SAN FRANCISCO — Apple’s stock slipped below $500 for the first time in 11 months on Monday as investors reacted to reports signaling the company’s latest iPhone is falling further behind a slew of sleek alternatives running Google’s Android software.

The latest indication that Apple, the world’s most valuable company, is seeing sluggish demand for its iPhone 5 emerged in separate stories published Monday in the Japanese newspaper Nikkei and The Wall Street Journal. Both publications cited unnamed people familiar with the situation saying Apple has dramatically reduced its orders for the parts needed to build the newest iPhone because the device isn’t selling as well as the company hoped.

The adjustment means Apple will buy about half as many display screens for the iPhone as management originally planned for the opening three months of the year, according to the newspapers.

Apple Inc., which is based in Cupertino, Calif., declined to comment Monday. Spokeswoman Natalie Kerris said Apple executives would share their views on market conditions Jan. 23 when the company is scheduled to release its financial results for the final three months of 2011. The period covers the first full quarter that the iPhone 5 was on sale.

Although Apple hailed the iPhone 5 as the best version yet of a product that has revolutionized the telecommunications and computing industry, the company’s stock has wilted since the device hit the market.

After peaking at $702.41 on the day of the iPhone 5’s Sept. 21 release, Apple’s stock has plunged nearly 30 percent. The shares fell $18.55, or 3.6 percent, to close Monday’s regular trading at $501.75, dragging the company’s market value nearly $190 billion below where it stood in late September. The stock traded at $498.51 earlier in the day, its lowest price since last February.

The stock’s decline hasn’t been entirely caused by concerns about the iPhone 5’s sales performance. Industry analysts are also worried about the recent introduction of a smaller, less expensive iPad cutting into the company’s profits.

But the biggest fears hover around the iPhone because it has become Apple’s most valuable product since the company’s late CEO, Steve Jobs, unveiled the first model in 2007. Apple has sold more than 271 million of the devices since then, and in the company’s last fiscal year ending in September, the iPhone generated $80 billion in sales to account for more than half of the company’s total revenue.

But Apple’s upgrades of the iPhone in the past two years have disappointed gadget lovers who have been clamoring for Apple to do more to stay in front of device makers relying on the free Android software made by Google Inc. For instance, there were high hopes for a larger iPhone screen with the release of the 2011 model, but Apple waited until last September to take that leap. And when Apple moved to a larger display screen with the iPhone 5, it didn’t include a special chip to enable users to make mobile payments by tapping the handset on another device at the checkout stand. Such a mobile payment feature is available on some Android phones.

Finally, Apple has insisted that wireless carriers subsidize so much of the iPhone’s cost in exchange for customers’ two-year commitments on data plans that the carriers make little or no money by selling the devices. That has prompted more wireless carriers to tout less expensive Android phones in their stores, undercutting the demand for iPhones, said Darren Hayes, who has been studying the shifting market conditions as chairman of the computing systems program at Pace University in New York.

Through the third quarter of last year, Android devices represented 75 percent of smartphone shipments worldwide according to the research firm International Data Corp. That was up from 58 percent at the same point 2011. Meanwhile, Apple’s share of worldwide smartphone shipments has fallen from a peak of 23 percent in the fourth quarter of 2011 to 15 percent in the third quarter of last year.

Samsung Electronics, in particular, has been benefiting from the growing popularity of its Android-powered phones, led by its Galaxy S line. The company said Monday that it sold more than 100 million Galaxy S phones in less than three years. It took the iPhone nearly four years to reach that milestone.

“This is a real wake-up call for Apple,” Hayes said. “They need to be more flexible in how they do things.” Among other things, Hayes thinks Apple may have to reduce the financial burden on wireless carriers selling the iPhone and spend more money advertising the devices, especially with the recent wave of phones running on Microsoft Corp.’s Windows software. Apple’s efforts to sell more iPhones to companies also could be short-circuited if Research in Motion Ltd.’s upcoming release of a revamped BlackBerry proves to be a hit. The BlackBerry is due out Jan. 30.

In an attempt to regain its competitive edge, Apple already is considering the release of a less expensive version of the iPhone made of cheaper parts to boost sales in less affluent countries, according to a report last week in The Wall Street Journal. The company so far hasn’t commented on that speculation, either. The least expensive iPhone 5 without a wireless contract sells for $649. With the subsidy included with a two-year wireless service contract, the iPhone 5 sells for as little as $199.

Even as it loses ground to Android products, the iPhone remains a solid seller. Some analysts believe Apple sold more than 50 million iPhones in its last quarter ending in December, which would be far the most units that the company has ever shipped during any previous three-month period.

What’s more, the iPhone 5 got off to a torrid start in China, where Apple expects to eventually sell more devices than it does in the U.S. Apple said it sold more than two million iPhone 5s in the first three days after its debut in China last month.

NEW YORK — Coca-Cola became one of the world’s most powerful brands by equating its soft drinks with happiness. Now it’s taking to the airwaves for the first time to address a growing cloud over the industry: obesity.

The Atlanta-based company on Monday will begin airing a two-minute spot during the highest-rated shows on CNN, Fox News and MSNBC in hopes of flexing its marketing muscle in the debate over sodas and their impact on public health. The ad lays out Coca-Cola’s record of providing drinks with fewer calories over the years and notes that weight gain is the result of consuming too many calories of any kind — not just soda.

The company declined to say how much it was spending on the commercials, which it started putting together last summer.

For Coca-Cola, the world’s No. 1 beverage company, the ads reflect the mounting pressures on the broader industry. Later this year, New York City is set to put into effect a first-in-the-nation cap on the size of soft drinks sold at restaurants, movie theaters, sports arenas and other venues. The mayor of Cambridge, Mass., has already proposed a similar measure, saying she was inspired by New York’s move.

Recent studies have also suggested that sugary drinks cause people to pack on the pounds, independent of other behavior. A decades-long study involving more than 33,000 Americans, for example, suggested that drinking sugary beverages interacts with genes that affect weight and amplifies a person’s risk of obesity beyond what it would be from heredity alone.

Mike Jacobson, executive director for the Center for Science in the Public Interest, was skeptical about the intent behind Coca-Cola’s ads and said that if the company was serious about helping reduce obesity, it would stop fighting soda taxes.

“It looks like a page out of damage control 101,” he said. “They’re trying to disarm the public.”

The Center for Science in the Public Interest has been critical of the soft drink industry and last year released a video parodying Coke’s famous polar bears becoming plagued with diabetes and other health problems from drinking too much soda.

Coca-Cola said its ads aren’t a reaction to negative public sentiment, however. Instead, the idea is to raise awareness about lower-calorie drinks and what it plans to do in coming months, said Stuart Kronauge, general manager of sparkling beverages for Coca-Cola North America.

She said, “There’s an important conversation going on about obesity out there, and we want to be a part of the conversation.”

