Lingering winter snow and icy roads cooled off the Northwest Arkansas housing market in March with sales volume down 5.3% from the same 2013 period.

MountData.com reports total March home sales of $104 million, compared to $109 million in the same month last year. Agents sold 576 homes last month in the two-county area. Units sales were down 6.7% from the year-ago period.

Benton County, the strong leader for the past two years, began a caution lap last month reporting 350 home sales, down 17.2% from March 2013. In Washington County, agents fared better posting 16% more home sales (226) in March. (March home sales represent properties that likely went under contract in mid-January, creating a 30- to 45-day lag to closing.)

Jim Long, an agent with Crye-Leike Real Estate in Bentonville, said he didn’t close any properties in March, but he did put two listings under contract and he had several closings in the prior two months.

“There is ample buyer demand. When the sun comes out consumers are eager to look and purchase. But these off-and-on winter storms have kept things a little off balance lately.” Long said. “On the whole, I’m off to a better start than last year.”

Agents agree the metrics in the local market are good for buyer and sellers right now. Interest rates are quite low around 4.19% APR.

Long said home prices are continuing to rebound, though not as fast as many sellers would like. He just put a home under contract in West Fayetteville for a couple that had looked at more than 20 properties. They one they bought was on the market just two days and it sold for nearly full asking pricing, Long added.

Vicki Briolat, a broker with Crye-Leike in Bentonville, said she had three offers for the same house that came within just a few days of listing. The seller is relocating to Wisconsin and had to push the closing back to May 1 because he hasn't been able to house hunt for himself given weather and short time restraints. She is also working with a couple she represented nine years ago with their first home purchase in Elkins.

"Their house sold really quickly and they are under contract for a bigger home home in Fayetteville. There are plenty of buyers, but not enough listings," Briolat said.

Nicky Dou, a broker with Keller Williams in Benton County, said her team closed 11 deals in March, and wrote 14 more contracts. She said her March numbers were virtually the same year-over-year. But comparing the full quarter, Dou said 2014 is much better.

FIRST QUARTER RESULTS
“Our January and February were so great this year that I have already done half the volume (pending and closing) of what I did in all of 2013.” Dou said. “Overall, 2014 is looking much better than 2013 for my business.”

Dou’s results are not indicative of the entire local market. Paul Bynum with MountData.com said the accumulated market report for the first three months of 2014, shows a total volume of $250 million, up 1% from a year ago. Agents sold 1,423 homes in the quarter, that was 35 less than sold in the same quarter last year.
The median sales price was $141,000 or $83 per square foot, rising between 1% and 2%, respectively, from a the prior year.

Bynum said it took 67 days on average for sellers to obtain a contract in the first quarter, and there were 7.2 months of worth of inventory on the market at the end of the March. He said the market is slightly tilted toward the buyers’ favor as a balanced market is typically 5-to 6-months of inventory.

Bynum reports new construction inventory is at 5.9 months up from last year’s 4.5-month reading. New construction has increased from 273 units last March to 393 in 2014. He said the existing inventory at 2,939 is down just a bit from last March’s 2,953.

HOME SALES
Benton County
2014: $157.41 million
2013: $159.38 million
2012: $131.53 million

Washington County
2014: $93.07 million
2013: $89.25 million
2012: $71.62 million

MEDIAN SALES PRICES
Benton County
2014: $140,000
2013: $142,500
2012: $135,000

Washington County
2014: $145,350
2013: $139,000
2012: $129,250

Source: MountData.com

Walmart to Go may have just opened its first location in Bentonville March 16, but industry insiders who spoke with The City Wire said what could become another competitor will not cause them to start making changes to the way they do business, at least not yet.

Brandon Richmond, owner of four Family Stops convenience stores in Fort Smith and Van Buren, said the market has already adjusted to other convenience store retailers who got into the convenience store game far sooner than Wal-Mart.

"As it sits, this isn't Wal-Mart's first foray into the convenience store. Now we're assuming they'll come in and blitz the market, but Wal-Mart doesn't concern me as much as Casey's (General Store), Kum and Go and Quick Trips, because they've been doing it a lot longer than Wal-Mart,” he said.

According to Richmond, while Wal-Mart may come in and be very similar to some of the larger competitors he mentioned, customers are primarily looking for customer service and the best price on specific items, such as tobacco.

"For the convenience store customer, price is very (important). When it comes down to cigarettes, that's where we get 70% of our top line revenue. Wal-Mart won't be able to beat us because of state minimums."

Even with the larger outfits that are already buying up land and building convenience stores at breakneck speed, Richmond said often the larger chains are purchasing from the same convenience suppliers as the little guys, meaning prices are nearly identical or even slightly higher.

TECHNOLOGY SUPPORT
Nick Glidewell, director of sales and information technology at Fort Smith-based Glidewell Distributing, said distributors like his are what keeps the playing field level for many of the convenience stores in business today and it is because of the changes that have already been taking place in the market.

"This could be a game changer,” Glidewell said of the Walmart to Go model. “But honestly our industry is changing so fast and the consolidation is just mind-blowing. But we've already been dealing with this for probably about 10 years now."

He said Glidewell Distributors has figured out that technology and smooth operations are what will help small operators compete with the big guys. To drive home the point of how technology is helping his company keep the playing field level for all of his clients while competing with other distributors at the same time, Glidewell pointed to a $740,000 piece of technology his company invested in following the acquisition of its chief rival some 10 years ago.

"One thing that comes to mind is when we went from 60 to 94 (employees following the acquisition of Southern Wholesale), we had people on top of people and mistakes were awful. We bought a computer module for $740,000 and it was just an add on for an existing module that we had. We had a consultant come in and run the numbers. ... That thing paid for itself, I think, in 10 months. It's automating the whole process for the orders coming in and going out for the stores. If we can automate without sacrificing quality or price, then we're doing that and have done so for about 10 years."

SIZE DOES MATTER
While technology has allowed Glidewell and its customers to stay competitive, Richmond said there are other things that simply can't be matched with a large corporation, such as Casey's General Store, with more than 1,800 locations nationwide. Among the benefits of having such a large footprint of stores is the ability to transport much of the company's own product using internal infrastructure, versus paying a shipper. He said companies like Casey's are also able to hedge on fuel, meaning they can often times acquire the same fuel that a competitor sells down the street at a cheaper wholesale price.

"Casey's has the ability to buy on the mass scale with fuel. They buy fuel credits and exercise those to get gas cheaper than I can buy it," Richmond said. "They pay themselves to haul it, where I pay a hauler. So they make 4 or 5 cents more per gallon. They make 5 cents a pop more than I am, even though we sell the same product."

What would be a game changer, he said, would be for Wal-Mart to take a similar approach and start transporting its own fuel, should the company expand to a large number of convenience stores.

Even so, the cost savings are not always there for large retailers like Wal-Mart, said Steve Ferren, executive vice president of the Arkansas Oil Marketers Association, a group that includes Kum and Go, as well as El Dorado-based Murphy Oil.

"It's not whether I pull my own product or not, it's my cost of delivery," he said. "If I can find someone to deliver it from a terminal to store cheaper than I can do it myself, it's about the cost of delivery."

He said groups, including Murphy, have been known to continue hiring a hauler even though they may have their own freight line.

"But if you watch, you'll see all sorts of common carriers pulling into Murphy Stores. One reason it is such large volume to do it yourself."

THE LOCATION SHIFT
While the cost of shipping fuel to the convenience stores may again even the playing field, convenience store owners are starting to think about what to do should Wal-Mart start encroaching on their market.

"If they open across the street, we won't go into a market that Wal-Mart is getting ready to flood," Richmond said.

Ferren said when it comes down to it, no matter how confident some convenience store retailers may be, or what kind of prices wholesalers can offer, competition like what could be coming is never welcome.

"No one wants to go head-to-head with Wal-Mart."

He said what is going to happen will be what Richmond alluded to, which is stores not going in across the street from a Wal-Mart.

But another strategy he said could be seen is that large, urban and suburban areas keep the chain stores, with independent retailers going elsewhere. It's a change he said is already underway.

"The players may be new, but the process has been going on forever," he said. "I don't know that the number of (convenience stores) has changed, although the target market could have changed. If I know I have to compete with a Kum and Go in a larger town, maybe I'll go to a smaller town. ... So maybe it makes people choose locations differently."

As for anyone who may be looking for cheaper prices from Walmart to Go or any of the other large convenience store retailers, Richmond said consumers should not expect major discounts.

"Most single store owners are cheaper than Kum and Go and Casey's. They operate at a lot higher dollar and margin, but we buy from the same places they do. But they ... have the $3 million to build a store."

While manufacturing may be a sore subject for many in the Fort Smith region, one economic bright spot that continues to shine is the medical sector. The recent years of growth that seems to be happening at rapid speed is a response to the market having been ill-prepared for the needs of the Fort Smith region many years ago, according to several local healthcare administrators.

According to Mercy Fort Smith President Ryan Gehrig, the growth of the last several years are the medical sector's attempt to reverse "the trend that had been the last 10 to 15 years before that."

Kyle Parker, president and CEO of the planned Arkansas College of Osteopathic Medicine, said Fort Smith used to be the go-to city for medical care in the region, though that has changed drastically.

"We are now the most medically underserved part of Arkansas. We rank 48th in the United States. There's no question that there is a huge amount of need in this area. You only have to go back to the 1970s when this part of Arkansas was called a 'Medical Mecca.'"

Dr. Cole Goodman, president of Mercy Clinic of Fort Smith, said the current slump in health care largely dates to the mid-1990s to the mid-2000s due to what he called an out-migration of physicians.

"We had difficulty recruiting new physicians," he said. "At the same time, our population grew."

With the Fort Smith region now, according to Parker, the most medically underserved part of Arkansas, local healthcare providers have been pouring millions upon millions of dollars into expansion of their hospitals, clinics and staff rosters. But with a shortage of doctors nationwide, it has been a challenge to meet the demand of a local population that includes eight counties in Arkansas, five counties in Oklahoma and a total regional population approaching 450,000.

In Arkansas, Parker said the average physician has a total of 3,600 patients.

Goodman said the large number of patients each doctor sees has put a strain on the system, with Mercy hiring doctors as quickly as it can, though seemingly unable to catch up due to the doctor shortage. And the story is the same at all of the area's hospitals and clinics.

