Burlington-based MidCarolina Financial Corp., parent company of MidCarolina Bank, on Friday reported net income of $721,000, or 13 cents per share, during the second quarter. That’s up a little more than 1 percent from earnings of $713,000, or 12 cents per share, during the same period a year ago.
Total assets rose to $561 million from $549 million last year. Nonperforming assets rose to 2.65 percent of total assets, up from 1.27 percent during the second quarter a year ago.
“The second quarter of 2010 showed quarterly earnings improvement over the past several quarters. We are pleased with that trend, as well as our strong capital position and efficiency trends,” said Charles T no fax payday loan. Canaday Jr., president and CEO of MidCarolina. “We have focused on these areas given the ongoing financial and economic uncertainties, both in our local markets and beyond.”
Canaday noted that some housing and commercial real estate borrowers continue to have difficulty servicing their debt. The company increased its allowance for loan losses to $8.5 million in the second quarter, up 32 percent from $6.5 million during the year prior.
It’s the best of times and the worst of times for iPhone 4 case makers.
As a remedy for its so-called "death grip" problem on the new device, Apple announced on Friday that it would send a free case to every iPhone 4 purchaser who wants one, at least until Sept. 30. Sounds like a pretty good deal for a company like Forward Industries (FORD), which manufacturers the Apple-branded "bumper" case for the new iPhone. Forward’s stock shot up 22% right after Apple CEO Steve Jobs’ announcement.
The freebie deal presents an opportunity for other case manufacturers as well: Jobs said his company can’t make enough bumper cases to satisfy anticipated demand, so Apple will also allow customers to get a free third-party case instead. To do this, Apple will post a list of cases to choose from on its website beginning next week, and it will deliver them to customers free of charge.
"There’s a tremendous upside for case manufacturers," said Francis Sideco, principal wireless analyst with supply chain analysis firm iSuppli. "Whatever Apple pays them for the cases, it’s going to be what the manufacturers were going to get from Apple anyway. And the announcement gives them much higher penetration than they would have had before."
But Forward Industries’ shares finished the day essentially flat, at $3.75 a share. Another big iPhone case maker, Zagg Inc. (ZAGG), closed down 5% after rising 5% on the announcement. Why the sudden drop back?
That’s where the "worst of times" comes into play. Jobs mentioned Friday that just 20% of iPhone 4 users have picked up a bumper case so far, despite all of the hoopla about how the case solves the phone’s dropped-signal issue. That’s far fewer than the 80% of iPhone 3GS users who bought a case soon after the phone’s release last year.
Jobs’ said his theory about why fewer customers are buying cases is that people love the look and feel of the iPhone 4 so much they don’t want to ruin it with a rubbery bumper.
Illustrating the point: During a Q&A session at Friday event, veteran Apple chronicler John Gruber asked Jobs if he uses a case. Jobs and two other Apple executives simultaneously whipped out their bare, bumper-free iPhones.
So even if many users will want a case, it’s unlikely that every single iPhone customer would order one.
"The signal issue is a relatively sporadic problem," said Sideco, noting that Jobs said just 1.7% of customers have returned their iPhone 4s and 0.55% have registered complaints. "It wouldn’t be 100% of people who get a case."
Sideco said he still expects the number of customers ordering cases to rise well above 20% after Apple’s offer goes into effect next week. Many people who balked at the bumpers’ $29 price tag will be happy to take a free case, even if they’re on the fence about actually using it.
The offer could be an expensive proposition for Apple, though predicting how much the company will spend is like trying to hit a moving target.
ISuppli expects 8 million to 10 million iPhones will be sold between the iPhone 4’s June 24 launch day and September 30. The cases that Apple will offer on its website will likely retail at $30, though analysts assume that Apple pays far, far less for each case than the retail price.
Shares of Apple (AAPL, Fortune 500) fell less than 1% to close the day after rising a bit more than 1% after its announcement.
First Fidelity Bank is acquiring deposits previously held by the Arizona operations of Home National Bank.
Oklahoma-based RCB Bank acquired all 15 branches of Home National Bank from the FDIC on July 9.
Under the purchase contract with RCB, First Fidelity Bank will expand its Phoenix-area market presence with the acquisition of approximately $80 million in deposits. First Fidelity says the transaction will close in roughly 90 days, subject to regulatory approval. Previous HNB Phoenix branch locations will operate under the RCB Bank name until then.
Oklahoma City-based First Fidelity is a family-owned, privately held full-service financial institution founded 90 years ago paperless payday loans. It expanded into the Arizona market with a loan production office in 2003. It has since grown to four Valley-area offices through a 2007 merger with the former Western Security Bank.
