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Simmons First Increases Quarterly Dividend by 4.3 Percent

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The Simmons First National Corp. board of directors declared a regular $0.24 per share quarterly cash dividend payable July 1, to shareholders of record June 15.

This dividend represents a 1-cent per share, or 4.3 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 21, the company reported first-quarter net income of $23.5 million, up 170 percent from $8.7 million in the same quarter last year.


Eyenalyze Receives Funding From Cadron Creek Capital

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Eyenalyze, a leader in CPA-friendly restaurant back-office solutions, announced Friday seed funding from Cadron Creek Capital.

The funding will be used to further Eyenalyze's solution which simplifies restaurant back-office business including inventory, plating cost and employee tracking – all while providing end data that is useful and compatible with financial analysis and reporting.

A spokesman said “Cadron Creek typically invests $50,000 – $150,000 into a company" and the investment into Eyenalyze “is in the middle” of that range, but would not disclose a specific figure.

"We believe that Eyenalyze's mission, not only in producing a powerful suite of back-office PC and mobile apps, but also their vision in creating a seamless bridge between the data captured by their system and the world of CPAs, is an offering that is sorely needed by small- and medium-sized restaurant chains," Jeff Standridge, co-founder of Cadron Creek Capital said in a news release. "Having their solution already successfully adopted by numerous restaurant franchises, we're looking forward to Eyenalyze's continued momentum and development of their offerings."

Cadron Creek Capital is a seed capital investment fund focused on process innovators, technology and technology-enabled startups and designed to foster growth in entrepreneurial activity throughout the mid-South.

"Eyenalyze provides powerful technology tools, usually reserved for national chains, to regional and independent restaurant operators," said Michael Rasmussen CPA, CEO of Eyenalyze. "Cadron Creek Capital's investment in our company underscores our value proposition and will help us to further improve our offering, providing restaurant owners and managers with the technology tools they need for success."

Rehab & Health Care Center Attracts $3.5M Transaction (Real Deals)

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A 70-room nursing home in west Little Rock tipped the scales at $3.53 million.

FC Encore Properties B Holdco LLC, an affiliate of Formation Capital of Atlanta, purchased Chenal Rehabilitation & Healthcare Center at 3115 S. Bowman Road.

The seller is Diamond Senior Living LLC, an affiliate of GE Capital of Norwalk, Connecticut. The property is helping secure a $479 million funding agreement with a lending consortium led by KeyBank of Cleveland.

An affiliate of Centennial Healthcare Corp. of Atlanta acquired the 4.48-acre development for $3.02 million in August 1998 from St. Charles Healthcare LLC of Fort Smith.

GE Capital entered the ownership picture in the wake of Centennial Healthcare’s December 2002 bankruptcy.

BlueRoad Buy

A 7,125-SF medical building in Little Rock weighed in at more than $1.75 million.

BlueRoad Net Lease LLC, an affiliate of BlueRoad Ventures of Chicago, bought the 0.96-acre Fresenius Medical Care development at 5320 W. 12th St.

The seller is Chicago’s Brauvin Net Lease LLC, a private real estate investment trust.

Brauvin purchased the former Internal Medicine Clinic for $1.87 million in October 2012 from Southeast Medical Little Rock LLC of Birmingham, Alabama.

Multifamily Sale

A 10-unit apartment project in west Little Rock changed hands in a $915,000 deal.

Peeples Investments LLLP, led by Raymond Peeples Jr., sold the 800-818 Green Mountain Drive project.

The buyers were a group of Caprocq-led investors: Green Mountain Partners LLC, 84.9 percent; Burlingame Green Mountain Investments LLC, 8.4 percent; and Once LLC, 6.6 percent.

The deal is financed with a five-year loan of $457,500 from Greenwoods State Bank of Lake Mills, Wisconsin.

The 1.01-acre development previously was tied to a November 2014 mortgage of $500,000 held by Little Rock’s Bank of the Ozarks.

Peeples Investments bought the property for $998,000 in February 2005 from Michael Hancock, Brad Duke and Larry Goodwin.

Parking Purchase

A 0.29-acre piece of a parking lot in downtown Little Rock rang up a $625,000 sale.

Texarkana Newspapers Inc., led by Walter Hussman, purchased the property at the northwest corner of Capitol Avenue and Scott Street from James Whitmore III and his wife, Karon.

The property was acquired for an undisclosed sum in March 1944 from A.W. Realty Co., now a subsidiary of Southwestern Energy Co. of Spring, Texas.

Kanis Property

A 3.02-acre commercial parcel in west Little Rock is under new ownership after a $522,000 transaction.

Hamilton Reid Real Estate LLC, led by Brian and Catherine Barron, bought the 11601 Kanis Road property. The seller is YesICan LLC, led by Elaine Jones and Stephen Roach.

The deal is funded with a two-year loan of $417,600 from IberiaBank of Lafayette, Louisiana.

The property previously was linked with a March 2014 mortgage of $365,000 and an August 2014 mortgage of $25,000 held by Arvest Bank of Fayetteville.

YesICan purchased the property for $300,000 in March 2014 from the Reddick Family Remainder Trust and the Minnie L. Reddick Revocable Trust, both led by Sharon Reddick.

Automotive Acquisition

A 0.67-acre site in Little Rock drew a $155,000 deal.

O’Reilly Automotive Stores Inc. of Springfield, Missouri, acquired the land at the southwest corner of East Roosevelt Road and Commerce Street from Donna Hadfield Foss and O.D. Hadfield III.

The Hadfield family bought the property for $30,000 in May 1974 from the heirs of C. Hamilton Moses.

Heights Home I

A 3,065-SF home in Little Rock’s Country Club Heights neighborhood sold for $750,000.

Gerald Friend purchased the house from the Robert W. Lehmberg Revocable Living Trust.

The deal is backed with a 10-year loan of $417,000 from First Security Bank of Searcy.

Lehmberg acquired the property for $750,000 in December 2007 from the estate of Jack Fleischauer.

Heights Home II

A 3,080-SF home in the Heights area of Little Rock changed hands in a $662,400 transaction.

Karl and Elizabeth Schultz bought the house from Terra Firma Project LLC, led by Billy Collins Jr.

The deal is financed with a 15-year loan of $417,000 from Bank of the Ozarks.

The property previously was tied to a June 2015 mortgage of $523,800 held by Capital Bank of Little Rock.

Terra Firma purchased the location for $180,000 a year ago from the Kelley Johnson Family Revocable Trust.

The Schultz family acquired an adjoining lot for $225,000 in June 2015 from Terra Firma. It previously was linked with a $394,000 mortgage held by Capital Bank.

Terra Firma purchased the property for $180,000 in June 2015 from the Kelley Johnson Family Revocable Trust.

Woodland’s House I

A 4,837-SF home in west Little Rock’s Woodland’s Edge neighborhood rang up a $670,000 sale.

Joseph and Melanie Diorio acquired the house from Randy and Donna Wright.The deal is funded with 30-year loans of $536,000 and $67,000 from U.S. Bank of Cincinnati.

The residence previously was tied to an October 2013 mortgage of $190,000 held by Arvest Bank.

The Wrights bought the location for $75,000 in January 2013 from HRH Builders Inc., led by William Darby Jr.

Avignon Abode

A 5,172-SF home in the Avignon Court neighborhood of west Little Rock’s Chenal Valley development is under new ownership after a $610,000 deal.

Thurston and Hannah Bauer purchased the house from the Williams Revocable Trust, led by Dennis and Kathleen Williams.

The deal is backed with a 10-year loan of $610,000 from Simmons Bank of Pine Bluff.

The residence was acquired for $557,000 in December 2004 from John and Frances Chism.

