A new lawsuit has arisen from the financial meltdown of Acme Holding Co., parent company of the $98.6 million-asset Allied Bank of Mulberry (Crawford County).

The suit seeks $178,082 each from two trusts established for the benefit of the children of Alex Golden, CEO of Allied Bank, and his sister, Amy McCay, who left the bank as vice president in 2013 amid regulatory scrutiny over her duties and her salary.

Also named in the lawsuit is their father: Lex Golden, chairman and CEO of Acme, now in the final stages of Chapter 7 liquidation. Lex Golden personally guaranteed the notes held by the plaintiff, the John S. Hunter IRA.

We’re told Hunter is a former president and director of Allied Bank.

The Crawford County Circuit Court suit also names Alex Golden and Amy McCay as defendants in their roles as trustees of their respective children’s trusts.

The debts are tied to a pair of $187,454.74 promissory notes dated Dec. 27, 2011.

We understand the combined debt reflects money owed to Hunter for selling his ownership stake in Acme to the trusts. The two promissory notes were due in full last December.

At last count, the trusts each held a 1.64 percent stake in Acme.

The U.S. Marshals Museum of Fort Smith, the family of the late Samuel M. Sicard and First Bank Corp. of Fort Smith announced Monday a $2 million donation to the museum.

The money will fund the Samuel M. Sicard Hall of Honor, a permanent exhibit of the U.S. Marshals Museum that acknowledges the more than 250 Marshals who have died in the line of duty.

Sicard, an influential banker and Fort Smith community leader, died in 2011. His company, First Bank Corp., controls First National Bank of Fort Smith.

In March, First Bank Corp. pledged $1 million to match contributions made by the late Sicard’s family and friends for the Hall of Honor.

"It is humbling to witness the numerous donations that are being made from the friends and family of my father to the Samuel M. Sicard Hall of Honor," said Samuel T. Sicard, son of Samuel M. Sicard and board member of the U.S. Marshals Museum. 

"My father had a true passion for the U.S. Marshals Museum and also had a profound love for his friends, family and for our community," he said. "I am deeply grateful for every gift that was made in his memory and in the memory of all those marshals who sacrificed their lives to carry out justice."

Jim Dunn, president and CEO of the U.S. Marshals Museum, said the elder Sicard "strongly believed in and supported" the museum.

"I know he would be proud to recognize all the U.S. Marshals and their families who have sacrificed so much for our nation," Dunn said.

The $50 million, 50,000-SF U.S. Marshals Museum broke ground a year ago. It will sit on the banks of the Arkansas River near downtown Fort Smith. The design for the museum is by Polk Stanley Wilcox Architects of Little Rock and Cambridge Seven Associates of Cambridge, Mass.

Arkansans' opinions about the economy have fallen since March, bringing a key consumer sentiment measure more in line with national attitudes, according to a new report sponsored by Arvest Bank.

The Fall 2015 Arvest Consumer Sentiment Survey put the state's consumer sentiment index at 77.8 in September, down from 79.1 in March. Despite the six-month decline, the September number remains higher than previous surveys in October 2014 (68.1) and June 2014 (67.4).

The survey is based on methodology used by the University of Michigan's national Index of Consumer Sentiment. It's based on five questions that evaluate consumer perceptions of their current and future finances and business conditions; plans to purchase major household items; level of debt; savings; and demographic information.

More: Get an executive summary of the survey (PDF).

The September number brings Arkansas closer in line with the national consumer sentiment index of 87.2. But researchers point out that the 9.4-point difference between the state and national indexes is half of what is was in October last year.

Kathy Deck, director of the Center for Business and Economic Research at Sam M. Walton School of Business at the University of Arkansas at Fayetteville, is the study's lead researcher. She said the survey's September results are at odds with improving statewide economic conditions.

"Arkansas remain far more negative in their perceptions of economic conditions than their regional and national counterparts," Deck said in a news release. "Moreover, the decline in sentiment since the March reading was broad-based, occurring for both families with incomes above and below $75,000. In short, good local macroeconomic news does not seem to be positively affecting individual perceptions about their own situations."

Deck is expected to discuss the results of the survey at an Arvest economic forum Tuesday morning in North Little Rock. Marc Fusaro, an associate professor of economics at Arkansas Tech University in Russellville, is also scheduled to discuss results from ATU's business index. 

