards of directors and shareholders, the Financial CHOICE Act offers a voluntary capital election.

This is being termed as a "regulatory off ramp" for financial institutions with high capital. Generally, for a bank or credit union to be considered "well-capitalized" by the FDIC today, the institution must have a Tier 1 leverage ratio of 5 percent or higher. In Title VI of the Financial CHOICE Act, we double that level of capital to a Tier 1 leverage ratio equal to 10 percent or higher.

The level of 10 percent was arrived at by reviewing bank failures over time at various levels of Tier 1 Capital. Additionally, in April 2015, FDIC Vice Chairman Tom Hoenig proposed a similar off-ramp concept and also established a 10 percent Tier 1 Capital leverage ratio as a good working number for his proposal. The House Financial Services Committee then came together to arrive at a similar aspirational number to drive up shareholder risk and drive down the moral hazard and taxpayer risk.

This voluntary off-ramp concept is available to all banks that would avail themselves of its provisions. However, it is unlikely that the nation's largest, most complex institutions will be able to justify the dramatic increase in equity capital necessary to achieve the regulatory benefits.

The recent Congressional Budget Office (CBO) report on the CHOICE Act confirms this, stating: "CBO expects that most of the financial institutions that chose to maintain a leverage ratio at 10 percent would be those with assets below $10 billion, commonly known as community banks." And that "the eight large banks headquartered in the United States that are characterized as globally systemic important banks (G-SIBs) would not make the election because they would have to raise much more capital."

However, for our nation's community banks and credit unions scattered across the main streets and avenues of our cities, it's our estimate that about 75 percent of these community institutions already hold Tier 1 capital at the 10 percent threshold.

By availing themselves of this voluntary mechanism, community banks will have more options when it comes to product innovation and services for small businesses, consumers, families, farmers and our entrepreneurs across the nation.

Alexander Hamilton said that banks are the "nurseries of our national wealth." Those of us on the House Financial Services Committee who worked on this bill believe that the centerpiece of our Financial CHOICE Act will encourage more equity capital to be maintained by banks, making our banks safer and therefore giving them the flexibility to serve the public in good times and bad.

(French Hill represents the 2nd Congressional District of Arkansas in the U.S. House of Representatives.)

The Northwest Arkansas Council named Nelson Peacock as its CEO on Tuesday.

Peacock, 47, has met with staff members at the council, a private nonprofit, and will take office in July. Peacock replaces Mike Malone, who was CEO from 2006 until he resigned last year to work for Runway Group LLC in Bentonville.

Nick Hobbs, the president of the Dedicated Contract Services at J.B. Hunt Transport Services Inc. of Lowell, chaired the search committee that selected Peacock over six candidates who were interviewed. Hobbs said the search, aided by a search firm, was nationwide before choosing Peacock, who is the senior vice president of government relations for the University of California system.

"Nelson clearly rose to the top," Hobbs said. "We're really excited. We had the bar set high. We knew exactly what we were looking for and found the perfect individual."

Mike Harvey, the council's COO, served as interim CEO after Malone's resignation and interviewed for the CEO position. Harvey will remain with the council as COO, and Peacock opened his remarks by thanking Harvey for his assistance during the transition.

Peacock grew up in McCrory and earned a law degree from the University of Arkansas in Fayetteville. He served as legal counsel for then-Sen. Joe Biden and was appointed by President Obama to lead the Office of Legislative Affairs for the Department of Homeland Security.

Peacock said his priorities as CEO will be to develop strategic communications to help tell the region's story, to expand relations between the local governments and the council and to "foster" the innovation culture of northwest Arkansas.

"There’s a lot of positive energy," Peacock said. "This is a unique opportunity."

Peacock said the region is an attractive place to work because the cities of the area have a desire to work together, as do the various companies.

"There is a common purpose," Peacock said.

Winging it is no way to run your business. You've got too much at stake. Even a small change in your cash flow can cost you tens of thousands. Proper business planning is an essential tool for successful businesses.

This is the first of a three-part series on successful business planning and is a primer on how to prepare your organization to respond effectively when things change. The discussion will cover how to align your team to reach new goals and to realize the potential for your organization.

First in the series will be a look at the need for budgeting, forecasting, and planning. Then will come a discussion of three principles around which to to build your business, and finally how to implement your planning in the real world

Imagine you are a pilot flying a plane over mountains at night. Without your instrumentation you are toast. Now imagine trying to drive a car down the road by only looking out the rear view mirror.

