First Security’s Adam Rutledge on Emma Avenue renovation, NWA real estate market

FinanceNews BriefsNorthwest Arkansas

by Roby Brock ([email protected]) ago 0 views 

First Security Bank recently held an open house for its newly renovated branch office in downtown Springdale on Emma Avenue. The building has a special historical connection for the bank, according to Adam Rutledge, Northwest Arkansas market president for FSB.

Rutledge said his father, First Security Bank CEO Reynie Rutledge, used to work at First State Bank on Emma before he had the opportunity to purchase Searcy-based First Security in 1977. In 2003, the Rutledge family bought First State competitor First National Bank of Springdale on Emma, the home of the current First Security location that was just renovated. It was a cornerstone for First Security’s entry in the market.

Several years ago, First Security sold portions of the block where the bank branch resides as they didn’t need as much square footage. The new investors have led to restaurants like Gaskins on Emma and Onyx Coffee, which is remodeling its Emma Avenue location.

INTEREST RATE ENVIRONMENT
Rutledge offered insight on the economy in Northwest Arkansas in an interview celebrating the bank’s renovation. He said it’s hard to see any major economic event slowing down regional momentum.

“Most of the banks, if not all, are in a really great position to come alongside our borrowers and look at new projects and fund those new projects,” he said.

“One thing that is interesting is the amount of out-of-state investment. Just drive around half a day or a full day and look at different projects going up and then try to identify who that is and who’s doing it, especially on a larger scale project,” said Rutledge. “It’s amazing the out-of-state interest in real estate development in Northwest Arkansas. I only see that continuing as our region is being recognized nationwide as a great place for investment opportunity.”

The Federal Reserve Bank’s interest rate reductions have helped unclog some of the pipeline of projects that have been in limbo due to high rates imposed by the Feds to bring inflation in check.

“With the pullback that’s happened the last couple of quarters, it has definitely allowed some projects that were kind of on the sideline waiting to see what happened, both with interest rates and the election, to move forward,” he noted.

Future interest rate reductions will only increase the projects “hitting the streets,” Rutledge said.