Ty Matlock has been named associate director of the board of directors of United Federal Credit Union, headquartered in St. Joseph, Michigan.

The Associate Director Program is designed to provide a prepared and ready supply of succession candidates for the board of directors, ensuring continuity of board leadership.

Matlock is owner of Matlock Media Group, a full-service advertising agency in Fort Smith.

Andrew Sharpley has been elected president of the Soil Science Society of America for 2017. The SSSA is a progressive international scientific society that fosters the transfer of knowledge and practices to sustain global soils.

Sharpley is a professor in the University of Arkansas’ Division of Agriculture in Fayetteville. His research focuses on studying the effects of agricultural management on water quality and implementing practices to minimize nutrient runoff.

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

The financial tale of Texarkana’s competing convention centers continues.

U.S. Bankruptcy Court for the Eastern District of Texas on Wednesday approved the sale of Dr. Hiren D. Patel’s hotel in Texarkana, Texas, for $2.9 million to James J. Naples.

Patel and his wife, Dineschandra Patel, live in Texarkana, Texas, and own Country Inn & Suites through their company, Krishna Associates LLC.

The Patels’ attorney, Bill F. Payne of Dallas, did not return a call Thursday for comment. He has been instructed to file the order approving the sale by Jan. 25.

A draft of the order states that proceeds of the sale will be paid to MidSouth Bank of Lafayette, Louisiana, on the closing date. MidSouth is the lead creditor in the case.

Six other parties submitted bids by Nov. 25, according to the motion the court approved, and Naples’ was the high bid.

Krishna’s is one of three bankruptcies linked to the Patels, their companies and MidSouth.

The company filed for Chapter 11 bankruptcy reorganization in November, when it listed $5.3 million in debts and $3.2 million in assets. The filing halted the foreclosure sale of Country Inn & Suites.

Patel also filed for bankruptcy reorganization in March for his Texarkana Hotels LLC, which owns the combination 27,000-SF, $18 million Arkansas Convention Center and Holiday Inn on the Arkansas side. The center and hotel have been marred by controversy since they opened in 2013, about a year after a convention center on the Texas side of the city.

That filing also halted a foreclosure, initiated by MidSouth. The bank said Patel’s company defaulted on $10 million in loans on the Arkansas side alone.

MidSouth is also seeking payment from the Patels because they personally guaranteed the debts, but that has been slowed because the Patels filed for personal bankruptcy reorganization in April.

The owners of the 30-story Regions Center in downtown Little Rock weren’t able to refinance a $32 million loan before it matured on Sept. 1.

That put the owners on the road to bankruptcy court.

The insight comes from Lori McGhee, a consultant for the buildings’ owners who is working for Moses Tucker Real Estate of Little Rock. She provided a statement last month in U.S. Bankruptcy Court in Delaware about the events that led to the Chapter 11 reorganization filing.

In the nine-page statement, McGhee said “improper actions” by the lender, Wells Fargo Bank, prevented the owners from refinancing the loan that was used to buy the building in 2006. She didn’t provide details.

McGhee said being unable to refinance triggered a default under the loan documents, and it led to the building losing a “significant new tenant.” It also diminished the value of the property and its “much needed cash flow for its operations.”

The property owners also had to dip into other operating funds to pay for tenant improvements, which also hurt the cash reserves.

After Wells Fargo filed a foreclosure lawsuit in Pulaski County Circuit Court in November against the 32 LLCs with ownership interests in the building, there was no choice but to go to bankruptcy court, McGhee said. Wells Fargo also wanted a receiver appointed.

Going to bankruptcy court allowed the owners to sidestep the “inherent cost and expense” of defending the foreclosure and receivership proceedings.

And it gave the owners “an opportunity to resolve their issues with [Wells Fargo] for the benefit of all” parties, McGhee said.

In the statement, she also asked that the utilities be kept on. She said the monthly utility bill for the 547,000-SF building is nearly $90,000. She said the owners expect to have enough cash to cover that expense.

When the owners filed for bankruptcy protection, they listed estimated debts of between $10 million and $50 million. A more detailed filing is expected later. The owners’ assets also are estimated at between $10 million and $50 million.

If McGhee’s name sounds familiar, it’s because we told you several weeks ago that she retired from Moses Tucker. In the filing, however, she said she has been “re-engaged” by Moses Tucker to help with the bankruptcy.

The battle over the biggest asset remaining from John Rogers’ murky business dealings and insolvent ventures begins next week in Little Rock.

Creditors of the fallen North Little Rock sports memorabilia and photo dealer are lined up to stake their claim on the $1.5 million payout for the renowned Conlon Collection.

The Feb. 1-2 hearing before Circuit Judge Chris Piazza will determine who gets the money held in the court registry since the collection was sold at auction on Aug. 28.

While a mix of lenders, clients and business associates prepare to make their arguments over the Conlon cash in Pulaski County Circuit Court, Rogers is scheduled to appear in federal court to change his plea to felony wire fraud after originally pleading not guilty.

The hearing in Chicago’s U.S. District Court, postponed from Feb. 3 to March 6, will come more than three years after federal agents raided Rogers’ North Little Rock business and home.