In the ad, a narrator notes that obesity “concerns all of us” but that people can make a difference when they “come together.” The spot was produced by Brighthouse and Citizen2 and is intended to reflect Coca-Cola’s corporate responsibility to cable news viewers.

Another ad, which will run later this week during “American Idol” and before the Super Bowl, is much more reminiscent of catchy, upbeat advertising people have come to expect from Coca-Cola. It features a montage of activities that add up to burning off the “140 happy calories” in a can of Coke: walking a dog, dancing, sharing a laugh with friends and doing a victory dance after bowling a strike.

The 30-second ad, a version of which ran in Brazil last month, is intended to address confusion about the number of calories in soda, said Diana Garza Ciarlante, a spokeswoman for Coca-Cola Co. She said the company’s consumer research showed people thought there were as many as 900 calories in a can of soda.

When talking about calories and weight gain, Garza Ciarlante noted that the company had to be careful with the ads to remain consistent with its brand voice and avoid sounding “preachy.”

Coca-Cola declined to give details on what it plans for the year ahead. But among the options under consideration is putting the amount of activity needed to burn off the calories in a drink on cans and bottles.

The company noted it has already made several moves to help customers make better choices, such as putting calorie counts on the front of its cans and bottles in the U.S. Last year, it also started posting calorie information on its vending machines ahead of a regulation that will require soda companies to do so by 2014.

Public concern over the calories in soda is apparent in Coca-Cola’s changing business. In North America, all the growth in its soda business over the past 15 years has come from low- and no-calorie drinks, such as Coke Zero. Diet sodas now account for nearly a third of its sales in the U.S. and Canada. Other beverages such as sports drinks and bottled water are also fueling growth.

Even with the growing popularity of diet sodas, however, overall soda consumption in the U.S. has declined steadily since 1998, according to the industry tracker Beverage Digest.

Toyota has once again dethroned General Motors as the world’s top-selling automaker.

The Japanese company sold 9.7 million cars and trucks worldwide in 2012, although it’s still counting. GM sold 9.29 million.

Both companies saw higher sales, but Toyota’s growth was far larger as it rolled out new versions of popular models like the Camry. GM executives promised sales growth this year, especially in the U.S. Both companies say publicly that they don’t care about who wins, but concede that the crown is an important morale booster for employees.

GM was the top-selling carmaker for more than seven decades before losing the title to Toyota in 2008. But GM retook the sales crown in 2011 when Toyota’s factories were slowed by an earthquake and tsunami in Japan. The disaster left Toyota dealers with few cars to sell. The company has since recovered.

Toyota’s comeback from the earthquake, and flooding in Thailand, is only part of the story, says Jeff Schuster, senior vice president of forecasting for LMC Automotive, a Detroit-area industry forecasting firm. The company also has freshened up its stale midsize sedan, the Camry, the top-selling car in the United States.

GM’s global sales rose 2.9 percent last year, it announced Monday at the North American International Auto Show in Detroit. Toyota sales rose 22 percent.

Schuster expects Toyota to keep the lead over GM this year as it launches a new Corolla.

“I think that’s going to be enough to keep them in their position,” he says.

Toyota builds 70 percent of the cars it sells in the U.S. in North America, including the Corolla.

GM is also contending with a stronger Volkswagen. It narrowly edged out the fast-growing German company for second place in 2012. VW sold a record 9.1 million vehicles.

Volkswagen, with big sellers like the Passat midsize sedan and Jetta compact, closed in on GM with an 11 percent sales increase across the globe. The United States, where VW Group sales rose 34 percent, led the way.

Schuster expects GM to hold off Volkswagen in 2013. That’s because VW has more of a presence in Europe, where sales are falling as the region struggles with high unemployment and weak economies.

Local gas prices drop slightly

Average retail gasoline prices in Savannah fell 0.9 cents a gallon last week to $3.38 a gallon Sunday, according to GasBuddy’s daily survey of 262 gas outlets in Savannah.

The national average fell 0.6 cents a gallon to $3.26, according to gasoline price website GasBuddy.com.

Prices Sunday were 2.1 cents a gallon higher than one year ago and are 14.0 cents a gallon higher than a month ago. The national average has decreased 1.4 cents a gallon during the last month and stands 8.7 cents lower than a year ago.

“It appears that this year there will be little change in gas prices between Christmas and mid-January, something that has only happened one out of the last seven years,” said GasBuddy.com Senior Petroleum Analyst Patrick DeHaan. “Gasoline inventories have rebounded sharply in the past several weeks ... It’s hard for prices to rally with the monster increases in supply we’ve been seeing.”

Real estate agent opens company

HILTON HEAD ISLAND, S.C. — Longtime real estate agent Robbie Bunting recently launched a new real estate business, Hilton Head Properties at 12 New Orleans Road, across U.S. 278 from the Village of Wexford.

Bunting, who spent 26 years licensed with Dunes Marketing Group, begins the new venture with Realtor Jane Hyers. They have worked together for more than eight years.

Hilton Head Properties represents luxury homes, villas and home sites on Hilton Head, in Bluffton and the Daufuskie Island area.

For more information, call 843-785-7111 or email Info@HiltonHeadProperties.biz.

Retail scholarship winners include Rincon student

A Georgia Southern University student from Rincon is among winners of the annual Aspire2Retail Intercollegiate Challenge sponsored by the NRF Foundation and American Express.

The competition engages university students in a competitive, collaborative role play that involves implementing a multi-tiered business strategy.

This year, students had to describe all aspects of showrooming and outline the threats and opportunities that come with it. Showrooming is described as the practice of shoppers comparing retailers’ store prices to other companies’ online prices and choosing to purchase the item online from a different company.

The winning team included Reannah Haselden of Rincon along with students from Florida State University, the University of Florida, University of Michigan and University of Wisconsin-Madison.

Each student will receive a scholarship worth $2,500 along with a complimentary registration to Retail’s BIG Show in New York City, where they were scheduled to present their award-winning business plan on Monday during a session titled “Showrooming: An Opportunity or a Threat?”

New mortgage rules impact mixed locally

By Adam Van Brimmer

912-652-0362

adam.vanbrimmer@savannahnow.com

Mortgage mania petered out on its own with the housing bust of the last few years.

The Consumer Financial Protection Bureau’s mortgage guidelines, released last week, are tailored to prevent such a fever from gripping lenders and consumers ever again.

The CFPB rules, which take effect next January, outlaw most of the exotic loan products and unscrupulous processes that contributed to nearly four million mortgage defaults since September 2008. The CFPB is a federal agency founded in 2010 as part of the Dodd-Frank financial overhaul.

The rules ban high-cost mortgage products such as interest-only loans and those in which the principal balance grows over time, known as negative amortization loans. The CFPB also placed limits on products with large, lump sum payments due at the end of a term, known as balloon loans, and on repayment standards for adjustable-rate mortgages.