PV Residence

A 3,610-SF home in west Little Rock’s Pleasant Valley neighborhood drew a $528,000 transaction.

Aaron and Allison Bragg bought the house from Marshall and Melanie Coffman.

The deal is financed with a 15-year loan of $250,000 from Malvern National Bank.

The residence previously was linked with a June 2013 mortgage of $338,000 held by JPMorgan Chase Bank of New York.

The Coffmans purchased the property for $360,000 in March 2006 from Zhao Kezhuang and Yan Yang.

Woodland’s House II

A 3,890-SF home in the Woodland’s Edge neighborhood of west Little Rock sold for $515,000.

Meredith and Robert Zozus Jr. acquired the house from Anthony and Julie Carter. The deal is funded with a 30-year loan of $412,000 from Eagle Bank & Trust of Little Rock.

The residence previously helped secure a September 2015 mortgage of $655,000 held by AgHeritage Farm Credit Services of Little Rock.

The Carters bought the property for $470,000 in September 2012 from The Wilson Co., led by Janet Dillon.

Seven-Digit Construction

Technology Center    $6,500,000
415 Main St., Little Rock
East-Harding Inc., Little Rock

Warehouse Renovation    $1,893,786
LM Wind Power    
7400 Scott Hamilton Drive, Little Rock
W.G. Yates & Sons Construction Co., Philadelphia, Mississippi

Mark Zweig Scoops Up University Village (NWA Real Deals)

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Builder Mark Zweig of Fayetteville paid $2.25 million for the 20,000-SF University Village shopping center on West 15th Street in Fayetteville.

Zweig purchased the property from Signature Bank of Arkansas, which had acquired the property in 2011 in lieu of foreclosure from Ark4 LLC, led by William Lazenby. The property had been tied to a $6.54 million loan.

Zweig said the village is approximately 40 percent leased, and the main space hasn’t been built out. He said that space, with 25-foot ceilings and a curved window wall, has great possibilities for a build-to-suit tenant.

“It’s really cool,” Zweig said. “We think it’s going to be a really good project. There is something to work with there that could be really cool.”

Zweig said the village is in a good location, near Baum Stadium, hotels and student housing. One other space in the village has not been built and another space is empty.

Zweig said he has received feelers from potential tenants for all three spaces.

Law Firm to Move

The Niblock Law Firm will move from its current location after selling its office building for $1.3 million.

George H. Niblock Sr., as the head of George H. Niblock Ltd., sold the 5,428-SF building, located at 324 N. College Ave., to Ted Belden of Fayetteville. Niblock is now leasing the property until the law firm decides where it wants to relocate the firm.

Belden bought the property through his Appleby House LLC. Bear State Bank of Little Rock assisted the purchase with a loan of $1.04 million.

Belden plans to keep the law firm office building as a lease property for future commercial users.

Burger King Sells

A Burger King restaurant location in Fayetteville went for $1.475 million.

The property, at 1730 Martin Luther King Jr. Blvd., was sold by CKM Enterprises LLC, which is led by Terry Clark and Stephen Kirkland. The buyer was the Kimberly Anne Hart Trust of Coto De Caza, California.

The restaurant was marketed with a 20-year lease guaranteed by the tenant with the new owner.

Common Grounds Sold

The 3,310-SF building that housed Common Grounds on Dickson Street was sold for $1.3 million.

The coffee shop, located at 412 W. Dickson St., was sold by CG Ventures LLC, led by Kari Larson and Julie Ann Still. Common Grounds closed earlier this year.

The buyer was Monroe Dickson LLC of Fayetteville.

Student Housing Purchase

Haven Campus Communities of Atlanta, which specializes in student housing developments, bought nearly 7 acres in Fayetteville for more than $1 million.

Haven, through its Haven Campus Communities-Fayetteville LLC, paid $866,000 for four tracts of land totaling 6.12 acres from Cap Reo 1 LLC of Portland, Oregon. The land is north of Wedington Drive and just west of the Harp’s Food Store on Garland Avenue.

Haven also paid $285,000 to Nall Properties of NWA LLC for an adjacent 0.6-acre plot. Nall Properties is led by Marty Nall, who paid $74,000 for the property in 1999.

D&D Deals

Daugherty & Daugherty Properties LLC, led by Robert and Jason Daugherty, has recently made several deals.

The Daughertys sold a 6,240-SF office building at 3994 N. Frontage Road in Fayetteville for $1.2 million. They had purchased the building, a former title company’s office, in December for $690,000 from the Schmieding Foundation of Springdale.

Monroe JC LLC of Fayetteville was the buyer.

The Daughertys also paid more than $1.5 million for two office buildings on Stearns Street in Fayetteville. They paid $890,000 for a 5,757-SF property at 1148 E. Stearns, which is just off Joyce Avenue, and $650,000 for a 7,800-SF building next door at 1186 Stearns.

Remington Place LLC, led by Mike Parker, sold the smaller building. Brian and Donna Buell sold the larger building.

Simmons Banks of Rogers assisted the two purchases with a loan of almost $1.04 million.

2 Banks Join Arkansas Business' Largest Private Companies List

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The 75 largest private companies in Arkansas generated total revenue — self-reported and estimated — of $34.2 billion in their most recent fiscal years, up more than 4 percent in a year.

The price of entry to this year’s list of the 75 largest private companies in the state was up as well: $95 million, compared with $84 million on last year’s list.


Get the List

75 Largest Private Companies in Arkansas XLS PDF

As usual, Stephens Inc. of Little Rock is at the top of the list with the same revenue estimate for 2015 as in 2014 and 2013: $2.25 billion. It is undoubtedly the least reliable number of the list, but Stephens Inc. has always played its cards close to the vest and has never participated in the survey.

In that way, the investment bank is in the minority of the companies on the list. For most of the companies on the list — 64 of 75 — the revenue figures listed were either volunteered or otherwise reported publicly. The rest are estimates and are footnoted as such.

While there were changes in position, the only company to drop out of last year’s top 10 was E-Z Mart Inc., which is actually headquartered on the Texas side of Texarkana. It dropped from No. 8 to No. 12 with sales off 20 percent in 2015.

Results were even worse for other fuel sellers as pump prices collapsed. Sales at Coulson Oil Co. of North Little Rock were off more than 28 percent, and it dropped from No. 20 to No. 27. At Summerwood Partners LLC, the Bryant company that does business as Big Red Stores, sales were off 24 percent. Flash Market Inc. of West Memphis ended the year relatively unscathed; its sales were off only 8 percent and its ranking remained steady at No. 11.

Douglas Cos. Inc. of Conway wholesales non-fuel merchandise — candy and the like — to convenience stores, and its sales improved by 7 percent to $222 million as drivers paid less for fuel.

For the poultry industry, sales were flat in 2015. No. 5 Simmons Foods Inc. of Siloam Springs and No. 9 George’s Inc. of Springdale reported the same round figures for 2015 as they had for 2014: $1.4 billion and $950 million respectively. No. 39 Ozark Mountain Poultry was flat at $250 million. At Mountaire Corp., which has only 39 of its 6,250 employees in Arkansas, sales were off less than 3 percent.

Newcomers

For the first time, privately owned banks have been included in the list of the largest private companies. Traditionally, Arkansas Business has ranked banks by assets, deposits and return on equity, but has not included them in this list because revenue is not a typical metric for ranking banks.

After consulting with bankers and accountants, Arkansas Business adopted a formula to arrive at a bank’s revenue: total interest income plus non-interest income as reported to the Federal Deposit Insurance Corp. for 2015. (Banks often subtract interest expenses when reporting revenue, but this is not comparable to the way other companies on the list typically calculate revenue.)