The fruits of that fraud investigation are expected to yield a plea-deal sentencing for Rogers later this year, but no details have hit the court docket.

The Conlon Collection is absent from the abridged criminal narrative of several of his fraud schemes outlined in a Sept. 9 filing by the U.S. Attorney for the Northern District of Illinois.

Bogus contracts, phantom deals, counterfeit memorabilia and forged paperwork were tools Rogers used to bilk investors, customers and banks as part of a Ponzi-style scheme involving “at least $10 million,” as noted in the federal case.

Known claims against Rogers associated with his shady financial dealings total more than $45 million.

Even his ownership of the Conlon Collection carries the taint of fraud.

According to court documents, Rogers sold or pledged interests in the collection that topped 100 percent. That math-defying trick was uncovered after creditors began stepping forward with their competing claims to the collection.

Depending on the document, Rogers paid $1 million or $2 million for the Conlon Collection and other assets in a deal with American City Business Journals Inc. of Charlotte, North Carolina. A 14-page photo ar-chive acquisition and digital library services agreement that appears to be genuine pegs the price at $1 million.

That figure is supported by bank documents regarding a $1 million wire transfer received by American City Business Journals on July 1, 2010, and the company’s accounting entry for a $1 million sale of the photo archives of its Sporting News subsidiary.

The Conlon Collection originally consisted of 8,354 glass-plate negatives when Rogers bought it. The inventory count stood at 7,462 when it was auctioned by court order last year.

“We expected the sale of the Conlon Collection to bring a total of approximately $3 million,” Amy Allen said in a sworn affidavit dated Dec. 29. “The actual sale by the receiver was disappointing.”

Allen is in the forefront of competing claimants with financial ties to the historic treasure of early 20th century major league baseball images produced by photographer Charles Conlon (1868-1945).

Her husband, Doug, arranged funding with an Illinois bank that appears to have financed the purchase of the Conlon Collection. The $1 million line of credit was held by Legendary Auctions, where Allen was president and CEO and Rogers held an ownership stake.

Doug Allen was sentenced to 57 months in federal prison last February in part for obstructing the criminal investigation of Rogers. The sports memorabilia auctioneer received the stiffer sentence after Rogers baited him into discussing past misdeeds.

Allen talked about how his negotiated guilty plea to one count of mail fraud would be threatened if the FBI knew he had tipped off Rogers about wearing a wire and a pending raid on his business.

This time Rogers was wearing the wire, and unlike Allen, he had no qualms about using the recorded conversation to his advantage.

Rogers still holds an 11 percent interest in the Conlon Collection, according to Amy Allen.

However, it is pledged to secure money Rogers owes to Legendary Auctions.

She and her family trust claim to own a combined 27 percent of the collection.

Some documents indicate Legendary Auction associates also held stakes.

The ownership percentages ebb and flow among Legendary Auction members in a mish-mash of agreements bearing dates between 2010 and 2013.

The earliest known ownership claim by an outside investor in the Conlon Collection is held by Mark Roberts of San Francisco. According to court filings, he bought a 25 percent stake from Rogers for $1.1 million in Oct. 21, 2010.

First Arkansas Bank & Trust of Jacksonville claims a security interest in the Conlon Collection as collateral on a $9.6 million loan made to one of Rogers’ businesses, Sports Cards Plus, on Dec. 19, 2011.

The bank holds a default judgment against Legends in Time LLC, which Rogers used to buy the Conlon Collection.

Judge Chris Piazza is tasked with sorting through the maze of legal arguments to determine how $1.5 million from the Conlon sale is distributed.

(See also: Case Closed: The Final Orders of Four John Rogers Lawsuits)

Simmons First National Corp. of Pine Bluff announced Monday a $462 million cash-and-stock deal to acquire First Texas BHC Inc. of Fort Worth and its $2 billion-asset subsidiary Southwest Bank.

It's the third acquisition announced by Simmons in the past 10 weeks. Its $78 million deal to buy First South Bank of Jackson, Tennessee, is expected to close in the current quarter, while the $564.4 million purchase of Bank SNB of Stillwater, Oklahoma, should close in the third quarter, pushing Simmons' assets past the $10 billion mark.

Bank SNB has five branches in Texas, and Simmons CEO George Makris Jr. said the Southwest purchase will build on that.

“Late last year, Simmons announced its introduction into the Texas markets with our proposed acquisition of Bank SNB. We now have the opportunity to substantially grow our presence in the Fort Worth metropolitan area by joining with one of the best run, most respected financial organizations in Texas," Makris said in a release announcing the deal.

Southwest Chairman and CEO Vernon Bryant and his executive team "are exemplary bankers who understand the industry and get the importance of excellent customer service," Makris continued. "Their success, both for their customers and for their organization, makes me confident that we have teamed with another great banking partner. The Southwest Bank brand itself is very well known and respected, and represents a legacy of quality banking service. Because of that legacy, we will retain the Southwest Bank brand.”

First Texas' shareholders will receive 6.5 million shares of Simmons' publicly traded stock and $70 million in cash in a deal that is expected to close in the third quarter. Southwest Bank, which has been privately owned, will then be operated as a separate bank subsidiary during what the announcments described as "an interim period" befor ebeing merged into the Simmons Bank charter.