Arvest conducts the consumer sentiment survey in three states where it has a banking presence: Arkansas, Missouri and Oklahoma. Deck noted that Arkansas was the only state among the three whose sentiment index dropped. Missouri and Oklahoma both reported increases: from 85.2 to 85.8 in Missouri and 84.8 to 85.0 in Oklahoma.

John Womack, president of Arvest Bank in Little Rock, said that despite the six-month decline, sentiment remains higher than last year, and that's reflected in the banking activity he's observed.

"We’ve seen an increase in mortgage loans used to purchase homes, we’re seeing increased activity in new credit card accounts and we’ve had a good year for consumer loans," Womack said. "Overall I would say that while this report shows a slight decline in consumer confidence from March, it’s still a vast improvement from the confidence we saw last year."

CBER researchers work with the University of Oklahoma’s Public Opinion Learning Laboratory to conduct 1,200 random phone interviews for the survey. The CBER, Missouri State University and Oklahoma City University provide state data analysis. The survey is conducted twice a year, with the next survey expected to conclude in March.

Construction employment is continuing to grow, although economists fear it will drop off in 2016, and consumers are putting money saved from low gas prices into savings rather than using it on retail spending.

Those were among the takeaways from a Tuesday morning economic forum held by Arvest Bank in North Little Rock.

Kathy Deck, director of the Center for Business and Economic Research in the Sam M. Walton College of Business at the University of Arkansas, and Marc Fusaro, associate professor of economics at Arkansas Tech University, shared analysis and observations about the local and national economy.

According to Deck, home, highway and business construction have been strong in Arkansas. But Fusaro said construction permits have declined drastically in 2015, indicating a sizable drop in construction to come in 2016.

"There has been a slow-down in construction permits, which are a leading indicator for the future," Fusaro said. "I'm worried about 2016 and employment in the industry. Overall, there's a lot of good news, but the construction permits worry me."

Deck said that, overall, U.S. economic growth has not been exciting. She said while gross domestic product has shown slow but steady recovery, income growth has been muted.

She said that without income growth, consumers are less likely to put money back into the economy through retail spending.

Deck said she had also expected to see retail spending more affected by steadily dropping gasoline prices.

"I expected those savings from gasoline purchases to go back into the economy as other purchases," Deck said. "We lost those gas sales and they haven’t gone in as other spending …The good news is that consumers are paying off debt, but we don't get the contemporaneous economic boost."

Deck is the lead researcher for the Arvest Consumer Sentiment Survey, the latest of which was released Tuesday morning. She said the report shows the younger age bracket feeling more positive about the economy, which is a good sign.

"Our reactions to both recessions and expansions are more muted (in Arkansas)," Deck said. "We need people to be feeling confident."

She also said the labor force is growing and unemployment is falling in the state.

According to Fusaro, northwest Arkansas consistently shows the best results in his regular survey, the Arkansas Tech Business Index. The index, designed by Fusaro, examines a city's labor, housing, construction and retail markets to measure growth.

Fusaro said that in central Arkansas, Little Rock is "struggling" while Hot Springs and Conway show better results. He said in Hot Springs, there is a lot of residential construction but little business construction, while Little Rock shows the opposite trend. 

Gena Wingfield, CFO of Arkansas Children's Hospital in Little Rock, and Bob Roberts, CFO at Baptist Health in Little Rock, were honored with lifetime achievement awards at the Arkansas Business CFO of the Year luncheon on Wednesday.

Wingfield, the CFO Lifetime Achievement Award winner, became CFO at ACH in 1998 after working there since 1985. Roberts, the Lifetime Achievement in Accounting Award winner, has been CFO at Baptist Health since 2008 after working there since 1988.

The awards are part of an annual event produced by Arkansas Business that honors lifetime achievements and chief financial officers in several categories. 

Each of the honorees was chosen by an independent panel of judges. This year’s judges were Mary Beth Brooks, president and CEO of the Bank of Fayetteville; Bill Holmes, president and CEO of the Arkansas Bankers Association; and Gene Whisenhunt of Hickingbotham Investments Inc.

The event's other honorees were:

Marnie Oldner, named Bank CFO of the Year. Oldner is the CEO and CFO of Stone Bank in Mountain View.

John Rogers, named Small Private Company CFO of the Year. Rogers is CFO and treasurer of Stone Ward in Little Rock. 

David Brogdon, named Large Private Company CFO of the Year. Brogdon is CFO of Bad Boy Mowers in Batesville. 

Tracy Cude, named Nonprofit CFO of the Year. Cude is CFO of Crystal Bridges Museum of American Art in Bentonville.

Short biographies on all of the winners and finalists are available here. 

