Bank of England Leads Arkansas in Return on Equity

by George Waldon  on Monday, Apr. 1, 2013 12:00 am  

Which lenders headquartered in Arkansas produced the biggest bang for their investors during 2012?

Bank of England led the way as measured by return on average equity. 

BOE recorded a 31.3 percent ROE in 2012, powered by a net gain of $60.3 million from the sale of loans. The $270 million-asset lender reported a profit of $8.5 million for the year.

The gain from loan sales for the year more than doubled BOE’s 2011 total of $28.5 million.

Helping generate those loans is Eng Lending, a pipeline of 59 loan production offices the $270 million-asset bank operates in 26 states.

Those offices also boost the staff count at Bank of England to 615.

That’s more than double the size of the staff at First Financial Bank of El Dorado.

That $821.5 million-asset lender tallied a staff of 262 and net income of $27.2 million.

Bigger in asset size but with less overhead, First Financial produced a profit three times as large as Bank of England and an ROE of 22.8 percent, second highest among Arkansas lenders during 2012.

The head count differential between the two lenders is reflected in how much money was spent on salaries and benefits last year: 

  • Bank of England, more than $43.3 million.
  • First Financial, more than $17.3 million.

The associated increase in manpower helped the Bank of England more than double its 2011 profit of $4.1 million.

“We’ll probably grow 50 percent this year in terms of loan volume,” said Brad Canada, president of Eng Lending. “We’ll have 80 offices in 40 states by the end of the year.”

 

 

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