Stephens Inc. of Little Rock was financial adviser to First Texas. Mercer Capital Management Inc. of Memphis advised Simmons.

Southwest recorded a profit of nearly $14.4 million for the nine months ending Sept. 30. After losing a combined $4.1 million during 2008-09, the company has stayed the course of profitability.

The bank reported annual profits of $16.8 million in 2015, $12.7 million in 2014 and $9.5 million in 2013.

Supported by a staff of 302, Southwest operates 16 full-service branches primarily in Fort Worth. Based on deposits, the bank held the sixth largest market share in the Tarrant County at 3.43 percent. Southwest Bank was chartered as T Bank in 1963.

Farmers Bank & Trust of Magnolia said Tuesday that its board of directors has named Chris Gosnell president and CEO, effective immediately.

Gosnell previously worked as president and chief banking officer. Former CEO Bob Burns will remain the bank's board chairman.

Gosnell, a 2015 Arkansas Business "40 Under 40" honoree, joined the bank in 2010. He received a bachelor of arts in administrative management from the University of Arkansas in 2003 and a master of science in operations management in 2005.  

He graduated from the Graduate School of Banking at Colorado and serves on the Arkansas Bankers Association Board of Directors.

Burns joined the bank in 1980. Under his leadership, the bank grew from $31 million in assets to $1.3 billion as of Sept. 30. By assets, Farmers is the seventh largest bank in Arkansas. It reported net income of $19.4 million in 2015 and $16.4 million for the first three quarters of 2016. 

"The Board is appreciative of all that he has done to grow Farmers into the Bank it is now, and looks forward to many more years of growth under his and Chris Gosnell's leadership," the bank said in a news release.

Farmers Bank & Trust is a 110-year-old community bank owned by privately held Magnolia Banking Corp. With more than 20 locations in Arkansas and Texas, the bank has made no acquisitions — all its growth has been organic.

Southern Bancorp Inc. of Arkadelphia said Wednesday that it will acquire Farmers Bank of Hamburg (Ashley County) in a $4.5 million cash-and-stock deal.

Like many small banks, Farmers has struggled with consistent profitability since 2008. The $41.1 million-asset lender recorded net income of $238,000 that year, its best in the post meltdown era.

The bank, supported by a dozen staffers, reported a $73,000 loss through the first nine months of 2016.

Bruce Timmons, Southern Bancorp's market president for Eudora, will assume responsibility for the Hamburg market after the deal is completed. Timmons lives in Hamburg and is a 43-year banking veteran.

Kenny Allbritton, the current Farmers Bank president, will stay aboard following the merger.

The acquisition will expand the footprint of Southern Bancorp into Ashley County. Southern Bancorp is a Community Development Financial Institution with 44 locations in eight Arkansas counties and nine Mississippi counties. It has $1.1 billion in assets.

"The Hamburg community fits well into the Southern Bancorp target market," Southern Bancorp CEO Darrin Williams said in a news release. "We look forward to bringing our unique brand of banking to the area, which combines traditional banking products and services with financial development offerings such as financial education, credit and homebuyer counseling, and free tax preparation among others."

Southern said the deal aligns with its mission to "create economic opportunity through increased access to capital" and financial services in underserved communities. It's also "representative of a larger growth plan aimed at increasing Southern Bancorp's footprint," the company said.

"Our shareholders are excited to join the Southern Bancorp family, not only because of what it will mean for our customers in terms of new products and services, but also because of Southern Bancorp's mission focus, which will be a great asset to our community," said Jack Shell, Farmers' board chairman.

Gov. Asa Hutchinson on Thursday announced the following appointments.

Lona McCastlain, Austin, to the Parole Board. Appointment expires Jan. 14, 2024. Replaces James Wallace.

Ray Dillon, Little Rock, to the Arkansas Forestry Commission. Appointment expires Jan. 14, 2026. Reappointment.

Dee Holcomb, Pine Bluff, to the Arkansas Real Estate Commission. Appointment expires Dec. 31, 2019. Replaces Monica Freeland.

Bob Walker, Jacksonville, to the Arkansas Real Estate Commission. Appointment expires Dec. 31, 2019. Replaces Lesia Johnson Ford.

Eric Jackson, Hot Springs National Park, to the State Parks, Recreation and Travel Commission. Appointment expires Jan. 14, 2023. Replaces LeRoy Dangeau.

John Gill, Little Rock, to the State Parks, Recreation and Travel Commission. Appointment expires Jan. 14, 2023. Reappointment.

David Bazzel, Little Rock, to the State Parks, Recreation and Travel Commission. Appointment expires Jan. 14, 2023. Replaces Jay Bunyard.

Dr. Steven Cathey, North Little Rock, to the Arkansas State Medical Board. Appointment expires Dec. 31, 2022. Reappointment.

Dr. Sylvia Simon, Monticello, to the Arkansas State Medical Board. Appointment expires Dec. 31, 2022. Replaces Joseph Beck.

John Newcomb, Osceola, to the Board of Trustees of Arkansas Northeastern College. Appointment expires Dec. 31, 2022. Reappointment.

Clifton Chitwood, Osceola, to the Board of Trustees of Arkansas Northeastern College. Appointment expires Dec. 31, 2022. Reappointment.