Developers began construction this week on the $21 million, six-story 8W Center at 8th and Walton Boulevard across from the Wal-Mart Stores Inc. headquarters in Bentonville.

The project will include ground-level restaurant and retail space, with the middle three stories devoted to parking and the top two floors to office space.

Dave Grunfest Co. of Little Rock is the general contractor, Neilsen Architecture of Bentonville is the architect, Newmark Grubb Arkansas of North Little Rock is the developer and Arvest Bank is providing the financing.

The project is expected to be complete by summer or fall 2016.

The property owner is Troy Link, who with his father Jack owns Link Snacks Inc. of Minneapolis, the company that produces Jack Link's beef jerky. Link also owns several Jimmy John's sandwich shop locations in the region. He owned the Jimmy John's and Jack Link's vendor office that previously sat on the 8W site.

Link confirmed that a Jimmy John's would make up part of the first-floor space along with other restaurants, including a full-service option, and "branded" retail. He said the building would include a co-working space for Wal-Mart vendors that don't open a full-time office in Bentonville.  

The Downtown Springdale Alliance hired Misty Murphy to be the organization’s first executive director.

Murphy is the trails coordinator with the Northwest Arkansas Council for the Razorback Regional Greenway and will start with DSA on Dec. 1. As executive director, Murphy will provide leadership and management for the downtown area.

"I look forward to helping usher in a new era for downtown Springdale with the many stakeholders and groups that are already doing wonderful work in the city," Murphy said. 

The alliance created the position in September and had 29 applicants. The DSA will work off the Downtown Master Plan, which has not been finalized.

"We had a strong pool of candidates to choose from, but Misty really provided a solid vision for the organization, downtown Springdale and downtown’s role in the region," said Carl George, the president of the alliance’s board for directors. "Her knowledge of northwest Arkansas, her professional network and her passion for downtown really shined through in the interview process. We are delighted that she has agreed to be part of the team."

Deanna Brock has been promoted to Conway vice president and commercial loan officer by First Service Bank of Greenbrier.

Brock, a First Service employee for six years, had been a loan officer and manager of the bank’s Conway branch.

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

The late Layton “Scooter” Stuart considered it a point of pride that he didn’t draw a salary as chairman, president and CEO of Little Rock’s One Bank & Trust. Stuart was able to do that in large part because he owned and controlled the bank.

A forensic audit after federal regulators forced him out of the bank three years ago found that One Bank actually footed many expenses that an executive normally pays for out of a salary.

But one aboveboard form of compensation that Stuart received was a $20 million life insurance policy with his family trusts as the beneficiaries. His alleged abuse of the trusts and his borrowing privileges on the policy are the basis of a federal lawsuit headed for trial in February.

Under a 1997 split-dollar life insurance agreement, One Bank would pay for the policy and would recoup the premiums when the death benefits were paid. After Stuart died in 2013, John Hancock ultimately reimbursed the bank $3 million for premiums paid.

A September settlement disbursed $6.9 million to One Bank for money Stuart diverted from the bank over the years for his personal benefit and $4 million each to his family trusts and the U.S. Treasury, related to TARP money that Stuart misappropriated.

And $1.7 million that Stuart had borrowed from the cash value of the life insurance in 2011 was repaid to John Hancock out of the death benefits.

Dick Torti, trustee for the Stuart Family Trusts since 2013, filed the civil lawsuit claiming the trusts were defrauded because Stuart should never have been able to borrow against a policy that he didn’t own.

Torti sued to recover that $1.7 million from Debra Hoag, a Chicago insurance executive, and her firm, Gentry Partners Ltd.

Hoag, who helped set up the $20 million John Hancock life insurance, counters that she was duped into later becoming the trustee of the Stuart Family Trusts and helping Stuart obtain the loan.

Hoag contends that the trusts were legally invalid from their inception or were alter egos of Stuart. And that as such, she argues, Torti as the purported trustee does not have standing to enforce the claims of an entity that lacks valid independent form.

Her response to the complaint also claims that Stuart was “the real party in interest whose control over and abuse of the trusts rendered them legally indistinguishable from him.”

Hoag claims she worked in good faith with Stuart, believed he would use the loan for the benefit of the trusts and had no way of knowing otherwise.

Timeline: Scooter Stuart Legal Tangle Traced To $20 Million Policy

Aug. 8, 1997

Layton “Scooter” Stuart, chairman, president and CEO of One Bank & Trust, establishes the Stuart Family Trusts for the benefit of his wife, Tommye, and their daughter and son, Kirby and Hunter. Michael Heald, chief operating officer at the bank, is named as the trustee.

