David George doesn’t apologize for using scare tactics when he gives seminars at part of the Investor Education Program for the Arkansas Securities Department.

George worked 30 years in the financial industry, including 22 years running branches and compliance for Morgan Keegan in Memphis, so he knows a thing or three about retirement saving and wealth management. People always ask him for stock picks, but George quickly sets them straight on what he is talking about.

“My comeback is we’re not here to talk about picking tops and picking bottoms,” said George, 63. “It’s what are you going to be needing when you’re 65 or 70? We get into scare tactics: your price of procrastination. That’s a majority of us who have underfunded our retirement. What we try to do, for lack of a better word, is to scare people into looking at setting themselves up for a decent retirement.”

As a state agency, the Securities Department spends a lot of time reaching out to other state employees, but George said his seminars and advice are available to any company or individual who is interested. George said he understands full well how intimidating financial investments can appear to a layperson, but he said retirement planning doesn’t have to be complicated.

Today’s employees can’t afford to delay the decision, though, which is why it’s important to George that he and private and public companies do what they can to inform employees.

“If you’ve put it off, get it set up tomorrow,” George said. “One of the questions they all ask is who should I talk to about this? I immediately tell them they need to talk to a professional. They’re going to give you the best idea if you lay out what you’re expecting and your timeframe. It’s all guidance.”

Big Company Tools

The larger the company the more resources available for in-house retirement accounts. Wal-Mart Stores Inc. of Bentonville has a 401(k) that is available to all its full-time and part-time employees the day they start work.

After one year of employment, Wal-Mart matches up to 6 percent of an employee’s 401(k) contributions. Offering 401(k) and providing stock purchase plans — as Wal-Mart also does — are nice benefits, but the retailer has a system set up to help its employees make more informed choices about how to invest their contributions.

Wal-Mart spokesman Kory Lundberg, the director of national media relations, said the company gives employees access to HelloWallet through its WalmartOne intranet portal. HelloWallet allows employees to get a quick analysis of their financial situation and options on how to plan for the future.

Lundberg said linking HelloWallet with WalmartOne made the information easily accessible to Wal-Mart associates, who regularly use the portal to check things such as pay stubs and work schedules.

“It will help you do a quick financial assessment and give you some ideas on how to help your savings grow,” Lundberg said. “You can game plan about what makes sense for you and how you’re able to do it. You can go back over time and make adjustments based on what you’re looking for and what you need. There’s a lot of good information in there that explains what this is. We try to do as much as we can to get people this information because there are some questions out there.”

Lundberg said the WalmartOne site also has information about such topics as opening checking accounts, setting up 529 college savings plans or building an emergency fund. Associates can also talk with store managers, personnel directors or members of the human resource department with additional questions.

“Retirement planning and wealth management planning are a part of the overall package that we offer folks to make Wal-Mart an attractive place to come work,” Lundberg said. “We are always looking at how can we make sure the benefits we are offering in wealth management are competitive and relevant.”

Small Company Needs

Lisa Bridgers is the senior vice president of talent acquisition and HR at Rockfish Interactive in Rogers, a subsidiary of WPP Digital. Bridgers said being a part of WPP, an international company, allows Rockfish to have benefits not available to smaller companies.

Through WPP, Rockfish has retirement accounts with the Vanguard Group, an investment group that manages trillions in assets. More important than just having a 401(k) is the access to Vanguard’s financial advisers, Bridgers said.

“The depth of expertise someone needs to effectively help an employee doesn’t exist in a general practitioner on the HR side,” Bridgers said. “Without that ability to reach out and help people understand what it is, it really doesn’t mean anything. Small companies can — and I’ve seen this more than in the past — host sessions with someone who is a financial planner so they can understand basic investment strategy.

“This might be their first exposure to having to think about planning for their future. The questions I get are: ‘How much am I supposed to save? How do I know what I’m saving is going to grow to what I need when I retire?’ Those are questions that, truly, only experts in the field are able to answer.”

Bridgers then learned of the Investor Education Program that George manages for the Arkansas Securities Department and said it would be a great asset for companies that would not otherwise have access to a financial expert.

Another path for smaller companies is to join a multi-employer plan. Bob Arthur of Incredible Influence is an independent representative for Employer Advantage of Joplin, Missouri, which operates an MEP that includes more than a dozen northwest Arkansas companies.

Arthur said Employer Advantage works with John Hancock Financial and has approximately 500 clients.

“For so many people who are employed by a small company, many times they don’t even have a retirement plan option,” Arthur said. “There are companies out there that have a 401(k) in place that a small-business owner can tap into. They want to be able to offer things to their employees to be competitive. They can’t do it on their own. I have those conversations fairly regularly. I see a lot of small-business owners who don’t offer anything but they want to.”

Did you know Rock Bancshares Inc. of Little Rock, the parent company of Heartland Bank, is raising $3 million?

The money will be used “to meet the working capital needs of the holding company while we’re preserving the capital of Heartland Bank,” said Judy Lawton, president of Heartland Bank.

She said the bank is working “through our oil- and gas-related challenges it faces.”

At June 30, the $227 million-asset bank had a net income of $530,000 for the year, compared with $3.7 million for the same period a year ago.

Its assets at June 30, 2015, were $244.2 million.

“We have had an increase in problem assets,” Lawton said.

As of last week, Rock has raised only $200,000 of the $3 million, according to its filing with the U.S. Securities & Exchange Commission.

Lawton said that she’s talking with the bank’s current investors to generate the money.

The last time Rock Bancshares had an offering was in 2011.

That offering was for $3.5 million, which fully sold.

Being a trustee of our company retirement plan reminds me of the Biblical character Job, who asked, "Where shall wisdom be found and where is the place of understanding?”

Retirement plan administration requires understanding of the continued regulatory oversight by Congress and the Department Of Labor, while consulting with a retirement plan attorney and Registered Investment Advisors provides wisdom.

When Bell and Company started in 1982, I didn’t worry about retirement. My wife Lee and I were just trying to pay the mortgage and truck payment. I remember going to the North Little Rock post office each week and there would be one client's check for the work done the previous week, and for that we were thankful.

Over time, like many businesses, ours grew and I began to think about how we would share our success with the staff that contributes to our success.  

As entrepreneurs, we have choices among what happens to profit, spending, paying of taxes and reinvestment. Our firm, like many, has opted to share profits with all staff members through a generous bonus program. We offer a match of 5 percent if a staff member contributes 5 percent of his or her pay. Over time, young professionals who dedicate the maximum contribution over the course of their work life, along with the 5 percent match, will become quite wealthy. But with the generosity of a company retirement plan comes responsibility.