At Sparks Hospital, Market Director of Marketing and Communications Donna Bragg said the hospital has recruited a total of seven new physicians in just the last year and has invested more than $44 million in capital into facilities since December 2009.

"As with the trend nationwide, there is a need for more doctors to treat our aging population and replace physicians who retire," she said. "At the same time, more individuals are gaining access to insurance coverage through (insurance) exchanges, and we expect patients will seek care from a number of sources — physicians, preventive healthcare and hospital services."

Gehrig said Mercy has brought on an additional "30 new providers to the community in the last 18 months," in addition to tens of millions of dollars spent on construction of new clinics, as well as the new Mercy Orthopedic Hospital along Phoenix Avenue. With each new physician brought on, Gehrig said about four staffers are hired, as well. Parker said that figure typically includes two nurses, as well as two office staffers to handle insurance claims and other necessary administrative assistance.

As the hospitals grow to meet the needs of the community, the growth is good for a local economy that has struggled since the start of the Great Recession in 2008.

According to figures provided by Mercy Fort Smith, the healthcare system's impact on the city of Fort Smith, as of 2011 included more than $247.5 million in spending at Mercy's facilities and its suppliers with an additional $34.6 million in direct capital investment with additional capital investments exceeding $49.3 million in the two years following the report. The system also had a payroll of $96.1 million for 1,754 employees in 2011, while paying $5.6 million in annual local and state taxes.

At Sparks, Bragg said of its more than 1,500 employees (as of 2013), more than 300 were physicians with a total payroll of more than $115 million in wages and benefits for its entire system. Additionally, it paid more than $8.4 million in taxes and as mentioned earlier, Sparks had spent $44 million on capital improvements to its facilities since December of 2009 and paid $525,000 in donations to the community since that time.

In addition to the numbers from Sparks, one must consider the new service center opened in Fort Smith by Sparks former parent company Health Management Associates  (HMA) of Naples, Fla., that will employ more than 500 with an average wage of $40,000 once fully staffed. Franklin, Tenn.-based Community Health Systems has since acquired  HMA.

Can the growth and millions in economic impact be sustained? Parker said it has to as Baby Boomers retire in record numbers and the need for physicians becomes greater than ever before. While Sparks and Mercy have confirmed heavy recruitment efforts, some of those efforts have come at the expense of other healthcare providers in the region, what Parker called a cannibalization of physicians.

That is just one of many reasons the Fort Smith Regional Healthcare Foundation has established the new osteopathic school to be built at Chaffee Crossing at a cost of about $58 million. When all is said and done, Parker said 600 osteopathic students will be enrolled each year and all the region's major healthcare providers — Mercy Fort Smith, Sparks, and Cooper Clinic — will work with the school to host residencies. The school expects to accept its first cohort of students in the Fall of 2017.

The hope, according to Goodman, is that many of the physicians that graduate from the Arkansas College of Osteopathic Medicine, as well as the steady stream of graduates coming out of the well-established nursing program at the University of Arkansas at Fort Smith, choose to remain in the area.

"The best way to get physicians to your community is to grow them yourselves, so to speak," he said with a laugh.

But even with the school's creation, recruitment of physicians to the region and continued expansion by the region's hospitals — Mercy is constructing two new clinics with more planned, according to Goodman — the healthcare sector of the economy will continue to thrive, according to all of those who spoke for this article, with many of them saying the need is large enough to justify a continued infusion of capital for many years to come. Just at Mercy alone, the hospital is in the middle of a planned $192 million investment in the community that began in 2011.

And economists with the state of Arkansas predict a rise the number of individuals employed in the health care industry to rise by 20.7% across west central Arkansas by the year 2018, only one year after the opening of the ACOM.

The Education and Health Services sector of the Fort Smith metro area employed an estimated 16,400 in February, down from the 16,900 in February 2013, but up almost 4% compared to the 15,800 employed five years ago in February 2009. By comparison, the number of total employed in the metro area during February was an estimated 119,041, down 3.64% compared to February 2009.

Goodman said investments by the various healthcare systems, especially in recruiting a bench of talent that can step in when others retire or when needs arise, will continue, just as the figures predict.

"I see, at least from Mercy's standpoint, there's no real crystal ball to look into. But I see us continuing to grow and continuing to recruit to improve that growth and (level of care) and to maintain it. Once you get a certain number of physicians, that's great. But you still have to continue."

A moist towelette first created for Kentucky Fried Chicken in 1957 and produced in Arkansas has found its way to Walmart shelves in more than 3,400 stores, according to Lindsey Drain, marketing manager for Nice-Pak Products in Bentonville.

Drain said Nice-Pak is launching five new Wet-Nap products this week exclusively for Wal-Mart Stores Inc. The hand wipes come in several varieties ranging from individual packettes to large flip-top packs for bigger messes. The wipes can usually be found in the paper goods aisle or health and beauty section.

Nice-Pak Products Inc. Chairman and CEO Robert Julius remembers when Colonel Sanders first helped introduce the brand to the world more than 50 years ago.

“Finding the ideal solution for his patrons to clean up after enjoying his finger-licking good chicken, The Colonel made Wet-Nap hand wipes available with every meal,” Julius said. “Today marks the beginning of a new chapter and we are thrilled that this tried-and-true product and Original Wet-Nap® brand is now on the shelves at Walmart.”

This one-year contract and product launch is a double win for the Natural State as these and other private label wipe products are manufactured at Nice-Pak’s Jonesboro plant, Drain said. The company has operated a sales office in Bentonville for the past 14 years employing eight full time professionals, Drain said. The Jonesboro manufacturing plant employs about 200.

“We are excited to be offering these mom-tested and mom-approved products exclusively at Walmart,” said Tom Hernquist, president of the consumer division for Nice Pak Products. “Wet-Nap products are a convenient, affordable ($1.97) solution for wiping hands and faces on the go.”

Nice-Pak rolls out more than 100 billion wipes every year, posting estimated sales revenue between $147 million and $167 million, according to Insideview.com. Its brands include Nice 'n Clean, Grime Boss, Sani-Hands and Wet Nap, and private label wipes for several retailers and restaurant chains. 

The wet wipe industry is a competitive field with U.S. sales expected to top $2.5 billion by 2016. 

“Wipes manufacturers are constantly looking for the next big thing, thereby fragmenting the wipes market. The largest wipe segment is household wipes, although personal care wipes are fast becoming a close second. Twenty years ago baby wipes were the only wipes to be found,” according to Rory Holmes, president of industry trade group INDA.org. “The wipes market has evolved and now the household and personal care wipes have taken over the market as the biggest sellers.”

Baby wipes represent 20% of all wipes sales in North America, while the household wipes category has reached more than 35% of all sales. Meanwhile, cleaning/disinfecting wipes and floor wipes account for 10% each of the total market, according to industry research.

Nice-Pak’s global competitors include Johnson & Johnson, Kimberly Clark and Procter & Gamble.

The private company said its sustainability goals are closely aligned with Wal-Mart and it was the first private label wet wipes manufacturer to become a founding member of the Sustainability Consortium.

Their sustainability goals include a 10% reduction in energy use per unit of production in three years with a 15% reduction in greenhouse gas emissions by 2015. The company also achieved a zero landfill status for its factories in Green Bay, Wis., and Mooresville, Ind.

Tonnage shipped along the Arkansas River is down for the first three months of 2014 compared to the same period in 2013 and at least one operator along the river said it may still take a while before tonnage rates return to pre-recession levels.

According to the U.S. Army Corps of Engineers, January-March tonnage on the McClellan-Kerr Arkansas River Navigation System totaled 3.062 million tons, down 6% from the 2013 period. April tonnage totaled 1.244 million tons, up 21.84% from the average of 1.021 million tons during the first three months of the year.

Tonnage shipped into the Arkansas River system totaled 1.185 million tons and tonnage shipped out totaled 1.283 million tons during the first three months of 2013, down 6% and 12% respectively. Internal shipping was a bright spot, as the 594,697 tons was a 23% increase over the same period last year.

Marty Shell, president of Van Buren-based Five Rivers Distribution, said the overall 6% decline for the first quarter could be representative of a coming slow down in the economy.

"Your inland port terminals are normally a good economic indicator," he said. "Usually, you'll see a downturn a few months before the stock market. At the same time, you'll usually see an uptick before the stock market, as well."

While overall tonnage is down 6% for the first quarter, a positive included in the numbers is the increase of transported items in the iron and steel category, which is up 11% for the first three months of the year. Other increases include sand, gravel and rock at a 29% increase and minerals and building materials, which is up 14%.

Even though the decline in overall tonnage could be taken as an indicator of a slowing economy, Shell said any increase shown in categories like those above are good indicators that businesses are ramping up production.

It's for that reason that it is so important that the river be open and running at full capacity, he said.

"This provides economic impact for Arkansas and Oklahoma. If it shut down for just a day, it would cost the region about $2 to $3 million a day. This river provides raw material for businesses to keep going," he said. "The river may not employ a lot of people, but the companies we ship to and from employ a lot of people. So it's vital that this system keep moving forward."

With the river economy still struggles like the rest of the economy to fully recover from the economic calamity of 2008 and the recession that followed, Shell said numbers could continue to fluctuate before shipping activity stabilizes along with the rest of the economy.

He saidin 2007 and 2008, he recalls river tonnage numbers averaging around 14 million tons annually before dropping to as low as 10 million tons.

For 2014, Shell said a reasonable estimate would be about 12.5 to 13 million tons. But he said knowing for sure how much his company, which employs about 25 and operates the ports in Fort Smith and Van Buren, would ship in coming months was tough to predict.

"Used to, I could tell you what I'd be doing months from now. But since 2008 to 2009, it's hard to know three to four weeks from now. People just don't want to have a lot of inventory sitting around in a fragile market."

For the time being, he said fertilizer and farming materials will be the big driver of inbound barge traffic, adding that the resulting harvests later in the year will drive much much of the outbound barge traffic in September and October. In the intervening months, he said other items will fill the void.

"We live in a world where the chicken and poultry are very dominant. These guys have to feed these animals. So we'll start to pick up corn and the stuff that goes into the feed. So you'll see some pick up."

Overall, he said the tonnage report this month is not a dismal one, though everyone involved with movement of goods along the river would like to see improved numbers.

"We went through one of the biggest recessions since the Great Depression. We're almost back to where we were. It's taken five to six years to get there. But things are good on the Arkansas River. Growth is happening. It's just not at the (rate) you or I would like it to happen. Hopefully, as we move forward, the economy will get stronger. It's not what it used to be, but it's getting better."