Dr. Thomas Westbrook, Blytheville, to the Board of Trustees of Arkansas Northeastern College. Appointment expires Dec. 31, 2022. Reappointment.

Dr. John McAllister, Little Rock, to the Board of Trustees of the Arkansas School for the Blind and the Arkansas School for the Deaf. Appointment expires Jan. 14, 2022. Replaces Mary Weeks.

David Leech, Stuttgart, to the State Banking Board. Appointment expires Dec. 31, 2021. Replaces Elizabeth Bowles.

Dr. William Hewat, Fayetteville, to the Arkansas Livestock and Poultry Commission. Appointment expires on Jan. 14, 2024. Replaces Monty Henderson.

Mayor Mike Gaskill, Paragould, to the State Aid Street Committee. Appointment expires Dec. 31, 2020. Replaces Mayor Mark Stodola.

Michael Hocutt, Little Rock, to the Contractors Licensing Board. Appointment expires Dec. 31, 2021. Reappointment.

Larry Brewer, Conway, to the Arkansas Fire Protection Services Board. Appointment expires on Oct. 14, 2019. Reappointment.

Dr. Vern Green, Jonesboro, to the Arkansas State Board of Registration for Professional Soil Classifiers. Appointment expires Nov. 1, 2021. Replaces John Harrington.

Dr. John Fleming, Little Rock, to the Department of Human Services State Institutional System Board. Appointment expires June 30, 2018. Replaces Douglas Kidd.

Thomas Wofford Jr., Jonesboro, to the Arkansas Department of Aeronautics. Appointment expires Nov. 9, 2021. Replaces William Morgan.

James Dawson, Clinton, to the Arkansas Department of Aeronautics. Appointment expires on Nov. 9, 2021. Replaces William McKenzie.

Barry Ball, Blytheville, to the Blytheville-Gosnell Regional Airport Authority. Appointment expires Nov. 1, 2022. Reappointment.

Russell Crowell, Manila, to the Blytheville-Gosnell Regional Airport Authority. Appointment expires Nov. 1, 2022. Replaces Oscar Ford.

Thomas Spillyards, Rogers, to the Board of Directors of the Arkansas Development Finance Authority. Appointment expires Jan. 14, 2021. Reappointment.

Gregory Stanfill, Rogers, to the Board of Directors of the Arkansas Development Finance Authority. Appointment expires Jan. 14, 2021. Reappointment.

Katelyn Busby, Monticello, to the Board of Directors of the Arkansas Development Finance Authority. Appointment expires Jan. 14, 2020. Replaces Sarah Capp.

Stephanie Ellis, Russellville, to the Board of Directors of the Arkansas Development Finance Authority. Appointment expires Jan. 14, 2021. Replaces Charley Baxter.

Larry Tate, Little Rock, to the Board of Directors of the Arkansas Development Finance Authority. Appointment expires Jan.14, 2021. Replaces Anthony Brooks.

Robert Moore, Arkansas City, to the Governor’s Advisory Council on Cycling. Serves at the will of the Governor.

Dr. Michelle Smith, North Little Rock, to the Governor’s Advisory Council on Cycling. Serves at the will of the Governor.

David Roberts, Maumelle, to the Governor’s Advisory Council on Cycling. Serves at the will of the Governor.

Joseph Jacobs, Little Rock, to the Governor’s Advisory Council on Cycling. Serves at the will of the Governor.

David Knight, Little Rock, to the Governor’s Advisory Council on Cycling. Serves at the will of the Governor.

D. Jim Dailey, Little Rock, to the Governor’s Advisory Council on Cycling. Serves at the will of the Governor.

Michael Chaffin, Little Rock, to the Governor’s Advisory Council on Cycling. Serves at the will of the Governor.

Dr. Jennifer Conner, Portland, to the Governor’s Advisory Council on Cycling. Serves at the will of the Governor.

Paxton Roberts, Fayetteville, to the Governor’s Advisory Council on Cycling. Serves at the will of the Governor.

Cherry Stewart, Hope, as a Justice of the Peace for the Hempstead County Quorum Court, District 2. Appointment expires Dec. 31, 2018. Replaces Billy Rook.

Kandice Bell, White Hall, as a Special Associate Justice of the Supreme Court of Arkansas. CV-16-435 Samuel A. Perroni v. David Sachar, executive director. Replaces Justice Karen Baker, who has disqualified herself from the case.

In today's Morning Roundup enewsletter, we linked to a story in the Texarkana Gazette about the Hempstead County Quorum Court voting to negotiate with Farmers Bank & Trust of Magnolia to purchase Farmers' building in downtown Hope.

In our summary of the story, we said Farmers is being purchased by Southern Bancorp Inc., but that is incorrect.

Southern Bancorp is buying a bank with a similar name, Farmers Bank of Hamburg (Ashley County).

We apologize for the error.

Howard M. Beaty Jr., president and CEO of First State Bank of Crossett for the past decade, has agreed to a $35,000 fine by the Federal Deposit Insurance Corp. for failing to file required reports on suspicious activity.