Lenders also received direction on the underwriting standards and closing-cost fees. The CFPB defined what constitutes a “qualified mortgage” and limited lender liability on loans that meet that standard.

Local residential real estate insiders applauded the moves, although all compared the CFPB to the farmer who closes the barn door after the horse has already escaped.

“This is not a look back or a look at what’s going on now but what could go on in the future,” said Ed Sibbald with Georgia Southern University’s Center for Excellence in Financial Services. “Nobody is making these ninja loans anymore. Nobody is handing mortgages out to consumers who can’t verify their income.

“This is to protect future consumers from being as stupid about things as consumers were a decade ago.”

Borrower debt ceiling

The CFPB’s mortgage reform efforts center on an “ability-to-repay” standard.

Lenders must review eight areas of a potential borrower’s finances. The exam includes income, employment status and debt obligations, among other things, and lenders must verify the information through third parties, such as the Internal Revenue Service, credit bureaus and the applicant’s employer.

To receive the “qualified mortgage” designation, the potential borrower’s monthly debt, calculated with the mortgage payment included, must not exceed 43 percent of gross monthly income.

But the 43 percent threshold is rarely tested nowadays, according to lenders. Wells Fargo, the nation’s largest mortgage underwriter, uses a 36 percent debt-to-income ratio as its rule of thumb. Another large mortgage lender locally, SunTrust, has an unofficial cap of 40 percent.

The CFPB estimates nearly 75 percent of mortgages written in 2011 met the 43 percent standard. Another 20 percent met a second test, which allows loans that exceed the 43 percent threshold but still receive approval through automated underwriting engines utilized by mortgage buyers Fannie Mae, Freddie Mac and the Federal Housing Administration.

“Everybody is used to making better loans at this point,” said Michael Caputo, a mortgage loan officer at Starkey Mortgage. “It’s a vanilla world now. Uniform standards make it easier for consumers to make an educated choice.”

Potential borrowers have shown an eagerness to make wiser choices as well. Whereas the first question a homebuyer posed prior to the bust was “How much can I get approved for?” the question today is “How much can I afford?” according to Caputo.

Today’s buyer is more financially aware than ever, acknowledges local Realtor Vicki Linscott with Keller Williams Coastal Area Partners.

“They are not taking the lender’s word for anything any more on what they think they can do,” Linscott said. “They know what they want to do, not what they can do. Nobody is going out there and buying more house than they can afford.”

Loopholes and pitfalls

The CFPB’s rules could result in several negative unintended consequences, insiders acknowledge.

Including the Fannie Mae, Freddie Mac and FHA test as an ability-to-repay standard is potentially troublesome. The three groups are all controlled by the federal government, and consumers turned down for mortgages could apply pressure on their elected officials to push for a relaxing of the Fannie/Freddie/FHA guidelines.

The limits on balloon loans, meanwhile, could have a significant impact on community banks. Few small banks will carry long-term fixed-rate mortgages in their portfolio, selling them instead to Fannie, Freddie, private investors, etc. But some customers prefer the bank hold their loan.

The bank’s answer, in most cases, is to issue a short-term balloon mortgage that is renewed at the end of the term at the current interest rate. This practice insulates the banks against long-term interest rate changes.

“And it’s not like banks are taking advantage of these customers with some sky-high rate,” Georgia Southern’s Sibbald said. “There is already a limit on how high above the prime rate community banks can charge on a short-term mortgage.”

The CFPB has promised exceptions for the community banks, “but we haven’t seen that yet,” Sibbald said.

Savannah’s Green takes state Chamber’s gavel

The Georgia Chamber of Commerce introduced Stephen S. Green as its 2013 board chair at the Chamber’s winter meeting Tuesday in Atlanta.

Green, a Savannah businessman who serves as president and CEO of Morris Manning Martin & Green Consulting LLP, succeeds Edward S. Heys Jr. of Deloitte.

Georgia Chamber President and CEO Chris Clark said Green’s commitment to statewide business growth and economic development will be an invaluable asset to Georgia businesses.

Green said the Chamber has enjoyed tremendous successes over the last few years but plenty of work remains to be done.

“We have an exciting year ahead of us,” Green said, “and we are looking forward to doing all we can to ensure this state continues to be a great place for business.”

Green’s professional career has included successful roles in distribution, real estate development and banking.

Kroger raises more than $18,500 for food bank

ATLANTA — Kroger customers and employees, during a six-week campaign, raised more than $18,500 to benefit America’s Second Harvest of Coastal Georgia Food Bank.

From Nov. 18 through Dec. 24, Kroger customers could buy $1, $3 and $5 icons to benefit Feeding America food banks and help local families.

“Each year the support from our customers across the Atlanta Division is overwhelming,” said Kroger spokesman Glynn Jenkins. “And it is with their help that we are able to continue to ‘Can Hunger’ in the communities we serve.”

The company’s Atlanta Division raised more than $478,000 throughout its 213 stores across Georgia, South Carolina, Eastern Tennessee and Northern Alabama. Kroger has 11 stores in the Savannah area.

GnomeCon slated for downtown Savannah

GnomeCon, a three-day convention created by Savannah area board gamers, will be held April 19-21 at the Coastal Gerogia Center, 305 Fahm St.

This is the second year for the locally organized event. Last year’s convention drew more than 350 people and helped raise more than $1,200 for Live Oak Public Libraries.

Registration is $35. In addition to the three-day membership, pre-registrants can receive a Gnomecon T-shirt and a set of six-sided dice for an extra $15.

Several panels and events are scheduled in addition to table-top, miniature, collectible card and role playing games. New this year will be an art show, where registered attendees can buy or sell original artwork. For more information on the art show, email artshow@gnomecon.org.

For more information overall, go to gnomecon.org or email publicity@gnomecon.org.

My older sister and I are very close. We text, email or talk almost daily and know almost everything about each other. She was instrumental in raising me and continues to teach me lessons in life. She is a great friend and generally among my strongest supporters.

My sister has always preached appreciation. Appreciation for what we have. Appreciation for where we live. Appreciation for our jobs. Appreciation for our friends. And above all, appreciation for family.

She is forever sentimental. She reminisces about childhood, days gone by, Jerry Garcia, the Chicago Cubs and movies.

And so, in this my last Savannah Morning News column, I will take a cue from my sister and outline a few things that I will miss from this great city.

I will miss the way they call your name at Vinnie Van Go Go’s. I will miss the international college students obliviously riding their bikes without helmets, dangerously, through the historic district. The act of scanning the scene when walking into the Sentient Bean. The fans above the bar at the America Legion on Bull Street. The sandwiches from Brighter Day.

I will fondly remember the downtown battle between the powerful tourist lobby and residents who long to enjoy their neighborhood. The unspoken battle between Savannah and Charleston. The back river on Tybee. David Paddison’s constant advice giving disguised as Confucian phraseology.

Prayer before City Council meetings. The online comments at savannahnow.com. The beautiful women behind the desk at the Bull Street public library.