Using this revenue formula, two privately owned bank holding companies were added to the list: Arvest Bank Group of Rogers, the highest ranking newcomer at No. 13, and First Security Bancorp of Searcy, No. 44.


A Closer Look: Profiles of Private Companies in Arkansas

Fowler Foods Cheers Colonel Sanders' Return to KFC

New CEO Al Simpson Knows Arkansas Valley Co-op From the Ground Up

Packaging Specialties a Printing Success in Fayetteville


Arvest, owned by the Walton family, volunteered its holding company revenue figure of $820.6 million. First Security Bancorp, owned by Reynie Rutledge, declined to give a revenue figure for its Crews & Associates bond brokerage subsidiary and is ranked by total revenue to the First Security Bank alone ($223.4 million).

Other newcomers are:

  • No. 53 Bad Boy Inc. of Batesville, the 19-year-old manufacturer of mowers, rotary cutters and accessories that undoubtedly should have been on the list for several years; and
  • No. 75 Benton Properties Inc. of Springdale, a Sonic franchisee that should have been at the tail end of the list last year as well.

Clark Contractors LLC of Little Rock returns to the list at No. 70, having bounced back with 2015 revenue that was nearly double 2014’s total.

Making Room

Making room for the two banking companies, Bad Boy, Benton Properties and Clark Contractors means five other companies had to leave the top 75. Two of the five are no longer eligible for inclusion because they now have out-of-state owners.

  • Farm Bureau Mutual Insurance Co. of Arkansas Inc., the Little Rock property and casualty company, which has merged with Southern Farm Bureau Casualty Insurance Co. of Ridgeland, Mississippi.
  • Anthony Forest Products Co. of El Dorado, which was sold last year to Canfor Corp. of Vancouver.

Three others dropped off the list because their reported or estimated revenue didn’t reach the top 75: Parker Automotive Group of Little Rock, Russell Chevrolet of Sherwood and Multi-Craft Contractors Inc. of Springdale.

29th Annual List of Arkansas’ Largest Private Companies

Arkansas Business introduced its annual list of the state’s largest private companies in 1988 and continues that tradition this week.

The list originally sought to find the 50 largest companies that are owned and headquartered in Arkansas, but it was expanded to 75 companies in 1996. The list seeks to be comprehensive and authoritative, but the very privacy of the private companies means that it has never been either.

Practically every year we discover companies that should have been on the list in previous years. There are undoubtedly companies that belong on this list that we haven’t identified, and others consistently decline to share their top-line revenue figure, which is the number used to rank the list.

Some 120 companies were surveyed for this year’s list. Of the 75 that made the final cut, 64 either volunteered revenue data or reported it publicly. The rest are estimates and are footnoted as such.

If you know of a company that should be on the list, or comes close and should be surveyed for future lists, please contact Editor Gwen Moritz at (501) 372-1443 or GMoritz@ABPG.com.

Eyenalyze Gets Seed Funding from Cadron Creek Capital

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Eyenalyze of Conway, which provides CPA-friendly back-office solutions for restaurants, announced Friday that it has received seed funding from seed capital investment fund Cadron Creek Capital of Conway.

Eyenalyze says the funding will be used to further its solution that simplifies inventory, plating cost and employee tracking processes, while providing end data that is useful and compatible with financial analysis and reporting.

CPA Michael Rasmussen, CEO of Eyenalyze, said in a release, “Eyenalyze provides powerful technology tools, usually reserved for national chains, to regional and independent restaurant operators. Cadron Creek Capital's investment in our company underscores our value proposition and will help us to further improve our offering, providing restaurant owners and managers with the technology tools they need for success."

Jeff Standridge, co-founder of Cadron Creek Capital, said in the release, “We believe that Eyenalyze's mission, not only in producing a powerful suite of back-office personal computer and mobile apps, but also their vision in creating a seamless bridge between the data captured by their system and the world of CPAs, is an offering that is sorely needed by small- and medium-sized restaurant chains. Having their solution already successfully adopted by numerous restaurant franchises, we're looking forward to Eyenalyze's continued momentum and development of their offerings."

Eyenalyze announced last year its intention to open offices in downtown Conway. Eyenalyze and two other technology companies planned to invest a combined $2.5 million and bring 140 jobs to the city.

Arkansas Business in 2014 reported how the startup was founded

US Bank Earnings Dip 2 Percent in 1Q Amid Low Oil Prices

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WASHINGTON — The impact of low oil prices has continued to hobble the finances of U.S. banks, which posted increased loan losses in the first quarter driven by a huge jump in delinquent energy loans.

U.S. bank earnings dipped 2 percent in the first three months of the year to $39.1 billion from $39.8 billion a year earlier, data issued Wednesday by the Federal Deposit Insurance Corp. showed.

Banks posted the biggest quarterly increase — 65.1 percent — in commercial and industrial loans that are 90 days or more past due since the first quarter of 1987. A large portion of the problem loans came in the energy sector, where low oil prices hurt oil and gas producers and made it harder for them to repay their loans.

Big banks were most affected.

Much of the exposure to energy loans sits with the big Wall Street banks, which made billions of dollars in loans during the boom to finance oil production in Texas, North Dakota and elsewhere. The six largest U.S. banks — JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley — have billions of dollars of exposure to energy loans that won't all be paid back.

Falling oil prices over the past couple of years — now around $50 a barrel for crude oil from a $100 high in mid-2014 — have sliced into the profits of energy companies and put projects on hold. As cash flow from oil sales has trickled, some companies are straining to repay their loans.

The energy-related loans on the balance sheets of the biggest banks represent only a small percentage of their overall lending, but the losses have been noticeable.

There also is an indirect impact on smaller and regional banks that operate in areas like Texas and North Dakota and lend to businesses dependent on the oil industry — like auto dealers, equipment sellers and hotels and restaurants. FDIC officials said it could take a while for the financial effect on smaller banks to fully show up.

The energy problems for banks come amid a steady recovery in the banking industry since the financial crisis struck in the fall of 2008.

More than half of all banks, 61.4 percent, reported an increase in profit in the first quarter from a year earlier. Only 5 percent of banks were unprofitable.

(Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

Fed's 'Beige Book' Survey Finds Modest Growth in Many Regions

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WASHINGTON  — The Federal Reserve said Wednesday that the economy grew at a modest pace in much of the country from April to mid-May, despite headwinds ranging from slower consumer spending to ongoing weakness in the manufacturing and the energy sectors.

The Fed's latest survey of business conditions found that half of its 12 regions described growth as modest, while Dallas said economic activity had increased "marginally." Two districts — Chicago and Kansas City — said growth had slowed from the past report. New York described activity as "generally flat."

The report, known as the Beige Book, will be discussed at the Fed's upcoming meeting on June 14-15. The information in the report could be cited as a reason to hold off on a rate hike.

Fed Chair Janet Yellen said Friday that an interest rate hike would be appropriate in the coming months if the economy kept improving. In an appearance at Harvard, Yellen said that while economic growth was relatively weak at the end of last year and the beginning of this year, the economy appeared to be picking up based on recent data.

But various reports are painting a mixed picture. The government on Tuesday reported that consumer spending surged in April, but a separate report Wednesday showed that construction spending suffered widespread setbacks in the same month.

The Beige Book also presented a mixed view of conditions. It was based on readings from the 12 Fed regional banks that were collected before May 23.

In San Francisco, economic activity was expanding at a "moderate" pace. Meanwhile, six regions — Philadelphia, Cleveland, Atlanta, Chicago, St. Louis and Minneapolis — reported slightly less upbeat "modest" growth. Three regions which indicated a slowdown.

The St. Louis region includes Arkansas.

