Wal-Mart is a third generation employer for the Doug and Dave Musteen of Rogers, identical twin brother who just celebrated 30 years with the retail company. The brothers began their careers just after high school graduation in May 1983.

Doug has one week longer with the company than his twin, but both of them started in warehouse distribution, reporting to Warehouse Nos. 4 and 2 for their first full-time jobs.

The brothers said they have never had the opportunity to pull the identity switch as a prank in the workplace because in their 30 years they have seldom worked in the same building. They did both work in Wal-Mart’s Information Systems Division at the same time for a short while before Doug transferred to the Jewelry Warehouse.

“Our dad ran the Pea Ridge Grocery when we were growing up and we worked for him back then. But as soon as we turned 18 we both got jobs with Wal-Mart and today our dad is a greeter in Store No. 1 in Rogers,” Doug Musteen said.

The Musteen brothers are also the nephew of Ron Loveless, who was the first president of Sam’s Club, the warehouse sales division of Bentonville-based Wal-Mart Stores.

“Nearly everybody in our family has worked at Wal-Mart at some point,” said Dave Musteen.

Dave’s wife Lisa also works at Wal-Mart and between both of their families there is a 200 year record of service at the retail company. The twins said they have found it difficult to separate the corporate culture from their home lives, but they aren’t calling Saturday morning meetings.

“Mr. Sam’s teachings: strive for excellence and respect for the individuals are not just good for business, they are also important in your personal life,” Dave Musteen said.

The brothers said they were introduced to Wal-Mart at an early age as their grandfather and mom worked for the company.

“Our grandpa would take us fishing every Saturday and both Dave and I were part of the Wal-Mart bass club back then, which was a group of about 15 or 20 associates. We would go fish together on different lakes and we got to socialize with buyers and senior leaders on these outings.” Doug Musteen said.

The organization folded after a few years as the company continued to grow, he said.

Doug Musteen admits that he bleeds blue, because of his dedication to Wal-Mart .

“I have missed just 5 days of work in 30 years,” he said. “I love my job, and the fact that Wal-Mart has meant so much to my family and this entire town.”

The Musteen brothers each expect to retire from Wal-Mart when the time comes.

“The people at Wal-Mart are like our second family, we enjoy working and volunteering with our teams knowing that we can make a difference for our communities” Dave Musteen said.

That employee dedication is a common thread that runs through much of the company’s expansive workforce, according a recent issue of Walmart World, the retailer’s internal magazine.
news.walmart.com/walmart-world-40-year-milestones-august-2013?utm_source=wm&utm_medium=email&utm_term=body5&utm_content=20130828&utm_campaign=27542936

In August, the retailer had seven employees celebrating 40 years with the company. Another 43 crossed the 35 year mark, according to Wal-Mart spokeman, David Tovar.

“I think that's just amazing. In fact, nearly one in four of our hourly U.S. associates have been with the company for 10 years or more,” he said.

Tovar said Wal-Mart promotes 160,000 of it employees each year.

The Jackson L. Graves Foundation announced today (Sept. 4) the departure of Mitzi Traxson as the organization’s managing director, who is pursuing other opportunities. Traxson has served as managing director since 2007.
 
Audre Darling has been selected to manage the day-to-day affairs of the organization and will carry the title of executive director. Darling is University of Arkansas graduate and has worked closely with charitable organizations such as Feed Fayetteville,. She is the show host of the radio program, Community Matters and works as community affairs coordinator for Cumulus Broadcasting.

Her focus will be on growing the mission of the Jackson L. Graves Foundation and working with a board that will be formed later this year.

Since 2007, Traxson has helped the foundation raise more than $200,000 for charitable purposes.

“Mitzi has not only been a fantastic managing director but she is our close personal friend,” said Angie Graves, “She is responsible for building the foundation into a dynamic and sustainable charity that continues to innovate in the area of neonatal care.”  

During Traxson’s tenure the foundation has added partnerships with Washington Regional Medical Center in Fayetteville, Willow Creek Women’s Hospital in Northwest Arkansas and Lahav Lab at Brigham & Women’s Hospital in Boston, Mass.

These partnerships are in addition to the long term connection to Arkansas Children’s Hospital which began in 2005.  

“We have grown substantially since 2007 and Mitzi has been a huge part of that growth,” said Angie Graves.

The Jackson L. Graves Foundation’s mission is to improve the quality of life for neonatal and pediatric patients and families.

Building permit values were a combined $17.67 million in Fort Smith, Greenwood and Van Buren for the month of August, up 61.31% from the same period last year. Last month's increase also shows an uptick from July, with a 21.73% jump in combined permit values in the three cities.

For the first eight months of 2013, combined permit values totaled $124.687 million, an increase of 44.01% from the same eight month period in 2012.

FORT SMITH
The city of Fort Smith had a total of 158 permits issued last month for a total value of $16.753 million.

Of those permits issued, the most valuable permits were issued for building expansions at $5.379 million.

The largest of the expansions was a $4.279 million expansion at Umarex, a firearms manufacturer located at 7700 Chad Colley Boulevard at Chaffee Crossing. The expansion is part of a multi-phase expansion, according to Umarex President and CEO Adam Blaylock. The building permit issued in August was for phase two.

Once all three phases are complete, the more than $7 million in improvements to the Chaffee Crossing campus will allow for both Umarex and Walther Arms, the company's sister company, to be housed at the same location, Blaylock said.

Another major commercial project approved for a permit during the month of August was the softball field additions at Ben Geren Regional Park. The fields, which are being built by the city of Fort Smith and managed by Sebastian County's parks and recreation department, were issued a permit valued at $1.232 million.

In all, 35 commercial permits accounted for $11.506 million in value.

On the residential side, 93 permits were issued with a total value of $3.78 million. Of those, only nine were new construction at a value of $3.068 million while 51 repair permits valued at $277,547 were issued.

One of the residential permits issued included a new home located at 7003 Hestand Lane valued at $1.057 million. FFH Construction and Jake Files are listed as the contractors for the project.

GREENWOOD
Greenwood's construction permits were limited to three projects valued at $162,631. Of those, one was a commercial remodel or repair valued at $15,231, one was a new home valued at $121,400 while the remaining permit was for a new swimming pool, valued at $26,000.

VAN BUREN
Permits in the northern part of the Fort Smith metro area were driven by new residential construction.

The city of Van Buren issued 10 permits valued at $574,300 for new single family home construction.

The values for the city in August represent a significant increase from July, when only $251,000 in building permits was issued. In total, the month-to-month increase from July to August was 200.2%.

2012 RECAP
Combined values in the three cities during 2012 were $157.32 million, compared to $201.079 million during 2011. The 2012 value is above the $149 million in 2010, but below the $164 million during 2009.

Fort Smith closed 2012 with the largest share of valuations, logging $136.428 million (a one-year decline from $179.288 million of about 23.9%), while Van Buren was the next largest with $12.282 million (a one-year decrease from $12.39 million of approximately 0.87%). Greenwood posted an additional $8.609 million, which was down slightly from last year’s $9.461 million (down about 9%).

The 2012 figures were compared against a $28.5 million permit for the construction of a Mitsubishi wind-turbine assembly plant at Chaffee Crossing. The plant has been mothballed by the company. Even without that permit, the Fort Smith metro area lagged when compared to 2011 showing a decrease of around 8.8%.

Temperatures weren’t the only thing hot in July. The local construction sector reports a strong month of building with new residential and commercial permit values rising 27.86% from a year ago in the region’s four largest cities.

Fayetteville, Rogers, Springdale and Bentonville issued new construction permits totaling $42.523 million in July compared to $33.256 million in the same month of 2012. This report looks at new construction and does not include, additions or renovations. Roughly 80% of the total construction activity was in single family housing, a market that is working overtime to keep up with demand amid record low inventory levels and a shortage in skilled workers, according to industry insiders.

Builders started on 151 new homes in July among the four cities in this report. Total new permit values equaled $34 million, up 14.35% from $29.737 recorded in the year-ago period, according to the respective cities.