Alex Raskin shuffling in and out of his store. The sweat of summer. The music emanating from African-American churches on Sunday mornings. The sweet smell of paper mills on a wet day. The free ferry ride to Hutchinson Island.

Bradley Lock and Key. Playing softball in the adult recreational league. Savannah’s battle with progress, waged at times against, and at others times, in tandem with, Chatham County and the Metropolitan Planning Council.

Those palm frond sculptures that are pawned off on tourists for a few bucks. The Girl Scouts. Thirteen million tourists.

I will miss men watching football games in their garage. I will miss Salt Life stickers. I will miss red Ford trucks. I will miss that John Barrow commercial where he pumps his shotgun.

I will miss voting, where finding one’s polling place is always a mystery. I will miss seeing Bill Dawers everywhere and Jane Fishman’s guerilla gardens. I will miss the excitement of the film festival. I will miss high school football and basketball games. I will miss marching bands.

I will miss when Coca-Cola is pronounced CoCola. I will miss the way Tom Kohler pulls the hair on his arm when he talks to you.

I’ll miss these things and so much more.

To say I will miss you, Savannah, is an understatement. To say that I completely understand you, Savannah, is just plain wrong.

Until we meet again, please refrain from moving too fast. Please contain the urge to turn your urban core into a Disney world. Please don’t govern yourself into a place that 20-somethings wouldn’t want to call home. And don’t forget, Savannah, you are who you are because of where you have been.

Progress brought us to this point; where will progress take us?

Jake Hodesh is the executive director of The Creative Coast, a not-for-profit organization that promotes the creative and entrepreneurial community within the region, but he’s leaving for a position in Cincinnati. Until he leaves, Jake can be reached at 912-447-8457 or jake@thecreativecoast.org.

NEW YORK — Why wait on Washington to fix the economy when there’s Wal-Mart?

Wal-Mart Stores Inc., the world’s largest retailer and the biggest private employer in the U.S. with 1.4 million workers here, said Tuesday that it is rolling out a three-part plan to help jumpstart the sluggish U.S. economy.

The plan includes hiring more than 100,000 veterans in the next five years, spending $50 billion to buy more American-made merchandise in the next 10 years and helping its part-time workers move into full-time positions sooner.

The move comes as Wal-Mart attempts to bolster its reputation, which has been hit in the past year by an alleged bribery scandal in Mexico and a deadly fire at a Bangladesh factory that supplies clothes to the company. Wal-Mart, which often is criticized for its low-paying jobs and buying habits in the U.S., said it’s plan aims to highlight career opportunities in the retail industry, which supports one in four jobs in the country. The company’s plan could have an impact on the U.S. economy: With $444 billion in annual revenue, if Wal-Mart were a country, it would rank among the largest economies in the world.

“We’ve developed a national paralysis that’s driven by all of us waiting for someone else to do something,” Bill Simon, president and CEO of Wal-Mart’s U.S. business, said Tuesday at an annual retail industry convention in New York. “The beauty of the private sector is that we don’t have to win an election, convince Congress or pass a bill to do what we think is right. We can simply move forward, doing what we know is right.”

At the center of Wal-Mart’s plan is a pledge to hire veterans, many of who have come home from Afghanistan and Iraq and had a particularly hard time finding jobs. The unemployment rate for veterans who served in Iraq or Afghanistan stood at 10.8 percent in December, compared with the overall unemployment rate of 7.8 percent.

Wal-Mart said it plans to hire every veteran who wants a job and has been honorably discharged in the first 12 months of active duty. The program, which will start on Memorial Day, will include jobs mostly in Wal-Mart’s stores or in its Sam’s Club locations. Some will be at its headquarters, based in Bentonville, Ark., or the company’s distribution centers.

Dave Tovar, a Wal-Mart spokesman, said Wal-Mart hasn’t worked out the details but it will “match up the veterans’ experience and qualifications.” Simon, who served in the Navy, said that veterans have “a record of performance under pressure.”

“They’re quick learners, and they’re team players. These are leaders with discipline, training, and a passion for service. There is a seriousness and sense of purpose that the military instills, and we need it today more than ever,” he said.

Wal-Mart said First Lady Michelle Obama, who spearheaded a White House drive to encourage businesses to hire veterans, has expressed an interest through her team in working with Wal-Mart and with the rest of the business community on this initiative.

In the next several weeks, Simon said the White House will meet with the Department of Veterans Affairs, the Department of Defense and major U.S. employers to encourage businesses to make commitments to train and employ American’s returning veterans. The first lady on Tuesday called Wal-Mart’s announcement “historic.”

“We all believe that no one who serves our country should have to fight for a job once they return home,” she said in a statement. “Wal-Mart is setting a groundbreaking example for the private sector to follow.”

In addition to hiring veterans, Wal-Mart said that it will spend $50 billion to buy more products made in the U.S. over the next 10 years. According to data from Wal-Mart’s suppliers, items that are made, sourced or grown in the U.S. account for about two-thirds of the company’s spending on products for its U.S. business.

Wal-Mart said that it plans to focus on buying more in areas such as sporting goods, fashion basics, storage products, games and paper products. The commitment comes as economics are changing for making goods overseas. Labor costs are rising in Asia, while oil and transportation costs are high and increasingly uncertain.

Simon, Wal-Mart’s CEO, said that a few of the company’s manufacturers have told Wal-Mart that they have defined the “tipping points” at which manufacturing abroad will no longer make sense for them. Simon cited one supplier called 1888 Mills, which made most of its towels overseas, but had an underutilized factory in Griffin, Georgia.

Wal-Mart said it worked with the supplier on a couple of innovations and now the U.S. factory is hiring again. The towels made in the U.S. will be in 600 of its stores this spring, and another 600 stores in by the fall. The towels’ label will say “Made Here.”

The final piece of Wal-Mart’s plan is to help part-time Wal-Mart workers transition into full-time employment if they so desire. Simon said that about 75 percent of its store management start as hourly associates, and their average pay is $50,000 to $170,000 a year.

“There are some fundamental misunderstandings out there about retail jobs, and we need to do better at explaining the opportunities we offer,” he said.

Bernard Williams Insurance, 6001 Chatham Center Drive, on Monday celebrated its 75th year of working with CNA, the country’s seventh largest commercial insurance writer and the 13th largest property and casualty company.

“The insurance industry is about building relationships, and CNA is proud to have this long-standing partnership with Bernard Williams,” said Rob Huber, CNA’s senior vice president of Field Operations. “We thank you for your ongoing commitment to provide quality services to the families and businesses in this area and wish you continued growth and friendship in the future.”

CNA began working with Bernard Williams in December 1937.

For more information call 912-234-4476 or go to www.thepoweroftheshield.com.

ATLANTA — Gov. Nathan Deal announced Wednesday he will offer legislation to beef up the state’s review of mental-health records for gun permit applicants.

