Weiss Rates Arkansas Financial Institutions

According to Weiss Ratings Inc. of Jupiter, Fla., First National Bank of Fort Smith was the fourth strongest bank or thrift in the state for calendar 2004 with an A, or excellent rating. First National is a sister bank to Bank of Rogers and Citizens Bank & Trust in Van Buren.

Delta Trust & Bank of Parkdale, which has two offices in Northwest Arkansas, was the second weakest bank in the state with a rating of D, or weak.

First Arkansas Bank and Trust of Jacksonville was the strongest statewide with an A plus rating, and Farmers Bank of Hamburg was the weakest bank in the state with an E plus rating, or the equivalent of very weak.

Weiss Ratings is an independent analysis company that rates financial services firms, mutual funds and stocks. Its safety ratings are based on an analysis of risk-adjusted capital, historical profitability, quality of investments, liquidity and stability.

Weiss Ratings also said the nations banks and thrifts experienced a slowdown in 2004, reporting 1.8 percent average national earnings growth compared to 20.4 percent in 2003 and 14.6 percent in 2002.

The company said the nations banks are financially sound, but margins will continue to be squeezed as interest rates rise.