Driving a business without budgeting and planning is about as effective. But a surprising percentage of CEOs is operating without any form of budgeting, forecasting or planning. Worse, they have some kind of budget based on what happened last year or on fabricated hopes and dreams. Neither is very useful.

The collective experiences of numerous CEOs of mostly small to medium-sized businesses proves that the financials of a company, over time, tell a story. Along with background information about the business provided by the CEO, this offers a solid understanding of how the business has responded to change.

All businesses are exposed to changes in the economic and competitive landscape. The years have revealed something very powerful that separates businesses that have thrived from those that have struggled or failed.

Thriving businesses are those that respond quickly and effectively to change. The ones that struggled were the ones slow to react. They may have ended up doing the right thing, but the delay is what did the damage.

The damage of reacting slowly to change accumulates over time, resulting in hundreds of thousands of dollars in lost profits. It's hard to quantify because no one ever takes the time to go back and look at what might have been.

Budgeting, forecasting and business planning is not about looking into a crystal ball and predicting the future. It's about a process of understanding your business, injecting that understanding into your organization, developing goals that are aggressive yet achievable, building the capacity to achieve those goals and the agility to adapt quickly when things change.

This sounds complicated, but it doesn't have to be. Experience shows that most business owners have at least an intuitive understanding of these things.

The next column will feature an examination of three principles to start effective planning for your business.

Allen Engstrom is Managing Director of CFO Network (www.cfonet.biz), specializing in providing outsourced accounting, consulting and business planning services to small and medium businesses of all types, locally and nationwide. He can be reached at 501-823-2363 or aengstrom@cfonet.biz.

WASHINGTON — Credit card holders will soon pay more. So will people with adjustable-rate mortgages or home equity lines of credit.

But most would-be home buyers needn't worry. And auto loan rates won't likely change much. For savers? Rates should creep up, at least for the highest-yielding CDs and saving accounts, though on average they'll still pay a pittance.

The cumulative impact of another Federal Reserve interest rate hike — its fourth in 18 months — will range widely for individuals and businesses with loans or income-producing accounts.

And the consequences range beyond U.S. shores. A series of Fed hikes generally means that overseas investors in search of interest income can increase their returns by shifting money into the United States. Higher U.S. rates also tend to cause an outflow of capital from developing countries that can ill-afford it.

The most immediate effects, though, are generally on borrowers in the United States. When the Fed lifts the short-term rate it controls by one-quarter of a percentage point, as it did Wednesday, it typically translates into a quarter-point rate increase for credit card debt and home equity lines, as well as for some adjustable mortgages.

Fed policymakers have raised their benchmark rate to a range of 1 percent to 1.25 percent and indicated that they foresee one additional hike this year, assuming that the economy remains on solid footing.

For someone with a $5,000 credit card balance who makes a minimum payment each month, the Fed's four rate increases since December 2015 equal an additional $700 in payments over the life of the loan, according to Greg McBride, chief financial analyst at Bankrate.com.

"That's where consumers are feeling it and are going to continue to feel it," McBride said.

But home and auto loan rates are another story: Despite the Fed's moves, they've barely budged since December 2015, when the central bank announced its first increase after seven years of near-zero rates.

Here are some questions and answers on what the Fed's moves could mean for consumers, businesses, investors and the economy:

Q. Why haven't mortgage rates increased?

A. Because fixed-rate mortgage rates don't typically follow the Fed's changes. Sometimes they even move in the opposite direction. So it doesn't necessarily make sense to rush into buying a home or refinancing a mortgage. The hike often won't translate into higher mortgage rates.

Fixed long-term mortgages tend to track the rate on the 10-year Treasury, which, in turn, is influenced by such factors as investors' expectations of future inflation to global demand for U.S. Treasurys.

In December 2015, a week before the first increase, the average 30-year fixed mortgage rate was 4.06 percent, according to Bankrate.com. It actually fell for most of 2016, then jumped later in the year and peaked at 4.44 percent in mid-March this year.

But since then, long-term mortgage rates have declined and are back to almost exactly where they began: The 30-year averaged 4.04 percent last week.

Even the increase that began in late 2016 had little to do with the Fed. Rather, investors dumped Treasurys and bought stocks in anticipation of faster growth and higher inflation after Donald Trump's election. Better growth overseas also raised optimism.

But as Trump's tax and infrastructure spending proposals have stalled, investors' outlooks have dimmed. Demand for the 10-year Treasury has risen, and so its yield has dropped, reducing mortgage rates with it.