New Home Permit Values (July)
Bentonville $10.552 million, up 3.97%
Fayetteville $10.381 million, up 31.93%
Rogers $8.773 million, up 16.82%
Springdale $3.8 million, down 7.67%

“Home building is great catalyst for the economy and we are hearing that local builders are busy, some are having push the calendars back a few weeks because they there is more demand and a shortage of skilled workers,” said Brent Hanby co-owner and chief operating officer for Encore Flooring and Building Products in Springdale.

Brenda Jones, director for the Northwest Arkansas Home Builders Association, said local builders and remodelers are having a hard time finding quality framers, electricians, plumbers and other skilled labor.

“We added a ‘Help Wanted’ listing to our newsletter and there are constantly postings from companies seeking skilled subcontractors who want to work. I have had a few builders tell me they have all the work they can handle at this time. We also had five or six builders who planned to put new their homes in our June Parade of Homes but they sold them quicker than expected,” Jones said.

Arkansas is part of a national trend as new home inventories remain at a 10-year low. At the same time, new home sales across Benton and Washington counties have been strong, up 16% this year over last, according to Paul Bynum of MountData Inc.

Single family home starts rose to 591,000 across the U.S. in July, up from 512,000 a year ago.
 The year-over-year rise in single-family home construction contributes approximately 500,000 jobs to the U.S. economy, according Regional Economic Models Inc., a data analysis firm.
 REMI said the net gain in construction jobs totaled nearly 2 million new positions added from July 2012 to July 2013.


Locally, construction jobs rose to 8,800 in July, up from 8,300 year ago. The construction sector employment peaked at 12,700 in July 2006 ahead of the market bust, according to the Bureau of Labor Statistics.

Hanby said demand has picked up in the local area at the same time new home inventories are low, the complete opposite of what happened in late 2006 when the residential market crashed.
 This time housing is helping to lead the national economic recovery not making it worse, Hanby added.


“Construction of new homes is a major driver of our economy at the national and state levels,” said Dr. Frederick Treyz, CEO and chief economist of REMI. “We estimate that for every new house constructed, between four and five new jobs on average are created.”


Jones said the local home construction business is strong today, but when there is ample demand and a shortage of skilled labor the risk of handyman imposters also rises.


“We have been getting more calls from consumers who said they have paid for work as long as six weeks ago which was never completed. Consumers need to check out the contractors before they hire them and certainly before they pay them. We provide a free service to the local public who want to check references on a contractor or handyman,” Jones said. 


COMMERCIAL SECTOR

The four cities in this report also issued a few permits for new commercial projects during July. Those permits totaled $8.523 million, compared to $3.556 million in the same month of 2012.


Fayetteville issued three permits totaling $4.829 million, the largest of those is the new Hilton Garden Inn under construction at 1325 N. Shiloh Drive, near the Wedington exit on Interstate 540. That project is 115 rooms with a valuation of $4.009 million.  


The city also issued a permit for Sycamore Row Homes who is building a mixed-use facility at 360 W. 5th Street. These units will be retail on the ground floor with residential housing above. That permit was valued at $683,591. The other permit was for a communication tower along Zion Road.


In Bentonville, there was one new commercial permit for Bright Ridge Dental at 1603 Southwest Regional Airport Blvd. That permit was valued at $347,157.


In Springdale, Hunt Ventures got a permit to build a new medical clinic at 2158 Butterfield Coach Road. This permit was valued $2.012 million.


Rogers issued four new commercial permits valued at $1.264 million. These permits were for an office finish-out for Perkowitz + Rush Architects and three projects for Elder Construction for senior living units.

Oklahoma Gas & Electric Company on Tuesday (Sept. 3) joined Oklahoma Attorney General Scott Pruitt in challenging a ruling by the Denver-based 10th Circuit Court of Appeals that would allow the Environmental Protection Agency to impose strict pollution regulations on the state.

OG&E officials contend the EPA mandate will result in higher costs for all customers in the utility’s network.

Residential customers as a group would likely face the bulk of increased costs. Operating revenue for OG&E for the first half of 2013 from residential sales was $402.3 million, or just short of 40% of the total operating revenue of $1.03 billion. Commercial power sales were 24.46% of total operating revenue.

In a telephone conversation from the company's Oklahoma City headquarters, Spokesman Brian Alford said the EPA was not allowing the state to implement its own plan to reduce sulphur dioxide emissions as required by the Clean Air Act.

"Each state was required to put together a plan to outline how it would reduce its emissions," Alford said. "Oklahoma put out a plan that continued to use coal (in power plants), but at the same time used more natural gas and other technology to remove emissions."

The EPA rejected the plan, which was meant to comply with the CAA's "regional haze rule."

The state fought the EPA's actions, but a 2-1 panel of appellate judges on the 10th Circuit ruled in favor of the EPA. Now the state is wanting a full hearing before the 10-member appeals court.

“Our appeal for a rehearing before the full 10th Circuit gives us an opportunity to continue the fight to preserve the state’s ability to create an Oklahoma solution to address regional haze,” Pruitt said in a statement. “Regional haze is about improving visibility, not about health. The Clean Air Act clearly gives states a primary role in implementing regulations to address regional haze. Oklahoma leaders crafted a commonsense plan to meet the goals of the Clean Air Act without imposing unnecessary rate hikes on Oklahomans. The EPA was wrong to ignore the Oklahoma plan and impose a federal plan.”

Alford said implementing the EPA's plan instead of the state's plan would impact not only OG&E, but also customers in Arkansas and Oklahoma who depend on OG&E for power.

The reason customers would be affected is due to the EPA's desire to put in place rules that would require the company install scrubbers, or emission control technologies, at four of the company's five coal-powered units, Alford said.

"We estimate the financial impact of that to be $1.2 billion," he said. "Our position is that the state of Oklahoma put forward a plan that achieves the same outcomes but for far less cost to the customer."

Coal is a large part of the company’s power production. According to the OG&E’s recent 10Q filed with the U.S. Securities and Exchange Commission, production cost 3.218 cents per kilowatt hour for the six month period ended June 30, higher than the 2.701 cents in the same period of 2012. Of that cost, 2.295 cents was from coal power, above the 2.26 cents in the same period of 2012.

Should the appeal not be heard before the 10-member appeals court, or should the hearing not result in a favorable outcome for the state and OG&E, Alford said customers are the ones who will be on the hook for the installation of the scrubbers at the company's power plants.

"If we are unsuccessful at the 10th Circuit, it's like the clock will begin running for completion of the emission control technology, which is 55 months," he said. "We would expect over the course of that 55 months is when customers would see those increases. Our goal would be to have incremental adjustments over that time horizon versus rate shock at the end of 55 months."

OG&E supplies power services to over 800,000 customers, with about 80,000 living in the state of Arkansas, Alford said.

While no timeline for a decision has been reached, Alford said he expects a decision "in the not-to-distant future - sometime in the next several months."

Investors have not yet backed away from company share, although the price has dipped in the past three weeks. Shares of OG&E closed Wednesday at $35.16, up 39 cents. During the past 52 weeks the share price has ranged from a $39.55 high to a $26.84 low.

The Food Safety and Inspection Service said Friday (Aug. 30) that it has cleared the way for some fully-cooked chicken and turkey to be exported from Chinese processors into the United States. FSIS is a division of the U.S. Department of Agriculture and oversees poultry exports and imports as well as all domestic poultry processing.

The announcement comes on the heels of thorough plant inspections in China which took place in March. After several months of implementing minor changes, the F.S.I.S. deemed China’s poultry processing procedures to be on par with that in the U.S.

FSIS officials said certified establishments in the China may begin exporting processed (heat-treated/cooked) poultry products to the United States under certain conditions.

Initially, Chinese plants that get certification can ship cooked poultry for sale in the U.S. But one major stipulation is the cooked chicken and turkey must have been raised in the U.S. and Canada. In other words, U.S. processors would have to ship raw poultry to Chinese processors who then cook it and sell back to the U.S.

Industry trade groups in the U.S. applauded the USDA’s move to open up trade even at this limited level because it is a show of good faith in what has been contentious trade relations between domestic and Chinese poultry groups for several years.

The USA Poultry & Egg Export Council (USAPEEC) told The City Wire it welcomes last week’s announcement by FSIS that reaffirms the equivalence of China’s inspection system for processed poultry.