More details were released Tuesday (April 15) on a planned mixed use development to be built at 822 Garrison Ave. The information was presented at Tuesday's Central Business Improvement District meeting. Developer Rodney Ghan of R.H. Ghan Commercial Real Estate confirmed that a franchisor of Jimmy John's had committed to the space he plans to remodel, adding that the Florida-based franchisor is also constructing an additional Jimmy John's location along Rogers Avenue, next to a new Popeye's.

The location proposed for Garrison Avenue will be about 2,400-square-feet, while the Rogers Avenue location will be smaller, according to Ghan.

Fort Smith Deputy City Administrator Jeff Dingman, who serves as a liaison between the city and the CBID, said even though the project falls within the CBID's jurisdiction, it would not need the CBID's blessing for a zoning variance from the Fort Smith Planning Commission since the building had previously been granted a variance under previous ownership for a previous remodel.

Dingman also made the point that the set back outdoor eating area proposed for the development was not much different than other restaurants along Garrison, with CBID Commissioner Phil White pointing to Neumeier's Rib Room and Bravo as two examples along the Garrison corridor.

White did question materials that would be used in the renovation of the building, which Ghan said dated back to circa 1929. Ghan said once plans were finalized, he would address the concerns of building materials with the CBID, of which he is a member.

Ghan did address the apartments to be rented on the second floor, explaining that the two units would rent for $850 per month and one would be rented to the manager of the Jimmy John's, who he said is relocating from Florida to manage the quick service sandwich shop.

As for cost for renovation of the building, Ghan said he did not have firm numbers at this point, though he said it would be a significant investment.

Permits could be issued as soon as 45 days from now, he added, with the building being completed as early as the Fall of this year.

In other business, Dingman told CBID members that design for a planned splash pad at Compass Park was taking longer than expected, though he said a 2014 opening was still a probability.

At the March CBID meeting, the concern about the project was securing funding since the project had run over budget by about $50,000. Even though funding has now been secured, Dingman said Parks Director Mike Alsup and engineer Bobby Aldridge of Frontier Engineering were still attempting to control costs.

"I talked to Mike this morning and he talked to Bobby yesterday. They're still trying to tweak (the budget). Even though we have some available funding, we still want to be as efficient as we can."

In order to have the splash pan open for at least some of the hottest months of the year, Dingman said he had given the parks department a timeline to complete the project.

In assuring White, who expressed concern that it could be more than a year before the project is completed, Dingman said even if the public pools close, a completed splash pad could be used this year since the hottest months of the year would likely last even beyond the closing dates for the pool. He said leaving the splash pad open was simple since a staffed life guard did not have to be on site.

The CBID will meet again on May 20.

Fort Smith area native Craig Rivaldo is set to take over leadership for Arvest Benton County on May 1 and the banker will carry his “playbook” and more than 20 years of leadership experience when he settles into his new bank office full-time.

It’s been nearly three decades since Rivaldo lived in Fayetteville as a young banker with McIlroy Bank, now Arvest. He marvels at the growth the region has seen and is eager to get re-acquainted with the community. He and wife Mary Jo and their son Conner will reside somewhere in Benton County, making the final move in the next couple of months.

“I can’t wait to plug into some civic leadership roles once I get settled in. Now I serve on the Fort Smith Chamber of Commerce as the incoming chairman (for 2015), University of Arkansas at Fort Smith Foundation Board; Mercy Hospital Board and Fort Smith Area Community Foundation. Being actively involved in the community is part of my core values,” Rivaldo said.

MARKET DYNAMICS
It’s roughly 90 miles from downtown Bentonville to Fort Smith but there are four distinct Arvest bank markets along that stretch of highway and stark differences in the demographics and dynamics among them.

When Rivaldo was tapped to help start the Fort Smith market in 1999 he said the expansion was organic — from the ground up. He left a mature market in Fayetteville to try and build a neighboring market from scratch, aided by a few key acquisitions along the way. In 2010, he became president over the Fort Smith market when John Womack was picked to lead the central Arkansas market for Arvest.

With this move to Benton County, Rivaldo will be at ground zero for Arvest Bank in what is likely its most-mature market in terms of share and brand recognition. Benton County also is one of the fastest growing areas in the country in population, jobs and banking competition. Rivaldo said he had no reservations about taking this position when it was offered.

“Honestly, I thought about some really great leaders like Don Walker, Rob Brothers and David Short who held this position over the years. Being over the bank’s original market I suppose there can be added pressure, but all of the 16 Arvest markets are equally important,” he said.

LEADERSHIP STYLE
Some of the key leadership aspects Rivaldo said he brings to this new job include high energy with a no-complacency approach. He said his leadership style is upbeat and he believes in fostering a fun work environment, but never sacrificing quality customer service in the process.

“I believe it is my responsibility to set high expectations,” he said. (That includes himself and the entire market he oversees.) “This is part of the Arvest culture, I understand it. It’s my playbook and key to my leadership style,” Rivaldo said. “I’ve been told I bleed blue and I do.”

His first task as the new leader in Benton County will be to get to know his team

“I looked at the March earnings for Benton County and there is no doubt a talented team  is on the ground making good things happen. My goal is keep that unity, provide leadership and make sure the corporate culture stays intact,” Rivaldo said.

That local culture may be in need of reinforcement. The job Rivaldo moves to opened up when Dennis Smiley resigned following disclosure of troubled loans and allegations of fraud. Three banks filed counter complaints against former bank executive H. Dennis Smiley in Benton County Circuit Court on Friday (April 11). Smiley was the president of Arvest Bank Benton County until he resigned on March 13. Following his resignation, 20 Arkansas banks have been trying to get repaid the $4.5 million they lent Smiley over the past seven years.

INDUSTRY CHANGES, CHALLENGES
There are plenty of challenges facing the banking industry and Rivaldo said he spent two days last week in Washington D.C. talking with legislative staffers about “over-reaching regulation.” 

“In talking to the legislative staff I don’t think they realize what a burden that regulation is creating for community banks that are having to staff up to handle the added oversight all because of the actions of a few banks. Community banks are the backbones of economies they serve and the added regulations are burdensome,” he said.

Rivaldo agreed that smaller banks have the least cushion to defray ongoing regulatory costs and this is likely to fuel more bank consolidations as a result.

He also weighed in on how technology is changing the business of banking for better or worse.

“My son had gotten a check at Christmas time from his grandmother. At the breakfast table I thought I would show him something when he gave me the check to deposit for him. I grabbed my phone, scanned the check into his savings account and then tore the paper check up. He looked at me and asked if he would ever have to go into a bank again,” Rivaldo shared.

That simple question from a 12-year-old hit home for the veteran banker.

“Banks are going through an evolutionary change. The days of large brick mortar buildings will likely give way to smaller, versatile banking centers now that 60% of banking services can be performed electronically. Banks are going to have to change their way of thinking,” Rivaldo said.

AccuWeather.com reports Moore, Okla., is in the heart of an area known as Tornado Alley. The people who call Moore home are still rebuilding from last year's devastating tornado that struck the area on May 20, 2013. In fact, HelpMooreRebuild.org is just one website where requests for help can be made as well as an area for people to sign up, serve and donate.

According to NOAA, about 1,300 tornadoes hit the United States per year and about 60 people die from a tornado-related death such as falling debris, per year. With severe weather season already underway, it is important to be able to identify where tornadoes touch down most frequently. Arkansas has averaged 39 tornadoes per year between 1991 and 2010.

The most popular answer, Tornado Alley, is a stretch of land famous for its frequent tornado watches and warnings during the spring. Tornadoes, however, can occur almost anywhere in the United States, including west of the Rockies and east of the Appalachians. In fact, some weather experts suggest there is more than one tornado alley and up to as many as four different domestic locations.

Senior Vice President of AccuWeather Enterprise Solutions and Tornado Expert Mike Smith said that he believes in only two domestic tornado alleys: the classic stretch from Dallas to Des Moines, Iowa and Dixie Alley.

The National Weather Service (NWS) Storm Prediction Center (SPC) routinely collects reports of severe weather and compiles them with a Graphic Information System (GIS). This file contains track information regarding known tornados during the period 1950 to 2006.

"Dixie consists of northeastern Arkansas, western Tennessee, northern Mississippi and Alabama. This area can estimate seeing about eight to 13 tornado watches per year and it's because of the low pressure systems that come through the area that mixes with moisture from the Gulf," Smith said.

The collision of cool air and warm, moist air is also what makes the Plains such a prime location for frequent tornadoes.

"The Great Plains is so susceptible to tornadoes because of the collision between moisture from the Gulf of Mexico, cool air from Canada, and most uniquely, very dry air from New Mexico and California that collides with the moisture," Smith said.

Those same ingredients can be found just about anywhere on the map of the United States, thus sporting the theory that there may be a Hoosier Alley (Kentucky, Illinois, Indiana and Ohio) and Carolina Alley (North Carolina and South Carolina) as well.

Since it's not rare for the atmosphere to bring these conditions together, some say it's nearly impossible to define one tornado alley, let alone multiple.

"I don't think there are any [tornado alleys]. It isn't a well-defined concept and it's pretty clear if you ask different meteorologists that they will draw different maps. If you ask the public, I think they would draw an area that would be something that would be based on occurrence," said Harold Brooks, senior scientist of Forecast Research and Development Division for NOAA, said.

There are several different ways that a tornado alley could be defined. It could be based on how often tornadoes touch down in an area, how often you include path lengths, if there is a definable severe weather season, or you could talk about impacts and where the most damage occurs, Brooks said. Dixie Alley is characterized by the presence of a defined severe weather season in the springtime as well as a strong fall signal which is slightly different from the definitive severe weather season of the Plains.

"There has been a high fatality rate from the 1950s through the present with F2 storms or higher in Dixie. These are the kind of storms that can take out a person's home," Smith said.

Defining an alley based on frequency or damage is not as easily agreed upon in areas referred to as Carolina Alley and Hoosier Alley.

"Carolina Alley is something that I don't buy. An interesting theory, as is Hoosier Alley, but they are terms for broad regions between the Rockies and the Appalachians where there is enhanced tornado occurrence, but the strength of that seasonal cycle weakens as you go east from the Plains," Brooks said.