Other factors can also keep rates low. When global investors grow nervous, they often pour money into Treasurys because they're seen as ultra-safe. That buying pressure holds down Treasury rates.

Q. So where will home loan rates go from here?

A. Hard to tell. The Fed expects to lift its benchmark rate one more time this year and three times in 2018. Eventually, those increases should put upward pressure on mortgage rates, but it's impossible to say when.

Mortgage rates are still very low by historical standards. Before the Great Recession, the 30-year rate had never dipped below 5 percent.

Q. How could the Fed's actions affect other countries around the world?

A. Higher rates in the United States tend to attract more investment from overseas. The European Central Bank and the Bank of Japan are still keeping their benchmark rates near zero to try to stimulate those economies. So investors can earn more by investing in dollar-denominated assets.

That inflow pushes up the value of the dollar, which can make U.S. exports costlier overseas. It can also pull money out of developing countries, where rates are usually higher but government bonds carry more risk. A flow of funds out of developing nations can lower their currencies relative to the dollar, making it harder for businesses in those nations to repay debts they have incurred in dollars.

Q. My credit rating isn't so great. How will I be affected?

A. Doug Amis, a certified financial planner in Cary, North Carolina, says consumers with less-than-sterling credit can expect to pay more, especially when financing the purchase of a used car.

"There's going to be an opportunity to increase those rates higher," Amis said. "So if you have poor credit, this is going to impact you."

Still, even with another rate hike, the impact on consumers and businesses is likely to remain mild, as rates remain very low, relative to years ago, Amis noted.

Q. Have the Fed's moves boosted the puny rates available for savers?

A. In a few cases, yes. McBride says some smaller banks are starting to offer higher rates on CDs and savings accounts than larger banks are. The huge national banks already have "more deposits than they know what to do with," McBride said, so haven't lifted their rates at all.

As a result, the disparity between the smaller local banks and nationwide institutions is widening, he said: "Exploit that difference. It's money in your pocket."

So far, the average rate on a one-year CD has barely risen since the Fed's rate hikes began, inching up from 0.27 percent in December 2015 to 0.35 percent now, according to Bankrate.com. But the highest-yielding CDs have risen from 1.35 percent to 1.5 percent.

Q. What if I'm a retiree invested in bonds?

A. Amis says he tells his fixed-income clients not to stress out over another rate hike.

"This is part of investing in fixed income, and it's not a signal to jump ship and go into dividend-paying equities," he said. "I would recommend they stay the course and earn the coupon."

Since rates began rising again, Amis has been advising retirees and others with fixed-income investments like bonds to ensure that their portfolios are balanced between very short-term and long-term bonds. Longer-term bonds typically pay higher rates, and as rates rise, the short-term securities will be replaced with higher-yielding ones.

James T. Ferstl of Little Rock has been named to the Real Estate Industry Council of the Federal Reserve Bank of St. Louis, the bank announced Thursday.

Ferstl is the president of Ferstl Valuation Services in Little Rock, a real estate valuation and consulting firm.

The St. Louis Fed created four District Industry Councils in 2006, each designed to provide feedback regarding economic conditions within an Eighth District industry sector. The members' observations, along with economic data and information developed through the Beige Book and meetings of the Reserve Bank's boards of directors, help inform monetary policy deliberations in Washington.

Each council is supported by one of four of the Reserve Bank's offices: St. Louis (real estate); Little Rock (agribusiness); Louisville, Ky. (health care); and Memphis, Tenn. (transportation). The councils meet twice a year.

Sales of luxury homes in Pulaski County jumped in 2016 to a number not seen since Arkansas Business began tracking them in 2004.

Last year, 29 homes sold for $1 million or more, up from 20 in 2015.

Arkansas Business has been keeping statistics on high-end sales since 2004, when 29 million-dollar homes were sold. Sales hit a low of 13 in 2012.

This year, strong sales should continue, Jon Underhill predicted in an email to Arkansas Business last week. Underhill sells upscale home through his agency, Jon Underhill Real Estate of Little Rock. “The economy and the stock market are both doing well, and that bodes well for real estate,” Underhill said.

Since January 2017, 11 seven-figure homes have sold in the county and five more are under contract, he said.

Underhill also said more high-quality luxury homes were for sale in 2016, which contributed to increased sales. “Inventory had been low on quality homes in good locations,” Underhill said. “Many of the homes that sold had never been offered for sale.”

Homebuyers’ ideas of a dream home change annually. Few are asking for dedicated theater and wine rooms these days.