The consent order that Beaty entered with the FDIC on Dec. 15 was made public Friday morning. It contains few details, saying only that Beaty was First State's Bank Secrecy Act officer between 2010 and 2012 and that he "failed to timely file suspicious activity reports as required" by federal bank regulations.

More: See the consent order.

In addition to the fine, the order imposes several other requirements on Beaty, including "[i]f he knows, suspects or has reason to suspect that a transaction involves illegal activity, report the activity to the appropriate law enforcement authorities."

He was required to provide a copy of the order to the chairman of First State's board of directors, and he's required to inform any future bank employer of the order.

Beaty was not immediately available for comment Friday morning.

Kathy Deck said northwest Arkansas and health care services will be strong points for an otherwise less robust Arkansas job market in 2017.

Deck, the director of the Center for Business and Economic Research at the University of Arkansas in Fayetteville, made her remarks Friday at the 23rd annual Business Forecast Luncheon at the Hammons Center in Rogers. A year ago, Deck used "Cruising Altitude" as a metaphor for her Arkansas presentation; this year's outlook was less rosy.

"I now see us as more circling and trying to avoid the turbulence," Deck said. "Not exactly coming in for a landing but not an ascent either. That does mean we expect to see somewhat of a slowed pace into the rest of the year."

Deck said non-farm employment grew just 0.2 percent in Arkansas and by 0.7 percent in northwest Arkansas. Northwest Arkansas' job market is dominated by the trade, transportation and utilities industry and the professional and business services industry, which combine to account for 44 percent of the area’s jobs.

That should change in 2017. Northwest Arkansas is in the midst of a health care boom with multimillion-dollar construction projects by Mercy Northwest Hospital, Arkansas Children's Hospital and Washington Regional Medical Center.

Deck predicts an addition of 1,000 health care jobs as a result of the investments. Overall, she projects 4,400 jobs to be added in the region in 2017.

Despite northwest Arkansas' strong projection — even as Deck admitted that 4,400 jobs was a decrease from previous years — the state of Arkansas was only expected to add 4,800 jobs. That's 400 jobs overall even with a red-hot Jonesboro market and a relatively stable central Arkansas.

"I'm afraid we find ourselves very similarly oriented to where we were about 10 years ago where the non-metro parts of this state are not contributing in the same way," Deck said. "That's something for us to watch and it's a change from the first half of last year to the second half of this year."
The state's overall unemployment rate is below the national average but per capita income is lower than the rest of the country. The per capita income rate in northwest Arkansas remains higher than the national average but that gap closed this past year.

There was a significant drop in the northwest Arkansas job force numbers, which Deck said was because the region had reabsorbed those workers who had left the market during the recession of a decade ago. The state's labor force number was actually negative from 2015 to 2016. 

"I'm looking for job growth in places that are not northwest Arkansas or central Arkansas or Jonesboro," Deck said of her hopes for 2017.

The luncheon's presentations were moderated by Shelley Simpson, the chief marketing officer and executive vice president of J.B. Hunt Transport Services Inc. of Lowell. Stuart Mackintosh, the executive director of the Group of Thirty financial think tank, gave the global forecast, and former Department of Commerce economic advisor Ellen Hughes-Cromwick gave the national forecast.

Mackintosh opened with the disclaimer that his forecast represented his opinion and not those of the Group of Thirty. Mackintosh spoke of his worries about the "retreat" of globalization and a rise of individual country's mercantilism amid a "modestly positive" world economic forecast.

Hughes-Cromwick said the current American economy has expanded for 30 consecutive quarters, one of the longest in history. 

"The consumer has been the heart and soul of this economic expansion," Hughes-Cromwick said. "There's only three economic expansions in U.S. history have been longer. 

"Sustained economic expansion is a very healthy backdrop, even though we're not happy it's 2 percent growth as opposed to 3 or 4. Having sustained economic expansion in a post-financial crisis period is excellent; I'd give that a 5-star rating. Sustainability is more important than the rate of growth at this point in the business cycle."

Little Rock’s One Bank & Trust continues to operate under an unusual arrangement more than four years after the ouster of its owner and CEO, Layton “Scooter” Stuart.

The $310 million-asset lender has no stockholders in the normal sense. The U.S. Treasury beneficially controls OneFinancial Corp., the bank’s insolvent parent company.

However, Uncle Sam has adopted a passive position regarding its control of the OneFinancial shares, assuming the role of a debtor rather than an equity holder.

OneFinancial is still on the hook to repay $17.3 million it received from Treasury’s Capital Purchase Program back in June 2009. Many a quarter has passed since One Bank delivered dividends toward that debt.

All told, Uncle Sam has received nearly $7.7 million in connection with OneFinancial through interest payments and a settlement with the estate of Stuart, who died in March 2013.

Money from his life insurance proved to be a fiscal lifesaver for One Bank, although operational losses remain a quarterly norm.

That situation isn’t expected to change in the final quarter of 2016.

“Well, we’re going to lose money, but we’re continuing to make progress,” said Jerry Pavlas, brought in as One Bank CEO after Stuart’s forced exit in 2012.

A capital raise or sale remains on the table of possibilities for the bank.

“We’re looking to get to 9-10 percent tier one capital,” Pavlas said.

Making that mark would require doubling its current tally, more than $13 million.