This is the culmination of more than six years of efforts led by USAPEEC and a coalition of industry organizations, including the National Chicken Council, the National Turkey Federation and the American Meat Institute, said Toby Moore, spokesman for the trade group.

Moore said the group firmly believes that recognition of China’s inspection system as equivalent to that of the U.S. will go a long way toward mending trade relations with China that have surfaced as a result of unfair and unjustified comments by organizations and politicians without a full understanding of the science or technical issues at hand.

“When it comes to China, one of the world’s largest economies, we have much more to gain than we have to lose. Does the U.S. welcome additional poultry imports? Not really, but then our industry is confident in its ability to compete effectively and efficiently in a global marketplace, and would much prefer to exist in an environment that is unconstrained by protectionism and artificial trade barriers. Free and open trade must mean free and open trade for all,” Moore said.

Cargill operates large turkey processing facilities in Springdale and Ozark and spokesman Michael Martin said those operations do help the company export some turkey to China.

“China has had a long-standing desire to export processed poultry to the U.S. and we view this as a positive development for greater free trade in the protein sector between the U.S. and China in the future,” Martin said.
 
Tyson Foods, the nation’s largest chicken processor, declined comment on the issue but rather deferred to it’s trade organization, the National Chicken Council.

China is a big customer for Tyson Foods, representing 27% of the company’s total international chicken sales last year. Tyson reported poultry sales to China worth $621 million in fiscal 2012. That includes exports to China and sales generated with Tyson’s in-country operations there.

“We certainly don’t look forward to many more imports, but we also realize free trade is a two-way street,” said Tom Super, spokesman for the National Chicken Council.

He said the industry hopes that China will look a little more favorably on U.S. chicken products and other agriculture imports in the future, following this move by the U.S. The U.S. poultry industry has been profitable this year thanks in part to strong exports to Mexico and elsewhere. But exports to China have carried hefty duties since the country imposed anti-dumping taxes to the incoming poultry products from the U.S. in 2010.

Last month the U.S. won its case with the World Trade Organization on behalf of chicken companies proving that China’s imposition of higher duties is “unjustified under international trade rules.” Super said after the duties were levied American export of chicken products to China dropped by 80%.


“A WTO dispute settlement panel agreed with the United States, finding that China violated numerous WTO obligations in conducting its investigations and imposing anti-dumping duties and countervailing duties on chicken imports from the United States,” Super said.

Moore said China has 45 days to appeal the WTO ruling but he is hopeful the recent actions by the FSIS will be viewed favorably and ease the challenging relations.

In 2011, U.S. trade officials said poultry sales to China were worth about $600 million a year. According to the U.S. Department of Agriculture, U.S. broiler chicken product exports were worth $3.1 billion in 2010, making up nearly 20% of all poultry exports.

Food Safety activists do not approve of the U.S. importing any of its food supply from China because of a stained track record the nation has had with tainted product. They said it will be impossible for U.S. consumers to know if the chicken they consume was processed in the U.S. or China, because the raw product will have originated in the U.S. or Canada there are no Country of Origin Labeling required.

FSIS officials said imported Chinese chicken will not be used by schools and federal food programs.

While Fort Smith has shed thousands of manufacturing jobs over the last several years, two companies with operations at Chaffee Crossing have found themselves to be not only stable, but growing in this tough manufacturing climate.

One company that has positioned itself along the route that will eventually flow through the former military installation is Graphic Packaging, which opened its 300,000-square-foot facility at the intersection of Roberts Boulevard and the future Interstate 49 in 2005, when the interstate and Chaffee Crossing were not much more than a dream.

I-49, a roadway already complete in MIssouri and through most of Louisiana that will open a transportation route from the Gulf of Mexico through Chaffee Crossing and eventually on to the Canadian border.

Asked why the company chose the Chaffee location, Plant Manager Aaron Mauch was direct.

"Access to I-49 and transportation lanes to both I-40 and south to our board mill in Louisiana," he wrote.

GRAPHIC EXPANSION
And while the company has had to wait for I-49 to become a reality, it has not stopped the company from expanding its local workforce, where more than 350 are now employed at the Chaffee Crossing facility and at the company's original 176,000 square foot Boone Avenue facility built in the 1970s, which Mauch said has since been updated for new production.

"In 2007, Graphic Packaging converted the facility on Boone Avenue to produce Z-Flute cartons. Z-flute is specifically targeted for club stores food packaging," he said.

And changes at the company are not finished, as Mauch said "incremental printing and cutting capacity will be added early next year."

While the company may be downplaying the increase in capacity, building permits issued by the city of Fort Smith for the month of July indicate that the addition to Graphic's Chaffee Crossing location will be more than $3.4 million.

Patrick Combs, director of operations at Graphic Packaging, said while it was too early to tell how the expansion would impact labor numbers at the site, the number of employees at the facility "will go up. We're putting together the numbers right now."

So how has the company been able to not only remain stable, but expand in a period when so many other companies in Arkansas, such as Nordex and Hewlett Packard, are laying off hundreds?

"Graphic Packaging has maintained its leadership in the packaging industry by providing innovative and value-added, sustainable packaging solutions that are used by brands around the world," Mauch said. "You have probably purchased food, beverages or other consumer products in the grocery store or club store that are sold in Graphic Packaging's product. We focus on product innovation and continuous operational improvements. Graphic Packaging's integrated supply chain and diverse customer base is crucial to the businesses. This means, we are one of the largest global manufacturers of folding cartons, unbleached paperboard, coated recycle board, flexible packaging, microwave packaging, heat-transfer labels and machinery."

UMAREX GROWTH
Another Chaffee Crossing business that is a leader in its industry is Umarex USA, a manufacturer of air guns and other firearms, which announced last year a $7 million expansion of its Fort Smith campus as Walther Arms moves its operations to the Umarex campus, built in July 2010, at Chaffee Crossing.

At the time, Arkansas Gov. Mike Beebe said the workforce available in Fort Smith had been one of the motivating factors for Umarex to originally locate in the city, where the German-based company has leased space since 2006.

Adam Blalock, president and CEO of Umarex USA and Walther Arms, said he has put a big emphasis on hiring since the companies have come to call Chaffee Crossing home.

"We put a very strong emphasis on hiring, on building the team," he said. "With the rapid growth, the trick has been bringing the right people on board at the right time. And we have a lot of experience represented on our team, relevant experience. People who know our trade and industry and who understand that the distribution channel. I call it distribution channel expertise, people who know what it means to do business with Wal-Mart, Bass Pro, Cabela's, Academy and they understand that."

In addition to having the right employees available, Umarex was encouraged to place roots at Chaffee through different economic incentive packages, Blalock said.

"When it came time for our building expansion, we did have options and we were willing to do whatever we needed to do that was best for the business. The Arkansas Economic Development Commission, the Fort Smith Regional Chamber of Commerce and Chaffee Crossing were all just terrific to work with and for the most part, I was very frank in saying we want to be in Fort Smith, but we need your help to solidify that decision with the building."

PLANNING AND LUCK
Even so, incentives have not always ensured that companies using those perks keep their local operations financially viable, once again as evidenced by the recent HP layoff of nearly 500 employees after accepting economic incentive perks for locating in Conway.

Blalock said for Umarex, the company has stayed strong through a combination of good planning and a little bit of luck.

"We strategize, we write a business plan. On the air gun side, it's been very hard-earned. It's been hard-earned on all fronts, but a lot of people in the community when I run into them, they go, 'Well, it must be nice to be in the firearm business right now because every time Obama talks about gun control the markets go crazy.' And that's true," he said. "It wouldn't be genuine if I said we hadn't benefitted from a robust market. But even that's been hard-earned. But on the air gun side, really, that's been relatively little affect except traffic in a Bass Pro obviously affects air guns a little bit because they're in there after firearms. But I'd say air guns and air soft (that have been the core of our growth)."

As the company expands, it will do so in three phases over the next few years, with phase one nearly 60% to 70% complete, Blalock said, and phase 2, valued at around $5 million, was recently awarded to Beshears Construction in Fort Smith.