The current trends are open floor plans with comfortable living areas and designer kitchens, Underhill said. Buyers want master bedrooms and one guest room on the main level, outdoor areas, a pool and four-car-plus garage. Smart homes are a must, and buyers aren’t “willing to pay for last year’s technology,” he said.

As of last week, 44 homes in the county were listed for sale with asking prices of $1 million or more. Underhill said that he has a list of at least nine other homes that the owners would be interested in selling but that aren’t on the active market.

For those who wonder who bought these exclusive homes in Pulaski County, Arkansas Business, using interviews, public real estate records and other documents, has provided a brief description of the homes and the buyers.

$2.67 Million

Buyer: Mace Properties LLC, led by Harry Erwin III
Seller: Wendy and Stephen LaFrance Jr.
Neighborhood: Edgehill, Little Rock
Date: Sept. 1
Year Built: 1929
SF: 6,844

Harry “Chuck” Erwin III bought this home that, real estate website Zillow said, features open entertaining spaces and a chef’s kitchen. Zillow touts the Edgehill manor’s “fabulous open entertaining spaces,” and the backyard highlights include a pool and gardens. Erwin founded the certified public accountants’ firm Erwin & Co. in Little Rock in 1984. He graduated from the University of Texas and started his career in 1979, according to his company’s website. He supports the Arkansas Arts Center and Arkansas Symphony Orchestra. Erwin has served on the board of trustees of Arkansas Children’s Hospital since 1990.

$2.5 Million

Buyer: Scenic LLC, led by John Stephens
Seller: Demp and Paula Dempsey
Neighborhood: Scenic Heights, Little Rock
Date: April 1
Year Built: 1981
SF: 6,823

This home features a detached three-car garage and “chiseled Terrazzo floors throughout,” according to Zillow. The house also has three fireplaces and doors that open to decks with canyon creek views, Zillow said. Scenic LLC, led by John Stephens, bought the $2.5 million house on April 1, 2016. John Stephens’ father is Warren Stephens, the president and CEO of Stephens Inc. of Little Rock, one of the country’s top investment banks. Last year, Forbes listed Warren Stephens as one of the richest people in America with a net worth of $2.4 billion.

$2.2 Million

Buyer: NPS Holdings LLC, led by Jeffrey and Cara Nolan
Seller: Estate of Kula Kumpuris
Neighborhood: Country Club Heights, Little Rock
Date: Aug. 17

NPS Holdings LLC, led by Jeffrey and Cara Nolan, bought a $2.2 million house to tear it down. On Dec. 22, residential homebuilder Fred Lord Builder Inc. of Little Rock took out a building permit for the new home project valued at $1.65 million. The work was financed by a two-year loan of $2.1 million from BancorpSouth Bank of Tupelo, Mississippi. Jeffrey Nolan is president and CEO of the land and timber management firm Loutre Land & Timber Co. of El Dorado. Since 2012, he has served on the board of directors of Murphy Oil Corp. of El Dorado. As a Murphy Oil director, his compensation for 2016 was $265,000.

$1.8 Million

Buyer: Donald and Lucinda Phelps
Seller: John and Amber Meadors
Neighborhood: Edgehill, Little Rock
Date: May 26
Year Built: 1937
SF: 4,667

Donald and Lucinda Phelps bought this home that, according to Zillow, features vaulted brick ceilings and floor-to-ceiling arched windows that overlook a pool and “immaculate grounds.” A guest cottage also is on the property. Don Phelps is the CEO of Phelps Fan LLC of Little Rock, which was founded in 1915 and is one of Arkansas’ oldest companies. He is the fifth generation of the Phelps family to run the company, which manufactures industrial fans. “From routine industrial needs to the demands of nuclear age requirements, Phelps Fan’s commitment to innovation and technology meet the needs of today while positioning itself to meet those of the next century,” the company’s website said.

$1.79 Million

Buyer: Jill and Edward Penick III
Seller: Marilynn and Robert Porter Jr.
Neighborhood: Country Club of Little Rock
Date: Sept. 30
Year Built: 2011
SF: 5,076

Jill and Dr. Edward Penick III bought this estate that, Zillow said, includes a three-car 868-SF garage. Edward Penick III practices at Central Arkansas Ophthalmology in Little Rock. The Little Rock native received his bachelor’s degree in biology from Davidson College in North Carolina and his medical degree from the University of Arkansas for Medical Sciences, according to Central Arkansas Ophthalmology’s website. He completed his ophthalmology residency at the University of Missouri-Kansas City. He specializes in Lasik and cataract surgery and sees patients for medical and eye exams, the website said.