First Fidelity has 28 offices serving the Oklahoma City, Tulsa, Phoenix and Scottsdale markets. The bank has total assets of more than $1 billion.
For more: www.ffb.com.
Energy Holdings International Inc. has signed a memorandum of understanding to develop a 200 megawatt, $400 million power plant in Bangladesh.
Through a wholly owned subsidiary, EHII signed the deal with the Bangladesh Power Development Board for a single cycle electrical power generation plant with room to expand to a 450 MW combined cycle facility same day payday loans.
Houston-based EHII (NYSE: EGYH) is currently talking with a handful of engineering, procurement and construction contractors to build the plant while EHII will serve as the independent power producer.
Bexar County is planning to sell $155 million worth of bonds and certificates of obligation later this month.
The county will sell $25 million in limited tax general obligation bonds, $95 million in certificates of obligation and $35 million in certificates of obligation backed by Build America Bonds. The debt is slated to be sold during the week of July 26.
Fitch Ratings has assigned an ‘AAA’ rating to the bonds and certificates. Fitch has also affirmed its ‘AAA’ rating on Bexar County’s $728 million in unlimited tax and limited tax bonds outstanding. The rating outlook is stable.
Fitch assigned strong ratings to the debt offering because of the county’s prudent stewardship of funds during the current economic slowdown no checking account payday advance. Fitch also noted that the county keeps a pool of money in reserve due to its 10 percent fund-balance policy, that it has steady population growth, and that it has robust military, health care, higher education, professional business and service sectors.
The current offerings will finance public safety, park, parking and street improvements. In addition, the county is planning to issue up to $680 million in certificates of obligation over a 10-year period for drainage improvements planned in conjunction with the City of San Antonio, the San Antonio River Authority and other regional partners.
Novartis’ acquisition of Chapel Hill-based Oriel Therapeutics in April was one of only eight M&A deals in the biotech, pharma sector nationwide in the second quarter of 2010, according to a new report by VentureDeal LLC.
The Swiss giant purchased the venture-backed startup for its asthma treatments. Meanwhile, nationally, the number of second quarter deals declined by 20 percent from the first quarter, the report says. Of the eight mergers in the sector, totaling $74 million, only two were biotechs, and six were medical device companies.
Financial details of the Oriel transaction were not released payday loans.
Activity was even slower in the Internet e-commerce space, where M&A activity – 31 firms were acquired for $564 million – declined by 38 percent compared with the first quarter.
M&A activity for telecom, wireless, mobile and communications companies declined markedly from the previous quarter, with 54 percent fewer companies being acquired compared to the first quarter, the report says.
Tiny Maywood, Calif., laid off every single one of its city employees on Wednesday.
But that doesn’t mean the city is closing up shop. City Hall will still be open, as will Maywood’s park and recreation center. Police will continue to patrol the streets.
They just won’t be staffed by Maywood employees. The city can’t have any staff because it can’t get liability or worker’s compensation insurance for them. Maywood’s carrier, the California Joint Powers Insurance Authority, dropped it earlier this month in part because of several police-related claims.
Instead of declaring bankruptcy, Maywood officials decided to outsource all city functions. The Los Angeles County Sheriff’s Department will patrol the streets, while the neighboring city of Bell will cover other city functions, such as staffing City Hall.
Maywood already relies on contract workers and outsources many city services. The director of parks and recreation, for instance, is a contractor, and the city’s lights, landscaping and street sweeping are handled by private companies. Los Angeles County maintains the library and fire department.
Some of Maywood’s 96 employees — which include 41 police officers — will also continue as contract workers. Elected officials, such as the city council and the city clerk, will remain on the job in the 1.5-square-mile municipality, which has about 45,000 residents.
"Odds are residents will see the same faces as in years past, just under a different administrative process," said Magdalena Prado, the city’s community relations director, who is a contract worker and is keeping her post.
Maywood is billing itself as the first American city to outsource all of its city services. In an odd twist, officials say it can provide even better services because the shift will help it save money and close a $450,000 shortfall in its $10 million general fund budget.
For instance, the contract with the sheriff’s department costs about half of the more than $7 million spent annually to maintain the Maywood police department, Prado said check cash advance. And patrols will be increased.
"Our community will continue to receive quality services," Mayor Ana Rosa Riso said in a statement. "Maywood’s streets will continue to be swept, our summer park programs will continue to operate and our waste will be collected and hauled as scheduled."
Stressed cities
A growing number of cities are looking to contract out or share services regionally as the economic downturn takes its toll on municipal budgets.
"Everything is on the table," said Chris Hoene, research director at the National League of Cities. "The fiscal stress cities are feeling mean they are looking for alternative options to deliver services that cost less money."