Consumer spending, which accounts for 70 percent of economic activity, dampened some areas. Three districts — Boston, New York and Philadelphia — said cool spring weather had curtailed retail sales compared to last year. A number of retailers reported increased competition from online sales.

In manufacturing, Cleveland, Chicago and Minneapolis reported modest increases. But New York, Philadelphia, St. Louis and Kansas City said that manufacturing had declined, and San Francisco reported a flat reading for manufacturing.

The report found that the energy sector, which has been under pressure with falling prices, remained weak. Oil drilling continued to contract in the Dallas, Kansas City and Minneapolis districts.

While employment grew only modestly since the last report, many districts were describing labor markets as tight. Wages were up modestly with higher wages reported for entry-level and lower-skill positions in Richmond and Atlanta.

Anticipation of a rate hike at either the next June meeting or in July has been rising since the Fed released the minutes of its discussions at its April meeting. The minutes showed that Fed officials believed the strengthening economy might warrant a rate hike in June.

But the gathering will take place only a week before British voters decide whether to support a move to leave the European Union. The Fed may be reluctant to raise rates in advance of the British vote. Analysts believe a hike at the July 26-27 meeting is more realistic.

Yellen is scheduled to speak on the economy and interest-rate policy in Philadelphia on Monday.

The Fed raised its key policy rate for the first time in nearly a decade in December, pushing the rate from a record low near zero to a range of 0.25 percent to 0.5 percent. But after increased global weakness and financial market turmoil in January and February, the Fed has kept rates unchanged so far this year.

(Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)


Arkansas Revenue Above Last Year, Below Forecast in May

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LITTLE ROCK - Arkansas finance officials say a court settlement and reduced utilities tax collections pushed the state's revenue below expectations in May, but above the same month last year.

The state Department of Finance and Administration on Thursday said the state's net available revenue in May totaled $338.2 million. That's $2.3 million above the same month last year and $5.2 million below the forecast.

Net available revenue so far for the fiscal year that began July 1 totaled $4.8 billion, which is $104.8 million above the forecast.

The department says the state's revenue was affected by $8.2 million it paid in a court settlement. Individual income tax collections were above forecast as well as the same month last year, while sales tax collections were below May 2015 and the forecast.

(Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

Fed Member Lael Brainard Urges Caution on Raising Interest Rates

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WASHINGTON — An ally of Federal Reserve Chair Janet Yellen who has been a longtime skeptic of raising interest rates is signaling that the Fed should be in no hurry to act, especially after Friday's bleak U.S. jobs report.

Fed board member Lael Brainard says other recent economic developments have muddied the picture of the U.S. economy. And she points to additional risks, including possible market turmoil if Britain votes later this month to leave the European Union.

Speaking to the Council on Foreign Relations, Brainard says she thinks there's still "an advantage to waiting until developments provide greater confidence" before raising rates. The Fed next meets June 14-15.

Brainard's remarks Friday could be a preview of a speech Yellen will give Monday outlining her own views on the economy and rates.

(Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

Arkansas Panel not Looking at Raises for Elected Officials

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LITTLE ROCK - The chairman of an Arkansas commission that sets salaries for the state's top elected officials says the panel is not considering any pay hikes since other state employees didn't get a raise this year.

Independent Citizens Commission Chairman Larry Ross said Friday the panel cancelled a meeting planned later this month since state employees won't be getting a cost-of-living adjustment for the coming fiscal year. The commission had initially planned to meet June 14 to hear from state budget officials about state employees' COLAs.

The panel last year voted to more than double legislators' salaries and granted substantial raises to constitutional officers, judges and prosecutors. It was created through a constitutional amendment voters approved in 2014 to review and adjust salaries for the state's top elected officials.

(Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

Maumelle Motel Draws $2.4 Million Transaction (Real Deals)

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The sale of a 52-room motel in Maumelle weighed in at $2.4 million.

New Frontier Hospitality LLC, led by Dilep and Vitesh Patel, bought the Quality Suites at 14322 Frontier Drive. The seller is Premier Hospitality Group LLC, led by Harish and Avinish Patel.

The deal is financed with a five-year loan of $2.04 million from Peoples Bank of Sheridan.

The 2.95-acre development previously was linked with a July 2014 mortgage of $2.1 million held by the bank.

Premier acquired the project for $2.27 million nearly two years ago from the bankruptcy estate of D.J. Hospitality Inc.

Pharmacy Ground

A 1.73-acre commercial site in midtown Little Rock tipped the scales at $2 million.

CVS 10779 AR LLC, an affiliate of CVS Pharmacy of Woonsocket, Rhode Island, purchased the land at 1122 S. University Ave.

The seller is BH University Development LLC, led by Brandon Huffman.

The property previously helped secure a June 2013 mortgage of $3 million held by Commercial Bank & Trust of Monticello.

BH University bought the former Brandon House Furniture project for $3 million three years ago from MBC Holdings Worldwide LLC, led by Bruce Burrow and Marty Belz.

Tool Transaction

A 37,783-SF office-warehouse project in the Landmark community changed hands in a $900,000 transaction.

Carter Family of Arkansas LLC, led by Rocky Carter, acquired the 2.56-acre Little Rock Tools development at 11600 Arch Street Pike. The deal included an adjoining 1.82-acre parcel.

The seller is Summers Arkansas Family LLC, led by John Summers. The deal is backed with a seven-year loan of $720,000 from IberiaBank of Lafayette, Louisiana.

Summers Arkansas purchased the property in January 2000 as part of a $1.3 million deal with Little Rock Tool Service Inc., led by Jerry Victory.

Industrial Purchase

A 33.98-acre piece of an industrial development in southwest Little Rock is under new ownership after a $635,000 deal.

GFG Resources LLC of Little Rock bought the former Siemens Allis facility at 14000 Dineen Drive. The property will become the new home of G.C. Evans Sales & Manufacturing Co.

The deal encompasses the 115,200-SF plant, 20,000-SF office building, 13,400 SF of warehouse space and a 3,200-SF cafeteria.

The seller is Clifton Family LLLP, led by Norman Clifton.

The limited liability limited partnership acquired the property in December 2012 as part of a $300,000 deal with from Siemens Corp. of Iselin, New Jersey.

Shepherdsfold Sale

A nonprofit property in west Little Rock rang up a $550,000 sale.

Bennett Davis Group LLC, led by Michael Bennett, purchased the former Shepherdsfold Church at 1300 N. Shackleford Road.

The seller is Partners Against Trafficking Humans Inc., led by Louise Allison.

The deal is funded with a five-year loan of $640,000 from Arvest Bank of Fayetteville.

The 4.71-acre property was donated to PATH in April 2012 by Shepherdsfold Church.

Land Acquisition

A 1.12-acre parcel in west Little Rock drew a $500,000 transaction.

Akshar 8 LLC, led by Dr. Shailesh Vora, acquired the land at the southwest corner of Kanis and Kaufman roads. The sellers are Glenda C. Pehrson Family Ltd. and GCP Holdings LLC, led by Susan Pehrson.

The deal is financed with a one-year loan of $375,000 from Arvest Bank.

The Pehrson family purchased the property for $5,500 in August 1959 from Floyd and Jewell Wilson.

Cliffewood House

A 3,442-SF home in Little Rock’s Cliffewood neighborhood sold for $685,000.

Alexandru Biris and his wife, Glediana, bought the house from Mary Browne.

The deal is backed with a 30-year loan of $411,000 and a five-year loan of $205,500 from Simmons Bank of Pine Bluff.

The residence previously was tied to a May 2013 mortgage of $462,000 held by Little Rock’s Bank of the Ozarks.

Browne purchased the property for $615,000 in August 2010 from Elizabeth and David Powell.