$1.7 Million

Buyer: WVM LLC, led by Rush Harding
Seller: Maxie and Patricia Bobbitt
Neighborhood: Hickory Pointe, Little Rock
Date: April 15
Year Built: 2007
SF: 6,327

Rush Harding bought this home, featuring three bedrooms, three full bathrooms and two half-baths, because of the privacy. It has a permanent green space that surrounds three sides of the home, Harding said in an email to Arkansas Business. “I have a large, spacious office and my wife has a quiet nook to work on her photography and other projects,” he said. Harding said his wife, Linda, likes to work in the yard. “She has created a magical setting with plants and landscaping,” he said. Rush Harding is CEO of Crews & Associates in Little Rock, an investment banking firm created in 1979. He also is the CEO of Crews’ subsidiary, First Security Finance.

$1.57 Million

Buyer: Rodney and Michelle Damon
Seller: CNC Family Trust, led by Christopher and Claire Pittman
Neighborhood: Sologne Circle, Little Rock
Date: May 12
Year Built: 2008
SF: 10,810

Rodney Damon said the house on Sologne Circle was too good a deal to pass up.
The home cost $2.8 million to build in 2008, said Damon, who splits his time between Florida and Little Rock. “I bought it as an investment,” he said. “Hopefully, I can retire at some point and make some money off of it.” The estate in the gated community has five bedrooms and eight bathrooms. The brick house is “well-built,” he said. “It has all the amenities of any luxury home that you would see,” he said. Damon is a senior vice president at BOKF, which does business as Bank of Oklahoma and Bank of Arkansas.

$1.4 Million
Buyer: Terri and David Snowden Jr.
Seller: Judith and David Snowden Sr.
Neighborhood: West Little Rock
Date: June 1
Year Built: 1999
SF: 5,494

The house that Terri and David Snowden Jr. bought for $1.4 million was part of a family residential deal. They swapped their 6,272-SF home near the Country Club of Little Rock for Judith and David Snowden Sr.’s estate on 20 acres in west Little Rock. David Snowden Jr. is vice chairman at Tarco Inc. of Little Rock, which manufactures roofing products and has plants in Arkansas, Texas and Pennsylvania. Both Snowden Sr. and Snowden Jr. are members of the Arkansas Outdoor Hall of Fame and have been involved with the Arkansas Nature Conservancy since it began in the 1970s, according to the website of the Arkansas Game & Fish Foundation, which sponsors the Hall of Fame.

$1.4 Million

Buyer: Celia-Anne Martindale
Seller: George and Deborah Makris
Neighborhood: Country Club Heights, Little Rock
Date: Jan. 15
Year Built: 1998
SF: 5,986

Celia-Anne “CeCe” Martindale bought this home just a block from the Country Club of Little Rock. The house features a “large family room open to gourmet kitchen with every amenity,” according to Zillow. It also has a private covered terrace that overlooks a landscaped oversized lot, the website said. Martindale’s husband, Howard, is a co-director of information technology at Fourjay LLC of North Little Rock, a franchise of Wendy’s International Inc. Founded in 1975, Fourjay now has 49 stores with more than 1,400 employees, according to the company’s website. In August, Franchise Times, a trade jounal, estimated Fourjay’s annual revenue at between $60 million and $70 million.

$1.35 Million

Buyer: Duane and Angela Birky
Seller: Lee Bodenhamer Trust
Neighborhood: Overlook, Little Rock
Date: Dec. 2
Year Built: 2009
SF: 6,385

Angela and Dr. Duane Birky bought this four-bedroom, six bathroom home that overlooks the Arkansas River and the Big Dam Bridge. It also has “expansive decks off the rear of the house,” multiple fireplaces and floor-to-ceiling windows, Zillow said. Dr. Birky specializes in neurology and works at the Baptist Health Specialty Clinic in North Little Rock. He received his license to practice medicine in Arkansas in 1999.

$1.35 Million

Buyer: Karen E. Flake Revocable Trust
Seller: Chuck Hamilton Construction Inc.
Neighborhood: Country Club Heights, Little Rock
Date: Oct. 11
Year Built: 2010
SF: 5,091

Karen Flake bought the 5,091-SF home because she wanted the extra family space for her six grandchildren. The four-bedroom home is “probably more than we would need,” but Flake and her husband, John, frequently keep their grandchildren, she said. The split-level home has three bedrooms on the first floor and the master bedroom on the second. Karen Flake is president and CEO of Mount St. Mary Academy in Little Rock. John Flake is chairman of the commercial real estate company Flake & Kelley Commercial of Little Rock.