The three trusts are the owners and sole beneficiaries of a $20 million individual variable life insurance policy on Scooter Stuart. The policy is issued by John Hancock Life Insurance Co.

To fully fund the policy, 10 annual payments of $350,000 are to be paid by One Bank. The bank holds a collateral interest in the policy for repayment of the life insurance premiums.

The arrangement, known as a split-dollar life insurance agreement, is made as an inducement for Stuart to continue working at the bank he owns and controls.

The agreement between One Bank and the Stuart family trusts notes that Stuart “renders competent and faithful service to the bank, which is to the bank’s direct benefit and for which” he “is not compensated in a fashion commensurate with the value of such services in the prevailing market.”

Sept. 11, 1998
According to court filings, Heald requests the first of four borrowings against the cash value of the life insurance policy on the instruction of Scooter Stuart. The $78,534 allegedly went to Stuart, not the trusts.

The borrowing is made within weeks of the earliest date allowed under the policy.

However, under the terms of the split-dollar life insurance agreement between the Stuart Family Trusts and One Bank, the trustee is not allowed to borrow against the cash value of the policy.

According to court filings, John Hancock doesn’t know about the agreement or its terms, although the trustee, Heald, was required to make full disclosure.

Other borrowings from the policy follow on Nov. 3, 1999, $232,367; Jan. 2, 2001, $153,020; and Oct. 29, 2001, $104,618.

Jan. 20, 2011
One Bank enters into a formal agreement with the Office of the Comptroller of the Currency after the regulatory agency found that the bank’s classified loan levels were too high.

June 2, 2011
Debra Hoag, a Chicago insurance executive who helped obtain the John Hancock policy for Stuart and One Bank, agrees to serve as a replacement trustee of the Stuart Family Trusts for Heald. Hoag says Stuart and Heald deceived her into becoming trustee.

June 3, 2011
At the behest of Scooter Stuart, Hoag submits a loan request to John Hancock on the life insurance policy. The request is for the maximum amount possible. According to Hoag, Stuart told her the money would be used to inject additional capital in the bank, which was in dire financial straits.

June 7, 2011
John Hancock issues a $1,761,000 check to the “Stuart Family Trust.” Scooter Stuart receives the check, endorses it and has the money deposited in a One Bank account for Rivercity Energy, an entity he controls. The transaction occurs although Stuart allegedly has no legal right to conduct business through or on behalf of the trusts.

The money from John Hancock is combined with borrowings totaling more than $7.7 million against two life insurance policies covering One Bank staffers. These two checks secured by the bank-owned life insurance policies (BOLI) also are deposited in the Rivercity bank account.

According to court filings, the bulk of the money from the three life insurance loans is used by Stuart as part of a fraudulent transaction.

The money deposited in the Rivercity account funds “the purchase” of bad loans from One Bank. On paper, it appears Rivercity bought the bad loans.

However, there is no accounting that One Bank was paid with money that came from borrowings against two bank-owned assets (the BOLI) and the John Hancock policy, borrowings that weren’t presented to or approved by the board of directors.

July 2011
Michael Heald resigns or is fired as senior EVP and COO at One Bank.

May 23, 2012
The OCC renewed its supervisory agreement with One Bank and directed the bank leadership to revise its strategic plan, improve capital levels, fix management deficiencies and achieve certain capital ratios.

Sept. 28, 2012
The OCC issues a prompt and corrective action directive that ousts Scooter Stuart as chairman, president, CEO and director of One Bank. The order includes prohibiting the bank from making any payments on Stuart’s behalf, without OCC approval. When the bank later stops making payments on the John Hancock life insurance policy, Stuart steps in to keep it in force.

Oct. 25, 2012
Hoag resigns as trustee of the Stuart Family Trusts. Her replacement is Hunter Stuart.

March 11, 2013
Dick Torti is named as a replacement for Hunter Stuart as trustee of the Stuart Family Trusts.

March 26, 2013
Scooter Stuart dies. Torti later unsuccessfully attempts to collect on the life insurance policy for the benefit of the trusts. The holdup in releasing the funds is caused by a condition that Torti deems unacceptable. John Hancock requires that Torti release it from any claims related to or arising from the policy or payment of benefits.

June 11, 2013
The U.S. government seizes nearly $17.7 million in death benefits held by John Hancock as part of a civil forfeiture action. The balance of the $20 million payout is retained by the company as repayment for the $1.7 million borrowed against the policy by Stuart plus accrued interest.