Maisons Abode I

A 5,183-SF home in The Maisons neighborhood of west Little Rock’s Chenal Valley development changed hands in a $635,000 deal.

Michael and Whitnee Bullenwell acquired the house from Bruce and Jennifer Milstein.

The deal is funded with a 30-year loan of $508,000 from First Security

Bank of Searcy. The residence previously was linked with a November 2013 mortgage of $500,000 held by Bank of America in Charlotte, North Carolina.

The Milsteins bought the property for $625,000 more than two years ago from Max and Jennifer Davis.

Maisons Abode II

A 5,152-SF home in The Maisons neighborhood of west Little Rock’s Chenal Valley development is under new ownership after a $615,000 transaction.

Christine Zihala purchased the house from Zareena Khan Tilley. The deal is financed with a 30-year loan of $492,000 from Dillard’s Federal Credit Union of Little Rock.

The residence previously was tied to a December 2013 mortgage of $385,300 held by Citibank of Sioux Falls, South Dakota.

The property was acquired for $582,000 in May 2009 from Bank of New York Mellon.

High-Rise Home

A 2,078-SF condo in downtown Little Rock rang up a $609,500 sale.

The Robert W. Lehmberg Revocable Living Trust bought the 14th-floor residence in the 300 Third Tower from Evan and Christine Olsen.

The property previously was linked with a February 2010 mortgage of $258,600 held by JPMorgan Chase Bank of New York.

The Olsens purchased the unit for $658,000 in May 2007 from 300 Third LLC, led by Jimmy Moses and Rett Tucker.

Kingwood Residence

A 3,531-SF home in Little Rock’s Kingwood Place neighborhood drew a $585,000 transaction.

Vincent Dunlap and his wife, Tonya, acquired the house from David and Jessica McElreath.

The deal is backed with a 30-year loan of $417,000 and a five-year loan of $80,250 from IberiaBank. The residence previously was tied to a November 2013 mortgage of $374,100 held by First Security Bank.

The McElreaths bought the property for $410,000 in March 2008 from William and Paula Tinsley.

Woodland’s Property

A 4,229-SF home in west Little Rock’s Woodland’s Edge neighborhood sold for $520,000.

Tyler and Lauren King purchased the house from Anthony and Brandy Dalby. The deal is funded with a 15-year loan of $416,000 from Focus Bank of Charleston, Missouri.

The residence previously was linked with an October 2012 mortgage of $545,000 held by SunTrust Bank of Atlanta.

The Dalbys acquired the property for $559,000 more than three years ago from HRH Builders Inc., led by William Darby.

Apartment Note

The owner of a 203-unit apartment project in Maumelle landed a $10 million funding agreement. Maumelle Ltd. of Germantown, Tennessee, obtained the 35-year loan from Prudential Huntoon Paige Associates LLC of Dallas.

The 11.8-acre Audubon Pointe development at 100 Audubon Drive previously was tied to a January 2008 bond issue of $6.3 million through the Pulaski County Public Facilities Board.

The location was bought for $190,000 more than 25 years ago from Maumelle Land Co., led by Dowell Naylor.

You Can Go Home Again: More Young Americans Living With Parents

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Living with a parent is the most common living arrangement for 18- to 34-year-olds in the United States, the first time on record that that has been the case, according to the Pew Research Center.

“In 2014, for the first time in more than 130 years, adults ages 18 to 34 were slightly more likely to be living in their parents’ home than they were to be living with a spouse or partner in their own household,” the center said in a report released May 24.

By 2014, 32.1 percent of young adults were living in the home of their parent or parents. That was greater than the 31.6 percent of young adults living with a spouse or partner in their own household. Fourteen percent of adults 18 to 34 headed a household in which they lived alone, were a single parent or lived with one or more roommates. And the remaining 22 percent lived in the home of another family member, a non-relative or in a group living arrangement, such as college dormitories.

The decline in the proportion of young Americans forming a household with a romantic partner is largely propelling this shift in living arrangements, the report said.

“Dating back to 1880, the most common living arrangement among young adults has been living with a romantic partner, whether a spouse or a significant other. This type of arrangement peaked around 1960, when 62% of the nation’s 18- to 34-year-olds were living with a spouse or partner in their own household, and only one-in-five were living with their parents.”

The Pew Research Center report cited a number of factors behind the change, among them:

♦ The postponement of marriage. “The median age of first marriage has risen steadily for decades. In addition, a growing share of young adults may be eschewing marriage altogether.”

 Employment and wage trends, particularly as they affect young men. “Employed young men are much less likely to live at home than young men without a job, and employment among young men has fallen significantly in recent decades. The share of young men with jobs peaked around 1960 at 84%. In 2014, only 71% of 18- to 34-year-old men were employed. Similarly with earnings, young men’s wages (after adjusting for inflation) have been on a downward trajectory since 1970 and fell significantly from 2000 to 2010. As wages have fallen, the share of young men living in the home of their parent(s) has risen.”

♦ The Great Recession and the modest recovery. “Initially in the wake of the recession, college enrollments expanded, boosting the ranks of young adults living at home. And given the weak job opportunities facing young adults, living at home was part of the private safety net helping young adults to weather the economic storm.”

Data Breaches on the Rise, Even in Arkansas

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Hacking is costing businesses millions more as sophisticated criminal networks determined to steal information for financial gain have replaced the individuals who were commonplace in the early years of the internet, and Arkansas is not immune.

Local experts say data breaches in the state are on the rise, following a global trend, but companies can prevent them with preparation and limit damage by having a plan for when they fall victim to a breach.

Mandy Stanton and Anton Janik of the Mitchell Williams law firm in Little Rock have formed a team to help clients protect their data.

“What the folks that have been doing the meta-analysis of this data protection issue are saying is that we have switched between the lone hacker, out there for laughs, trying to make a name in the hacker universe by saying, ‘Oh, look, I got this number of credit cards,’ to real identifiable criminal networks that are going after this information because it has real monetary value,” Janik said.

That value is $7.7 million, which is the average cost of a cybercrime per company, according to the Ponemon Institute’s 2015 Cost of Cyber Crime Study, sponsored by Hewlett Packard Enterprise of California.

Companies experiencing a breach could also face a cash flow interruption because the payment card industry might withhold reimbursements until the victims pay a fine for not being in compliance with data protection standards, said Drake Mann of the Gill Ragon Owen law firm in Little Rock.

The Ponemon study also found that the number of successful attacks per year per company had grown by almost half in four years, from 68 in 2012 to 99 in 2015, and the average time needed to resolve incidents had tripled to 46 days.

But a number of measures could reduce the average cost of a cybercrime per company a quarter, the study concludes.

In Arkansas, Janik and Stanton said, one of the most common cybersecurity schemes has been hackers spoofing the email of a CEO or CFO and requesting sensitive information, like W-2 data, from other executives or instructing that a check be cut.

Hackers have used information obtained through these means to file tax returns and snag the victims’ refunds, Janik said.

Janik’s solution is simple: If asked by email to provide sensitive information or to do something like cut a check, executives should call the person who sent the email to verify his or her request.

Last year, information on 700,000 U.S. taxpayers was stolen when the IRS was hacked and information on 25.7 million people was stolen when the Office of Personnel Management was hacked.

Training Is Key

The best way to avoid such breaches, local cybersecurity experts said, is to prevent them by training personnel to follow best practices (like not clicking on links in phishing emails and not inserting random USB flash drives into a work computer), testing them on these practices and looking for and addressing network vulnerabilities.

People are the weakest link, all agreed, and companies like iProv LLC of Little Rock are helping with that aspect by providing lunch-and-learn sessions for clients’ employees.