The number of seven-figure homes sold in Washington and Benton counties almost tripled in 2016 compared with the previous year.

Twenty-seven homes in the two counties sold for $1 million or more in 2016. In 2015, only 10 homes sold at or above that price point, while 18 homes reached or surpassed the $1 million threshold in 2014.

Brandon Long, owner and broker at Weichert Realtors-The Griffin Co. in Springdale, said inventory of high-priced homes turned over much quicker in 2016 — and so far in 2017 — than it had in recent years.

“I think one of the reasons is there are more buyers for the homes,” Long said. “The absorption rate has gone down quite a bit. The reason for that is not less inventory but just more buyers. That is what the trend was saying for sure.”

Long said there used to be about 10 buyers every month looking at and buying homes priced at $500,000 or more in northwest Arkansas. Now that number has doubled.

This week, we take a look at the 10 most expensive residential sales in the two-county region. The top home on the list is one of the most expensive in recent memory. While the most expensive home in 2015 sold for $1.4 million, 2016 saw Walton Enterprises pay $5.3 million for a 4,366-SF home on Old Whayne Road in Bentonville.

The home has sentimental value; it was the residence of Ferold Arend, the first president of Wal-Mart Stores Inc. and close associate of neighbor Sam Walton. The seller was Arend LLC, led by Arend’s daughter, Debi Havner.

A $1.75 million residential sale from last August has been omitted from the list. That’s because the 3,031-SF home and acreage on SW I Street in Bentonville that Orchard Properties of Fayetteville (through its SullivanSquareBentonville LLC) bought from Real Church Inc. has already been razed to make room for a 474-unit apartment complex.

Eighteen of the 27 seven-figure homes sold last year were in Benton County, with Pinnacle Country Club being a popular neighborhood. Four of the 10 most expensive homes are there.

“There are a lot of things going on in Centerton and in Rogers and in Pinnacle,” Long said. “Benton County is for sure leading the way as far as those million-dollar homes. The million-dollar properties are still pretty unique. I would still say that someone has to be in the market for that property.”

Long said homes in all price ranges are selling much faster than in recent years.

“With the economy doing as well as it is doing, everybody has a little more money anyway,” Long said.

$5.3 Million

Buyer: STJ Holdings LLC
Seller: Arend LLC, led by Debi Havner
Location: Old Whayne Road, Bentonville
Date: April 12
Year Built: 1968
SF: 4,366

STJ Holdings is a subsidiary of Walton Enterprises LLC, a commercial and residential property management company run by the Walton family. The home, which includes a 1,050-SF basement, is the former residence of the late Ferold Arend, the first president of Wal-Mart Stores Inc. and longtime member of the company’s board of directors. The home sits on 3½ acres and is close to Crystal Bridges Museum of American Art and downtown Bentonville.

$1.81 Million

Buyer: Karisa N. Sprague
Seller: Michael E. and Sherri K. Long
Location: West Pinnacle Drive, Rogers
Date: July 29
Year Built: 2013
SF: 6,697

Karisa Sprague is a senior vice president for Wal-Mart Stores Inc. of Bentonville, for whom she runs the North Central Division of its store operations. The residence is in the gated community of Pinnacle Country Club and has five bedrooms and seven bathrooms. It also features a heated pool, a cabana and an outdoor kitchen.

$1.66 Million

Buyer: Rickie Lynn and Dianna Lynn Ellis
Seller: Wilson Trust
Location: Pine Log Road, Garfield
Date: Sept. 12
Year Built: 2010
SF: 7,189

Rick Ellis is the owner and president of Mid-River Terminal of Osceola, a harbor service company on the Mississippi River. The home overlooks Beaver Lake and sits on 3 acres. It has four bedrooms and five bathrooms and a four-boat private dock. The property also features a two-level garage with space for eight vehicles, a heated storage area in the basement and two outdoor fireplaces.

$1.59 Million

Buyer: Monica Houle and Thomas McGurk
Seller: William A. and Cheryl Lester III
Location: Prestwick North Circle, Fayetteville
Date: June 30
Year Built: 2005
SF: 6,376

Monica McGurk is chief growth officer at Tyson Foods of Springdale, and Tom McGurk is an executive with the consulting firm BluWave. The home sits on 1 acre and has a pool, a four-car garage and 5½ bathrooms. It is adjacent to Blessings Golf Course, the private course founded by former Tyson CEO and current Chairman John Tyson.