‘FUTURE IS MANUFACTURING’
And Umarex has no plans to slow down, either, as the company looks to grow its Fort Smith-based workforce beyond its more than 80 full-time Fort Smith employees.

"There's a project on the Umarex side that we call 'Made in Fort Smith,'" Blalock said. "It's identifying future products and getting our supply base together. It's the whole strategy that's rolling out to our making air guns here (instead of other contracted facilities across the nation or in Germany). And we have a similar strategy on the Walther side. But we are not at a place on that timeline where we've identified here's what we're going to make."

As the company continues planning for that future growth, Director of Marketing Justin Biddle said one thing was certain at Umarex.

"The future is manufacturing."

That would be a welcome future. There were an estimated 18,600 manufacturing jobs in the Fort Smith area in July 2013. The number of jobs in the sector are down more than 41% compared to July 2000 when 31,700 were employed in regional manufacturing jobs.

In a surprise move, Bentonville-based Arvest Bank and Pine Bluff-based Simmons First National Corp. submitted bids to acquire Little Rock-based Metropolitan National Bank, whose parent company, Rogers Bancshares, Inc., is embroiled in a bankruptcy proceeding.

Arvest’s bid was announced in a legal notice in the Arkansas Democrat-Gazette for an undisclosed figure, while Simmons First disclosed a $16.9 million bid in a SEC filing.

Metropolitan officials announced in early July that the bank would be acquired by Ford Financial Fund II, a private equity fund led by Dallas investor Gerald J. Ford and his partner, Carl Webb. Ford Financial Fund II said at the time it was aiming to purchase all of Metropolitan National Bank’s stock for $16 million and recapitalize the bank.

On Thursday, however, Simmons First disclosed its bid on the bank, which is nearly $1 million more than Ford Financial proposed. Arvest’s bid, which did not provide a dollar amount for the offer, appeared in the legal notice section of the statewide newspaper.

“Arvest Bank Group, Inc… intends to apply to the Federal Reserve Board for prior approval to acquire 100% of the issued and outstanding shares of Metropolitan National Bank,” the legal notice stated. “The Federal Reserve System considers a number of factors in deciding whether to approve the application, including the record of performance of banks we own in helping to meet local credit needs.”

“MNB [Metropolitan National Bank] has a rich history of providing exemplary customer service to the communities in which it is located. Simmons First, if it is successful in its attempt to acquire MNB, will combine the operations of MNB with Simmons First National Bank and continue to provide the highest quality customer service throughout the combined service area,” Simmons First officials said in a SEC filing.

The two banks and Ford Financial Fund make for three known qualifying bidders for Metropolitan. The bids were due on Tuesday, Sept. 3. By nature of becoming a qualifying bidder, all of the entities must have exceeded the previously announced $16 million offer from Ford.

Now, a “private” or “closed” auction will take place on Monday, Sept. 9, 2013 at an undisclosed location. All three qualifying bidders will be able to participate in the auction with the highest bidder eventually winning Metropolitan’s assets.

In its second year the ARK Challenge rolled out nine solid company startups before  more than 35 investor groups on Thursday (Sept 5) at the final Demo Day at Crystal Bridges in Bentonville.

In a surprise announcement around 1:30 p.m. Clete Brewer, CEO of BlueInGreen, said there would be three companies chosen again this year for the $100,000 funding level. That is one more than the groups anticipated because Gov. Mike Beebe and Grant Tennille, executive director of the Arkansas Economic Development Commission, felt compelled to contribute.

Brewer joked that Tom Dalton, of sponsoring Winrock, did a little arm twisting, but not too much given the high caliber of viable business opportunities in the room.

Langhar, Info Assembly and Overwatch were the three teams selected by the investment panel following their eight-minute pitch presentations on Thursday. Being selected is a game changer for these early stage companies, most of which were not much more than idea just 14 weeks ago.

These teams were selected from a field of 92 applicants back in April, then whittled down to the nine who worked closely with ARK Challenge mentors and partners to get those ideas into scaleable prototypes and revenue generating businesses.

The program sponsors include: Fund for Arkansas’ Future, Gravity Ventures, Winrock International, New Road Ventures and Arkansas Development Finance Authority.

Passenger Baggage Xpress was the team chosen by the University of Arkansas RFID Research Center for the board member position. RFID Research Director David Cromhout said the board seat is worth $25,000 and it puts them in close contact with dozens of key leaders in logistics. PBX is based in Little Rock

OVERWATCH
Overwatch was the only local team selected on Thursday, showcasing the youngest participant in the competition, 17-year old Josh Moody, a senior at Little Rock Catholic High School.

Moody’s idea marries video game play with physical outdoor activity such as laser tag, airsoft and paintball. Moody said it’s a $70.4 billion market, $19.1 billion of which is combat video games.

His team members include Joe Saumweber and Michael Paladino, software developers who live and work in Bentonville.

“We were introduced to Josh through his dad, David Moody, an active investor in the local entrepreneurial community. The idea was all Josh’s and he had done a fair amount of research on the market potential,” said Paladino, chief technology officer for Overwatch.

Moody said he and his partners sat around the kitchen table for few hours sketching out ideas on napkins and scraps of papers and decided to toss their business concept into the ring for the ARK Challenge.

“We have come such a long way in the past 14 weeks. We have partnered with Cybergun for the gun hardware rights and distribution, which will give us access to online stores and 9,000 store fronts where they do business, including Cabella’s and Wal-Mart,” Moody said.

The Overwatch team said this first round of funding is about one-quarter of the amount they need to further develop the mobile application for Android and ramp up the manufacturing for the hardware. They were encouraged by several other investor groups who also showed interest in their venture after Thursday’s presentation.

LANGHAR
Langhar is translated as “pure food”, according to Karanpreet Singh, co-founder for the Indian-based food solution company.

Singh was the only one of this three-man team presenting. Partners Pankaj Sharma, Pawan Saini and Sunil Kumar were cheering him on from their home base in Delhi, India.

Langhar is already up and running in Delhi generating roughly $2,000 per month in individual subscriptions and $10,000 each quarter for business subscriptions. The company provides web or mobile access to home cooked meals for pickup, delivery or dine-in experience in the chef’s home.

“There are fewer barriers in India, as it is legal to sell food that’s prepared in a home and there is a dense population of people of are accustomed to ordering prepared food,” SIngh said.

During his 14 weeks here in the U.S., Singh had the opportunity to meet with Tyson Foods and other food companies that do business in India.

Clint Lazenby mentored the Langhar team and said he was compelled to invest because he has seen firsthand the potential this company has inside India and possibly the U.S. Lazenby oversees international sales for ConAgra’s Lamb Wesson division and has worked in India.

INFO ASSEMBLY
Aditya Goel and Karthik Vaidyanath are seasoned professionals in their own right. Goel, of Orange County, Calif., most recently worked as a financial analyst for PIMCO. His partner crunched numbers and financial data for a large investment banking firm in India.

The financial duo said their company — Info Assembly— accelerates solid financial research, easing the cumberson data gathering process for relevant financial metrics which are then evaluated by analysts who make business and investment recommendations.

By using the Info Assembly software, Goel said investment houses, hedge funds and other financial investors can greatly reduce their research time. He said analyst productivity is raised to the point where less analysts are needed.

Info Assembly has worked locally with Greenwood Gearhart Inc. in Fayettevillle to gain insight into the features needed by smaller investment advisors.

Goel said there is a $1.9 billion U.S. market in which they can sell their solution, but they need to secure roughly $500,000 for marketing and manufacturing the software. He said the company has the ability to reach $1.2 million in revenue by the end of 2014.

WHAT”S NEXT
Dalton told the crowd that work has already begun for next year’s ARK Challenge. He said the results have been so successful in Northwest Arkansas, there will be two competitions next year, one locally and one in central Arkansas.

A number of last year’s contestants attended Thursday’s Demo Day celebration.

StackSearch, one of the three winners chosen last year, just secured $260,000 in additional funding and continues to expand their enterprise recently adding a partnership with Elasticsearch for big data applications.