He also predicted passage for a bill that would allow trained administrators to have guns in schools.

His comments came in response to reporters’ questions following remarks to the Georgia Chamber of Commerce’s annual Eggs and Issues breakfast. Other state leaders also spoke, but only Deal faced the media.

“Most of what we will probably see will come out of Washington, either through the executive orders that the president is talking about now or federal legislation,” he said. “There is one area I do believe we need to tighten up, and that is the checking of mental-health records for permitting purposes.”

He said much of any new gun-control measures were in the realm of federal government, and President Barrack Obama was scheduled to unveil his proposal later in the day.

But the governor acknowledged one idea in response to the Connecticut shooting that he agreed with, a bill to allow administrators who undergo the same weapons training as law-enforcement officers to carry guns in schools.

Of the bills already introduced in Georgia’s legislature as of the third day of the current 40-day session, he predicted the only one to succeed is from Rep. Paul Battles, R-Cartersville, that would authorize local school boards to arm principals if they choose.

“That one does have some merit,” said Deal, in what is as close as he ever gets to endorsing anyone else’s proposals. “If someone is going to be in an environment around children, they certainly need to be trained. I think it’s one that may receive favorable consideration by the General Assembly”

Other pending bills would impose greater restrictions on the owning of firearms or remove them entirely.

In his formal remarks, the governor defending shifting the taxing of hospital revenue from lawmakers to a board of his appointees. Conservatives have said renewal of the hospital tax that funds the state’s share of Medicaid amounts to a violation of a pledge many Republican legislators made never to raise taxes.

Deal said give taxing power to the Community Health Board is no more of a political cop-out than doing the same thing with a nursing home tax for Medicaid in 2003.

“It seems to me we could streamline the process by consolidating the functions of both the nursing homes and hospitals in the authority of the board that has responsibility for oversight of these two bulwarks of our healthcare system,” he said.

A Senate committee approved the shift Tuesday, and the full Senate will vote Thursday, the day Deal presents his full budget plan for the next fiscal year.

First Citizens Bank held a formal ribbon-cutting ceremony Tuesday morning to celebrate the opening of its new Savannah branch in the Cay Building at 110 W. St. Julian St.

The branch opened for business on Dec. 10 after completing a move from its former location at 13 E. York St.

“We are excited to be open for business in our new branch and have been overwhelmed with the support we’ve received from the Savannah community throughout this process,” said Reeves Skeen, Savannah market executive for First Citizens. “We look forward to serving customers from this convenient Savannah location for years to come.”

In addition to Skeen, First Citizens Georgia Division Executive Drew Putt also attended the even.

First Citizens has more than 190 offices in South Carolina and Georgia.

The sale of the Georgia Power headquarters site on East River Street closed late Tuesday.

Hotelier North Point Hospitality plans to develop the four-plus-acre site as a hotel/retail complex. The development will include two hotels, a parking garage and several retail and restaurant spaces. The project received the first of several necessary approvals from the Savannah Historic District Board of Review last week.

The sale price on the property was not disclosed.

The sale is the second in three weeks for Georgia Power. The utility sold the Plant Riverside power station site on River Street’s west end on New Year’s Eve. The buyer, a group that includes Savannah native and boutique hotel developer Richard Kessler, has yet to detail its redevelopment plans for the site.

The sale of the two properties ends Georgia Power’s century-long presence on River Street. The utility’s predecessor, Savannah Electric and Power Co., opened Plant Riverside in 1913.

“With this sale, our transition off River Street is complete,” said Cathy Hill, Georgia Power Coastal Region vice president. “We look forward to a new chapter in their history and the economic vitality and growth predicted from these developments.”

ON THE WEB

Developers faced a deadline in getting East River Street deal done. Adam Van Brimmer shares details of the backstory on the Daddy Warbucks blog at savannahnow.com/exchange.

For the first time in 18 years, a Savannahian has taken the helm of the Georgia Chamber of Commerce and that “Savannah awareness” was apparent in remarks he made Wednesday as the chamber outlined its 2013 legislative priorities at the annual Eggs & Issues Breakfast in Atlanta.

“The Port of Savannah expansion will be the biggest economic development opportunity of our generation,” said Stephen S. Green, the state chamber’s 2013 board chair.

“To take advantage of the job growth it will bring, we need to be sure that Georgia is ready to offer companies the most pro-business climate possible.”

Among the Chamber’s priorities for this year:

• Lessen regulations and improve incentives that facilitate expansions, capital investment, new recruitment, small business creation and hospitality growth.

• Expand access to venture and seed capital by offering incentives to attract venture capital firms to Georgia.

• Enact workers’ compensation system reforms that promote a balanced and equitable system that is fair to the employee and employer and designed to return the employee to work as soon as medically appropriate.

• Preserve Georgia’s employment-at-will doctrine and strengthen the state’s right-to-work status.

• Support a health care financing program through which providers can continue to care for patients without compromising the current delivery system.

• Protect the “Transportation Investment Act” to ensure the benefits of the law as passed are not diluted.

•·Encourage school improvement through a more flexible, accountable and transparent system tied to a new school rating system.

• Pursue a new school student-based budgeting funding system that would tie the majority of the state’s educational spending directly to student need.

• Pursue funding sources for continuation of Regional Water Councils and their work to implement regional water plans.

“We feel strongly that by working with lawmakers to concentrate on these legislative priorities, we will put Georgia in an even better position to compete both domestically and globally, create jobs, attract investment and strengthen our overall business climate,” Green said.

Chris Clark agreed.

“Georgia enjoyed one of the most business-friendly sessions in history last year, but in today’s global marketplace you need to constantly evolve and improve in order to stay competitive,” said Clark, Georgia Chamber president and CEO.

“To ensure that Georgia stays on the right path to economic prosperity, we need to give companies already here in Georgia every resource possible to grow and at the same time create an environment that will attract new business and investment. We look forward to working with Gov. Deal and the General Assembly this session to get these important issues addressed.”

Green, who serves as president and CEO of Morris Manning Martin & Green Consulting LLP, is the first state chamber chair from Savannah since Arnold Tenenbaum served in 1995.

His professional career has included successful roles in distribution, real estate development and banking.

“The Georgia Chamber has enjoyed tremendous successes over the last few years — thanks in large part to a great leadership team and the continued support of our investors,” Green said Wednesday.

“There is still plenty of work for us to do to get Georgia further down the road to recovery. We have an exciting year ahead of us, and we are looking forward to doing all we can to ensure this state continues to be a great place for business.”

Savannah’s long-term growth prospects are among the best in the nation, thanks to the city’s dual personality as both a major tourist attraction and deep-water port, the University of Georgia’s Robert Sumichrast told 650 business people gathered Thursday at the Westin Savannah Harbor.

The dean of UGA’s Terry College of Business also had good news for the state as a whole, a departure from his last several annual forecasts.