$1.51 Million

Buyer: Bradley Scott and Alexis Lynn Smith
Seller: Smith Family Living Trust, led by Ryan Taylor and Catherine Rae Smith
Location: South Sechrest Circle, Rogers
Date: July 5
Year Built: 2004
SF: 8,983

This home sits on the golf course at Pinnacle Country Club, a gated community in Rogers. The home has five bedrooms, 5½ bathrooms and a 4,000-SF basement. It also has a three-car garage.

$1.47 Million

Buyer: David R. and Beverly A. Lamp
Seller: Lessley Joint Trust, led by Bill Lessly
Location: Rocky Ridge Road, Bentonville
Date: June 30
Year Built: 1997
SF: 6,844

Randy Lamp is the CEO of Apprentice Information Systems of Rogers. The property features a seven-bedroom, 5½-bathroom home on 24 acres. The home has a saltwater pool, horse barn and four-car garage.

$1.4 Million

Buyer: Samuel M. and Kelly A. Rothschild
Seller: Derek L. Collison
Location: Churchill Downs Drive, Springdale
Date: Dec. 15
Year Built: 2005
SF: 12,230

Sam Rothschild is the COO of the restaurant chain Slim Chickens of Fayetteville. The home has seven bedrooms, nine bathrooms and a two-story library. It also has a wine cellar and a large pool with three waterfalls and a swim-up bar.

$1.39 Million

Buyer: Tracy L. and Kevin O. Mitchell
Seller: Ismat Aziz
Location: West Pinnacle Drive, Rogers
Date: Aug. 12
Year Built: 2012
SF: 5,168

Ismat Aziz was the chief human resources officer at Sam’s Club before being hired by Sprint in July 2016 to be its senior vice president of human resources. No information about the Mitchells was available. The home has seven bedrooms, 7½ bathrooms and a 1,674-SF guest house. It also features a saltwater pool.

$1.3 Million

Buyer: Louis A. and Jennifer J. Martin
Seller: Kalpesh H. & Gina M. Patel
Location: Plymouth Lane, Rogers
Date: July 17
Year Built: 2011
SF: 5,310

Louis Martin is the president of the Coca-Cola Co.’s customer relations team for Global Wal-Mart and Sam’s Club. The home has five bedrooms, six bathrooms and a wine room. It also has a pool with a connected hot tub and a swim-up bar, a four-car garage and media and exercise rooms. It is located in the gated community of Pinnacle Country Club.

$1.3 Million

Buyer: James R. and Jacqui E. Lefler
Seller: Shelby P. Field Trust
Location: East Township Street, Fayetteville
Date: Aug. 16
Year Built: 2005
SF: 5,713

James Lefler is an executive with Dragonfly Industries International of Frisco, Texas — the company that unsuccessfully attempted to put a wind farm in Elm Springs in 2015 — and Jacqui Lefler is vice president of Heartland Payment Solutions of Fayetteville. This home made the 2015 Expensive Homes list after Shelby Field bought it in June 2014 for $1.5 million before transferring it to the trust. The home has four bedrooms, 3½ bathrooms, a wine cellar and a media room. There is a pool with a guest house, and the 3-acre property is bordered by a creek.

The main creditor in the Chapter 11 bankruptcy reorganization involving the 30-story Regions Center in downtown Little Rock has accused the building’s owners of dragging their feet.

The owners’ bankruptcy has been pending for six months, yet “Debtors have made no progress toward a reorganization,” Wells Fargo Bank, a trustee for a pool of investors who made the loan to the building owners in 2006 to buy the property, said in a recent bankruptcy filing.

(The investors have a massive legal name: the Registered Holders of COMM 2006-C8 Commercial Mortgage Pass-Through Certificates.)

The 32 LLCs with an ownership interest in the 547,000-SF building have asked a U.S. Bankruptcy Court judge in Delaware for more time to file their plan of reorganization. Wells Fargo, though, wants the request denied. Or if it is approved, the time frame should be short, Wells Fargo said.

The reorganization plan was due on April 8, but at the end of March, the owners asked for an extension until July 7.

The owners said they were “proceeding in good faith in negotiating a process for reorganizing,” according to the March 31 filing.