Although Brooks does not buy into Carolina or Hoosier Alley's there is research that disagrees with him. Despite the location, it's important to pass on and understand the difference between tornado watches and warnings.

"Tornado Alley receives 10-15 watches per year and this is when the forecast conditions are just right for a severe weather event to occur, but a warning is when a specific area is advised to take cover," Smith said.

"Essentially, the Plains are an ideal place to make storms very frequently because it's easy for the atmosphere to do it there. You need something to initiate it and get the storm started and that the conditions to support the storms in April and May are perfect. But again, this can happen just about anywhere if the conditions are just right," Brooks said.

Campaigns in Arkansas are well underway. Proof that they are more in campaign mode than fundraising mode is the lack of candidates announcing fundraising numbers following the end of the first quarter on March 31.

Of the federal candidates running in the Northwest Arkansas and Fort Smith areas, only U.S. Rep. Tom Cotton, R-Dardanelle, Tommy Moll, R-Hot Springs, and former FEMA Director James Lee Witt, D-Dardanelle, have announced fundraising hauls (as of close of business April 15). Other campaigns may have filed their reports, but the reports have not appeared online and announcements have yet to be made.

Update: Following publication of this article, Sen. Pryor's campaign sent a press release detailing his first quarter fundraising totals. Those totals can be found at the bottom of this story.

Cotton, the freshman member of Congress who is challenging Democratic U.S. Sen. Mark Pryor's re-election, reported raising $1.35 million during the first three months of 2014.

That brings Cotton's total amount raised to nearly $4.284 million since he entered the race in the Fall of 2013. In announcing his cash haul, the Harvard Law graduate and former Army Ranger said the large amount raised during the quarter will give his campaign the momentum it needs as he challenges the well-funded Pryor, who is seeking a third term in the Senate.

"I am incredibly humbled by the outpouring of support from Arkansans from every corner of our state. Last week I announced our campaign's 75-county grassroots effort, and our fundraising success will only bolster our momentum going forward. Arkansans are ready for a Senator who will put our interests before President Obama’s partisan agenda."

The figure for last quarter is an improvement as his campaign picks up steam going into the general election. For all of 2013, Cotton only reported contributions of $3.288 million. His first quarter haul being nearly a third of that total and bumps Cotton's total raised by 46.73%.

For his part, Pryor raised $5.179 million for all of 2013, though his campaign failed to reply to an e-mail seeking information on his first quarter 2014 totals. While Pryor has had the clear financial advantage over Cotton, it has done little to provide much room in the polls between the men. The latest Talk Business-Hendrix College poll shows Pryor and Cotton in a statistical dead heat, with Pryor polling at 45.5% to 42.5% for Cotton.

OUTSIDE MONEY
An interesting dynamic for both men, though no data is available to determine how it is effecting the choice of likely voters, is the heavy advertising taking place by outside groups. A report by OpenSecrets.org shows that during the race for U.S. Senate so far, nearly $3 million has been spent on advertising by outside political groups and the ads are generally attacking each candidate rather than speaking in favor of either.

In the case of Cotton, only $238,501 has been spent on outside ads supporting his candidacy, while $1.772 million has been spent on attack ads against the Congressman.

The numbers don't look much better for Pryor, with only $1,000 spent in favor of the Senator, while nearly $1 million has been spent on attack ads against the candidate.

The biggest spenders so far have included the 501c group Patriot Majority USA, which has spent $1.078 million in opposition to Cotton's campaign. The next largest group is the Senate Majority PAC, a super PAC that has spent $567,098 million in opposition to Cotton's candidacy.

Conservative super PAC Club for Growth Action has spent about $527,858 to support Cotton and attack Pryor, while the Senate Conservatives Action super PAC has spent $319,796 attacking Pryor.

4TH DISTRICT MONEY
A race that has seen relatively little media attention or advertising is the race to replace Cotton in the 4th Congressional District. The only two candidates who had announced fundraising totals by close of business Tuesday were Democrat James Lee Witt, a former Yell County judge and director of the Federal Emergency Management Agency during the Clinton administration, and Republican Tommy Moll, a newcomer to the political scene who is challenging Rep. Bruce Westerman, R-Hot Springs, for the Republican nomination next month.

Moll, who has never sought elected office before, reported raising more than $115,000 during the first quarter, bringing his total fundraising to $539,000 with more than $392,000 cash on hand.

Contrast that to Westerman, who had only raised $217,540 for his campaign during 2013. As of 5 p.m., April 15, Westerman had not released first quarter fundraising numbers.

Witt, on the other hand, has no primary opponent and raised more in the first quarter of 2014 than Westerman raised in all of 2013. The former FEMA director announced raising $26,550 during the first quarter, with a total raised so far of more than $500,000. The figures do not include money raised earlier this month from a Hot Springs fundraiser featuring former President Bill Clinton, who was raised in Hot Springs and had Witt in his administrations when he was Arkansas governor and president.

For his part, Witt — who hasn't held elected office since the 1980s — called the financial support of his campaign humbling.

“The support we’ve received so far in this campaign has been tremendous,” Witt said.  “While it’s humbling to have the support of so many fellow Arkansans, it’s also an encouraging sign of a strong campaign that continues to grow.”

“Folks across the 4th District recognize that my campaign for Congress is different,” Witt added. “I’m not running to promote one party over another or to score political points.  Instead, I’m running to be an honest and independent voice for Arkansas – someone who understands firsthand the challenges facing our families, someone you can trust to really focus on creating new jobs and new opportunity, someone who knows how to work with anyone who’s willing to work together to make a difference for our state and our country.”

PRESS RELEASE FROM PRYOR'S CAMPAIGN
Today, the Pryor for Senate campaign announced a strong $1.22 million haul in the first quarter of 2014, maintaining Pryor’s cash advantage over his opponent, Rep. Tom Cotton. Pryor’s $7.45 million total raised this cycle has given him the resources to define Cotton early and effectively, as evidenced by a string of recent polls showing Pryor leading in a race many national observers have only just begun to realize will remain competitive through election day.

In just the past week, three consecutive public polls have shown Pryor with a lead over Cotton, as did another poll released in March.

April 8: Mark Pryor Leads Tom Cotton in New Poll - U.S. News

April 10: New numbers in Arkansas Senate battle - CNN

April 14: Third Poll In A Row Shows Mark Pryor Leading Tom Cotton - Talk Business Arkansas

April 15: 4 New Polls Show Incumbent Dem Senator Leading GOPer In Arkansas - TPM

“Mark’s message is already resonating with Arkansans, who continue to be deeply skeptical of Congressman Cotton’s reckless votes against Medicare, affordable student loans and equal pay for women,” said Jeff Weaver, Pryor for Senate campaign manager. “Mark’s path to victory is clear because of the grassroots support we’re seeing from across the state of Arkansas. Every day it’s becoming more apparent that voters are tuning in and seeing this race for what it is: a choice between Mark’s steady leadership as a responsible voice for Arkansans and Tom Cotton, a congressman who consistently puts his own ambitions ahead of what’s best for seniors, students, women and working families."

The monthly meeting of the Sebastian County Quorum Court in Greenwood took an unexpected turn Tuesday (April 15) that could result in a lawsuit being filed against County Judge David Hudson.

At issue is a computer hardware maintenance contract Hudson has refused to sign for Treasurer/Collector Judith Miller. The contract, which totals about $18,000, was budgeted by the Quorum Court as part of the Fiscal Year 2014 budget and would use automation funds collected by Miller's office.

Justice of the Peace Dickie Robertson brought the topic up, he said, following a conversation with Miller about problems in her office, namely the contract which has sat for about eight months without a signature from the judge.

"Judith approached me and asked if I would come to her office and talk to her about it, so I did. And I've only got her side of it and I brought it up tonight because I wanted to get the judge's side."

While addressing the issue during the meeting, Hudson said he was trying to save the county money by not duplicating costs for information technology services from the local vendor of Miller's choosing when he asserted that the county's own IT staff could perform the needed services. He also said he was trying to enforce the policies and ordinances passed by the Quorum Court and was not attempting to create a difficult working environment with MIller.

"County government ... to be in a contentious working relationship with elected officials is certainly not my goal and I will do everything I can to be a person of good will and to conduct myself with a cool head, in a professional manner dealing with Judith, (County Clerk) Sharon (Brooks), and every other county elected official and each member of this Quorum Court."

While Brooks did not want to bring her issues to the forefront at Tuesday's meeting, she did explain that she had also had difficulties in getting Hudson to sign contracts for her office. She will address those matters at the May meeting of the Quorum Court.

Miller said while Hudson is asserting he has attempted to work with her, it is simply not true.

"He has not talked to me since ... I don't remember when he's talked  to me. He don't darken my door anymore."

She said it has been at least several months since Hudson has attempted to work with her on the issue of the contract.

Asked to respond to her allegations, Hudson again asserted he would "be a person of good will and I will continue to work with Judith and all the other elected officials as a person of good will for the best interest of taxpayers of the county."

When asked how he is supposed to do that when Miller claims that the two of them do not speak, he said, "We do speak. We do communicate."

Miller said should Hudson continue to refuse to sign the contract for her office, which includes security and firewall hardware maintenance, she would explore legal action to force his hand.

"How long before I do it? Well, the law says if it's a good contract, it's a legal contract, I can file I think a mandamus ... but I have the right to take him to circuit court over it."

A mandamus is a legal order that would force Hudson to do his constitutional duties as county judge, including signing the contract for Miller.

Presented with the information regarding a possible lawsuit against him, Hudson refused to address further questions posed by The City Wire, stating, "I don't have any comment to you."

First quarter home sales in the Fort Smith region showed mixed results, with Crawford County far outpacing Sebastian County during the first three months of the year.

From January 1 to March 31, Crawford County posted a 60.82% increase in sales volume over the same period in 2013, with $14.368 million in sales for the first three months of the year versus $8.934 million during the first quarter last year.

In Sebastian County, sales only increased by 1.17% during the period, rising from $34.054 million in 2013 to $34.453 million in 2014.

According to Principal Broker/Owner Pat Satterfield of Pat Satterfield Real Estate in Alma, one of the biggest drivers for Crawford County's real estate market is the rural development loans that were renewed as part of a recently-passed farm bill. Renewal of the rural development loans had been in limbo for more than a year as Congress passed temporary measures while failing to find middle ground on permanent legislation. That changed with the passage of the long-awaited renewal of the Farm Bill in February.

She said the spike in sales started as far back as the Fall of last year.

