Money Talk: New Greek Bailout Negotiated

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NEW GREEK BAILOUT NEGOTIATED
Despite a public referendum and a Prime Minister elected to end austerity programs, Greece finds itself in a more restrictive position than even a week ago. CNN Money reports:

Europe has offered Greece a new $96 billion bailout after its government agreed to enact deep economic reforms under close supervision by its creditors. The rescue – Greece’s third since 2010 – should secure its place in the euro, for now.

The agreement means the Greek government must now go way beyond a reform proposal it submitted last week, by making much more profound changes to pensions, energy, labor and product markets, and by scaling up a program of privatization. It also has to overhaul its public administration and justice system.

Greece is bowing to pressure to borrow money from its only potential lenders in the wake of a free-falling economy and deteriorating financial and political environment. Read more here.

BANK OF THE OZARKS TO KICK-OFF 2Q EARNINGS PERIOD FOR ARKANSAS STOCKS
Little Rock’s Bank of the Ozarks will kick off the second quarter earnings period for Arkansas’ publicly traded concerns Monday (July 13) when the regional banking and financial concern is expected to release its quarterly results after the close of market.

During the second quarter, the Little Rock-based financial holding company joined the Standard & Poor’s MidCap 400 and acquired the Bank of the Carolinas Corp. in early May in an all-stock deal worth $65 million – its thirteenth acquisition since March 2010. Following the takeover of the small North Carolina bank’s eight offices between Charlotte and Winston-Salem, the fast-growing Arkansas bank’s portfolio will include 24 banking locations in that state.

Bank of the Ozarks is expected to report second quarter earnings of 51 cents per share, according to a survey of analysts by Thomson Reuters. Still, the Little Rock bank’s shares have been downgraded by four Wall Street analysts over the past two weeks from “buy” to “hold” or market perform.

Lowell-based J.B. Hunt Transport Services and Home Bancshares of Conway are also expected to release their second quarter financial statements later this week.

FEDERAL RESERVE BEGINS CENSUS OF U.S. FINANCE COMPANIES
The Federal Reserve System recently began its 2015 Census of Finance Companies as part of a larger effort to paint a complete and continuing picture of this important sector of the U.S. economy.

The assets and liabilities of finance companies have been surveyed by the Federal Reserve at roughly five-year intervals since 1955. The data collected provide a benchmark for the System’s monthly report on the outstanding accounts receivable of finance companies and provide a comprehensive update on these companies’ sources of funds. This information in turn becomes an important input to the estimates of total consumer credit and the Financial Accounts of the United States.

“The Federal Reserve System conducts this census to collect basic information on the types and volume of financing provided by nonbank financial institutions to the U.S. economy,” Federal Reserve Chair Janet L. Yellen said in a letter to approximately 37,000 companies urging their participation.

Individual responses will be kept confidential. In addition to the Chair’s letter, more information about the census is available here.

IPO MARKET GAINS MOMENTUM IN SECOND QUARTER
The U.S. IPO market came back to life in the second quarter of 2015, surging 83% in volume and 111% in proceeds raised, compared to the first quarter of 2015, according to IPO Watch, a quarterly survey by PwC US.

There were 75 IPOs completed in the second quarter of 2015 which raised more than $13 billion, a significant increase over the first quarter’s 41 IPOs and $6.2 billion in proceeds. The second quarter’s volume was generally consistent with 2013 and 2014, despite slowing economic growth forecasts in the U.S. and the uncertain interest rate environment. IPOs continued to attract investors across a broad range of sectors, resulting in 2015 having a high proportion of IPOs upsizing and pricing above or at the high end of their ranges.

The market came close to meeting the record high volume of the second quarter of 2014 – which was the strongest quarter for IPOs since the financial crisis – with a surge of activity seen late in the quarter. With 36 IPOs in the final month of the quarter, this represented the most June IPOs since the technology IPO boom in 1999, and if it were not for the slow start in April the entire second quarter could have reached a new IPO post-boom record.

The healthcare industry continued to lead IPO market activity with 31 IPOs or 41% of total volume – the high demand for these smaller biotechnology and biopharmaceutical IPOs showcases the interest among IPO investors for high-growth companies. On a total proceeds basis, the second quarter was generally well-diversified, with the energy sector raising the highest proceeds with $2.7 billion from only six IPOs as energy prices slowly show signs of recovery.

HOME BANCSHARES ANNOUNCES KEY MANAGEMENT CHANGES
Home BancShares Inc., recently announced the election of Brian Davis as CFO, Treasurer and Director of both the bank holding company and its wholly-owned subsidiary, Centennial Bank.

He replaces Randy Mayor, who is stepping down after service 16 years with the Central Arkansas banking group, as well as his position as a director of both Home Bancshares and Centennial boards. Davis previously served as Chief Accounting Officer and Investor Relations officer for the bank.

Additionally, the bank announced that Jennifer Floyd will succeed Davis as the Chief Accounting Officer and Investor Relations officer of Home Bancshares. Floyd, who joined the Conway bank after 17 years with Deloitte & Touche LLP, was also elected to the position of Chief Accounting Officer of Centennial.

FEDERAL AGENCIES RELEASE LIST OF DISTRESSED, RURAL MIDDLE-INCOME GEOGRAPHIES
The Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation have released the list of distressed or underserved non-metropolitan middle-income geographic areas, which are eligible for consideration to receive Community Reinvestment Act (CRA) funds for community development.

The communities are designated by the agencies in accordance with their CRA regulations. The criteria reflect local economic conditions, including unemployment, poverty, and population changes. The annual list includes a number of Arkansas counties that are eligible for CRA consideration.