June 2, 2014
Torti sues Hoag, her Gentry Partners Ltd. and John Hancock in U.S. District Court in Little Rock to recover the $1.7 million on behalf of the Stuart Family Trusts. The complaint alleges the parties shouldn’t have helped facilitate a loan against the life insurance policy and the money should’ve gone to the trusts, not Stuart.

Oct. 17, 2014
U.S. District Judge Leon Holmes orders the dismissal of all claims against John Hancock. He also dismisses claims of deceit, deceptive trade practices and civil conspiracy against Hoag and Gentry Partners. The case moves forward with claims of breach of fiduciary duty and negligence against Hoag and Gentry.

March 3, 2015
Heald is indicted along with three other top One Bank executives for participating in an alleged conspiracy to defraud the federal government. The indictment alleges that Heald helped create a web of transactions designed to hide loan problems at One Bank from bank regulators.

Feb. 22, 2016
A jury trial regarding the John Hancock life insurance loan is set to begin, barring the fruition of any settlement talks.

George Makris is taking a little breather.

“This is the first time we haven’t had a bank conversion on the schedule in over two years,” the president and CEO of Simmons First National Corp. of Pine Bluff told Whispers last week.

“So our folks are going to enjoy the holidays, and then we’re going to get busy again.”

At the end of last month, Simmons announced that it had completed the acquisition of Ozark Trust & Investment Corp. of Springfield, Missouri.

Makris said that the bank will “continue discussions with other institutions. … We don’t have anything that’s pending today.”

But he said that after the first of the year, “I hope we’re successful.”

In other Simmons news, you might have seen a recent U.S. Securities & Exchange Commission filing concerning a $60 million debt offering.

Makris said the filing was tied to the purchase of Metropolitan National Bank of Little Rock in 2013 for $53.6 million.

“We borrowed the money at that time on a floating rate, three-year period to buy Metropolitan Bank,” he said. “Because of the favorable rates today and the fact that loan demand is not … spectacular, we went back to those banks and said look guys we’d be willing to extend the terms, … fix that rate for a period of time if you guys had an interest. And they did.”

He said the transaction was similar to refinancing and not new money. But he said that the filing was required.

“All that cash is at our holding company, and we would expect if we had any more opportunities for some acquisitions that that cash would be available as part of the purchase price,” Makris said.

The pending sale of Parkway Bankshares Inc. of Portland (Ashley County) will end an 11-year struggle to make profitable inroads in northwest Arkansas.

Benton County presented an opportunity to diversify from its southeast Arkansas base and tap into the booming real estate market.

But instead of adding to the bottom line, the foray contributed heavily to a net loss of more than $4 million since the Parkway Bank venture ramped up for northwest Arkansas during 2004.

Jerry Carmichael, a former Arvest Bank exec in Rogers, was tapped to lead the Benton County push early that year.

Built on the 1900 charter of Portland Bank, the lender was renamed Parkway Bank in May 2004, and a headquarters move to Rogers followed six months later.

Parkway raised $5.8 million in new capital to fund its northwest Arkansas effort.

The expansion began by wading into the market with a loan production office in Bentonville during the summer of 2004.

In 2006, total assets reached a year-end peak of $165 million, and payroll topped out at 78 staffers. That year began a run of four consecutive annual losses for Parkway.

The biggest loss, $4.6 million, hit in 2009.

In August 2008, Parkway Bank was sanctioned by federal regulators for unsafe and unsound bank practices.

The consent order with the Federal Deposit Insurance Corp. noted that the bank operated “with management whose policies and practices are detrimental to the bank and jeopardize the safety of its deposits.”

Carmichael was gone by mid-March 2007 along with his executive cadre of three former Arvest bankers who helped establish the northwest Arkansas operations.

The departure of his successor, Brad Collier, was followed by the 2009 exodus of Jerry Sadler as chairman and CEO of Parkway Bank. A branch in Rogers and one in Bentonville were closed that year, leaving Parkway with a single northwest Arkansas location in Rogers.

2009 is also the year Bob Taylor left Chambers Bank of North Arkansas in Fayetteville to become president and CEO of Parkway.

Taylor, current president of the Arkansas Bankers Association, will stay aboard as regional CEO and executive credit officer after the sale is completed with Citizens Bancshares of Batesville Inc., parent company of the $575 million-asset Citizens Bank of Batesville.