B’tiques, also selected a winner in 2012, continues to work expanding their startup. Fayetteville-based B’tiques works with small clothing retailers to help them promote limited quantity retail through a free mobile application that is shared through the retailer’s social media pages.

“We launched the mobile app three weeks ago and have signed up 15 small retail stores in Northwest Arkansas, Fort Smith and the Little Rock area. The feedback has been great and consumers like having a shop-mobile option,” said Will Carter, co-founder of B’tiques.

He said consumers often buy fashion on impulse because they don’t know they want it until they see it. B’tiques, according to Carter, will promote the hottest fashion trends on social media for the retailer and then make the product accessible via the mobile application. The customer can purchase the product online and either have it delivered or pick it up at the store at a convenient time.

Carter said the mobile application is free and easy to use for the retailer and consumers.

“We are paid a percentage of the sales generated from the application,” Carter said.

These former competitors said it was fun to sit back and watch this year’s challengers knowing the difference a year can make with funding and equally important mentoring from industry leaders that continually support Arkansas’ entrepreneurial sector.

Representatives from NorthWest Arkansas Community College, the U.S. Department of Labor Occupational Safety and Health Administration and the Arkansas Department of Labor signed an agreement today (Sept. 5) continuing a safety and health alliance among the three organizations.

An agreement among the organizations was implemented previously in 2005, and since that time, the partnership has allowed thousands of individuals to attend training conferences hosted by the college to improve workplace safety and worker well-being.

David Hartman from the college’s environmental regulatory science faculty said the collaboration between the organizations had allowed an estimated 8,000 to 10,000 workers to attend low-cost or free training that meets the needs of the workforce in Northwest Arkansas and beyond. 


An advisory team made up of representatives from local employers helps to organize those conferences to address specific training needs of area businesses.
In a related initiative, a video library has been established at NWACC’s Pauline Whitaker Library, which allows individuals, including the public, to check out a wide array of DVDs related to workplace safety.

Ricky Belk, director of the Arkansas Department of Labor; Dr. Evelyn Jorgenson, president of NWACC; and Dr. Marvin Galloway, dean of the Division of Math and Sciences, signed the agreement.

Attorneys Mercy Fort Smith say a lawsuit from Fort Smith-based Cooper Clinic is to “vague and ambiguous” and will need a “more definite statement” before providing a response.

The attorneys with Fayetteville-based Kutak Rock also asked the court to dismiss the Cooper Clinic lawsuit filed Aug. 2.

In the 17-page complaint filed in Sebastian County Circuit Court, Cooper Clinic officials allege that Mercy and its parent company used their economic power to recruit 15 physicians away from Cooper and to the Mercy Clinic between Oct. 31, 2010 and Aug. 1, 2013. The Cooper lawsuit includes the St. Louis-based Sisters of Mercy of Health System as a defendant.

The physicians who left Cooper Clinic are (in order of departure): Ivelesse Dupree; Merle McClain; Tony Flippin; Douglas Buckley; John Smith; Garreth Carrick; Lane Wilson; David Hunton; Kurt Mehl; Donald Shows; Chris Coleman; Greg Pineau; Robert Nowlin; Jennifer Burks; and John Werner.

Cooper’s complaint also includes Drs. Burks, Nowlin, Shows and Werner as defendants.

Cooper’s lawsuit seeks compensatory and punitive damages under six counts: Breach of Contract; Tortious Interference; Violation of Arkansas Deceptive Trade Practices Act; Unjust Enrichment; Civil Conspiracy; and Breach of Contract-Compensation Reimbursement.

In a five-page response filed Wednesday (Sept. 4), the attorneys for Mercy said Arkansas law requires a plaintiff to

“Cooper’s claim for tortious interference, as pled, is vague and ambiguous, and until Cooper offers clarification regarding its allegations, the defendants cannot reasonably be required to frame a responsive pleading,” noted the Mercy response.

The motion to dismiss was also filed Thursday, with Mercy that it “generally and specifically denies all allegations in Cooper’s Complaint ...”

Physicians sued by Cooper also responded in responses filed Wednesday. The physicians – represented by Mark Moll, with Jones, Jackson & Moll, and Barry Neal – asked the court to dismiss the Cooper lawsuit and require Cooper to pay for legal fees.

The Fayetteville law office of Tulsa-based Conner & Winters law firm is representing Cooper Clinic.

Fort Smith-based First Bank Corp announced Thursday (Sept. 5) it will relinquish its charter for National Bank of Sallisaw and fold the bank operations into the First National Bank of Fort Smith.

No job gains or losses are expected with the move, and signage will not change for the National Bank of Sallisaw.

“We believe this merger will help us operate more efficiently, and allow us to better serve the needs of our customers. We will continue to operate in Roland and Sallisaw, Oklahoma, under the leadership of National Bank of Sallisaw President Michael Neer and direction of a local Advisory Board,” Sam T. Sicard, president and CEO of First Bank Corp, said in a statement.

First Bank Corp is a financial holding company with consolidated assets of $1.5 billion.  Subsidiaries of First Bank Corp also include Citizens Bank & Trust Co. (Van Buren, Arkansas), Brown-Hiller-Clark & Associates (Fort Smith, Arkansas), and Brown-Hiller-Clark & Associates of Oklahoma (Sallisaw, Oklahoma).

“Our affiliation with First Bank Corp. over the last 22 years has brought a tradition of excellence and community service to the Eastern Oklahoma banking market,” Michael Neer, president of the National Bank of Sallisaw, said in the statement. “This merger will allow us to focus all of our time to serving our customers and community. Our Board of Directors, employees, and daily operations will remain the same, with our focus on continuing to provide the best service possible to our customers. The commitment to strengthening our community will continue.”

The First National Bank of Fort Smith has 17 Branches located in Sebastian, Franklin, and Benton Counties in Arkansas with $1.052 billion in assets as of June 30, 2013.  The National Bank of Sallisaw has three banking locations in Sequoyah County, Okla., with $111 million in assets as of June 30, 2013. 

Changing the charter status is subject to regulator approval, and bank officials said the deal should finalize during the first quarter of 2014. At that time, National Bank of Sallisaw will be renamed National Bank of Sallisaw, A Division of The First National Bank of Fort Smith.

America's Car-Mart Inc. announced the opening of its 128th dealership on Friday (Sept. 6).

The dealership is located in Meridian, Miss., and it’s the company’s fifth car lot  in Mississippi and the fourth new store opening for fiscal year 2014. 

Car-Mart is on track to expand its dealership base by 10% this year as it gains some density throughout the southeastern U.S.

Shares of Car-Mart were trading at $41.48 on Friday morning (Sept. 5). The stock was up 35% from the previous days close. In the past 52 weeks the share price has ranged from $35.89 to $50.59.
 

Banking consultants said Arvest and Simmons First National Bank have plenty to gain if they were to walk away with 100% ownership of Metropolitan National Bank next week when the bidding process concludes on Monday (Sept.9).

At least three potential suitors have lined up to bid on Metropolitan National Bank despite its lack of capital and lackluster financial records for the past several years. Earlier this week Simmons First National and Arvest Bank disclosed they had entered the bidding process, which was initiated by Ford Financial last month. Dallas-based Ford proposed a $74.2 million capital injection for the bank and $16 million paid in cash to the holding company creditors in the bankruptcy case of Rogers Bancshares.

Simmons First National and Arvest Bank have made no secret of their desires to expand their marketshare inside and outside of the Natural State. On the flip side Ford Financial was the stalking horse bidder and has a proven track record of buying distressed banks and turning them into profitable ventures for resale. Industry analysts also agreed the time is ripe for acquisition with cheap money and low, but rising bank stock valuations.

Simmons submitted a qualifying bid of $16.9 million, topping the $16 million offered by Ford. 


“Metropolitan has a rich history of providing exemplary customer service to the communities in which it is located,” Simmons noted in a recent filing with the Securities and Exchange Commission.

Bank officials said it will “combine its operations of Metropolitan and continue to provide the highest quality customer service throughout the combined service area, should they prevail with the highest bid.


Likewise, Arvest said it made the decision to participate in the process due to Metropolitan National Bank’s history as an Arkansas based financial institution, established customer base and branch footprint. 