“Georgia’s economy is forecast to grow by a modest 2.1 percent in 2013; however, that is higher than the 1.8 percent growth forecast for the nation as a whole,” Sumichrast said, speaking at the Savannah Area Chamber of Commerce’s annual Economic Outlook Luncheon.

The expectation of an economically healthier Georgia is due to a number of factors, he said, including the end of the housing bubble, which dealt the state an especially harsh blow, as well as a number of large projects bringing jobs and investment in 2012.

“And Georgia has become even more competitive with the establishment of a $100 million deal-closing fund,” he added.

That said, Sumichrast cautioned that uncertainty at the federal level may leave many businesses without the confidence to expand or relocate this year.

“These growth projections are based on several key assumptions,” he said, including raising the debt ceiling, preventing sequestration and the Fed keeping interest rates low and inflation under control.

“If Congress doesn’t increase the debt ceiling, we could be back in a deep recession,” he said. “If sequestration is not replaced with reasonable spending cuts and tax increases, that could shave a half percentage point off the state’s GDP.”

Oil prices, too, could play a role.

“If oil prices should climb above $140 a barrel, that could also trigger a recession,” he said, adding that it’s unlikely to happen barring a major geopolitical crisis.

Manufacturing boom

Savannah economist Michael Toma generally agreed with Sumichrast’s report, adding manufacturing growth into the mix of industries fueling the area’s comeback.

“Savannah’s Metropolitan Statistical Area is well-diversified, with a variety of pistons in its economic engine,” he told the sold-out audience.

Savannah’s MSA includes Chatham, Bryan and Effingham counties.

“The manufacturing sector was a source of growth in 2012,” said Toma, who heads the Center for Regional Analysis at Armstrong Atlantic State University and presents a quarterly Economic Monitor detailing the current and projected economic health of the region.

“Recent years’ announcements of facility expansions totaling more than $1 billion in capital investment and nearly 4,000 jobs are beginning to be realized in employment data.

“Approximately 1,000 manufacturing jobs have been added since mid-2010, with additional manufacturing growth expected this year.”

Although growth at Georgia Ports Authority slowed last year, the facility will still end 2012 handling more cargo than ever before for the third straight year, Toma said.

“Improvements in transportation linkages, technology, new service, strategic marketing and — most significant — the green light to deepen the Savannah Harbor will play a role in maintaining GPA’s position as a premier East Coast hub for containerized cargo,” he said.

The city’s healthy tourism industry grew steadily in 2012 and helped the regional economy down the road to economic recovery, Toma said.

Data available through late 2012 indicate gains of approximately 7 percent over the previous year, with activity expected to increase again in 2013.

The region’s health care sector increased employment by 3.8 percent last year, adding some 4,500 workers since 2005, Toma’s numbers show.

“Above-average growth in employment is expected to continue in 2013,” he said.

The region is home to 27,300 military personnel stationed at Fort Stewart and Hunter Army Airfield. The military facilities also provide jobs for more than 4,700 federal civilian employees. That number, while growing substantially in recent years, dropped slightly in 2012 as federal defense budget cutbacks took effect. Together, the payroll for military and civilian workers was $1.53 billion last year.

Finally, residential real estate development began to show promising signs of recovery in 2012, with home sales up 11 percent year-over-year through November and building permit issuance up 15 percent in the first three quarters, Toma said.

“In all, 2012 was a decent year,” Toma said. “But the momentum taking us into 2013 is promising.

“I think what we’re seeing is a return to a more reasonable rate of growth as opposed to the unsustainable growth we experienced in the mid-2000s.”

SAVANNAH’S PROJECTIONS FOR 2013

Employment growth - l.5 percent

Unemployment rate – 7.5 percent

Personal income growth – 3.5 percent

Population growth – 2 percent

Georgia jobless rate up in December

ATLANTA — Georgia’s seasonally adjusted unemployment rate increased to 8.6 percent in December, up one-tenth of a percentage point from 8.5 percent in November. The rate was 9.4 percent in December a year ago, the Georgia Department of Labor announced Thursday

“We had a modest increase in new layoffs, along with a small job loss driven primarily by seasonal layoffs in education,” said State Labor Commissioner Mark Butler. “Basically, the December numbers are flat, but even so, this is the best November to December job market report since 2007.”

While the number of jobs decreased by 400 to 3,985,800 in December, it rose by 70,200, or 1.8 percent, from 3,915,600 in December 2011. Most of the over-the-year job growth came in professional and business services, 26,000; trade, transportation, and warehousing, 17,300; education and health care, 12,700; leisure and hospitality, 12,100; and manufacturing 11,800.

Behind the Veil wedding boutique salon scheduled

The fourth annual Behind the Veil boutique bridal salon will showcase Savannah wedding professionals on March 3.

The event, presented by Savannah Weddings, the Telfair Museums and the editors of Savannah magazine, will feature expert wedding planners, caterers, florists, photographers, venues and others.

Behind the Veil will be held from 12:30-4:30 p.m. at the Telfair Academy, 121 Barnard St., and from 1-5 p.m. at the Jepson Center for the Arts, 207 W. York St. A bridal fashion show will hit the runway at 4:30 p.m. in the Jepson Center.

Tickets are $15 in advance, $20 at the door or $40 for a VIP champagne brunch that will feature Elizabeth Demos, a stylist, event planner and author of Vintage Wedding Style, at 11 a.m. March 3 at an off-site location. Tickets can be purchased at Savannahmagazine.com.

For information about showcasing your services, contact Jane Townsend at 912-652-0294 or jane.townsend@savannahmagazine.com.

Nominations for historic preservation awards due

Historic Savannah Foundation is accepting nominations for the 2013 HSF Preservation Awards for excellence in historic preservation.

The deadline is Feb. 15; winners will be announced May 9.

The preservation awards recognize projects or individual achievements falling within the areas of restoration, rehabilitation, new construction, stewardship, craftsmanship and archaeology. Projects must have been completed within three years and may include projects nominated but not selected. Nominations are open only to Historic Savannah Foundation members. Self-nominations are acceptable.

A jury of local professionals will select the winners.

The nomination form and details on eligibility, submission criteria and key dates can be accessed at http://www.myhsf.org/advocacy-education/programs/awards/.

For more information, contact Danielle Meunier at 912-233-7787 or dmeunier@myHSF.org.

Robert Sumichrast typically sticks to what he mines from charts and graphs in forecasting Georgia’s economic outlook.

The outgoing dean of the University of Georgia’s Terry College of Business, however, dropped a nugget of a more philosophical nature on Savannah’s business leaders during Thursday’s Economic Outlook Luncheon at the Westin Savannah Harbor Resort.

The state must improve academically to improve economically, Sumichrast said.

“Georgia has implemented many positive economic development changes,” said Sumichrast, who recently accepted a job to head up Virginia Tech’s business school after six years with the University of Georgia. “The state’s biggest competitive challenge, however, is in the quality of our K-12 education.”