Parkway Bank was on its way to recording a sixth consecutive year of annual profits in 2015. But the combined tally of profits since 2010 couldn’t negate losses of 2006-09 at the $133 million-asset bank.

Extraordinary items have provided the $329 million-asset One Bank & Trust with three quarterly respites from losses during the past 18 months.

The biggest item recently was booked by the Little Rock lender as $6.9 million in noninterest income.

The bank’s share of a settlement with the estate of its former owner and CEO, Layton “Scooter” Stuart, allowed the posting of a $5.5 million profit for the three months ending Sept. 30.

One Bank’s cut of the life insurance payout on Stuart helped boost its equity capital to $18.9 million, the highest level since a $19.9 million tally at March 31, 2013.

The challenge of restoring the bank’s fortunes now narrows down to operations.

Just when it seemed the bank’s quarterly legal fees would plunge, a new front opened.

Hunt Lawsuit

One Bank recently was sued for fraud and breach of contract by BHL Financing LLC, led by Johnelle Hunt.

The fraud and breach were allegedly perpetrated by One Bank executives during the Scooter Stuart regime and not discovered until 2012.

According to the complaint, BHL was deceived into subordinating its security interest in the bank in 2009 to allow One Bank to gain $17.3 million in TARP funding.

That federal money flowed through the bank’s parent company, OneFinancial Corp., controlled by Stuart and pledged to secure money owed to BHL.

Among the guarantees on today’s $15.2 million of BHL debt was one linked with Stuart as an officer of One Bank. The Hunt family was owed money from selling the bank to Stuart and financing his Rivercity Energy convenience store venture.

The complaint also alleges that Michael Heald, chief operating officer at One Bank, misrepresented the condition of the bank so BHL would sign off on the TARP funding agreement.

Instead of financing growth, the government funding:

• Was used to conceal serious loan problems at One Bank and pay personal expenses of Stuart.
• Added more debt, which decreased the value of the bank.
• Placed BHL in an inferior creditor position behind the U.S. Treasury.

BHL is seeking compensatory damages of greater than $10 million and punitive damages from One Bank.

BHL already holds a $14.7 million default judgment against OneFinancial, but the new suit goes after the bank separately.

Frank Lyon Jr., 74, who served in leadership roles at many companies, including the Coca-Cola Bottling Co. of Arkansas, died Sunday at his Little Rock home.

A visitation is planned for from 4-6 p.m. Wednesday at the Ruebel Funeral Home at 6313 W. Markham St. in Little Rock. The memorial service will be at 11 a.m. Thursday at Second Presbyterian Church at 600 Pleasant Valley Drive in Little Rock.

A full obituary has been posted on the funeral home's website.

Lyon was born in Little Rock in May 1941 to Frank Lyon Sr. and Marion Bradley Lion. He attended Davidson College and the University of Arkansas in Fayetteville and served in the U.S. Army, where he earned the Army Commendation Medal. He earned an MBA from Harvard Business School in 1967.

Lyon led several companies including The Frank Lyon Co., TC Bankshares, Wingmead, Inc., Arkansas Irrigation Co. and U.S. Bank.

A beneficiary of the Lyon family's generosity was Arkansas College at Batesville, which changed its name to Lyon College in 1995. Lyon College issued the following statement Monday evening:

"Frank Lyon, Jr., was a trustee of Lyon College in Batesville for nearly 30 years, serving a lengthy term as Chairman of the Board. When he left the board, he continued his involvement with the institution named in honor of his family as Special Advisor to the President from 2012 until his death. The College awarded him with an honorary Doctor of Humane Letters degree at commencement in 1997.

"Lyon had the business acumen, knowledge, and skills necessary to help direct the selective private liberal arts college. He graduated from the University of Arkansas with honors and earned an MBA from the Harvard Business School. He also had the example of his late father, Frank Lyon, Sr., who also served on the Lyon Board of Trustees, including terms as Chairman. When the College decided in 1994 to change its name from Arkansas College, the amazing commitment of the Lyon family, beginning in the 1940s, led then-president John Griffith to seek the family’s permission to honor their leadership with the new name, Lyon College. Lyon, Sr., was initially unwilling, but he was persuaded to agree by fellow trustees and family members.

"His son continued the tradition of involvement and support, making significant donations to the construction of the new Edwards Commons and the recently-dedicated Charles Whiteside Hall, one of two new residence halls.