“We have the utmost respect for Metropolitan National Bank and its associates and feel this could be a very positive addition to Arvest Bank, if we are the successful bidder,” said Jason Kincy, spokesman for Arvest Bank.


Both banks said they intend to merge Metropolitan’s operations with their own as each of them do business in Northwest and Central Arkansas.
 Ford, on the other hand, would be an outsider making their way into both markets, which are already highly competitive.

BIDDING PROCESS

All three suitors will convene on Monday (Sept 9) and the bidding process will resemble that of a Barrett-Jackson car auction as seen on television, according to Garland Binns, attorney with Dover Dixon Horne in Little Rock.
 Binns said the $16 million bid by Ford and $16.9 million offer from Simmons is money that will go to satisfy the creditors listed in the holding company bankruptcy.


“These bidders will each have the opportunity to raise their offers, one at a time, until one of them eventually outbids the other two,” Binns said. 


The highest bidder will talk away with 100% ownership of Metropolitan National Bank and need to recapitalize that institution to satisfy banking regulators, he said.


Ford Financial officials plan to inject $74.2 million into the bank if they are allowed to buy it.

Arvest and Simmons would also need to ante-up capital equity if they are the winning bid. But, rough estimates indicate it would be far less than the $74.2 million mentioned by Ford.


Metropolitan is ordered to maintain a tier-one leverage ratio of 8%, and as of June 30, the bank posted a ratio of 6.46%. Rough calculations indicate a shortfall of just under $15 million is needed for Metropolitan to hit the 8% requirement.


If Simmons walks away with Metropolitan National Bank, the combined institutions would have roughly $3.062 billion in assets, with combined equity capital of $253.853 million. The tier-one ratio of these combined banks would be roughly 8.29% and meets with federal guidelines.


If Arvest wins the bid, the combined banks would have assets of $14.87 billion, against capital equity of $1.56 billion, resulting in a combined ratio of 10.4%.


Binns said this is an inexpensive way for Arvest and Simmons to expand their marketshare in central Arkansas.


MARKETSHARE DATA

Metropolitan National has roughly 5.8% of the deposit marketshare in central Arkansas,  behind 6.13% garnered by Arvest and Bank of the Ozarks. All of these trail the 10% share attributed to Centennial Bank and 14.2% to Regions Bank and 16.88% to Bank of America.


If Arvest were to gain control of Metropolitan it would boost deposit marketshare to nearly 12%, elevating Arvest above Centennial and Bank of Ozarks which are local brands to the Little Rock metropolitan area. If Simmons wins the bid, it would grow its marketshare from 1.53% to 7.35%, overtaking Arvest and Bank of Ozarks.


The gain in Northwest Arkansas is far less appealing, though it would take one competitor out of the marketplace, said Phillip Knight an independent banking consultant in Rogers.


Another interesting dynamic in Northwest Arkansas is the concentration of marketshare if Arvest merges with Metropolitan.


Tim Yeager, Arkansas Bankers Chair at the University of Arkansas, said federal regulators use the Herfindal Index as a guide against excessive market concentration by any one bank.


Arvest already controls 51% of the deposit marketshare in Northwest Arkansas, while Simmons has 2.27%, according to most recent numbers provided by the Federal Deposit of Insurance Corp.


The Herfindal Index for weighted deposits between a proposed merger of Arvest and Metropolitan in Northwest had a reading of 2926, a change of 89 from the pre-merger scenario.
 While the reading is high enough to draw a red flag, a report from the Federal Reserve of Kansas City notes that market concentration readings above 1800, with a change less than 200, are unlikely to face anti-trust challenges from the Department of Justice.


Yeager said regulators have been fairly lenient in past years in permitting and facilitating more mergers and acquisitions.


M&A CLIMATE

Binns agreed the climate is ripe for mergers and acquisition and expects to see more in the future on heels of several already announced.


Liberty Bank is merging with Home Bancshares, a marriage viewed as a win-win for both banks seeking brand recognition and larger footprints across the state.


First Federal Bank of Harrison last month acquired First National Security Co., the holding company for First National Bank of Hot Springs and Heritage Bank in Jonesboro. That deal was valued at roughly $124 million, $74 million of that was cash.

John Dominick, banking professor at the UA and a banking consultant, said banks are more eager to expand their footprints at this time, partly because money is cheap and bank values are still somewhat depressed.

“I am glad to see Arvest and Simmons bidding for Metropolitan National. They each have something to gain should they win the bid. Neither bank is inclined to overpay for the assets and they each have experience in both central and Northwest Arkansas,” Dominick said.

U.S. Bankruptcy Judge James Mixon will conclude the bidding on Monday (Sept. 9) and award the bank in a hearing on Sept. 12, following an auction process.

The winning bidder for ownership of Metropolitan National Bank — either Ford Financial Fund II, Arvest or Simmons First National Bank — will pick up millions in real estate for pennies on the dollar.

Metropolitan National Bank will soon be awarded to the highest bidder as its parent company Rogers Bancshares’ bankruptcy proceedings wind down. The three bidders are dueling today (Sept. 9) in a Little Rock hotel room for the right to acquire 100% of Metropolitan National Bank.

While the Little Rock-based lender has failed to garner substantial deposits in Northwest Arkansas it has accumulated a vast amount of real estate in one of the fastest growing regions in the country. Metropolitan’s bank buildings in Benton and Washington counties are valued in excess of $22.6 million, according tax records.

The last known bid for the $1 billion bank was $16.9 million, plus any break-up fee charged and additional capital to shore up the bank’s balance sheet.

If Arvest or Simmons walks away with the bank, there may be no need to keep Metropolitan’s 12 bank buildings scattered across Northwest Arkansas, as these two banks already have their own local infrastructure. (See the link for amapof the locations.)

Metropolitan resides in some high profile places across the this region with branches located in heavy traffic areas such as Pinnacle Hills, Walton Boulevard, Pleasant Crossing, Mission and Crossover in Fayetteville and Northwest Arkansas Mall areas. The location of Metropolitan’s Benton County headquarters is 3701 Pinnacle Hills Parkway, a stone’s throw from the Embassy Suites Hotel and Hunt Towers. This property is valued at $5.74 million in the county records, but real estate experts agree its worth more given the ongoing development and expansion in that immediate area.

Other branches across the region like the two on Walton Boulevard in Bentonville or in Har-Ber Meadows in Springdale or Martin Luther King Boulevard in Fayetteville could be prime pickings for CVS Pharmacy, Casey’s General Stores, Walgreens or Kum & Go who continue expand their footprints in this region.

Gaines Dittrich, of Dittrich & Associates bank consulting group, said he remembers when the prominent corners now occupied by banks like Metropolitan National were gas stations.

“In this era of mobile banking, the need for lots of physical branches is shrinking. Larger national banks continue to sell off branches because underperforming branches can be a drag on profitability,” Dittrich said.

Other banking consultants describe three possibilities for the 12 Metropolitan Bank locations in Northwest Arkansas depending on the outcome of Monday’s auction. They said Ford Financial has a track record for buying distressed banks, infusing capital and streamlining operations and then reselling that investment for a profit. In that case, Metropolitan’s local branches fail to meet the industry benchmarks for profitability because there are not enough local deposits to justify the overhead. Analysts expect Ford will need to take additional write downs on these underperforming branches, which are likely more valuable as a real estate asset than a bank branch.

Arvest and Simmons already have a substantial branch presence in Northwest Arkansas and would likely close the local Metropolitan locations after merging that bank into their own operations.

OTHER REAL ESTATE
Aside from the 12 bank branches, Metropolitan also owns 87 parcels of real estate in Benton County and 137 parcels in Washington County, according to the counties’ websites.

While much of that land involves residential lots, there are also seven executive condos in the Legacy Building in downtown Fayetteville and eight other condos at Greer Plaza on North College Avenue in Fayetteville. The condo listings in the Legacy Building are priced between $453,000 and $356,000, according to the Multiple Listing Service.

Real estate agents agree the condo market has improved in recent months as financing  has become more readily available amid flush financial markets and low interest rates. But they said there is still an excess supply in downtown Fayetteville with more than 50 listings among several properties in an eight-block radius.