"We haven't slowed down since October," she said. "Forget the holidays, the bad weather."

The numbers appear to reflect that, even when the March numbers are broken out on their own, showing an increase of 41.62% in sales volume for Crawford County compared to March 2013, while Sebastian County showed a decline in sales volume of 0.2%.

Satterfield said even though the Farm Bill renewed, the market has stayed brisk in Crawford County for a variety of reasons. Among the most popular is the relatively cheap entry into the rental market, which she said has people investing their savings for better returns.

"They can't get anything on their invested money," she said. "So a lot of people are investing in real estate. I'm seeing that more than anything. They'll have that money in a C.D. and spend it on real estate where they get more on their money. A lot of that's going on over here."

Another driving factor in the Crawford County market, especially in the Alma and Mountainburg areas, is the area's proximity to the Fort Smith and Northwest Arkansas regions, Satterfield said.

"Another thing, I think, is we have a lot of people that will split their time between Northwest Arkansas — maybe they're employed up there and the other half of their family (a spouse) is (employed) in Fort Smith. We're just a good halfway, in between, especially now with the road being a terrible nightmare to get to Fort smith. You can get to Fayetteville about as fast as you can get to the other side of Fort Smith."

As for whether Crawford County can keep up the momentum, Satterfield said it was likely, though she said it would level off somewhat.

"I don't see a downward turn at all. It's going to be a steady thing going on," she said, adding that it will likely be June before the market slows down much.

Home Sales Data (January - March)
• Crawford County
Unit Sales
2014: 132
2013: 86

Total Sales Volume
2014: $14.368 million
2013: $8.934 million

Median Sales Price
2014: $98,300
2013: $96,000

• Sebastian County
Unit Sales
2014: 256
2013: 247

Total Sales Volume
2014: $34.453 million
2013: $34.054 million

Median Sales Price
2014: $115,000
2013: $113,700

Fundraising reports for March show former U.S. Rep. Mike Ross out-raised his Republican challengers running for the governor's mansion. In a report filed with the Arkansas Secretary of State's office, Ross reported more than $222,000 raised during March.

During the same period, former U.S. Rep. Asa Hutchinson raised more than $200,000. His Republican rival in the May 20 gubernatorial primary is North Little Rock businessman Curtis Coleman, who raised more than $38,000 in March.

Of the money both men spent during March, Hutchinson far out-spent his Democratic rival, with more than $280,000 spent and only $1.2 million cash on hand at the end of the reporting period. Coleman spent $25,892 during the month of March and has $16,446 cash on hand.

Meanwhile, Ross reported only spending $138,000 during the month and still has a bank account valued at $2 million for his campaign.

A search on the Arkansas Secretary of State's website for campaign finance reports for Dr. Lynette Bryant, who is challenging Ross for the Democratic nomination, returned no results.

In the race for lieutenant governor, U.S. Rep. Tim Griffin, R-Little Rock, reported a strong month, raising more than $105,000 and ending the month with nearly $266,000 cash on hand.

Things were more grim for one of Griffin's Republican opponents, Rep. Andy Mayberry, R-Woodson, who reported only raising $320 in March, spending more than $30 during the month and having a balance of campaign funds of only $439.53. All told, Mayberry has raised more than $15,000 for his race to be lieutenant governor, a position he said is a waste of taxpayer dollars and should be eliminated, placing the Secretary of State's office first in line to succeed the governor should the occupant of the governor's mansion resign or die in office.

Rep. Debra Hobbs, R-Rogers, reported not raising any money during the month, though she did spend more than $12,000 in her bid to defeat Griffin, the presumptive Republican nominee for lieutenant governor. She still has more than $22,000 cash on hand as the campaign enters its final two months.

In announcing his strong totals, Griffin thanked donors who he said were donating because they believe the state needs "common sense" leadership.

“I am overwhelmed by and grateful for the generosity of Arkansans from all four corners of our state," he said. "They know that the state needs common sense, conservative policies put in place to grow good-paying jobs, help Arkansas compete and make better use of their tax dollars.”

On the Democratic side of the lieutenant governor race, former Highway Commissioner John Burkhalter reported raising more than $25,000 in his first bid for public office, while he spent just more than $26,000 during the month of March. He still has $431,971 cash on hand, which includes loans of $55,000 to his campaign.

In the race for District Senate 9, the money keeps flowing with Rep. Terry Rice, R-Waldron, announcing contributions of $7,075 during the reporting period and spending $6,717.85. He is sitting on a bank account of $21,630.25, while he still has an outstanding loan of $50,000 to his campaign.

Sen. Bruce Holland, R-Greenwood, who is seeking a third term, reported raising $13,050 in March, while he spent $7,560.11. He has $49,000 cash on hand, with an outstanding loan of $10,000 to the campaign.

Both men have spent heavily on billboards, while Holland has spent money on mailers, as well.

Wal-Mart Stores Inc., the world’s largest retailer, says it has 1,000 stores ready for a transformative change in credit card technology and plans to have the rest of their U.S. stores ready by the end of 2014.

An official with the National Retail Federation told a congressional panel Wednesday (April 16) that the retail industry is committed to safeguarding and protecting consumer data and information from highly-motivated and sophisticated cybercriminals and hackers.

“Retailers make significant investments every year in order to protect [consumer] data,” NRF Vice President Tom Litchford said during his testimony. “Collectively, retailers spend billions of dollars annually to safeguard data and fight fraud, as well as hundreds of millions annually on credit card security compliance.”

Litchford testified before a field hearing of the House Homeland Security Subcommittee on Cybersecurity, Infrastructure Protection, and Security Technologies, where he outlined specific steps that the nation’s retailers are pursuing and implementing to identify, prevent and combat cyberattacks.

He described NRF’s support for immediately transitioning away from fraud-prone credit cards that utilize 1960s technology (magnetic-stripe and signature) to more advanced and secure cards that incorporate a Personal Identification Number or PIN, or Chip and PIN cards that include a computer microchip.

PIN-based cards, along with data encryption and tokenization, would help prevent cybercriminals from monetizing consumer financial information and provide better fraud protection for retailers, banks and consumers than proprietary Europay, MasterCard and Visa or EMV technology that does not require the use of a PIN.

“Chip and PIN technology dramatically reduces the value of any stolen ‘breached’ data for in-store purchases because the payment card data is essentially rendered worthless to criminals,” Litchford said. “The failure of U.S. card networks and banks to adopt such a system in the United States is one reason why cyberattacks on brick-and-mortar retailers have increased.”

Wal-Mart told The City Wire that it has long supported the adoption of chip and pin technology within the United States.

“We have 1,000 stores with terminals equipped for pin and chip transactions, we will have the rest of our stores equipped by the end of this year. We are glad to see this discussion taking place. The rest of the world is already using this technology and we think it’s past time for card issuers to adopt this technology in the U.S.,” said Brooke Buchanan, spokeswoman for Wal-Mart Stores Inc.

The nation’s retailers are pursuing the establishment of a Retail Information Sharing and Analysis Center, or Retail ISAC, that would provide retailers and merchants with actionable and timely threat intelligence to help identify and mitigate cyber risks.

Litchford said the development of the Retail ISAC is in the final stages of planning for the establishment of the technological and operational infrastructure to support a secure portal through which members can share information.

“NRF’s goal is to allow credentialed [Retail ISAC] members to share information of varying levels of sensitivity anonymously, thus allowing the Retail ISAC to act as a repository of critical threat, vulnerability and incident information that is sourced from various members and outside organizations, and to facilitate peer-to-peer collaboration with the sharing of risk mitigation best practices and cybersecurity research papers.”

Acknowledging that there is no silver bullet to combating cybercrime, NRF called on Congress to support the retail industry’s efforts on data security and cybersecurity by passing the Cyber Intelligence Sharing and Protection Act (H.R. 624), or CISPA, which would further encourage businesses and retailers to share information across sectors on cyber threats in real time.

Facing tough sales comparisons and other operating headwinds, Wal-Mart Stores Inc. is once again expanding its fee-based services with a new money transfer option expected to rival Money Gram for U.S. money transfers up to $900.

The retail giant said it has teamed up with Ria Money Transfer, a division of Leawood, Kansas-based Euronet, to offer a cheaper money transfer option to its cache of financial services. Wal-Mart said it saw a gap in services for its customer base and pursued a partner to bring a cheaper option for sending money within its U.S. network of 4,000-plus stores.

“After listening to our customers complain about the high fees and confusion associated with transferring money, we knew there had to be a solution,” said Daniel Eckert, senior vice president of services for Walmart U.S.

He said the new product — Walmart-2-Walmart — brings new competition and transparent, everyday low prices to a market that has become complicated and costly for consumers.

“We’re doing what we do best – launching a new service that challenges the status quo and drives down prices for our customers,” Eckert said.

Walmart-2-Walmart has a clear fee structure depending on how much money is transferred. For amounts under $50 the transfer fee is $4.50, a slight discount from the $4.75 to $5 charged by other services. Eckert said the real value comes in the larger transactions as up to $900 can be sent for $9.50. Eckert said that same transaction would cost up to $76 with other service providers.

Wal-Mart offers a like service with MoneyGram which is worth an estimated $398 million, based on last year’s business between the two companies. MoneyGram, which clears through the Bank of New York, noted that Wal-Mart Stores was its largest partner in 2013 representing 27% of its total money transfer revenue. 

Eckert said Walmart-2-Walmart has limits that MoneyGram does not. The retail giant said it will continue to offer Money Gram premium grade services and has signed a three-year extension with the financial partner to 2016.

“Walmart-2-Walmart is available in-stores only, no online option. A customer can bring in cash or use a pinned debit card to initiate a money transfer in any one of our stores, including Neighborhood Markets and Express formats,” Eckert said.

Roughly 95% of Americans live within 15 miles of a Wal-Mart location so leveraging this massive physical infrastructure makes this value proposition possible. Juan Bianchi, CEO of Ria Money Transfers, said the transfers are capped at $900 per day to stay clear of the regulatory hoops that come with handling larger wire transfers. The U.S. government requires transfer agents to collect and store sending and recipient information in addition to filing regulatory papers on transactions above $900.

The partners said they wanted to slash the price for customers who use the services the most — military servicemen on bases or oil field workers sending money back home. Keeping the transfers domestic and tied to the store infrastructure, then capping transfers at $900 were the best way to keep the price down.