R.J. Martino, president and CEO of iProv, said his company steps in when regulations require a technical audit of a company’s data and the housing of that data and when a company recognizes that not focusing on cybersecurity is a business risk.

Vulnerabilities iProv and others may find include out-of-date software, unsecured access to devices, weak passwords and open ports (access points to the network a company may not be aware of), he said.

On the people side of things, Scott Pitcock, iProv’s security and vulnerability assessor, said weak passwords are what he sees most often. He suggests checking password strength with an online tool called HowSecureIsMyPassword.net. The tool shows users how long it would take someone to attain access through brute force — entering random passwords until one works. The longer, the better, Pitcock said.

Martino said proper processes and procedures also prevent breaches. IProv partners with law firms to compile documents laying those out.

Stanton, a former compliance officer for U.S. Bank and former counsel for Acxiom, is certified by the International Association of Privacy Professionals. Her team works on policies for companies and on contracts that spell out data protection requirements for vendors that prevent hackers from gaining access through them.

In the 2013 Target data breach in which information on at least 40 million customers was stolen, hackers gained access to the company’s network through an HVAC vendor and Target said recovery from the breach cost the retailer $252 million, Stanton said.

In addition, she said, hacking is always evolving, and the trend has been to attack the health care and financial sectors.

Aaron Gamewell, president and COO of Secure Banking Solutions, said 90 percent of all data breaches are caused by phishing email attacks that are designed to catch any person, but that banks have been subjected to more focused “spear-phishing” attacks, in which emails target groups of people with something in common.

State and federal regulators require banks to have strong protocols, so banks must be concerned about the additional risk of being shut down after a breach, he said.

Large banks are being attacked more frequently than small ones because “maximum take-home” is the hackers’ goal, Gamewell said.

But Chris Bates, CEO and president of The Computer Hut, which has offices in Little Rock and Lowell, said he hasn’t seen many targeted attacks. “It’s, generally speaking, the scattered approach where they send something en masse and hope that a handful of people open it.”

Gamewell said hackers are after money or information, but it’s more often the latter.

Information can be sold via the darknet, a computer network with restricted access that is used mostly for illegal peer-to-peer file sharing. Hacking can also be used to commit corporate espionage.

And Janik said corporate espionage is the next wave — actions like a hacker gaining knowledge of a merger before it’s announced, buying stock and making a fortune.

Companies Held Hostage

In addition to the CEO/CFO scam, ransomware attacks are gaining traction in Arkansas and elsewhere. In this kind of attack hackers encrypt a company’s files and demand that the company pay them to unlock the data.

Gamewell said the average ransom demand in 2015 was $500, to be paid in the form of bitcoin, a hard-to-trace digital currency that allows for virtual anonymity. But if the hacker knows the victim is a business, the demand could be for over $10,000 and up to $60,000, he said. (For more on ransomware, see Gamewell’s Expert Advice commentary, Ransomware, and a Particular Set of Skills.)

Hospitals and other health care facilities are especially vulnerable because ransomware attacks can cut off the quick access to patient records that is needed to provide time-sensitive care. Often, they’ll pay what is demanded to avoid deaths and lawsuits.

Mann, of the Gill Ragon Owen law firm, said paying the hackers is sometimes the best choice anyway because the amounts requested are typically less than $1,000, it’s an automated attack and often there is no legal recourse for the victims to pursue.

But Gamewell noted that paying a ransom doesn’t guarantee recovery of data that was hijacked.

Janik said companies that back up their data beforehand can simply wipe their network, restore it and avoid paying a ransom.

Pitcock, of iProv, added that there are online blogs that offer decryption codes for ransomware victims.

Still, experts said, companies should take a proactive, rather than reactive, approach to protecting their data.

Janik’s technical advice is to encrypt, salt and hash.

Salting makes encryptions stronger by adding extra information to a set of data, while hashing makes sets of data a uniform length. For example, all passwords could be hashed to 200 characters with salted information.

Janik said other tech solutions include having firewalls, anti-virus programs, rotating passwords, stronger passwords (10 or more characters, numbers and letters, capital and lowercased letters and symbols), removing access once someone has left the company and restricting what can be put on the network, like flash drives that could have been dropped in the parking lot by hackers hoping to gain access that way.

And Keith Jetton, the founder and chief technical officer of Procyon Solutions Inc. of Little Rock, said cloud-based programs do a better job of keeping software up to date versus traditional programs that allow for scheduled anti-virus scans. He said the cloud is always pushing updates and scanning. It is the most secure solution, if the technology is used properly, Jetton said.

Janik also suggested that employees working from home use a virtual personal network, which is an encrypted tunnel between their computer and the firm’s computer, and that employees use a separate program that can encrypt their emails, properly dispose of old files and use two-factor verification, like passwords plus codes that are texted to users or a security question users have to answer after their passwords are entered.

Layers of Protection

Bates agreed that several measures should be taken. “The biggest thing that I tell people is prevention and security and protection is layers. No one single thing is the end-all be-all of that silver bullet. There’s a whole litany of things that you really need to do.”

Those include having screensaver timeouts, security patches, practicing preventive maintenance, monitoring the network for suspicious file activity or to see if traffic is going out unusual ports and having anti-spam software that can eliminate phishing emails before people click on the malicious links in them.

Something else many companies are doing, Pitcock said, is a penetration test — paying someone to hack into their networks to show them where they are vulnerable.

Stanton said companies need to know what data they have, where it is and how critical it is and have standards to protect them from a breach, a plan for how to contain a breach and a notification policy and know the regulations and laws, like Arkansas’ Personal Information Protection Act, that they must follow.

Mann added that a company must designate someone as responsible for its data protection strategy.

He, Janik and Stanton said purchasing cyber liability insurance is yet another option, but Mann wasn’t keen on it. He said there is a lack of information to determine payouts. For a policy to be useful, it must be tailored, Mann said.

Janik acknowledged that many companies may not want to invest in preparation, but doing so is an attractive alternative to suffering the “astronomical” costs of a breach.

“There will be plenty of companies that will have the Ford Pinto approach, that will say, ‘We’ll deal with it when it happens,’” Janik said. “But there will be other companies that will be able to weigh this out and say, ‘What is my real estimated damage if something happens? What, and not just in reputation and in dollars, but in people time and aggravation, and what is that worth?’

“And so, doesn’t it make good business sense to, on the forefront, establish a good strong plan for hardware and software and people training and to keep up with it?”

First Security Bancorp Invests in CrossFirst

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First Security Bancorp of Searcy has added to its stake in an out-of-state banking concern: CrossFirst Holdings LLC of Leawood, Kansas. The $2.65 million transaction boosts FSB’s direct ownership from 9.78 percent to 10.8 percent.

CrossFirst recorded total assets of $1.7 billion at March 31. It generated net income of more than $8.1 million in 2015 and $5.5 million in 2014.

CrossFirst also operates branches in Wichita, Kansas; and Oklahoma City, opened in 2012. A Tulsa office was added to the mix in 2013.

Reynie Rutledge, chairman and CEO of the nearly $5 billion-asset FSB, has served as a director at CrossFirst since its launch in October 2007.


Fifth Amendment Rights Behind One Bank & Trust Trial Delay

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As you may have read in the Arkansas Democrat-Gazette, the trial of former One Bank & Trust executives Brad Paul and Mike Heald, which was supposed to start last week, has been delayed.

Here are some more details for the legally curious.

It seems that the unusual plea deal struck by their former co-worker Gary Rickenbach is gumming up the works.

Rickenbach offered back in November to plead guilty to a greatly reduced charge of failing to report a felony, but only if U.S. District Judge Kristine Baker would agree to a sentence of probation rather than prison.