It’s important to note that the property Metropolitan National owns as other real estate has likely already been marked down for several years at the bank’s expense, said Tim Yeager, Arkansas Bankers Chair at the University of Arkansas. The bank that acquires Metropolitan will have the benefit of those past write downs and rising real estate prices of today, he said.

Other property owned by Metropolitan includes:
• 10 acres in the Ruskin Heights subdivision, Fayetteville;
• 10 lots in Rupple Row subdivision, Fayetteville;
• 9 lots in Timber Trails, Fayetteville;
• 50 lots and three homes in Woodbury subdivision, Fayetteville;
• 160 acres near the Grand Valley Ridge area in East Springdale;
• 16 lots in Jacobs Court, Springdale;
• 153 acres in Greenland;
• 2 industrial buildings in Springdale; and
• 20 acres along Airport Road in Bentonville.

Charles Stewart is eager to begin his new role as the chief of Sparks Health System in Fort Smith and Summit Medical Center in Van Buren and hopes to bring stability to a post that has seen three changes within 10 months.

Officials with Naples, Fla.-based Health Management Associates (HMA) have selected Stewart to be the new Arkansas Market CEO following the surprise departure in late May of Gary Blan. Stewart’s first day on the job is scheduled for Sept. 30.

Stewart joins Sparks from Poplar Bluff, Mo., where he served as the Missouri Market CEO for HMA hospitals Poplar Bluff Regional Medical Center and Twin Rivers Medical Center since February 2012. Stewart has worked 30 years in hospital management at hospital systems in Alabama, Mississippi, North Carolina and Tennessee.

Sparks Health System includes Sparks Regional Medical Center, Sparks Clinic, Sparks PremierCare, Sparks Home Health and the Marvin Altman Fitness Center in Fort Smith, Arkansas. Summit Medical Center is a fully accredited, 103-bed acute care hospital in Van Buren.

Blan was hired by HMA as the Arkansas Market CEO on March 19. According to HMA, Blan stepped in late May, with the announcement made public on May 23. Blan was picked to succeed Melody Trimble who was promoted to president of the HMAs Southern and Western Group, which includes 26 hospitals in seven states. Trimble’s promotion was effective Jan. 1, 2013. The seven-state region is Alabama, Arkansas, Mississippi, Missouri, Oklahoma, Texas and Washington.

Stewart said Monday that leadership stability will be a goal, adding that Trimble was in the job for more than three years and he also seeks longevity in the post.

“Prior to that (Blan’s departure), Melody was here for a number of years. ... I plan to be here for a number of years. Most of the places I’ve been, I was there for several years,” Stewart said.

Stewart was hired in Poplar Bluff in February 2012, and oversaw the completion of a $173 million new HMA facility. The city has a population of a little more than 17,000, is located in southeast Missouri about 80 miles north of Jonesboro, Ark., and has a trade area of about 161,000 and is in a county (Butler County) with about 43,000 residents.

Prior to Poplar Bluff, Stewart was a hospital administrator in the Chattanooga, Tenn., area for six years and in Tuscaloosa, Ala., more than nine years.

The Poplar Bluff job also saw Stewart managing two hospital operations and several physician offices that are similar to what he will oversee in the larger Fort Smith market. The Poplar Bluff hospital had 423 licensed beds, fewer than the about 490 at Sparks. An HMA hospital in Kennett, Mo., – Twin Rivers Medical Center – had 116 beds, similar to the 103 beds licensed to Summit Medical in Van Buren.

“This was a great promotion and my wife and I are very excited about the prospects of coming to Fort Smith,” Stewart told The City Wire. “Many people we’ve talked to about our move have said talked about how great the area is. ... Fort smith has a great reputation outside the area.”

Stewart is a native of Alabama. He earned a bachelor’s degree in education & psychology from Jacksonville State University and a master’s degree in education & counseling and a master’s degree in hospital & health administration from the University of Alabama at Birmingham.

“Charles Stewart has won many awards for his service, not only to groups like Masons and Rotary Club, but also to the American College of Healthcare Executives and several Chambers of Commerce. He will be a benefit to our community,” noted Hugh Maurras, president of Sparks Health System’s Board of Trustees, in a statement from Sparks.

Angie Marchi, HMA Atlantic Division CEO, said in a statement that Stewart “is the right person to lead Sparks Health System and Summit Medical Center into the future.”

Poultry companies like Tyson, Simmons and O.K. Foods should benefit from the U.S. government’s stepped up purchases of dark meat chicken that is now sitting in cold storage.

The U.S. Department of Agriculture reported as of June 30 there were 138.7 million pounds of chicken leg quarters sitting in cold storage and the surplus was putting downward pressure on chicken prices for the poultry industry.

The USDA announced last week it would purchase frozen drumsticks and leg quarters to help ease the surplus. The dollar amount was not disclosed.

 “While the over-supply of dark meat is a burden to producers / processors, it is, at the same time, an excellent opportunity to provide high-quality, wholesome protein to recipients who may not be economically able to benefit from this product,” said Mike Brown, president of the National Chicken Council.

He said a timely purchase program will prove to be a worthwhile measure to help balance the white meat/dark meat situation for the chicken market

USDA officials.said the solicitation will be issued for deliveries from Nov. 1, 2013, through Feb. 28, 2014.

Shares of Tyson Foods Inc. rose 1% on Monday (Sept. 9) trading at $29.81 in the afternoon session. 

It was only a month ago that Kyle and Alisha Quenga were surprised with a home makeover from the Electric Cooperatives of Arkansas.

Since the announcement of up to a $50,000 home makeover on Aug. 8, the Quenga family has had quite a bit of work done to their home just south of Fort Smith.

Among the most noticeable upgrades when first entering their home is the addition of new windows from Weather Barr Windows of Fort Smith. According to Greg Davis of the Arkansas Valley Electric Cooperative, the windows have technology that allows light in without a lot of heat, which could be a big help during the early September heat.

"There are double panes and in between those panes is a gas that will keep it from transferring into the house. It makes a huge difference," he said. "And of course, these windows were put in extremely tight and you can even see just tons of caulk. And that's something that really everyone should do. If somebody hasn't caulked around their windows lately, they need to. Period."

Prior to installation of the new windows, the Quenga family had aluminum pane windows, which Davis explained were great conductors of hot and cold, "they'll pull that cold air or hot air to it, and then it of course is convecting back into the house," which will result in extremely high indoor temperatures during the summer months.

The old windows were also not caulked as well as the new windows, which allowed for much of the energy in the home to escape with little effort. Davis said prior to the home makeover, as much as 70% of the home's energy was escaping.

And it was not only through the windows. It was also escaping through the back door, an area Davis said many people are not aware of as a potential escape route for energy.

As he explained it, doors are often installed and molding is put up around it, disguising gaps between the doorframe and the house sometimes large enough to see daylight, as was the case with the Quenga's home. Proper installation and sealing will prevent the energy escape, thereby saving more money.

Another way to keep the house cool, Davis said, is properly insulating the attic. In the Quenga home, temperature readings in the attic were running well over 110 degrees. But sprayed foam insulation has brought the temperature to a tolerable level, only five to 10 degrees above the temperature in the main part of the house.

In order for the house to continue having lower heating and cooling costs following the makeover, Residential Energy Marketing Manager Bret Curry said spray foam insulation similar to what is now in the attic would be applied to the home's crawl space, making sure that cold or hot air does not escape from below the home.

"We've all heard that hot air rises, and it does, that's why hot air balloons work. But heat moves to cool on planet Earth. It has forever and ever. It's thermodynamics. And in a house, on a cold winter's day when the wife complains that her feet are cold, that's because the heat is moving through the floor mainly because there's no insulation under here and then to the cold, open-vented crawl space."

In addition to insulating the crawl space, Curry said the home would also have the vents to the crawl space closed to keep air from escaping. Once complete, the crawl space should see temperatures similar to the attic, with only slight differences between the indoor temperature, he said.

Davis said home improvement work was not the only additions to the Quenga household, pointing out new energy efficient appliances provided by General Electric. Since the new GE refrigerator was larger than the opening in the kitchen, the home makeover crew did cut out additional space from already-existing cabinets. The crew also re-painted the cabinets to make them look new.