One Bank & Trust, Little Rock
Staff: 73
Full-Service Locations: Little Rock 7; North Little Rock, 1
(All dollars in thousands)

*Reflects net unrealized loss of $978,000 on available-for-sale securities.
**Reflects a $3 million extraordinary item, money released from seized assets of Scooter Stuart held by the U.S. government. The cash reimbursed One Bank for premiums paid on the life insurance policy of Stuart, former owner and CEO of One Bank.
#Reflects a $1 million settlement the bank received in a lawsuit against Travelers Indemnity Co., an affiliate of St. Paul Mercury Insurance Co. The dispute was tied to One Bank’s efforts to collect $2 million on its financial institution bond for coverage that included “dishonesty of employees.”
##Reflects a $403,000 gain on the sale of mortgages on the secondary market.
+Reflects a $6,916,000 extraordinary item, final settlement release of seized assets of Scooter Stuart held by the U.S. government.

El Dorado’s First Financial Bank is no stranger to the Little Rock market. The $901 million-asset lender has operated a mortgage production office in the capital city since 1984.

After more than 32 years, First Financial intends to open a full-service branch in Little Rock. The facility represents the company’s first full-service office in Arkansas outside of Union County.

“We do want to expand our retail footprint,” said Chris Hegi, president and CEO of First Financial. “But there are no plans for other full-service branches right now.”

Besides its five offices in El Dorado and one in Smackover, First Financial has two full-service branches plus a loan production office in Mississippi.

The Magnolia State presence is an outgrowth of the 2006 acquisition of the $46 million-asset Cornerstone Bank of Senatobia, a near $8 million transaction.

First Financial has followed its own path, with an emphasis on loan production offices to serve its strong base of poultry lending.

In Arkansas, the bank operates mortgage lending offices in Conway, Jonesboro, Fayetteville and Fort Smith as well as agri lending offices in Mena, Morrilton and Pocahontas.

A Van Buren investment group bought a 268,000-SF office-warehouse in Rogers for $4.8 million.

Breeden Robinson LLC, led by Larry Breeden, bought the facility from Superior Industries International Arkansas LLC, a subsidiary of Superior Industries of Van Nuys, California.

The facility at 1301 N. Dixieland Road was built in 1989 and includes about 229,000 SF of warehouse space and 12,000 SF of office space.

Marshall Saviers of Sage Partners in Fayetteville represented the buyer, and Holmes Davis of Binswanger represented Superior Industries.

Upchurch Electrical
The president and CEO of Upchurch Electrical Supply bought the company’s Fayetteville headquarters.

Double DMC Holdings LLC of Fayetteville, led by David McConnell, paid $2.15 million for Upchurch’s 24,704-SF office and warehouse at 2355 N. Gregg Ave.

McConnell became sole owner of the company when he was named president and CEO in 2007.

Upchurch, a wholesale supply company, was founded in 1955 and has locations in Fayetteville, Rogers and Fort Smith.

Fayetteville’s Signature Bank of Arkansas assisted the purchase with a loan of $1.72 million.

The seller was KMW Holdings LLC, led by former President and CEO Jeffery Koenig, who retired in 2007. KMW Holdings acquired ownership of the facility for a bit more than $2 million in 2005.

Fayetteville Car Wash
Speedy Splash Car Wash Arkansas LLC of Owasso, Oklahoma, paid $1.05 million for the Auto Magic Car Wash at 3274 N. College Ave.

Speedy Splash is led by Tony and Lori Fitch.

The seller was DCE Inc., led by Drew and Ella McGee of Pea Ridge. Speedy Splash also acquired an adjacent half-acre lot on North Lee Avenue.

United Bank of Springdale assisted the purchase with a loan of $1.24 million.

Adams Street Townhouses
A housing complex in Fayetteville sold for $775,000.

Fayetteville Fund LLC, led by Philip Schmidt and Jordan Jeter, who are partners at Flake & Kelley Commercial Northwest, bought Adams Street Townhomes at 601 Adams St.

The complex has seven units of more than 9,500 SF.

The seller was CRR Properties LLC of North Little Rock, led by Arby Smith.

Bear State Bank of Little Rock assisted the transaction with a loan of $610,000.

Price Cutter
Harps Food Stores Inc. of Springdale bought its Cutter Food Warehouse in Springdale.

Harps paid $1.12 million for the 48,450-SF facility at 1101 S. Thompson St. The property is a little more than 1.5 acres.

The seller was Harp, Harp & Van Hoose General Partnership, a group composed of the Reland Harp Family Testamentary Trust, the Gerald Harp Family Trust and Jerre Max Van Hoose.

The general partnership group and Harps terminated a lease agreement before the sale.

Harps Food Store
A Springdale investor acquired a 7.5-acre property that includes a Harps Grocery and the Plaza Shopping Center at 1300 N. Thompson St. in Springdale.

Almaraz SPE LLC, led by Antonio Almaraz, paid $2.65 million.

The seller was Harp’s Properties of Little Rock.

Ohio National Life Insurance Co. of Cincinnati assisted the purchase with a loan of $4.2 million.

Springdale Dunkin’ Donuts
The site of a future Dunkin’ Donuts in Springdale went for $585,650.