But Baker has not decided whether to accept that offer. (And back in March, Rickenbach and his lawyer, Bill James of Little Rock, asked her not to sentence him until after Heald and Paul were tried. That motion was denied as moot.)

As the start of the trial approached, Baker herself started to wonder about Rickenbach’s status. Since his plea has not been accepted, he is technically still a co-defendant. And as such, he still has the Fifth Amendment right against self-incrimination.

And that created a conflict with the U.S. attorney’s plan to use Rickenbach as a witness against Heald and Paul, which was also part of his pending plea agreement.

The prosecutor in the case, Assistant U.S. Attorney Angela Jegley, ultimately joined Rickenbach in asking for the trial to be delayed and agreeing that he still has his right to remain silent. But she pointed out that defense counsel for Heald and Paul (Gary D. Corum and Lloyd W. “Tré” Kitchens III, respectively) waited an awfully long time to bring it up.

So now the trial has been reset for July 11. And since Rickenbach asked for it, Judge Baker specifically ordered that the delay not be counted when considering his right to a speedy trial.

But the defendants who were supposed to be tried last week objected to the delay, Rickenbach not testifying being a good thing from their point of view. So, Baker said, Heald and Paul “may address their rights to a speedy trial in future filings with the Court.”

Doyle Rogers Family Sells Interest In Citizens Bank

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A founding family of Batesville’s Citizens Bank has exited the ownership picture in a $13.7 million transaction.

The Doyle Rogers family sold its 25.82 percent stake in the $722 million-asset lender to a descendant of another founding family: poultry pioneer J.K. Southerland.

The specific buyer is the Jeffery F. Teague & Sarah Shell Teague Joint Revocable Trust. Jeff Teague of El Dorado is the chairman of Citizens Bank.

The acquisition builds the Teague family holdings in Citizens Bancshares of Batesville Inc. to 44.39 percent, the largest block of stock.

Doyle “Rog” Rogers Jr. will remain on the board of directors. His late father, Doyle Rogers Sr., helped establish Citizens Bank in 1953.

The Teague-Rogers transaction re-flects a minority-shareholder multiple of about 0.8 times book value as of March 31.

Branching Out I

Citizens Bank intends to expand its south Arkansas footprint with a new branch in Arkadelphia.

The current loan production office at 2710 Pine St. will serve as temporary quarters until replaced by a new full-service location.

“I’m excited because I lived there for 14 years and have a lot of friends there,” said Phil Baldwin, president and CEO of Citizens.

Most of his time in Arkadelphia was spent working at Southern Bancorp Inc. Baldwin joined the rural development bank as its chief financial officer in 2000 and served as president and CEO from 2002-11.

In addition to his familiarity with the market, market flux caused by a $216 million transaction attracted Citizens Bank to Clark County.

That deal was the May 2014 purchase of the $1.2 billion asset Summit Bancorp Inc. of Arkadelphia by Little Rock’s Bank of the Ozarks Inc.

Baldwin hired a team of Summit-Bank of the Ozarks staffers to land disaffected former Summit Bank customers in search of a new banking home.

The recently announced $1 billion Shandong Sun pulp mill plant in the Clark County Industrial Park south of Arkadelphia adds juice to the move by Citizens.

Last year, the bank opened two branches in Hot Springs and one in Fayetteville and gained five more in northwest and southeast Arkansas as part the Parkway Bank acquisition.

Citizens continues on its march toward a total assets goal of $1 billion.

Farmers Bank & Trust Branches Out to Wilson

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Farmers Bank & Trust of Blytheville is deepening its market penetration in Mississippi County with a Wilson location. The branch affords an opportunity that belies the size of the community (population 900).

Randy Scott, president of the $448 million-asset lender, said the proximity to the nearby Big River Steel complex proved too alluring to pass up.

“That was the deciding factor,” he said. “It gives us a presence in the southern part of the county, too.”

It also didn’t hurt that the sole shareholder in Farmers Bank & Trust, Gaylon Lawrence Jr., has substantial interests in and around Wilson.

In fact, Lawrence owns most of the town since his family bought the extensive land holdings of the heirs of Robert Edward “Lee” Wilson in December 2010.

The branch buy is a real estate-only deal with BancorpSouth Bank of Tupelo, Mississippi. The accounts will be consolidated in its Osceola branch.

As part of the transaction, the Wilson branch will close on June 24 and reopen under the Farmers Bank & Trust banner on Oct. 1.

The 55 Park Ave. branch was once home to the Bank of Wilson, which later morphed into American State Bank. The Wilson family sold the bank to BancorpSouth in December 2005 in a $44.7 million stock-cash deal.

Businesses in Arkansas Confront Shooter Scenario

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The alarm rang out on a stormy Sunday night, rattling employees at the University of Arkansas for Medical Sciences in Little Rock and conjuring up two words that strike fear in modern American life: “active shooter.”

The “Code Black” alert in early May was a false alarm. No gunman was active. But the fact that such an alarm exists at UAMS attests to how the world has changed since the Columbine attack of 1999 and the long string of shootings that have followed at schools, universities and workplaces.

Many Arkansas businesses and institutions now have reaction plans for mass shootings, and some training goes beyond the federal government’s basic run-and-hide recommendations.

Several companies, including the electric utility Entergy, have mandatory programs to prepare employees for cases of violence, and two security firms are licensed by the state to provide active-shooter training to private enterprises, according to the Arkansas State Police.

One of those firms, Get Trained Be Ready of Searcy, teaches concealed-carry permit holders how to react with lethal force if faced with a gunman at the workplace, in church or elsewhere.

Schools, government agencies and hospitals, which often have their own security forces, were among the first to adopt mass-shooter procedures. But now office buildings, retail centers and businesses are increasingly preparing.

“Within the last year we’ve made an extra effort to teach our employees what to do if they are faced with an active shooter situation,” Entergy spokesman David Lewis said. “Our concerns were driven not by anything about Entergy in particular, but just by the realization that these things could happen anywhere, including here.”

Entergy’s 14,000 employees are required to undergo computer-based training. “If you ignore it, you’ll get an email that says you’ve got 30 days, or whatever, to take this course,” Lewis said. “The basic instructions are simple: Run, hide, fight, in that order.”

Most programs for businesses are based on recommendations from the Department of Homeland Security, which advises people to follow a planned escape route and immediately evacuate. If escape is impossible, it suggests hiding out of the shooter’s view, locking doors or barricading entry points and staying silent.

Only as a last resort does it recommend fighting — when lives are in imminent danger. In those cases it suggests improvising with actions like throwing objects at the gunman, rushing him or using a fire extinguisher as a weapon.

“I have given many presentations that all come down to run-hide-fight,” said Kevin Davis of D2 Security Solutions of Searcy, one of the state-licensed training consultants. After presenting a video based on government recommendations, he focuses on how to keep threats out, and on determining the best escape routes for employees, customers and others.

“Run is always the best option, and knowing your best way out is crucial. Even in running, you have to give yourself options. If you can’t reach a door, you might break out a window,” Davis said.

When escape is impossible — he gave examples of a teacher in charge of students or a nurse responsible for patients — “we teach people how to barricade themselves,” said Davis, a full-time public safety official at Harding University in Searcy. “Find a room where you can lock the door, or if it can’t be locked pile as much stuff in front of it as possible. Tables, chairs, shelves. Then turn the light out and find a corner.”

Malls, Colleges, Hospitals

Melissa Boyle, marketing director for Outlets of Little Rock on Bass Pro Parkway, said the 325,000-SF shopping center takes “several proactive measures to promote a safe environment” and ensure preparedness. She said all security officers, contracted through United Security Inc. of Cambridge, Massachusetts, go through training, but she was wary of offering specifics.

