Return on Equity: Top 14 Performers Dot Arkansas

Return on Equity: Top 14 Performers Dot Arkansas

Fourteen lenders based in Arkansas produced returns on equity (ROE) that topped 13 percent during 2014. The banks were scattered across the state and represented some of the largest and smallest financial institutions.

The 14 ranged in size from Little Rock’s $6.7 billion-asset Bank of the Ozarks to the $57.9 million-asset River-side Bank of Sparkman (Dallas County).

Bank of the Ozarks recorded net income of more than $125 million during 2014 and generated an ROE of 15.23 percent (No. 9 among Arkansas lenders). Riverside turned a $1.7 million profit for the year and produced an ROE of 20.69 percent (No. 2).

Only four Arkansas banks ended in the red with ROEs during 2014 compared with six a year ago:

• Allied Bank of Mulberry (Crawford County), -11.09 percent.

The $111.5 million-asset lender reported a $1 million loss for 2014, its fourth consecutive annual loss. The bank, which remains under regulatory supervision, could be heading toward an ownership change. Leading creditors of its parent company, Acme Holding Co., are advocating the conversion of Acme’s Chapter 11 bankruptcy reorganization to Chapter 7 liquidation.

• Capital Bank of Little Rock, -7.73 percent.

During the third quarter, the bank added $2.4 million to its loan loss reserves and charged off more than $1.7 million related to commercial lending. The $155.3 million-asset lender recorded a $1 million loss for the year, compared with net income of $82,000 in 2013 and $737,000 in 2012.

• Little River Bank of Lepanto (Poinsett County), -1.35 percent.

The $38.1 million-asset lender reported a $55,000 loss in 2014, the fifth annual loss since 2008.

• Forrest City Bank, -0.52 percent.

The $25,000 loss for 2014 marked the sixth consecutive annual loss for the $55 million-asset lender. Forrest City Bank was poised to sell to Cross County Bancshares Inc. of Wynne in a $2.7 million deal last year. That was derailed by regulatory concerns regarding Cross County’s small stake in the parent company of Pinnacle Bank of Rogers.

 2014 Top Returns on Equity ROE Net Income
(in millions)
First Federal Bank, Harrison 33.56 $21.9
Riverside Bank, Sparkman 20.69 $1.7
Ozark Heritage Bank, Mountain View 16.39 $1.6
Farmers Bank & Trust, Blytheville 16.26 $9.0
First Security Bank, Searcy 16.19 $100.4
First Financial Bank, El Dorado 15.91 $22.9
First State Bank, De Queen 15.63 $3.5
Heartland Bank, Little Rock 15.48 $7.4
Bank of the Ozarks, Little Rock 15.24 $125.1
Bank of England, England 14.37 $4.9
Cornerstone Bank, Eureka Springs 14.07 $3.4
Citizens Bank & Trust, Van Buren 13.52 $5.7
Commercial Bank & Trust, Monticello 13.48 $2.8
Union Bank, Mena 13.41 $4.3

Source: Bauer Financial Inc. of Coral Gables, Florida