Bianchi said senders can provide a pin number or security question to the transfer agent  which allows the receiver to pick up the money without having to show identification, although a photo I.D. would work.

Almost 28% of Americans are classified as either underbanked or unbanked, with millions using money transfers as a critical part of maintaining household budgets or helping friends and family in times of crisis. Wal-Mart has worked to provide bank-like services for several years. Financial services added about $4.8 billion to Wal-Mart’s topline revenue last year, according to the retailer’s annual filing with the federal Securities and Exchange Commission.

Last year Wal-Mart launched Blue-Bird, a checking and debit alternative that the company says has resonated with the unbanked and some of the banked population given accessibility and lower fee structure.

“One of the things we do best is provide a wide assortment of products and let our customers decide what works best for them. Walmart-2-Walmart is another example of corporate efforts to partner with providers to fill a gap in the market,” Eckert said.

Jason Long, CEO of Shift Marketing Group, said Wal-Mart’s new money transfer service looks like another great way to drive in-store traffic and adds another revenue stream to the business. It should appeal to many of Wal-Mart’s core customers who can save a trip and save money by using the service."

By launching this service, Wal-Mart is extending its strategy of offering basic financial services to help bring shoppers into its stores and keep them there. What is interesting is that many grocery stores already offer money transfer services in partnership with Western Union and MoneyGram, so this is a competitive response to the other companies already in their space. Banks have also partnered with Western Union and MoneyGram, so this means that Wal-Mart has another financial services product to make its MoneyCenters more attractive and more full service, said Ben Jackson, senior analyst with Mercator Advisory Group.

He adds that Wal-Mart shoppers who use this service will likely be sending it to people who are also Wal-Mart shoppers. By sending it store to store, they are enabling a transaction that happens in a place both the sender and recipient are familiar with and comfortable in.

"Our CustomerMonitor Survey Series found that in 2013, 14% of the U.S. population sent money to friends or family using a money transfer, and that was an increase from 9% in 2012. We do not know if those were domestic or international transfers," Jackson said.

Investors also applauded this move by Wal-Mart and Ria sending the shares of each company higher. Shares of MoneyGram went south on the news. Shares of Euronet, the parent of Ria, rallied 4% in early trading after Thursday's announcement. Euronet shares rose to $42.41, up $1.62. Wal-Mart Stores Inc. shares are up a dime to $77.32, while MoneyGram stock price fell 15% to $15.24 on the news it will have more competition within the U.S.

Where do bankers go to borrow money? A paper trail left by former Arvest exec Dennis Smiley Jr. indicates he went to his friends and family first – and possibly without their consent.

Not only did Smiley borrow money from a bank where his father 73-year-old Henry Dennis Smiley Sr., is chairman, he also co-borrowed with his dad on several occasions in a venture known as HDS Holdings, a revocable trust and jointly in both Smiley names, according to three recent counter claims filed in Benton County Circuit Court.

The senior Smiley through his counsel, the Hogue Law Firm in Fayetteville, has filed a response to the Bank of Fayetteville’s counter claim and request for judgment. The answer notes that Smiley Sr. denies borrowing money from the Bank of Fayetteville or guaranteeing loans as trustee on behalf of his son. In the answer, Smiley Sr. pleads the “affirmative defenses of fraud and statute of frauds.”

The defendant Smiley Sr. said he did not sign any of the subject loan documents. “Upon information and belief,” an individual other than Smiley Sr., signed his name without his knowledge. He said the documents were executed without any authority granted by him. Smiley adds that he gave no one the authorization to sign his name.

The Bank of Fayetteville had asked the court for a $42,000 default judgment against Smiley Sr., and a $215,000 judgment against the Trust in which Smiley Sr. is a trustee. Claiming fraud, Smiley Sr. asked the court to dismiss claims against himself, along with his counter defendants HDS Holdings and the Henry Dennis Smiley Revocable Trust, that we oversees as trustee.

Smiley Sr. recently told Arkansas Business he was brokenhearted about his son’s financial and legal troubles saying at the time he didn’t know what all had happened.

Delta Bank & Trust also filed loan papers with the Benton County Circuit Court that bore Smiley Sr.’s signature on a $245,126 note made Feb. 20. That loan’s first installment was due March 20, seven days after Smiley Jr. resigned his job at Arvest Bank. Smiley Sr. said in his response that he did not make or authorize the loan with Delta Bank & Trust, and the documents that bore his name were signed without his consent or knowledge.

It is now known that Arvest was contacted by multiple banks in recent weeks seeking payment for Smiley Jr.’s debts as he repeatedly pledged his Arvest bank stock as collateral. This and other suspicions led to Smiley’s resignation.

Arvest noted in its recent interpleading with the Benton County court that 20 banks were after Smiley Jr.’s stock plan assets which should have never been pledged as collateral.

To date, five of those banks have filed counter-complaints and or defendant responses with Benton County Circuit Court.

Home Bancshares, parent company of Centennial Bank, reported a record first quarter profit on Thursday (April 17), and Simmons First National Corp. had an up-and-down quarter depending on how you view their latest financial results.

HOME BANCSHARES
The Conway-based financial institution posted profits of $27.3 million, up from $17.5 million one year ago. Home Bancshares acquired Jonesboro-based Liberty Bancshares last year for approximately $235 million.

“The company has achieved yet another historically record quarter during the first quarter of 2014,” said Home Bancshares Chairman John Allison. “Our team continues to be dedicated on working toward recognizing the anticipated cost savings as quickly as possible from last quarter’s acquisition of Liberty. I am looking forward to watching our team succeed in this process and pass along the results to our deserving shareholders.”

Home Bancshares reported that it saw improvements in several of its loan pools associated with acquisitions made with the help of the FDIC. Home Bancshares went on an acquisition tear in the post-recession period buying several Florida banks that were financially troubled.

“During our first quarter 2014 impairment testing, four FDIC loss sharing pools evaluated by the company were determined to have a material projected credit improvement. As a result of this improvement, the company will recognize approximately $11.4 million as an adjustment to yield over the weighted average life of the loans ($2.0 million was recognized during the first quarter of 2014),” Home Bancshares disclosed in its earnings statement.

Other financial highlights for the quarter included:
• Net interest income for the first quarter of 2014 increased 73.6% to $77 million from $44.3 million during the first quarter of 2013.

• The company reported $12.2 million of non-interest income for the first quarter of 2014, compared to $9 million for the first quarter of 2013.

• Total non-covered loans were $4.13 billion at March 31, 2014 compared to $4.19 billion at Dec. 31, 2013.

• Total covered loans were $270.6 million at March 31, 2014 compared to $282.5 million at Dec. 31, 2013.

• Total deposits were $5.34 billion at March 31, 2014 compared to $5.39 billion at Dec. 31, 2013.

• Total assets were $6.78 billion at March 31, 2014 compared to $6.81 billion at Dec. 31, 2013.

Home Bancshares also announced plans to close or merge four Arkansas and two Florida locations during the second quarter of 2014. The company has 88 branches in Arkansas, 52 branches in Florida and 7 branches in Alabama.

Shares of Home Bancshares (NASDAQ: HOMB) opened trading on Thursday at $33.11. The company’s stock has traded between $18.88 and $38.98 during the past 52 weeks.

SIMMONS FIRST
Pine Bluff-based Simmons First posted first quarter net income of $4.35 million compared to $5.94 million one year ago.

However after settling one-time charges associated with its acquisition of Metropolitan National Bank, Simmons First’s core earnings were $7.48 million for the quarter compared to $6.08 million one year ago.

Core earnings exclude one-time charges such as merger-related expense, branch downsizing, and tax effects.

“We are pleased with the core earnings results for the first quarter,” said Simmons First CEO George Makris. “As a result of our fourth quarter acquisition of Metropolitan National Bank, our recently announced acquisition of Delta Trust & Bank, other possible acquisitions and efficiency initiatives, we have and will continue to recognize one-time revenue and expense items which may skew our short-term business results but provide long-term performance benefits. Our focus continues to be improvement in core operating income.”

Financial highlights for the quarter ended March 31, 2014 included:
• Total loans of $2.4 billion, an increase of $518 million, or 28.0%, compared to the same period in 2013.

• Total deposits were $3.7 billion, an increase of $814 million, or 28.2%, compared to the same period in 2013.

• Net interest income for the first quarter of 2014 of $41.5 million, an increase of $11.5 million, or 38.1%, from the same period of 2013.

• Non-interest income for the first quarter of $9.2 million, a decrease of $2.1 million, compared to the first quarter of 2013.

Simmons First (NASDAQ: SFNC) opened trading on Thursday at $35.23 per share. The bank’s stock has traded between $23.57 and $39.05 per share during the past year.

The Compass Report for the fourth quarter of 2013 shows that small but broad based gains in key metrics has resulted in the Fort Smith regional economy finishing out 2013 with two consecutive positive quarters.

A fourth quarter 2013 grade of C+ was unchanged compared to the third quarter and better than the C grade in the fourth quarter of 2012.

The quarterly Compass Report is managed by The City Wire and presented by Fort Smith-based Benefit Bank. The report is the only independent analysis of economic conditions in the metro area.

Joe Edwards, president of Benefit Bank, said he is not surprised by findings from The Compass Report.

“We have heard several good announcements over the last quarter for our area, so this information reflects some encouraging trends,” Edwards said. “There is do doubt we still need to press on, but it is encouraging.”

Edwards said anecdotal evidence through bank customer conversations also point to an improving economy.

“I’m sure there are areas that, selectively, are still feeling some of the impact, but I think overall it is improving. That’s what we are hearing,” he said.

Economist Jeff Collins, who conducts the data collection and analysis for The Compass Report, said federal data show 12 straight months of positive employment growth in the region.

“Nonfarm employment was up a solid 2.9% year-on-year (3,400 new jobs), with total nonfarm employment of 120,300 jobs in December. This marks twelve straight month of positive employment growth. The statistical evidence suggests that the local labor market has stabilized and is returning to trend,” Collins noted.

He added that the fourth quarter numbers also indicate a “clear trend.”

“Data for the fourth quarter was very encouraging. Data for the Fort Smith regional economy had been mixed for some time but now a clear trend indicates the local economy has stabilized,” he explained.

The clear trends will have to continue if the region is to return to workforce levels prior to the national recession. In December, the total number of employed in the Fort Smith metro area was an estimated 122,460, more than 8,000 jobs fewer than December 2006 – prior to the recession – when employment was 130,702.