“Due to the sensitive nature of safety and security,” she said, “we do not disclose our program in detail as it might compromise our efforts.”

She added that the mall has a close relationship with the Little Rock Police Department and other public agencies, but she didn’t specify whether employees of the center’s approximately 75 stores receive instructions on what to do to safeguard themselves or customers.

She said that firearms, other than those carried by federal, state and local law enforcement officers, are strictly prohibited.

Of course, most private businesses have the right to allow their employees to carry weapons, and robbery-prone sites like banks, pawnshops and liquor stores have long had armed workers on duty.

But all colleges and universities in Arkansas prohibit the carrying of concealed weapons by students or staff members, excepting law enforcement officers. A 2013 state law allows staff members with concealed-carry permits to be armed on college campuses, but the law also allows campus governing boards to opt out, thus banning concealed weapons. So far, all of the state’s two- and four-year colleges and universities have opted out, with the University of Arkansas System board of trustees voting 7-2 late last month to keep weapons out.

Hospitals like CHI St. Vincent also forbid guns, and hope to keep that policy even as gun rights activists push for allowing people with concealed-carry licenses to be armed in almost all public places.

CHI St. Vincent President Polly Davenport and her security chief, Paul Gaskin, gave their rationale. “We have to keep this a safe and sacred place,” Davenport said. “We don’t allow the public to bring weapons in, and our hospital association would speak out for keeping it that way.”

Gaskin said that his security force, 30 strong, not counting off-duty police officers who fortify staffing, is unarmed. Their first response to a shooter would be to evacuate employees and patients and to put out warnings by email, text and overhead public address systems. All of the hospital system’s 4,500 employees are trained annually on how to respond to violence, and its orientation program also covers the topic.

Davenport said CHI St. Vincent’s four hospitals and 73 clinics take workplace violence very seriously. “This has happened everywhere, and it has happened in our company at a CHI facility in Oregon. I feel that we are very prepared, but it is a concern that we can’t ignore.”

UAMS, which as an academic medical center has its own police department, has about 40 certified officers who are all trained to respond to any active shooting on campus.

UAMS Police Chief Robert Barrentine said his officers carry firearms, and several are active-shooter response instructors for other law enforcement. “In this kind of situation, first we would be called, and we would respond immediately,” Barrentine said. “If somebody comes in with a gun, we’re going to engage them.”

In the meantime, the sirens would be activated, email and text alerts would go out and announcements would be made on hallway address systems and on digital signs in heavy-traffic areas like cafeterias. The goal is to convey the threat to all of the 8,000 Little Rock employees, 2,000 students and 2,000 average daily patients and visitors — across the sprawling campus. Since the May 8 malfunction, the siren sytem has been repaired and tested regularly.

“We also work closely with the media to get the word out,” Vice Chancellor Leslie Welch Taylor said. “Our clinical folks know what to do for patients and staff. UAMS is a safe place, and we keep the best interest of students, patients, visitors and staff in mind. We want people to know they can come here, get an education and the best care and never worry about safety from violence.”

Taylor said that all new employees receive active shooter response training during orientation and that all staff members and students are informed on best procedures.

“Just this year, our police department has made 30 active shooter presentations to 3,200 employees and students,” Barrentine said. “We’ve also had 642 employees trained online by [UAMS’] Occupational Health & Safety.”

Judy Williams, associate vice chancellor for communications and marketing at the University of Arkansas at Little Rock, said the higher education world has emphasized mass shooting preparedness since the 2007 massacre at Virginia Tech, where 32 people were killed and 17 wounded in the deadliest shooting by a single gunman in U.S. history.

UALR, like UAMS, has an armed, trained police force and an emergency alert system that employs texts, emails, phone calls and an on-the-ground speaker system. “All our officers are highly trained, and they lead the way in offering active shooter training for staff, faculty and students.”

Training isn’t mandatory for UALR’s 12,000 students and nearly 2,000 employees, Williams said, but “all residence assistants, housing directors and housing administrators receive active shooter training.” About 1,400 students live on campus, Williams said.

Private Businesses

An armed response by on-site security officers would be costly and impractical for most private businesses, but security consultant and firearms trainer Robert Jennings, who founded Get Trained Be Ready, offers other options for fighting firearms with firearms.

“We sometimes try to narrow things down to an individual level,” said Jennings, who teaches Combat Focus Shooting and counter-ambush measures for concealed-carry permit holders. “Two or three guys who work in this office, or a dozen or so members of that church. We’re trying to get these folks trained” to engage a shooter, he said.

“Businesses are increasingly reviewing whether to allow employees to conceal carry,” Jennings continued. “All our data shows the faster that somebody who is armed and trained can engage, the sooner it’s over.

“So on the small-business level, owners are starting to allow the staff to carry, and we see them being interested in counter-ambush training. How can I as one armed person defend myself and my co-workers? One armed person can make a tremendous difference.”

Police professionals like Barrentine, however, caution that more gunmen might equal more confusion. “The problem is that the police might not know who is the good guy and who is the bad guy,” Barrentine said.

Lt. John Breckon of the North Little Rock Police Department, who has taught active shooter response courses at government offices, businesses, warehouses and factories, said that an armed person confronting a shooter faces daunting choices. “Is there a backstop? If not, do I shoot anyway? Can I hold the gun still enough while adrenaline is pouring through my system?”

Breckon said that studies have shown that trained police officers fire several rounds for every round that hits its target. He added that businesses might face liability issues if an employee’s shots go astray, and that many mass shooters have been minors, including one who was 11. “Are you mentally prepared to shoot someone? A child?”

Yet Jennings, a National Rifle Association instructor who began offering concealed-carry training a decade ago, said that a trained and armed defender could neutralize the threat before officers arrive. “The whole time a shooter is active in a gun-free zone, people are still being shot.”

He summarized with a familiar Old West saying about Samuel Colt, developer of the Colt revolver: “God made men; Sam Colt made them equal.”

BKD Agrees to $4 Million Settlement with FDIC

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If you’ve been wondering how much the accounting firm BKD LLP agreed to pay the Federal Deposit Insurance Corp. to settle a federal lawsuit tied to the 2010 failure of First Southern Bank of Batesville, your Whispers staff has the answer: $4 million.

“BKD has denied and continues to deny that it has any liability in the” lawsuit, the settlement and release agreement reached last month said.

The case, you may recall, was settled just days before a trial was scheduled to start in U.S. District Court in Little Rock. The FDIC had sued BKD in 2013 for failing to uncover the massive fraud that led to the bank’s collapse.

The FDIC’s civil suit accused BKD of negligence and breach of contract and suggested damages of as much as $22.9 million.

“The case was hotly contested, but BKD certainly continues to stand by the work we did,” Timothy McNamara, the chief legal officer for BKD, told Whispers last week. “However, we made a business decision after lengthy negotiations to reach a compromise settlement to avoid the risk and the tremendous expense associated with litigation.”

BKD, which is headquartered in Springfield, Missouri, has a large office in Little Rock. It argued in its court filings that the bank’s own officers could have shut down former Little Rock attorney Kevin Lewis’ scam almost two years earlier had they done their jobs.

The FDIC, as First Southern’s receiver, said in its court filings that the firm should have caught the red flags when its accountants audited the bank between June 2009 and June 2010.

Lewis, 47, pleaded guilty to one count of bank fraud for a complex, multiyear scheme in which he manufactured phony property owner improvement district bonds, sold them to banks as investments and used them as collateral on bank loans. He is serving a 10-year sentence in federal prison at Memphis. Scheduled for release in January 2021, Lewis also was ordered to pay $39.5 million in restitution to nine banks in what is considered the largest fraud ever prosecuted in Arkansas.

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