The owners said in the filing that they were in talks “with numerous replacement lenders and anticipate being able to file a plan of reorganization in the very near future which provides for a 100 percent recovery to all of the Debtors creditors, including unsecured creditors,” the owners said.

Wells Fargo said the creditors won’t take “anything less than the full amount owed under” the loan documents.

Last year, the 32 LLCs with an ownership interest in the building allegedly defaulted on the $32 million loan used to buy the property. The owners owed $29.6 million, according to Wells Fargo.

In December, the owners filed for Chapter 11. The total debt is listed at $30.4 million, according to bankruptcy documents. The building, the owners said, is appraised at $40.5 million.

A judge hasn’t ruled on the request for an extension to file the reorganization plan.

The Regions Center reported revenue of $1.55 million for the first three months of the year and a net income of $360,000, according to the latest operating report filed in April.

The top 10 residential real estate agencies in Arkansas didn’t change in 2016, but there was some shuffling of position as eight of the 10 reported higher sales volume than in 2015.

Memphis-based Crye-Leike Realtors, the perennial No. 1, retained the top spot with sales of $1.26 billion last year — up almost 4 percent. But the No. 2 firm was not as distant as in past years: By adding 125 licensed agents, Keller Williams Market Pro Realty of Fayetteville upped its sales volume by nearly half to overtake crosstown rival Coldwell Banker Harris McHaney & Faucette.

KW Market Pro was also helped along by having the top-selling individual agent in the state: Nicky Dou. She posted $48.81 million last year.

KW Market Pro also boasted the No. 3 selling team, Joseph Hayes & Associates, with volume of $42.5 million. Team sales are in a separate list led by the Limbird Team of Limbird Real Estate Group of Rogers, with $113.65 million, and the Eric Burch Team of Burch & Co. in Jonesboro, with almost $53 million.

At this point it’s important to explain real estate mathematics. The industry double-counts the sale of a house in recognition that the buyer and seller are often represented by different agents and companies.

The doubling reflects a system that rightfully acknowledges two sides to every transaction. However, instead of dividing the sales price of a property between the buyer’s agent/company and the sale’s agent/company to determine sales volume, both agents and companies get credit for the entire amount. The real-world dollar total of houses sold is more like half the sales volume reported by companies and agents.

Growth by the biggest agencies is reflected in the fact that the 10 largest claimed volume of $4.87 billion in 2016, up some 18 percent from the year before.

The top 40 listed this week reported total sales volume of $6.47 billion. That’s an increase of almost 15 percent from 2015. The No. 40 position belongs, for the second year in a row, to Weichert Realtors-Downum Group of Springdale, with sales volume just shy of $49 million in 2016, up almost 12 percent from the previous year.

Mergers and acquisitions were variables in play with this year’s lineup of residential real estate agencies. In Jonesboro, ERA Doty Real Estate, No. 20 on this week’s list with sales volume of $100 million, acquired Fred Dacus Associates in June 2016.

Fred Dacus Associates ranked No. 26 on last year’s list of the state’s top residential real estate agencies, with 2015 sales of almost $70 million. The company had 29 licensed agents — 11 of whom were $2 million-plus producers last year.

Linda Roster White Real Estate of Conway merged in August with Little Rock’s Coldwell Banker RPM Group, which landed at No. 6 this year. The combination expanded RPM’s central Arkansas footprint into Faulkner County.

If at first you don’t succeed in federal court, take your case to state court. That’s what the former chairman and one-time largest shareholder of Mountain View’s Stone Bank has done in Pulaski County Circuit Court.

James Barnes is once again seeking more than $4 million in damages, claiming he was pushed out of the bank that he helped launch seven years ago and was forced to sell his stake in the bank at below-market pricing.

The defendants remain the same: J.T. Compton, his son, Kevin, and David Dunlap, all bank directors; Marnie Oldner, CEO of Stone Bank; Nick Roach, president of the bank; and Stone Bancshares Inc., parent company of the $181 million-asset lender.

The two sides don’t agree on much, but they do agree that the substance of the complaints and claims is virtually identical in both cases.

“As far as we can tell, there is no difference,” said Kirby Williams, executive vice president with Stone Bank. “His case was denied in federal court, and now he’s refiled in state court.”

Barnes resigned from the bank’s board of directors on Oct. 18, 2013, and 17 months later signed a consent order with the Office of the Comptroller of the Currency that prohibits his participation in banking.

Added juice to the litigation: Stone Bank holds more than $672,000 of debt connected with the bankruptcy petition of Barnes.

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