As trustees of this small business retirement plan our intent is generous, however regulations by acts of Congress and its enforcement arm the Department Of Labor have created regulatory burdens on our social engineering concept of creating wealth. We have recently retained a retirement plan attorney and an outside consultant who specializes in plan litigation to review our duties as trustees to ensure that we are compliant with the law. As a result of 2012 regulations, our broker is now required to advise us as to what revenue he is receiving from third parties, and we understand more about fee sharing arrangements, loads, 12b-1 fees and marketing fees, and that is a good thing. But as a result of fiduciary regulations this year, the broker advisor is increasingly unwilling to assume risk of fiduciary duty, and has shifted more responsibilities on us as trustees. That has created more expense and headache and fewer mutual fund options for us as trustees, and that is a bad thing.

We also understand the attempt to shift the burden of risk to us as fiduciaries if a regulatory agency does not agree with our broker's suggestion to our employees as to what mutual funds to buy, which may be funds offered by that particular institution to the exclusion of other funds.  

All this being said, we sometimes feel that our honest intent to share wealth with our employees is being caught up (and possibly diminished) in the regulatory world of mutual funds and brokerage houses and their often hard to understand fees and costs.

If you’re a trustee of a small business retirement plan, you may want to do a review of your plan with your attorney or an independent plan advisor to ensure you're fulfilling the trustee's role in the new world of retirement plan regulation.

Businesses, especially small businesses, have limited resources within the business to address risks and challenges, and the prospect of involving someone outside the business causes privacy concerns. Attorney-client privilege is a unique aspect of the attorney relationship that empowers a business to seek counsel while maintaining confidentiality. 

The privilege protects both the communication from the business to the attorney and the attorney’s communications to the business. The purpose of the attorney-client privilege is to encourage and promote open and honest communication with legal counsel. 

Understanding how the attorney-client privilege works is important for businesses of all types and sizes. Here’s three key things every business should know about attorney-client privilege.

1. Communications related to legal issues are protected.

The privilege applies where legal counsel is requested by the business and the advice provided by the attorney relates to the legal issue. For example, if a business seeks legal advice related to whether a term in a contract is enforceable under the laws of Arkansas, that communication along with the advice rendered is protected by the privilege. 

Sometimes attorneys are called upon for other types of advice that are more of a business nature, such as whether the provisions of a contract meet certain business objectives. While an attorney who is familiar with the business’ objectives can provide valuable input on strategy and business decisions, it is important to understand that these types of communications are most likely not protected by the attorney-client privilege. Key to this distinction is whether the advice sought requires legal expertise.

Businesses, as well as their attorneys, should be mindful of this distinction between legal and non-legal advice, and carefully consider how they frame their communications.

Where the business expects the communication to be protected by the attorney-client privilege, the communication should reflect that the business requested legal counsel, and the advice provided by the attorney should be limited to the legal issue. The attorney can still provide the business advice, but it should be handled through a separate communication without the expectation of privilege. 

2. Communications are privileged — not the underlying facts.

When a business consults an attorney for legal advice and provides him or her documents to review, the nature and substance of the communication with the attorney are protected by the privilege. The business is protected in the sense that it cannot be compelled to answer questions about what documents were provided to the attorney or what advice was rendered. 

But this does not mean that a business can shield records from disclosure by simply providing them to an attorney for review. The business records are not protected from disclosure by the privilege —only the communications with the attorney about the records is entitled to protection.

3. Disclosure to third parties waives the privilege.

The attorney-client privilege does not protect communications disclosed to someone outside the attorney-client relationship. 

For example, if a business has its accountant or another type of consultant sit in on meetings with the attorney, most likely those communications will not be protected from disclosure. 

Likewise, a business must pay attention to which employees participate in the communications. As a general rule, for attorney-client privilege to apply, only employees involved with the subject matter of the legal issue being discussed may participate in the communications. This limitation means that businesses and their attorneys must pay careful attention to who (within and outside the business) is being included on communications. 

In instances where separate expertise (such as tax, engineering, technology, etc.) is required in connection with the legal advice requested, it is often preferred for the attorney to hire the consultant instead of the business. So long as the attorney has been requested to provide, and is providing, legal counsel, the work of consultants on behalf of the attorney is protected by the privilege. 

The attorney-client privilege is a valuable right for businesses — especially small businesses where internal resources are limited. When understood and handled correctly, the privilege allows a business to address its challenges and learn its rights without fear that the information will be subject to unwanted disclosure.

Rodney Moore, an attorney of counsel with the Wright Lindsey & Jennings law firm in Little Rock, represents clients in the health care, banking, technology and insurance industries. Email him at rpmoore@wlj.com.

Mike Malone announced he will leave the Northwest Arkansas Council where he has served as president and CEO of the nonprofit since 2006.

Malone will stay with the council until mid-September when he will being working with Steuart and Tom Walton. The council said a committee led by Tyson Foods Inc. CEO Donnie Smith will soon begin a search for a new CEO.

"Everyone knows how much I've enjoyed my work at the Northwest Arkansas Council over the past decade," Malone said. "I will miss it, but I'm very excited about taking on new challenges that further advance northwest Arkansas  as one of the best places to live and work."

Malone worked at the White House in a variety of positions for six years during the Clinton Administration and also worked in both houses of the U.S. Congress before he replaced Uvalde Lindsey as CEO. The council works with business and community leaders to advance regional economic and educational interests. 

"We will work hard to find just the right person," Smith said. "The council's leader must be a convener, an ambassador, a diplomat and a peacemaker. He or she will need to be cognizant of how the decisions we make today impact the region’s long-term future, and our leader must be sensitive to what’s best for northwest Arkansas as a whole rather than what's best for any individual community."

A 69-room hotel in North Little Rock weighed in at $5.15 million. CDRN NLR LLC, led by Ishverbhai Govind, purchased the Holiday Inn Express at 4306 E. McCain Blvd.

The seller is Kilpatrick Hotels Two LLC, led by G.T. Kilpatrick. The deal is backed with a three-year loan of $4.4 million from Capital Bank of Little Rock.

The 1.5-acre development at 4306 E. McCain Blvd. previously was linked with a September 2014 mortgage of $4 million held by Progressive Bank of Monroe, Louisiana.

Kilpatrick bought the property for $6.8 million in June 2008 from McCain Hotels LLC, led by Rajesh Mehta.

MedExpress Purchase

A 4,667-SF medical clinic changed hands in a $2.3 million transaction.

Damart Holdings LLC of Camarillo, California, bought the MedExpress at 12300 Chenal Parkway from Quattro Little Rock LLC of Oakbrook, Illinois.

The deal is financed with a 10-year loan of $1.4 million from Bear State Bank of Little Rock.