"When he learned of Frank’s death, President Donald Weatherman stated, "He savored life in a way that infected anyone around him. Whether it was his sound judgment in the Board Room or his keen eye in the duck blind, Dr. Lyon was an inspiration to all who had the privilege to know him. Like his father, he was a remarkable businessman who was just as generous as he was successful. When asked to speak on special occasions where they were being honored, the family words were simply "My cup runneth over."'

"Lyon College was blessed to receive some of that overflow. Weatherman noted when the name was changed that 'the Lyon family met or exceeded every quality we try to instill in our students: honor, integrity, perseverance, and compassion. Our challenge has always been to be as successful in education as the Lyons were in everything else they touched.'"

In lieu of flowers, the family asked that memorials take the form of donations to the Thomas-Lyon Longevity Center at the University of Arkansas for Medical Sciences, Arkansas Children's Hospital, Second Presbyterian Church or the donor's favorite charity.

Bank of the Ozarks Inc. of Little Rock said late Monday that it has purchased C1 Financial Inc. of St. Petersburg, Florida, and its wholly-owned bank subsidiary, C1 Bank, in all-stock deal worth $402.5 million.

The deal, which has been approved by both companies' boards and is set to close by the second quarter of 2016, will put Bank of the Ozarks in Miami and Orlando for the first time.

C1 operates 32 Florida banking offices on the west coast of Florida and in Miami-Dade and Orange Counties. Most of its offices are located in Florida's top six metropolitan markets.

As of Sept. 30, C1 had about $1.7 billion of total assets, $1.4 billion of loans and $1.3 billion of deposits.

Trevor Burgess, president and CEO of C1 and founder of C1 Bank, will join Bank of the Ozarks as chief innovation officer and president of the company's Florida operations. Bank of the Ozarks also said Burgess "is expected to be nominated at a future annual meeting of shareholders for membership" on its board of directors as part of a group of C-level officers who rotate from year to year on the board.

"This acquisition provides us with 32 additional offices in Florida, including entry into the Miami, Orlando and Cape Coral-Ft. Myers markets and significantly expands our existing 10-office Florida presence," George Gleason, chairman and CEO of Bank of the Ozarks, said in a news release. "The addition of these branches in some of Florida’s best high growth, deposit-rich markets is very attractive to us, but of equal value is the skilled and dedicated team at C1 Bank."

Arkansas Business will update this story.

The Arkansas Economic Development Commission’s Small and Minority Business Division will host two workshops this month geared toward minority business owners.

On Nov. 18, it will host the Certification Training Workshop from 9-11 a.m. at AEDC’s Rockefeller Conference Room, 900 W. Capitol Ave., Suite 400, in Little Rock.

The Minority Business Loan Mobilization Guaranty Program workshop will follow at the same location from 2-4 p.m.

The Certification Assistance Workshop provides information about the state’s Minority Business Enterprise certification program. Attendees will learn who is eligible for the program and will receive assistance with the application process. In addition, benefits of certification will be highlighted as well as loan assistance for those who are state-certified.

The Minority Business Loan Mobilization Guaranty Program helps Arkansas’ state-certified minority businesses with loan guarantees from $10,000 to $100,000. Workshop attendees will learn who is eligible for the program and will receive assistance with the application process.

To register for one or both classes, visit www.ArkansasSMBworkshops.eventbrite.com. 

WASHINGTON — Average long-term U.S. mortgage rates this week rose sharply for a second straight week as expectations grew that the Federal Reserve may soon raise its key short-term interest rate.

(Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

Remember Debra Hoag?

She’s the Chicago insurance broker who helped arrange the $20 million life insurance policy for the late Layton “Scooter” Stuart, former owner and CEO of Little Rock’s One Bank & Trust.

Turns out, Hoag was a customer of One Bank, too.

We learned that recently when the bank sued her to recover $27,300 allegedly owed on a loan.

According to the complaint, the loan matured on Aug. 23 and dates back 11 years with an original amount of $300,000.

Documents indicate the loan principal increased to $500,000 in 2005 before dropping to $451,651 in 2007, $448,541 in 2010 and $242,710 in August 2011.

Two months earlier in 2011, Hoag became the trustee of the beneficiaries of that $20 million life insurance policy, the Stuart Family Trusts. She also helped arrange a $1.7 million policy loan from John Hancock that summer at the insistence of Scooter Stuart.

He wasn’t legally authorized to seek the loan and even managed to cash the loan check at One Bank although it was in the name of “Stuart Family Trust.”

That $1.7 million is the subject of a federal lawsuit against Hoag by Stuart’s heirs and the subject of an article in last week’s issue of Arkansas Business.

