by Paul Gatling
Posted 12/21/2012 02:51 pm
Updated 12 months ago
In the third quarter of 2012, Arkansas banks earned a return on their average assets of 1.13 percent, ranking No. 2 among the seven states in the U.S. Federal Reserve Bank’s Eighth District.
That figure represents a negligible increase of 0.02 percent in the state’s collective ROA from the third quarter of 2011. Banks generally consider their annual ROA percentage a leading indicator of their health and performance. ROA, as defined by the Federal Deposit Insurance Corp., is “net income after taxes and extraordinary items [annualized] as a percent of average assets.”
Arkansas is the only state wholly in the Eighth District. The other six states are partially in the Eighth and partially in another.
Tennessee, which ranks No. 7 with an ROA of 0.25 percent, is the only state in the district to show a decrease from the third quarter of 2011. Collectively, banks in the Eighth District had an ROA of 0.92 percent, up slightly from 0.82 percent in the same quarter last year.
For the same quarter, Chambers Bank of Danville had a 0.17 percent ROA; Pinnacle Bank of Bentonville had a 0.11 percent ROA; Fayetteville-based Signature Bank of Arkansas had a -1.27 percent ROA; and Decatur State Bank had a -3.53 percent ROA.
In return on average equity, Arkansas banks are collectively at 9.89 percent for the third quarter of 2012. That figure ranks fourth among the Eighth District, and reflects a drop of 0.1 percent from the third quarter of 2011.
ROE, as defined by the FDIC, is “annualized net income as a percent of average equity on a consolidated basis.”
Collectively, banks in the Eighth District had an ROE of 8.44 percent, up from 7.72 percent in last year’s third quarter. The U.S. ROE average was 8.86 percent.
For the same quarter, Benefit Bank of Fort Smith had a 4.26 percent ROE; Legacy National Bank of Springdale had a 3.61 percent ROE; Farmers Bank of Greenwood had a 2.73 percent ROE; and The First National Bank of Fort Smith had an 8.55 percent ROE.