Quattro purchased the 0.79-acre former TLC Daily Rental development for $875,000 in May 2015 from the Tyrell Family Living Trust, led by Becky and Brent Tyrell.

Dollar Deal

A 10,792-SF store in Jacksonville tipped the scales at $1.25 million.

Nick and Sharron Linner of Escondido, California, acquired the Dollar General at 2005 Old Military Road from Yellow Store Holdings LLC, led by Kevin Huchingson. The deal is funded with a 10-year loan of $300,000 from Wells Fargo Bank of Sioux Falls, South Dakota.

The 1.38-acre development previously helped secure a January 2012 mortgage of $3.12 million held by Metropolitan National Bank of Little Rock. Yellow Store bought the project for $1.1 million more than four years ago from PB General Holdings (Jacksonville) LLC, led by Leonard Boen.

Taco Transaction

A 2,082-SF Taco Bell in downtown North Little Rock served up an $890,000 sale. Grizzly Bear Investments LLC of Buena Park, California, purchased the 901 E. Broadway project from David Walser and Barbara Greenfield.

The 0.62-acre development previously was tied to a June 2013 mortgage of $500,000 held by First Security Bank of Searcy.

Walser and Greenfield acquired the property for $710,000 in September 2007 from CPCG KM AR 2 LLC of Los Angeles.

Dealership Land

A 6.31-acre commercial site in Sherwood is under new ownership after a $405,000 transaction.

North Little Rock Buick GMC Inc., led by Jamie Cobb, bought the land on Newman Drive behind Sam’s Club. The seller is KLBCG LLC, led by Karl Goshen.

The land was assembled in two deals with an investment group led by James Dietz and Hershel Bowman, $123,000 in January 2004; and RJR Lots LLC, led by Retha Jeanette Roberts, $167,000 in January 2013.

Other investors in the Dietz-Bowman group included Douglas W. Ashcraft; CBM Construction Co., led by Clark McGlothin; Dennis Jungmeyer; Hal Matthews; Rablaco LLC, led by Tom Cory; R-4 Enterprises Inc., led by Raymond Roberts; Seymour Real Estate LLC, led by Mike Seymour; Dow Worsham II; and Arkansas Precast Corp. of Jacksonville.

Rental Acquisition

An apartment building in the Hillcrest area of Little Rock rang up a $312,000 sale. C.A.M. AR LLC, led by Cody and Anna McGrath, acquired the 1117 Kavanaugh Blvd. project.

The seller is K-Ed LLC, led by John Simmons Jr. and Brenda Simmons. The deal is backed with a six-month loan of $395,250 from First Security Bank.

The 0.18-acre development was bought for $32,000 in October 1971 from S.G. Catlett Jr., and his wife, Betty.

Edgehill Manor

A 4,667-SF home in Little Rock’s Edgehill neighborhood weighed in at $1.8 million.

Donald and Lucinda Phelps purchased the house from John and Amber Meadors. The deal is financed with a one-year loan of $1.4 million from BancorpSouth Bank of Tupelo, Mississippi.

The residence previously secured a July 2005 mortgage of $2 million held by Pulaski Bank & Trust of Little Rock.

The Meadors family acquired the property for $2 million more than 11 years ago from Gene Cauley.

Rural Residence

A 4,525-SF home in west Pulaski County drew an $880,000 transaction.

Mark and Rhonda McMurray bought the house from Richard and Patricia Farnsworth. The nearly 5-acre spread previously was linked with a September 2011 mortgage of $417,000 held by Regions Bank of Birmingham, Alabama.

The Farnsworths purchased the property for $779,000 nearly five years ago from Michael and Carolyn Boshears.

Robinwood Abode

A 3,895-SF home in Little Rock’s Robinwood neighborhood sold for $640,000.

Cynthia and Becky Gillespie acquired the house from Thomas Buchanan III. The deal is funded with 30-year loans of $417,000 and $95,000 from Bank of Little Rock Mortgage Corp.

The residence previously was tied to a January 2014 mortgage of $479,600 held by Regions Bank.

The property was bought for $635,000 in November 2011 from David D. Henry.

Condo Exchange

A condominium swap in downtown Little Rock was valued at $550,000.

B. Finley Vinson Jr. and his wife, Nancy, traded a 1,563-SF unit on the 17th floor of the River Market Tower for a 2,185-SF unit on the 11th floor.

Their trading partner was RMT II LLC, led by Jimmy Moses and Rett Tucker.

RMT sold the 17th-floor condo at 315 Rock St. for $503,333 to Joseph Griffith. The Vinsons purchased the space for $446,000 in February 2014 from River Market Tower LLC, led by Moses and Tucker.

The development is linked with April 2014 mortgages of $18.6 million held by First Security Bank and $3.3 million held by Citizens Bank of Batesville.

The 1.2-acre site was acquired in October 2005 as part of a $5.08 million deal with the Arkansas Teacher Retirement System.

Courts House

A 4,222-SF home in The Courts neighborhood of west Little Rock’s Chenal Valley development changed hands in a $528,000 sale.

John and Noemi Ramsay bought the house from Lisa and Joel Poythress. The deal is backed with a 30-year loan of $501,600 from Bank of America in Charlotte, North Carolina.

The residence previously was tied to a May 2014 mortgage of $402,000 held by Cartus Home Loans LLC of Mount Laurel, New Jersey.

The Poythress family purchased the property for $502,500 more than two years ago from Donald Cottingame II and his wife, Tonya.

Multifamily Refinance

The owner of an 80-unit apartment project in North Little Rock landed a $6.3 million funding agreement.

Ridge Road Village Ltd. of Frisco, Texas, obtained the 40-year loan from Dwight Capital LLC of New York.

The 6.88-acre Ridge Road Village Apartments development at 4748 Ridge Road previously was linked with a March 2010 mortgage of $6.3 million held by Amerisphere Mortgage Financial LLC of Denver.

The limited partnership acquired the location for $440,418 in September 2004 from the North Little Rock School District.

Seven-Digit Construction

Infrastructure Upgrade    $1,773,000
USAble    
320 W. Capitol Ave., Little Rock
Baldwin & Shell, Little Rock

Renovation    $1,200,000
United Cerebral Palsy    
8121 Distribution Drive, Little Rock
East Harding Inc., Little Rock

Amy Szadziewicz has been promoted to vice president of quality and food safety at OK Foods Inc. of Fort Smith, and Brent Glasgow has been promoted to vice president of operations. Both are previous employees of Pilgrim’s Pride Corp. of Greeley, Colorado.

Szadziewicz has more than 17 years of experience in the poultry industry, and Glasgow has worked in the industry for some 12 years in various states.