Economic conditions in the area might be better if not for ongoing losses in the manufacturing sector, Collins said.

“Strong overall non-farm employment growth did not carry over to the manufacturing sector. December-to-December the sector lost 500 jobs or (down) roughly 2.6%,” Collins wrote. “Given the continual erosion of the manufacturing sector, overall performance of the Fort Smith metro was that much more remarkable.”

METRO COMPARISONS, IMPACT
The 2013 fourth quarter economy in the central Arkansas area received a grade of C- meaning that economic conditions declined slightly compared to the fourth quarter of 2012, and were unchanged compared to the third quarter of 2013.

The fourth quarter 2013 grade of B+ in Northwest Arkansas was unchanged compared to the third quarter of 2013, but an improvement over the fourth quarter of 2013.

Collins said the relative poor performance of the central Arkansas economy is not a positive indicator of the overall Arkansas economy.

“The Central Arkansas regional economy is the most diverse in the state and arguably the representative of overall statewide economic performance. Given this relationship, recent data indicates the statewide economic outlook remains subdued,” Collins said.

He also said the three metro areas – especially Northwest Arkansas – continue to be key job generators for the state.

“To underscore the impact of the three largest metro areas, for December of this year the unemployment rate for the rest of the state was 8.5%, up 0.3% from December 2012 to December 2013. The statewide unemployment rate with the three largest metros added back in was 7.2%, up 0.1% December-on-December,” Collins said.

FORT SMITH REGION
OVERALL GRADES — Fort Smith regional economy (per quarter)
4Q 2013: C+
3Q 2013: C+
2Q 2013: C
1Q 2013: C-
4Q 2012: C
3Q 2012: C-
2Q 2012: C-
1Q 2012: C-
4Q 2011: C-
3Q 2011: C
2Q 2011: C
1Q 2011: C-
4Q 2010: C-/D+
3Q 2010: C-
2Q 2010: C-
1Q 2010: C-
4Q 2009: D
3Q 2009: D
2Q 2009: D-
1Q 2009: D+

DATA AND REPORT DOCUMENTS
Link here for the raw data used to prepare The Compass Report for the Fort Smith area, Northwest Arkansas and central Arkansas.

Link here for more narrative about regional and national economic conditions.

SECTOR DATA
CURRENT INDICATORS
Non-farm employment — C+
Non-farm employment in the area has stabilized, with employment in the metro area at 120,300 in December compared to 116,900 in December 2012.

Goods-producing employment — C
The decrease in manufacturing jobs as a percentage of the overall workforce helps diversify the economy. The percentage of manufacturing jobs in the overall workforce was 21% in December 2013, down from the 21.7% in December 2012.

This measure tells us about the risk to the local economy from being heavily weighted toward sectors that have been under economic pressure.

One of the fundamental principles of reducing risk is diversification. The Fort Smith economy has been based on manufacturing for decades, but this heavy reliance on one sector for employment and wealth creation has left the region vulnerable. For several years the manufacturing sector in the U.S. has shed employment as technology and international trade have redefined the production process.

As the economy of Fort Smith becomes more diversified the risk of a downturn in any one sector causing a catastrophic loss of employment diminishes.

Metro area Unemployment rate — C-
The area unemployment rate, an important gauge in the health of the metro labor market, posted a decline to end the third quarter. Unemployment in December was estimated at 7.6%, compared to 7.7% in December 2012.

Sales and Use tax collections — C
Sales tax collections in the region and the city of Fort Smith began to show weakness in the fourth quarter of 2009. That weakness began to improve in the fourth quarter of 2010, was on a stable pace, but began to cool in the third half of 2012 and has been inconsistent during 2013. The tax collections, which are good indicators of regional consumer confidence, were up in Crawford, Franklin, Logan and Sebastian counties to $3.305 million during November 2013 — compared to $3.284 million in November 2012. During the September 2013 to November 2013 period, overall collections in the counties were up 3.07% compared to the same period in the previous year.

LEADING INDICATORS
Building Permit (housing) valuation — D+
The total value of permits issued in the fourth quarter (measured in a three-month rolling average) were down 37.69% compared to the fourth quarter of 2012.

As new households are created they induce growth in retail, education services, health care services and other types of businesses that provide goods and services to households. Also, new construction provides employment and tax revenues.

Hospitality employment — B-
Hospitality employment, which began trending downward in the third quarter of 2012, leveled off during the fourth quarter of 2012 and improved during the first quarter of 2013. December 2013 saw 9,000 jobs in the regional hospitality sector, up 300 jobs from December 2012.

Manufacturing employment — C-
Manufacturing employment in the Fort Smith region showed signs of stability in 2012, but began to dip again during the first quarter of 2013. Sector employment in December 2013 was 18,400, down an estimated 500 jobs from December 2012 employment.

For better or worse, Fort Smith remains a manufacturing town. That implies the near-term economy rises and falls on the performance of the sector. Growth in employment or even stable employment in the sector bodes well for the near-term outlook for the local economy.

Construction employment — B
This sector, which includes mining/natural resources employment, saw employment reach 6,900 in December, up from 6,500 in December 2012.

The rationale for including construction employment is similar to that for building permits. The employment measure is influenced by changes in both the residential and commercial real estate markets.

Obviously, new space implies new residents and new businesses.

Continued gains in employment and sales tax collections helped the Northwest Arkansas economy finish 2013 with a strong fourth quarter, according to The Compass Report.

The fourth quarter 2013 grade of B+ was unchanged compared to the third quarter and was an improvement over the fourth quarter of 2012.

The quarterly Compass Report for Northwest Arkansas is managed by The City Wire. The report is the only independent analysis of economic conditions in the metro area.

Economist Jeff Collins, who conducts the data collection and analysis for The Compass Report, said the regional economy “continues to grow at a rapid pace,” and he sees no reason it will slow in the near term.

“Despite (Northwest Arkansas) being roughly two-thirds the size of the Central Arkansas economy, nonfarm employment grew at at four times the rate of the state’s largest MSA,” Collins noted.

Continuing, he wrote: “The unemployment rate in Northwest Arkansas was the lowest in the state amongst all MSAs in December (4.9%). It was more than a full percentage point lower than that for the Little Rock/North Little Rock/Conway MSA (6.2%). The highest rate in the state was the Pine Bluff MSA at 9.8%. To add perspective, of the 372 MSAs in the country, only 22 posted rates above 10% in December and only 78 had rates below 5%.”

METRO COMPARISONS, IMPACT
The 2013 fourth quarter economy in the central Arkansas area received a grade of C- meaning that economic conditions declined slightly compared to the fourth quarter of 2012, and were unchanged compared to the third quarter of 2013.

The Compass Report for the fourth quarter of 2013 shows that small but broad based gains in key metrics has resulted in the Fort Smith regional economy finishing out 2013 with two consecutive positive quarters. A fourth quarter 2013 grade of C+ was unchanged compared to the third quarter and better than the C grade in the fourth quarter of 2012.

Collins said the relative poor performance of the central Arkansas economy is not a positive indicator of the overall Arkansas economy.

“The Central Arkansas regional economy is the most diverse in the state and arguably the representative of overall statewide economic performance. Given this relationship, recent data indicates the statewide economic outlook remains subdued,” Collins said.

He also said the three metro areas – especially Northwest Arkansas – continue to be key job generators for the state.

“To underscore the impact of the three largest metro areas, for December of this year the unemployment rate for the rest of the state was 8.5%, up 0.3% from December 2012 to December 2013. The statewide unemployment rate with the three largest metros added back in was 7.2%, up 0.1% December-on-December,” Collins said.

NORTHWEST ARKANSAS
OVERALL GRADES — Northwest Arkansas regional economy (per quarter)
4Q 2013: B+
3Q 2013: B+
2Q 2013: B
1Q 2013: B
4Q 2012: C
3Q 2012: B+
2Q 2012: B-
1Q 2012: B-

DATA AND REPORT DOCUMENTS
Link here for the raw data used to prepare The Compass Report for the Fort Smith area, Northwest Arkansas and central Arkansas.

Link here for more narrative about regional and national economic conditions.

SECTOR DATA
CURRENT INDICATORS
Non-farm employment — A-
Non-farm employment is well ahead of 2012 figures, with employment in the metro area at 224,400 in December compared to 215,500 in December 2012.

Goods-producing employment — B
The decrease in manufacturing jobs as a percentage of the overall workforce helps diversify almost any metro economy. The percentage of manufacturing jobs in the workforce was 16% in December 2013, down from the 16.2% in December 2012.

This measure speaks to the risk in a local economy from being heavily weighted toward sectors that have been under economic pressure. One of the fundamental principles of reducing risk is diversification.

Metro area Unemployment rate — B
The area unemployment rate, an important gauge in the health of the metro labor market, improved overall during the quarter. Unemployment in December was estimated at 4.9%, compared to 5.6% in December 2012.

Sales and Use tax collections — C+
Sales tax collections in the region have shown steady gains since 2010. The tax collections, which are good indicators of regional consumer confidence, were up in Benton, Madison and Washington counties to $6.489 million during November 2013 — compared to $6.254 million in November 2012. Overall, collections were up for the quarter.

LEADING INDICATORS
Building Permit (housing) valuation — A-
The total value of permits issued in the fourth quarter of 2013 (measured in a three-month rolling average) were higher than those in the fourth quarter of 2012. However, the rolling average in December was $24.012 million, behind the $38.238 million in December 2012.

Residential building is an indicator of current and expected population growth. As new households are created they induce growth in retail, education services, health care services and other types of businesses that provide goods and services to households. Also, new construction provides employment and tax revenues.

Hospitality employment — B
Hospitality employment in Northwest Arkansas has trended positive for several quarters. December 2013 saw 21,400 jobs in the regional hospitality sector, up from the 20,400 jobs in December 2012.

Growth in the hospitality and leisure sector as measured by growth in employment is included because of the emphasis on creating quality of place in local economic development initiatives.

Unlike enplanements/deplanements, which may or may not be tied to activity in restaurants, hotels, and cultural venues, hospitality and leisure employment most certainly are influenced by growth of these activities. Another possible measure is hospitality-related tax collections.

Manufacturing employment — C+
Manufacturing employment in the region grew somewhat during the quarter. Sector employment in December 2013 was 27,000, up over the 26,800 in December 2012.