Workforce readiness has been a priority locally since the wane of the recession. The Savannah-Chatham County Public School System has revamped its approach, establishing specialty schools geared toward career paths and expanding its technical and vocational programs.

And local industries, like Gulfstream, have become heavily involved in STEM (an acronym for science, technology, engineering and mathematics) programs.

Those steps should prove “helpful” to Savannah’s economy in the future, acknowledged local economist Michael Toma, who also spoke at the event.

Sumichrast encouraged business leaders to continue to push for improvement. Only 65 percent of Georgia high school freshmen will graduate within four years, Sumichrast pointed out, compared to 75 percent nationally and 85 percent in European Union countries.

Such disappointing numbers do not escape the notice of companies considering Georgia as a relocation destination. A poor reputation in terms of education is particularly costly to the state in attracting “high-paying, highly-technical” businesses.

“It is time to change the culture of the state,” Sumichrast said. “We need to increase the value we place on academics.”

WASHINGTON — U.S. builders started work on homes in December at the fastest pace in 4 ½ years and finished 2012 as their best year for residential construction since the early stages of the housing crisis.

The Commerce Department said Thursday that builders broke ground on houses and apartments last month at a seasonally adjusted annual rate of 954,000. That’s 12.1 percent higher than November’s annual rate. And it is nearly double the recession low reached in April 2009.

Construction increased last month for both single-family homes and apartments. And the pace in which builders requested permits to start more homes ticked up to a 4 ½ year high.

For the year, builders started work on 780,000 homes. That’s still roughly half of the annual number of starts consistent with healthier markets. But it is an increase of 28.1 percent from 2011. And it is the most since 2008 — shortly after the housing market began to collapse in late 2006 and 2007.

Steady hiring, record-low mortgage rates and a tight supply of new and previously occupied homes available for sale have helped boost sales and prices in most markets. That has persuaded builders to start more homes, which adds to economic growth and hiring.

The positive housing report, along with a steep decline in unemployment benefit applications, contributed to a strong day on Wall Street. The Standard & Poor’s 500 gained eight points to close at 1,480, a five-year high. The Dow Jones industrial average ended the day up 84 points at 13,596. The Nasdaq composite rose 18 points to 3,136.

“There is no denying that the housing market recovery is solidifying, and we expect construction activity to ramp up to the 1 million annualized threshold by the end of this year,” said Michael Dolega, an economist with TD Economics, in a note to clients.

Dolega said the gains in home building helped boost construction hiring in December by 30,000 jobs — the most in 15 months. He predicts the construction industry could add half a million jobs in 2013.

In December, the pace of single-family home construction, which makes up two-thirds of the market, increased 8 percent. While that’s well below healthy levels, single-family housing starts are now 75 percent higher than the recession low reached in March 2009.

Apartment construction, which is more volatile, surged 23 percent last month. It is now back to pre-recession levels.

Applications for building permits, a sign of future construction, inched up to a rate of 903,000 — the highest level since July 2008.

“The strong rise in single-family starts is a clear indication of builder confidence in the sales outlook,” said Pierre Ellis, an economist at Decision Economics, in a note to clients.

Confidence among homebuilders held steady in January at the highest level in nearly seven years. But builders are feeling slightly less optimistic about their prospects for sales over the next six months, according to a survey released Wednesday.

In November, sales of previously occupied homes rose to their highest level in three years, while new-home sales reached a 2 1/2-year high.

Those factors have helped make homebuilders more confident and spurred new home construction. But homebuilders’ are still warily watching the current standoff in Washington between President Barack Obama and Congress over several approaching budget deadlines, including the need to boost the nation’s $16.4 trillion borrowing limit.

Though new homes represent less than 20 percent of the housing sales market, they have an outsize impact on the economy. Each home built creates an average of three jobs for a year and generates about $90,000 in tax revenue, according to data from the homebuilders association.

Contract negotiations continued this week between the International Longshoremen’s Association and the United States Maritime Alliance — or USMX — in an attempt to forge a new, six-year contract before the extension ends Feb. 6.

According to Joseph Bonney, senior editor of the Journal of Commerce, a 20-member ILA committee and a group representing USMX were scheduled to meet in Galloway, N.J., as they try to work out a deal to avert a strike at major container ports on the East and Gulf Coasts.

No details were available on the substance of the negotiations, which are being overseen by the Federal Mediation and Conciliation Service.

On Thursday, FMCS director George H. Cohen issued the following statement:

“The United States Maritime Alliance and the International Longshoremen’s Association conducted negotiations during the three-day period January 15-17. In these negotiations the parties made progress and have agreed that the negotiations will continue under our auspices.

“Due to the sensitivity of these negotiations, we will have no further comment at this time.”

Headquartered in Washington, D.C., the Federal Mediation and Conciliation Service is an independent U.S. government agency whose mission is to preserve and promote labor-management peace and cooperation

The two sides agreed to a short-term contract extension last month after tentatively agreeing on container royalties, a key issue in the coast-wide master contract. That extension — the second since negotiations began in March — was designed to provide time to work out the remaining issues, including those with local contracts.

The largest and most contentious local contract is between the ILA and the New York Shipping Association, which is seeking changes to work rules and practices in the Port of New York and New Jersey.

In advance of this week’s meetings, the ILA signaled that it intended to remain at the bargaining table longer than it did last week when the union walked out shortly after the start of a scheduled two-day session on New York-New Jersey local issues, Bonney reported.

Both sides have said approval of a coast-wide contract is contingent upon settlement of supplemental local agreements.

Senior business reporter Mary Carr Mayle covers the ports for the Savannah Morning News. She can be reached at 912-652-0324 or at mary.mayle@savannahnow.com.

LOGISTICS SNAPSHOT

Following are the latest encouraging statistics from Page Siplon, executive director of the Georgia Center of Innovation for Logistics, located in Savannah:

• During the past year, container volume on U.S. railroads represented 87 percent of total intermodal volume, up from 69 percent in 2000 and every Class 1 U.S. railroad recorded increases in intermodal for the year.

• At the end of 2012, about 32 million square feet of warehouse construction was in progress nationwide. Georgia leads all states in this category with 3.4 MSF of new construction underway; nearly twice as much as the 1.8 MSF being constructed in Tennessee, which is No. 2 in the country.

• The U.S. GDP increased 3.1 percent in the third quarter of 2012 according to the final estimate released by the Bureau of Economic Analysis.

• In November, building permits — an indicator of future housing starts — rose 3.6 percent to an annual rate of 899,000.

SHIPPING SCHEDULE

These are the ships expected to call on Georgia Ports Authority’s Garden City and Ocean Terminals in the next week. Sailing schedules are provided by Georgia Ports Authority and are subject to change.