Dr. Marc Denton Stam has joined Sparks Cardiothoracic & Vascular Surgery as a physician for the Fort Smith area. Denton previously practiced cardiovascular surgery at St. Anthony’s Hospital in Denver.

Dr. Thanh Tan Le has also joined Sparks Clinic as a family practice physician at Alma Family Medical Clinic. Le graduated from the University of Arkansas for Medical Sciences in Little Rock and completed a family practice residency at UAMS Northeast in Jonesboro.

Megan Nichols has joined BancorpSouth in Fort Smith as a commercial loan officer.

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

I hope you got a chance to read Senior Editor Mark Friedman’s law column last week, which belatedly broke the news that federal prosecutors in Little Rock had quietly dismissed last month all remaining charges against banker and businessman John Stacks.

While I firmly believe in the presumption of innocence, I used to also assume that the awesome power of the government — especially the federal government — is never wielded cavalierly. The Stacks case has challenged that assumption at every turn and, coupled with observation of several other cases, has led me to two conclusions:

♦ When the U.S. Attorney's Office in Little Rock is involved, the presumption of a defendant's innocence must be more than theoretic, and confidence that the power of the government is being used fairly and wisely must be tempered.

♦ Appointed judges not beholden to the whims of an excitable electorate need to be part of our state court system as they are in the federal justice system.

I don't have room in this space to dissect the devilish details of the Stacks case, the outline of which may be familiar to you by now. A tornado destroyed a barn on Stacks’ property at Damascus in Van Buren County in 2008, and Stacks availed himself of a half-million dollar Small Business Administration disaster loan to replace equipment owned by his Mountain Pure bottled water business that had been stored in the barn.

Somehow he and the SBA got crossways over the paperwork after the loan had already been granted, and Stacks — whose authoritative personality does not engender sympathy — ended up having his bottling plant in southwest Little Rock raided by federal agents in 2012. The raid was either a quasi-military invasion or a standard search, depending on which side you believe, and Stacks was furious. He produced an amateurish video reenactment of the raid, and his company and several employees sued (unsuccessfully) the federal agencies involved.

In December 2013, Stacks was indicted on 11 felony counts accusing him of defrauding the government when he got the loan.

Stacks denied doing anything wrong at all, and he went on trial in September 2014. We don’t have nearly enough staff to devote two weeks to gavel-to-gavel coverage of any trial, but I did go to U.S. District Judge Leon Holmes’ courtroom to hear Stacks testify in his own defense and submit to cross-examination.

I felt he had a plausible, believable explanation for everything the prosecutors threw at him, but I didn’t second-guess jurors who heard far more testimony than I did. They found Stacks guilty on seven counts and hung on three. (Prosecutors dismissed one count before the jury began deliberating.)

But Judge Holmes did second-guess. In a detailed 46-page opinion, he reversed the jury’s conviction on two counts and ordered a new trial on the other five convictions, saying “the evidence preponderates sufficiently heavily against the verdict that a serious miscarriage of justice may have occurred.”

It is too much to hope that federal prosecutors would stop spending taxpayer resources on a case so tenuous. They appealed Holmes’ order to the 8th Circuit Court of Appeals, but the appeals judges weren’t inclined to overrule “a thorough, reasoned” ruling by the judge who heard all the evidence.

Slapped down again, prosecutors finally offered to dismiss the charges if — and this is important — Stacks promised not to seek attorneys’ fees and costs, which federal law allows in cases of frivolous prosecution. Had he not agreed to that, the defiant U.S. Attorney’s Office was prepared to continue using tax dollars to beat this dead horse.

Pat Harris, the first assistant to U.S. Attorney Chris Thyer, continues to insist that “we had evidence that (Stacks) had defrauded the United States.” Stacks says it cost him at least $10 million in direct and indirect costs to defend against charges that the prosecutors couldn’t prove to the satisfaction of the judge.

And this case, combined with the recent action the other U.S. District Judge Holmes — P.K. in Fort Smith — has taken to punish abusive class-action attorneys, underscores the freedom that thoroughly vetted, appointed federal judges have to do what they believe is right. They don’t have to worry about an unpopular decision being used against them in a dark-money campaign ad. Our state court system needs judges like that, specifically at the Supreme Court level.

Gwen Moritz is editor of Arkansas Business. Email her at GMoritz@ABPG.com.

Remember the new corporate headquarters development in the works for Bank of the Ozarks in west Little Rock?

You know, the one we told you about in January?

The $17.9 billion-asset lender acquired more than 46 acres of mostly undeveloped property in a series of transactions this summer.

Those deals on the western end of The Ranch development totaled more than $12.5 million.

Most of the land was purchased in two transactions with Ranch Properties Inc., led by Ed Willis: 23.5 acres for nearly $7.9 million.

Another 14 acres was added in two deals with a pair of other Willis-led entities for nearly $3.2 million.

The final piece of the puzzle was the 8-acre Saddle Creek Church campus at 18020 Cantrell Road: $1.4 million.

Groundbreaking for first-phase construction of a 180,000-SF building is expected in the coming months. The first office building on the planned headquarters campus should be completed in 2018.

For those keeping score at home, the building represents the fourth headquarters location for the public company since moving to Little Rock in 1995 from Ozark (Franklin County).

Starting with 3,500 SF of leased space downtown, the company moved with 30 staffers to a 40,000-SF home at 12615 Chenal Parkway in June 1998.

Its current 92,000-SF headquarters at 17901 Chenal Parkway opened in December 2008 with 132 staffers. Today, it houses 214. Occupancy of the building is forecast to max out at 269 next year.

Allied Bank of Mulberry (Crawford County) was ordered to take action to improve its equity capital or strike a deal to sell during the next 30 days.

The Federal Reserve Bank of St. Louis issued the prompt corrective action on Aug. 15 to the "critically undercapitalized" $66.3 million-asset bank.

Bad loans have battered Allied for more than five years and eroded its tier one capital to $1.3 million as of June 30. Past regulatory actions have criticized poor loan review and credit underwriting for the bank's problems.

Allied recorded a 1.8 percent capital ratio during the second quarter, the lowest of all financial institutions in Arkansas.

The bank lost nearly $4.5 million through the first six months of 2016. Allied has lost more than $17.7 million since 2011.

The bank's inability to generate dividends because of its deteriorating financial condition prompted the April 2014 bankruptcy of its parent company, Acme Holding Co.

The conversion of Acme's Chapter 11 reorganization to Chapter 7 liquidation 13 months ago put the sale of Allied Bank in play.

However, a possible sale or auction of Acme's Allied stock under the oversight of bankruptcy trustee Ray Fulmer of Fort Smith has yet to materialize.