Some 7 in 10 city officials said they are cutting personnel to balances their budgets, while another 68% are holding off on capital projects, according to a survey the league did in May. More than half of respondents say they will make to further slash city services next year if taxes or fees are not raised.
Not everyone is distressed by Maywood’s unusual plan for providing city services. While Jesus Padilla feels sorry for the workers being affected, he thinks things might improve. He’s made lots of calls to the county sheriff’s department when he worked as a security guard and said officers always responded promptly.
"The council made the best decision it could," said Padilla, a local activist who has lived in Maywood for more than 30 years. "It’s going to be good for the city and the citizens."
For at least 30 cash-strapped states counting on federal stimulus money, the news was a stunning blow: A deficit-weary Congress had rejected billions in additional aid, forcing lawmakers into a mad scramble to balance their budgets.
Now, with a new fiscal year just days away in most states, many governors are proposing to make up for the shortfall with tax increases, cuts in essential services and layoffs of thousands of public employees.
The federal stimulus program enacted last year is set to expire in December. Much of the money goes to states to provide unemployment insurance and to help offset cuts to education, health care and public safety brought on by the recession.
Congress was poised to extend some funding to states through June 2011, including $35.5 billion for unemployment benefits and $16 billion for Medicaid. But the measure died in the Senate earlier this month, blowing a hole in the states’ budgets and bouncing thousands of unemployed workers off the rolls.
The stimulus money represents just a fraction of the help states typically receive from the federal government, but it’s the kind of targeted relief states count on during a poor economy, when revenue is falling.
Without the extra money from Washington, states will be forced to divert cash from other programs to shore up Medicaid, which has swelled to a record enrollment during the economic downturn empire payday loans.
The legislatures in several states have already adjourned for the year, but some will have to return to revise their budgets if the expected federal money does not materialize.
A few states that counted on additional stimulus money to balance their budgets drafted contingency plans in case the money did not come through.
In Massachusetts, the loss of an estimated $687 million in federal funds forced budget negotiators to come up with two versions of the state budget — one that included the money and one that did not.
Some states, unwilling to count on the federal assistance, crafted budgets that did not depend on extra assistance from Washington at all.
"We assumed conservatively that there would not be a bonus check," Indiana Gov. Mitch Daniels told The Associated Press.
"It would have never entered our mind to put funny money like that into the budget."
Nearly 200,000 homebuyers could lose out on the $8,000 tax credit because they can’t get deals done by the June 30 deadline.
What did they do wrong? They tried to take advantage of the distressed properties flooding the market.
For example, many are trying to take advantage of short sales, buying from sellers who owe more on their mortgage than the home is worth. In these deals, the lender has to agree to forgive the remaining debt, and that can take time — at least two to three months from the time an offer is made until lender approval. And that assumes a relatively clean deal, in which there’s no second mortgage. If there are any complications, expect six months or more.
"The lenders have improved but they’re still terrible," said Richard Smith, CEO of Realogy, the parent company of several franchise real estate brokers. "We started telling buyers back in January that short sales may not close in time for the credit."
Another factor slowing down closings is what gets found during inspections. The average foreclosed property comes with more maintenance and repair problems than conventional sales. Fixing those can take time, said Rick Davidson, CEO of Century 21.
Meanwhile, all deals these days are at risk because of appraisal issues. With home prices still shaky, mortgage lenders have gotten strict about making sure that the sale price is not inflated.
"New mortgage money is so concerned about pricing, they require another appraisal a couple weeks before closing," said Smith. "They’re consumed with value." Lining up an appraiser and getting a report can add days, even weeks to the time it takes to close.
Congress is mulling an extension that would allow people to finish their transactions as late as Sept. 30 and still claim the credit — as long as they signed sales contracts before the original April 30 deadline.
"Brokers and agents are concerned that if Congress does not pass an extension, many of these homes will end up back on the market, defeating the whole purpose and benefit of the tax credit," said Tara-Nicholle Nelson, a spokeswoman for real estate website Trulia.
But the extension is hardly a sure thing, according to Regan Lachapelle, deputy communications director for Senate Majority Leader Harry Reid, who introduced the measure. "We are still working to get the votes we need," said Lachapelle.
Buffalo General Hospital has received state approval for an $8.4 million relocation project of its MRI and CT services.
The State Department of Health okayed the project in mid-May, which calls for shifting all of its MRI and CT services to one central site. The hospital plans to move the equipment and services from the second floor of the A and B buildings into the sub-basement of A building.
The plan better realigns imaging services and will allow improved access to the heart-vascular center under construction next door. The project also opens up space that will likely see future use as clinical services.
Completion is slated for this fall.
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