Money Talk: More Congressional Assignments Touch Financial Sector
by January 19, 2015 9:00 am 123 views
Editor’s note: Each Monday, Talk Business & Politics provides “Money Talk,” a wrap-up of banking and financial news in our email newsletter, which you can sign up to receive daily for free here.
MORE CONGRESSIONAL ASSIGNMENTS TOUCH ON FINANCIAL SECTOR
Arkansas’ Congressional delegation received additional committee assignments this past week. Notably, Reps. Rick Crawford and French Hill received two assignments affecting the financial sectors.
Cong. Rick Crawford, R-Jonesboro, is serving on the House agriculture and transportation committees. Crawford is the chairman of the General Farm Commodities and Risk Management subcommittee on the Agriculture committee. The subcommittee works on issues involving the Farm Bill.
Cong. French Hill, R-Little Rock, was named to the House Finance Services Capital Markets and Oversight and Investigations subcommittees.
“I am honored to be named to these two key subcommittees. I look forward to working for solutions that promote economic growth, protect consumer access to capital, enhance transparency and accountability of federal agencies, reduce the regulatory burden created by flawed policies like Dodd-Frank, and protect Arkansans from big-government overreach,” said Hill, who is in his first term. Read more here.
OIL IMPACTING PRODUCER CHAIN
Vanguard neatly summarizes last week’s major economic reports, all of which have a common theme: an impact from lower oil prices.
The Producer Price Index (PPI) in December decreased by 0.3%, seasonally adjusted, over the previous month. A 6.6% drop in the producer energy index was a key contributor to the decline.
The Consumer Price Index (CPI) in December dropped 0.4%, seasonally adjusted, over the previous month, the Labor Department reported. The 4.7% decline in the consumer energy index was its largest since December 2008, while the gasoline index fell 9.4%. Food prices did increase, however, by 0.3%.
Retail sales declined 0.9% from November, according to the Department of Commerce’s advanced monthly sales estimate for December. A 6.5% drop in gasoline station sales contributed to the drag. Other sectors that saw lower sales in December included building material/garden suppliers (down 1.9%), electronics and appliances (down 1.6%), and miscellaneous store retailers.
Year-over-year numbers were primarily positive, however. Overall, retail sales for 2014 were 3.2% higher than for 2013, with auto and motor vehicle dealers seeing the greatest increase (9.8%).
BANK OF THE OZARKS, HOME BANCSHARES POST BIG PROFITS
Bank of the Ozarks reported a 42% increase in its fourth quarter earnings and a 21% jump in its annual net income – a record for the Little Rock-based financial institution. Net income in the fourth quarter was $34.8 million, up from $24.4 million one year ago. For the full year, Bank of the Ozarks reported profits of $118.6 million, an improvement from $91.2 million in 2013.
Home Bancshares, parent company of Centennial Bank, reported fourth quarter net income of $29.9 million, which led to full year earnings of $113.1 million – a 70% increase over the previous year. The Conway-based financial institution also reported diluted earnings per share for the year ended 2014 of $1.70 compared to $1.14 per share for 2013. Simmons First will report earnings on Thursday.
BANKING MOVES
The Little Rock Technology Park announced that Darrin Williams was appointed to the Authority’s Board effective immediately. Williams is the CEO of Arkadelphia-based Southern Bancorp and is a former State Representative from Little Rock. Williams will complete the term of Bob Johnson, who resigned from the Board on November 12, 2014.
There will be a transition at Simmons First National Corp. in its Russellville market later this year. The Pine Bluff-based bank said Ronald “Ron” B. Jackson, Russellville Community Bank Chairman and CEO, will begin the transition of his leadership role to R. Scott Hill, Russellville Community President and Denton E. Tumbleson, Clarksville Community President. The transition will begin on April 1, 2015.
Jackson will remain an active member of the bank and continue to serve as a member of the Loan Review Committee and the Russellville Community Bank Board of Directors.
Hill joined Simmons Bank in 2002 as Russellville Community President, bringing with him 17 years of financial experience. Tumbleson began his financial career in Russellville in 1994, joining Simmons Bank in 1997 as Executive Vice President. He has served as the Clarksville Community President since 2002.