The family of former Allied CEO Lex Golden, controls Allied Bank and Acme.

The Little Rock family also controls Allcorp Inc. and Community State Bank of Bradley (Lafayette County). Allcorp filed Chapter 11 on July 27.

The $16.9 million-asset bank, the smallest in the state, recorded a $54,000 profit through the first six months of 2016. Though profitable, Community State Bank is unable to generate sufficient dividends to service the debt of Allcorp.

(Correction: The headline on a previous version of this story referenced the wrong bank regulator. It has been corrected.)

WASHINGTON — The job market is humming, and so are the U.S. financial markets, with major stock indexes near record highs.

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

WASHINGTON — Long-term U.S. mortgage rates didn't budge this week, remaining at historically low levels that continue to lure prospective home buyers.

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

WASHINGTON — The U.S. economy expanded at a sluggish pace this spring as businesses sharply reduced their stockpiles of goods and spent less on new buildings and equipment.

The Commerce Department says gross domestic product, the broadest measure of the economy, increased at an annual rate of 1.1 percent in the April-June quarter. That is slightly below its previous estimate last month of 1.2 percent growth.

Consumers offset the corporate cutbacks by spending at the fastest pace in six quarters. That suggests steady job growth and modest pay gains are fueling healthy demand that could spur faster growth in the second half of this year.

The economy has expanded at a lackluster 1 percent annual pace in the first half of this year, a reminder of the current recovery's weakness.

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

WASHINGTON — Federal Reserve Chair Janet Yellen said Friday that the case for raising interest rates has strengthened in light of a solid job market and an improved outlook for the U.S. economy and inflation. But she stopped short of offering any timetable.

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

The Chapter 11 filing by Little Rock’s Allcorp Inc. in July marks the third Arkansas bank holding company to enter bankruptcy court in four years.

Allcorp is the parent company for the smallest bank in the state: $16.3 million-asset Community State Bank of Bradley (Lafayette County).

The biggest debt listed in Allcorp’s bankruptcy petition is more than $1.2 million owed on a loan from Heartland Bank of Little Rock. The loan, which originally totaled $2.1 million, financed the purchase of the bank in September 2010.

The reorganization petition is tied to the bank’s inability to generate adequate dividends for Allcorp to service its debt.

Allcorp is the second holding company taken into bankruptcy under similar circumstances by the father-son team of Lex and Alex Golden. Their Acme Holding Co., parent company of Allied Bank of Mulberry (Crawford County), is entering its 29th month in bankruptcy court.

An Aug. 15 order by federal regulators is expected to make moot Acme’s languishing Chapter 11 reorganization-turned-Chapter 7 liquidation. The Federal Reserve Bank of St. Louis gave the Goldens 30 days to come up with a plan to rebuild Allied’s severely depleted capital or to sell the bank.

Translation: The Goldens’ days at Allied Bank are on a 30-day countdown, and regulators will be installing new ownership/management.

Bad loans have battered Allied for more than five years and eroded its tier one equity capital to $1.3 million as of June 30. Past regulatory actions have blamed poor loan review and credit underwriting for the bank’s problems.

Allied recorded a 1.8 percent capital ratio during the second quarter, the lowest of all financial institutions in Arkansas. Community State Bank’s capital ratio, by comparison, is 14.3 percent.

Acme’s bankruptcy in April 2014 trailed nine months behind the Chapter 11 filing of Rogers Bancshares Inc., parent company of Metropolitan National Bank.

The subsequent auction of Metropolitan stock to Simmons Bank of Pine Bluff followed a less contentious path than Acme Holding. The same goes for the repayment of personally guaranteed loans secured by bank stock.

About $8 million owed to Centennial Bank of Conway, on a loan secured by Metropolitan shares and guaranteed by Doyle Rogers Sr., was repaid before the 2013 auction.

It took a year for Chambers Bank of Danville to obtain a $2 million judgment against Lex Golden and his wife, Ellen, for some of the Acme debt they personally guaranteed. Their son, Alex, is listed as a co-debtor on the $1.2 million Allcorp loan from Heartland.

Community State Bank’s tier one equity capital totals nearly $2.3 million.

Ownership of Allcorp largely is divided between Alex Golden, president of the holding company, and Lex Golden, Allcorp chairman and CEO. Each owns 39.28 percent.

Jacksonville investors Frank Swift Jr. and Michelle Andrews each hold a 4.62 percent stake. Trusts for the children of Alex Golden and his sister, Amy McCay, each hold 4.37 percent. Rounding out the ownership are three more Jacksonville investors who have 1.15 percent shares: William/Pamela Hall, Terry/Tonia Weatherford and the Rice Family Living Trust, led by Susan Rice.

Community State Bank

Bradley

Total Assets: $16.3 million
Salaries: $139,000
Net Income: $54,000
Dividends: $17,000
Staff: 6
(As of June 30)

Source: Federal Deposit Insurance Corp. All dollars in thousands.

A 140-bed nursing home in south Pulaski County tipped the scales at $4.05 million.

Dixon Realty LLC of Wood-Ridge, New Jersey, purchased the Madison Health & Rehabilitation project at 2821 W. Dixon Road from Trinik Holdings LLC, led by Saeed Niksefat.

The deal was backed as part of a $15.7 million loan overseen by Oxford Finance LLC of Alexandria, Virginia.

The 9.09-acre development previously was tied to a March 2012 mortgage of $3.2 million held by Farmers Bank & Trust of Magnolia.

The property was bought at a $2 million foreclosure sale in May 2008. The transaction followed a $5.7 million judgment two months earlier against Southwest Nursing Homes Inc., led by Stafford Kees.

Wendy’s Transaction

A 3,400-SF fast-food eatery in west Little Rock weighed in at $2.11 million.

Sea Salt LLC of Memphis acquired the Wendy’s at 17716 Cantrell Road from Fourjay LLC, led by John Shanks.

The deal is financed as part of a $4 million loan from Independent Bank of Memphis. The 1.19-acre development previously was linked with an August 2013 mortgage of $1.3 million held by the bank.

Fourjay purchased the location for $831,000 in February 2013 from Ranch Properties Inc., led by Ed Willis.

Saddle Creek Sale

A 6,992-SF office building in west Little Rock changed hands in a $940,000 sale.

Jason and Sarah Everett bought the 8221 Ranch Drive project from Saddle Creek Center LLC, led by Ed Willis.

The deal is funded with an $884,000 loan from First Security Bank of Searcy.

The 1.01-acre development previously helped secure a November 2010 mortgage of $2.3 million held by the bank. The land was acquired in August 1984 as part of a $2.15 million land deal with Johnson Land Co., led by Glenn H. Johnson.

