United Community Banks CEO to retire
United Community Banks, Inc. said Monday that Jimmy Tallent, the bank’s CEO for nearly 35 years who built the Blairsville, Ga.-based bank into a $12.3 billion banking giant, will retire from his current position effective June 30.
Tallent will become executive chairman once he steps down as CEO, focusing on board governance, strategic planning and corporate development. Lynn Harton, president and CEO of United’s banking subsidiary, will become CEO of United.
Under Tallent, United grew from a single location with $40 million in assets to a four-state regional community bank with $12.3 billion in assets.
Harton was named CEO of United Community Bank in August 2017 and was elected to the board of directors in February 2015. Prior to joining United in 2012, Harton served in executive capacities with various financial institutions, including The South Financial Group and both Regions Financial Corporation and Union Planters Corp.
Apartment costs up, but below median
Rents in Chattanooga rose 3.4 percent over the past year, boosting the median rent for a two-bedroom apartment to $900 a month, according to a survey by Apartment List released Monday.
Despite the increase, Chattannooga’s median rent was still 23.1 per- cent below the U.S. median rent of $1,170 per month of a two- beroom unit.
Factory growth slips in March
U.S. manufacturers said they expanded at a slower pace in March, with many factories saying they’re having a tough time getting supplies in order to meet demand from customers.
The Institute for Supply Management, a trade group of purchasing managers, reported Monday that its manufacturing index slipped to 59.3 last month from February’s reading of 60.8, which had been the highest since 2004. Any score above 50 signals growth.
“The details of the March data point to the steady growth in the factory sector seen over the past several quarters being sustained,” said Richard Moody, the chief economist at Regions Financial.
The categories of new orders, production and employment each fell in March for manufacturers, even though the underlying numbers remained positive. But companies surveyed for the index highlighted another issue: a shortage of raw materials that is causing them to lose out on possible sales.
Multiple companies also said the introduction of steel and aluminum tariffs by President Donald Trump was causing concerns about rising prices. Some companies bought up the metals ahead of their implementation, driving up costs. Trump is trying to support U.S. steel and aluminum mills, though his tariffs include exemptions for allies such as Canada and Mexico.
Facebook CEO defends business model
NEW YORK – The CEO of Facebook is defending its advertising-supported business model.
Mark Zuckerberg’s defense comes after Apple CEO Tim Cook said his company wouldn’t be in Facebook’s situation because Apple doesn’t sell ads based on customer data the way Facebook does. Zuckerberg responded Monday that an advertising-supported business model is the only way that the service can survive because not everyone would be able to pay for Facebook if it charged a fee.
He says the idea that Facebook doesn’t care about its customers is “extremely glib.”
Facebook is facing scrutiny over its data collection following allegations that political consulting firm Cambridge Analytica obtained data on tens of millions of Facebook users to try to influence elections.
Zuckerberg spoke with Vox , while Cook talked with Recode last week.
Construction spending grows 0.1 percent
Spending on U.S. construction projects ticked up a mere 0.1 percent in February from the prior month, a sign a growing economy is doing little to spur a more rapid pace for building homes, hospitals and highways.
The Commerce Department said construction spending came in at a seasonally adjusted annual rate of $1.27 trillion. The lower unemployment rate and solid business and consumer confidence has supported an increase in hotel and office construction, but spending on the power grid and roadways has slipped. Construction spending over the past 12 months is up just 3 percent before adjusting for inflation.
Residential construction, the largest single category, rose just 0.1 percent in February. Some of the sluggishness in February was due to a 2.1 percent drop in government-funded construction.