Hyde Park Properties I LLC, led by Jack Goehring IV and Greg Vasey, bought the 0.7-acre lot on Elm Springs Road.

Goehring and Vasey are partners in Hyde Park Ventures, which operates Dunkin’ Donuts franchises.

The lot is adjacent to the Whataburger restaurant at 4172 Elm Springs Road.

The seller was Elm Springs Center LLC, led by John and Joyce Pak.

First Fidelity Bank of Oklahoma City assisted the transaction with loans of $1.03 million and $213,750.

The owners of the 30-story Regions Center in downtown Little Rock have filed a more detailed account of their debts and assets for the building in their Chapter 11 reorganization case.

The total debt is listed at $30.4 million, according to documents in U.S. Bankruptcy Court in Delaware. The building, the owners said, is appraised at $40.5 million. There are 32 LLCs with an ownership interest in the building.

The largest debt, which is secured by the property and the assignment of leases and rents, is to Wells Fargo Bank, a trustee for a pool of investors who made the loan to the building owners in 2006 so they could buy the property.

The investors have a legal name: the Registered Holders of COMM 2006-C8 Commercial Mortgage Pass-Through Certificates. (In last week’s Whispers, Wells Fargo was incorrectly identified as the lender.)

The gross revenue for building owners was $8.3 million in 2015, up 10 percent from the year before. The revenue, though, had fallen to $6.65 million from Jan. 1 through Dec. 9, 2016, the date they filed for bankruptcy protection.

The bankruptcy filing also showed that in March the building was struck by lightning, causing $250,000 in damage.

In the initial filings in U.S. Bankruptcy Court in Delaware in December, the owners listed estimated debts of between $10 million and $50 million.

The bankruptcy filing put a hold on all legal proceedings against the property owners, including the foreclosure lawsuit filed against them in November in Pulaski County Circuit Court.

An attorney for Regions Center’s owners, Mark Rubin of Florida, told Arkansas Business in December that the owners expect to be out of bankruptcy in the first or second quarter of 2017.

“We have a plan to reorganize the property and pay off the loan and to finance it with a new lender,” he said.

Trouble is brewing for Joanie White-Wagoner, administrator and vice president at the new $150 million Baptist Health Medical Center-Conway.

She and her husband, Darren Wagoner, are facing foreclosure on a 45-acre Conway horse ranch and restaurant complex that they bought less than a year ago.

In a complaint filed last month in Faulkner County Circuit Court, Centennial Bank claims that the Wagoners and their Inception Management Group LLC are in default on about $2.7 million in debt connected to the Back Achers Ranch and Legends Bar & Grill at 3725 College Ave. The complaint says that Wagoner and White-Wagoner failed to make payments on a $2.5 million mortgage they assumed in buying the property from Letitia McMaster in May, as well as a $200,000 business loan from the same time.

The property, including the restaurant and a 47,000-SF arena, appears to be out of business. The restaurant’s listed phone number has been disconnected, and repeated calls to the ranch number drew a busy signal.

White-Wagoner was named to lead the Conway hospital a year ago, long before its opening in September. Previously, she served as the administrator and chief operating officer of Texas General Hospital in Midlothian, Texas. She is an Air Force veteran and longtime rider, according to various interviews.

The Centennial complaint, filed by Sherwood attorney Vaughan Hankins, says that the Wagoners personally guaranteed the loans, and that as of Dec. 22 they owed $2.5 million and accrued interest of $46,780 on the mortgage alone. “The Bank’s right of foreclosure has become absolute” on both loans, the complaint says.

White-Wagoner did not return a call to her office at the hospital on Thursday, and no response had been filed in court.

WASHINGTON - President Donald Trump signed an order on Monday that will seek to dramatically pare back federal regulations by requiring agencies to cut two existing regulations for every new rule introduced.

"This will be the biggest such act that our country has ever seen. There will be regulation, there will be control, but it will be normalized control," Trump said as he signed the order in the Oval Office, surrounded by a group of small business owners.

Trump's latest executive action will prepare a process for the White House to set an annual cap on the cost of new regulations, a senior official told reporters ahead of the signing.

For the rest of fiscal 2017, the cap will require that the cost of any additional regulations be completely offset by undoing existing rules, the official said on customary condition of anonymity.

Trump, a businessman turned politician, campaigned on a promise to reduce federal regulations that he said burdened American businesses.

Major regulations are typically reviewed by the White House's Office of Management and Budget (OMB) before they are issued. That review will continue under this new measure, but agencies will also have to identify what two regulations will be repealed to offset the costs of any new rule.

The new order does not require that the repeal of the two regulations be done simultaneously with the release of additional rules, the official said.

"This vests tremendous power and responsibility in the OMB director to ensure the president's direction in how we manage this across the government," the official said.

Certain categories of regulations will be exempt from this new policy, including those dealing with the military and national security. The OMB director will also have the ability to waive this policy in certain instances.

Trump has tapped U.S. Rep. Mick Mulvaney, R-South Carolina, to lead the OMB.

WASHINGTON — More Americans signed contracts to buy homes in December. The increase possibly reflects more people scrambling to purchase homes as mortgage rates have been rising and increasing the costs of ownership.