Sustainable Purchase

A 7,980-SF industrial building in east Little Rock is under new ownership after a $450,000 deal.

Sustainable Properties LLC, led by Chris Adner and Matt Bell, purchased the Arrow Printing project at 1403 E. Sixth St. from the namesake trust of Jerry and Billy Neal.

The deal is backed with five-year loans of $382,500 and $270,300 from IberiaBank of Lafayette, Louisiana.

The Neals bought the 1.13-acre de-velopment for $240,000 in April 1997 from Darragh Investment Co., led by Thomas Darragh.

Restaurant Acquisition

A 2,481-SF eatery in southwest Little Rock rang up a $281,937 sale.

SCFRC-HW-G LLC of Princeton, New Jersey, acquired the Sam’s Southern Eatery at 6205 Baseline Road.

The seller is CNL APF Partners Ltd., an affiliate of GE Capital of Norwalk, Connecticut.

The 0.76-acre development was purchased for $541,000 in June 2003 from SHN Properties LLC of Nashville, Tennessee.

Sherwood Site

A 2.75-acre commercial site in Sherwood drew a $175,329 transaction.

CKP Commercial Properties LLC, led by Paul and Andrea Wilson, bought the land at the northwest corner of Highway 107 and Millers Park Drive. The seller is 107-Oakdale LLC, led by Byron McKimmey.

The deal is financed with a two-year loan of $169,000 from Arvest Bank of Fayetteville.

The land was acquired in February 2006 as part of an $8.3 million transaction with Metropolitan Land Co., representing the heirs of Justin Matthews and his Metropolitan Trust.

Estates Sale

A 6,985-SF home in west Little Rock’s Valley Falls Estates neighborhood tipped the scales at $1.25 million.

Matthew and Patricia Jones purchased the house from Brett and Amanda Bennefield.

The deal is funded with a 15-year loan of $417,000 from First Security Bank.

The property was bought for $1.35 million in October 2013 from the Gene Graves Revocable Trust.

Chenal Circle Abode I

A 6,605-SF home in the Chenal Circle neighborhood of west Little Rock sold for $955,000.

The Linda D. Gleason Revocable Trust acquired the house from Phillip and Robin Johnson.

The deal is backed with a five-year loan of $859,500 from Citizens Bank of Batesville.

The residence previously was tied to a $620,000 loan held by Summit Bank of Arkadelphia.

The Johnsons purchased the property for $760,000 in April 2014 from Bank of New York Mellon.

Hickory Creek House

A 4,915-SF home in west Little Rock’s Hickory Creek neighborhood changed hands in an $825,000 transaction.

Johnathan and Julia Goodwin bought the house from CBM Appraisals Inc., led by Christopher Maris.

The deal is financed with a 30-year loan of $742,500 from Stifel Bank & Trust of St. Louis. The residence previously was linked with a November 2014 mortgage of $690,000 held by Southern Bancorp Bank of Arkadelphia.

CBM acquired the property for $620,000 nearly two years ago from Calvin and Joyce Arnold.

Maisons Residence

A 6,099-SF home in The Maisons neighborhood of west Little Rock’s Chenal Valley development is under new ownership after a $695,000 sale.

Vijay and Grace Raja purchased the house from David and Tracy Rhodes.The deal is funded with a 25-year loan of $660,250 from Regions Bank of Birmingham, Alabama.

The residence previously was tied to an August 2007 mortgage of $250,000 held by the bank.

The Rhodes family bought the location for $72,000 in April 2004 from Deltic Timber Corp. of El Dorado.

Chenal Circle Abode II

A 5,807-SF home in the Chenal Circle neighborhood of west Little Rock rang up a $550,000 transaction.

Sara Hanna acquired the house from Debora Owens. The deal is backed with a 15-year loan of $412,500 from One Bank & Trust of Little Rock.

The residence previously was linked with a September 2006 mortgage of $550,000 held by Bank of England.

The property was purchased for $875,000 nearly 10 years ago from the Paul & Ann Weaver Family Trust.

Woodland’s Home

A 3,827-SF home in the Woodland’s Edge neighborhood of west Little Rock drew a $539,000 sale.

Matthew and Michelle Barden bought the house from Arbor Construction LLC, led by Michael Moran. The deal is financed with a 30-year loan of $417,001 from JPMorgan Chase Bank of Columbus, Ohio.

The residence previously was tied to a November 2015 mortgage of $409,600 held by Bear State Bank of Little Rock.

Arbor acquired the site for $76,000 nine months ago from Rocket Properties LLC, led by Lisenne Rockefeller and Ron Tyne.

Noah’s Mortgage

A 10,662-SF Noah’s event center in west Little Rock is securing a $3.1 million financial package.

NC Little Rock 642 LLC of Frisco, Texas, obtained the loan from EquiTrust Life Insurance Co. of Chicago.

The 1.7-acre site at 21 Rahling Circle was purchased for $859,636 in May 2014 from Deltic Timber Corp.

Motel Financing

The owner of a 55-room motel in North Little Rock landed a $2 million funding agreement.

Shree Mahalaxmi Corp. of Humble, Texas, got the three-year loan from Farmers & Merchants Bank of Stuttgart.

The 1.2-acre Simply Home Inn & Suites development at 110 E. Pershing Blvd. previously was linked with a May 2015 mortgage of $1.2 million held by the bank.

SMC bought the property for $1.3 million in March 2015 from KMP LLC, led by Kolila Patel.

The top man at the world’s largest company is again the highest-paid executive in Arkansas.

C. Douglas McMillon, CEO of Wal-Mart Stores Inc., has returned to the No. 1 spot on the annual list of executive compensation at publicly traded companies headquartered in the state. McMillon, whose total compensation topped $19.8 million in 2015, had been displaced on last year’s list by Gregory S. Foran, who benefited from stock awards granted when he was named executive vice president in 2014.

McMillon and Foran, No. 4 this year, are among six current Wal-Mart executives ranked among the 10 highest-paid executives on this week’s list. It ranks executives of 20 publicly traded companies headquartered in Arkansas by total compensation as disclosed in the companies’ most recent proxy statements. In most cases, the fiscal year ended Dec. 31, 2015; exceptions are Tyson Foods Inc. (Oct. 3, 2015); Dillard’s Inc. (Jan. 30); Wal-Mart (Jan. 31); Acxiom Corp. (March 31); and America’s Car-Mart Inc. (April 30).

Sandwiched between McMillon and Foran are:

• Roger W. Jenkins, CEO of Murphy Oil Corp. of El Dorado, which recorded the lowest net income of the 20 companies last year — a $2.27 billion loss, thanks to the cratering of petroleum prices; and
• Donnie Smith, CEO of Tyson Foods, the second-largest company in the state in terms of both revenue ($41.4 billion) and net income ($1.2 billion).