The Little Rock Technology Park Authority Board, meeting via conference call, voted late Monday afternoon to give Little Rock attorney Richard Mays until Friday to accept the board's offer of $845,000 for his three-story, 10,000-SF property at 415 Main St.

The board had given Mays until noon Monday (Nov. 16) to accept the offer. If he didn't, the board was prepared to file an eminent domain lawsuit on Wednesday to force Mays out. 

Board member Jay Chesshir, president of the Little Rock Regional Chamber of Commerce, said he met with Mays over the weekend and that Mays requested the extension. 

The board needs the 415 Main property, which houses the Mays Byrd & Associates law firm, to serve as the anchor for the $24 million Phase 1 of the tech park, the financing for which is being provided by a consortium of local banks.

Mays and the board had disagreed on the value of the property. Earlier this month, the board agreed to offer Mays $845,000 — $175,000 more than its original proposal and matching Mays' own property appraisal.

The board also voted Monday to approve a commitment letter outlining the financing of Phase 1.

The board is borrowing $17.5 million at an interest rate of 4.19 percent from the consortium, which is made up of Centennial Bank, Arvest Bank, Bear State Bank, Eagle Bank & Trust, First Arkansas Bank, First Security Bank, Malvern National Bank, Relyance Bank and Simmons Bank. Centennial Bank is the group's lead institution.

The rest of the money for the first phase is coming from the Little Rock sales tax approved by voters in 2011.

Financial Quarter organizers are working to implement phase one of a three-phase plan, beginning with a possible event in March that builds on the Little Rock Marathon.

Creating the Financial Quarter is an effort led by StudioMAIN and a volunteer committee, who aim to improve and revitalize the area stretching from Sixth Street to the Arkansas River between Broadway and Main Street in downtown Little Rock.

The project began in May 2014, with the goal of drawing people out of their offices and on to the streets. According to Glen Woodruff, director of business development for Wittenberg Delony & Davidson Architects of Little Rock and the StudioMAIN coordinator for the project, employees go into the parking decks, take the elevator to their offices and leave when 5 p.m. comes around.

"They never come out in the street, they never engage the retail opportunities that are downtown and in the River Market and as a result, what we're calling the Financial Quarter sort of dried up over the years," Woodruff told Arkansas Business in August. "That used to be the center of town, and it’s not any more."

The area includes 20 city blocks plus the riverfront and houses 43 office buildings and four hotels.

Phase one of the Financial Quarter includes three main objectives: to plan a "pop-up" event, add street furniture and make use of "pop-up" kiosks.

Inaugural Event

At a regular committee meeting on Tuesday, the group discussed hosting a happy-hour event on March 3, the Thursday before the Little Rock Marathon. The marathon’s final mile will go through part of the Financial Quarter.

"The whole idea of the Financial Quarter is that there is already a population in this part of town," Woodruff said.

Now the goal is to keep that population there longer. According to data from studioMAIN, the office towers in the area alone contain about 6,000 employees there every day.

Tentative plans for a pre-marathon event revolve around the goal of keeping people in the downtown area after work instead of heading straight from the office to home. The event would focus on food and revolve around food trucks and various local restaruants. Everything discussed at the meeting was tentative and nothing has been set or decided.

Branding the Financial Quarter

The group is also working to devise branding for the area with the help of volunteer committee member Gwen Canfield, a graphic designer and the owner of Creative Instinct. In a Facebook poll hosted from the Financial Quarter’s Facebook page, Canfield asked for feedback on three Financial Quarter logo options.

The winner, a simple four-square design with one square or "quarter" of the image highlighted, received 53 percent of 138 votes. Canfield is collecting pricing information for banners that could be hung from light poles in the area and said they would likely need 42 banners, which would cost around $3,000.

According to Woodruff, funding for the Financial Quarter has come from donations from property owners in the area. The committee has not yet addressed where future funding might come from.

Future Plans

Phase two of the plan includes a continuation of adding street furniture as well as a redesign of the area's plaza and lobbies.

Six blank lobbies exist on Capitol Avenue, designed mainly during the 1970s and 1980s. With more modern banking taking place online, organizers says those lobbies are underused.

StudioMAIN proposes that "the lobbies be redesigned in a manner that provides for retail space and eating establishments."

The Financial Quarter also includes seven plazas and wide streetscapes that the committee believes should be enhanced and redesigned.

In the third and final phase of the project entails creating high-rise housing, updating the street design and increasing parking.