Construction employment — B
This sector, which includes mining/natural resources employment, saw gains in employment compared to the fourth quarter of 2012, ending December with 8,900 jobs, up over the 8,200 jobs in December 2012.

The rationale for including construction employment is similar to that for building permits. The employment measure is influenced by changes in both the residential and commercial real estate markets.

Obviously, new space implies new residents and new businesses.

The clock is ticking for Wal-Mart suppliers from soap manufacturers to lipstick and consumers packaged goods (CPG) companies to ensure the goods they sell to the retail giant contain certified sustainable palm oil (CSPO) by 2015.

In 2010, Wal-Mart made a public commitment to source 100% CSPO by the start of 2015 and it’s an important milestone the retailer plans to meet. The goal was one of several set by corporations coming under pressure from environmental groups to help stem the deforestation taking place in Malaysia and other developing countries to make room for tree plantations helping to fuel global demand.

“Palm oil is a commodity which is present in around 50% of all the products we sell. It is in everything from detergents to sandwiches, as it is an extremely versatile oil. Palm oil often only amounts to a very small percentage of a product, so it is often an ‘invisible’ ingredient simply listed as ‘vegetable oil’ in the ingredients list,” Wal-Mart notes on its website.

Supplier compliance to the rule has been mixed thus far, according to the World Wildlife Fund (WWF) who is keeping tabs on the conversion to CSPO for retailers and suppliers alike. (Link here for a PDF report from WWF.)

RETAILER COMPLIANCE
Wal-Mart said the first thing it did in 2010 was to look at its own use of palm oil in the markets where it operates.

“Through this process of calculation we realized that Wal-Mart is accountable for 84,000 tonnes of palm oil and derivatives, or only 0.5% of global palm oil usage, so although we are a large business we use a relatively small amount of palm oil,” the retailer said.

WWF gives Wal-Mart, the retailer, a palm oil sustainability score of 7, out of a possible 12 for 2013. The score card notes that just 9% of the palm oil used by Wal-Mart last year was CSPO. WWF notes Wal-Mart commitment to 100% by 2015.

Wal-Mart’s ASDA business garnered a score of 11 with a 100% CSPO usage. Other retailers posting high scores include: IKEA at 12 and Tesco at 11. Target and Costco both scored a 0.

EARLY COMMITMENT
WWF reports that in 2011 only 47% of the palm oil that the assessed companies reported to be using was certified. Many had set themselves the target of reaching 100% by 2015 – but WWF said it  “had doubts they were on course to achieve this.” In 2011, WWF concluded that no company in the world had an excuse not to be using 100% CSPO. By 2013 WWF revealed which companies have met that challenge and in return are poised to meet the 2015 deadline with Wal-Mart. 

Unilever reached 100% CPSO used in 2012, while United Biscuits, L’Oreal and Johnson and Johnson each reached the 100% milestone in 2010. H.J. Heinz and Nestle were each at 94% CPSO used in 2013.

SUPPLIERS MAKING PROGRESS
The Hershey Company reached 50% CPSO used in 2013, according to WWF. The candy company said it has recently achieved the 100% usage goal a full year ahead of schedule.

Hershey said it will also work with its suppliers to achieve 100% traceable and sustainably sourced palm oil by the end of 2014.

“The Hershey Company is committed to continuous improvement and transparency in our sustainable sourcing efforts,” said Frank Day, vice president of Global Commodities. “Our move to source 100% traceable palm oil is the latest step forward in our efforts to ensure we are sourcing only sustainably grown palm oil that does not contribute to the destruction of wildlife habitat or negatively impact the environment.”

The Kellogg Company scored only a 2 on the WWF 2013 scorecard for sustainable palm oil usage. The low score was attributed to Kellogg not sharing its relevant information.

"As a socially responsible company, traceable, transparent sourcing of palm oil is an important concern, and we are collaborating with our suppliers to make sure the palm oil we use is not associated with deforestation, climate change or the violation of human rights," said Diane Holdorf of Kellogg.

Kellogg also noted in its recent sustainability report that it has urged its partner Wilmar — a large palm oil trader controlling 45% of that market — to adopt the commitment to eliminate deforestation from its supply chain.

"Kellogg's commitment to verifying that the palm oil it uses is not linked to illegal and high risk deforestation provides critical protection for both shareholders and the environment," said Leslie Samuelrich, president of Green Century, an environmental advocacy group.

Mars scored a 9 with 56% of is palm oil usage being certified in 2013, according to WWF. In March, the company announced two major new green policies and outlined a new sourcing charter designed to ensure all its suppliers are providing fully sustainable and traceable palm oil by 2015 — or have plans in place to do so — and setting out a strategy for addressing how its sourcing of beef, pulp and paper, and soy indirectly can contribute to deforestation.

"We're looking to build out a whole suite of policies across all materials and all issues," Barry Parkin, chief sustainability officer at Mars, told BusinessGreen. "The deforestation and palm oil policies are just another step in that effort, which you'll see us filling out over the next few years."

The new policies are set to cover land use, water use and social metrics such as human rights, Parkin revealed. Palm oil and deforestation are being tackled first because the company sees them as two of the most pressing challenges facing the global company.

Wal-Mart’s largest supplier, Proctor & Gamble, scored a 7 by WWF reporting 13% of its palm oil usage certified sustainable under the CSPO guidelines. P&G said last month that 100% of the palm oil it purchases is certified as sustainable under the RSPO guidelines as a Roundtable member. And now it is adding a commitment to no deforestation in its palm oil supply chain.

P&G said it will establish traceability of palm oil and palm kernel oil to supplier mills by Dec. 31, 2015, and it will ensure no deforestation in the palm supply chain to plantations by 2020.

“These goals go beyond our current commitments. P&G will continue to work with each of our suppliers, and we will invest in and work directly with small local farmers, where much of our supply comes from, to improve their production practices,” said Len Sauers. “This is the most complicated aspect of the palm supply chain, where P&G believes we can make a significant and lasting impact.”

A “Healthy” Discussion was the focus of The 5th Annual The Compass Conference on Thursday (April 17) at Mercy Fort Smith. The conference, presented by The City Wire and sponsored by Benefit Bank, featured a panel discussion on the current state of healthcare in the Fort Smith region, as well as what the future holds in the rapidly growing segment of the Fort Smith regional economy.

Cooper Clinic CEO Doug Babb started the forum by stating what many in the industry have been expressing for the last several years — the Affordable Care Act (also known as Obamacare) has changed everything within the industry.

Kyle Parker, the newly-appointed President and CEO of the planned-Arkansas School of Osteopathic Medicine, said while the intent of the law was noble, it was doing nothing to address the physician shortage taking place not only in the Fort Smith region, but nationally.

“It's a great premise, Obamacare itself. We're the richest nation in the world. You're trying to take care of healthcare. It makes a lot of sense, right? The problem with that is when you make insurance mandatory, you tend to use it. If I'm paying for it, I want to go use it. We simply don't have enough doctors. Period. They can't handle the onslaught of the people that are going to want to come into this. ... It's not taking care of this problem. It's not adding to the residencies,” Parker explained.

That is among the reasons for the creation of the new school, Parker said, adding that it hoped to address both current needs in the community and needs in the future. And the needs will only increase.

According to Sparks Health System Chief Operating Officer Jeremy Drinkwitz, while his hospital system has a need for more than 80 physicians, regionally there is a need for more than 200 physicians. In specialty areas the challenge is even more daunting. Pointing to the urology specialty, he said only 250 urologists will enter the marketplace this year in the United States, essentially guaranteeing them a job anywhere they would like across the nation. The low number both specialists and primary care physicians is making it more and more difficult to recruit in the increasingly competitive medical field.

As a result, the region's three large medical providers — Cooper Clinic, Mercy Fort Smith and Sparks — have begun to partner and share physicians in order to ensure that all its patients can be served, according to Matt Keep, Mercy Clinic's chief operating officer.

"There are things that we can do together. We talk about Sparks, we talk about Mercy, we talk about independent physician groups — but when you think about it, Mercy physicians are on staff at Sparks and Sparks physicians are on staff at Mercy. And Cooper physicians are on staff at both places. Mercy Clinic physicians refer to Cooper Clinic physicians. And the circle just goes on and on and on. So basically, we're in this together, we just have to figure out how to put this together in the new marketplace that's going to incentives population management, it's going to expect better outcomes at a lower price. We're going to have to figure those things out. I don't have a lot of answers on that, but I do know it involves more physicians."

The new osteopathic school will help with that, with all three of the medical providers represented on the panel committing to working with the school to ensure physicians can complete their residencies, Parker said.

And even with the cost of medical school rising and fewer students looking to enter the medical profession, Parker said he expects the osteopathic school to fill at least some of the need by offering lower tuition than what his son, who was recently admitted to medical school himself, will be paying.

The tuition rate for the Arkansas School of Osteopathic Medicine, he said, would be about $43,000 each year, while his son's tuition looks to be about $75,000 per year. For students who do not have the financial backing of wealthy parents or some other funding, that could leave a hefty $350,000 to $400,000 in students loans.

"The way that we addressed it was we simply looked from a pro-forma basis and what we could do from a revenue standpoint but at the same time, giving back to the community. So we set our tuition in at $43,000 a year. Most medical schools sit north of $50,000 to do that. We know that we can be successful at those rates, doing that," Parker said, adding, "It's about $75,000 a year to put a kid through medical school. …It's a major problem. You look at the wages these doctors are making today and they'e going to be $300,000 in debt plus the interest that's going to be charged on that."

To go through all of that for lower pay rates, all the men on the panel acknowledged that it would be more difficult to encourage individuals to pursue an education and career in medicine.

All the local hospital groups have said that they are prepared to invest to bring the region's medically underserved population more primary and specialty care, but they acknowledge that it is a problem that is faced not only in Fort Smith, but other places, as well, according to Babb.

"I don't think this (physician recruitment) is a Fort Smith area or regional issue," he said. "This is a national issue and we can't be blaming ourselves and feeling badly about this wondering community. What we need to do is recognize the shortage. We all need to go out and seek our own providers and bring them in so we increase the number of providers. And that's what everyone is trying to do. I really believe, both (when I was at) Beverly with professionals and now at Cooper with physicians – as Kyle said – that if you bring someone to our community and you show them the symphony, show them UAFS, show them the wonderful things we have in our community, they will take the position. The problem is they can go anywhere in the country, any community they want to because they're so scarce. That's the way I see it."