In a numerically satisfying coincidence, exactly 100 executives are ranked this year, up from 94 in 2015 mainly because the roster of public companies issuing regular proxy statements grew by one: Communications Sales & Leasing Inc. of Little Rock, which was spun off of Windstream Holdings Inc. in April 2015.

The total compensation for the 100 executives totaled $269.3 million, and the average of just under $2.7 million was down from $2.96 million last year.

Arkansas Business’ list breaks down total compensation into salary, the calculated value of stock and stock options awarded, bonuses or other cash performance pay, plus any other compensation reported to the U.S. Securities & Exchange Commission.

Only about 18 percent ($48.7 million) of the aggregate compensation came in the form of base salary, reflecting the preference for performance-based compensation of proxy advisory firms like Institutional Shareholder Services Inc. of New York.

Compensation totals ranged from McMillon’s $19.8 million to the $160,000 annualized base salary reported for Michelle Dillard, the ninth member of the founding family to join the payroll of the Little Rock retailer.

Most of the companies reveal the pay packages only of the top managers — what the SEC calls “named executive officers” — but Dillard’s Inc. also discloses the compensation of a sister (Denise Mahaffy) and children of CEO William Dillard II (William III) and President Alex Dillard (Alexandra, Annemarie and Michelle). Executive Vice Presidents Mike Dillard and Drue Matheny, brother and sister of William II and Alex Dillard, are also named executive officers.

Total compensation for the nine family members totaled $12.5 million last year. That was almost exactly the amount that John Tyson, chairman of Tyson Foods of Springdale, realized by exercising stock options last year.

Tyson also collected compensation of $8.75 million, placing him No. 7 on the list.

Cash realized by the exercise of stock options is reported on the list but is not included in the compensation total. Tyson was among only 29 of the 100 executives who exercised options during 2015; the other 28 divided up almost $48.6 million.

Kirk Thompson, chairman of J.B. Hunt Transport Inc. of Lowell, No. 30 on the list with total compensation of $2.27 million, realized the second-highest payday by exercising stock options: an additional $7.7 million.

Others in the top 10 are three executive vice presidents at Wal-Mart: No. 5 Neil M. Ashe, No. 6 David Cheesewright and No. 10 Rosalind G. Brewer, the highest-paid woman on the list. M. Brett Biggs, No. 8 with total compensation of $8.6 million in 2015, was promoted to chief financial officer upon the retirement in January of No. 23 Charles M. Holley Jr.

Noel M. White, senior group vice president for Tyson Foods, landed at No. 9.

10 Women

Among the 100 executives on the list are 10 women, starting with No. 10 Brewer, who heads Wal-Mart’s Sam’s Club division. Half of them are the Dillard women:

• No. 42 Drue Matheny;
• No. 73 Denise Mahaffy;
• No. 93 Alexandra Dillard;
• No. 96 Annemarie Dillard; and
• No. 100 Michelle Dillard.

Michelle Dillard and No. 51 Kelli M. Hammock, a senior vice president at Murphy Oil Corp., are newcomers to the list. The other female executives are:

• No. 31 Judy R. McReynolds, CEO of ArcBest Corp. of Fort Smith;
• No. 34 Shelley Simpson, executive vice president of J.B. Hunt; and
• No. 35 Mindy K. West, chief financial officer of Murphy USA Inc. of El Dorado, the retail spinoff of Murphy Oil.

New Names

Biggs, Hammock and Michelle Dillard were among 22 new names on this year’s list.

Communications Sales & Leasing, the Windstream spinoff, contributed three newbies:

• No. 12 Kenny Gunderman, president and CEO;
• No. 48 Mark A. Wallace, EVP and CFO; and
• No. 55 Daniel L. Heard, SVP and general counsel.

Other newcomers are:

• No. 27 John Eckart, CFO of Murphy Oil;
• No. 29 Richard E. Erwin, president and general manager of audience solutions for Acxiom of Little Rock;
• No. 36 Nicholas Hobbs, president of dedicated contract services for J.B. Hunt;
• No. 44 Brian S. Davis, CFO of Home BancShares Inc. of Conway, parent company of Centennial Bank;
• No. 46 Keith S. Caldwell, SVP and controller for Murphy Oil;
• No. 47 Kevin Hester, chief lending officer for Home BancShares;
• No. 49 S. Travis May, president and general manager of connectivity for Acxiom;
• No. 63 Timothy D. Thorne, president of ArcBest’s Arkansas Best Freight division;
• No. 64 Phillip R. Watts and No. 69 Chris B. Johnson, co-principal financial officers for Dillard’s;
• No. 66 David M. Redmond, president of consumer and SMB for Windstream;
• No. 75 David R. Cobb, VP and controller for ArcBest;
• Mark McFatridge, CEO of Bear State Financial Inc., who came in at No. 82 because his total compensation of almost $620,000 represented only three months of work leading the holding company for Bear State Bank; and
• No. 91 Christian C. Rhodes, VP and chief information officer for USA Truck Inc. of Van Buren.

Two others made their first and last appearances:

• No. 58 Thomas M. Glaser, who served as interim president and CEO of USA Truck after the resignation of No. 37 John Simone in 2015. Glaser was succeeded by Randy Rogers in January, and Simone died of lung cancer in March.
• No. 78 Joseph Henderson III, who resigned as VP of fuels for Murphy USA in December.

Already Gone

Holley, Glaser, Simone and Henderson aren’t the only names on the list who have since left their positions. Others who are already gone include:

• No. 59 David L. Bartlett, who retired in January as president and chief banking officer for Simmons First National Corp. of Pine Bluff;
• No. 77 Russell Overla, who resigned in September as executive vice president of Truckload Operations for USA Truck;
• No. 90 Michael R. Weindel Jr., another USA Truck EVP who resigned in February;
• No. 94 Kevin G. Fitzgerald, who retired as EVP and CFO for Murphy Oil Corp.; and
• Randy Mayor, who came in at No. 99 after retiring as CFO for Home BancShares in July 2015.

White Rock Investments LLC, led by Tim Brisiel of Fayetteville, paid $5 million for two apartment complexes.

Brisiel bought the Colonial Arms Apartments on North Leverett Avenue. Colonial Arms has 69 units and more than 55,000 SF. The acquisition included the 74-unit Oakwood Place Apartments on West Putnam Street.

Brisiel purchased the properties from Mid-America Management Associates, which is led by William Howell. First National Bank of Fort Smith assisted the purchase with a loan of $5.6 million.