Terminal Ship name Arrival

GCT KAAN KALKAVAN Today

GCT AL ABDALI Today

OT GRANDE GUINEA Today

GCT MELINA Saturday

GCT PUSAN Saturday

GCT ITAL LIBERA Saturday

GCT BUSAN EXPRESS Saturday

GCT CMA CGM TANCREDI Saturday

GCT YORKTOWN EXPRESS Saturday

GCT MSC ALESSIA Saturday

GCT UASC SHUAIBA Saturday

OT BANSUI Saturday

GCT APL ATLANTA Sunday

GCT APL SPINEL Sunday

GCT HOECHST EXPRESS Sunday

GCT HANJIN CHITTAGONG Monday

GCT NYK DAEDALUS Monday

GCT MADRID EXPRESS Monday

GCT E.R. DENVER Monday

GCT MSC NERISSA Monday

GCT FOLEGANDROS Monday

GCT MSC KYOTO Monday

OT SAUDI DIRIYAH Monday

GCT MSC CHICAGO Tuesday

GCT MOL ENDURANCE Tuesday

GCT HANJIN NAGOYA Tuesday

GCT MAERSK MERLION Tuesday

GCT JAMES RIVER BRIDGE Tuesday

OT ANJELIERSGRACHT Tuesday

OT TITANIA Tuesday

OT TARAGO Tuesday

GCT YM SINGAPORE Wednesday

GCT HYUNDAI GOODWILL Wednesday

GCT HALIFAX EXPRESS Wednesday

GCT ZIM LUANDA Wednesday

GCT DALLAS EXPRESS Wednesday

GCT SEA-LAND RACER Wednesday

GCT FOUMA Wednesday

OT BBC NILE Wednesday

GCT SINGAPORE STAR Thursday

GCT ZIM MEDITERRANEAN Thursday

GCT ISLANDIA Thursday

GCT OOCL OAKLAND Thursday

GCT MAERSK DAVENPORT Thursday

GCT MSC TOKYO Thursday

STATESBORO — Goodwill of the Coastal Empire held a ribbon-cutting ceremony Thursday for its new community Job Connection career center and retail location in Statesboro.

The Job Connection career center is next to the store in the shopping plaza at 812 Hwy. 80.

Job Connection offers a number of free resources and services to employers and job seekers, including applicant screening to match qualified applicants to employer databases for interview.

Goodwill also can provide office space for interviewing, training and job fairs.

“We talk to employers and match their needs to our services,” said Brenda Pollen, interim vice president of Mission Services for Goodwill. “Our role is to tailor our programs to fit employers’ needs.”

Goodwill job centers in the Coastal Empire trained and placed more than 1,400 workers in 2012.

In addition to connecting people with jobs, the Statesboro Job Connection will also be part of Goodwill’s Buena Vida Initiative, an initiative created to expand employment services, family strengthening and financial education to the growing Hispanic/Latino population in Georgia.

The Buena Vida initiative offers adult education and GED classes in Spanish and English in addition to (ESL) classes, ESL and SSL (English and Spanish as a second Language), and Work Literacy classes.

“We know education is the key to lifting people out of poverty,” Pollen said. “The goal is to help them see their world in a different way and see what they can become. Goodwill can help them meet their needs and goals.”

For more information, go to www.goodwillsavannah.org.

Banking’s household names are raking in profits again, but the cash piles could soon start shrinking.

Improvement in the real estate market has resulted in fewer failed and delinquent loans, boosting the bottom line for large banks. Loan demand slowed late last year, though, and did not keep pace with deposit growth as customers carried higher deposit balances with the fiscal cliff crisis looming.

The result was a decline in interest margins, or the amount of interest banks collect on loans minus the amount they pay out on deposits, that troubles analysts.

The four big banks that do business in Savannah — national players Wells Fargo and Bank of America and regional behemoths SunTrust and BB&T — all reported decreasing net interest margin in 2012’s fourth quarter, which ended Dec. 31.

Wells Fargo, Savannah’s biggest banking player in terms of local deposits, reported record earnings but also acknowledged a 13.7 percent drop in its mortgage business. Deposits growth more than doubled loan growth. With lending and credit lines accounting for half of Wells Fargo’s business and the Federal Reserve’s pledge to hold down interest rates until the unemployment rate drops significantly, analysts pressed the bank’s CEO, John Stumpf, during an earnings conference call last week.

“Why would we turn away deposits from our customers?” Stumpf said. “Sure, we look at the margin, surely we think about that, but we don’t run our business according to it.”

Such an approach toward deposits runs contrary to the tack taken by many community banks. Many smaller banks worked to shrink their deposits during the recession and the early stage of the recovery, typically by lowering interest rates on certificates of deposit and other interest-bearing accounts. Doing so allowed those banks to maintain their interest margins even as loans soured and loan demand dried up.

The big banks, meanwhile, saw the recession and early stages of the recovery as a chance to expand their footprint, as well as their presence within existing markets. Locally, Wells Fargo, SunTrust and BB&T have all seen significant deposit growth over the last three years. Only Bank of America has seen deposits fall.

Interest margin worries extend beyond the big banks that do business locally. Chase Bank CEO James Dimon noted interest margin issues with his bank in a conference call this week but predicted the pressures will eventually debate as the fiscal pressures ease.

Complicating the interest margin situation for the banks going forward is the difference between the rates on existing loans and new loans, said Ed Sibbald, director of Georgia Southern University’s Center for Excellence in Financial Services.

“The loans they had at 6 or 7 or 8 percent are running off, and they are replacing them with new loans that are a couple of percentage points lower,” Sibbald said. “That’s going to cause pressure on margins.”

The regional banks are faring better than the megabanks. SunTrust managed its deposits in 2010, added $2.8 billion while increasing its loan portfolio by $2.1 billion. Still, all of SunTrust’s year-over-year earnings growth came from non-interest income. BB&T also minimized the impact of lower interest markets, growing loans by $7.3 billion compared to $9.8 billion in deposits.

SKINNY ON THE BIG BANKS

National megabanks Wells Fargo and Bank of America and regional behemoths SunTrust and BB&T hold more than 57 percent of deposits in the Savannah area. A look at those banks’ 2012 performance:

Bank|Profit|Noteworthy

Wells Fargo|$18.9B|Lending increased late in year as borrowers took advantage of expiring tax rates.

Bank of America|$4.2B|Incurred $5.9 billion in expenses tied to foreclosure abuse claims, not including the $11 billion settlement reached with regulators last week.

BB&T|$1.9B|Credit quality improved, with repossessed properties hitting lowest level in five years and net charge-offs, or delinquent loans deemed uncollectable, hitting four-year lows.

SunTrust|$356M|Increased profitability by five times versus year previous; got big boost from expense cuts tied to reduced employee compensation and benefits and a shrinking workforce.

* Savannah’s other large publicly traded banks, including Synovus, the parent company of Sea Island Bank, and Regions Bank, will report earnings next week. South Carolina Bank & Trust, which owns The Savannah Bank and Bryan Bank & Trust, reports Jan. 31.