By Roby Brock
Mitsubishi Power Systems Americas selected the Fort Smith community for a $100 million wind turbine plant that will employ as many as 400 people. It is the state’s fifth wind energy related factory. Construction of the new plant will begin in 2011 on 90 acres at Fort Chaffee.
Borrowing for jobless benefits could top $360 million
Arkansas has “borrowed” $119.44 million from the federal government to pay unemployment benefit claims, and could end up with a tab of more than $360 million by the end of 2011.
Rising unemployment and a lack of sufficient funds in an insurance pool from Arkansas employers has led state officials to borrow federal funds to keep jobless benefits ongoing.
State officials are eyeing several potential solutions to the problem including asking for federal forgiveness of the debt and raising unemployment insurance taxes on state businesses.
Lincoln says Senate floor vote not given
U.S. Senator Blanche Lincoln voted for a Senate Finance committee health care bill, known as the Baucus bill, but she said her vote on the full Senate floor is not guaranteed. Lincoln warned that as negotiations take place on a combined bill, she may not support the compromise if it strays far from the Senate Finance committee bill.
Careful to avoid listing any deal-breakers, Lincoln did cite her commitment to a health care reform bill that would remain deficit neutral and said it must have “some impact” in reducing health care costs.
Home sales still sluggish
After a month of improvement, Arkansas home sales retreated overall in the month of August yet there was positive news in certain key regions, according to the latest report from the Arkansas Realtors Association.
Total sales declined 8.9 percent in August compared to one year ago.
Pulaski County home sales led the state in volume, but units sold were down 7.6 percent from last August. Benton County home sales jumped 10.7 percent in a year-over-year comparison, while Washington County sales slipped by nearly 10 percent.
Rounding out the top 5 markets, Saline County sales were down 4.2 percent, but Sebastian County home sales tumbled a dramatic 29 percent from last August’s levels.
Home prices were lower statewide by 2.5 percent. Pulaski County home prices were up 7 percent, while Benton County home prices declined 10.4 percent.
Simmons First reports record third quarter
Simmons First National Corp. announced record third-quarter earnings of $7.7 million, a 17.4 percent increase. The earnings increase was primarily driven by improvement in non-interest income and net interest margin, bank officials said.
“We are very pleased with our earnings, despite the fact that our loan demand remains soft,” said CEO Tommy May. “Low loan demand is not totally unexpected considering the challenges in the economy. Obviously, we are very pleased with the 13 basis point improvement in our net interest margin and the continuation of strong asset quality.”
Home BancShares profits up
Home BancShares, Inc., parent company of Centennial Bank, announced record third-quarter net income of $7.2 million. Profits rose more than 10 percent versus last year’s comparable quarter.
“This was a great quarter for our company, especially considering the weak economy in our Florida market,” said Home BancShares Chairman John Allison.
Bank of the Ozarks net income slips
Bank of the Ozarks reported a lower third-quarter net income of $8.4 million. One year ago, the Little Rock-based bank holding company reported net income of $9 million.
Deposits for Bank of the Ozarks were $2.05 billion at Sept. 30 an 11 percent decrease from $2.3 billion in the previous year’s third quarter.
In September, the bank opened a new office in downtown Little Rock. In the fourth quarter of 2009, Bank of the Ozarks said it expects to open a banking office in Allen, Texas and close a small office in North Little Rock where the leased space is no longer available.
AEDC: New investments up, wages down in 2008
Last year, the Arkansas Economic Development Commission signed incentive contracts with 95 companies that will create nearly 7,000 jobs, according to an annual report provided by the state’s economic development agency.
Total investment for the 95 projects was more than $1.7 billion compared to one year ago when new investments totaled $1.58 billion. The new jobs created by the projects will pay hourly wages of $14.74 on average, a $1.00 decline from last year’s pay average of $15.74 an hour.
The AEDC report also listed preliminary figures for the first four months of 2009. The agency has signed incentive agreements with companies that have pledged to create 4,062 jobs with average hourly wages of $18.52.
Beebe expects dividend from European investment
After an 8-day overseas trade trip, Gov. Mike Beebe told reporters that he met with 10 European companies already invested in Arkansas and with six other companies considering investing in the state.
“I will be disappointed if in the reasonably near future … say the next several months, if we don’t get some positive news about foreign investment in Arkansas,” Beebe said at a Capitol news conference Monday.