The family also has a new sidewalk, thanks to the home makeover crew. Davis said all of the improvements, including the re-painted cabinets and the sidewalk, were meant to "leave the home in better condition" than when the work crews arrived.

Still to be completed is the installation a new geothermal heat pump, a new energy-efficient water heater and the crawl space insulation.

But even with some projects not yet complete, the home still feels cooler and more comfortable, which Davis said could cut their home utility bill by up to half.

It’s a good time to be a Realtor. Home sales in Arkansas’ four largest markets during the first seven months of 2013 were up more than 11%, and were pushed higher by a more than 20% gain in July sales, according to The City Wire’s Arkansas Home Sales Report.

The City Wire’s Arkansas Home Sales Report captures home sales data in the state’s 14 most populated counties within the state’s four largest metro areas — Central Arkansas, Fort Smith area, Jonesboro/Northeast Arkansas and Northwest Arkansas. The report, which records closed sales, accounts for between 70% and 75% of total Arkansas home sales. This report counts the number of sales closed between January and July.

In the four markets, the number of homes sold totaled 11,759, up 11.59% compared to the first seven months of 2012. The value of homes sold in the four markets between January and July totaled $1.93 billion, up 13.68% compared to the same period in 2012. The number of sales and total value of sales were up 13.42% and 25.71%, respectively, compared to the same period in 2011.

For the first seven months of 2013, the number of homes sold in central Arkansas are up 9.92%, up 12.99% in the Jonesboro area and up 15.76% in Northwest Arkansas, and up 3.13% in the Fort Smith area.

The average sales price of a home sold in the four markets during the first seven months of 2013 was $164,146, up 1.87% compared to the 2012 period, and up 10.84% compared to the 2011 period.

For the first seven months of the year, Pulaski County had a narrow hold on the top Arkansas county for home sales. The county, with a population of around 390,000, had 2,596 home sales between January and July. Benton County, with a population of around 230,000, posted 2,589 home sales in the same seven month period.

JULY ACTIVITY
Home sales activity was up in all four markets during July. There were 944 homes sold in central Arkansas, up 20.56% compared to July 2012, and up 13.33% compared to July 2011.

July home sales totaled 695 in Northwest Arkansas, up 16.22% compared to July 2012, and up 15.45% compared to July 2011.

Jonesboro area home sales totaled 194, up 22.01% compared to July 2012 and up 13.45% compared to July 2011.

In the Fort Smith area, home sales totaled 171, up 39.02% compared to July 2012, and up 19.58% compared to July 2011.

The value of the sales during July were up 19.87% in central Arkansas, up 24.67% in Northwest Arkansas, up 15.05% in the Jonesboro area, and up 38.04% in the Fort Smith region.

THE REGIONAL PICTURE
Central Arkansas — Home sales
Jan.-July 2013: 5,573
Jan.-July 2012: 5,070
Jan.-July 2011: 4,873

Fort Smith area — Home sales
Jan.-July 2013: 955
Jan.-July 2012: 926
Jan.-July 2011: 986

Jonesboro area — Home sales
Jan.-July 2013: 1,096
Jan.-July 2012: 970
Jan.-July 2011: 1,030

Northwest Arkansas — Home sales
Jan.-July 2013: 4,135
Jan.-July 2012: 3,572
Jan.-July 2011: 3,479

The top five counties in terms of Jan.-July 2013 home sales:
Pulaski — 2,596, up compared to 2,471 in 2012
Benton — 2,589, up compared to 2,206 in 2012
Washington — 1,546, up compared to 1,366 in 2012
Saline — 870, up compared to 774 in 2012
Craighead — 865, up compared to 743 in 2012

Link here for a PDF document of the July 2013 data.

THE INTEREST RATE FACTOR
Economist Kathy Deck, director for the Center of Business and Economic Research at the University of Arkansas, said increasing sales and relatively flat growth in prices are “indicative of the type of market we would expect right now.”

Deck said rising interest rates have a lot to do with the home sales activity. According to Mortgage-X.com, the average rate on a 30-year, fixed interest mortgage at the beginning of 2013 was 3.35%. By the end of July, average rates increased to 4.31% and continued to rise, averaging 4.57% in the first week of September.

Deck said there was pent up demand among perspective buyers who were waiting for the “right time” to purchase a home while rates were low. When mortgage rates began to climb, that caused some buyers to purchase homes before they rose further.

She said rising interest rates also cut into the buying power of purchasers. Higher interest rates translate into higher monthly mortgage payments and decreased buying power of consumers. Deck said interest rates are still at historically low levels and expects to see markets continue to improve as buyers jump into the housing market before mortgage rates hit more typical levels.

SUPPLY AND DEMAND BALANCE
The City Wire Economist Jeff Collins agreed that rising interest rates have motivated some consumers to purchase homes, adding other factors have contributed to improving sales.

Collins also said buyers were unsure about what housing prices should be and were more concerned about the economic climate than they are now. He said improving consumer confidence has boosted markets in Arkansas and around the nation.

Collins also expects sales to improve, adding there are some concerns about the supply of homes. Demand for homes has picked up over the past couple of years, but building activity has remained comparatively stagnant. While most markets haven’t hit the point where there’s more demand for homes than the supply of them, that issue could come to light if trends continue.

Metropolitan National Bank will soon be acquired by Simmons First National, as the Pine Bluff-based financial institution was the last bidder standing during Monday’s (Sept. 9) court-sanctioned auction held in Little Rock.



Simmons noted in a press release that the deal is subject to the approval of the U.S. Bankruptcy Court hearing scheduled for Thursday (Sept. 12).



Metropolitan had assets of $1.006 billion and equity capital of $65.7 million as of June 30. Simmons First National is a $3.6 billion financial holding company with 91 offices in 54 communities, in Arkansas, Kansas and Missouri.



“It’s a great acquisition for Simmons, a feather in their cap and one that surely add to the franchise value,” said Garland Binns, attorney with Dover Dixon Horne, specializing in mergers and capital fund raising.



Metropolitan is well-known brand in the Little Rock and Northwest Arkansas markets touting itself as “Nearby and Neighborly," but Simmons will undoubtedly merge those assets into its own growing footprint.



The Little Rock bank has operated with a capital shortfall for several years and remains under enforcement actions with the Office of the Comptroller of the Currency and the Federal Reserve Bank. Simmons, once approved by the court as the winning bid, will be asked to get the bank’s capital ratios back in compliance.

 Metropolitan is ordered to maintain a tier-one leverage ratio of 8%, and as of June 30, the bank posted a ratio of 6.46%. Rough calculations indicate a shortfall of just under $15 million is needed for Metropolitan to hit the 8% requirement.

When Simmons combines assets with Metropolitan National Bank, the institutions would have roughly $3.819 billion in earning assets, with combined equity capital of $253.853 million. The tier-one ratio of these combined banks would be roughly 8.29% and meets with federal guidelines.

"Simmons is a well-run bank and this is a great use of its capital surplus. It will open up Little Rock to them and also give them some more diversification away from agricultural loans which they have in many of their other markets," said Dr. John Dominick, industry consultant and banking professor at the University of Arkansas.

"Metropolitan has a rich history of providing exemplary customer service to the communities in which it is located,” Simmons noted in a recent filing with the federal Securities and Exchange Commission.

Bank officials said it will “combine its operations of Metropolitan and continue to provide the highest quality customer service throughout the combined service area," should they prevail with the highest bid.

In the Little Rock market Simmons can grow its marketshare from 1.53% to 7.35%, overtaking Arvest and Bank of Ozarks with the acquisition of Metropolitan National Bank.

The gain in Northwest Arkansas is far less appealing in deposits but it holds potential opportunity in real estate profits.

Gary Head, CEO of Signature Bank in Fayetteville, said he favored a Simmons or Arvest deal because it does take one competitor out the already crowed market.



Simmons last year won a bid to acquire Excel Bank in Sedalia, Mo., in an FDIC-assisted deal. It also made two FDIC-assisted acquisitions in 2010, one in Springfield, Mo., and one in Olathe, Kan.