Townhouses Sold

Brisiel, through his White Rock Investments LLC, sold 10 townhouse units to a California real estate investor.

Christ Koutroumbis and his wife, Polly, through their 1337 & 1343 N. Oakland LLC, paid $1.35 million for the units at 1337 N. Oakland Ave. The units have 8,976 SF.

Arvest Bank of Rogers assisted the purchase with a loan of $1.08 million.

Investors Buy 2 Hotels

The private investment group Waramaug LS Hotels of Boca Raton, Florida, bought the Holiday Inn Express & Suites in Bentonville and the Fairfield Inn & Suites in Springdale, paying $6.9 million for the Holiday Inn and $7 million for the Fairfield.

Waramaug bought the properties in partnership with Woodmont Lodging of Bethesda, Maryland. The partnership bought the Holiday Inn through its WW Holx Bentonville LLC and the Fairfield Inn through its WW FFI Springdale LLC.

Narendra Krushiker was the seller. Benefit Street Partners CRE Finance LLC of New York City assisted the purchases with a loan of $11.1 million.

Waramaug said the partners plan to renovate the 84-room Holiday Inn, located at 2205 SE Walton Blvd. The Fairfield Inn is a 74-room hotel at 1043 Reiff St.

Craig Nussbaum, the senior vice president of Waramaug, said the hotels were attractive because they were located in cities with major corporations; Bentonville is home to Wal-Mart and Springdale is home to Tyson Foods.

“Both markets also have a strong job creation forecast and consistent economic growth coupled with a limited new supply outlook,” Nussbaum said. “All of these factors provide excellent future growth potential for our top-line revenue.”

Simmons Buys Bank Branch

Simmons Bank of Pine Bluff bought a former First Federal Bank branch in Fayetteville for $1.7 million.

The branch, located at 2025 N. Crossover Road, was sold by the renamed Bear State Bank of Little Rock. The branch is 3,639 SF.

Red Robin Sale-Leaseback

The Red Robin restaurant in Fayetteville was sold by its corporate owner in a $2.35 million deal.

Red Robin International Inc. of Greenwood Village, Colorado, sold the restaurant at 695 E. Van Asche Drive to two California trusts. The Jane J. Vorhees Survivor Trust bought 57 percent, while the V Purn Vorhees Credit Shelter Trust bought the remaining 43 percent.

Both trusts are led by Jon Vorhees of Roseville, California.

Red Robin signed a 15-year lease with the new owners after the sale of the 6,606-SF restaurant.

Dentist Office Changes Hands

A California investor paid $2.35 million for the My Dentist office at 2868 W. Martin Luther King Jr. Blvd. in Fayetteville.

Yancey Properties of Santa Barbara, California, led by Thomas Yancey and Joel Orr, bought the property from Broadstone MD Oklahoma LLC, a subsidiary of Broadstone Real Estate of Rochester, New York.

Yancey Properties bought two adjacent lots, both one-third of an acre. One lot is the My Dentist parking lot, and the other undeveloped lot sits directly behind the 5,268-SF office building.

The property is located across MLK from the Walmart SuperCenter. Great Lakes Credit Union of Illinois assisted the purchase with a loan of $935,000.

Investment Firm Sold

The home of Greenwood & Gearhart, an investment advisory firm in Fayetteville, sold for $1.25 million.

The Firethorn Group LLC, led by Lindsey and George Gearhart, bought the 8,600-SF office at 26 E. Center St. Crickett LLC, led by M. Reed and Mary Ann Greenwood, was the seller.

Mary Ann Greenwood founded the company in 1982.

Legacy National Bank of Springdale assisted the purchase with a loan of $1 million.

An insurance company had a straightforward $300,000 commercial letter of credit from First Community Bank of Eastern Arkansas, and that’s bad news for the Marion bank with $150.8 million in assets.

Last week, U.S. District Judge D.P. Marshall Jr. ordered the bank to pay Arch Specialty Insurance Co. of New York the $300,000 plus nearly $45,000 in interest for refusing to honor the letter of credit, and there may eventually be court costs to pay as well.

Arch was represented by attorneys Lance Miller and Stan Smith of the Little Rock law firm of Mitchell Williams Selig Gates & Woodyard.

The bank issued the letter of credit back in November 2007 on behalf of Crittenden Regional Hospital in West Memphis. Arch had provided insurance coverage to the hospital, but it required a letter of credit that would cover the deductible on the policy if the hospital didn’t pay.

And that’s exactly what happened.

And as you probably remember, Crittenden Regional filed for Chapter 7 bankruptcy liquidation in September 2014. In December of that year, Arch Specialty Insurance asked First Community Bank for the $300,000, but the bank refused to pay.

Compounding the problem, the hospital didn’t list the bank as a creditor in the bankruptcy filing, and it’s too late for the bank to file a claim in the bankruptcy case, according to the bank’s pleadings in U.S. District Court in Jonesboro.

First Community’s attorney, Stuart Hankins of Sherwood, argued in his filings that the letter of credit wasn’t straightforward or ordinary. He said the bank shouldn’t have to pay it for several reasons, including the fact that Arch never contacted the bankruptcy court about the letter of credit.

But Judge Marshall, in his order, boiled the dispute down to the question of whether the bank improperly refused to honor the letter of credit. He found that it did and “must pay on an unconditional letter of credit regardless.”

Hankins didn’t return a call for comment.

The bank had net income in 2015 of $1.4 million, which was about the same as the previous year.

Remember the settlement between Johnelle Hunt’s BHL Financing LLC and Little Rock’s One Bank & Trust we told you about two months ago?

We have more details.

The outcome of that federal case is that BHL received assets valued at $2.8 million.

The list includes:

• The trust-preferred shares issued by West Tennessee Bancshares Inc., holding company for the $337 million-asset Bank of Bartlett, valued at $1.2 million,
• The 7,200-SF Parker Building at 4 Country Club Circle in Maumelle, $800,000;
• A 2.5-acre commercial site at the southwest corner of Highways 5 and 89 on the edge of Cabot; and
• $200,000 in cash.

You might recall the lawsuit got rolling after BHL landed a $14.7 million default judgment last September against One Bank's holding company, OneFinancial Corp.

The action represented a second lawsuit to collect on financial guarantees made by One Bank’s former owner and CEO, Layton “Scooter” Stuart, who died in March 2013.

The guarantees are tied to an October 2002 reworking of $30 million of debt amassed by Stuart in business dealings with Hunt’s late husband, J.B. Hunt, founder of J.B. Hunt Transport Services Inc. of Lowell.

A chunk of that debt was tied to the Hunt family selling its interest in One Bank to Stuart.