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

Momentum Jonesboro, the economic development fundraising plan targeting job growth in northeast Arkansas, is on pace to reach its $3.7 million goal in May, as officials hoped.

But the city isn't waiting on the final tally to begin work.

Designed to create 2,500 jobs that pay $42,000 or more a year — with the related economic benefits that entails — Momentum Jonesboro is a five-year plan that has already secured $2.2 million in private capital from 31 different companies.

"The business sector that is participating in Momentum Jonesboro I think is excited about the plan," said Mark Young, president and CEO of the Jonesboro Regional Chamber of Commerce. "It is taking our existing efforts to a new level and we're excited about what the future holds."

The fundraising initiative, devised by the private partnership development organization Jonesboro Unlimited, is focusing on three primary areas: marketing and staff to court selected industries, workforce development and improving Jonesboro's quality of life standards.

Young said efforts are already underway on all fronts, including workforce development, which is targeting five industries based on existing talent, resources, economic factors and past relationships.

Those industries, Young said, are agriculture business, advanced manufacturing (which includes food processing, equipment manufacturing and pharmaceuticals), logistics, health care and professional services.

"We've started the implementation process of the strategic plan," Young said. "And so … as part of that, we have just recently launched a new web site that was part of that strategic plan. In addition to that we have task forces that are working in each of those areas I've mentioned before."

Workforce development, Young said, will focus primarily on education and the strategy ranges from pre-K schools up to Arkansas State University plus local trade and technical schools like ASU-Newport, which has a campus in Jonesboro. The Momentum Jonesboro task force, for example, is delving into a plan that would chart a student's advancement in the field of information technology from eighth grade through college graduation.

"Part of it is looking at the skills we need in those targeted industries, part of it is ensuring we have the talented workforce to succeed today, three years from now, five years from now and 10 years from now," Young said.

Young noted that northeast Arkansas has always been a strong region for agriculture in the state, while the city's utility price structure has traditionally lent itself to manufacturing and food processing. The designation of Interstate 555 and improvements to local roads and highways set the table for success with logistics and distribution firms, Young said, while professional services like information technology, engineering and accounting are ripe targets in today's economy.

Pharmaceutical manufacturing is less established in the northeast Arkansas region, but health care plays a large role. St. Bernards Healthcare — of which Momentum Jonesboro General Chair Chris Barber is CEO — is the city's largest employer with more than 2,800 workers.

Additionally, Young said, Arkansas State has partnered with the New York Institute of Technology to implement a doctoral program in osteopathic medicine, giving ASU its first medical school.

"If you look at the assets our community already enjoys, we serve as a health care hub for the region," Young said.

While Jonesboro's unemployment rate of 2.8 percent (U.S. Bureau of Labor) is well below the national average of 4.7 percent, 2015 U.S. Census Bureau data shows the median household income was $41,688, 25 percent below the national average (and also below the state average). More than 23.7 percent of Jonesboro residents were at or below the federal poverty line.

Such performance figures helped provide the impetus and goals for momentum Jonesboro, Young said.

"If you look at the average wage in Craighead County it's roughly, approximately that, so everything we want to focus our attention on is above that," Young said.

"If you look at the targeted industries that we have, each of those areas that we are targeting and being very intentional about pay above that particular threshold."

December unemployment was down in Arkansas from a year ago, according to Bureau of Labor Department figures released Wednesday.

The bureau reported overall unemployment in Arkansas at 3.8 percent, down from 4.6 percent a year ago but up from the 3.5 percent recorded in November.

Overall unemployment rates were down in 236 of the nation's 387 metropolitan statistical areas, higher in 111 and unchanged in 40.

Unemployment dropped in each of Arkansas' six metropolitan areas from December 2015. Fayetteville-Springdale-Rogers showed a decrease from 3.2 percent to 2.7 percent, and in nearby Fort Smith, the rate dropped from 5.1 percent to 4.3 percent.

There were 27 MSAs in the United States with unemployment below 3 percent, and five had rates of 10 percent or more. Other than Fayetteville-Springdale-Rogers, none of Arkansas' other areas were below 3 percent, but all but one of the state's MSAs were below the 4.5 national average (not seasonally adjusted), which was down from the 4.8 percent recorded in December 2015. 

December unemployment in the Hot Springs MSA dropped from 5.1 percent in 2015 to 4.3 percent; the Jonesboro MSA fell from 4.1 percent to 3.2 percent, and the Little Rock-North Little Rock-Conway MSA dropped from 4.0 percent to 3.3 percent. 

Only the Pine Bluff MSA unemployment rate was above the national December average, but it was also down from November, dropping from 6.3 percent to 5.2 percent. 

The rate in the Texarkana MSA rose slightly from 4.5 percent to 4.6 percent, while Memphis dropped from 6.1 percent to 5.3 percent.

There were 192 areas with a jobless rate below the average of 4.5 percent while 186 had rates that were higher and nine had rates equal to the national average. 

The lowest unemployment percentages in the nation were found in Ames, Iowa, and Burlington, Vermont. Both were at 2.1 percent.

The highest unemployment percentages were found in El Centro, California, (18.8 percent) and in Yuma, Arizona (15.3 percent).